# JPMorgan Chase & Co.: 10-K Risk Factor Changes 2026 vs 2025 > Source: U.S. Securities and Exchange Commission (EDGAR) > Generated: 2026-05-05 > All data extracted directly from official filings. No hallucinated content. > **[AI-Generated Summary]** The paragraph below was produced by a language > model and may contain errors. All other content on this page is deterministically > extracted from the original SEC filing. > JPMorgan Chase significantly expanded its risk disclosures to spotlight threats that didn't rank as prominently before: government policies affecting specific industries, technology disruptions like AI, employee misconduct, conflicts of interest, and vendor oversight. This shift reflects the bank's growing anxiety about regulatory pressure, tech-driven competition, and reputational damage from internal failures - suggesting the firm now sees operational and compliance risks as equally serious threats as traditional credit and market risks. --- ## Summary | Status | Count | |--------|-------| | New risks added | 98 | | Risks removed | 82 | | Risks modified | 331 | | Unchanged | 197 | --- ## New Risk: JPMorganChase's business and operations could be negatively affected by governmental policies that discourage or penalize doing business with certain industries or that require specific business practices. JPMorganChase's businesses and results of operations could be adversely affected by actions or initiatives by governmental authorities or officials that: •seek to discourage financial institutions from doing business with companies engaged in certain industries, or conversely, to penalize financial institutions that elect not to do business with such companies, or •mandate specific business practices for companies operating in the relevant jurisdiction. Governmental policies may differ or conflict across jurisdictions, which could lead to negative consequences for JPMorganChase regardless of the course of action that it takes or elects not to take, including: •prohibitions or restrictions on doing business within a particular jurisdiction, or with governmental entities in a jurisdiction •the threat of enforcement actions, including under antitrust or other anti-competition laws, and •reputational harm. --- ## New Risk: Holders of JPMorgan Chase & Co.'s debt and equity securities will absorb losses if it were to enter into a resolution. Federal Reserve rules require JPMorgan Chase & Co. (the "Parent Company") to maintain minimum levels of unsecured external long-term debt and other loss-absorbing capacity with specific terms ("eligible LTD") to recapitalize JPMorganChase's operating subsidiaries if the Parent Company were to enter into a resolution either in a bankruptcy proceeding under Chapter 11 of the U.S. Bankruptcy Code, or in a receivership administered by the FDIC under Title II of the Dodd-Frank Act ("Title II"). If the Parent Company were to enter into a resolution, holders of eligible LTD, other unsecured creditors and holders of equity securities of the Parent Company will absorb the losses of the Parent Company and its subsidiaries. The preferred "single point of entry" strategy under JPMorganChase's resolution plan contemplates that the Parent Company would enter bankruptcy proceedings and JPMorganChase's material subsidiaries would be recapitalized, as needed, so that they could continue normal operations or subsequently be divested or wound down in an orderly manner. As a result, the Parent Company's losses and any losses incurred by its subsidiaries would be imposed first on holders of the Parent Company's equity securities and thereafter on its unsecured creditors, including holders of eligible LTD. Claims of the Parent Company's shareholders and unsecured creditors would have a junior position to the claims of creditors of JPMorganChase's subsidiaries and to the claims of priority (as determined by statute) and secured creditors of the Parent Company. Accordingly, in a resolution of the Parent Company in bankruptcy, unsecured creditors of the Parent Company, including holders of eligible LTD of the Parent Company, would realize value only to the extent available to the Parent Company as a shareholder of JPMorgan Chase Bank, N.A. and its other subsidiaries, and only after any claims of priority and secured creditors of the Parent Company have been fully repaid. The FDIC has similarly indicated that a single point of entry recapitalization model would be its expected strategy to resolve a systemically important financial institution, such as the Parent Company, under Title II. However, the FDIC has not formally adopted or committed to any specific resolution strategy. If the Parent Company were to approach, or enter into, a resolution, none of the Parent Company, the Federal Reserve or the FDIC is obligated to follow JPMorganChase's preferred resolution strategy, and losses to unsecured creditors of the Parent Company, including holders of eligible LTD, and to holders of equity securities of the Parent Company, under whatever strategy is ultimately followed, could be 13 13 13 13 Part I Part I greater than they might have been under JPMorganChase's preferred strategy.PoliticalJPMorganChase's businesses could be negatively affected by economic uncertainty resulting from political and geopolitical developments.Political developments in the U.S. and other countries could cause uncertainty in the economic environment and market conditions in which JPMorganChase operates. Certain governmental policies or actions could significantly affect U.S. and global economic growth and cause higher volatility in the financial markets, including:•monetary policies and actions taken by central banks, including any sustained large-scale asset purchases, any suspension or reversal of those actions, and changes in interest rate levels•fiscal policies, including with respect to taxation and spending•foreign policies that emphasize national interests•economic or financial sanctions•the implementation of tariffs and other trade policies•requirements to relocate business activities or operations•deployment of the military•changes to immigration policies, or•actions or inactions by a government related to emergencies.These types of political developments, as well as heightened geopolitical tensions, could:•erode investor or consumer confidence in the U.S. economy and financial markets, which could potentially undermine the status of the U.S. dollar as a safe haven currency•provoke retaliatory countermeasures by other countries or otherwise heighten tensions in trade or diplomatic relations•increase the risk of targeted cyber attacks•increase concerns about whether the U.S. government will be funded and will be able to service its outstanding debt•result in periodic shutdowns of the U.S. government•influence investor perceptions concerning government support of certain sectors of the economy or the economy as a whole•influence monetary policy actions of the Federal Reserve to moderate the economic impact of political developments, including decisions on interest rate levels and asset purchases and sales•adversely affect the financial condition or credit ratings of clients and counterparties with which JPMorganChase does business, or•cause JPMorganChase to forgo business opportunities that it might otherwise pursue.These factors could lead to:•slower growth rates, rising inflation or recession•disruptions in labor markets•greater market volatility•a contraction of available credit and the widening of credit spreads•U.S. dollar currency fluctuations•lower investments in a particular country or sector of the economy•large-scale sales of government debt and other debt and equity securities•reduced commercial activity among trading partners or disruptions to supply chains, or•the formation of or changes in political or economic alliances or treaties.These risks could become highly correlated or combine in unexpected ways under certain circumstances, including geopolitically challenging situations in regions such as Russia, the Middle East and China.Any of the foregoing potential outcomes could cause JPMorganChase to:•suffer losses on its market-making positions or in its investment portfolio•reduce its liquidity and capital levels•increase the allowance for credit losses or recognize higher net charge-offs•hamper its ability to deliver products and services to its clients and customers •weaken its results of operations and financial condition or credit ratings, or•become subject to prolonged litigation.MarketAdverse economic and market events and conditions could negatively affect JPMorganChase's results of operations and investment and market-making positions.JPMorganChase's results of operations could be negatively affected by the occurrence or persistence of adverse changes in any of the following:•the U.S. and global economies•investor, consumer and business sentiment, or confidence in the financial markets•inflation, deflation, recession or employment•the availability and cost of capital, liquidity and credit•levels and volatility of interest rates, credit spreads or market prices of currencies, securities and greater than they might have been under JPMorganChase's preferred strategy.PoliticalJPMorganChase's businesses could be negatively affected by economic uncertainty resulting from political and geopolitical developments.Political developments in the U.S. and other countries could cause uncertainty in the economic environment and market conditions in which JPMorganChase operates. Certain governmental policies or actions could significantly affect U.S. and global economic growth and cause higher volatility in the financial markets, including:•monetary policies and actions taken by central banks, including any sustained large-scale asset purchases, any suspension or reversal of those actions, and changes in interest rate levels•fiscal policies, including with respect to taxation and spending•foreign policies that emphasize national interests•economic or financial sanctions•the implementation of tariffs and other trade policies•requirements to relocate business activities or operations•deployment of the military•changes to immigration policies, or•actions or inactions by a government related to emergencies.These types of political developments, as well as heightened geopolitical tensions, could:•erode investor or consumer confidence in the U.S. economy and financial markets, which could potentially undermine the status of the U.S. dollar as a safe haven currency•provoke retaliatory countermeasures by other countries or otherwise heighten tensions in trade or diplomatic relations•increase the risk of targeted cyber attacks•increase concerns about whether the U.S. government will be funded and will be able to service its outstanding debt•result in periodic shutdowns of the U.S. government•influence investor perceptions concerning government support of certain sectors of the economy or the economy as a whole•influence monetary policy actions of the Federal Reserve to moderate the economic impact of political developments, including decisions on interest rate levels and asset purchases and sales•adversely affect the financial condition or credit ratings of clients and counterparties with which JPMorganChase does business, or greater than they might have been under JPMorganChase's preferred strategy. Political --- ## New Risk: JPMorganChase could suffer losses if the value of collateral declines. During periods of market stress or illiquidity, JPMorganChase's credit risk could increase when: •JPMorganChase fails to realize the estimated value of the collateral it holds •collateral is liquidated at prices that are insufficient to recover the full amount owed to it, or 17 17 17 17 Part I Part I •counterparties are unable to post collateral for operational or other reasons.Furthermore, borrowers may under-maintain or misrepresent the condition or existence of collateral, or at liquidation, collateral could be subject to competing claims, limiting JPMorganChase's ability to recover amounts owed, or disputes with counterparties concerning the valuation of collateral could increase during significant market stress, volatility or illiquidity. JPMorganChase could suffer losses in these situations if it is unable to realize the fair value of collateral or to manage declines in the value of collateral.JPMorganChase could incur significant losses arising from concentrations of credit and market risk.JPMorganChase could be exposed to greater credit and market risk if groupings of its clients or counterparties, or obligors on securities and other financial instruments:•engage in similar or related businesses or in related industries•operate in the same geographic region, or•have business profiles that could cause their ability to meet their obligations to be similarly affected by changes in economic conditions.For example, a significant deterioration in the credit quality of a counterparty, borrower or other obligor could lead to concerns about the creditworthiness of other parties in similar, related or dependent industries. This type of interrelationship could exacerbate JPMorganChase's credit, liquidity and market risk exposure, potentially causing losses. In addition, JPMorganChase could be required to increase the allowance for credit losses or establish other reserves with respect to certain clients, industries or country exposures in order to align with regulatory directives or expectations.Similarly, challenging economic conditions that affect a particular industry or geographic area could lead to concerns about the credit quality of counterparties, borrowers or other obligors not only in that industry or geography but also in related or dependent industries, wherever located. These conditions could also heighten concerns about the ability of customers of JPMorganChase's consumer businesses who live in those areas or work in those industries to meet their obligations.JPMorganChase's consumer businesses could also be harmed by an excessive expansion of consumer credit by competitors. Heightened competition for certain types of consumer loans could lead to significant price reductions for those loans or providing loans to less-creditworthy borrowers. If large numbers of consumers subsequently default on their loans, this could impair their ability to repay obligations owed to JPMorganChase and result in an increase in the allowance for credit losses and higher charge-offs. More broadly, widespread defaults on consumer debt could lead to recessionary conditions in the U.S. economy, and JPMorganChase's consumer businesses could earn lower revenues in such an environment.Furthermore, the interconnectivity across credit markets increases the risk that the significant expansion of private credit could worsen losses among non-bank lenders and their borrowers, particularly if stress or defaults spread to broader funding and credit markets. Such developments could impair asset valuations, reduce market-wide liquidity, disrupt borrowers' ability to refinance, and increase default rates, especially if non-bank lenders have weaker underwriting standards, loans are less liquid, or transparency is limited. These outcomes could adversely affect JPMorganChase's results of operations and lead to losses on market-making positions in its wholesale businesses. If JPMorganChase is unable to reduce positions effectively during a market dislocation, this could increase both the market and credit risks associated with those positions and the level of risk-weighted-assets ("RWA") that JPMorganChase holds on its balance sheet. These factors could adversely affect JPMorganChase's capital position, funding costs and the profitability of its businesses.LiquidityJPMorganChase's ability to operate its businesses could be impaired if its liquidity is constrained. JPMorganChase's liquidity could be impacted by factors such as:•market-wide illiquidity or disruption•actions by governmental authorities, including changes in regulatory requirements relating to liquidity or capital•actions taken by the Federal Reserve to reduce its balance sheet, which could reduce deposits held by JPMorganChase and other financial institutions•inability to sell assets, or to sell at favorable times or prices•default by a CCP or other significant market participant•unanticipated outflows of cash or collateral•unexpected loss of deposits, including due to deposit pricing or migration to other investment products•higher than anticipated draws on lending-related commitments, and•lack of market or customer confidence in JPMorganChase or financial institutions in general.A reduction in JPMorganChase's liquidity could be caused by events beyond its control. For example, JPMorganChase's funding costs could increase and its access to traditional sources of liquidity could be •counterparties are unable to post collateral for operational or other reasons.Furthermore, borrowers may under-maintain or misrepresent the condition or existence of collateral, or at liquidation, collateral could be subject to competing claims, limiting JPMorganChase's ability to recover amounts owed, or disputes with counterparties concerning the valuation of collateral could increase during significant market stress, volatility or illiquidity. JPMorganChase could suffer losses in these situations if it is unable to realize the fair value of collateral or to manage declines in the value of collateral.JPMorganChase could incur significant losses arising from concentrations of credit and market risk.JPMorganChase could be exposed to greater credit and market risk if groupings of its clients or counterparties, or obligors on securities and other financial instruments:•engage in similar or related businesses or in related industries•operate in the same geographic region, or•have business profiles that could cause their ability to meet their obligations to be similarly affected by changes in economic conditions.For example, a significant deterioration in the credit quality of a counterparty, borrower or other obligor could lead to concerns about the creditworthiness of other parties in similar, related or dependent industries. This type of interrelationship could exacerbate JPMorganChase's credit, liquidity and market risk exposure, potentially causing losses. In addition, JPMorganChase could be required to increase the allowance for credit losses or establish other reserves with respect to certain clients, industries or country exposures in order to align with regulatory directives or expectations.Similarly, challenging economic conditions that affect a particular industry or geographic area could lead to concerns about the credit quality of counterparties, borrowers or other obligors not only in that industry or geography but also in related or dependent industries, wherever located. These conditions could also heighten concerns about the ability of customers of JPMorganChase's consumer businesses who live in those areas or work in those industries to meet their obligations.JPMorganChase's consumer businesses could also be harmed by an excessive expansion of consumer credit by competitors. Heightened competition for certain types of consumer loans could lead to significant price reductions for those loans or providing loans to less-creditworthy borrowers. If large numbers of consumers subsequently default on their loans, this could impair their ability to repay obligations owed to JPMorganChase and result in an increase in the allowance for credit losses and higher charge-offs. •counterparties are unable to post collateral for operational or other reasons. Furthermore, borrowers may under-maintain or misrepresent the condition or existence of collateral, or at liquidation, collateral could be subject to competing claims, limiting JPMorganChase's ability to recover amounts owed, or disputes with counterparties concerning the valuation of collateral could increase during significant market stress, volatility or illiquidity. JPMorganChase could suffer losses in these situations if it is unable to realize the fair value of collateral or to manage declines in the value of collateral. --- ## New Risk: JPMorganChase's interconnectedness with clients, customers and other external parties could be a source of significant operational risk. JPMorganChase could be exposed to operational risk if it is unable to access and use external operational systems, including during failures or cyber attacks related to those systems or other third-party systems. Similarly, retailers, payment systems and processors, data aggregators, and other external parties with which JPMorganChase's customers do business could increase JPMorganChase's operational risk. This is particularly the case where activities of customers or other parties are beyond JPMorganChase's security and control systems, including through the use of the internet, cloud computing services, and mobile devices or services. JPMorganChase's interconnectivity with clients, customers and other external parties continues to expand, which increases the risk of failure or cyber attacks with respect to the systems of those parties. Any systems failure, security breach, or human error or misconduct that affects clients, customers or external parties could require JPMorganChase to take steps to protect the integrity of its own operational systems or to safeguard confidential information, including restricting the access of its customers to their accounts. These actions could increase JPMorganChase's operational costs and potentially diminish customer satisfaction and confidence in JPMorganChase. Furthermore, the widespread interconnectivity among financial institutions, clearing banks, CCPs, payments processors, financial technology companies, securities exchanges, clearing houses, financial messaging networks and other financial market infrastructures increases the risk that the disruption of an operational system involving one entity could cause industry-wide operational disruptions that could materially affect JPMorganChase's ability to conduct business. In addition, the risks associated with the disruption of an operational system of a third-party could be exacerbated if the services provided by that system are widely used by market participants. --- ## New Risk: Enhanced regulatory and other standards for the oversight of JPMorganChase's vendors and other service providers could result in higher costs and other potential exposures. JPMorganChase must comply with enhanced regulatory and other standards when doing business with vendors and other service providers, including those relating to the outsourcing of functions as well as the performance of significant banking and other functions by subsidiaries. JPMorganChase's failure to appropriately assess and manage these relationships, especially those involving significant banking functions, shared services or other critical activities, could materially and adversely affect JPMorganChase. Specifically, any such failure could result in: •potential harm to clients and customers, and any liability associated with that harm •lower revenues, and the opportunity cost from lost revenues •increased operational costs •the imposition of penalties, or •reputational harm. --- ## New Risk: JPMorganChase could incur losses arising from any significant inadequacy or lapse in its risk management framework and control environment. JPMorganChase's financial condition or results of operations could be materially and adversely affected by any significant inadequacy or lapse in its risk management framework, governance structure, practices, models, reporting systems or controls. Any such inadequacy or lapse could: •lead to inaccurate or delayed identification of risks •hinder the timely escalation of material risk issues to JPMorganChase's senior management and Board of Directors •lead to business decisions that have negative outcomes •harm customers or clients, and cause JPMorganChase to incur associated liabilities •require significant resources and time to remediate •lead to non-compliance with applicable law, or attract heightened regulatory scrutiny •expose JPMorganChase to litigation, investigations by governmental authorities or penalties, or •cause reputational harm. --- ## New Risk: JPMorganChase's operations, results, and competitive standing could be adversely affected by the development of advanced technologies such as AI. The rapid development and deployment of advanced technologies, including generative and agentic AI systems, present a range of risks to JPMorganChase's businesses and operations, including: •AI system failures, inappropriate use of AI systems, lack of transparency in AI systems, or inaccurate or biased output from AI systems resulting from rapid deployment, insufficient testing, erroneous data, ineffective model design or insufficient controls, which could disrupt operations, cause erroneous transactions, compromise data privacy, infringe on intellectual property, harm clients and customers, or impair JPMorganChase's ability to make sound business decisions •increased exposure to cyber attacks, system manipulation, or data loss if AI systems, particularly agentic systems, are not designed and implemented with appropriate safeguards to prevent systems from accessing sensitive data sources or system resources and taking actions •intensified AI-enabled cyber threats, which may allow malicious actors to exploit vulnerabilities, reverse-engineer security patches, and conduct sophisticated social engineering attacks, potentially resulting in unauthorized access to sensitive information and data breaches, especially if JPMorganChase fails to adequately maintain, secure and upgrade its technological infrastructure in response to rapidly evolving technological advances •regulatory and compliance challenges arising from rapidly evolving applicable law, including differences, inconsistencies and conflicts in international standards, which could increase costs, lead to fines and sanctions, and restrict JPMorganChase's use of AI technologies 28 28 28 28 •competitive disadvantage if competitors are able to deploy AI more quickly or effectively, potentially gaining advantages in cost efficiency, client and customer experience, or product innovation, which could result in a loss of market share to competitors, or•replacement or disintermediation of direct customer relationships if AI agents autonomously manage or intermediate financial decisions and product selection or other services for customers.It is also possible that JPMorganChase could miscalibrate its workforce planning and employee training efforts either because of over-reliance on AI or the failure to appropriately adopt AI. Over-reliance on AI could cause JPMorganChase to experience shortages in qualified staff due to reduced hiring or retention of employees, or could hinder the development or enhancement of important skills among its employees, including critical thinking, problem-solving, judgment, creativity and adaptability. On the other hand, any efficiencies or competitive advantages that AI may offer could be squandered if JPMorganChase fails to adopt AI in a timely and judicious manner and to make related adjustments to its workforce.Any of these factors could materially and adversely affect JPMorganChase's business and operations, results of operations, competitive position or reputation.The effects of climate change could adversely affect JPMorganChase's business and operations, both directly and as a result of impacts on its clients and customers.Both physical risks and transition risks associated with climate change could negatively impact JPMorganChase and its clients and customers. Physical risks include the increased frequency or severity of acute weather events and shifting climate patterns, which may lead to lower asset values, increased insurance costs, and business and supply chain disruptions. Transition risks, including evolving regulatory requirements, carbon taxes and the adoption of new technologies to support lower-carbon operations, may increase compliance and operational costs, contribute to commodity price volatility and impact the profitability of clients and customers that are adapting to a low-carbon economy. Any of these impacts could have a negative effect on the financial condition of JPMorganChase, the financial condition or creditworthiness of JPMorganChase's clients and customers, JPMorganChase's exposure to affected companies and markets, or the effectiveness of JPMorganChase's existing business strategy.ConductConduct failure by JPMorganChase employees could trigger litigation and regulatory actions and harm JPMorganChase's reputation.JPMorganChase expects its employees to conduct themselves ethically and in compliance with JPMorganChase's Code of Conduct, as well as with internal policies and applicable laws and regulations. Notwithstanding these expectations, employees of JPMorganChase have in the past engaged and could in the future engage in improper or illegal conduct. These instances of misconduct have resulted and could in the future result in litigation and resolutions of investigations or enforcement actions by governmental authorities involving consent orders, deferred prosecution agreements, non-prosecution agreements and other civil or criminal sanctions and penalties. In addition, employee misconduct could lead to higher operational and compliance costs, harm JPMorganChase's reputation and result in collateral consequences for its business and operations. The foregoing risks could be heightened with respect to newly-acquired businesses if JPMorganChase fails to successfully integrate employees of those businesses or any of those employees engage in misconduct.ReputationDamage to JPMorganChase's reputation could negatively affect its business, results and prospects.Maintaining the trust, affinity and goodwill of clients, customers, employees and investors is critical to JPMorganChase's ability to operate its business successfully. JPMorganChase's reputation could be harmed by its decisions to engage or not engage with a client or in a business activity that lead to negative commercial impacts, and could also be compromised by:•inaccurate or misleading information about JPMorganChase or its clients, including results generated by AI, that is rapidly and broadly disseminated through any form of media, including social networking sites, and•concerns that JPMorganChase has treated certain clients or customers unfairlyEvents or circumstances that damage JPMorganChase's reputation could also negatively affect its business, results of operations and prospects, and could result in:•greater scrutiny from governmental authorities or criticism from politicians, including in the form of investigations by governmental authorities or litigation•unfavorable media coverage or commentary, including through social media campaigns •competitive disadvantage if competitors are able to deploy AI more quickly or effectively, potentially gaining advantages in cost efficiency, client and customer experience, or product innovation, which could result in a loss of market share to competitors, or•replacement or disintermediation of direct customer relationships if AI agents autonomously manage or intermediate financial decisions and product selection or other services for customers.It is also possible that JPMorganChase could miscalibrate its workforce planning and employee training efforts either because of over-reliance on AI or the failure to appropriately adopt AI. Over-reliance on AI could cause JPMorganChase to experience shortages in qualified staff due to reduced hiring or retention of employees, or could hinder the development or enhancement of important skills among its employees, including critical thinking, problem-solving, judgment, creativity and adaptability. On the other hand, any efficiencies or competitive advantages that AI may offer could be squandered if JPMorganChase fails to adopt AI in a timely and judicious manner and to make related adjustments to its workforce.Any of these factors could materially and adversely affect JPMorganChase's business and operations, results of operations, competitive position or reputation.The effects of climate change could adversely affect JPMorganChase's business and operations, both directly and as a result of impacts on its clients and customers.Both physical risks and transition risks associated with climate change could negatively impact JPMorganChase and its clients and customers. Physical risks include the increased frequency or severity of acute weather events and shifting climate patterns, which may lead to lower asset values, increased insurance costs, and business and supply chain disruptions. Transition risks, including evolving regulatory requirements, carbon taxes and the adoption of new technologies to support lower-carbon operations, may increase compliance and operational costs, contribute to commodity price volatility and impact the profitability of clients and customers that are adapting to a low-carbon economy. Any of these impacts could have a negative effect on the financial condition of JPMorganChase, the financial condition or creditworthiness of JPMorganChase's clients and customers, JPMorganChase's exposure to affected companies and markets, or the effectiveness of JPMorganChase's existing business strategy. •competitive disadvantage if competitors are able to deploy AI more quickly or effectively, potentially gaining advantages in cost efficiency, client and customer experience, or product innovation, which could result in a loss of market share to competitors, or •replacement or disintermediation of direct customer relationships if AI agents autonomously manage or intermediate financial decisions and product selection or other services for customers. It is also possible that JPMorganChase could miscalibrate its workforce planning and employee training efforts either because of over-reliance on AI or the failure to appropriately adopt AI. Over-reliance on AI could cause JPMorganChase to experience shortages in qualified staff due to reduced hiring or retention of employees, or could hinder the development or enhancement of important skills among its employees, including critical thinking, problem-solving, judgment, creativity and adaptability. On the other hand, any efficiencies or competitive advantages that AI may offer could be squandered if JPMorganChase fails to adopt AI in a timely and judicious manner and to make related adjustments to its workforce. Any of these factors could materially and adversely affect JPMorganChase's business and operations, results of operations, competitive position or reputation. --- ## New Risk: Conduct failure by JPMorganChase employees could trigger litigation and regulatory actions and harm JPMorganChase's reputation. JPMorganChase expects its employees to conduct themselves ethically and in compliance with JPMorganChase's Code of Conduct, as well as with internal policies and applicable laws and regulations. Notwithstanding these expectations, employees of JPMorganChase have in the past engaged and could in the future engage in improper or illegal conduct. These instances of misconduct have resulted and could in the future result in litigation and resolutions of investigations or enforcement actions by governmental authorities involving consent orders, deferred prosecution agreements, non-prosecution agreements and other civil or criminal sanctions and penalties. In addition, employee misconduct could lead to higher operational and compliance costs, harm JPMorganChase's reputation and result in collateral consequences for its business and operations. The foregoing risks could be heightened with respect to newly-acquired businesses if JPMorganChase fails to successfully integrate employees of those businesses or any of those employees engage in misconduct. Reputation --- ## New Risk: Failure to effectively manage potential conflicts of interest or to satisfy fiduciary obligations could result in litigation and enforcement actions and cause reputational harm. Managing potential conflicts of interest is highly complex for JPMorganChase due to its broad range of business activities which encompass a variety of transactions, obligations and interests with and among clients and customers. JPMorganChase could face litigation, enforcement actions and heightened regulatory scrutiny, and its reputation could be damaged, by the failure or perceived failure to: •adequately address or appropriately disclose actual or potential conflicts of interest, including those that may arise in connection with providing multiple products and services in, or having investments related to, the same transaction •identify and address any conflict of interest that a third-party with which it is does business may have with respect to a transaction involving JPMorganChase •deliver appropriate standards of service and quality, and to treat clients and customers fairly and with the appropriate standard of care •provide fiduciary products or services in accordance with applicable law, or •handle or use confidential information of customers or clients appropriately and in compliance with applicable law. A failure or perceived failure to appropriately address conflicts of interest or fiduciary obligations could result in customer dissatisfaction, litigation and penalties, as well as heightened regulatory scrutiny and enforcement actions, all of which could lead to lost revenue, higher operating costs and reputational harm. Country --- ## New Risk: Iran threat reduction disclosure Pursuant to Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012, which added Section 13(r) to the Securities Exchange Act of 1934, an issuer is required to disclose in its annual or quarterly reports, as applicable, whether it or any of its affiliates knowingly engaged in certain activities, transactions or dealings relating to Iran or with individuals or entities designated pursuant to certain Executive Orders. Disclosure may be required even where the activities, transactions or dealings were conducted in compliance with applicable law. Except as set forth below, as of the date of this report, the Firm is not aware of any other activity, transaction or dealing by any of its affiliates during the calendar year 2025 that requires disclosure under Section 219. As previously disclosed, during the second quarter of 2025, a non-U.S. subsidiary of the Firm processed three payments, each valued at the equivalent of approximately USD 130, for its client, a non-U.S. person, where the Iranian Embassy in London, U.K. was the beneficiary. The Firm did not charge a fee for these transactions. The payments were for the renewal of travel documentation for the client's three minor children and were therefore exempt transactions pursuant to 31 C.F.R. 560.219(d).As previously disclosed, during the third quarter of 2025, the Firm determined that an existing account holder at a non-U.S. subsidiary of the Firm had previously become employed by a subsidiary of an entity which is owned or controlled by the Government of Iran. The account was valued at the equivalent of approximately USD 119,000. The Firm's non-U.S. subsidiary charged fees of the equivalent of approximately USD 850 from the time the account holder became employed by the applicable entity through the third quarter of 2025. The Firm has closed the account.The Firm does not intend to engage in such transactions in the future. Pursuant to Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012, which added Section 13(r) to the Securities Exchange Act of 1934, an issuer is required to disclose in its annual or quarterly reports, as applicable, whether it or any of its affiliates knowingly engaged in certain activities, transactions or dealings relating to Iran or with individuals or entities designated pursuant to certain Executive Orders. Disclosure may be required even where the activities, transactions or dealings were conducted in compliance with applicable law. Except as set forth below, as of the date of this report, the Firm is not aware of any other activity, transaction or dealing by any of its affiliates during the calendar year 2025 that requires disclosure under Section 219. As previously disclosed, during the second quarter of 2025, a non-U.S. subsidiary of the Firm processed three payments, each valued at the equivalent of approximately USD 130, for its client, a non-U.S. person, where the Iranian Embassy in London, U.K. was the beneficiary. The Firm did not charge a fee for these transactions. The payments were for the renewal of travel documentation for the client's three minor children and were therefore exempt transactions pursuant to 31 C.F.R. 560.219(d). Pursuant to Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012, which added Section 13(r) to the Securities Exchange Act of 1934, an issuer is required to disclose in its annual or quarterly reports, as applicable, whether it or any of its affiliates knowingly engaged in certain activities, transactions or dealings relating to Iran or with individuals or entities designated pursuant to certain Executive Orders. Disclosure may be required even where the activities, transactions or dealings were conducted in compliance with applicable law. Except as set forth below, as of the date of this report, the Firm is not aware of any other activity, transaction or dealing by any of its affiliates during the calendar year 2025 that requires disclosure under Section 219. As previously disclosed, during the second quarter of 2025, a non-U.S. subsidiary of the Firm processed three payments, each valued at the equivalent of approximately USD 130, for its client, a non-U.S. person, where the Iranian Embassy in London, U.K. was the beneficiary. The Firm did not charge a fee for these transactions. The payments were for the renewal of travel documentation for the client's three minor children and were therefore exempt transactions pursuant to 31 C.F.R. 560.219(d). As previously disclosed, during the third quarter of 2025, the Firm determined that an existing account holder at a non-U.S. subsidiary of the Firm had previously become employed by a subsidiary of an entity which is owned or controlled by the Government of Iran. The account was valued at the equivalent of approximately USD 119,000. The Firm's non-U.S. subsidiary charged fees of the equivalent of approximately USD 850 from the time the account holder became employed by the applicable entity through the third quarter of 2025. The Firm has closed the account.The Firm does not intend to engage in such transactions in the future. As previously disclosed, during the third quarter of 2025, the Firm determined that an existing account holder at a non-U.S. subsidiary of the Firm had previously become employed by a subsidiary of an entity which is owned or controlled by the Government of Iran. The account was valued at the equivalent of approximately USD 119,000. The Firm's non-U.S. subsidiary charged fees of the equivalent of approximately USD 850 from the time the account holder became employed by the applicable entity through the third quarter of 2025. The Firm has closed the account. The Firm does not intend to engage in such transactions in the future. Item 9C. Disclosure regarding Foreign Jurisdictions that Prevent Inspections. Not applicable. Not applicable. Not applicable. 36 36 36 36 Item 10. Directors, Executive Officers and Corporate Governance. --- ## New Risk: Insider Trading Policy JPMorganChase has adopted an insider trading policy applicable to its directors, officers and employees, as well as to JPMorganChase itself, governing the purchase, sale and other dispositions of the Firm's securities (the "Insider Trading Policy"). The Firm believes that the Insider Trading Policy is reasonably designed to promote compliance with applicable U.S. federal securities laws and the listing standards of the New York Stock Exchange relating to insider trading. The Insider Trading Policy is filed as Exhibit 19 to this 2025 Form 10-K. 37 37 37 37 --- ## New Risk: Table of contents Financial:PageThree-Year Summary of Consolidated Financial Highlights44Five-Year Stock Performance45Management's discussion and analysis:Introduction46Executive Overview47Consolidated Results of Operations51Consolidated Balance Sheets and Cash Flows Analysis55Explanation and Reconciliation of the Firm's Use of Non-GAAP Financial Measures59Business Segment & Corporate Results62Firmwide Risk Management83Strategic Risk Management88Capital Risk Management89Liquidity Risk Management100Reputation Risk Management 108Credit and Investment Risk Management109Credit Portfolio111Consumer Credit Portfolio112Wholesale Credit Portfolio118Allowance for Credit Losses129Investment Portfolio Risk Management132Market Risk Management133Country Risk Management143Climate Risk Management145Operational Risk Management146Critical Accounting Estimates Used by the Firm154Accounting and Reporting Developments158Forward-Looking Statements160Audited financial statements:Management's Report on Internal Control Over Financial Reporting161Report of Independent Registered Public Accounting Firm162Consolidated Financial Statements165Notes to consolidated financial statements:PageNote 1 - Basis of presentation170Note 2 - Fair value measurement174Note 3 - Fair value option196Note 4 - Credit risk concentrations200Note 5 - Derivative instruments202Note 6 - Noninterest revenue and noninterest expense218Note 7 - Interest income and interest expense222Note 8 - Pension and other postretirement employee benefit plans223Note 9 - Employee share-based incentives226Note 10 - Investment securities228Note 11 - Securities financing activities233Note 12 - Loans236Note 13 - Allowance for credit losses258Note 14 - Variable interest entities263Note 15 - Goodwill, mortgage servicing rights, and other intangible assets272Note 16 - Premises and equipment277Note 17 - Deposits277Note 18 - Leases278Note 19 - Accounts payable and other liabilities 280Note 20 - Long-term debt 281Note 21 - Preferred stock283Note 22 - Common stock285Note 23 - Earnings per share286Note 24 - Accumulated other comprehensive income/(loss)287Note 25 - Income taxes288Note 26 - Restricted cash, other restricted assets and intercompany funds transfers292Note 27 - Regulatory capital293Note 28 - Off-balance sheet lending-related financial instruments, guarantees, and other commitments295Note 29 - Pledged assets and collateral301Note 30 - Litigation302Note 31 - International operations305Note 32 - Business segments & Corporate306Note 33 - Parent Company310Note 34 - Business combinations312Supplementary Information:Distribution of assets, liabilities and stockholders' equity; interest rates and interest differentials315Glossary of Terms and Acronyms320 Financial:PageThree-Year Summary of Consolidated Financial Highlights44Five-Year Stock Performance45Management's discussion and analysis:Introduction46Executive Overview47Consolidated Results of Operations51Consolidated Balance Sheets and Cash Flows Analysis55Explanation and Reconciliation of the Firm's Use of Non-GAAP Financial Measures59Business Segment & Corporate Results62Firmwide Risk Management83Strategic Risk Management88Capital Risk Management89Liquidity Risk Management100Reputation Risk Management 108Credit and Investment Risk Management109Credit Portfolio111Consumer Credit Portfolio112Wholesale Credit Portfolio118Allowance for Credit Losses129Investment Portfolio Risk Management132Market Risk Management133Country Risk Management143Climate Risk Management145Operational Risk Management146Critical Accounting Estimates Used by the Firm154Accounting and Reporting Developments158Forward-Looking Statements160Audited financial statements:Management's Report on Internal Control Over Financial Reporting161Report of Independent Registered Public Accounting Firm162Consolidated Financial Statements165 Financial:PageThree-Year Summary of Consolidated Financial Highlights44Five-Year Stock Performance45Management's discussion and analysis:Introduction46Executive Overview47Consolidated Results of Operations51Consolidated Balance Sheets and Cash Flows Analysis55Explanation and Reconciliation of the Firm's Use of Non-GAAP Financial Measures59Business Segment & Corporate Results62Firmwide Risk Management83Strategic Risk Management88Capital Risk Management89Liquidity Risk Management100Reputation Risk Management 108Credit and Investment Risk Management109Credit Portfolio111Consumer Credit Portfolio112Wholesale Credit Portfolio118Allowance for Credit Losses129Investment Portfolio Risk Management132Market Risk Management133Country Risk Management143Climate Risk Management145Operational Risk Management146Critical Accounting Estimates Used by the Firm154Accounting and Reporting Developments158Forward-Looking Statements160Audited financial statements:Management's Report on Internal Control Over Financial Reporting161Report of Independent Registered Public Accounting Firm162Consolidated Financial Statements165 Financial: Three-Year Summary of Consolidated Financial Highlights Five-Year Stock Performance --- ## New Risk: Audited financial statements: Management's Report on Internal Control Over Financial Reporting Report of Independent Registered Public Accounting Firm Consolidated Financial Statements Notes to consolidated financial statements:PageNote 1 - Basis of presentation170Note 2 - Fair value measurement174Note 3 - Fair value option196Note 4 - Credit risk concentrations200Note 5 - Derivative instruments202Note 6 - Noninterest revenue and noninterest expense218Note 7 - Interest income and interest expense222Note 8 - Pension and other postretirement employee benefit plans223Note 9 - Employee share-based incentives226Note 10 - Investment securities228Note 11 - Securities financing activities233Note 12 - Loans236Note 13 - Allowance for credit losses258Note 14 - Variable interest entities263Note 15 - Goodwill, mortgage servicing rights, and other intangible assets272Note 16 - Premises and equipment277Note 17 - Deposits277Note 18 - Leases278Note 19 - Accounts payable and other liabilities 280Note 20 - Long-term debt 281Note 21 - Preferred stock283Note 22 - Common stock285Note 23 - Earnings per share286Note 24 - Accumulated other comprehensive income/(loss)287Note 25 - Income taxes288Note 26 - Restricted cash, other restricted assets and intercompany funds transfers292Note 27 - Regulatory capital293Note 28 - Off-balance sheet lending-related financial instruments, guarantees, and other commitments295Note 29 - Pledged assets and collateral301Note 30 - Litigation302Note 31 - International operations305Note 32 - Business segments & Corporate306Note 33 - Parent Company310Note 34 - Business combinations312Supplementary Information:Distribution of assets, liabilities and stockholders' equity; interest rates and interest differentials315Glossary of Terms and Acronyms320 Notes to consolidated financial statements:PageNote 1 - Basis of presentation170Note 2 - Fair value measurement174Note 3 - Fair value option196Note 4 - Credit risk concentrations200Note 5 - Derivative instruments202Note 6 - Noninterest revenue and noninterest expense218Note 7 - Interest income and interest expense222Note 8 - Pension and other postretirement employee benefit plans223Note 9 - Employee share-based incentives226Note 10 - Investment securities228Note 11 - Securities financing activities233Note 12 - Loans236Note 13 - Allowance for credit losses258Note 14 - Variable interest entities263Note 15 - Goodwill, mortgage servicing rights, and other intangible assets272Note 16 - Premises and equipment277Note 17 - Deposits277Note 18 - Leases278Note 19 - Accounts payable and other liabilities 280Note 20 - Long-term debt 281Note 21 - Preferred stock283Note 22 - Common stock285Note 23 - Earnings per share286Note 24 - Accumulated other comprehensive income/(loss)287Note 25 - Income taxes288Note 26 - Restricted cash, other restricted assets and intercompany funds transfers292Note 27 - Regulatory capital293Note 28 - Off-balance sheet lending-related financial instruments, guarantees, and other commitments295Note 29 - Pledged assets and collateral301Note 30 - Litigation302Note 31 - International operations305Note 32 - Business segments & Corporate306Note 33 - Parent Company310Note 34 - Business combinations312Supplementary Information:Distribution of assets, liabilities and stockholders' equity; interest rates and interest differentials315Glossary of Terms and Acronyms320 --- ## New Risk: Notes to consolidated financial statements: Note 1 - Basis of presentation Note 2 - Fair value measurement Note 3 - Fair value option Note 4 - Credit risk concentrations Note 5 - Derivative instruments Note 6 - Noninterest revenue and noninterest expense Note 7 - Interest income and interest expense Note 8 - Pension and other postretirement employee benefit plans Note 9 - Employee share-based incentives Note 10 - Investment securities Note 11 - Securities financing activities Note 12 - Loans Note 13 - Allowance for credit losses Note 14 - Variable interest entities Note 15 - Goodwill, mortgage servicing rights, and other intangible assets Note 16 - Premises and equipment Note 17 - Deposits Note 18 - Leases Note 19 - Accounts payable and other liabilities Note 20 - Long-term debt Note 21 - Preferred stock Note 22 - Common stock Note 23 - Earnings per share Note 24 - Accumulated other comprehensive income/(loss) Note 25 - Income taxes Note 26 - Restricted cash, other restricted assets and intercompany funds transfers Note 27 - Regulatory capital Note 28 - Off-balance sheet lending-related financial instruments, guarantees, and other commitments Note 29 - Pledged assets and collateral Note 30 - Litigation Note 31 - International operations Note 32 - Business segments & Corporate Note 33 - Parent Company Note 34 - Business combinations --- ## New Risk: Supplementary Information: Distribution of assets, liabilities and stockholders' equity; interest rates and interest differentials Glossary of Terms and Acronyms JPMorgan Chase & Co./2025 Form 10-K43 JPMorgan Chase & Co./2025 Form 10-K43 JPMorgan Chase & Co./2025 Form 10-K43 JPMorgan Chase & Co./2025 Form 10-K 43 Financial Financial --- ## New Risk: Capital ratios - Standardized(a)(b) Total capital NII excluding Markets(c) NIR excluding Markets(c) Markets(d) (a) As of January 1, 2025, the benefit from the CECL capital transition provision had been fully phased out. For the year ended December 31, 2024, the ratios reflected the CECL capital transition provisions. Refer to Note 27 for additional information. (b) As of December 31, 2025, the Advanced risk-based ratios became more binding on the Firm than the Standardized risk-based ratios. Refer to Capital Risk Management on pages 89-99 for additional information. (c) NII and NIR refer to net interest income and noninterest revenue, respectively. (d) 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. Apple Card transaction: On January 7, 2026, JPMorganChase announced that Chase will become the new issuer of Apple Card. The Firm entered into a forward purchase commitment on December 30, 2025 to acquire the Apple credit card portfolio, with an expected closing in approximately 24 months (the "Apple Card transaction").Refer to CCB segment results on pages 65-68, Capital Risk Management on pages 89-99 and Notes 4, 13, 27 and 28 for additional information.Comparisons noted in the sections below are for the full year of 2025 versus the full year of 2024, unless otherwise specified.Firmwide overviewJPMorganChase reported net income of $57.0 billion for 2025, down 2%, earnings per share of $20.02, ROE of 17% and ROTCE of 20%.•Total net revenue was $182.4 billion, up 3%, reflecting: -Net interest income ("NII") of $95.4 billion, up 3%, driven by higher Markets net interest income, higher revolving balances in Card Services, higher wholesale deposit balances, and the impact of investment securities activity. These factors were largely offset by deposit margin compression and the impact of lower rates. NII excluding Markets was $92.6 billion, flat when compared with the prior year. -Noninterest revenue ("NIR") was $87.0 billion, up 2%, reflecting higher Markets noninterest revenue, higher asset management fees in AWM and CCB, higher auto operating lease income, lower net investment securities losses in Treasury and CIO, higher Payments fees, higher investment banking fees, and a $588 million First Republic-related gain recorded in the first quarter of 2025. These increases were predominantly offset by the absence of the $7.9 billion net gain related to Visa shares recorded in the second quarter of 2024, as well as lower card income in the current year.•Noninterest expense was $95.6 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, higher auto lease depreciation, and continued investments in technology and marketing, as well as higher occupancy expense. These factors were partially offset by FDIC special assessment accrual releases of $763 million compared with an increase of $725 million in the prior year, as well as the absence of a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024. Apple Card transaction: On January 7, 2026, JPMorganChase announced that Chase will become the new issuer of Apple Card. The Firm entered into a forward purchase commitment on December 30, 2025 to acquire the Apple credit card portfolio, with an expected closing in approximately 24 months (the "Apple Card transaction"). Refer to CCB segment results on pages 65-68, Capital Risk Management on pages 89-99 and Notes 4, 13, 27 and 28 for additional information. Comparisons noted in the sections below are for the full year of 2025 versus the full year of 2024, unless otherwise specified. --- ## New Risk: 2025 compared with 2024 The effective tax rate decreased driven by: •a $774 million income tax benefit in Corporate recorded in the second quarter of 2025, driven by the resolution of certain tax audits and the impact of tax regulations related to foreign currency translation gains and losses finalized in 2024 and effective for 2025, and •higher tax benefits related to the vesting of employee share-based awards, partially offset by •other changes in the level and mix of income and expenses subject to U.S. federal, state and local taxes, and •lower benefits associated with other tax audits. Refer to Note 25 for additional information. 54JPMorgan Chase & Co./2025 Form 10-K 54JPMorgan Chase & Co./2025 Form 10-K 54JPMorgan Chase & Co./2025 Form 10-K 54 JPMorgan Chase & Co./2025 Form 10-K CONSOLIDATED BALANCE SHEETS AND CASH FLOWS ANALYSIS --- ## New Risk: Total allowance for credit losses (a)Excludes mortgage loans past due and insured by U.S. government agencies, which are primarily 90 or more days past due. These loans have been excluded based upon the government guarantee. At December 31, 2025, 2024 and 2023, mortgage loans 90 or more days past due and insured by U.S. government agencies were $70 million, $84 million and $123 million, respectively. In addition, the Firm's policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance. (b)At December 31, 2025, 2024 and 2023, excluded mortgage loans insured by U.S. government agencies of $102 million, $122 million and $176 million, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee. (c)Includes $2.2 billion related to the Apple Card transaction. JPMorgan Chase & Co./2025 Form 10-K67 JPMorgan Chase & Co./2025 Form 10-K67 JPMorgan Chase & Co./2025 Form 10-K67 JPMorgan Chase & Co./2025 Form 10-K 67 Selected metricsAs of or for the year ended December 31,(in billions, except ratios and where otherwise noted)202520242023Business MetricsCCB Consumer customers (in millions)86.6 84.4 82.1 CCB Small business customers (in millions)7.4 7.0 6.4 Number of branches5,083 4,966 4,897 Active digital customers (in thousands)(a)74,646 70,813 66,983 Active mobile customers (in thousands)(b)61,736 57,821 53,828 Debit and credit card sales volume$1,940.7 $1,805.4 $1,678.6 Total payments transaction volume (in trillions)(c)7.0 6.4 5.9 Banking & Wealth ManagementAverage deposits$1,040.8 $1,049.3 $1,111.7 Deposit margin2.74 %2.66 %2.84 %Business Banking average loans$19.1 $19.5 $19.6 Business Banking origination volume3.2 4.5 4.8 Client investment assets(d)1,269.9 1,087.6 951.1 Number of client advisors 6,049 5,755 5,456 Home LendingMortgage origination volume by channelRetail$33.0 $25.5 $22.4 Correspondent 19.8 15.3 12.7 Total mortgage origination volume(e)$52.8 $40.8 $35.1 Third-party mortgage loans serviced (period-end)$661.9 $648.0 $631.2 MSR carrying value (period-end)9.1 9.1 8.5 Card ServicesSales volume, excluding commercial card$1,354.7 $1,259.3 $1,163.6 Net revenue rate10.08 %10.03 %9.72 %Net yield on average loans10.26 9.73 9.61 New credit card accounts opened (in millions)10.4 10.0 10.0 Cards in force (in millions)(f)116.5 111.7 106.8 AutoLoan and lease origination volume$44.8 $40.3 $41.3 Average auto operating lease assets16.2 11.1 10.9 (a)Users of all web and/or mobile platforms who have logged in within the past 90 days.(b)Users of all mobile platforms who have logged in within the past 90 days.(c)Total payments transaction volume includes debit and credit card sales volume and gross outflows of ACH, ATM, teller, wires, BillPay, PayChase, Zelle, person-to-person and checks. (d)Includes assets invested in managed accounts and J.P. Morgan mutual funds where AWM is the investment manager. Refer to AWM segment results on pages 76-79 for additional information.(e)Firmwide mortgage origination volume was $63.4 billion, $47.4 billion and $41.4 billion for the years ended December 31, 2025, 2024 and 2023, respectively.(f)Represents the total number of open credit cards, inclusive of primary cardholders and authorized users. Selected metricsAs of or for the year ended December 31,(in billions, except ratios and where otherwise noted)202520242023Business MetricsCCB Consumer customers (in millions)86.6 84.4 82.1 CCB Small business customers (in millions)7.4 7.0 6.4 Number of branches5,083 4,966 4,897 Active digital customers (in thousands)(a)74,646 70,813 66,983 Active mobile customers (in thousands)(b)61,736 57,821 53,828 Debit and credit card sales volume$1,940.7 $1,805.4 $1,678.6 Total payments transaction volume (in trillions)(c)7.0 6.4 5.9 Banking & Wealth ManagementAverage deposits$1,040.8 $1,049.3 $1,111.7 Deposit margin2.74 %2.66 %2.84 %Business Banking average loans$19.1 $19.5 $19.6 Business Banking origination volume3.2 4.5 4.8 Client investment assets(d)1,269.9 1,087.6 951.1 Number of client advisors 6,049 5,755 5,456 Home LendingMortgage origination volume by channelRetail$33.0 $25.5 $22.4 Correspondent 19.8 15.3 12.7 Total mortgage origination volume(e)$52.8 $40.8 $35.1 Third-party mortgage loans serviced (period-end)$661.9 $648.0 $631.2 MSR carrying value (period-end)9.1 9.1 8.5 Card ServicesSales volume, excluding commercial card$1,354.7 $1,259.3 $1,163.6 Net revenue rate10.08 %10.03 %9.72 %Net yield on average loans10.26 9.73 9.61 New credit card accounts opened (in millions)10.4 10.0 10.0 Cards in force (in millions)(f)116.5 111.7 106.8 AutoLoan and lease origination volume$44.8 $40.3 $41.3 Average auto operating lease assets16.2 11.1 10.9 (a)Users of all web and/or mobile platforms who have logged in within the past 90 days.(b)Users of all mobile platforms who have logged in within the past 90 days. Selected metricsAs of or for the year ended December 31,(in billions, except ratios and where otherwise noted)202520242023Business MetricsCCB Consumer customers (in millions)86.6 84.4 82.1 CCB Small business customers (in millions)7.4 7.0 6.4 Number of branches5,083 4,966 4,897 Active digital customers (in thousands)(a)74,646 70,813 66,983 Active mobile customers (in thousands)(b)61,736 57,821 53,828 Debit and credit card sales volume$1,940.7 $1,805.4 $1,678.6 Total payments transaction volume (in trillions)(c)7.0 6.4 5.9 Banking & Wealth ManagementAverage deposits$1,040.8 $1,049.3 $1,111.7 Deposit margin2.74 %2.66 %2.84 %Business Banking average loans$19.1 $19.5 $19.6 Business Banking origination volume3.2 4.5 4.8 Client investment assets(d)1,269.9 1,087.6 951.1 Number of client advisors 6,049 5,755 5,456 Home LendingMortgage origination volume by channelRetail$33.0 $25.5 $22.4 Correspondent 19.8 15.3 12.7 Total mortgage origination volume(e)$52.8 $40.8 $35.1 Third-party mortgage loans serviced (period-end)$661.9 $648.0 $631.2 MSR carrying value (period-end)9.1 9.1 8.5 Card ServicesSales volume, excluding commercial card$1,354.7 $1,259.3 $1,163.6 Net revenue rate10.08 %10.03 %9.72 %Net yield on average loans10.26 9.73 9.61 New credit card accounts opened (in millions)10.4 10.0 10.0 Cards in force (in millions)(f)116.5 111.7 106.8 AutoLoan and lease origination volume$44.8 $40.3 $41.3 Average auto operating lease assets16.2 11.1 10.9 CCB Consumer customers (in millions) CCB Small business customers (in millions) Active digital customers (in thousands)(a) Active mobile customers (in thousands)(b) Debit and credit card sales volume Total payments transaction volume (in trillions)(c) Business Banking average loans Business Banking origination volume Client investment assets(d) --- ## New Risk: Banking & Payments loans by client coverage segment (period-end)(b) Global Corporate Banking & Global Investment Banking(c) (e) Commercial & Specialized Industries(d) --- ## New Risk: Total client assets(a) Private Banking(b) Global Funds(b) Private Banking(b) Global Funds(b) --- ## New Risk: Regulatory capital The Federal Reserve establishes capital requirements, including well-capitalized standards, for the Firm as a consolidated financial holding company. The Office of the Comptroller of the Currency ("OCC") establishes similar minimum capital requirements and standards for the Firm's principal IDI subsidiary, JPMorgan Chase Bank, N.A. The U.S. capital requirements generally follow the Capital Accord of the Basel Committee, as amended from time to time. Basel III Overview The capital rules under Basel III establish minimum capital ratios and overall capital adequacy standards for large and internationally active U.S. BHCs and banks, including the Firm and JPMorgan Chase Bank, N.A. The minimum amount of regulatory capital that must be held by BHCs and banks is determined by calculating RWA, which are on-balance sheet assets and off-balance sheet exposures, weighted according to risk. Under the rules currently in effect, two comprehensive approaches are prescribed for calculating Basel III RWA: a standardized approach ("Standardized"), and an advanced approach ("Advanced"). For each of these risk-based capital ratios, the capital adequacy of the Firm is evaluated against the lower of the Standardized or Advanced approaches compared to their respective regulatory capital ratio requirements. The current Basel III rules establish capital requirements for calculating credit risk RWA and market risk RWA, and in the case of Advanced, operational risk RWA. Key differences in the calculation of credit risk RWA between the Standardized and Advanced approaches are that for Advanced, credit risk RWA is based on risk-sensitive approaches which largely rely on the use of internal credit models and parameters, whereas for Standardized, credit risk RWA is generally based on supervisory risk-weightings which vary primarily by counterparty type and asset class. The models used in Advanced are subject to periodic review and calibration, which can impact RWA results. Market risk RWA is generally calculated consistently between Standardized and Advanced. In addition to the RWA calculated under these approaches, the Firm may supplement such amounts to incorporate management judgment and feedback from its regulators. As of December 31, 2025, the Advanced risk-based ratios became more binding on the Firm than the Standardized risk-based ratios, primarily reflecting the increase in Advanced RWA related to the Apple Card transaction and a reduction in the Firm's SCB requirement which only applies to the Standardized risk-based ratios. 90JPMorgan Chase & Co./2025 Form 10-K 90JPMorgan Chase & Co./2025 Form 10-K 90JPMorgan Chase & Co./2025 Form 10-K 90 JPMorgan Chase & Co./2025 Form 10-K Additionally, Basel III requires that Advanced Approaches banking organizations, including the Firm, calculate their SLRs. Refer to page 96 for additional information on SLR.Key Regulatory DevelopmentsEnhanced SLR Final Rule In November 2025, the Federal Reserve, the OCC and the FDIC issued the final rule amending the enhanced Supplementary Leverage Ratio ("eSLR") requirements for Global Systemically Important Banks ("GSIB") BHCs and their IDI subsidiaries by revising the current static leverage buffers at the BHC and IDI levels to 50% of the BHC's U.S. Method 1 GSIB Surcharge, which is referred to as the "eSLR buffer." For IDI subsidiaries, the eSLR buffer is capped at 1%. In addition, the rule made corresponding adjustments to the leverage-based total loss-absorbing capacity ("TLAC") and eligible long-term debt ("eligible LTD") requirements by replacing the former TLAC leverage buffer with the eSLR buffer and replacing the former static leverage-based eligible LTD requirement with a requirement of 2.5% plus the eSLR buffer. Further, the rule removes the eSLR threshold for an IDI subsidiary of a U.S. GSIB to be considered "well capitalized" under the prompt corrective action framework and instead applies the eSLR as a capital buffer requirement. The final rule, with an effective date of April 1, 2026, allows for early adoption, which the Firm has elected, effective January 1, 2026.Refer to page 92 for information on the U.S. Method 1 GSIB Surcharge.Enhanced Transparency and Public Accountability of the Supervisory Stress TestIn October 2025, the Federal Reserve issued proposals to enhance the transparency and public accountability of its annual stress test. The proposals would require the Federal Reserve to publish for public comment comprehensive documentation concerning the supervisory stress test models and annual stress test scenarios, including the scenarios for the upcoming 2026 stress test. The proposals also introduce an enhanced disclosure process under which material changes to stress test models and scenarios would be subject to public comment prior to implementation. Based on the Federal Reserve's analysis, the proposed changes to the stress test models and scenarios are not expected to change materially the SCB for firms, such as JPMorganChase, that are subject to the supervisory stress test. In February 2026, the Federal Reserve released the final 2026 supervisory stress test scenarios, while announcing that SCB requirements for large banks, including the Firm, will remain at current levels through September 30, 2027 with new requirements to be calculated in 2027 based on revised models that incorporate public feedback. SCB Volatility ReductionIn April 2025, the Federal Reserve proposed changes to the calculation of the SCB for large BHCs, including the Firm. The proposal aims to reduce SCB volatility by using the average of supervisory stress results from the previous two annual stress tests to calculate the SCB. The proposal would also modify the annual effective date of the SCB from October 1 to January 1 and make targeted changes to reporting requirements in order to streamline data collection.U.S. Basel III FinalizationIn July 2023, the Federal Reserve, the OCC and the FDIC released a proposal to amend the risk-based capital framework, entitled "Regulatory capital rule: Amendments applicable to large banking organizations and to banking organizations with significant trading activity", which is referred to in this Form 10-K as the "U.S. Basel III proposal." Under this proposal, changes to the framework would include replacement of the Advanced approach with an expanded risk-based approach for the calculation of RWA. In addition, the stress capital buffer requirement would be applicable to both the expanded risk-based approach and the Standardized approach.GSIB Surcharge and TLAC and Eligible LTD RequirementsIn July 2023, the Federal Reserve released a proposal to amend the calculation of the GSIB surcharge. Under the proposal, the annual GSIB surcharge would be based on an average of the quarterly surcharge calculations throughout the calendar year, with daily averaging required for certain measures. The proposal would also reduce surcharge increments from 50 bps to 10 bps and includes other technical amendments to the "Method 2" calculation. The proposed changes would revise risk-based capital requirements for the Firm and other U.S. GSIBs. Refer to Risk-based Capital Regulatory Requirements on page 92 for further information on the GSIB surcharge. Additionally, in August 2023, the Federal Reserve, the FDIC and the OCC released a proposal to expand the eligible long-term debt ("eligible LTD") and clean holding company requirements under the existing total loss-absorbing capacity ("TLAC") rule to apply to non-GSIB banks with $100 billion or more in total consolidated assets. The proposal would also reduce the amount of LTD with remaining maturities of less than two years that count towards a U.S. GSIB's TLAC requirement and expand the existing capital deduction framework for LTD issued by GSIBs to include LTD issued by non-GSIB banks subject to the LTD requirements. Finalization of the above proposals, including the required implementation dates, is uncertain. The Firm continues to monitor developments and potential impacts. Additionally, Basel III requires that Advanced Approaches banking organizations, including the Firm, calculate their SLRs. Refer to page 96 for additional information on SLR.Key Regulatory DevelopmentsEnhanced SLR Final Rule In November 2025, the Federal Reserve, the OCC and the FDIC issued the final rule amending the enhanced Supplementary Leverage Ratio ("eSLR") requirements for Global Systemically Important Banks ("GSIB") BHCs and their IDI subsidiaries by revising the current static leverage buffers at the BHC and IDI levels to 50% of the BHC's U.S. Method 1 GSIB Surcharge, which is referred to as the "eSLR buffer." For IDI subsidiaries, the eSLR buffer is capped at 1%. In addition, the rule made corresponding adjustments to the leverage-based total loss-absorbing capacity ("TLAC") and eligible long-term debt ("eligible LTD") requirements by replacing the former TLAC leverage buffer with the eSLR buffer and replacing the former static leverage-based eligible LTD requirement with a requirement of 2.5% plus the eSLR buffer. Further, the rule removes the eSLR threshold for an IDI subsidiary of a U.S. GSIB to be considered "well capitalized" under the prompt corrective action framework and instead applies the eSLR as a capital buffer requirement. The final rule, with an effective date of April 1, 2026, allows for early adoption, which the Firm has elected, effective January 1, 2026.Refer to page 92 for information on the U.S. Method 1 GSIB Surcharge.Enhanced Transparency and Public Accountability of the Supervisory Stress TestIn October 2025, the Federal Reserve issued proposals to enhance the transparency and public accountability of its annual stress test. The proposals would require the Federal Reserve to publish for public comment comprehensive documentation concerning the supervisory stress test models and annual stress test scenarios, including the scenarios for the upcoming 2026 stress test. The proposals also introduce an enhanced disclosure process under which material changes to stress test models and scenarios would be subject to public comment prior to implementation. Based on the Federal Reserve's analysis, the proposed changes to the stress test models and scenarios are not expected to change materially the SCB for firms, such as JPMorganChase, that are subject to the supervisory stress test. In February 2026, the Federal Reserve released the final 2026 supervisory stress test scenarios, while announcing that SCB requirements for large banks, including the Firm, will remain at current levels through September 30, 2027 with new requirements to be calculated in 2027 based on revised models that incorporate public feedback. Additionally, Basel III requires that Advanced Approaches banking organizations, including the Firm, calculate their SLRs. Refer to page 96 for additional information on SLR. Key Regulatory Developments --- ## New Risk: Enhanced SLR Final Rule In November 2025, the Federal Reserve, the OCC and the FDIC issued the final rule amending the enhanced Supplementary Leverage Ratio ("eSLR") requirements for Global Systemically Important Banks ("GSIB") BHCs and their IDI subsidiaries by revising the current static leverage buffers at the BHC and IDI levels to 50% of the BHC's U.S. Method 1 GSIB Surcharge, which is referred to as the "eSLR buffer." For IDI subsidiaries, the eSLR buffer is capped at 1%. In addition, the rule made corresponding adjustments to the leverage-based total loss-absorbing capacity ("TLAC") and eligible long-term debt ("eligible LTD") requirements by replacing the former TLAC leverage buffer with the eSLR buffer and replacing the former static leverage-based eligible LTD requirement with a requirement of 2.5% plus the eSLR buffer. Further, the rule removes the eSLR threshold for an IDI subsidiary of a U.S. GSIB to be considered "well capitalized" under the prompt corrective action framework and instead applies the eSLR as a capital buffer requirement. The final rule, with an effective date of April 1, 2026, allows for early adoption, which the Firm has elected, effective January 1, 2026. Refer to page 92 for information on the U.S. Method 1 GSIB Surcharge. --- ## New Risk: Enhanced Transparency and Public Accountability of the Supervisory Stress Test In October 2025, the Federal Reserve issued proposals to enhance the transparency and public accountability of its annual stress test. The proposals would require the Federal Reserve to publish for public comment comprehensive documentation concerning the supervisory stress test models and annual stress test scenarios, including the scenarios for the upcoming 2026 stress test. The proposals also introduce an enhanced disclosure process under which material changes to stress test models and scenarios would be subject to public comment prior to implementation. Based on the Federal Reserve's analysis, the proposed changes to the stress test models and scenarios are not expected to change materially the SCB for firms, such as JPMorganChase, that are subject to the supervisory stress test. In February 2026, the Federal Reserve released the final 2026 supervisory stress test scenarios, while announcing that SCB requirements for large banks, including the Firm, will remain at current levels through September 30, 2027 with new requirements to be calculated in 2027 based on revised models that incorporate public feedback. SCB Volatility ReductionIn April 2025, the Federal Reserve proposed changes to the calculation of the SCB for large BHCs, including the Firm. The proposal aims to reduce SCB volatility by using the average of supervisory stress results from the previous two annual stress tests to calculate the SCB. The proposal would also modify the annual effective date of the SCB from October 1 to January 1 and make targeted changes to reporting requirements in order to streamline data collection.U.S. Basel III FinalizationIn July 2023, the Federal Reserve, the OCC and the FDIC released a proposal to amend the risk-based capital framework, entitled "Regulatory capital rule: Amendments applicable to large banking organizations and to banking organizations with significant trading activity", which is referred to in this Form 10-K as the "U.S. Basel III proposal." Under this proposal, changes to the framework would include replacement of the Advanced approach with an expanded risk-based approach for the calculation of RWA. In addition, the stress capital buffer requirement would be applicable to both the expanded risk-based approach and the Standardized approach.GSIB Surcharge and TLAC and Eligible LTD RequirementsIn July 2023, the Federal Reserve released a proposal to amend the calculation of the GSIB surcharge. Under the proposal, the annual GSIB surcharge would be based on an average of the quarterly surcharge calculations throughout the calendar year, with daily averaging required for certain measures. The proposal would also reduce surcharge increments from 50 bps to 10 bps and includes other technical amendments to the "Method 2" calculation. The proposed changes would revise risk-based capital requirements for the Firm and other U.S. GSIBs. Refer to Risk-based Capital Regulatory Requirements on page 92 for further information on the GSIB surcharge. Additionally, in August 2023, the Federal Reserve, the FDIC and the OCC released a proposal to expand the eligible long-term debt ("eligible LTD") and clean holding company requirements under the existing total loss-absorbing capacity ("TLAC") rule to apply to non-GSIB banks with $100 billion or more in total consolidated assets. The proposal would also reduce the amount of LTD with remaining maturities of less than two years that count towards a U.S. GSIB's TLAC requirement and expand the existing capital deduction framework for LTD issued by GSIBs to include LTD issued by non-GSIB banks subject to the LTD requirements. Finalization of the above proposals, including the required implementation dates, is uncertain. The Firm continues to monitor developments and potential impacts. --- ## New Risk: SCB Volatility Reduction In April 2025, the Federal Reserve proposed changes to the calculation of the SCB for large BHCs, including the Firm. The proposal aims to reduce SCB volatility by using the average of supervisory stress results from the previous two annual stress tests to calculate the SCB. The proposal would also modify the annual effective date of the SCB from October 1 to January 1 and make targeted changes to reporting requirements in order to streamline data collection. --- ## New Risk: U.S. Basel III Finalization In July 2023, the Federal Reserve, the OCC and the FDIC released a proposal to amend the risk-based capital framework, entitled "Regulatory capital rule: Amendments applicable to large banking organizations and to banking organizations with significant trading activity", which is referred to in this Form 10-K as the "U.S. Basel III proposal." Under this proposal, changes to the framework would include replacement of the Advanced approach with an expanded risk-based approach for the calculation of RWA. In addition, the stress capital buffer requirement would be applicable to both the expanded risk-based approach and the Standardized approach. --- ## New Risk: Standardized/Advanced CET1 capital at December 31, 2025 Standardized/Advanced Tier 1 capital at December 31, 2024 Change in CET1 capital(b) Net redemptions of noncumulative perpetual preferred stock --- ## New Risk: Standardized Total capital at December 31, 2025 Advanced Tier 2 capital at December 31, 2024 Change in long-term debt and other instruments qualifying as Tier 2(c) Change in qualifying allowance for credit losses(b)(d) Other Change in Advanced Tier 2 capital --- ## New Risk: Advanced Total capital at December 31, 2025 (a)Includes foreign currency translation adjustments and the impact of related derivatives. (b)Reflects the final phase out of the CECL benefit as well as deductions for certain deferred tax assets related to tax attribute carryforwards. Refer to Note 27 for additional information on the CECL capital transition. (c)Includes issuance of $4.0 billion of subordinated notes due 2036. Refer to Long-term funding on page 106 and Note 20 for additional information on the Firm's subordinated debt. (d)As of December 31, 2025 and 2024, included an incremental $468 million and $541 million allowance for credit losses, respectively, on certain assets associated with First Republic to which the Standardized approach has been applied, as permitted by the transition provisions in the U.S. capital rules. JPMorgan Chase & Co./2025 Form 10-K95 JPMorgan Chase & Co./2025 Form 10-K95 JPMorgan Chase & Co./2025 Form 10-K95 JPMorgan Chase & Co./2025 Form 10-K 95 --- ## New Risk: Wholesale credit exposure - maturity and ratings profile The following tables present the maturity and internal risk ratings profiles of the wholesale credit portfolio as of December 31, 2025 and 2024. The Firm generally considers internal ratings with qualitative characteristics equivalent to BBB-/Baa3 or higher as investment grade, and takes into consideration collateral and structural support when determining the internal risk rating for each credit facility. Refer to Note 12 for further information on internal risk ratings. Maturity profile(d)Ratings profileDecember 31, 2025(in millions, except ratios)1 year or lessAfter 1 year through 5 yearsAfter 5 yearsTotalInvestment-gradeNoninvestment-gradeTotalTotal % of IGLoans retained$271,648 $330,900 $189,819 $792,367 $541,364 $251,003 $792,367 68 %Derivative receivables57,777 57,777 Less: Liquid securities and other cash collateral held against derivatives(28,891)(28,891)Total derivative receivables, net of collateral7,941 6,836 14,109 28,886 19,721 9,165 28,886 68 Lending-related commitments155,797 412,594 27,563 595,954 383,106 212,848 595,954 64 Subtotal435,386 750,330 231,491 1,417,207 944,191 473,016 1,417,207 67 Loans held-for-sale and loans at fair value(a)51,007 51,007 Receivables from customers 47,336 47,336 Total exposure - net of liquid securities and other cash collateral held against derivatives$1,515,550 $1,515,550 Credit derivatives and credit-related notes used in credit portfolio management activities(b)(c)$(5,356)$(17,424)$(1,118)$(23,898)$(17,831)$(6,067)$(23,898)75 % Maturity profile(d) --- ## New Risk: Wholesale credit exposure - industry exposures The Firm focuses on the management and diversification of its industry exposures, and pays particular attention to industries with actual or potential credit concerns. Exposures that are deemed to be criticized align with the U.S. banking regulators' definition of criticized exposures, which consist of the special mention, substandard and doubtful categories. Total criticized exposure, excluding loans held-for-sale and loans at fair value, was $48.5 billion and $44.7 billion as of December 31, 2025 and 2024, representing approximately 3.4% and 3.5% of total wholesale credit exposure, respectively; of the $48.5 billion, $42.9 billion was performing. The increase in criticized exposure was driven by SPEs, Consumer & Retail, Banks & Finance Companies, Healthcare, and Chemicals & Plastics, primarily resulting from downgrades and new lending-related commitments, partially offset by Real Estate and Industrials, primarily resulting from net portfolio activity and upgrades. The table below summarizes by industry the Firm's exposures as of December 31, 2025 and 2024. The industry of risk category is generally based on the client or counterparty's primary business activity. Refer to Note 4 for additional information on industry concentrations. Wholesale credit exposure - industries(a)Selected metricsNoninvestment-grade30 days or more past due and accruingloansNet charge-offs/(recoveries)Credit derivative and credit-related notes(h)Liquid securities and other cash collateral held against derivativereceivablesAs of or for the year ended December 31, 2025 (in millions)Creditexposure(f)(g)Investment- gradeNoncriticizedCriticized performingCriticized nonperformingReal Estate$224,858 $155,712 $57,478 $9,967 $1,701 $959 $380 $(99)$ - Individuals and Individual Entities(b)167,700 138,142 28,677 460 421 1,012 (15) - - Asset Managers152,848 117,426 35,113 304 5 105 1 (5)(10,626)Consumer & Retail133,945 63,523 62,382 7,425 615 115 234 (311) - Technology, Media & Telecommunications97,816 44,373 42,507 10,135 801 37 281 (1,078) - Industrials80,606 44,078 33,166 3,101 261 470 18 (68) - Banks & Finance Companies75,653 41,904 32,826 903 20 16 8 (574)(657)Healthcare72,218 48,888 19,713 3,059 558 12 191 (67) - Utilities39,005 24,840 12,519 1,254 392 1 63 (203) - Oil & Gas36,497 21,825 14,076 347 249 52 48 (51) - Automotive35,984 19,602 15,397 958 27 109 3 (277) - State & Municipal Govt(c)32,484 31,372 1,100 3 9 30 - (3) - Insurance25,031 17,511 7,352 168 - 6 - (20)(8,310)Chemicals & Plastics23,790 11,251 10,355 2,091 93 2 82 (239) - Transportation20,861 11,450 9,097 285 29 11 (3)(135) - Metals & Mining17,767 7,459 9,883 406 19 22 4 (39)(67)Central Govt15,164 14,666 245 44 209 8 - (1,258)(1,273)Securities Firms7,966 4,372 3,593 - 1 1 - (13)(2,458)Financial Markets Infrastructure5,734 5,306 358 70 - - - - - All other(d)180,171 148,214 29,887 1,953 117 3 303 (19,458)(5,500)Subtotal$1,446,098 $971,914 $425,724 $42,933 $5,527 $2,971 $1,598 $(23,898)$(28,891)Loans held-for-sale and loans at fair value51,007 Receivables from customers47,336 Total(e)$1,544,441 --- ## New Risk: December 31, 2025 (in millions, except ratios) % Drawn(d) Multifamily(a) Other Income Producing Properties(b) --- ## New Risk: Total Real Estate Exposure(c) December 31, 2024 (in millions, except ratios) % Drawn(d) Multifamily(a) Other Income Producing Properties(b) --- ## New Risk: December 31, 2025 (in millions, except ratios) % Drawn(d) Retail(a) Food and Beverage Leisure(b) --- ## New Risk: Total Consumer & Retail(c) December 31, 2024 (in millions, except ratios) % Drawn(d) Retail(a) Food and Beverage Leisure(b) (a)Retail consists of Home Improvement & Specialty Retailers, Discount & Drug Stores, Restaurants, Specialty Apparel, Supermarkets, and Department Stores. (b)Leisure consists of Arts & Culture, Travel Services, Gaming, and Sports & Recreation. As of December 31, 2025, approximately 88% of the noninvestment-grade Leisure portfolio is secured. (c)Consumer & Retail exposure is approximately 57% secured; unsecured exposure is approximately 77% investment-grade. (d)Represents drawn exposure as a percentage of credit exposure. JPMorgan Chase & Co./2025 Form 10-K123 JPMorgan Chase & Co./2025 Form 10-K123 JPMorgan Chase & Co./2025 Form 10-K123 JPMorgan Chase & Co./2025 Form 10-K 123 --- ## New Risk: December 31, 2025 (in billions) JPMorgan Chase & Co./2025 Form 10-K127 JPMorgan Chase & Co./2025 Form 10-K127 JPMorgan Chase & Co./2025 Form 10-K127 JPMorgan Chase & Co./2025 Form 10-K 127 --- ## New Risk: at December 31, 2025 U.S. unemployment rate(a) YoY growth in U.S. real GDP(b) Central case assumptions at December 31, 20242Q254Q252Q26U.S. unemployment rate(a)4.5 %4.3 %4.3 %YoY growth in U.S. real GDP(b)2.0 %1.9 %1.8 % U.S. unemployment rate(a) YoY growth in U.S. real GDP(b) (a)Reflects quarterly average of forecasted U.S. unemployment rate. (b)The year over year growth in U.S. real GDP in the forecast horizon of the central scenario is calculated as the percentage change in U.S. real GDP levels from the prior year. Subsequent changes to this forecast and related estimates will be reflected in the provision for credit losses in future periods. Refer to Consumer Credit Portfolio on pages 112-117, Wholesale Credit Portfolio on pages 118-128 and Note 12 for additional information on the consumer and wholesale credit portfolios. Refer to Critical Accounting Estimates Used by the Firm on pages 154-157 for further information on the allowance for credit losses and related management judgments. JPMorgan Chase & Co./2025 Form 10-K129 JPMorgan Chase & Co./2025 Form 10-K129 JPMorgan Chase & Co./2025 Form 10-K129 JPMorgan Chase & Co./2025 Form 10-K 129 --- ## New Risk: 2025 compared with 2024 Average Total VaR decreased by $7 million for the year ended December 31, 2025 when compared with the prior year driven by decreased exposure to Visa Class C common shares in Corporate VaR and market volatility rolling out of the one-year historical look-back period in the foreign exchange and fixed income risk types. This decrease was predominantly offset by increased risk exposure in the commodities and equities risk types. 136JPMorgan Chase & Co./2025 Form 10-K 136JPMorgan Chase & Co./2025 Form 10-K 136JPMorgan Chase & Co./2025 Form 10-K 136 JPMorgan Chase & Co./2025 Form 10-K The following graph presents daily Risk Management VaR for the four trailing quarters. The movements in the first quarter of 2025 were due to a client-driven equity position that has since matured. --- ## New Risk: Daily Risk Management VaR First Quarter2025Second Quarter2025Third Quarter2025Fourth Quarter2025 JPMorgan Chase & Co./2025 Form 10-K137 JPMorgan Chase & Co./2025 Form 10-K137 JPMorgan Chase & Co./2025 Form 10-K137 JPMorgan Chase & Co./2025 Form 10-K 137 --- ## New Risk: Key risk drivers and risk management process Structural interest rate risk can arise due to a variety of factors, including: •Differences in timing among the maturity or repricing of assets, liabilities and off-balance sheet instruments •Differences in the amounts of assets, liabilities and off-balance sheet instruments that are maturing or repricing at the same time •Differences in the amounts by which short-term and long-term market interest rates change (for example, changes in the slope of the yield curve) •The impact of changes in the maturity of various assets, liabilities or off-balance sheet instruments as interest rates change The Firm manages interest rate exposure related to its assets and liabilities on a consolidated, Firmwide basis. Business units transfer their interest rate risk to Treasury and CIO through funds transfer pricing, which takes into account the elements of interest rate exposure that can be risk-managed in financial markets. These elements include asset and liability balances and contractual rates of interest, contractual principal payment schedules, expected prepayment JPMorgan Chase & Co./2025 Form 10-K139 JPMorgan Chase & Co./2025 Form 10-K139 JPMorgan Chase & Co./2025 Form 10-K139 JPMorgan Chase & Co./2025 Form 10-K 139 --- ## New Risk: Debt and equity(a) Consists of seed capital and related hedges; fund co-investments(b); and certain deferred compensation and related hedges(c) Consists of certain real estate-related fair value option elected loans, privately held equity and other investments held at fair value(b) --- ## New Risk: Sources and measurement The Firm is exposed to country risk through its lending and deposits, investing, and market-making activities, whether cross-border or locally funded. Country exposure includes activity with both government and private-sector entities in a country. Under the Firm's internal country risk management approach, attribution of exposure to an individual country is based on the country where the largest proportion of the assets of the counterparty, issuer, obligor or guarantor are located or where the largest proportion of its revenue is derived, which may be different than the domicile (i.e. legal residence) or country of incorporation. Individual country exposures reflect an aggregation of the Firm's risk to an immediate default, with zero recovery, of the counterparties, issuers, obligors or guarantors attributed to that country. Activities which result in contingent or indirect exposure to a country are not included in the country exposure measure (for example, providing clearing services or secondary exposure to collateral on securities financing receivables).Assumptions are sometimes required in determining the measurement and allocation of country exposure, particularly in the case of certain non-linear or index products, or where the nature of the counterparty, issuer, obligor or guarantor is not suitable for attribution to an individual country. The use of different measurement approaches or assumptions could affect the amount of reported country exposure.Under the Firm's internal country risk measurement framework:•Deposits with banks are measured as the cash balances placed with central banks, commercial banks, and other financial institutions•Lending exposures are measured at the total committed amount (funded and unfunded), net of the allowance for credit losses and eligible cash and marketable securities collateral received•Securities financing exposures are measured at their receivable balance, net of eligible collateral received•Debt and equity securities are measured at the fair value of all positions, including both long and short positions•Counterparty exposure on derivative receivables is measured at the derivative's fair value, net of the fair value of the eligible collateral received•Credit derivatives exposure is measured at the net notional amount of protection purchased or sold for the same underlying reference entity, inclusive of the fair value of the derivative receivable or payable, reflecting the manner in which the Firm manages these exposuresThe Firm's internal country risk reporting differs from the reporting provided under the FFIEC bank regulatory requirements. Individual country exposures reflect an aggregation of the Firm's risk to an immediate default, with zero recovery, of the counterparties, issuers, obligors or guarantors attributed to that country. Activities which result in contingent or indirect exposure to a country are not included in the country exposure measure (for example, providing clearing services or secondary exposure to collateral on securities financing receivables). Assumptions are sometimes required in determining the measurement and allocation of country exposure, particularly in the case of certain non-linear or index products, or where the nature of the counterparty, issuer, obligor or guarantor is not suitable for attribution to an individual country. The use of different measurement approaches or assumptions could affect the amount of reported country exposure. Under the Firm's internal country risk measurement framework: •Deposits with banks are measured as the cash balances placed with central banks, commercial banks, and other financial institutions •Lending exposures are measured at the total committed amount (funded and unfunded), net of the allowance for credit losses and eligible cash and marketable securities collateral received •Securities financing exposures are measured at their receivable balance, net of eligible collateral received •Debt and equity securities are measured at the fair value of all positions, including both long and short positions •Counterparty exposure on derivative receivables is measured at the derivative's fair value, net of the fair value of the eligible collateral received •Credit derivatives exposure is measured at the net notional amount of protection purchased or sold for the same underlying reference entity, inclusive of the fair value of the derivative receivable or payable, reflecting the manner in which the Firm manages these exposures The Firm's internal country risk reporting differs from the reporting provided under the FFIEC bank regulatory requirements. JPMorgan Chase & Co./2025 Form 10-K143 JPMorgan Chase & Co./2025 Form 10-K143 JPMorgan Chase & Co./2025 Form 10-K143 JPMorgan Chase & Co./2025 Form 10-K 143 --- ## New Risk: Governance and oversight The Firm's framework and strategy for identifying, monitoring and managing climate risk is integrated into the Firm's risk governance framework. This framework allows for the escalation of significant climate risk-related issues to LOB Risk Committees. The Board Risk Committee also receives information on significant climate risks and climate-related initiatives, as appropriate. JPMorgan Chase & Co./2025 Form 10-K145 JPMorgan Chase & Co./2025 Form 10-K145 JPMorgan Chase & Co./2025 Form 10-K145 JPMorgan Chase & Co./2025 Form 10-K 145 --- ## New Risk: Subcategories and examples of operational risks Operational risk can manifest itself in various ways. Operational risk subcategories include Compliance risk, Conduct risk, Legal risk, and Estimations and Model risk. Refer to pages 150, 151, 152 and 153, respectively for more information on Compliance, Conduct, Legal, and Estimations and Model risk. Details on other select examples of operational risks such as firmwide resiliency, payment fraud and third-party outsourcing, as well as cybersecurity, are provided below. Firmwide resiliency risk Disruptions of the Firm's business and operations can occur due to forces beyond the Firm's control such as health emergencies, severe weather, natural disasters, the effects of climate change, utility or telecommunications failures, interruption of service from third-party service providers, cyberattacks, civil unrest or terrorism. The Firm's resiliency framework is intended to enable the Firm to prepare for and adapt to changing conditions and withstand and recover from, and address adverse effects on its operations caused by, disruptions that may impact critical business functions and supporting assets, including its staff, technology, data and facilities, as well as those of third-party service providers. The framework includes governance, awareness training, planning and testing of recovery strategies, as well as strategic and tactical initiatives to identify, assess, and manage resiliency risks. The framework operates in accordance with the Firm's overall approach to Operational Risk Management, including alignment with technology, cybersecurity, data, physical security, crisis management, real estate and outsourcing programs. Payment fraud risk Payment fraud risk is the risk of external and internal parties unlawfully obtaining personal monetary benefit through misdirected or otherwise improper payment. The Firm employs various controls for managing payment fraud risk as well as providing employee and client education and awareness trainings. Third-party outsourcing risk The Firm's Third-Party Oversight ("TPO") and Inter-affiliates Oversight ("IAO") frameworks assist the LOBs and Corporate in selecting, documenting, onboarding, monitoring and managing their supplier relationships including services provided by affiliates. The objectives of the TPO framework are to hold suppliers and other third parties to an appropriate standard of operational performance and to mitigate key risks, including data loss and business disruptions. The Corporate Third-Party Oversight group is responsible for Firmwide training, monitoring, reporting and standards with respect to third-party outsourcing risks. JPMorgan Chase & Co./2025 Form 10-K147 JPMorgan Chase & Co./2025 Form 10-K147 JPMorgan Chase & Co./2025 Form 10-K147 JPMorgan Chase & Co./2025 Form 10-K 147 --- ## New Risk: Governance and oversight The Firm's oversight and coordination of conduct risk is managed in the same manner as Compliance risk. Refer to Compliance Risk Management on page 150 for further information. Conduct risk management encompasses various aspects of people management practices throughout the employee life cycle, including recruiting, onboarding, training and development, performance management, promotion and compensation processes. Each LOB, Treasury and CIO, and each designated corporate function completes an assessment of conduct risk periodically, reviews metrics and issues which may involve conduct risk, and provides conduct education as appropriate. JPMorgan Chase & Co./2025 Form 10-K151 JPMorgan Chase & Co./2025 Form 10-K151 JPMorgan Chase & Co./2025 Form 10-K151 JPMorgan Chase & Co./2025 Form 10-K 151 --- ## New Risk: Total assets measured at fair value Level 3 assets at fair value as a percentage of total Firm assets(a) Level 3 assets at fair value as a percentage of total Firm assets at fair value(a) (a)For purposes of the table above, the derivative receivables total reflects the impact of netting adjustments; however, the $8.9 billion of derivative receivables classified as level 3 does not reflect the netting adjustment as such netting is not relevant to a presentation based on the transparency of inputs to the valuation of an asset. The level 3 balances would be reduced if netting were applied, including the netting benefit associated with cash collateral. JPMorgan Chase & Co./2025 Form 10-K155 JPMorgan Chase & Co./2025 Form 10-K155 JPMorgan Chase & Co./2025 Form 10-K155 JPMorgan Chase & Co./2025 Form 10-K 155 --- ## New Risk: Litigation reserves Refer to Note 30 for a description of the significant estimates and judgments associated with establishing litigation reserves. JPMorgan Chase & Co./2025 Form 10-K157 JPMorgan Chase & Co./2025 Form 10-K157 JPMorgan Chase & Co./2025 Form 10-K157 JPMorgan Chase & Co./2025 Form 10-K 157 --- ## New Risk: Effects on financial statements •Requires disclosure of income taxes paid disaggregated by 1) federal, state, and foreign taxes and 2) individual jurisdiction on the basis of a quantitative threshold of equal to or greater than 5 percent of total income taxes paid (net of refunds received). •Requires disclosure of the effective tax rate reconciliation by specific categories, at a minimum, with accompanying qualitative disclosures, and separate disclosure of reconciling items based on quantitative thresholds. •Requires categories within the effective tax rate reconciliation to be further disaggregated if quantitative thresholds are met. •Adopted retrospectively for the Firm's annual Consolidated Financial Statements for the year ended December 31, 2025. •The adoption of this guidance resulted in expanded income tax disclosures, including more detailed information about the Firm's effective tax rate and income tax expense reconciliation by specific categories, as well as disclosure of income taxes paid, disaggregated by jurisdiction. Refer to Note 25 for further information. 158JPMorgan Chase & Co./2025 Form 10-K 158JPMorgan Chase & Co./2025 Form 10-K 158JPMorgan Chase & Co./2025 Form 10-K 158 JPMorgan Chase & Co./2025 Form 10-K FASB Standards Issued but not yet Adopted as of December 31, 2025StandardSummary of guidance Effects on financial statementsIncome Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures: Disaggregation of Income Statement ExpensesIssued November 2024•Requires additional disaggregation of specific types of expenses within the Notes to the Consolidated Financial Statements on an annual and interim basis. •Required effective date: Annual financial statements for the year ending December 31, 2027.(a)•The guidance may be applied on a prospective or retrospective basis.•The Firm is evaluating the potential impact on the Consolidated Financial Statements disclosures, as well as the Firm's planned date of adoption.Derivatives and Hedging and Revenue from Contracts with Customers: Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue ContractIssued September 2025•No longer requires derivative accounting treatment for certain contracts where the underlying variable is solely based on the specific operations or activities of one of the contracting parties. The new guidance also clarifies the applicability of derivative accounting treatment to contracts with both in scope and out of scope terms.•Clarifies the accounting for share-based payments from a customer in exchange for goods or services.•Required effective date: January 1, 2027.(a)•The guidance may be applied on a prospective or modified retrospective basis.•The Firm is evaluating the potential impact on the Consolidated Financial Statements, as well as the Firm's planned date of adoption.Intangibles - Goodwill and Other - Internal-Use Software: Targeted Improvements to the Accounting for Internal-Use SoftwareIssued September 2025•Amends the cost capitalization guidance by removing all references to software development project stages to better align with current software development methods.•Requires software cost capitalization to begin when 1) management has authorized and committed to funding the software project, and 2) it is probable that the software will be completed and used to perform its intended function.•Required effective date: January 1, 2028.(a)•The guidance may be applied on a prospective, modified, or retrospective transition basis.•The Firm is evaluating the potential impact on the Consolidated Financial Statements, as well as the Firm's planned date of adoption.Financial Instruments - Credit Losses: Purchased LoansIssued November 2025•Establishes an additional allowance framework for purchased, seasoned held-for-investment loans, excluding credit cards.•Requires that management's initial estimate of expected credit losses be recognized as an increase to the allowance for credit losses with a corresponding increase to the loan's amortized cost.•Required effective date: January 1, 2027.(a)•The guidance is required to be applied on a prospective basis.•The Firm is evaluating the potential impact on the Consolidated Financial Statements, as well as the Firm's planned date of adoption.Derivatives and Hedging: Hedge Accounting ImprovementsIssued November 2025•Amends the hedge accounting guidance to allow different risks to be pooled in the same portfolio for cash flow hedging, if the hedging instrument is highly effective against each hedged risk in the portfolio.•Provides greater flexibility and expands eligibility for hedge accounting, including hedges of nonfinancial transactions, variable rate borrowings, net investment hedges, and hedges involving the use of written options.•Required effective date: January 1, 2027.(a)•The guidance is required to be applied on a prospective basis.•The Firm is evaluating the potential impact on the Consolidated Financial Statements, as well as the Firm's planned date of adoption. Standard --- ## New Risk: Effects on financial statements Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures: Disaggregation of Income Statement Expenses Issued November 2024 •Requires additional disaggregation of specific types of expenses within the Notes to the Consolidated Financial Statements on an annual and interim basis. •Required effective date: Annual financial statements for the year ending December 31, 2027.(a) •The guidance may be applied on a prospective or retrospective basis. •The Firm is evaluating the potential impact on the Consolidated Financial Statements disclosures, as well as the Firm's planned date of adoption. Derivatives and Hedging and Revenue from Contracts with Customers: Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract Issued September 2025 •No longer requires derivative accounting treatment for certain contracts where the underlying variable is solely based on the specific operations or activities of one of the contracting parties. The new guidance also clarifies the applicability of derivative accounting treatment to contracts with both in scope and out of scope terms. •Clarifies the accounting for share-based payments from a customer in exchange for goods or services. •Required effective date: January 1, 2027.(a) •The guidance may be applied on a prospective or modified retrospective basis. •The Firm is evaluating the potential impact on the Consolidated Financial Statements, as well as the Firm's planned date of adoption. Intangibles - Goodwill and Other - Internal-Use Software: Targeted Improvements to the Accounting for Internal-Use Software Issued September 2025 •Amends the cost capitalization guidance by removing all references to software development project stages to better align with current software development methods. •Requires software cost capitalization to begin when 1) management has authorized and committed to funding the software project, and 2) it is probable that the software will be completed and used to perform its intended function. •Required effective date: January 1, 2028.(a) •The guidance may be applied on a prospective, modified, or retrospective transition basis. •The Firm is evaluating the potential impact on the Consolidated Financial Statements, as well as the Firm's planned date of adoption. Financial Instruments - Credit Losses: Purchased Loans Issued November 2025 •Establishes an additional allowance framework for purchased, seasoned held-for-investment loans, excluding credit cards. •Requires that management's initial estimate of expected credit losses be recognized as an increase to the allowance for credit losses with a corresponding increase to the loan's amortized cost. •Required effective date: January 1, 2027.(a) •The guidance is required to be applied on a prospective basis. •The Firm is evaluating the potential impact on the Consolidated Financial Statements, as well as the Firm's planned date of adoption. Derivatives and Hedging: Hedge Accounting Improvements Issued November 2025 •Amends the hedge accounting guidance to allow different risks to be pooled in the same portfolio for cash flow hedging, if the hedging instrument is highly effective against each hedged risk in the portfolio. •Provides greater flexibility and expands eligibility for hedge accounting, including hedges of nonfinancial transactions, variable rate borrowings, net investment hedges, and hedges involving the use of written options. •Required effective date: January 1, 2027.(a) •The guidance is required to be applied on a prospective basis. •The Firm is evaluating the potential impact on the Consolidated Financial Statements, as well as the Firm's planned date of adoption. (a)Early adoption is permitted. JPMorgan Chase & Co./2025 Form 10-K159 JPMorgan Chase & Co./2025 Form 10-K159 JPMorgan Chase & Co./2025 Form 10-K159 JPMorgan Chase & Co./2025 Form 10-K 159 --- ## New Risk: Total other comprehensive income/(loss), after-tax The Notes to Consolidated Financial Statements are an integral part of these statements. 166JPMorgan Chase & Co./2025 Form 10-K 166JPMorgan Chase & Co./2025 Form 10-K 166JPMorgan Chase & Co./2025 Form 10-K 166 JPMorgan Chase & Co./2025 Form 10-K --- ## New Risk: Offsetting assets and liabilities U.S. GAAP permits entities to present derivative receivables and derivative payables with the same counterparty and the related cash collateral receivables and payables on a net basis on the Consolidated balance sheets when a legally enforceable master netting agreement exists. U.S. GAAP also permits securities sold and purchased under repurchase agreements and securities borrowed or loaned under securities loan agreements to be presented net when specified conditions are met, including the existence of a legally enforceable master netting agreement. The Firm has elected to net such balances where it has determined that the specified conditions are met. The Firm uses master netting agreements to mitigate counterparty credit risk in certain transactions, including derivative contracts, resale, repurchase, securities borrowed and securities loaned agreements. A master netting agreement is a single agreement with a counterparty that permits multiple transactions governed by that agreement to be terminated or accelerated and settled through a single JPMorgan Chase & Co./2025 Form 10-K171 JPMorgan Chase & Co./2025 Form 10-K171 JPMorgan Chase & Co./2025 Form 10-K171 JPMorgan Chase & Co./2025 Form 10-K 171 --- ## New Risk: Fair value hierarchy A three-level fair value hierarchy has been established under U.S. GAAP for disclosure of fair value measurements. The fair value hierarchy is based on the observability of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows. •Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. •Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. •Level 3 - one or more inputs to the valuation methodology are unobservable and significant to the fair value measurement. A financial instrument's categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. JPMorgan Chase & Co./2025 Form 10-K175 JPMorgan Chase & Co./2025 Form 10-K175 JPMorgan Chase & Co./2025 Form 10-K175 JPMorgan Chase & Co./2025 Form 10-K 175 --- ## New Risk: Total trading assets(e) U.S. GSEs and government agencies(a) Non-U.S. government debt securities(b) Other(a) Other assets(e) Debt and equity instruments(d) Equity(b) JPMorgan Chase & Co./2025 Form 10-K179 JPMorgan Chase & Co./2025 Form 10-K179 JPMorgan Chase & Co./2025 Form 10-K179 JPMorgan Chase & Co./2025 Form 10-K 179 --- ## New Risk: Average(i) Residential mortgage-backed securities and loans(b) Commercial mortgage-backed securities and loans(c) Loans(d) Forward equity price(h) Long-term debt, short-term borrowings, and deposits(e) Other level 3 assets and liabilities, net(f) (a)The categories presented in the table have been aggregated based upon the product type, which may differ from their classification on the Consolidated balance sheets. Furthermore, the inputs presented for each valuation technique in the table are, in some cases, not applicable to every instrument valued using the technique as the characteristics of the instruments can differ. (b)Comprises U.S. GSE and government agency securities of $307 million, nonagency securities of $5 million and non-trading loans of $577 million. (c)Comprises nonagency securities of $3 million, trading loans of $94 million and non-trading loans of $1.1 billion. (d)Comprises trading loans of $1.0 billion and non-trading loans of $1.3 billion. (e)Long-term debt, short-term borrowings and deposits include structured notes issued by the Firm that are financial instruments that typically contain embedded derivatives. The estimation of the fair value of structured notes includes the derivative features embedded within the instrument. The significant unobservable inputs are broadly consistent with those presented for derivative receivables. (f)Includes equity securities of $889 million, including $751 million in Other assets, for which quoted prices are not readily available and the fair value is generally based on internal valuation techniques such as EBITDA multiples and comparable analysis. All other level 3 assets and liabilities are insignificant both individually and in aggregate. (g)Price is a significant unobservable input for certain instruments. When quoted market prices are not readily available, reliance is generally placed on price-based internal valuation techniques. The price input is expressed assuming a par value of $100. (h)Forward equity price is expressed as a percentage of the current equity price. (i)Amounts represent weighted averages except for derivative related inputs where arithmetic averages are used. JPMorgan Chase & Co./2025 Form 10-K183 JPMorgan Chase & Co./2025 Form 10-K183 JPMorgan Chase & Co./2025 Form 10-K183 JPMorgan Chase & Co./2025 Form 10-K 183 --- ## New Risk: Changes in level 3 recurring fair value measurements The following tables include a rollforward of the Consolidated balance sheets amounts (including changes in fair value) for financial instruments classified by the Firm within level 3 of the fair value hierarchy for the years ended December 31, 2025, 2024 and 2023. When a determination is made to classify a financial instrument within level 3, the determination is based on the significance of the unobservable inputs to the overall fair value measurement. However, level 3 financial instruments typically include, in addition to the unobservable or level 3 components, observable components (that is, components that are actively quoted and can be validated to external sources); accordingly, the gains and losses in the table below include changes in fair value due in part to observable factors that are part of the valuation methodology. The Firm risk-manages the observable components of level 3 financial instruments using securities and derivative positions that are classified within level 1 or 2 of the fair value hierarchy; as these level 1 and level 2 risk management instruments are not included below, the gains or losses in the following tables do not reflect the effect of the Firm's risk management activities related to such level 3 instruments. JPMorgan Chase & Co./2025 Form 10-K185 JPMorgan Chase & Co./2025 Form 10-K185 JPMorgan Chase & Co./2025 Form 10-K185 JPMorgan Chase & Co./2025 Form 10-K 185 --- ## New Risk: Notes to consolidated financial statements Fair value measurements using significant unobservable inputsYear endedDecember 31, 2025(in millions)Fair value at Jan. 1, 2025Total realized/unrealized gains/(losses)Transfers into level 3Transfers (out of) level 3Fair value at Dec. 31, 2025Change in unrealized gains/(losses) related to financial instruments held at Dec. 31, 2025Purchases(g)SalesSettlements(h)Assets:(a)Trading assets:Debt instruments:Mortgage-backed securities: U.S. GSEs and government agencies$488 $16 $34 $(175) $(56)$ - $ - $307 $4 Residential - nonagency5 6 - (6) - - - 5 - Commercial - nonagency10 (6) - - - - (4) - - Total mortgage-backed securities503 16 34 (181)(56) - (4)312 4 Obligations of U.S. states and municipalities1 - - - - - - 1 - Non-U.S. government debt securities152 30 346 (308) - 59 (34)245 19 Corporate debt securities390 28 270 (212) (10)22 (34)454 23 Loans1,088 (58)1,413 (930) (146)876 (1,100)1,143 (63)Asset-backed securities10 - 28 (11) - - - 27 - Total debt instruments2,144 16 2,091 (1,642)(212)957 (1,172)2,182 (17)Equity securities62 (34)264 (229) - 165 (90)138 - Physical commodities26 3 - - 1 - - 30 16 Other210 2 311 - (99)59 (39)444 192 Total trading assets - debt and equity instruments2,442 (13)(c)2,666 (1,871)(310)1,181 (1,301)2,794 191 (c)Net derivative receivables:(b) Interest rate301 1,329 188 (338) 108 (168)(114)1,306 790 Credit(363)(637)94 (10) 10 (273)44 (1,135)(569)Foreign exchange20 644 196 (448) (34)273 (346)305 221 Equity(2,866)2,941 1,016 (2,630) (2,690)83 609 (3,537)1,476 Commodity(73)54 70 (248) 170 15 (4)(16)108 Total net derivative receivables(2,981)4,331 (c)1,564 (3,674)(2,436)(70)189 (3,077)2,026 (c)Available-for-sale securities:Mortgage-backed securities:Commercial - nonagency8 (5) - - - - - 3 (5)Corporate debt securities - 2 194 (94) - 6 - 108 4 Total available-for-sale securities8 (3)(d)194 (94) - 6 - 111 (1)(d)Loans2,416 206 (c)1,091 (226) (968)1,266 (723)3,062 165 (c)Mortgage servicing rights9,121 48 (e)1,057 9 (1,068) - - 9,167 48 (e)Other assets1,344 (15)(c)358 (66)(84)98 (588)1,047 61 (c)Fair value measurements using significant unobservable inputsYear endedDecember 31, 2025(in millions)Fair value at Jan. 1, 2025Total realized/unrealized (gains)/lossesTransfers (out of) level 3Fair value at Dec. 31, 2025Change in unrealized (gains)/losses related to financial instruments held at Dec. 31, 2025PurchasesSalesIssuancesSettlements(h)Transfers into level 3Liabilities:(a)Deposits$2,185 $161 (c)(f)$ - $ - $1,951 $(1,811)$ - $(130)$2,356 $128 (c)(f)Short-term borrowings3,476 536 (c)(f) - - 10,307 (8,672)36 (125)5,558 392 (c)(f)Trading liabilities - debt and equity instruments46 (14)(c)(86)109 - - 326 (55)326 302 (c)Accounts payable and other liabilities76 (6)(c)(1)1 - - 2 (34)38 (6)(c)Long-term debt34,564 5,039 (c)(f) - - 31,966 (22,573)593 (2,916)46,673 3,898 (c)(f) Purchases(g) Settlements(h) --- ## New Risk: Liabilities:(a) (c)(f) (c)(f) (c)(f) (c)(f) Trading liabilities - debt and equity instruments (c) (c) Accounts payable and other liabilities (c) (c) (c)(f) (c)(f) JPMorgan Chase & Co./2025 Form 10-K187 JPMorgan Chase & Co./2025 Form 10-K187 JPMorgan Chase & Co./2025 Form 10-K187 JPMorgan Chase & Co./2025 Form 10-K 187 --- ## New Risk: Notes to consolidated financial statements During the year ended December 31, 2024, significant transfers from level 3 into level 2 included the following:•$880 million of total debt and equity instruments, predominantly trading loans and equity securities, driven by an increase in observability.•$1.4 billion of gross equity derivative receivables and $2.0 billion of gross equity derivative payables as a result of an increase in observability and a decrease in the significance of unobservable inputs.•$863 million of long-term debt as a result of an increase in observability and a decrease in the significance of unobservable inputs.During the year ended December 31, 2023, significant transfers from level 2 into level 3 included the following:•$951 million of gross interest rate derivative receivables as a result of a decrease in observability and an increase in the significance of unobservable inputs and $2.1 billion of gross interest rate derivative payables as a result of transition to term SOFR for certain interest rate options.•$1.5 billion of gross equity derivative receivables and $829 million of gross equity derivative payables as a result of a decrease in observability and an increase in the significance of unobservable inputs.•$1.3 billion of non-trading loans driven by a decrease in observability.During the year ended December 31, 2023, significant transfers from level 3 into level 2 included the following:•$1.1 billion of total debt and equity instruments, partially due to trading loans, driven by an increase in observability.•$921 million of gross interest rate derivative receivables as a result of an increase in observability and a decrease in the significance of unobservable inputs.•$2.3 billion of gross equity derivative receivables and $1.7 billion of gross equity derivative payables as a result of an increase in observability and a decrease in the significance of unobservable inputs.•$1.1 billion of non-trading loans as a result of an increase in observability and a decrease in the significance of unobservable inputs.All transfers are based on changes in the observability and/or significance of the valuation inputs and are assumed to occur at the beginning of the quarterly reporting period in which they occur. Gains and losses The following describes significant components of total realized/unrealized gains/(losses) for instruments measured at fair value on a recurring basis for the years ended December 31, 2025, 2024 and 2023. These amounts exclude any effects of the Firm's risk management activities where the financial instruments are classified as level 1 and 2 of the fair value hierarchy. Refer to Changes in level 3 recurring fair value measurements rollforward tables on pages 185-189 for further information on these instruments. 2025•$4.6 billion of net gains on assets, predominantly driven by gains in net interest rate derivative receivables and net equity derivative receivables due to market movements.•$5.7 billion of net losses on liabilities, predominantly driven by losses in long-term debt due to market movements.2024•$1.9 billion of net gains on assets, predominantly driven by gains in net interest rate derivative receivables due to market movements and gains in MSRs reflecting lower prepayment speeds on higher rates.•$1.6 billion of net losses on liabilities, predominantly driven by losses in long-term debt due to market movements.2023•$1.8 billion of net gains on assets, largely driven by gains in net interest rate derivative receivables due to market movements and gains in MSRs reflecting lower prepayment speeds on higher rates.•$3.3 billion of net losses on liabilities, predominantly driven by losses in long-term debt due to market movements.Refer to Note 15 for information on MSRs. During the year ended December 31, 2024, significant transfers from level 3 into level 2 included the following:•$880 million of total debt and equity instruments, predominantly trading loans and equity securities, driven by an increase in observability.•$1.4 billion of gross equity derivative receivables and $2.0 billion of gross equity derivative payables as a result of an increase in observability and a decrease in the significance of unobservable inputs.•$863 million of long-term debt as a result of an increase in observability and a decrease in the significance of unobservable inputs.During the year ended December 31, 2023, significant transfers from level 2 into level 3 included the following:•$951 million of gross interest rate derivative receivables as a result of a decrease in observability and an increase in the significance of unobservable inputs and $2.1 billion of gross interest rate derivative payables as a result of transition to term SOFR for certain interest rate options.•$1.5 billion of gross equity derivative receivables and $829 million of gross equity derivative payables as a result of a decrease in observability and an increase in the significance of unobservable inputs.•$1.3 billion of non-trading loans driven by a decrease in observability.During the year ended December 31, 2023, significant transfers from level 3 into level 2 included the following:•$1.1 billion of total debt and equity instruments, partially due to trading loans, driven by an increase in observability.•$921 million of gross interest rate derivative receivables as a result of an increase in observability and a decrease in the significance of unobservable inputs.•$2.3 billion of gross equity derivative receivables and $1.7 billion of gross equity derivative payables as a result of an increase in observability and a decrease in the significance of unobservable inputs.•$1.1 billion of non-trading loans as a result of an increase in observability and a decrease in the significance of unobservable inputs.All transfers are based on changes in the observability and/or significance of the valuation inputs and are assumed to occur at the beginning of the quarterly reporting period in which they occur. During the year ended December 31, 2024, significant transfers from level 3 into level 2 included the following: •$880 million of total debt and equity instruments, predominantly trading loans and equity securities, driven by an increase in observability. •$1.4 billion of gross equity derivative receivables and $2.0 billion of gross equity derivative payables as a result of an increase in observability and a decrease in the significance of unobservable inputs. •$863 million of long-term debt as a result of an increase in observability and a decrease in the significance of unobservable inputs. During the year ended December 31, 2023, significant transfers from level 2 into level 3 included the following: •$951 million of gross interest rate derivative receivables as a result of a decrease in observability and an increase in the significance of unobservable inputs and $2.1 billion of gross interest rate derivative payables as a result of transition to term SOFR for certain interest rate options. •$1.5 billion of gross equity derivative receivables and $829 million of gross equity derivative payables as a result of a decrease in observability and an increase in the significance of unobservable inputs. •$1.3 billion of non-trading loans driven by a decrease in observability. During the year ended December 31, 2023, significant transfers from level 3 into level 2 included the following: •$1.1 billion of total debt and equity instruments, partially due to trading loans, driven by an increase in observability. •$921 million of gross interest rate derivative receivables as a result of an increase in observability and a decrease in the significance of unobservable inputs. •$2.3 billion of gross equity derivative receivables and $1.7 billion of gross equity derivative payables as a result of an increase in observability and a decrease in the significance of unobservable inputs. •$1.1 billion of non-trading loans as a result of an increase in observability and a decrease in the significance of unobservable inputs. All transfers are based on changes in the observability and/or significance of the valuation inputs and are assumed to occur at the beginning of the quarterly reporting period in which they occur. Gains and losses The following describes significant components of total realized/unrealized gains/(losses) for instruments measured at fair value on a recurring basis for the years ended December 31, 2025, 2024 and 2023. These amounts exclude any effects of the Firm's risk management activities where the financial instruments are classified as level 1 and 2 of the fair value hierarchy. Refer to Changes in level 3 recurring fair value measurements rollforward tables on pages 185-189 for further information on these instruments. 2025•$4.6 billion of net gains on assets, predominantly driven by gains in net interest rate derivative receivables and net equity derivative receivables due to market movements.•$5.7 billion of net losses on liabilities, predominantly driven by losses in long-term debt due to market movements.2024•$1.9 billion of net gains on assets, predominantly driven by gains in net interest rate derivative receivables due to market movements and gains in MSRs reflecting lower prepayment speeds on higher rates.•$1.6 billion of net losses on liabilities, predominantly driven by losses in long-term debt due to market movements.2023•$1.8 billion of net gains on assets, largely driven by gains in net interest rate derivative receivables due to market movements and gains in MSRs reflecting lower prepayment speeds on higher rates.•$3.3 billion of net losses on liabilities, predominantly driven by losses in long-term debt due to market movements.Refer to Note 15 for information on MSRs. Gains and losses The following describes significant components of total realized/unrealized gains/(losses) for instruments measured at fair value on a recurring basis for the years ended December 31, 2025, 2024 and 2023. These amounts exclude any effects of the Firm's risk management activities where the financial instruments are classified as level 1 and 2 of the fair value hierarchy. Refer to Changes in level 3 recurring fair value measurements rollforward tables on pages 185-189 for further information on these instruments. 2025 •$4.6 billion of net gains on assets, predominantly driven by gains in net interest rate derivative receivables and net equity derivative receivables due to market movements. •$5.7 billion of net losses on liabilities, predominantly driven by losses in long-term debt due to market movements. 2024 •$1.9 billion of net gains on assets, predominantly driven by gains in net interest rate derivative receivables due to market movements and gains in MSRs reflecting lower prepayment speeds on higher rates. •$1.6 billion of net losses on liabilities, predominantly driven by losses in long-term debt due to market movements. 2023 •$1.8 billion of net gains on assets, largely driven by gains in net interest rate derivative receivables due to market movements and gains in MSRs reflecting lower prepayment speeds on higher rates. •$3.3 billion of net losses on liabilities, predominantly driven by losses in long-term debt due to market movements. Refer to Note 15 for information on MSRs. 190JPMorgan Chase & Co./2025 Form 10-K 190JPMorgan Chase & Co./2025 Form 10-K 190JPMorgan Chase & Co./2025 Form 10-K 190 JPMorgan Chase & Co./2025 Form 10-K Credit and funding adjustments - derivativesDerivatives are generally valued using models that use as their basis observable market parameters. These market parameters generally do not consider factors such as counterparty nonperformance risk, the Firm's own credit quality, and funding costs. Therefore, it is generally necessary to make adjustments to the base estimate of fair value to reflect these factors.CVA represents the adjustment, relative to the relevant benchmark interest rate, necessary to reflect counterparty nonperformance risk. The Firm estimates CVA using a scenario analysis to estimate the expected positive credit exposure across all of the Firm's existing positions with each counterparty, and then estimates losses based on the probability of default and estimated recovery rate as a result of a counterparty credit event considering contractual factors designed to mitigate the Firm's credit exposure, such as collateral and legal rights of offset. The key inputs to this methodology are (i) the probability of a default event occurring for each counterparty, as derived from observed or estimated CDS spreads; and (ii) estimated recovery rates implied by CDS spreads, adjusted to consider the differences in recovery rates as a derivative creditor relative to those reflected in CDS spreads, which generally reflect senior unsecured creditor risk.FVA represents the adjustment to reflect the impact of funding and is recognized where there is evidence that a market participant in the principal market would incorporate it in a transfer of the instrument. The Firm's FVA framework, applied to uncollateralized (including partially collateralized) over-the-counter ("OTC") derivatives incorporates key inputs such as: (i) the expected funding requirements arising from the Firm's positions with each counterparty and collateral arrangements; and (ii) the estimated market funding cost in the principal market which, for derivative liabilities, considers the Firm's credit risk (DVA). For collateralized derivatives, the fair value is estimated by discounting expected future cash flows at the relevant overnight indexed swap rate given the underlying collateral agreement with the counterparty, and therefore a separate FVA is not necessary.The following table provides the gains/(losses) resulting from credit and funding adjustments on principal transactions revenue in the respective periods, excluding the effect of any associated hedging activities. The FVA presented below includes the impact of the Firm's own credit quality on the inception value of liabilities as well as the impact of changes in the Firm's own credit quality over time.Year ended December 31, (in millions)202520242023Credit and funding adjustments:Derivatives CVA$(36)$29 $221 Derivatives FVA(18)99 114 Valuation adjustments on fair value option elected liabilitiesThe valuation of the Firm's liabilities for which the fair value option has been elected requires consideration of the Firm's own credit risk. DVA on fair value option elected liabilities reflects changes (subsequent to the issuance of the liability) in the Firm's probability of default and LGD, which are estimated based on changes in the Firm's credit spread observed in the bond market. Realized (gains)/losses due to DVA for fair value option elected liabilities are reported in principal transactions revenue. Unrealized (gains)/losses are reported in OCI. Refer to page 189 in this Note and Note 24 for further information. Credit and funding adjustments - derivativesDerivatives are generally valued using models that use as their basis observable market parameters. These market parameters generally do not consider factors such as counterparty nonperformance risk, the Firm's own credit quality, and funding costs. Therefore, it is generally necessary to make adjustments to the base estimate of fair value to reflect these factors.CVA represents the adjustment, relative to the relevant benchmark interest rate, necessary to reflect counterparty nonperformance risk. The Firm estimates CVA using a scenario analysis to estimate the expected positive credit exposure across all of the Firm's existing positions with each counterparty, and then estimates losses based on the probability of default and estimated recovery rate as a result of a counterparty credit event considering contractual factors designed to mitigate the Firm's credit exposure, such as collateral and legal rights of offset. The key inputs to this methodology are (i) the probability of a default event occurring for each counterparty, as derived from observed or estimated CDS spreads; and (ii) estimated recovery rates implied by CDS spreads, adjusted to consider the differences in recovery rates as a derivative creditor relative to those reflected in CDS spreads, which generally reflect senior unsecured creditor risk.FVA represents the adjustment to reflect the impact of funding and is recognized where there is evidence that a market participant in the principal market would incorporate it in a transfer of the instrument. The Firm's FVA framework, applied to uncollateralized (including partially collateralized) over-the-counter ("OTC") derivatives incorporates key inputs such as: (i) the expected funding requirements arising from the Firm's positions with each counterparty and collateral arrangements; and (ii) the estimated market funding cost in the principal market which, for derivative liabilities, considers the Firm's credit risk (DVA). For collateralized derivatives, the fair value is estimated by discounting expected future cash flows at the relevant overnight indexed swap rate given the underlying collateral agreement with the counterparty, and therefore a separate FVA is not necessary. --- ## New Risk: Assets and liabilities measured at fair value on a nonrecurring basis The following tables present the assets and liabilities held as of December 31, 2025 and 2024, for which nonrecurring fair value adjustments were recorded during the years ended December 31, 2025 and 2024, by major product category and fair value hierarchy. --- ## New Risk: Notes to consolidated financial statements Additional disclosures about the fair value of financial instruments that are not carried on the Consolidated balance sheets at fair value U.S. GAAP requires disclosure of the estimated fair value of certain financial instruments, which are included in the following table. However, this table does not include other items, such as nonfinancial assets, intangible assets, certain financial instruments, and customer relationships. In the opinion of management, these items, in the aggregate, add significant value to JPMorganChase.Financial instruments for which carrying value approximates fair value Certain financial instruments that are not carried at fair value on the Consolidated balance sheets are carried at amounts that approximate fair value, due to their short-term nature and generally negligible credit risk. These instruments include cash and due from banks, deposits with banks, federal funds sold, securities purchased under resale agreements and securities borrowed, short-term receivables and accrued interest receivable, short-term borrowings, federal funds purchased, securities loaned and sold under repurchase agreements, accounts payable, and accrued liabilities. In addition, U.S. GAAP requires that the fair value of deposit liabilities with no stated maturity (i.e., demand, savings and certain money market deposits) be equal to their carrying value; recognition of the inherent funding value of these instruments is not permitted. Additional disclosures about the fair value of financial instruments that are not carried on the Consolidated balance sheets at fair value U.S. GAAP requires disclosure of the estimated fair value of certain financial instruments, which are included in the following table. However, this table does not include other items, such as nonfinancial assets, intangible assets, certain financial instruments, and customer relationships. In the opinion of management, these items, in the aggregate, add significant value to JPMorganChase.Financial instruments for which carrying value approximates fair value Certain financial instruments that are not carried at fair value on the Consolidated balance sheets are carried --- ## New Risk: Notes to consolidated financial statements Determination of instrument-specific credit risk for items for which the fair value option was elected The following describes how the gains and losses that are attributable to changes in instrument-specific credit risk, were determined. •Loans and lending-related commitments: For floating-rate instruments, all changes in value are attributed to instrument-specific credit risk. For fixed-rate instruments, an allocation of the changes in value for the period is made between those changes in value that are interest rate-related and changes in value that are credit-related. Allocations are generally based on an analysis of borrower-specific credit spread and recovery information, where available, or benchmarking to similar entities or industries. •Long-term debt: Changes in value attributable to instrument-specific credit risk were derived principally from observable changes in the Firm's credit spread as observed in the bond market. •Securities financing agreements: Generally, for these types of agreements, there is a requirement that collateral be maintained with a market value equal to or in excess of the principal amount loaned; as a result, there would be no adjustment or an immaterial adjustment for instrument-specific credit risk related to these agreements. Determination of instrument-specific credit risk for items for which the fair value option was elected The following describes how the gains and losses that are attributable to changes in instrument-specific credit risk, were determined. •Loans and lending-related commitments: For floating-rate instruments, all changes in value are attributed to instrument-specific credit risk. For fixed-rate instruments, an allocation of the changes in value for the period is made between those changes in value that are interest rate-related and changes in value that are credit-related. Allocations are generally based on an analysis of borrower-specific credit spread and recovery information, --- ## New Risk: Notes to consolidated financial statements 20252024December 31, (in millions)Gross derivative receivablesAmounts netted on the Consolidated balance sheetsNet derivative receivablesGross derivative receivablesAmounts netted on the Consolidated balance sheetsNetderivative receivablesU.S. GAAP nettable derivative receivablesInterest rate contracts:Over-the-counter ("OTC")$162,300 $(138,107)$24,193 $158,202 $(134,791)$23,411 OTC-cleared118,377 (118,303)74 130,989 (130,810)179 Exchange-traded(a)128 (73)55 190 (188)2 Total interest rate contracts280,805 (256,483)24,322 289,381 (265,789)23,592 Credit contracts:OTC9,723 (9,433)290 8,680 (8,030)650 OTC-cleared3,233 (3,112)121 2,267 (2,243)24 Total credit contracts12,956 (12,545)411 10,947 (10,273)674 Foreign exchange contracts:OTC180,120 (163,029)17,091 259,608 (236,931)22,677 OTC-cleared904 (849)55 685 (677)8 Exchange-traded(a)21 (3)18 34 - 34 Total foreign exchange contracts181,045 (163,881)17,164 260,327 (237,608)22,719 Equity contracts:OTC33,418 (31,170)2,248 33,269 (30,742)2,527 Exchange-traded(a)63,168 (60,686)2,482 51,040 (49,193)1,847 Total equity contracts96,586 (91,856)4,730 84,309 (79,935)4,374 Commodity contracts:OTC18,244 (14,469)3,775 8,340 (5,848)2,492 OTC-cleared109 (79)30 126 (84)42 Exchange-traded(a)9,565 (9,292)273 5,179 (5,083)96 Total commodity contracts27,918 (23,840)4,078 13,645 (11,015)2,630 Derivative receivables with appropriate legal opinion599,310 (548,605)50,705 (d)658,609 (604,620)53,989 (d)Derivative receivables where an appropriate legal opinion has not been either sought or obtained7,072 7,072 6,978 6,978 Total derivative receivables recognized on the Consolidated balance sheets$606,382 $57,777 $665,587 $60,967 Collateral not nettable on the Consolidated balance sheets(b)(c)(28,891)(28,160)Net amounts$28,886 $32,807 --- ## New Risk: Notes to consolidated financial statements As of December 31, 2025 and 2024, the following amounts were recorded on the Consolidated balance sheets related to certain cumulative fair value hedge basis adjustments that are expected to reverse through the income statement in future periods as an adjustment to yield. Carrying amount of the hedged items(a)(b)Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items:(d)December 31, 2025(in millions)Active hedging relationshipsDiscontinued hedging relationships(e)TotalAssetsInvestment securities - AFS$255,109 (c)$3,693 $(1,374)$2,319 LiabilitiesLong-term debt$222,611 $232 $(8,689)$(8,457)Beneficial interests issued by consolidated VIEs$5,884 $37 $ - $37 Carrying amount of the hedged items(a)(b)Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items:(d)December 31, 2024(in millions)Active hedging relationshipsDiscontinued hedging relationships(e)TotalAssetsInvestment securities - AFS$203,141 (c)$(1,675)$(1,959)$(3,634)LiabilitiesLong-term debt$211,288 $(3,711)$(9,332)$(13,043)Beneficial interests issued by consolidated VIEs$5,312 $(30)$(5)$(35) Carrying amount of the hedged items(a)(b) Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items:(d) Active hedging relationships Discontinued hedging relationships(e) (c) Beneficial interests issued by consolidated VIEs Carrying amount of the hedged items(a)(b) Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items:(d) Active hedging relationships Discontinued hedging relationships(e) (c) Beneficial interests issued by consolidated VIEs (a)Excludes physical commodities with a carrying value of $22.9 billion and $6.2 billion at December 31, 2025 and 2024, respectively, to which the Firm applies fair value hedge accounting. As a result of the application of hedge accounting, these inventories are carried at fair value, thus recognizing unrealized gains and losses in current periods. Since the Firm exits these positions at fair value, there is no incremental impact to net income in future periods. (b)Excludes hedged items where only foreign currency risk is the designated hedged risk, as basis adjustments related to foreign currency hedges will not reverse through the income statement in future periods. At December 31, 2025 and 2024, the carrying amount excluded for AFS securities was $33.6 billion and $28.7 billion, respectively. At December 31, 2025 and 2024, the carrying amount excluded for long-term debt was $587 million and $518 million, respectively. (c)Carrying amount represents the amortized cost, net of allowance if applicable. At December 31, 2025 and 2024, the amortized cost of the portfolio layer method closed portfolios was $91.9 billion and $72.8 billion, of which $68.9 billion and $41.2 billion was designated as hedged, respectively. The amount designated as hedged is the sum of the notional amounts of all outstanding layers in each portfolio, which includes both spot starting and forward starting layers. At December 31, 2025 and 2024, the cumulative amount of basis adjustments was $(32) million and $(1.7) billion, which is comprised of $641 million and $(1.2) billion for active hedging relationships, and $(673) million and $(566) million for discontinued hedging relationships, respectively. Refer to Note 10 for additional information. (d)Positive (negative) amounts related to assets represent cumulative fair value hedge basis adjustments that will reduce (increase) net interest income in future periods. Positive (negative) amounts related to liabilities represent cumulative fair value hedge basis adjustments that will increase (reduce) net interest income in future periods. (e)Represents basis adjustments existing on the balance sheet date associated with hedged items that have been de-designated from qualifying fair value hedging relationships. 212JPMorgan Chase & Co./2025 Form 10-K 212JPMorgan Chase & Co./2025 Form 10-K 212JPMorgan Chase & Co./2025 Form 10-K 212 JPMorgan Chase & Co./2025 Form 10-K Cash flow hedge gains and losses The following tables present derivative instruments, by contract type, used in cash flow hedge accounting relationships, and the pre-tax gains/(losses) recorded on such derivatives, for the years ended December 31, 2025, 2024 and 2023, respectively. The Firm includes the gains/(losses) on the hedging derivative in the same line item in the Consolidated statements of income as the change in cash flows on the related hedged item. Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)Year ended December 31, 2025(in millions)Amounts reclassifiedfrom AOCI to incomeAmounts recordedin OCITotal changein OCI for periodContract typeInterest rate(a)$(2,456)$1,860 $4,316 Foreign exchange(b)50 197 147 Total$(2,406)$2,057 $4,463 Total change in OCI for period Interest rate(a) Foreign exchange(b) Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)Year ended December 31, 2024(in millions)Amounts reclassifiedfrom AOCI to incomeAmounts recordedin OCITotal change in OCI for periodContract typeInterest rate(a)$(2,668)$(3,603)$(935)Foreign exchange(b)89 (139)(228)Total$(2,579)$(3,742)$(1,163)Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)Year ended December 31, 2023(in millions)Amounts reclassifiedfrom AOCI to incomeAmounts recordedin OCITotal change in OCI for periodContract typeInterest rate(a)$(1,839)$274 $2,113 Foreign exchange(b)64 209 145 Total$(1,775)$483 $2,258 Total change in OCI for period Interest rate(a) Foreign exchange(b) Total change in OCI for period Interest rate(a) Foreign exchange(b) (a)Primarily consists of hedges of SOFR-indexed and Prime-indexed floating-rate assets. Gains and losses were recorded in net interest income. (b)Primarily consists of hedges of the foreign currency risk of non-U.S. dollar-denominated revenue and expense. The income statement classification of gains and losses follows the hedged item - primarily noninterest revenue and compensation expense. The Firm did not experience any forecasted transactions that failed to occur for the years ended 2025, 2024 and 2023. Over the next 12 months, the Firm expects that approximately $(926) million (after-tax) of net losses recorded in AOCI at December 31, 2025, related to cash flow hedges will be recognized in income. For cash flow hedges that have been terminated, the maximum length of time over which the derivative results recorded in AOCI will be recognized in earnings is approximately ten years, corresponding to the timing of the originally hedged forecasted cash flows. For open cash flow hedges, the maximum length of time over which forecasted transactions are hedged is approximately ten years. The Firm's longer-dated forecasted transactions relate to core lending and borrowing activities. JPMorgan Chase & Co./2025 Form 10-K213 JPMorgan Chase & Co./2025 Form 10-K213 JPMorgan Chase & Co./2025 Form 10-K213 JPMorgan Chase & Co./2025 Form 10-K 213 --- ## New Risk: Notes to consolidated financial statements The Firm does not use notional amounts of credit derivatives as the primary measure of risk management for such derivatives, because the notional amount does not take into account the probability of the occurrence of a credit event, the recovery value of the reference obligation, or related cash instruments and economic hedges, each of which reduces, in the Firm's view, the risks associated with such derivatives. Total credit derivatives and credit-related notesMaximum payout/Notional amountDecember 31, 2025(in millions)Protection soldProtection purchased with identical underlyings(c)Net protection (sold)/purchased(d)Other protection purchased(e)Credit derivativesCredit default swaps$(503,480)$549,440 $45,960 $6,840 Other credit derivatives(a)(124,650)187,090 62,440 9,495 Total credit derivatives(628,130)736,530 108,400 16,335 Credit-related notes(b) - - - 13,162 Total$(628,130)$736,530 $108,400 $29,497 Maximum payout/Notional amountDecember 31, 2024(in millions)Protection soldProtection purchased with identical underlyings(c)Net protection (sold)/purchased(d)Other protection purchased(e)Credit derivativesCredit default swaps$(450,184)$474,554 $24,370 $6,858 Other credit derivatives(a)(110,913)137,927 27,014 10,169 Total credit derivatives(561,097)612,481 51,384 17,027 Credit-related notes(b) - - - 10,471 Total$(561,097)$612,481 $51,384 $27,498 --- ## New Risk: Commissions and other fees This revenue category includes commissions and fees from brokerage and custody services, and other products. Brokerage commissions represents commissions earned when the Firm acts as a broker, by facilitating its clients' purchases and sales of securities and other financial instruments. Brokerage commissions are collected and recognized as revenue upon occurrence of the client transaction. The Firm reports certain costs paid to third-party clearing houses and exchanges net against commission revenue. Administration fees predominantly include fees for custody, funds services, securities lending and securities clearance. These fees are recorded as revenue over the period in which the related service is provided. JPMorgan Chase & Co./2025 Form 10-K219 JPMorgan Chase & Co./2025 Form 10-K219 JPMorgan Chase & Co./2025 Form 10-K219 JPMorgan Chase & Co./2025 Form 10-K 219 --- ## New Risk: Notes to consolidated financial statements The following table presents the weighted-average actuarial assumptions used to determine the net periodic benefit costs for the defined benefit pension and OPEB plans. Year ended December 31,202520242023Discount rate5.49 %5.16 %5.14 %Expected long-term rate of return on plan assets5.44 %6.15 %5.74 % Plan assumptionsThe Firm's expected long-term rate of return is a blended weighted average, by asset allocation of the projected long-term returns for the various asset classes, taking into consideration local market conditions and the specific allocation of plan assets. Returns on asset classes are developed using a forward-looking approach and are not strictly based on historical returns, with consideration given to current market conditions and the portfolio mix of each plan. The discount rates used in determining the benefit obligations are generally provided by the Firm's actuaries, with the Firm's principal defined benefit pension plan using a rate that was selected by reference to the yields on portfolios of bonds with maturity dates and coupons that closely match the plan's projected annual cash flows. Investment strategy and asset allocationThe assets of the Firm's defined benefit pension plans are held in various trusts and are invested in well-diversified portfolios of equity and fixed income securities, cash and cash equivalents, and alternative investments. The Firm regularly reviews the asset allocations and asset managers, as well as other factors that could impact the portfolios, which are rebalanced when deemed necessary. As of December 31, 2025, the approved asset allocation ranges by asset class for the Firm's principal defined benefit plan are 41-100% debt securities, 0-40% equity securities, and 0-14% alternatives.Assets held by the Firm's defined benefit pension and OPEB plans do not include securities issued by JPMorganChase or its affiliates, except through indirect exposures through investments in exchange traded funds, mutual funds and collective investment funds managed by third-parties. The defined benefit pension and OPEB plans hold investments that are sponsored or managed by affiliates of JPMorganChase in the amount of $2.1 billion and $1.8 billion as of December 31, 2025 and 2024, respectively. Plan assumptionsThe Firm's expected long-term rate of return is a blended weighted average, by asset allocation of the projected long-term returns for the various asset classes, taking into consideration local market conditions and the specific allocation of plan assets. Returns on asset classes are developed using a forward-looking approach and are not strictly based on historical returns, with consideration given to current market conditions and the portfolio mix of each plan. The discount rates used in determining the benefit obligations are generally provided by the Firm's actuaries, with the Firm's principal defined benefit pension plan using a rate that was selected by reference to the yields on portfolios of bonds with maturity dates and coupons that closely match the plan's projected annual cash flows. --- ## New Risk: Total held-to-maturity securities (a)Represents the amount of portfolio layer method basis adjustments related to AFS securities hedged in a closed portfolio. Under U.S. GAAP portfolio layer method basis adjustments are not allocated to individual securities, however, the amounts impact the unrealized gains or losses in the table for the types of securities being hedged. Refer to Note 1 and Note 5 for additional information. (b)The Firm purchased $5.4 billion, $4.7 billion and $4.1 billion of HTM securities for the years ended December 31, 2025, 2024 and 2023, respectively. (c)The amortized cost of investment securities is reported net of allowance for credit losses of $106 million, $152 million and $128 million at December 31, 2025, 2024 and 2023, respectively. (d)Excludes $4.6 billion and $3.7 billion of accrued interest receivable at December 31, 2025 and 2024, respectively, included in accrued interest and accounts receivable on the Consolidated balance sheets. The Firm generally does not recognize an allowance for credit losses on accrued interest receivable, consistent with its policy to write them off no later than 90 days past due by reversing interest income. The Firm did not reverse through interest income any accrued interest receivable for the years ended December 31, 2025 and 2024. JPMorgan Chase & Co./2025 Form 10-K229 JPMorgan Chase & Co./2025 Form 10-K229 JPMorgan Chase & Co./2025 Form 10-K229 JPMorgan Chase & Co./2025 Form 10-K 229 --- ## New Risk: Credit risk mitigation practices Securities financing agreements expose the Firm primarily to credit and liquidity risk. To manage these risks, the Firm monitors the value of the underlying securities (predominantly high-quality securities collateral, including government-issued debt and U.S. GSEs and government agencies MBS) that it has received from or provided to its counterparties compared to the value of cash proceeds and exchanged collateral, and either requests additional collateral or returns securities or collateral when appropriate. Margin levels are initially established based upon the counterparty, the type of underlying securities, and the permissible collateral, and are monitored on an ongoing basis. In resale and securities borrowed agreements, the Firm is exposed to credit risk to the extent that the value of the securities received is less than initial cash principal advanced and any collateral amounts exchanged. In repurchase and securities loaned agreements, credit risk exposure arises to the extent that the value of underlying securities advanced exceeds the value of the initial cash principal received, and any collateral amounts exchanged. Additionally, the Firm typically enters into master netting agreements and other similar arrangements with its counterparties, which provide for the right to liquidate the underlying securities and any collateral amounts exchanged in the event of a counterparty default. It is also the Firm's policy to take possession, where possible, of the securities underlying resale and securities borrowed agreements. Refer to Note 29 for further information regarding assets pledged and collateral received in securities financing agreements. JPMorgan Chase & Co./2025 Form 10-K233 JPMorgan Chase & Co./2025 Form 10-K233 JPMorgan Chase & Co./2025 Form 10-K233 JPMorgan Chase & Co./2025 Form 10-K 233 --- ## New Risk: Loans at fair value Loans for which the fair value option has been elected are measured at fair value, with changes in fair value recorded in noninterest revenue. Interest income on these loans is accrued and recognized based on the contractual rate of interest. Loan origination fees are recognized upfront in noninterest revenue. Loan origination costs are recognized in the associated expense category as incurred. Because these loans are recognized at fair value, the Firm's allowance for loan losses and charge-off JPMorgan Chase & Co./2025 Form 10-K237 JPMorgan Chase & Co./2025 Form 10-K237 JPMorgan Chase & Co./2025 Form 10-K237 JPMorgan Chase & Co./2025 Form 10-K 237 --- ## New Risk: credit card Wholesale(c)(d) • Residential real estate(a) • Auto and other(b) • Secured by real estate • Commercial and industrial • Other(e) (a)Includes scored mortgage and home equity loans held in CCB and AWM, and scored mortgage loans held in CIB. (b)Includes scored auto, business banking and consumer unsecured loans as well as overdrafts, primarily in CCB. (c)Includes loans held in CIB, AWM, Corporate, and risk-rated exposure held in CCB, for which the wholesale methodology is applied when determining the allowance for loan losses. (d)The wholesale portfolio segment's classes align with loan classifications as defined by the Federal Reserve Board ("FRB") in effect at each period presented, based on the loan's collateral, purpose, and type of borrower. (e)Includes loans to financial institutions, personal investment companies and trusts, individuals and individual entities (predominantly Global Private Bank clients within AWM and J.P. Morgan Wealth Management within CCB), states and political subdivisions, nonprofits, as well as loans to SPEs. Refer to Note 14 for more information on SPEs. The following tables summarize the Firm's loan balances by portfolio segment. December 31, 2025(in millions)Consumer, excluding credit cardCredit cardWholesaleTotal(a)(b)Retained$368,741 $247,797 $792,367 $1,408,905 Held-for-sale334 - 13,506 13,840 At fair value33,183 - 37,501 70,684 Total$402,258 $247,797 $843,374 $1,493,429 December 31, 2024(in millions)Consumer, excluding credit cardCredit cardWholesaleTotal(a)(b)Retained$376,334 $232,860 $690,396 $1,299,590 Held-for-sale945 - 6,103 7,048 At fair value15,531 - 25,819 41,350 Total$392,810 $232,860 $722,318 $1,347,988 --- ## New Risk: December 31, 2025 (in millions) Total(a)(b) December 31, 2024 (in millions) Total(a)(b) (a)Excludes $7.0 billion and $6.6 billion of accrued interest receivable at December 31, 2025 and 2024, respectively. The Firm wrote off accrued interest receivable of $109 million and $84 million for the years ended December 31, 2025 and 2024, respectively. (b)Loans (other than those for which the fair value option has been elected) are presented net of unamortized discounts and premiums and net deferred loan fees or costs, which were not material as of December 31, 2025 and 2024. For the discount associated with First Republic loans, refer to Note 34 on pages 312-314. The following tables provide information about the amounts paid or received for retained loans purchased and sold during the periods indicated. Retained loans reclassified to held-for-sale during the periods indicated are reported at the lower of cost or market value on the date of transfer. Loans that were reclassified to held-for-sale and sold in a subsequent period are excluded from the sales line of these tables. Year ended December 31, 2025(in millions)Consumer, excluding credit cardCredit cardWholesaleTotalPurchases$756 (b)(c)$ - $1,696 $2,452 Sales3,006 - 52,577 55,583 Retained loans reclassified to held-for-sale(a)332 - 1,220 1,552 --- ## New Risk: Year ended December 31, 2025 (in millions) (b)(c) Retained loans reclassified to held-for-sale(a) Year ended December 31, 2024(in millions)Consumer, excluding credit cardCredit cardWholesaleTotalPurchases$647 (b)(c)$ - $1,432 $2,079 Sales10,440 - 45,147 55,587 Retained loans reclassified to held-for-sale(a)1,656 - 749 2,405 Year ended December 31, 2024 (in millions) (b)(c) Retained loans reclassified to held-for-sale(a) JPMorgan Chase & Co./2025 Form 10-K239 JPMorgan Chase & Co./2025 Form 10-K239 JPMorgan Chase & Co./2025 Form 10-K239 JPMorgan Chase & Co./2025 Form 10-K 239 --- ## New Risk: Residential real estate Delinquency is the primary credit quality indicator for retained residential real estate loans. The following tables provide information on delinquency and gross charge-offs. As of or for the year ended December 31, 2025 (in millions, except ratios)Term loans by origination year(c)Revolving loansTotal20252024202320222021Prior to 2021Within the revolving periodConverted to term loansLoan delinquency(a)Current$21,179 $9,894 $14,334 $57,258 $74,916 $110,489 $6,644 $6,246 $300,960 30-149 days past due4 16 36 98 99 770 27 184 1,234 150 or more days past due - 12 68 242 231 653 12 119 1,337 Total retained loans$21,183 $9,922 $14,438 $57,598 $75,246 $111,912 $6,683 $6,549 $303,531 % of 30+ days past due to total retained loans(b)0.02 %0.28 %0.72 %0.59 %0.44 %1.26 %0.58 %4.63 %0.84 %Gross charge-offs$ - $2 $4 $7 $10 $9 $22 $4 $58 --- ## New Risk: As of or for the year ended December 31, 2025 (in millions, except ratios) Term loans by origination year(c) --- ## New Risk: Geographic region(h)(j) (a)Includes collateral-dependent residential real estate loans that are charged down to the fair value of the underlying collateral less costs to sell. The Firm reports, in accordance with regulatory guidance, residential real estate loans that have been discharged under Chapter 7 bankruptcy and not reaffirmed by the borrower ("Chapter 7 loans") as collateral-dependent nonaccrual loans, regardless of their delinquency status. At December 31, 2025, approximately 9% of Chapter 7 residential real estate loans were 30 days or more past due. (b)Mortgage loans insured by U.S. government agencies excluded from nonaccrual loans were not material at December 31, 2025 and 2024. (c)Generally, all consumer nonaccrual loans have an allowance. In accordance with regulatory guidance, certain nonaccrual loans that are considered collateral-dependent have been charged down to the lower of amortized cost or the fair value of their underlying collateral less costs to sell. If the value of the underlying collateral improves subsequent to charge down, the related allowance may be negative. (d)Interest income on nonaccrual loans recognized on a cash basis was $147 million and $160 million for the years ended December 31, 2025 and 2024, respectively. (e)Represents the aggregate unpaid principal balance of loans divided by the estimated current property value. Current property values are estimated, at a minimum, quarterly, based on home valuation models using nationally recognized home price index valuation estimates incorporating actual data to the extent available and forecasted data where actual data is not available. Current estimated combined LTV for junior lien home equity loans considers all available lien positions, as well as unused lines, related to the property. (f)Refreshed FICO scores represent each borrower's most recent credit score, which is obtained by the Firm on at least a quarterly basis. (g)Includes residential real estate loans, primarily held in LLCs in AWM that did not have a refreshed FICO score. These loans have been included in a FICO band based on management's estimation of the borrower's credit quality. (h)Included U.S. government-guaranteed loans as of December 31, 2025 and 2024. (i)Excludes loans with no FICO and/or LTV data available. (j)The geographic regions presented in the table are ordered based on the magnitude of the corresponding loan balances at December 31, 2025. JPMorgan Chase & Co./2025 Form 10-K243 JPMorgan Chase & Co./2025 Form 10-K243 JPMorgan Chase & Co./2025 Form 10-K243 JPMorgan Chase & Co./2025 Form 10-K 243 --- ## New Risk: Auto and other Delinquency is the primary credit quality indicator for retained auto and other loans. The following tables provide information on delinquency and gross charge-offs. As of or for the year ended December 31, 2025 (in millions, except ratios)Term loans by origination yearRevolving loans20252024202320222021Prior to 2021Within the revolving periodConverted to term loansTotalLoan delinquencyCurrent$26,490 $15,586 $9,443 $4,899 $2,961 $846 $3,817 $177 $64,219 30-119 days past due170 180 225 170 99 25 33 48 950 120 or more days past due - 2 2 - 1 - 2 34 41 Total retained loans$26,660 $15,768 $9,670 $5,069 $3,061 $871 $3,852 $259 $65,210 % of 30+ days past due to total retained loans0.64 %1.15 %2.35 %3.35 %3.23 %2.87 %0.91 %31.66 %1.52 %Gross charge-offs$242 $228 $244 $157 $69 $83 $ - $8 $1,031 --- ## New Risk: Loan delinquency Current and less than 30 days past due and still accruing JPMorgan Chase & Co./2025 Form 10-K247 JPMorgan Chase & Co./2025 Form 10-K247 JPMorgan Chase & Co./2025 Form 10-K247 JPMorgan Chase & Co./2025 Form 10-K 247 --- ## New Risk: Notes to consolidated financial statements Other credit quality indicators The following table provides information on other credit quality indicators for retained credit card loans. (in millions, except ratios)December 31, 2025December 31, 2024Geographic region(a)California$38,702 $36,385 Texas26,313 24,423 New York19,488 18,525 Florida18,622 17,236 Illinois13,160 12,442 New Jersey10,282 9,644 Colorado7,384 6,962 Ohio7,326 6,976 Pennsylvania6,921 6,558 Arizona6,295 5,796 All other93,304 87,913 Total retained loans$247,797 $232,860 Percentage of portfolio based on carrying value with estimated refreshed FICO scoresEqual to or greater than 66084.6 %85.5 %Less than 66015.2 14.3 No FICO available0.2 0.2 --- ## New Risk: As of or for the year ended December 31, 2025 (in millions) Secured by real estateAs of or for the year ended December 31, 2024 (in millions)Term loans by origination yearRevolving loans20242023202220212020Prior to 2020Within the revolving periodConverted to term loansTotalLoans by risk ratingsInvestment-grade$10,002 $9,834 $25,284 $22,796 $15,548 $29,488 $1,328 $ - $114,280 Noninvestment-grade4,238 5,366 14,717 8,567 3,462 10,392 1,317 93 48,152 Total retained loans$14,240 $15,200 $40,001 $31,363 $19,010 $39,880 $2,645 $93 $162,432 Gross charge-offs$72 $18 $43 $2 $109 $80 $ - $ - $324 As of or for the year ended December 31, 2024 (in millions) JPMorgan Chase & Co./2025 Form 10-K251 JPMorgan Chase & Co./2025 Form 10-K251 JPMorgan Chase & Co./2025 Form 10-K251 JPMorgan Chase & Co./2025 Form 10-K 251 --- ## New Risk: Notes to consolidated financial statements Commercial and industrialAs of or for the year ended December 31, 2025 (in millions)Term loans by origination yearRevolving loans20252024202320222021Prior to 2021Within the revolving periodConverted to term loansTotalLoans by risk ratingsInvestment-grade$16,186 $5,418 $3,040 $4,352 $1,836 $1,225 $34,884 $1 $66,942 Noninvestment-grade32,906 13,376 5,927 5,600 2,006 825 46,721 100 107,461 Total retained loans$49,092 $18,794 $8,967 $9,952 $3,842 $2,050 $81,605 $101 $174,403 Gross charge-offs$43 $64 $11 $151 $129 $26 $461 $8 $893 --- ## New Risk: As of or for the year ended December 31, 2025 (in millions) Commercial and industrialAs of or for the year ended December 31, 2024 (in millions)Term loans by origination yearRevolving loans20242023202220212020Prior to 2020Within the revolving periodConverted to term loansTotalLoans by risk ratingsInvestment-grade$11,564 $6,285 $6,588 $3,119 $1,067 $1,139 $41,099 $1 $70,862 Noninvestment-grade21,251 11,350 10,942 5,322 783 975 45,181 124 95,928 Total retained loans$32,815 $17,635 $17,530 $8,441 $1,850 $2,114 $86,280 $125 $166,790 Gross charge-offs$25 $22 $128 $24 $1 $50 $270 $5 $525 As of or for the year ended December 31, 2024 (in millions) Other(a)As of or for the year ended December 31, 2025 (in millions)Term loans by origination yearRevolving loans20252024202320222021Prior to 2021Within the revolving periodConverted to term loansTotalLoans by risk ratingsInvestment-grade$43,073 $13,123 $7,939 $10,838 $5,574 $11,757 $263,150 $93 $355,547 Noninvestment-grade16,162 6,456 4,425 4,079 2,013 2,563 61,095 79 96,872 Total retained loans$59,235 $19,579 $12,364 $14,917 $7,587 $14,320 $324,245 $172 $452,419 Gross charge-offs$46 $195 $32 $2 $9 $58 $26 $106 $474 Other(a) --- ## New Risk: at December 31, 2025 U.S. unemployment rate(a) YoY growth in U.S. real GDP(b) Central case assumptions at December 31, 20242Q254Q252Q26U.S. unemployment rate(a)4.5 %4.3 %4.3 %YoY growth in U.S. real GDP(b)2.0 %1.9 %1.8 % U.S. unemployment rate(a) YoY growth in U.S. real GDP(b) (a)Reflects quarterly average of forecasted U.S. unemployment rate. (b)The year over year growth in U.S. real GDP in the forecast horizon of the central scenario is calculated as the percentage change in U.S. real GDP levels from the prior year. Subsequent changes to this forecast and related estimates will be reflected in the provision for credit losses in future periods. Refer to Note 12 for additional information on the consumer and wholesale credit portfolios. 262JPMorgan Chase & Co./2025 Form 10-K 262JPMorgan Chase & Co./2025 Form 10-K 262JPMorgan Chase & Co./2025 Form 10-K 262 JPMorgan Chase & Co./2025 Form 10-K --- ## New Risk: Total current income tax expense Total income tax expense includes $629 million, $314 million and $68 million of tax benefits for the years ended December 31, 2025, 2024 and 2023, respectively, resulting from the resolution of tax audits. Tax effect of items recorded in stockholders' equity The preceding table does not reflect the tax effect of certain items that are recorded each period directly in stockholders' equity, which are predominantly reflected in OCI as disclosed in Note 24. For the year ended December 31, 2024, stockholders' equity reflected the tax effect associated with the Firm's adoption of the Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method guidance. For the year ended December 31, 2023, stockholders' equity reflected the tax effect associated with the Firm's adoption of the TDR accounting guidance. Both of the respective adoptions were recognized in retained earnings. Refer to Note 1, 6 and 14 for further information. --- ## New Risk: Income before income tax expense (a)For purposes of this table, non-U.S. income is defined as income generated from operations located outside the U.S. The Firm will recognize any U.S. income tax expense it may incur on global intangible low tax income as income tax expense in the period in which the tax is incurred. Income taxes paidCash paid for income taxes, net of refunds, was $5.3 billion, $11.7 billion, and $9.9 billion for the years ended December 31, 2025, 2024 and 2023, respectively.The following table presents income taxes paid by respective jurisdiction in excess of 5% of total income taxes paid, net of refunds received.Year ended December 31, (in millions)202520242023U.S. federal$(1,099)$3,465 $2,797 U.S. state and localNew York State538 NM590 California465 810 721 New York City270 NMNMAll other459 2,065 1,432 Total U.S. state and local1,732 2,875 2,743 Non-U.S.United Kingdom987 1,254 1,254 India582 599 NMFrance459 NMNMLuxembourg272 NMNMGermanyNM647 NMAll other2,376 2,875 3,114 Total Non-U.S.4,676 5,375 4,368 Total cash income taxes paid, net $5,309 $11,715 $9,908 NM refers to not meaningful, which reflects the amount of income taxes paid during the year that does not meet the 5% disaggregation threshold. --- ## New Risk: Income taxes paid Cash paid for income taxes, net of refunds, was $5.3 billion, $11.7 billion, and $9.9 billion for the years ended December 31, 2025, 2024 and 2023, respectively. The following table presents income taxes paid by respective jurisdiction in excess of 5% of total income taxes paid, net of refunds received. Year ended December 31, (in millions)202520242023U.S. federal$(1,099)$3,465 $2,797 U.S. state and localNew York State538 NM590 California465 810 721 New York City270 NMNMAll other459 2,065 1,432 Total U.S. state and local1,732 2,875 2,743 Non-U.S.United Kingdom987 1,254 1,254 India582 599 NMFrance459 NMNMLuxembourg272 NMNMGermanyNM647 NMAll other2,376 2,875 3,114 Total Non-U.S.4,676 5,375 4,368 Total cash income taxes paid, net $5,309 $11,715 $9,908 New York State California New York City All other --- ## New Risk: Total U.S. state and local Non-U.S. United Kingdom India France Luxembourg Germany All other --- ## New Risk: Total cash income taxes paid, net NM refers to not meaningful, which reflects the amount of income taxes paid during the year that does not meet the 5% disaggregation threshold. JPMorgan Chase & Co./2025 Form 10-K289 JPMorgan Chase & Co./2025 Form 10-K289 JPMorgan Chase & Co./2025 Form 10-K289 JPMorgan Chase & Co./2025 Form 10-K 289 --- ## New Risk: Tax examination status JPMorganChase is continually under examination by the Internal Revenue Service, by taxing authorities throughout the world, and by many state and local jurisdictions throughout the U.S. The following table summarizes the status of tax years that remain subject to income tax examination of JPMorganChase and its consolidated subsidiaries by significant jurisdictions as of December 31, 2025. Periods under examinationStatusJPMorganChase - U.S.2011 - 2013Field examination of amended returns; certain matters at Appellate levelJPMorganChase - U.S.2014 - 2020Field examination of original and amended returns; certain matters at Appellate levelJPMorganChase - New York City2015 - 2018Field examinationJPMorganChase - New York State2015 - 2018Field examinationJPMorganChase - U.K.2017 - 2023Field examination of certain select entities 2014 - 2020 2015 - 2018 Field examination JPMorganChase - New York State 2017 - 2023 JPMorgan Chase & Co./2025 Form 10-K291 JPMorgan Chase & Co./2025 Form 10-K291 JPMorgan Chase & Co./2025 Form 10-K291 JPMorgan Chase & Co./2025 Form 10-K 291 --- ## New Risk: Notes to consolidated financial statements CECL Regulatory Capital TransitionBeginning January 1, 2022, the $2.9 billion CECL capital benefit, provided by the Federal Reserve in response to the COVID-19 pandemic, was phased out at 25% per year over a three-year period and fully phased out as of January 1, 2025. As of December 31, 2024, the Firm's CET1 capital reflected the remaining benefit of $720 million associated with the CECL capital transition provisions. Similarly, as of January 1, 2025, the Firm has phased out the other CECL capital transition provisions which impacted Tier 2 capital, adjusted average assets, total leverage exposure and RWA, as applicable. CECL Regulatory Capital TransitionBeginning January 1, 2022, the $2.9 billion CECL capital benefit, provided by the Federal Reserve in response to the COVID-19 pandemic, was phased out at 25% per year over a three-year period and fully phased out as of January 1, 2025. As of December 31, 2024, the Firm's CET1 capital reflected the remaining benefit of $720 million associated with the CECL capital transition provisions. CECL Regulatory Capital Transition Beginning January 1, 2022, the $2.9 billion CECL capital benefit, provided by the Federal Reserve in response to the COVID-19 pandemic, was phased out at 25% per year over a three-year period and fully phased out as of January 1, 2025. As of December 31, 2024, the Firm's CET1 capital reflected the remaining benefit of $720 million associated with the CECL capital transition provisions. Similarly, as of January 1, 2025, the Firm has phased out the other CECL capital transition provisions which impacted Tier 2 capital, adjusted average assets, total leverage exposure and RWA, as applicable. Similarly, as of January 1, 2025, the Firm has phased out the other CECL capital transition provisions which impacted Tier 2 capital, adjusted average assets, total leverage exposure and RWA, as applicable. The following tables present risk-based capital metrics under both the Standardized and Advanced approaches and leverage-based capital metrics for JPMorgan Chase & Co. and JPMorgan Chase Bank, N.A. As of December 31, 2025 and 2024, JPMorgan Chase & Co. and JPMorgan Chase Bank, N.A. were well-capitalized and met all capital requirements to which each was subject. December 31, 2025(in millions, except ratios)StandardizedAdvancedJPMorgan Chase & Co.JPMorgan Chase Bank, N.A.JPMorgan Chase & Co.JPMorgan Chase Bank, N.A.Risk-based capital metrics:(a)CET1 capital$288,469 $294,804 $288,469 $294,804 Tier 1 capital307,630 294,807 307,630 294,807 Total capital343,843 317,684 328,962 (d)302,732 (d)Risk-weighted assets(b)1,981,692 1,928,039 2,045,249 (d)1,864,923 (d)CET1 capital ratio(c)14.6 %15.3 %14.1 %15.8 %Tier 1 capital ratio(c)15.5 15.3 15.0 15.8 Total capital ratio(c)17.4 16.5 16.1 16.2 JPMorgan Chase & Co. JPMorgan Chase Bank, N.A. JPMorgan Chase & Co. JPMorgan Chase Bank, N.A. --- ## New Risk: Notes to consolidated financial statements Off-balance sheet lending-related financial instruments, guarantees and other commitmentsContractual amountCarrying value(i)(j)2025202420252024By remaining maturityas of December 31, (in millions)Expires in 1 year or lessExpires after 1 year through 3 yearsExpires after 3 years through 5 yearsExpires after 5 yearsTotalTotalLending-relatedConsumer, excluding credit card:Residential Real Estate(a)$13,496 $5,665 $3,454 $6,383 $28,998 $30,349 $327 $534 Auto and other10,784 1 4 3,800 14,589 14,495 10 37 Total consumer, excluding credit card24,280 5,666 3,458 10,183 43,587 44,844 337 571 Credit card(b)1,073,537 104,229 (h) - - 1,177,766 1,001,311 2,200 (k) - Total consumer(c)1,097,817 109,895 3,458 10,183 1,221,353 1,046,155 2,537 571 Wholesale:Other unfunded commitments to extend credit(d)135,171 179,512 219,910 26,913 561,506 498,437 3,112 2,608 Standby letters of credit and other financial guarantees(d)16,443 8,135 4,905 436 29,919 28,676 616 473 Other letters of credit(d)4,183 126 6 214 4,529 4,354 13 37 Total wholesale(c)155,797 187,773 224,821 27,563 595,954 531,467 3,741 3,118 Total lending-related$1,253,614 $297,668 $228,279 $37,746 $1,817,307 $1,577,622 $6,278 $3,689 Other guarantees and commitmentsSecurities lending indemnification agreements and guarantees(e) $405,910 $ - $ - $ - $405,910 $310,046 $ - $ - Derivatives qualifying as guarantees1,168 633 9,572 37,658 49,031 49,628 (12)113 Unsettled resale and securities borrowed agreements136,841 231 - - 137,072 115,939 - 2 Unsettled repurchase and securities loaned agreements52,308 587 - - 52,895 66,986 - (2)Loan sale and securitization-related indemnifications:Mortgage repurchase liabilityNANANANANANA37 45 Loans sold with recourseNANANANA2,015 1,189 19 23 Exchange & clearing house guarantees and commitments(f)433,537 NANANA433,537 401,486 - - Other guarantees and commitments (g)9,866 2,075 391 906 13,238 12,396 15 28 Carrying value(i)(j) By remaining maturity as of December 31, (in millions) Residential Real Estate(a) Credit card(b) (h) (k) --- ## New Risk: Standby letters of credit, other financial guarantees and other letters of credit 20252024December 31,(in millions)Standby letters of credit and other financial guaranteesOther letters of creditStandby letters of credit and other financial guaranteesOther letters of creditInvestment-grade(a)$20,535 $3,187 $20,443 $3,380 Noninvestment-grade(a)9,384 1,342 8,233 974 Total contractual amount$29,919 $4,529 $28,676 $4,354 Allowance for lending-related commitments$175 $13 $94 $37 Guarantee liability441 - 379 - Total carrying value$616 $13 $473 $37 Commitments with collateral$16,969 $540 $16,805 $357 Investment-grade(a) Noninvestment-grade(a) (a)The ratings scale is based on the Firm's internal risk ratings. Refer to Note 12 for further information on internal risk ratings. JPMorgan Chase & Co./2025 Form 10-K297 JPMorgan Chase & Co./2025 Form 10-K297 JPMorgan Chase & Co./2025 Form 10-K297 JPMorgan Chase & Co./2025 Form 10-K 297 --- ## New Risk: Other off-balance sheet arrangements Indemnification agreements - general In connection with issuing securities to investors outside the U.S., the Firm may agree to pay additional amounts to the holders of the securities in the event that, due to a change in tax law, certain types of withholding taxes are imposed on payments on the securities. The terms of the securities may also give the Firm the right to redeem the securities if such additional amounts are payable. The Firm may also enter into indemnification clauses such as in connection with the licensing of software to clients ("software licensees") or when it sells a business or assets to a third party ("third-party purchasers"), pursuant to which it indemnifies software licensees for claims of liability or damages that may occur subsequent to the licensing of the software, or third-party purchasers for losses they may incur due to actions taken by the Firm prior to the sale of the business or assets. It is difficult to estimate the Firm's maximum exposure under these indemnification arrangements, since this would require an assessment of future changes in tax law and future claims that may be made against the Firm that have not yet occurred. However, based on historical experience, management expects the risk of loss to be remote. Merchant charge-backs Under the rules of payment networks, in its role as a merchant acquirer, the Firm's Merchant Services business in CIB Payments, retains a contingent liability for disputed processed credit and debit card transactions that result in a charge-back to the merchant. If a dispute is resolved in the cardholder's favor, the Firm will (through the cardholder's issuing bank) credit or refund the amount to the cardholder and will charge back the transaction to the merchant. If the Firm is unable to collect the amount from the merchant, the Firm will bear the loss for the amount credited or refunded to the cardholder. The Firm mitigates this risk by withholding future settlements, retaining cash reserve accounts or obtaining other collateral. In addition, the Firm recognizes a valuation allowance that covers the payment or performance risk related to charge-backs. Clearing Services - Client Credit Risk The Firm provides clearing services for clients by entering into securities purchases and sales and derivative contracts with CCPs, including ETDs such as futures and options, as well as OTC-cleared derivative contracts. As a clearing member, the Firm stands behind the performance of its clients, collects cash and securities collateral (margin) as well as any settlement amounts due from or to clients, and remits them to the relevant CCP or client in whole or part. There are two types of margin: variation margin is posted on a daily basis based on the value of clients' derivative contracts and initial margin is posted at inception of a derivative contract, generally on the basis of the potential changes in the variation margin requirement for the contract. As a clearing member, the Firm is exposed to the risk of nonperformance by its clients, but is not liable to clients for the performance of the CCPs. Where possible, the Firm seeks to mitigate its risk to the client through the collection of appropriate amounts of margin at inception and throughout the life of the transactions. The Firm can also cease providing clearing services if clients do not adhere to their obligations under the clearing agreement. In the event of nonperformance by a client, the Firm would close out the client's positions and access available margin. The CCP would utilize any margin it holds to make itself whole, with any remaining shortfalls required to be paid by the Firm as a clearing member. However, based on historical experience, management expects the risk of loss to be remote. Merchant charge-backs Under the rules of payment networks, in its role as a merchant acquirer, the Firm's Merchant Services business in CIB Payments, retains a contingent liability for disputed processed credit and debit card transactions that result in a charge-back to the merchant. If a dispute is resolved in the cardholder's favor, the Firm will (through the cardholder's issuing bank) credit or refund the amount to the cardholder and will charge back the transaction to the merchant. If the Firm is unable to collect the amount from the merchant, the Firm will bear the loss for the amount credited or refunded to the cardholder. The Firm mitigates this risk by withholding future settlements, retaining cash reserve accounts or obtaining other collateral. In addition, the Firm recognizes a valuation allowance that covers the payment or performance risk related to charge-backs. Clearing Services - Client Credit Risk The Firm provides clearing services for clients by entering into securities purchases and sales and derivative contracts with CCPs, including ETDs such as futures and options, as well as OTC-cleared derivative contracts. As a clearing member, the Firm stands behind the performance of its clients, collects cash and securities collateral (margin) as well as any settlement amounts due from or to clients, and remits them to the relevant CCP or client in whole or part. There are two types of margin: variation margin is posted on a daily basis based on the value of clients' derivative contracts and initial margin is posted at inception of a derivative contract, generally on the basis of the potential changes in the variation margin requirement for the contract. As a clearing member, the Firm is exposed to the risk of nonperformance by its clients, but is not liable to clients for the performance of the CCPs. Where possible, the Firm seeks to mitigate its risk to the client through the collection of appropriate amounts of margin at inception and throughout the life of the transactions. The Firm can also cease providing clearing services if clients do not adhere to their obligations under the clearing agreement. In the event of nonperformance by a client, the Firm would close out the client's positions and access available margin. The CCP would utilize any margin it holds to make itself whole, with any remaining shortfalls required to be paid by the Firm as a clearing member. JPMorgan Chase & Co./2025 Form 10-K299 JPMorgan Chase & Co./2025 Form 10-K299 JPMorgan Chase & Co./2025 Form 10-K299 JPMorgan Chase & Co./2025 Form 10-K 299 --- ## New Risk: Notes to consolidated financial statements also be seized, or the Firm could be prevented from complying with its obligations.Shareholder Litigation. A shareholder derivative action purporting to act on behalf of the Firm is pending in the United States District Court for the Eastern District of New York against the Firm, its Board of Directors and certain of its current and former officers relating to historical trading practices by former employees in the precious metals and U.S. treasuries markets and related conduct which were the subject of the Firm's resolutions with the DOJ, CFTC and SEC in September 2020. Defendants have moved to dismiss the complaint. * * *In addition to the various legal proceedings discussed above, JPMorganChase and its subsidiaries are named as defendants or are otherwise involved in a substantial number of other legal proceedings. The Firm believes it has meritorious defenses to the claims asserted against it in its currently outstanding legal proceedings and it intends to defend itself vigorously. Additional legal proceedings may be initiated from time to time in the future.The Firm has established reserves for several hundred of its currently outstanding legal proceedings. Under U.S. GAAP for contingencies, the Firm accrues for a litigation-related liability when it is probable that such a liability has been incurred and the amount of the loss can be reasonably estimated. The Firm evaluates its outstanding legal proceedings each quarter to assess its litigation reserves, and makes adjustments in such reserves, upward or downward, as appropriate, based on management's best judgment after consultation with counsel. The Firm's legal expense was $361 million, $740 million and $1.4 billion for the years ended December 31, 2025, 2024 and 2023, respectively. There is no assurance that the Firm's litigation reserves will not need to be adjusted in the future. In view of the inherent difficulty of predicting the outcome of legal proceedings, particularly where the claimants seek very large or indeterminate damages, or where the matters present novel legal theories, involve a large number of parties or are in early stages of discovery, the Firm cannot state with confidence what will be the eventual outcomes of the currently pending matters, the timing of their ultimate resolution or the eventual losses, fines, penalties or consequences related to those matters. JPMorganChase believes, based upon its current knowledge and after consultation with counsel, consideration of the material legal proceedings described above and after taking into account its current litigation reserves and its estimated aggregate range of possible losses, that the other legal proceedings currently pending against it should not have a material adverse effect on the Firm's consolidated financial condition. The Firm notes, however, that in light of the uncertainties involved in such proceedings, there is no assurance that the ultimate resolution of these matters will not significantly exceed the reserves it has currently accrued or that a matter will not have material reputational consequences. As a result, the outcome of a particular matter may be material to JPMorganChase's operating results for a particular period, depending on, among other factors, the size of the loss or liability imposed and the level of JPMorganChase's income for that period. also be seized, or the Firm could be prevented from complying with its obligations.Shareholder Litigation. A shareholder derivative action purporting to act on behalf of the Firm is pending in the United States District Court for the Eastern District of New York against the Firm, its Board of Directors and certain of its current and former officers relating to historical trading practices by former employees in the precious metals and U.S. treasuries markets and related conduct which were the subject of the Firm's resolutions with the DOJ, CFTC and SEC in September 2020. Defendants have moved to dismiss the complaint. * * *In addition to the various legal proceedings discussed above, JPMorganChase and its subsidiaries are named as defendants or are otherwise involved in a substantial number of other legal proceedings. The Firm believes it has meritorious defenses to the claims asserted against it in its currently outstanding legal proceedings and it intends to defend itself vigorously. Additional legal proceedings may be initiated from time to time in the future.The Firm has established reserves for several hundred of its currently outstanding legal proceedings. Under U.S. GAAP for contingencies, the Firm accrues for a litigation-related liability when it is probable that such a liability has been incurred and the amount of the loss can be reasonably estimated. The Firm evaluates its outstanding legal proceedings each quarter to assess its litigation reserves, and makes adjustments in such reserves, upward or downward, as appropriate, based on management's best judgment after consultation with counsel. The Firm's legal expense was $361 million, $740 million and $1.4 billion for the years ended December 31, 2025, 2024 and 2023, respectively. There is no assurance that the Firm's litigation reserves will not need to be adjusted in the future. In view of the inherent difficulty of predicting the outcome of legal proceedings, particularly where the claimants seek very large or indeterminate damages, or where the matters present novel legal theories, involve a large number of parties or are in early stages of discovery, the Firm cannot state with confidence what will be the eventual outcomes of the currently pending matters, the timing of their ultimate resolution or the eventual losses, fines, penalties or consequences related to those matters. JPMorganChase believes, based upon its current knowledge and after consultation with counsel, consideration of the material legal proceedings described above and after taking into account its current litigation reserves and its estimated aggregate range of possible losses, that the other legal proceedings currently pending against it should not also be seized, or the Firm could be prevented from complying with its obligations. Shareholder Litigation. A shareholder derivative action purporting to act on behalf of the Firm is pending in the United States District Court for the Eastern District of New York against the Firm, its Board of Directors and certain of its current and former officers relating to historical trading practices by former employees in the precious metals and U.S. treasuries markets and related conduct which were the subject of the Firm's resolutions with the DOJ, CFTC and SEC in September 2020. Defendants have moved to dismiss the complaint. * * * In addition to the various legal proceedings discussed above, JPMorganChase and its subsidiaries are named as defendants or are otherwise involved in a substantial number of other legal proceedings. The Firm believes it has meritorious defenses to the claims asserted against it in its currently outstanding legal proceedings and it intends to defend itself vigorously. Additional legal proceedings may be initiated from time to time in the future. The Firm has established reserves for several hundred of its currently outstanding legal proceedings. Under U.S. GAAP for contingencies, the Firm accrues for a litigation-related liability when it is probable that such a liability has been incurred and the amount of the loss can be reasonably estimated. The Firm evaluates its outstanding legal proceedings each quarter to assess its litigation reserves, and makes adjustments in such reserves, upward or downward, as appropriate, based on management's best judgment after consultation with counsel. The Firm's legal expense was $361 million, $740 million and $1.4 billion for the years ended December 31, 2025, 2024 and 2023, respectively. There is no assurance that the Firm's litigation reserves will not need to be adjusted in the future. In view of the inherent difficulty of predicting the outcome of legal proceedings, particularly where the claimants seek very large or indeterminate damages, or where the matters present novel legal theories, involve a large number of parties or are in early stages of discovery, the Firm cannot state with confidence what will be the eventual outcomes of the currently pending matters, the timing of their ultimate resolution or the eventual losses, fines, penalties or consequences related to those matters. JPMorganChase believes, based upon its current knowledge and after consultation with counsel, consideration of the material legal proceedings described above and after taking into account its current litigation reserves and its estimated aggregate range of possible losses, that the other legal proceedings currently pending against it should not have a material adverse effect on the Firm's consolidated financial condition. The Firm notes, however, that in light of the uncertainties involved in such proceedings, there is no assurance that the ultimate resolution of these matters will not significantly exceed the reserves it has currently accrued or that a matter will not have material reputational consequences. As a result, the outcome of a particular matter may be material to JPMorganChase's operating results for a particular period, depending on, among other factors, the size of the loss or liability imposed and the level of JPMorganChase's income for that period. have a material adverse effect on the Firm's consolidated financial condition. The Firm notes, however, that in light of the uncertainties involved in such proceedings, there is no assurance that the ultimate resolution of these matters will not significantly exceed the reserves it has currently accrued or that a matter will not have material reputational consequences. As a result, the outcome of a particular matter may be material to JPMorganChase's operating results for a particular period, depending on, among other factors, the size of the loss or liability imposed and the level of JPMorganChase's income for that period. 304JPMorgan Chase & Co./2025 Form 10-K 304JPMorgan Chase & Co./2025 Form 10-K 304JPMorgan Chase & Co./2025 Form 10-K 304 JPMorgan Chase & Co./2025 Form 10-K --- ## New Risk: Consumer & Community Banking Consumer & Community Banking offers products and services to consumers and small businesses through bank branches, ATMs, digital (including mobile and online) and telephone banking. CCB is organized into Banking & Wealth Management (including Consumer Banking, Business Banking and J.P. Morgan Wealth Management), Home Lending (including Home Lending Production, Home Lending Servicing and Real Estate Portfolios) and Card Services & Auto. Banking & Wealth Management offers deposit, investment and lending products, cash management, payments and services. Home Lending includes mortgage origination and servicing activities, as well as portfolios consisting of residential mortgages and home equity loans. Card Services issues credit cards and offers payment solutions, travel services, merchant offers and lifestyle benefits. Auto originates and services auto loans and leases. --- ## New Risk: Notes to consolidated financial statements Segment & Corporate results The following table provides a summary of results for the Firm's reportable business segments and Corporate activities as of or for the years ended December 31, 2025, 2024 and 2023, on a managed basis. The Firm's definition of managed basis starts with the reported U.S. GAAP results and includes certain reclassifications to present total net revenue for the Firm as a whole (and for each of the reportable business segments and Corporate) on an FTE basis. Accordingly, revenue from investments that receive tax credits and tax-exempt securities is presented in the managed results on a basis comparable to taxable investments and securities. This allows management to assess the comparability of revenue from year-to-year arising from both taxable and tax-exempt sources. The corresponding income tax impact related to tax-exempt items is recorded within income tax expense/(benefit). These adjustments have no impact on net income as reported by the Firm as a whole or by the each of the LOBs and Corporate.The Operating Committee reviews segment results including net interest income, noninterest revenue, noninterest expense, provision for credit losses and net income on a managed basis. The Operating Committee uses these measures to evaluate segment performance and to make key operating decisions, including resource and capital allocations. Segment & Corporate results The following table provides a summary of results for the Firm's reportable business segments and Corporate activities as of or for the years ended December 31, 2025, 2024 and 2023, on a managed basis. The Firm's definition of managed basis starts with the reported U.S. GAAP results and includes certain reclassifications to present total net revenue for the Firm as a whole (and for each of the reportable business segments and Corporate) on an FTE basis. Accordingly, revenue from investments that receive tax credits and tax-exempt securities is presented in the managed results on a basis comparable to taxable investments and securities. This allows management to assess the comparability of revenue from year-to-year arising from both taxable and tax-exempt --- ## New Risk: Segment & Corporate results and reconciliation(a) (Table continued on next page)As of or for the year ended December 31, (in millions, except ratios)Consumer & Community BankingCommercial & Investment BankAsset & Wealth Management202520242023202520242023202520242023Noninterest revenue$17,795 $16,649$15,118$53,766 $48,253$43,809 $17,241 $15,023 $13,560 Net interest income58,234 54,85855,03024,688 21,86120,5446,832 6,555 6,267 Total net revenue76,029 71,50770,14878,454 70,11464,35324,073 21,578 19,827 Provision for credit losses11,493 (e)9,9746,8992,615 7622,09197 (68)159 Compensation expense(b)17,669 17,04515,17119,345 18,19117,1058,645 7,984 7,115 Noncompensation expense(c)(d)22,598 20,99119,64818,871 17,16216,8676,687 6,430 5,665 Total noninterest expense40,267 38,03634,81938,216 35,35333,97215,332 14,414 12,780 Income/(loss) before income tax expense/(benefit)24,269 23,49728,43037,623 33,99928,2908,644 7,232 6,888 Income tax expense/(benefit)6,024 5,8947,1989,862 9,1538,0182,122 1,811 1,661 Net income$18,245 $17,603$21,232$27,761 $24,846$20,272$6,522 $5,421 $5,227 Average equity$56,000 $54,500$54,349$149,500 $132,000$137,507$16,000 $15,500 $16,671 Total assets664,669 650,268642,9512,142,534 1,773,1941,638,493288,065 255,385 245,512 Return on equity32 %32 %38 %18 %18 %14 %40 %34 %31 %Overhead ratio53 53 50 49 50 53 64 67 64 Provision for credit losses (e) Compensation expense(b) Noncompensation expense(c)(d) --- ## New Risk: Cash and due from banks and deposits with banking subsidiaries at the end of the year(b) Cash income taxes paid, net(e) (a)Includes interest expense for intercompany derivative hedges on the Firm's LTD and related fair value adjustments, which is offset by related amounts in Other interest expense/(income). (b)Consistent with bank regulatory reporting guidance, includes intercompany time deposits of $8.0 billion as of December 31, 2025, 2024 and 2023. (c)At December 31, 2025, long-term debt that contractually matures in 2026 through 2030 totaled $14.3 billion, $20.3 billion, $36.4 billion, $22.4 billion, and $23.6 billion, respectively.(d)Refer to Notes 20 and 28 for information regarding the Parent Company's guarantees of its subsidiaries' obligations.(e)Represents payments, net of refunds, made by the Parent Company to various taxing authorities and includes taxes paid on behalf of certain of its subsidiaries that are subsequently reimbursed. The reimbursements were $713 million, $5.0 billion, and $13.2 billion for the years ended December 31, 2025, 2024 and 2023, respectively. (c)At December 31, 2025, long-term debt that contractually matures in 2026 through 2030 totaled $14.3 billion, $20.3 billion, $36.4 billion, $22.4 billion, and $23.6 billion, respectively. (d)Refer to Notes 20 and 28 for information regarding the Parent Company's guarantees of its subsidiaries' obligations. (e)Represents payments, net of refunds, made by the Parent Company to various taxing authorities and includes taxes paid on behalf of certain of its subsidiaries that are subsequently reimbursed. The reimbursements were $713 million, $5.0 billion, and $13.2 billion for the years ended December 31, 2025, 2024 and 2023, respectively. JPMorgan Chase & Co./2025 Form 10-K311 JPMorgan Chase & Co./2025 Form 10-K311 JPMorgan Chase & Co./2025 Form 10-K311 JPMorgan Chase & Co./2025 Form 10-K 311 --- ## New Risk: Mortgage product types: Alt-A Alt-A loans are generally higher in credit quality than subprime loans but have characteristics that would disqualify the borrower from a traditional prime loan. Alt-A lending characteristics may include one or more of the following: (i) limited documentation; (ii) a high CLTV ratio; (iii) loans secured by non-owner occupied properties; or (iv) a debt-to-income ratio above normal JPMorgan Chase & Co./2025 Form 10-K323 JPMorgan Chase & Co./2025 Form 10-K323 JPMorgan Chase & Co./2025 Form 10-K323 JPMorgan Chase & Co./2025 Form 10-K 323 --- ## New Risk: Glossary of Terms and Acronyms PSU(s): Performance share units Regulatory VaR: Daily aggregated VaR calculated in accordance with regulatory rules.REO: Real estate owned Reported basis: Financial statements prepared under U.S. GAAP, which excludes the impact of taxable-equivalent adjustments. Retained loans: Loans that are held-for-investment (i.e., excludes loans held-for-sale and loans at fair value). Revenue wallet: Proportion of fee revenue based on estimates of investment banking fees generated across the industry (i.e., the revenue wallet) from investment banking transactions in M&A, equity and debt underwriting, and loan syndications. Source: Dealogic, a third-party provider of investment banking competitive analysis and volume-based league tables for the above noted industry products.RHS: Rural Housing Service of the U.S. Department of Agriculture ROA: Return on assetsROE: Return on equityROTCE: Return on tangible common equityROU assets: Right-of-use assets RSU(s): Restricted stock units RWA "Risk-weighted assets": Basel III establishes two comprehensive approaches for calculating RWA (a Standardized approach and an Advanced approach) which include capital requirements for credit risk, market risk, and in the case of Advanced, also operational risk. Key differences in the calculation of credit risk RWA between the Standardized and Advanced approaches are that for Advanced, credit risk RWA is based on risk-sensitive approaches which largely rely on the use of internal credit models and parameters, whereas for Standardized, credit risk RWA is generally based on supervisory risk-weightings which vary primarily by counterparty type and asset class. Market risk RWA is calculated on a generally consistent basis between Standardized and Advanced. S&P: Standard and Poor's SAR as it pertains to Hong Kong: Special Administrative RegionSAR(s) as it pertains to employee stock awards: Stock appreciation rights SCB: Stress capital bufferScored portfolios: Consumer loan portfolios that predominantly include residential real estate loans, credit card loans, auto loans to individuals and certain small business loans. SEC: U.S. Securities and Exchange Commission Securities financing agreements: Include resale, repurchase, securities borrowed and securities loaned agreements. Securitized Products Group: Comprised of Securitized Products and tax-oriented investments.Seed capital: Initial JPMorgan capital invested in products, such as mutual funds, with the intention of ensuring the fund is of sufficient size to represent a viable offering to clients, enabling pricing of its shares, and allowing the manager to develop a track record. After these goals are achieved, the intent is to remove the Firm's capital from the investment.Shelf securities: Securities registered with the SEC under a shelf registration statement that have not been issued, offered or sold. These securities are not included in league tables until they have actually been issued.Single-name: Single reference-entitiesSLR: Supplementary leverage ratio SMBS: Stripped mortgage-backed securities SOFR: Secured Overnight Financing RateSPEs: Special purpose entities Stock Plan Administration: Relates to an equity plan administration business which was acquired in 2022 with the Firm's purchase of Global Shares.Structural interest rate risk: Represents interest rate risk of the non-trading assets and liabilities of the Firm.Structured notes: Structured notes are financial instruments whose cash flows are linked to the movement in one or more indexes, interest rates, foreign exchange rates, commodities prices, prepayment rates, underlying reference pool of loans or other market variables. The notes typically contain embedded (but not separable or detachable) derivatives. Contractual cash flows for principal, interest, or both can vary in amount and timing throughout the life of the note based on non-traditional indexes or non-traditional uses of traditional interest rates or indexes. Suspended foreclosures: Loans referred to foreclosure where formal foreclosure proceedings have started but are currently on hold, which could be due to bankruptcy or loss mitigation. Includes both judicial and non-judicial states. Taxable-equivalent basis: In presenting results on a managed basis, the total net revenue for each of the reportable business segments and Corporate, and the Firm as a whole, is presented on a tax-equivalent basis. Accordingly, revenue from investments that receive tax credits and tax-exempt securities is presented in managed basis results on a level comparable to taxable investments and securities; the corresponding income tax impact related to tax-exempt items is recorded within income tax expense. PSU(s): Performance share units Regulatory VaR: Daily aggregated VaR calculated in accordance with regulatory rules.REO: Real estate owned Reported basis: Financial statements prepared under U.S. GAAP, which excludes the impact of taxable-equivalent adjustments. Retained loans: Loans that are held-for-investment (i.e., excludes loans held-for-sale and loans at fair value). Revenue wallet: Proportion of fee revenue based on estimates of investment banking fees generated across the industry (i.e., the revenue wallet) from investment banking transactions in M&A, equity and debt underwriting, and loan syndications. Source: Dealogic, a third-party provider of investment banking competitive analysis and volume-based league tables for the above noted industry products.RHS: Rural Housing Service of the U.S. Department of Agriculture ROA: Return on assetsROE: Return on equityROTCE: Return on tangible common equityROU assets: Right-of-use assets RSU(s): Restricted stock units RWA "Risk-weighted assets": Basel III establishes two comprehensive approaches for calculating RWA (a Standardized approach and an Advanced approach) which include capital requirements for credit risk, market risk, and in the case of Advanced, also operational risk. Key differences in the calculation of credit risk RWA between the Standardized and Advanced approaches are that for Advanced, credit risk RWA is based on risk-sensitive approaches which largely rely on the use of internal credit models and parameters, whereas for Standardized, credit risk RWA is generally based on supervisory risk-weightings which vary primarily by counterparty type and asset class. Market risk RWA is calculated on a generally consistent basis between Standardized and Advanced. S&P: Standard and Poor's SAR as it pertains to Hong Kong: Special Administrative RegionSAR(s) as it pertains to employee stock awards: Stock appreciation rights SCB: Stress capital bufferScored portfolios: Consumer loan portfolios that predominantly include residential real estate loans, credit card loans, auto loans to individuals and certain small business loans. SEC: U.S. Securities and Exchange Commission PSU(s): Performance share units Regulatory VaR: Daily aggregated VaR calculated in accordance with regulatory rules. REO: Real estate owned Reported basis: Financial statements prepared under U.S. GAAP, which excludes the impact of taxable-equivalent adjustments. Retained loans: Loans that are held-for-investment (i.e., excludes loans held-for-sale and loans at fair value). Revenue wallet: Proportion of fee revenue based on estimates of investment banking fees generated across the industry (i.e., the revenue wallet) from investment banking transactions in M&A, equity and debt underwriting, and loan syndications. Source: Dealogic, a third-party provider of investment banking competitive analysis and volume-based league tables for the above noted industry products. RHS: Rural Housing Service of the U.S. Department of Agriculture ROA: Return on assets ROE: Return on equity ROTCE: Return on tangible common equity ROU assets: Right-of-use assets RSU(s): Restricted stock units RWA "Risk-weighted assets": Basel III establishes two comprehensive approaches for calculating RWA (a Standardized approach and an Advanced approach) which include capital requirements for credit risk, market risk, and in the case of Advanced, also operational risk. Key differences in the calculation of credit risk RWA between the Standardized and Advanced approaches are that for Advanced, credit risk RWA is based on risk-sensitive approaches which largely rely on the use of internal credit models and parameters, whereas for Standardized, credit risk RWA is generally based on supervisory risk-weightings which vary primarily by counterparty type and asset class. Market risk RWA is calculated on a generally consistent basis between Standardized and Advanced. S&P: Standard and Poor's SAR as it pertains to Hong Kong: Special Administrative Region SAR(s) as it pertains to employee stock awards: Stock appreciation rights SCB: Stress capital buffer Scored portfolios: Consumer loan portfolios that predominantly include residential real estate loans, credit card loans, auto loans to individuals and certain small business loans. SEC: U.S. Securities and Exchange Commission Securities financing agreements: Include resale, repurchase, securities borrowed and securities loaned agreements. Securitized Products Group: Comprised of Securitized Products and tax-oriented investments.Seed capital: Initial JPMorgan capital invested in products, such as mutual funds, with the intention of ensuring the fund is of sufficient size to represent a viable offering to clients, enabling pricing of its shares, and allowing the manager to develop a track record. After these goals are achieved, the intent is to remove the Firm's capital from the investment.Shelf securities: Securities registered with the SEC under a shelf registration statement that have not been issued, offered or sold. These securities are not included in league tables until they have actually been issued.Single-name: Single reference-entitiesSLR: Supplementary leverage ratio SMBS: Stripped mortgage-backed securities SOFR: Secured Overnight Financing RateSPEs: Special purpose entities Stock Plan Administration: Relates to an equity plan administration business which was acquired in 2022 with the Firm's purchase of Global Shares.Structural interest rate risk: Represents interest rate risk of the non-trading assets and liabilities of the Firm.Structured notes: Structured notes are financial instruments whose cash flows are linked to the movement in one or more indexes, interest rates, foreign exchange rates, commodities prices, prepayment rates, underlying reference pool of loans or other market variables. The notes typically contain embedded (but not separable or detachable) derivatives. Contractual cash flows for principal, interest, or both can vary in amount and timing throughout the life of the note based on non-traditional indexes or non-traditional uses of traditional interest rates or indexes. Suspended foreclosures: Loans referred to foreclosure where formal foreclosure proceedings have started but are currently on hold, which could be due to bankruptcy or loss mitigation. Includes both judicial and non-judicial states. Taxable-equivalent basis: In presenting results on a managed basis, the total net revenue for each of the reportable business segments and Corporate, and the Firm as a whole, is presented on a tax-equivalent basis. Accordingly, revenue from investments that receive tax credits and tax-exempt securities is presented in managed basis results on a level comparable to taxable investments and securities; the corresponding income tax impact related to tax-exempt items is recorded within income tax expense. Securities financing agreements: Include resale, repurchase, securities borrowed and securities loaned agreements. Securitized Products Group: Comprised of Securitized Products and tax-oriented investments. Seed capital: Initial JPMorgan capital invested in products, such as mutual funds, with the intention of ensuring the fund is of sufficient size to represent a viable offering to clients, enabling pricing of its shares, and allowing the manager to develop a track record. After these goals are achieved, the intent is to remove the Firm's capital from the investment. Shelf securities: Securities registered with the SEC under a shelf registration statement that have not been issued, offered or sold. These securities are not included in league tables until they have actually been issued. Single-name: Single reference-entities SLR: Supplementary leverage ratio SMBS: Stripped mortgage-backed securities SOFR: Secured Overnight Financing Rate SPEs: Special purpose entities Stock Plan Administration: Relates to an equity plan administration business which was acquired in 2022 with the Firm's purchase of Global Shares. Structural interest rate risk: Represents interest rate risk of the non-trading assets and liabilities of the Firm. Structured notes: Structured notes are financial instruments whose cash flows are linked to the movement in one or more indexes, interest rates, foreign exchange rates, commodities prices, prepayment rates, underlying reference pool of loans or other market variables. The notes typically contain embedded (but not separable or detachable) derivatives. Contractual cash flows for principal, interest, or both can vary in amount and timing throughout the life of the note based on non-traditional indexes or non-traditional uses of traditional interest rates or indexes. Suspended foreclosures: Loans referred to foreclosure where formal foreclosure proceedings have started but are currently on hold, which could be due to bankruptcy or loss mitigation. Includes both judicial and non-judicial states. Taxable-equivalent basis: In presenting results on a managed basis, the total net revenue for each of the reportable business segments and Corporate, and the Firm as a whole, is presented on a tax-equivalent basis. Accordingly, revenue from investments that receive tax credits and tax-exempt securities is presented in managed basis results on a level comparable to taxable investments and securities; the corresponding income tax impact related to tax-exempt items is recorded within income tax expense. 326JPMorgan Chase & Co./2025 Form 10-K 326JPMorgan Chase & Co./2025 Form 10-K 326JPMorgan Chase & Co./2025 Form 10-K 326 JPMorgan Chase & Co./2025 Form 10-K --- ## Removed Risk: JPMorganChase's operations and financial results can be negatively impacted in jurisdictions with less predictable legal and regulatory frameworks. *This risk factor was present in the 2025 filing and has been removed.* JPMorganChase conducts existing and new business in certain countries, states, municipalities, territories and other jurisdictions in which the application of the rule of law is inconsistent, extralegal or less predictable, including with respect to: •the absence of a statutory or regulatory basis or guidance for engaging in specific types of business or transactions •conflicting or ambiguous laws, rules, regulations and judicial orders, or the inconsistent application or interpretation of existing laws, rules, regulations and judicial precedents •actions by or at the direction of government officials or agencies •uncertainty concerning the enforceability of intellectual property rights or contractual or other obligations •difficulty in competing in economies in which the government controls or protects all or a portion of the local economy or specific businesses, or where graft or corruption may be pervasive •the threat of regulatory investigations, civil litigations or criminal prosecutions that are arbitrary or otherwise contrary to established legal principles in other parts of the world, and 13 13 13 13 Part I Part I •the termination of licenses required to operate in the local market or the suspension of business relationships with governmental bodies.If the application of the laws, rules, regulations and judicial precedents in any jurisdiction is susceptible to producing outcomes that are inconsistent, unexpected or contrary to established legal principles, this can create a more difficult environment in which JPMorganChase conducts its business and could negatively affect JPMorganChase's operations and reduce its earnings with respect to that jurisdiction. For example, JPMorganChase has faced actual and threatened litigation in Russia with respect to payments that JPMorganChase cannot make under, and is contractually excused from paying as a result of, relevant economic sanctions laws. That litigation has also resulted in the seizure of assets. In addition, conducting business in jurisdictions with less predictable legal and regulatory frameworks could require JPMorganChase to devote significant additional resources to understanding local laws, rules and regulations, as well as structuring its operations to comply with local laws, rules and regulations and implementing and administering related internal policies and procedures.There can be no assurance that JPMorganChase will always be successful in its efforts to fully understand and to conduct its business in compliance with the laws, rules and regulations of all of the jurisdictions in which it operates, and the risk of non-compliance, or of interference with JPMorganChase's businesses, can be greater in jurisdictions that have less predictable legal and regulatory frameworks.JPMorganChase's businesses may be negatively impacted by governmental policies that either discourage or penalize business with certain industries or require specific business practices.JPMorganChase's businesses and results of operations may be adversely affected by actions or initiatives by national, state or local governmental authorities that:•seek to discourage financial institutions from doing business with companies engaged in certain industries, or conversely, to penalize financial institutions that elect not to do business with such companies, or•mandate specific business practices that companies operating in the relevant jurisdiction must adopt.Because governmental policies in one jurisdiction may differ or conflict with those in other jurisdictions, JPMorganChase may face negative consequences regardless of the course of action it takes or elects not to take, including:•restrictions or prohibitions on doing business within a particular jurisdiction, or with governmental entities in a jurisdiction•the threat of enforcement actions, including under antitrust or other anti-competition laws, rules and regulations, and•harm to its reputation arising from public criticism, including from politicians, activists and other stakeholders.JPMorganChase has been prohibited from engaging in certain business activities in specific jurisdictions as a result of these types of governmental actions, and there is no assurance that it will not face similar restrictions on its business and operations in the future.Requirements for the orderly resolution of JPMorganChase could result in JPMorganChase having to restructure or reorganize its businesses and could increase its funding or operational costs or curtail its businesses.JPMorganChase is required under Federal Reserve and FDIC rules to prepare and submit periodically to those agencies a detailed plan for rapid and orderly resolution in bankruptcy, without extraordinary government support, in the event of material financial distress or failure. The evaluation of JPMorganChase's resolution plan by these agencies may change, and the requirements for resolution plans may be modified from time to time. Any such determinations or modifications could result in JPMorganChase needing to make changes to its legal entity structure or to certain internal or external activities, which could increase its funding or operational costs, or hamper its ability to serve clients and customers.If the Federal Reserve and the FDIC were both to determine that a resolution plan submitted by JPMorganChase has deficiencies, they could jointly impose more stringent capital, leverage or liquidity requirements or restrictions on JPMorganChase's growth, activities or operations. The agencies could also require that JPMorganChase restructure, reorganize or divest assets or businesses in ways that could materially and adversely affect JPMorganChase's operations and strategy. Holders of JPMorgan Chase & Co.'s debt and equity securities will absorb losses if it were to enter into a resolution.Federal Reserve rules require that JPMorgan Chase & Co. (the "Parent Company") maintain minimum levels of unsecured external long-term debt and other loss-absorbing capacity with specific terms ("eligible LTD") for purposes of recapitalizing JPMorganChase's operating subsidiaries if the Parent Company were to enter into a resolution either: •in a bankruptcy proceeding under Chapter 11 of the U.S. Bankruptcy Code, or •in a receivership administered by the FDIC under Title II of the Dodd-Frank Act ("Title II"). •the termination of licenses required to operate in the local market or the suspension of business relationships with governmental bodies.If the application of the laws, rules, regulations and judicial precedents in any jurisdiction is susceptible to producing outcomes that are inconsistent, unexpected or contrary to established legal principles, this can create a more difficult environment in which JPMorganChase conducts its business and could negatively affect JPMorganChase's operations and reduce its earnings with respect to that jurisdiction. For example, JPMorganChase has faced actual and threatened litigation in Russia with respect to payments that JPMorganChase cannot make under, and is contractually excused from paying as a result of, relevant economic sanctions laws. That litigation has also resulted in the seizure of assets. In addition, conducting business in jurisdictions with less predictable legal and regulatory frameworks could require JPMorganChase to devote significant additional resources to understanding local laws, rules and regulations, as well as structuring its operations to comply with local laws, rules and regulations and implementing and administering related internal policies and procedures.There can be no assurance that JPMorganChase will always be successful in its efforts to fully understand and to conduct its business in compliance with the laws, rules and regulations of all of the jurisdictions in which it operates, and the risk of non-compliance, or of interference with JPMorganChase's businesses, can be greater in jurisdictions that have less predictable legal and regulatory frameworks.JPMorganChase's businesses may be negatively impacted by governmental policies that either discourage or penalize business with certain industries or require specific business practices.JPMorganChase's businesses and results of operations may be adversely affected by actions or initiatives by national, state or local governmental authorities that:•seek to discourage financial institutions from doing business with companies engaged in certain industries, or conversely, to penalize financial institutions that elect not to do business with such companies, or•mandate specific business practices that companies operating in the relevant jurisdiction must adopt.Because governmental policies in one jurisdiction may differ or conflict with those in other jurisdictions, JPMorganChase may face negative consequences regardless of the course of action it takes or elects not to take, including:•restrictions or prohibitions on doing business within a particular jurisdiction, or with governmental entities in a jurisdiction •the termination of licenses required to operate in the local market or the suspension of business relationships with governmental bodies. If the application of the laws, rules, regulations and judicial precedents in any jurisdiction is susceptible to producing outcomes that are inconsistent, unexpected or contrary to established legal principles, this can create a more difficult environment in which JPMorganChase conducts its business and could negatively affect JPMorganChase's operations and reduce its earnings with respect to that jurisdiction. For example, JPMorganChase has faced actual and threatened litigation in Russia with respect to payments that JPMorganChase cannot make under, and is contractually excused from paying as a result of, relevant economic sanctions laws. That litigation has also resulted in the seizure of assets. In addition, conducting business in jurisdictions with less predictable legal and regulatory frameworks could require JPMorganChase to devote significant additional resources to understanding local laws, rules and regulations, as well as structuring its operations to comply with local laws, rules and regulations and implementing and administering related internal policies and procedures. There can be no assurance that JPMorganChase will always be successful in its efforts to fully understand and to conduct its business in compliance with the laws, rules and regulations of all of the jurisdictions in which it operates, and the risk of non-compliance, or of interference with JPMorganChase's businesses, can be greater in jurisdictions that have less predictable legal and regulatory frameworks. --- ## Removed Risk: Requirements for the orderly resolution of JPMorganChase could result in JPMorganChase having to restructure or reorganize its businesses and could increase its funding or operational costs or curtail its businesses. *This risk factor was present in the 2025 filing and has been removed.* JPMorganChase is required under Federal Reserve and FDIC rules to prepare and submit periodically to those agencies a detailed plan for rapid and orderly resolution in bankruptcy, without extraordinary government support, in the event of material financial distress or failure. The evaluation of JPMorganChase's resolution plan by these agencies may change, and the requirements for resolution plans may be modified from time to time. Any such determinations or modifications could result in JPMorganChase needing to make changes to its legal entity structure or to certain internal or external activities, which could increase its funding or operational costs, or hamper its ability to serve clients and customers. If the Federal Reserve and the FDIC were both to determine that a resolution plan submitted by JPMorganChase has deficiencies, they could jointly impose more stringent capital, leverage or liquidity requirements or restrictions on JPMorganChase's growth, activities or operations. The agencies could also require that JPMorganChase restructure, reorganize or divest assets or businesses in ways that could materially and adversely affect JPMorganChase's operations and strategy. --- ## Removed Risk: JPMorganChase may suffer losses if the value of collateral declines in stressed market conditions. *This risk factor was present in the 2025 filing and has been removed.* During periods of market stress or illiquidity, JPMorganChase's credit risk may be further increased when: •JPMorganChase fails to realize the estimated value of the collateral it holds •collateral is liquidated at prices that are not sufficient to recover the full amount owed to it, or •counterparties are unable to post collateral, whether for operational or other reasons. Furthermore, disputes with counterparties concerning the valuation of collateral may increase in times of significant market stress, volatility or illiquidity, and JPMorganChase could suffer losses during these periods if it is unable to realize the fair value of collateral or to manage declines in the value of collateral. --- ## Removed Risk: Data quality is essential to JPMorganChase's business and operations, and if JPMorganChase fails to maintain adequate data management processes, this could adversely affect its ability to effectively manage its businesses, comply with applicable laws, rules and regulations, or remain competitive. *This risk factor was present in the 2025 filing and has been removed.* JPMorganChase relies on accurate, timely and complete data to effectively operate its systems and processes, including: •assessing risk exposures and limits •monitoring and detecting fraudulent transactions and cyber threats •developing or maintaining models and other analytical and judgment-based estimations, including those that use machine learning or artificial intelligence •implementing and maintaining compliance programs, and •preparing financial statements, disclosures and regulatory reports, as well as internal reporting Any deficiencies in JPMorganChase's data management processes, including with respect to the accuracy or completeness of data, the timeliness of data collection, the analysis or validation of data, or the safeguarding of data could undermine the reliability and effectiveness of its operations, including: •risk management practices, including inaccurate or untimely risk reporting •delivery of regulatory reporting or internal or external financial reporting •compliance practices, such as those relating to transaction monitoring, customer screening, blocking and rejecting transactions, recordkeeping or reporting •business activities, such as those related to managing JPMorganChase's market-making positions and liquidity and capital levels, including reliance on timely data for informed decision-making •providing services to clients and customers, including transaction processing, lending services, account management and customer support, or •fraud detection and prevention processes. Any or all of these factors could impair the ability of JPMorganChase to make sound business decisions, cause it to incur higher operational and compliance costs, result in operational breakdowns or failure to meet its regulatory requirements, negatively affect clients and customers, or lead to reputational harm. --- ## Removed Risk: JPMorganChase's risk management framework and control environment will not be effective in identifying and mitigating every risk to JPMorganChase. *This risk factor was present in the 2025 filing and has been removed.* Any inadequacy or lapse in JPMorganChase's risk management framework, governance structure, practices, models or reporting systems, or in its control environment, could expose it to unexpected losses, and its financial condition or results of operations could be materially and adversely affected. Any such inadequacy or lapse could: •hinder the timely escalation of material risk issues to JPMorganChase's senior management and Board of Directors •lead to business decisions that have negative outcomes for JPMorganChase •require significant resources and time to remediate •lead to non-compliance with laws, rules and regulations •attract heightened regulatory scrutiny •expose JPMorganChase to litigation, regulatory investigations or regulatory fines, penalties or other sanctions •lead to potential harm to customers and clients, and any liability associated with that harm •harm its reputation, or •otherwise diminish confidence in JPMorganChase. Many of JPMorganChase's risk management strategies and techniques consider historical market behavior and to some degree are based on management's subjective judgment or assumptions. For example, many models used by JPMorganChase are based on assumptions regarding historical correlations among prices of various asset classes or other market indicators. In times of market stress, including difficult or less liquid market environments, or in the event of other unforeseen circumstances, previously uncorrelated indicators may become correlated. Conversely, previously-correlated indicators may become uncorrelated at those times. Sudden market movements and unanticipated market or economic events could, in some circumstances, limit the effectiveness of JPMorganChase's risk management strategies, causing it to incur losses.JPMorganChase could recognize unexpected losses, its capital levels could be reduced and it could face greater regulatory scrutiny if its models, estimations or judgments, including those used in its financial statements, are inadequate or incorrect.JPMorganChase has developed and uses a variety of models and other analytical and judgment-based estimations to measure, monitor and implement controls over its market, credit, capital, liquidity, operational and other risks. JPMorganChase also uses internal models and estimations as a basis for its stress testing and in connection with the preparation of its financial statements under U.S. generally accepted accounting principles ("U.S. GAAP"). These models and estimations are based on a variety of assumptions and historical trends, and are periodically reviewed and modified as necessary. The models and estimations that JPMorganChase uses, including those that use machine learning or artificial intelligence, may not be effective in all cases to identify, observe and mitigate risk due to a variety of factors, such as:•reliance on historical trends that may not persist in the future, including assumptions underlying the models and estimations such as correlations among certain market indicators or asset prices•inherent limitations associated with forecasting uncertain economic and financial outcomes•historical trend information may be incomplete, or may not be indicative of severely negative market conditions such as extreme volatility, dislocation or lack of liquidity•sudden illiquidity in markets or declines in prices of certain loans and securities may make it more difficult to value certain financial instruments•technology that is introduced to run models or estimations may not perform as expected, or may not be well understood by the personnel using the technology•models and estimations may contain erroneous data, valuations, formulas or algorithms•review processes may fail to detect flaws in models and estimations, and correlations among prices of various asset classes or other market indicators. In times of market stress, including difficult or less liquid market environments, or in the event of other unforeseen circumstances, previously uncorrelated indicators may become correlated. Conversely, previously-correlated indicators may become uncorrelated at those times. Sudden market movements and unanticipated market or economic events could, in some circumstances, limit the effectiveness of JPMorganChase's risk management strategies, causing it to incur losses. --- ## Removed Risk: Conduct failure by JPMorganChase employees can harm clients and customers, impact market integrity, damage JPMorganChase's reputation and trigger litigation and regulatory action. *This risk factor was present in the 2025 filing and has been removed.* JPMorganChase's employees interact with clients, customers, counterparties and other market and industry participants, and with each other, every day. All employees are expected to demonstrate values and exhibit the behaviors that are an integral part of JPMorganChase's Code of Conduct and Business Principles. JPMorganChase endeavors to embed conduct risk management throughout an employee's life cycle, including recruiting, onboarding, training and development, and performance management. Conduct risk management is also an integral component of JPMorganChase's promotion and compensation processes. Notwithstanding these expectations, policies and practices, certain employees have engaged in improper or illegal conduct in the past. These instances of misconduct have resulted in litigation, and resolutions of governmental investigations or enforcement actions involving consent orders, deferred prosecution agreements, non-prosecution agreements and other civil or criminal sanctions. There is no assurance that further inappropriate or unlawful actions by employees have not occurred or will not occur, lead to a violation of the terms of these resolutions (and associated consequences), or that any such actions will always be detected, deterred or prevented. JPMorganChase's reputation could be harmed by, and collateral consequences could result from, a failure by 32 32 32 32 one or more employees to conduct themselves in accordance with JPMorganChase's expectations, policies and practices, including by acting in ways that harm clients, customers, other market participants, employees or others. Some examples of this include:•improperly selling and marketing JPMorganChase's products or services•engaging in insider trading, market manipulation or unauthorized trading•engaging in improper or fraudulent behavior in connection with government relief programs•facilitating a transaction where a material objective is to achieve a particular tax, accounting or financial disclosure treatment that may be subject to scrutiny by governmental or regulatory authorities, or where the proposed treatment is unclear or may not reflect the economic substance of the transaction•failing to fulfill fiduciary obligations or other duties owed to clients or customers•violating antitrust or anti-competition laws by colluding with other market participants•using electronic communications channels that have not been approved by JPMorganChase•engaging in discriminatory behavior or harassment with respect to clients, customers or employees, or acting contrary to JPMorganChase's goal of fostering an inclusive workplace•managing or reporting risks in ways that subordinate JPMorganChase's risk appetite to business performance goals or employee compensation objectives, and•misappropriating property, confidential or proprietary information, or technology assets belonging to JPMorganChase, its clients and customers or third parties.The consequences of any failure by one or more employees to conduct themselves in accordance with JPMorganChase's expectations, policies or practices could include litigation, or regulatory or other governmental investigations or enforcement actions. Any of these proceedings or actions could result in judgments, settlements, fines, penalties or other sanctions, or lead to:•financial losses•increased operational and compliance costs•greater scrutiny by regulators and other parties•regulatory actions that require JPMorganChase to restructure, curtail or cease certain of its activities•the need for significant oversight by JPMorganChase's management•loss of clients or customers, and•harm to JPMorganChase's reputation.The foregoing risks could be heightened with respect to newly-acquired businesses if JPMorganChase fails to successfully integrate employees of those businesses or any of those employees do not conduct themselves in accordance with JPMorganChase's expectations, policies and practices.ReputationDamage to JPMorganChase's reputation could harm its businesses.Maintaining trust in JPMorganChase is critical to its ability to attract and retain clients, customers, investors and employees. Damage to JPMorganChase's reputation can therefore cause significant harm to JPMorganChase's business and prospects, and can arise from numerous sources, including:•employee misconduct, including discriminatory behavior or harassment with respect to clients, customers or employees, or actions that are contrary to JPMorganChase's goal of fostering an inclusive workplace•security breaches, including as a result of cyber attacks•failure to safeguard client, customer or employee information•failure to manage risks associated with its client relationships, or with transactions or business activities in which JPMorganChase or its clients engage, including transactions or activities that may be unpopular among one or more constituencies•rapid and broad dissemination of misinformation and disinformation across the media landscape, including social networking sites•incorrect, biased or misleading results or content generated by artificial intelligence, leading to harmful outcomes, including discrimination in lending practices against vulnerable populations, fraud, manipulation of customers, privacy breaches or intellectual property infringement•deficiencies or perceived failures in managing ESG-related initiatives, including modifying or failing to meet publicly-announced targets•operational failures•litigation or regulatory fines, penalties or other sanctions •actions taken in executing regulatory and governmental requirements during a global or regional health emergency, spread of infectious disease, epidemic or pandemic•regulatory investigations or enforcement actions, or resolutions of these matters, and •failure or perceived failure to comply with laws, rules or regulations by JPMorganChase or its clients, one or more employees to conduct themselves in accordance with JPMorganChase's expectations, policies and practices, including by acting in ways that harm clients, customers, other market participants, employees or others. Some examples of this include:•improperly selling and marketing JPMorganChase's products or services•engaging in insider trading, market manipulation or unauthorized trading•engaging in improper or fraudulent behavior in connection with government relief programs•facilitating a transaction where a material objective is to achieve a particular tax, accounting or financial disclosure treatment that may be subject to scrutiny by governmental or regulatory authorities, or where the proposed treatment is unclear or may not reflect the economic substance of the transaction•failing to fulfill fiduciary obligations or other duties owed to clients or customers•violating antitrust or anti-competition laws by colluding with other market participants•using electronic communications channels that have not been approved by JPMorganChase•engaging in discriminatory behavior or harassment with respect to clients, customers or employees, or acting contrary to JPMorganChase's goal of fostering an inclusive workplace•managing or reporting risks in ways that subordinate JPMorganChase's risk appetite to business performance goals or employee compensation objectives, and•misappropriating property, confidential or proprietary information, or technology assets belonging to JPMorganChase, its clients and customers or third parties.The consequences of any failure by one or more employees to conduct themselves in accordance with JPMorganChase's expectations, policies or practices could include litigation, or regulatory or other governmental investigations or enforcement actions. Any of these proceedings or actions could result in judgments, settlements, fines, penalties or other sanctions, or lead to:•financial losses•increased operational and compliance costs•greater scrutiny by regulators and other parties•regulatory actions that require JPMorganChase to restructure, curtail or cease certain of its activities•the need for significant oversight by JPMorganChase's management•loss of clients or customers, and•harm to JPMorganChase's reputation. one or more employees to conduct themselves in accordance with JPMorganChase's expectations, policies and practices, including by acting in ways that harm clients, customers, other market participants, employees or others. Some examples of this include: •improperly selling and marketing JPMorganChase's products or services •engaging in insider trading, market manipulation or unauthorized trading •engaging in improper or fraudulent behavior in connection with government relief programs •facilitating a transaction where a material objective is to achieve a particular tax, accounting or financial disclosure treatment that may be subject to scrutiny by governmental or regulatory authorities, or where the proposed treatment is unclear or may not reflect the economic substance of the transaction •failing to fulfill fiduciary obligations or other duties owed to clients or customers •violating antitrust or anti-competition laws by colluding with other market participants •using electronic communications channels that have not been approved by JPMorganChase •engaging in discriminatory behavior or harassment with respect to clients, customers or employees, or acting contrary to JPMorganChase's goal of fostering an inclusive workplace •managing or reporting risks in ways that subordinate JPMorganChase's risk appetite to business performance goals or employee compensation objectives, and •misappropriating property, confidential or proprietary information, or technology assets belonging to JPMorganChase, its clients and customers or third parties. The consequences of any failure by one or more employees to conduct themselves in accordance with JPMorganChase's expectations, policies or practices could include litigation, or regulatory or other governmental investigations or enforcement actions. Any of these proceedings or actions could result in judgments, settlements, fines, penalties or other sanctions, or lead to: •financial losses •increased operational and compliance costs •greater scrutiny by regulators and other parties •regulatory actions that require JPMorganChase to restructure, curtail or cease certain of its activities •the need for significant oversight by JPMorganChase's management •loss of clients or customers, and •harm to JPMorganChase's reputation. The foregoing risks could be heightened with respect to newly-acquired businesses if JPMorganChase fails to successfully integrate employees of those businesses or any of those employees do not conduct themselves in accordance with JPMorganChase's expectations, policies and practices.ReputationDamage to JPMorganChase's reputation could harm its businesses.Maintaining trust in JPMorganChase is critical to its ability to attract and retain clients, customers, investors and employees. Damage to JPMorganChase's reputation can therefore cause significant harm to JPMorganChase's business and prospects, and can arise from numerous sources, including:•employee misconduct, including discriminatory behavior or harassment with respect to clients, customers or employees, or actions that are contrary to JPMorganChase's goal of fostering an inclusive workplace•security breaches, including as a result of cyber attacks•failure to safeguard client, customer or employee information•failure to manage risks associated with its client relationships, or with transactions or business activities in which JPMorganChase or its clients engage, including transactions or activities that may be unpopular among one or more constituencies•rapid and broad dissemination of misinformation and disinformation across the media landscape, including social networking sites•incorrect, biased or misleading results or content generated by artificial intelligence, leading to harmful outcomes, including discrimination in lending practices against vulnerable populations, fraud, manipulation of customers, privacy breaches or intellectual property infringement•deficiencies or perceived failures in managing ESG-related initiatives, including modifying or failing to meet publicly-announced targets•operational failures•litigation or regulatory fines, penalties or other sanctions •actions taken in executing regulatory and governmental requirements during a global or regional health emergency, spread of infectious disease, epidemic or pandemic•regulatory investigations or enforcement actions, or resolutions of these matters, and •failure or perceived failure to comply with laws, rules or regulations by JPMorganChase or its clients, The foregoing risks could be heightened with respect to newly-acquired businesses if JPMorganChase fails to successfully integrate employees of those businesses or any of those employees do not conduct themselves in accordance with JPMorganChase's expectations, policies and practices. Reputation --- ## Removed Risk: Damage to JPMorganChase's reputation could harm its businesses. *This risk factor was present in the 2025 filing and has been removed.* Maintaining trust in JPMorganChase is critical to its ability to attract and retain clients, customers, investors and employees. Damage to JPMorganChase's reputation can therefore cause significant harm to JPMorganChase's business and prospects, and can arise from numerous sources, including: •employee misconduct, including discriminatory behavior or harassment with respect to clients, customers or employees, or actions that are contrary to JPMorganChase's goal of fostering an inclusive workplace •security breaches, including as a result of cyber attacks •failure to safeguard client, customer or employee information •failure to manage risks associated with its client relationships, or with transactions or business activities in which JPMorganChase or its clients engage, including transactions or activities that may be unpopular among one or more constituencies •rapid and broad dissemination of misinformation and disinformation across the media landscape, including social networking sites •incorrect, biased or misleading results or content generated by artificial intelligence, leading to harmful outcomes, including discrimination in lending practices against vulnerable populations, fraud, manipulation of customers, privacy breaches or intellectual property infringement •deficiencies or perceived failures in managing ESG-related initiatives, including modifying or failing to meet publicly-announced targets •operational failures •litigation or regulatory fines, penalties or other sanctions •actions taken in executing regulatory and governmental requirements during a global or regional health emergency, spread of infectious disease, epidemic or pandemic •regulatory investigations or enforcement actions, or resolutions of these matters, and •failure or perceived failure to comply with laws, rules or regulations by JPMorganChase or its clients, 33 33 33 33 Part I Part I customers, counterparties or other parties, including newly-acquired businesses, companies in which JPMorganChase has made principal investments, parties to joint ventures with JPMorganChase, and vendors with which JPMorganChase does business.Social and environmental activists have been targeting JPMorganChase and other financial services firms with public criticism concerning their business practices, including business relationships with clients that are engaged in certain sensitive industries, such as companies:•whose products are or are perceived to be harmful to human health, or•whose activities negatively affect or are perceived to negatively affect the environment, workers' rights or communities. Activists have also taken actions intended to change or influence JPMorganChase's business practices with respect to ESG matters, including public protests at JPMorganChase's headquarters and other properties, and submitting specific ESG-related proposals for a vote by JPMorganChase's shareholders.In addition, JPMorganChase has been and expects that it will continue to be criticized by activists, politicians and other members of the public concerning business practices or positions taken by JPMorganChase with respect to matters of public policy (such as diversity, equity and inclusion initiatives) or regarding transactions or other business or interactions between JPMorganChase and governmental or regulatory bodies. Furthermore, JPMorganChase's relationships or ability to transact with clients and customers, and with governmental or regulatory bodies in jurisdictions in which JPMorganChase does business, could be adversely affected if its decisions with respect to doing business with companies in certain sensitive industries are perceived to harm those companies or to align with particular political viewpoints. The foregoing types of criticism can be more widespread during election years in various jurisdictions, and could have the effect of focusing attention on a company such as JPMorganChase as part of a wider public debate on public policy matters. Furthermore, JPMorganChase's participation in or association with certain environmental and social industry groups or initiatives could be viewed by activists or governmental authorities as boycotting or other discriminatory business behavior.These and other types of criticism and actions directed at JPMorganChase could potentially engender dissatisfaction among clients, customers, investors, employees, government officials and other stakeholders. In all of these cases, JPMorganChase's reputation and its business and results of operations could be harmed by:•greater scrutiny from governmental or regulatory bodies, or further criticism from politicians and other members of the public, including in the form of governmental or regulatory investigations or litigation•unfavorable coverage or commentary in the media, including through social media campaigns•certain clients and customers ceasing doing business with JPMorganChase, and encouraging others to do so•impairment of JPMorganChase's ability to attract new clients and customers, to expand its relationships with existing clients and customers, or to hire or retain employees, or•certain investors opting to divest from investments in securities of JPMorganChase.Actions by the financial services industry generally or individuals in the industry can also affect JPMorganChase's reputation. For example, the reputation of the industry as a whole can be damaged by concerns that:•consumers have been treated unfairly by a financial institution, or•a financial institution has acted inappropriately with respect to the methods used to offer products to customers.If JPMorganChase is perceived to have engaged in these types of behaviors, this could weaken its reputation among clients or customers, employees or other stakeholders.Failure to effectively manage potential conflicts of interest or to satisfy fiduciary obligations can result in litigation and enforcement actions, as well as damage JPMorganChase's reputation.JPMorganChase's ability to manage potential conflicts of interest is highly complex due to the broad range of its business activities which encompass a variety of transactions, obligations and interests with and among JPMorganChase's clients and customers. JPMorganChase can become subject to litigation, enforcement actions, and heightened regulatory scrutiny, and its reputation can be damaged, by the failure or perceived failure to:•adequately address or appropriately disclose conflicts of interest, including potential conflicts of interest that may arise in connection with providing multiple products and services in, or having one or more investments related to, the same transaction•identify and address any conflict of interest that a third party with which it is does business may have with respect to a transaction involving JPMorganChase•deliver appropriate standards of service and quality customers, counterparties or other parties, including newly-acquired businesses, companies in which JPMorganChase has made principal investments, parties to joint ventures with JPMorganChase, and vendors with which JPMorganChase does business.Social and environmental activists have been targeting JPMorganChase and other financial services firms with public criticism concerning their business practices, including business relationships with clients that are engaged in certain sensitive industries, such as companies:•whose products are or are perceived to be harmful to human health, or•whose activities negatively affect or are perceived to negatively affect the environment, workers' rights or communities. Activists have also taken actions intended to change or influence JPMorganChase's business practices with respect to ESG matters, including public protests at JPMorganChase's headquarters and other properties, and submitting specific ESG-related proposals for a vote by JPMorganChase's shareholders.In addition, JPMorganChase has been and expects that it will continue to be criticized by activists, politicians and other members of the public concerning business practices or positions taken by JPMorganChase with respect to matters of public policy (such as diversity, equity and inclusion initiatives) or regarding transactions or other business or interactions between JPMorganChase and governmental or regulatory bodies. Furthermore, JPMorganChase's relationships or ability to transact with clients and customers, and with governmental or regulatory bodies in jurisdictions in which JPMorganChase does business, could be adversely affected if its decisions with respect to doing business with companies in certain sensitive industries are perceived to harm those companies or to align with particular political viewpoints. The foregoing types of criticism can be more widespread during election years in various jurisdictions, and could have the effect of focusing attention on a company such as JPMorganChase as part of a wider public debate on public policy matters. Furthermore, JPMorganChase's participation in or association with certain environmental and social industry groups or initiatives could be viewed by activists or governmental authorities as boycotting or other discriminatory business behavior.These and other types of criticism and actions directed at JPMorganChase could potentially engender dissatisfaction among clients, customers, investors, employees, government officials and other stakeholders. In all of these cases, JPMorganChase's reputation and its business and results of operations could be harmed by: customers, counterparties or other parties, including newly-acquired businesses, companies in which JPMorganChase has made principal investments, parties to joint ventures with JPMorganChase, and vendors with which JPMorganChase does business. Social and environmental activists have been targeting JPMorganChase and other financial services firms with public criticism concerning their business practices, including business relationships with clients that are engaged in certain sensitive industries, such as companies: •whose products are or are perceived to be harmful to human health, or •whose activities negatively affect or are perceived to negatively affect the environment, workers' rights or communities. Activists have also taken actions intended to change or influence JPMorganChase's business practices with respect to ESG matters, including public protests at JPMorganChase's headquarters and other properties, and submitting specific ESG-related proposals for a vote by JPMorganChase's shareholders. In addition, JPMorganChase has been and expects that it will continue to be criticized by activists, politicians and other members of the public concerning business practices or positions taken by JPMorganChase with respect to matters of public policy (such as diversity, equity and inclusion initiatives) or regarding transactions or other business or interactions between JPMorganChase and governmental or regulatory bodies. Furthermore, JPMorganChase's relationships or ability to transact with clients and customers, and with governmental or regulatory bodies in jurisdictions in which JPMorganChase does business, could be adversely affected if its decisions with respect to doing business with companies in certain sensitive industries are perceived to harm those companies or to align with particular political viewpoints. The foregoing types of criticism can be more widespread during election years in various jurisdictions, and could have the effect of focusing attention on a company such as JPMorganChase as part of a wider public debate on public policy matters. Furthermore, JPMorganChase's participation in or association with certain environmental and social industry groups or initiatives could be viewed by activists or governmental authorities as boycotting or other discriminatory business behavior. These and other types of criticism and actions directed at JPMorganChase could potentially engender dissatisfaction among clients, customers, investors, employees, government officials and other stakeholders. In all of these cases, JPMorganChase's reputation and its business and results of operations could be harmed by: •greater scrutiny from governmental or regulatory bodies, or further criticism from politicians and other members of the public, including in the form of governmental or regulatory investigations or litigation•unfavorable coverage or commentary in the media, including through social media campaigns•certain clients and customers ceasing doing business with JPMorganChase, and encouraging others to do so•impairment of JPMorganChase's ability to attract new clients and customers, to expand its relationships with existing clients and customers, or to hire or retain employees, or•certain investors opting to divest from investments in securities of JPMorganChase.Actions by the financial services industry generally or individuals in the industry can also affect JPMorganChase's reputation. For example, the reputation of the industry as a whole can be damaged by concerns that:•consumers have been treated unfairly by a financial institution, or•a financial institution has acted inappropriately with respect to the methods used to offer products to customers.If JPMorganChase is perceived to have engaged in these types of behaviors, this could weaken its reputation among clients or customers, employees or other stakeholders.Failure to effectively manage potential conflicts of interest or to satisfy fiduciary obligations can result in litigation and enforcement actions, as well as damage JPMorganChase's reputation.JPMorganChase's ability to manage potential conflicts of interest is highly complex due to the broad range of its business activities which encompass a variety of transactions, obligations and interests with and among JPMorganChase's clients and customers. JPMorganChase can become subject to litigation, enforcement actions, and heightened regulatory scrutiny, and its reputation can be damaged, by the failure or perceived failure to:•adequately address or appropriately disclose conflicts of interest, including potential conflicts of interest that may arise in connection with providing multiple products and services in, or having one or more investments related to, the same transaction•identify and address any conflict of interest that a third party with which it is does business may have with respect to a transaction involving JPMorganChase•deliver appropriate standards of service and quality •greater scrutiny from governmental or regulatory bodies, or further criticism from politicians and other members of the public, including in the form of governmental or regulatory investigations or litigation •unfavorable coverage or commentary in the media, including through social media campaigns •certain clients and customers ceasing doing business with JPMorganChase, and encouraging others to do so •impairment of JPMorganChase's ability to attract new clients and customers, to expand its relationships with existing clients and customers, or to hire or retain employees, or •certain investors opting to divest from investments in securities of JPMorganChase. Actions by the financial services industry generally or individuals in the industry can also affect JPMorganChase's reputation. For example, the reputation of the industry as a whole can be damaged by concerns that: •consumers have been treated unfairly by a financial institution, or •a financial institution has acted inappropriately with respect to the methods used to offer products to customers. If JPMorganChase is perceived to have engaged in these types of behaviors, this could weaken its reputation among clients or customers, employees or other stakeholders. --- ## Removed Risk: Unfavorable changes in immigration or travel policies could adversely affect JPMorganChase's businesses and operations. *This risk factor was present in the 2025 filing and has been removed.* JPMorganChase relies on the skills, knowledge and expertise of employees located throughout the world. Changes in immigration or travel policies in the U.S. and other countries that unduly restrict or otherwise make it more difficult for employees or their family members to work in, or travel to or transfer between, jurisdictions in which JPMorganChase has operations or conducts its business could inhibit JPMorganChase's ability to attract and retain qualified employees, and thereby dilute the quality of its workforce, or could prompt JPMorganChase to make structural changes to its worldwide or regional operating models that cause its operations to be less efficient or more costly. Legal --- ## Removed Risk: Parts III and IV *This risk factor was present in the 2025 filing and has been removed.* Item 10. Directors, Executive Officers and Corporate Governance. --- ## Removed Risk: Capital ratios(a)(b) *This risk factor was present in the 2025 filing and has been removed.* Total capital NII excluding Markets(c) NIR excluding Markets(c) Markets(c) (a) The ratios reflect the CECL capital transition provisions. Refer to Note 27 for additional information. (b) Reflects the Firm's ratios under the Basel III Standardized approach. Refer to Capital Risk Management on pages 97-107 for additional information. (c) NII and NIR refer to net interest income and noninterest revenue, respectively. Markets consists of CIB's Fixed Income Markets and Equity Markets businesses. Visa shares: On April 8, 2024, Visa Inc. commenced an initial exchange offer for its Class B-1 common shares. On May 6, 2024, the Firm announced that Visa had accepted the Firm's tender of its 37.2 million Visa Class B-1 common shares in exchange for a combination of Visa Class B-2 common shares and Visa Class C common shares ("Visa C shares"), resulting in a $7.9 billion net gain related to Visa shares recorded in the second quarter of 2024. As of September 30, 2024, the Firm had disposed of all of its Visa C shares through sales and through a contribution to the Firm's Foundation. Refer to Market Risk Management on pages 141-149, and Notes 2 and 6 for additional information.First Republic: JPMorganChase acquired certain assets and assumed certain liabilities of First Republic Bank from the FDIC on May 1, 2023. As a result, the year-to-date results include the twelve-month impact of First Republic compared with eight months in the prior-year period. Where meaningful to the results, this is referred to in this Form 10-K as the "timing impact" of First Republic. Refer to Notes 6 and 34 for additional information.Comparisons noted in the sections below are for the full year of 2024 versus the full year of 2023, unless otherwise specified.Firmwide overviewJPMorganChase reported net income of $58.5 billion for 2024, up 18%, earnings per share of $19.75, ROE of 18% and ROTCE of 22%.•Total net revenue was $177.6 billion, up 12%, reflecting: -Net interest income ("NII") of $92.6 billion, up 4%, driven by the impact of balance sheet actions, primarily reinvestments in the investment securities portfolio, higher revolving balances in Card Services, the timing impact of First Republic, higher wholesale deposit balances, and higher Markets net interest income, largely offset by deposit margin compression across the lines of business and lower average deposit balances in CCB. NII excluding Markets was $92.4 billion, up 3%. -Noninterest revenue ("NIR") was $85.0 billion, up 23%, predominantly driven by a $7.9 billion net gain related to Visa shares recorded in the second quarter of 2024, higher asset management fees in AWM and CCB, higher investment banking fees, and lower net investment securities losses in Treasury and CIO.The prior year included the estimated bargain purchase gain of $2.8 billion associated with First Republic. Visa shares: On April 8, 2024, Visa Inc. commenced an initial exchange offer for its Class B-1 common shares. On May 6, 2024, the Firm announced that Visa had accepted the Firm's tender of its 37.2 million Visa Class B-1 common shares in exchange for a combination of Visa Class B-2 common shares and Visa Class C common shares ("Visa C shares"), resulting in a $7.9 billion net gain related to Visa shares recorded in the second quarter of 2024. As of September 30, 2024, the Firm had disposed of all of its Visa C shares through sales and through a contribution to the Firm's Foundation. Refer to Market Risk Management on pages 141-149, and Notes 2 and 6 for additional information. First Republic: JPMorganChase acquired certain assets and assumed certain liabilities of First Republic Bank from the FDIC on May 1, 2023. As a result, the year-to-date results include the twelve-month impact of First Republic compared with eight months in the prior-year period. Where meaningful to the results, this is referred to in this Form 10-K as the "timing impact" of First Republic. Refer to Notes 6 and 34 for additional information. Comparisons noted in the sections below are for the full year of 2024 versus the full year of 2023, unless otherwise specified. --- ## Removed Risk: Full-year 2025 *This risk factor was present in the 2025 filing and has been removed.* •Management expects net interest income to be approximately $94.0 billion and net interest income excluding Markets to be approximately $90.0 billion, market dependent. •Management expects adjusted expense to be approximately $95.0 billion, market dependent. •Management expects the net charge-off rate in Card Services to be approximately 3.60%. Net interest income excluding Markets and adjusted expense are non-GAAP financial measures. Refer to Explanation and Reconciliation of the Firm's Use of Non-GAAP Financial Measures on pages 67-69. JPMorgan Chase & Co./2024 Form 10-K57 JPMorgan Chase & Co./2024 Form 10-K57 JPMorgan Chase & Co./2024 Form 10-K57 JPMorgan Chase & Co./2024 Form 10-K 57 --- ## Removed Risk: Business Developments *This risk factor was present in the 2025 filing and has been removed.* First Republic acquisitionOn May 1, 2023, JPMorganChase acquired certain assets and assumed certain liabilities of First Republic Bank (the "First Republic acquisition") from the Federal Deposit Insurance Corporation ("FDIC"), as receiver. As of December 31, 2024, the Firm had substantially completed the conversion of operations, and the integration of clients, products and services, associated with the First Republic acquisition to align with the Firm's businesses and operations. Refer to Note 34 for additional information on First Republic. First Republic acquisitionOn May 1, 2023, JPMorganChase acquired certain assets and assumed certain liabilities of First Republic Bank (the "First Republic acquisition") from the Federal Deposit Insurance Corporation ("FDIC"), as receiver. As of December 31, 2024, the Firm had substantially completed the conversion of operations, and the integration of clients, products and services, associated with the First Republic acquisition to align with the Firm's businesses and operations. Refer to Note 34 for additional information on First Republic. --- ## Removed Risk: 2024 compared with 2023 *This risk factor was present in the 2025 filing and has been removed.* The effective tax rate increased predominantly driven by: •the adoption of updates to the Accounting for Investments in Tax Credit Structures guidance on January 1, 2024, and •a higher level of pretax income and changes in the mix of income and expenses subject to U.S. federal, state and local taxes, including the impact of the net gain on Visa shares and the contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024. The prior year included the impact to income tax expense associated with the First Republic acquisition that was reflected in the estimated bargain purchase gain, and an income tax benefit related to the finalization of certain income tax regulations, both of which resulted in a reduction in the Firm's effective tax rate. Refer to Note 25 for additional information. 62JPMorgan Chase & Co./2024 Form 10-K 62JPMorgan Chase & Co./2024 Form 10-K 62JPMorgan Chase & Co./2024 Form 10-K 62 JPMorgan Chase & Co./2024 Form 10-K CONSOLIDATED BALANCE SHEETS AND CASH FLOWS ANALYSIS --- ## Removed Risk: Noninterest revenue - reported(c) *This risk factor was present in the 2025 filing and has been removed.* Fully taxable-equivalent adjustments(c) Less: Markets noninterest revenue(b)(d) --- ## Removed Risk: December 31, 2024 *This risk factor was present in the 2025 filing and has been removed.* December 31, 2023 Capital ratio requirements(b) December 31, 2023 Capital ratio requirements(b) --- ## Removed Risk: Tier 1 capital *This risk factor was present in the 2025 filing and has been removed.* Less: Regulatory capital adjustments(a) Total adjusted average assets(b) Add: Off-balance sheet exposures(c) --- ## Removed Risk: Total leverage exposure *This risk factor was present in the 2025 filing and has been removed.* SLR (a)For purposes of calculating the SLR, includes quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 capital, predominantly goodwill, inclusive of estimated equity method goodwill, other intangible assets and adjustments for the CECL capital transition provisions. Refer to Note 27 for additional information on the CECL capital transition. (b)Adjusted average assets used for the calculation of Tier 1 leverage ratio. (c)Off-balance sheet exposures are calculated as the average of the three month-end spot balances on applicable regulatory exposures during the reporting quarter. Refer to the Firm's Pillar 3 Regulatory Capital Disclosures reports for additional information. --- ## Removed Risk: Credit ratings *This risk factor was present in the 2025 filing and has been removed.* The cost and availability of financing are influenced by credit ratings. Reductions in these ratings could have an adverse effect on the Firm's access to liquidity sources, increase the cost of funds, trigger additional collateral or funding requirements and decrease the number of investors and counterparties willing to lend to the Firm. The nature and magnitude of the impact of ratings downgrades depends on numerous contractual and behavioral factors, which the Firm believes are incorporated in its liquidity risk and stress testing metrics. The Firm believes that it maintains sufficient liquidity to withstand a potential decrease in funding capacity due to ratings downgrades.Additionally, the Firm's funding requirements for VIEs and other third-party commitments may be adversely affected by a decline in credit ratings. Refer to Notes 5 and 14 for additional information. The cost and availability of financing are influenced by credit ratings. Reductions in these ratings could have an adverse effect on the Firm's access to liquidity sources, increase the cost of funds, trigger additional collateral or funding requirements and decrease the number of investors and counterparties willing to lend to the Firm. The nature and magnitude of the impact of ratings downgrades depends on numerous contractual and behavioral factors, which the Firm The cost and availability of financing are influenced by credit ratings. Reductions in these ratings could have an adverse effect on the Firm's access to liquidity sources, increase the cost of funds, trigger additional collateral or funding requirements and decrease the number of investors and counterparties willing to lend to the Firm. The nature and magnitude of the impact of ratings downgrades depends on numerous contractual and behavioral factors, which the Firm believes are incorporated in its liquidity risk and stress testing metrics. The Firm believes that it maintains sufficient liquidity to withstand a potential decrease in funding capacity due to ratings downgrades.Additionally, the Firm's funding requirements for VIEs and other third-party commitments may be adversely affected by a decline in credit ratings. Refer to Notes 5 and 14 for additional information. believes are incorporated in its liquidity risk and stress testing metrics. The Firm believes that it maintains sufficient liquidity to withstand a potential decrease in funding capacity due to ratings downgrades. Additionally, the Firm's funding requirements for VIEs and other third-party commitments may be adversely affected by a decline in credit ratings. Refer to Notes 5 and 14 for additional information. The credit ratings of the Parent Company and certain of its principal subsidiaries as of December 31, 2024 were as follows: JPMorgan Chase & Co.JPMorgan Chase Bank, N.A.J.P. Morgan Securities LLC J.P. Morgan Securities plc J.P. Morgan SE(a)December 31, 2024Long-term issuerShort-term issuerOutlookLong-term issuerShort-term issuerOutlookLong-term issuerShort-term issuerOutlookMoody's Investors Service(a)A1P-1PositiveAa2P-1DevelopingAa3P-1PositiveStandard & Poor's(b)AA-1StableAA-A-1+StableAA-A-1+StableFitch RatingsAA-F1+StableAAF1+StableAAF1+Stable J.P. Morgan Securities LLC J.P. Morgan Securities plc J.P. Morgan SE(a) Moody's Investors Service(a) Standard & Poor's(b) (a)On November 11, 2024, Moody's (i) affirmed the credit ratings of the Parent Company, JPMorgan Chase Bank, N.A. and the other subsidiaries listed above; (ii) revised its outlook for the Parent Company, J.P. Morgan Securities LLC and J.P. Morgan Securities plc from stable to positive; (iii) revised its outlook for JPMorgan Chase Bank, N.A. from negative to developing, reflecting its view with respect to possible support from the U.S. government; and (iv) assessed its outlook for J.P. Morgan SE as negative with an "(m)" modifier, reflecting a negative outlook for long-term bank deposits and a positive outlook for the long-term issuer rating. (b)The credit ratings of the Parent Company, JPMorgan Chase Bank, N.A. and the other subsidiaries presented in the table reflect ratings upgrades by Standard & Poor's on November 15, 2024. Standard & Poor's also revised its outlook for the Parent Company and such subsidiaries from positive to stable. JPMorganChase's unsecured debt does not contain requirements that would call for an acceleration of payments, maturities or changes in the structure of the existing debt, provide any limitations on future borrowings or require additional collateral, based on unfavorable changes in the Firm's credit ratings, financial ratios, earnings, or stock price.Critical factors in maintaining high credit ratings include a stable and diverse earnings stream, strong capital and liquidity ratios, strong credit quality and risk management controls, and diverse funding sources. Rating agencies continue to evaluate economic and geopolitical trends, regulatory developments, future profitability, risk management practices, and litigation matters, as well as their broader ratings methodologies. Changes in any of these factors could lead to changes in the Firm's credit ratings. JPMorganChase's unsecured debt does not contain requirements that would call for an acceleration of payments, maturities or changes in the structure of the existing debt, provide any limitations on future borrowings or require additional collateral, based on unfavorable changes in the Firm's credit ratings, financial ratios, earnings, or stock price. JPMorganChase's unsecured debt does not contain requirements that would call for an acceleration of payments, maturities or changes in the structure of the existing debt, provide any limitations on future borrowings or require additional collateral, based on unfavorable changes in the Firm's credit ratings, financial ratios, earnings, or stock price. Critical factors in maintaining high credit ratings include a stable and diverse earnings stream, strong capital and liquidity ratios, strong credit quality and risk management controls, and diverse funding sources. Rating agencies continue to evaluate economic and geopolitical trends, regulatory developments, future profitability, risk management practices, and litigation matters, as well as their broader ratings methodologies. Changes in any of these factors could lead to changes in the Firm's credit ratings. Critical factors in maintaining high credit ratings include a stable and diverse earnings stream, strong capital and liquidity ratios, strong credit quality and risk management controls, and diverse funding sources. Rating agencies continue to evaluate economic and geopolitical trends, regulatory developments, future profitability, risk management practices, and litigation matters, as well as their broader ratings methodologies. Changes in any of these factors could lead to changes in the Firm's credit ratings. JPMorgan Chase & Co./2024 Form 10-K115 JPMorgan Chase & Co./2024 Form 10-K115 JPMorgan Chase & Co./2024 Form 10-K115 JPMorgan Chase & Co./2024 Form 10-K 115 REPUTATION RISK MANAGEMENT REPUTATION RISK MANAGEMENT Reputation risk is the risk that an action or inaction may negatively impact perception of the Firm's integrity and reduce confidence in the Firm's competence by various stakeholders, including clients, counterparties, customers, communities, investors, regulators, or employees. The types of events that may result in reputation risk are wide-ranging and can be introduced by the Firm's employees, business strategies and activities, clients, customers and counterparties with which the Firm does business. These events could contribute to financial losses, litigation, regulatory enforcement actions, fines, penalties or other sanctions, as well as other harm to the Firm. Organization and management Reputation Risk Management is an independent risk management function that establishes the governance framework for managing reputation risk across the Firm's LOBs and Corporate. Reputation risk is inherently challenging to identify, manage, and quantify.The Firm's reputation risk management function includes the following activities:•Maintaining a Firmwide Reputation Risk Governance policy and a standard consistent with the reputation risk framework •Providing oversight of the governance framework through processes and infrastructure to support consistent identification, escalation and monitoring of reputation risk issues FirmwideGovernance and oversightThe Reputation Risk Governance policy establishes the principles for managing reputation risk for the Firm. It is the responsibility of each LOB and Corporate, and the Firm's employees, to consider the reputation of the Firm when deciding whether to offer a new product, engage in a transaction or client relationship, enter a new jurisdiction, initiate a business process or consider any other activity. Environmental impacts and social concerns are important considerations in assessing the Firm's reputation risk, and are a component of the Firm's reputation risk governance. Reputation risk is the risk that an action or inaction may negatively impact perception of the Firm's integrity and reduce confidence in the Firm's competence by various stakeholders, including clients, counterparties, customers, communities, investors, regulators, or employees. The types of events that may result in reputation risk are wide-ranging and can be introduced by the Firm's employees, business strategies and activities, clients, customers and counterparties with which the Firm does business. These events could contribute to financial losses, litigation, regulatory enforcement actions, fines, penalties or other sanctions, as well as other harm to the Firm. Organization and management Reputation Risk Management is an independent risk management function that establishes the governance framework for managing reputation risk across the Firm's LOBs and Corporate. Reputation risk is inherently challenging to identify, manage, and quantify.The Firm's reputation risk management function includes the following activities:•Maintaining a Firmwide Reputation Risk Governance policy and a standard consistent with the reputation risk framework •Providing oversight of the governance framework through processes and infrastructure to support consistent identification, escalation and monitoring of reputation risk issues Firmwide Reputation risk is the risk that an action or inaction may negatively impact perception of the Firm's integrity and reduce confidence in the Firm's competence by various stakeholders, including clients, counterparties, customers, communities, investors, regulators, or employees. The types of events that may result in reputation risk are wide-ranging and can be introduced by the Firm's employees, business strategies and activities, clients, customers and counterparties with which the Firm does business. These events could contribute to financial losses, litigation, regulatory enforcement actions, fines, penalties or other sanctions, as well as other harm to the Firm. --- ## Removed Risk: Organization and management *This risk factor was present in the 2025 filing and has been removed.* Reputation Risk Management is an independent risk management function that establishes the governance framework for managing reputation risk across the Firm's LOBs and Corporate. Reputation risk is inherently challenging to identify, manage, and quantify. The Firm's reputation risk management function includes the following activities: •Maintaining a Firmwide Reputation Risk Governance policy and a standard consistent with the reputation risk framework •Providing oversight of the governance framework through processes and infrastructure to support consistent identification, escalation and monitoring of reputation risk issues Firmwide Governance and oversightThe Reputation Risk Governance policy establishes the principles for managing reputation risk for the Firm. It is the responsibility of each LOB and Corporate, and the Firm's employees, to consider the reputation of the Firm when deciding whether to offer a new product, engage in a transaction or client relationship, enter a new jurisdiction, initiate a business process or consider any other activity. Environmental impacts and social concerns are important considerations in assessing the Firm's reputation risk, and are a component of the Firm's reputation risk governance. --- ## Removed Risk: December 31, 2024 *This risk factor was present in the 2025 filing and has been removed.* (in millions, except ratios) Loans held-for-sale and loans at fair value(a) Credit derivatives and credit-related notes used in credit portfolio management activities(b)(c) Maturity profile(d)Ratings profileDecember 31, 2023(in millions, except ratios)1 year or lessAfter 1 year through 5 yearsAfter 5 yearsTotalInvestment-gradeNoninvestment-gradeTotalTotal % of IGLoans retained$211,104 $280,821 $180,547 $672,472 $458,838 $213,634 $672,472 68 %Derivative receivables54,864 54,864 Less: Liquid securities and other cash collateral held against derivatives(22,461)(22,461)Total derivative receivables, net of collateral8,007 8,970 15,426 32,403 24,919 7,484 32,403 77 Lending-related commitments143,337 368,646 24,803 536,786 341,611 195,175 536,786 64 Subtotal362,448 658,437 220,776 1,241,661 825,368 416,293 1,241,661 66 Loans held-for-sale and loans at fair value(a)30,018 30,018 Receivables from customers47,625 47,625 Total exposure - net of liquid securities and other cash collateral held against derivatives$1,319,304 $1,319,304 Credit derivatives and credit-related notes used in credit portfolio management activities(b)(c)$(3,311)$(28,353)$(5,325)$(36,989)$(28,869)$(8,120)$(36,989)78 % Maturity profile(d) Loans held-for-sale and loans at fair value(a) Credit derivatives and credit-related notes used in credit portfolio management activities(b)(c) (a)Loans held-for-sale are primarily related to syndicated loans and loans transferred from the retained portfolio. (b)These derivatives do not qualify for hedge accounting under U.S. GAAP. (c)The notional amounts are presented on a net basis by underlying reference entity and the ratings profile shown is based on the ratings of the reference entity on which protection has been purchased. Predominantly all of the credit derivatives entered into by the Firm where it has purchased protection used in credit portfolio management activities are executed with investment-grade counterparties. In addition, the Firm obtains credit protection against certain loans in the retained loan portfolio through the issuance of credit-related notes. (d)The maturity profile of retained loans, lending-related commitments and derivative receivables is generally based on remaining contractual maturity. Derivative contracts that are in a receivable position at December 31, 2024, may become payable prior to maturity based on their cash flow profile or changes in market conditions. JPMorgan Chase & Co./2024 Form 10-K127 JPMorgan Chase & Co./2024 Form 10-K127 JPMorgan Chase & Co./2024 Form 10-K127 JPMorgan Chase & Co./2024 Form 10-K 127 --- ## Removed Risk: Wholesale credit exposure - industries(a) *This risk factor was present in the 2025 filing and has been removed.* Credit derivative and credit-related notes(h) As of or for the year ended --- ## Removed Risk: December 31, 2024 *This risk factor was present in the 2025 filing and has been removed.* (in millions) Credit exposure(f)(g) Individuals and Individual Entities(b) Asset Managers State & Municipal Govt(c) All other(d) Total(e) 128JPMorgan Chase & Co./2024 Form 10-K 128JPMorgan Chase & Co./2024 Form 10-K 128JPMorgan Chase & Co./2024 Form 10-K 128 JPMorgan Chase & Co./2024 Form 10-K Selected metricsNoninvestment-grade30 days or more past due and accruingloansNet charge-offs/(recoveries)Credit derivative and credit-related notes (h)Liquid securities and other cash collateral held against derivativereceivablesAs of or for the year ended December 31, 2023(in millions)Creditexposure(f)(g)Investment- gradeNoncriticizedCriticized performingCriticized nonperformingReal Estate$208,261 $148,866 $50,190 $8,558 $647 $717 $275 $(574)$ - Individuals and Individual Entities(b)145,849 110,673 34,261 334 581 861 10 - - Asset Managers 129,574 83,857 45,623 90 4 201 1 - (7,209)Consumer & Retail127,086 60,168 58,606 7,863 449 318 161 (4,204) - Technology, Media & Telecommunications77,296 40,468 27,094 9,388 346 36 81 (4,287) - Industrials75,092 40,951 30,586 3,419 136 213 31 (2,949) - Healthcare65,025 43,163 18,396 3,005 461 130 17 (3,070) - Banks & Finance Companies57,177 33,881 22,744 545 7 9 277 (511)(412)Utilities36,061 25,242 9,929 765 125 1 (3)(2,373) - State & Municipal Govt(c)35,986 33,561 2,390 27 8 31 - (4) - Automotive33,977 23,152 10,060 640 125 59 - (653) - Oil & Gas34,475 18,276 16,076 111 12 45 11 (1,927)(5)Insurance20,501 14,503 5,700 298 - 2 - (961)(6,898)Chemicals & Plastics20,773 11,353 8,352 916 152 106 2 (1,045) - Transportation16,060 8,865 5,943 1,196 56 23 (26)(574) - Metals & Mining15,508 8,403 6,514 536 55 12 44 (229) - Central Govt17,704 17,264 312 127 1 - - (3,490)(2,085)Securities Firms8,689 4,570 4,118 1 - - - (14)(2,765)Financial Markets Infrastructure4,251 4,052 199 - - - - - - All other(d)134,777 115,711 18,618 439 9 21 (2)(10,124)(3,087)Subtotal$1,264,122 $846,979 $375,711 $38,258 $3,174 $2,785 $879 $(36,989)$(22,461)Loans held-for-sale and loans at fair value30,018 Receivables from customers47,625 Total(e)$1,341,765 Credit derivative and credit-related notes (h) Credit exposure(f)(g) Individuals and Individual Entities(b) Asset Managers State & Municipal Govt(c) All other(d) Total(e) (a)The industry rankings presented in the table as of December 31, 2023, are based on the industry rankings of the corresponding exposures at December 31, 2024, not actual rankings of such exposures at December 31, 2023. (b)Individuals and Individual Entities predominantly consists of Global Private Bank clients within AWM and J.P. Morgan Wealth Management within CCB, and includes exposure to personal investment companies and personal and testamentary trusts. (c)In addition to the credit risk exposure to states and municipal governments (both U.S. and non-U.S.) at December 31, 2024 and 2023, noted above, the Firm held: $6.1 billion and $5.9 billion, respectively, of trading assets; $17.9 billion and $21.4 billion, respectively, of AFS securities; and $9.3 billion and $9.9 billion, respectively, of HTM securities, issued by U.S. state and municipal governments. Refer to Note 2 and Note 10 for further information. (d)All other includes: SPEs and Private education and civic organizations, representing approximately 94% and 6%, respectively, at both December 31, 2024 and 2023. (e)Excludes cash placed with banks of $459.2 billion and $614.1 billion, at December 31, 2024 and 2023, respectively, which is predominantly placed with various central banks, primarily Federal Reserve Banks. (f)Credit exposure is net of risk participations and excludes the benefit of credit derivatives and credit-related notes used in credit portfolio management activities held against derivative receivables or loans and liquid securities and other cash collateral held against derivative receivables. (g)Credit exposure includes held-for-sale and fair value option elected lending-related commitments. (h)Represents the net notional amounts of protection purchased and sold through credit derivatives and credit-related notes used to manage the credit exposures; these derivatives do not qualify for hedge accounting under U.S. GAAP. The All other category includes purchased credit protection on certain credit indices. JPMorgan Chase & Co./2024 Form 10-K129 JPMorgan Chase & Co./2024 Form 10-K129 JPMorgan Chase & Co./2024 Form 10-K129 JPMorgan Chase & Co./2024 Form 10-K 129 --- ## Removed Risk: Total Consumer & Retail(c) *This risk factor was present in the 2025 filing and has been removed.* % Drawn(d) Business and Consumer Services(a) Leisure(b) --- ## Removed Risk: Total Consumer & Retail *This risk factor was present in the 2025 filing and has been removed.* (a)Retail consists of Home Improvement & Specialty Retailers, Restaurants, Discount & Drug Stores, Specialty Apparel, Department Stores and Supermarkets. (b)Leisure consists of Arts & Culture, Travel Services, Gaming and Sports & Recreation. As of December 31, 2024, approximately 90% of the noninvestment-grade Leisure portfolio is secured. (c)Consumer & Retail exposure is approximately 57% secured; unsecured exposure is approximately 80% investment-grade. (d)Represents drawn exposure as a percent of credit exposure. Oil & Gas Oil & Gas exposure was $31.7 billion as of December 31, 2024. Criticized exposure was $192 million and $123 million at December 31, 2024 and 2023, respectively. December 31, 2024(in millions, except ratios)Loans and Lending-related CommitmentsDerivative ReceivablesCredit exposure% Investment-grade% Drawn(c)Exploration & Production ("E&P") and Oil field Services$14,265 $848 $15,113 55 %27 %Other Oil & Gas(a)16,306 305 16,611 65 19 Total Oil & Gas(b)$30,571 $1,153 $31,724 60 %23 %December 31, 2023(in millions, except ratios)Loans and Lending-related CommitmentsDerivative ReceivablesCredit exposure% Investment-grade% Drawn(c)Exploration & Production ("E&P") and Oil field Services$18,121 $536 $18,657 51 %26 %Other Oil & Gas(a)15,649 169 15,818 55 22 Total Oil & Gas$33,770 $705 $34,475 53 %25 % % Drawn(c) Other Oil & Gas(a) --- ## Removed Risk: Total Oil & Gas(b) *This risk factor was present in the 2025 filing and has been removed.* % Drawn(c) Other Oil & Gas(a) (a)Other Oil & Gas includes Integrated Oil & Gas companies, Midstream/Oil Pipeline companies and refineries. (b)Oil & Gas exposure is approximately 33% secured, and includes reserve-based lending to the Exploration & Production sub-sector; unsecured exposure is approximately 69% investment-grade. (c)Represents drawn exposure as a percent of credit exposure. JPMorgan Chase & Co./2024 Form 10-K131 JPMorgan Chase & Co./2024 Form 10-K131 JPMorgan Chase & Co./2024 Form 10-K131 JPMorgan Chase & Co./2024 Form 10-K 131 --- ## Removed Risk: Exposure profile of derivatives measures *This risk factor was present in the 2025 filing and has been removed.* December 31, 2024 (in billions) JPMorgan Chase & Co./2024 Form 10-K135 JPMorgan Chase & Co./2024 Form 10-K135 JPMorgan Chase & Co./2024 Form 10-K135 JPMorgan Chase & Co./2024 Form 10-K 135 --- ## Removed Risk: 2024 compared with 2023 *This risk factor was present in the 2025 filing and has been removed.* Average Total VaR increased by $4 million for the year ended December 31, 2024 when compared with the prior year. The increase was predominantly driven by the impact of the Firm's receipt of Visa C shares on Corporate VaR and increases associated with credit protection purchased against certain retained loans and lending-related commitments within Credit Portfolio VaR and AWM VaR, largely offset by market volatility rolling out of the one-year historical look-back period impacting the Fixed income risk type. Average Total VaR increased by $4 million for the year ended December 31, 2024 when compared with the prior year. The increase was predominantly driven by the impact of the Firm's receipt of Visa C shares on Corporate VaR and increases associated with credit Average Total VaR increased by $4 million for the year ended December 31, 2024 when compared with the prior year. The increase was predominantly driven by the impact of the Firm's receipt of Visa C shares on Corporate VaR and increases associated with credit protection purchased against certain retained loans and lending-related commitments within Credit Portfolio VaR and AWM VaR, largely offset by market volatility rolling out of the one-year historical look-back period impacting the Fixed income risk type. protection purchased against certain retained loans and lending-related commitments within Credit Portfolio VaR and AWM VaR, largely offset by market volatility rolling out of the one-year historical look-back period impacting the Fixed income risk type. The following graph presents daily Risk Management VaR for the four trailing quarters. The increase in VaR and subsequent decline observed in the second quarter of 2024 was primarily driven by changes in Visa C share exposure in the Firm's Corporate VaR. --- ## Removed Risk: Daily Risk Management VaR *This risk factor was present in the 2025 filing and has been removed.* First Quarter2024Second Quarter2024Third Quarter2024Fourth Quarter2024 144JPMorgan Chase & Co./2024 Form 10-K 144JPMorgan Chase & Co./2024 Form 10-K 144JPMorgan Chase & Co./2024 Form 10-K 144 JPMorgan Chase & Co./2024 Form 10-K --- ## Removed Risk: Earnings-at-Risk *This risk factor was present in the 2025 filing and has been removed.* One way that the Firm evaluates its structural interest rate risk is through earnings-at-risk. Earnings-at-risk estimates the Firm's interest rate exposure for a given interest rate scenario. It is presented as a sensitivity to a baseline, which includes net interest income and certain interest rate sensitive fees. The baseline uses market interest rates and, in the case of deposits, pricing assumptions. The Firm conducts simulations of changes to this baseline for interest rate-sensitive assets and liabilities denominated in U.S. dollars and other currencies ("non-U.S. dollar" currencies). These simulations primarily include retained and held-for-sale loans, deposits, deposits with banks and financing activities, investment securities, long-term debt, related interest rate hedges, and funds transfer pricing of other positions in risk management VaR and other sensitivity-based measures as described on page 142. Beginning in the fourth quarter of 2024, these simulations also include hedges of non-U.S. dollar foreign exchange exposures arising from capital investments. Refer to non-U.S. dollar foreign exchange risk on page 149 for more information. Earnings-at-risk scenarios estimate the potential change to a baseline over the following 12 months utilizing multiple assumptions. These scenarios include a parallel shift involving changes to both short-term and long-term rates by an equal amount; a steeper yield curve involving holding short-term rates constant and increasing long-term rates; and a flatter yield curve involving increasing short-term rates and holding long-term rates constant or holding short-term rates constant and decreasing long-term rates. These scenarios consider many different factors, including: •The impact on exposures as a result of instantaneous changes in interest rates from baseline rates. •Forecasted balance sheet, as well as modeled prepayment and reinvestment behavior, but excluding assumptions about actions that could be taken by the Firm or its clients and customers in response to instantaneous rate changes. Mortgage prepayment assumptions are based on the interest rates used in the scenarios compared with underlying contractual rates, the time since origination, and other factors which are updated periodically based on historical experience. Deposit forecasts are a key assumption in the Firm's earnings-at-risk. The baseline reflects certain assumptions relating to the Federal Reserve's balance sheet policy (e.g., quantitative tightening and usage at the Reverse Repurchase Facility) that require management judgment. The amount of deposits that the Firm holds at any given time may be influenced by Federal Reserve actions, as well as broader monetary conditions and competition for deposits.•The pricing sensitivity of deposits, known as deposit betas, represent the amount by which deposit rates paid could change upon a given change in market interest rates. Actual deposit rates paid may differ from the modeled assumptions, primarily due to customer behavior and competition for deposits.The Firm performs sensitivity analyses of the assumptions used in earnings-at-risk scenarios, including with respect to deposit betas and forecasts of deposit balances, both of which are especially significant in the case of consumer deposits. The results of these sensitivity analyses are reported to the CTC Risk Committee and the Board Risk Committee.The Firm's earnings-at-risk scenarios are periodically evaluated and enhanced in response to changes in the composition of the Firm's balance sheet, changes in market conditions, improvements in the Firm's simulation and other factors. In the second quarter of 2024, the Firm updated certain deposit rates paid assumptions which take into account observed pricing and client and customer behavior during the most recent economic cycle. These updated deposit rates paid assumptions impacted the U.S. dollar scenarios, resulting in an increase in positive sensitivity in higher interest rate scenarios, and an increase in negative sensitivity in lower interest rate scenarios. The Firm's earnings-at-risk sensitivities are measures of the Firm's interest rate exposure. The Firm's actual net interest income for the rate changes presented may differ as the earnings-at-risk scenarios are modelled as instantaneous changes and exclude any actions that could be taken by the Firm or its clients or customers in response to rate changes. Other significant assumptions in the earnings-at-risk scenarios, including mortgage prepayments and deposit rates paid, may also differ from actual results. The Firm's forecast for net interest income is included in the Firm's outlook on page 57. require management judgment. The amount of deposits that the Firm holds at any given time may be influenced by Federal Reserve actions, as well as broader monetary conditions and competition for deposits. •The pricing sensitivity of deposits, known as deposit betas, represent the amount by which deposit rates paid could change upon a given change in market interest rates. Actual deposit rates paid may differ from the modeled assumptions, primarily due to customer behavior and competition for deposits. The Firm performs sensitivity analyses of the assumptions used in earnings-at-risk scenarios, including with respect to deposit betas and forecasts of deposit balances, both of which are especially significant in the case of consumer deposits. The results of these sensitivity analyses are reported to the CTC Risk Committee and the Board Risk Committee. The Firm's earnings-at-risk scenarios are periodically evaluated and enhanced in response to changes in the composition of the Firm's balance sheet, changes in market conditions, improvements in the Firm's simulation and other factors. In the second quarter of 2024, the Firm updated certain deposit rates paid assumptions which take into account observed pricing and client and customer behavior during the most recent economic cycle. These updated deposit rates paid assumptions impacted the U.S. dollar scenarios, resulting in an increase in positive sensitivity in higher interest rate scenarios, and an increase in negative sensitivity in lower interest rate scenarios. The Firm's earnings-at-risk sensitivities are measures of the Firm's interest rate exposure. The Firm's actual net interest income for the rate changes presented may differ as the earnings-at-risk scenarios are modelled as instantaneous changes and exclude any actions that could be taken by the Firm or its clients or customers in response to rate changes. Other significant assumptions in the earnings-at-risk scenarios, including mortgage prepayments and deposit rates paid, may also differ from actual results. The Firm's forecast for net interest income is included in the Firm's outlook on page 57. JPMorgan Chase & Co./2024 Form 10-K147 JPMorgan Chase & Co./2024 Form 10-K147 JPMorgan Chase & Co./2024 Form 10-K147 JPMorgan Chase & Co./2024 Form 10-K 147 --- ## Removed Risk: Debt and equity(a) *This risk factor was present in the 2025 filing and has been removed.* Consists of seed capital and related hedges; fund co-investments(c); and certain deferred compensation and related hedges(d) Consists of certain real estate-related fair value option elected loans, privately held equity and other investments held at fair value(c) Non-USD LTD cross-currency basis Represents the basis risk on derivatives used to hedge the foreign exchange risk on the non-USD LTD(e) Non-USD LTD hedges foreign currency ("FX") exposure Primarily represents the foreign exchange revaluation on the fair value of the derivative hedges(e) Impact of changes in the spread related to derivatives FVA(c) CVA - counterparty credit risk(b) Impact of changes in the spread related to fair value option elected liabilities DVA(e) (a)Excludes equity securities without readily determinable fair values that are measured under the measurement alternative. Refer to Note 2 for additional information. (b)In line with the Firm's internal model governance, the credit risk component of CVA related to certain counterparties was removed from Credit Portfolio VaR due to the widening of the credit spreads for those counterparties to elevated levels. The related hedges were also removed to maintain consistency. This exposure is now reflected in the table above. (c)Impact recognized through net revenue. (d)Impact recognized through noninterest expense. (e)Impact recognized through OCI. JPMorgan Chase & Co./2024 Form 10-K149 JPMorgan Chase & Co./2024 Form 10-K149 JPMorgan Chase & Co./2024 Form 10-K149 JPMorgan Chase & Co./2024 Form 10-K 149 --- ## Removed Risk: Top 20 country exposures (excluding the U.S.)(a) *This risk factor was present in the 2025 filing and has been removed.* 2023(f) Deposits with banks(b) Lending(c) Trading and investing(d) Other(e) Mexico Spain (a)Country exposures presented in the table reflect 89% and 88% of total Firmwide non-U.S. exposure, where exposure is attributed to an individual country based on the Firm's internal country risk management approach, at December 31, 2024 and 2023, respectively. (b)Predominantly represents cash placed with central banks. (c)Includes loans and accrued interest receivable, lending-related commitments (net of eligible collateral and the allowance for credit losses). Excludes intra-day and operating exposures, such as those from settlement and clearing activities. (d)Includes market-making positions and hedging, investment securities, and counterparty exposure on derivative and securities financings net of eligible collateral. Market-making positions and hedging includes exposure from single reference entity ("single-name"), index and other multiple reference entity transactions for which one or more of the underlying reference entities is in a country listed in the above table. (e)Includes physical commodities inventory and clearing house guarantee funds. (f)The country rankings presented in the table as of December 31, 2023, are based on the country rankings of the corresponding exposures at December 31, 2024, not actual rankings of such exposures at December 31, 2023. JPMorgan Chase & Co./2024 Form 10-K151 JPMorgan Chase & Co./2024 Form 10-K151 JPMorgan Chase & Co./2024 Form 10-K151 JPMorgan Chase & Co./2024 Form 10-K 151 --- ## Removed Risk: Operational Risk Management Framework *This risk factor was present in the 2025 filing and has been removed.* The Firm's Compliance, Conduct, and Operational Risk ("CCOR") Management Framework is designed to enable the Firm to govern, identify, measure, monitor and test, manage and report on the Firm's operational risk. Operational Risk Governance The LOBs and Corporate are responsible for the management of operational risk. The Control Management Organization, which consists of control managers within each LOB and Corporate, is responsible for the day-to-day execution of the CCOR Framework. The Firm's Global Chief Compliance Officer ("CCO") and FRE for Operational Risk and Qualitative Risk Appetite is responsible for defining the CCOR Management Framework and establishing the minimum standards for its execution. The LOB and Corporate aligned CCOR Lead Officers report to the Global CCO and FRE for Operational Risk and Qualitative Risk Appetite and are independent of the respective businesses or functions they oversee. The CCOR Management Framework is included in the Risk Governance and Oversight Policy that is reviewed and approved by the Board Risk Committee periodically. Operational Risk Identification The Firm utilizes a structured risk and control self-assessment process that is executed by the LOBs and Corporate. As part of this process, the LOBs and Corporate evaluate the effectiveness of their respective control environment to assess circumstances in which controls have failed, and to determine where remediation efforts may be required. The Firm's Operational Risk and Compliance organization ("Operational Risk and Compliance") provides oversight of and challenge to these evaluations and may also perform independent assessments of significant operational risk events and areas of concentrated or emerging risk.Operational Risk MeasurementOperational Risk and Compliance performs an independent assessment of the operational risks inherent within the LOBs and Corporate, which includes evaluating the effectiveness of the control environments and reporting the results to senior management.In addition, Operational Risk and Compliance assesses operational risks through quantitative means, including operational risk-based capital and estimation of operational risk losses under both baseline and stressed conditions. The primary component of the operational risk-based capital estimate is the Loss Distribution Approach ("LDA") statistical model, which simulates the projected frequency and severity of operational risk losses based on historical data. The LDA model is used to estimate an aggregate operational risk loss over a one-year time horizon, at a 99.9% confidence level. The LDA model incorporates actual internal operational risk losses in the quarter following the period in which those losses were realized, and the calculation generally continues to reflect such losses even after the issues or business activities giving rise to the losses have been remediated or reduced.As required under the Basel III capital framework, the Firm's operational risk capital methodology, which uses the Advanced Measurement Approach ("AMA"), incorporates internal and external losses as well as management's view of tail risk captured through operational risk scenario analysis, and evaluation of key business environment and internal control metrics. The Firm does not reflect the impact of insurance in its AMA estimate of operational risk capital. The Firm considers the impact of stressed economic conditions on operational risk losses and develops a forward looking view of material operational risk events that may occur in a stressed environment. The Firm's operational risk stress testing framework is utilized in calculating results for the Firm's CCAR and other stress testing processes. Refer to Capital Risk Management on pages 97-107 for information related to operational risk RWA, and CCAR.Operational Risk Monitoring and TestingThe results of risk assessments performed by Operational Risk and Compliance are used in connection with their independent monitoring and testing compliance of the LOBs and Corporate with provides oversight of and challenge to these evaluations and may also perform independent assessments of significant operational risk events and areas of concentrated or emerging risk. Operational Risk Measurement Operational Risk and Compliance performs an independent assessment of the operational risks inherent within the LOBs and Corporate, which includes evaluating the effectiveness of the control environments and reporting the results to senior management. In addition, Operational Risk and Compliance assesses operational risks through quantitative means, including operational risk-based capital and estimation of operational risk losses under both baseline and stressed conditions. The primary component of the operational risk-based capital estimate is the Loss Distribution Approach ("LDA") statistical model, which simulates the projected frequency and severity of operational risk losses based on historical data. The LDA model is used to estimate an aggregate operational risk loss over a one-year time horizon, at a 99.9% confidence level. The LDA model incorporates actual internal operational risk losses in the quarter following the period in which those losses were realized, and the calculation generally continues to reflect such losses even after the issues or business activities giving rise to the losses have been remediated or reduced. As required under the Basel III capital framework, the Firm's operational risk capital methodology, which uses the Advanced Measurement Approach ("AMA"), incorporates internal and external losses as well as management's view of tail risk captured through operational risk scenario analysis, and evaluation of key business environment and internal control metrics. The Firm does not reflect the impact of insurance in its AMA estimate of operational risk capital. The Firm considers the impact of stressed economic conditions on operational risk losses and develops a forward looking view of material operational risk events that may occur in a stressed environment. The Firm's operational risk stress testing framework is utilized in calculating results for the Firm's CCAR and other stress testing processes. Refer to Capital Risk Management on pages 97-107 for information related to operational risk RWA, and CCAR. Operational Risk Monitoring and Testing The results of risk assessments performed by Operational Risk and Compliance are used in connection with their independent monitoring and testing compliance of the LOBs and Corporate with JPMorgan Chase & Co./2024 Form 10-K153 JPMorgan Chase & Co./2024 Form 10-K153 JPMorgan Chase & Co./2024 Form 10-K153 JPMorgan Chase & Co./2024 Form 10-K 153 --- ## Removed Risk: Governance and oversight *This risk factor was present in the 2025 filing and has been removed.* Operational Risk and Compliance is led by the Firm's Global CCO and FRE for Operational Risk and Qualitative Risk Appetite. The Firm maintains oversight and coordination of its compliance risk through the CCOR Management Framework. The Firm's Global CCO and FRE for Operational Risk and Qualitative Risk Appetite also provides regular updates to the Board Risk Committee and the Audit Committee on significant compliance risk issues, as appropriate. Code of Conduct The Firm has a Code of Conduct (the "Code") that sets forth the Firm's expectation that employees will conduct themselves with integrity, at all times. The Code provides the principles that help govern employee conduct with clients, customers, suppliers, vendors, shareholders, regulators, other employees, as well as with the markets and communities in which the Firm operates. The Code requires employees to promptly report any potential or actual violation of the Code, Firm policies, or laws, rules or regulations applicable to the Firm's business. It also requires employees to report any illegal or unethical conduct, or conduct that violates the underlying principles of the Code, by any of the Firm's employees, consultants, clients, customers, suppliers, contract or temporary workers, or business partners or agents. Training is assigned to newly hired employees after joining the Firm, and to current employees periodically thereafter. Employees are required to affirm their compliance with the Code annually. Employees can report any potential or actual violations of the Code through the Firm's Conduct Hotline (the "Hotline") by phone, mobile device or the internet. The Hotline is anonymous, where permitted by law, is available at all times globally, has translation services, and is administered by an outside service provider. The Code prohibits retaliation against anyone who raises an issue or concern in good faith or assists with an inquiry or investigation. Periodically, the Audit Committee receives reports on the Code of Conduct program. JPMorgan Chase & Co./2024 Form 10-K157 JPMorgan Chase & Co./2024 Form 10-K157 JPMorgan Chase & Co./2024 Form 10-K157 JPMorgan Chase & Co./2024 Form 10-K 157 --- ## Removed Risk: Governance and oversight *This risk factor was present in the 2025 filing and has been removed.* The Firm's General Counsel reports to the CEO and is a member of the Operating Committee, the Firmwide Risk Committee and the Firmwide Control Committee. The Firm's General Counsel and other members of Legal report on significant legal matters to the Firm's Board of Directors and to the Audit Committee. Legal serves on and advises various committees and advises the Firm's LOBs and Corporate on potential reputation risk issues. JPMorgan Chase & Co./2024 Form 10-K159 JPMorgan Chase & Co./2024 Form 10-K159 JPMorgan Chase & Co./2024 Form 10-K159 JPMorgan Chase & Co./2024 Form 10-K 159 --- ## Removed Risk: Credit card rewards liability *This risk factor was present in the 2025 filing and has been removed.* JPMorganChase offers credit cards with various rewards programs which allow cardholders to earn rewards points based on their account activity and the terms and conditions of the rewards program. Generally, there are no limits on the points that an eligible cardholder can earn, nor do the points expire, and the points can be redeemed for a variety of rewards, including cash (predominantly in the form of account credits), gift cards and travel. The Firm maintains a rewards liability which represents the estimated cost of rewards points earned and expected to be redeemed by cardholders. The liability is accrued as the cardholder earns the benefit and is reduced when the cardholder redeems points. This liability was $14.4 billion and $13.2 billion at December 31, 2024 and 2023, respectively, and is recorded in accounts payable and other liabilities on the Consolidated balance sheets. The increase in the liability was driven by continued growth in rewards points earned on higher spend and promotional offers outpacing redemptions throughout 2024. The rewards liability is sensitive to redemption rate ("RR") and cost per point ("CPP") assumptions. The RR JPMorgan Chase & Co./2024 Form 10-K163 JPMorgan Chase & Co./2024 Form 10-K163 JPMorgan Chase & Co./2024 Form 10-K163 JPMorgan Chase & Co./2024 Form 10-K 163 --- ## Removed Risk: Litigation reserves *This risk factor was present in the 2025 filing and has been removed.* Refer to Note 30 for a description of the significant estimates and judgments associated with establishing litigation reserves. 164JPMorgan Chase & Co./2024 Form 10-K 164JPMorgan Chase & Co./2024 Form 10-K 164JPMorgan Chase & Co./2024 Form 10-K 164 JPMorgan Chase & Co./2024 Form 10-K ACCOUNTING AND REPORTING DEVELOPMENTS Financial Accounting Standards Board ("FASB") Standards Adopted since January 1, 2024StandardSummary of guidance Effects on financial statementsFair Value Measurement: Fair Value Measurement of Equity Securities Subject to Contractual Sale RestrictionsIssued June 2022•Clarifies that a contractual sale restriction is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value.•Requires disclosure for investments in equity securities subject to contractual sale restrictions, including: 1) fair value of these investments, 2) nature and remaining duration of the restriction(s) and 3) circumstances that could cause a lapse in the restriction(s).•Adopted prospectively on January 1, 2024, with no impact to the Firm's Consolidated Financial Statements.Investments - Equity Method and Joint Ventures: Accounting for Investments in Tax Credit Structures Using the Proportional Amortization MethodIssued March 2023•Expands the ability to elect proportional amortization on a program-by-program basis, for additional types of tax-oriented investments (beyond affordable housing tax credit investments).•May be adopted using a full retrospective method, or a modified retrospective method wherein the effect of adoption is reflected as an adjustment to retained earnings at the effective date.•Adopted under the modified retrospective method on January 1, 2024.•Refer to Note 1 for further information.Segment Reporting: Improvements to Reportable Segment DisclosuresIssued November 2023•Requires disclosure of significant segment expenses that are readily provided to the chief operating decision maker ("CODM") and included in segment profit or loss.•Requires disclosure of the composition and aggregate amount of other segment items, which represent the difference between profit or loss and segment revenues less significant segment expenses.•Requires disclosure of the title and position of the CODM and an explanation of how the CODM uses the reported segment measures in assessing segment performance and deciding how to allocate resources.•Adopted retrospectively for the Firm's annual Consolidated Financial Statements for the year ended December 31, 2024.(a)•The adoption of this guidance resulted in additional reportable segment disclosures, primarily relating to significant segment expenses and the CODM. Refer to Note 32 for further information. --- ## Removed Risk: Effects on financial statements *This risk factor was present in the 2025 filing and has been removed.* Fair Value Measurement: Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions Issued June 2022 •Clarifies that a contractual sale restriction is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. •Requires disclosure for investments in equity securities subject to contractual sale restrictions, including: 1) fair value of these investments, 2) nature and remaining duration of the restriction(s) and 3) circumstances that could cause a lapse in the restriction(s). •Adopted prospectively on January 1, 2024, with no impact to the Firm's Consolidated Financial Statements. Investments - Equity Method and Joint Ventures: Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method Issued March 2023 •Expands the ability to elect proportional amortization on a program-by-program basis, for additional types of tax-oriented investments (beyond affordable housing tax credit investments). •May be adopted using a full retrospective method, or a modified retrospective method wherein the effect of adoption is reflected as an adjustment to retained earnings at the effective date. •Adopted under the modified retrospective method on January 1, 2024. •Refer to Note 1 for further information. Segment Reporting: Improvements to Reportable Segment Disclosures Issued November 2023 •Requires disclosure of significant segment expenses that are readily provided to the chief operating decision maker ("CODM") and included in segment profit or loss. •Requires disclosure of the composition and aggregate amount of other segment items, which represent the difference between profit or loss and segment revenues less significant segment expenses. •Requires disclosure of the title and position of the CODM and an explanation of how the CODM uses the reported segment measures in assessing segment performance and deciding how to allocate resources. •Adopted retrospectively for the Firm's annual Consolidated Financial Statements for the year ended December 31, 2024.(a) •The adoption of this guidance resulted in additional reportable segment disclosures, primarily relating to significant segment expenses and the CODM. Refer to Note 32 for further information. (a)The accounting standards update applies to the Firm's annual Consolidated Financial Statements for the year ended December 31, 2024, and interim financial statements thereafter. JPMorgan Chase & Co./2024 Form 10-K165 JPMorgan Chase & Co./2024 Form 10-K165 JPMorgan Chase & Co./2024 Form 10-K165 JPMorgan Chase & Co./2024 Form 10-K 165 --- ## Removed Risk: Consolidation *This risk factor was present in the 2025 filing and has been removed.* The Consolidated Financial Statements include the accounts of JPMorganChase and other entities in which the Firm has a controlling financial interest. All material intercompany balances and transactions have been eliminated. Assets held for clients in an agency or fiduciary capacity by the Firm are not assets of JPMorganChase and are not included on the Consolidated balance sheets. The Firm determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity. Voting interest entities Voting interest entities are entities that have sufficient equity and provide the equity investors voting rights that enable them to make significant decisions relating to the entity's operations. For these types of entities, the Firm's determination of whether it has a controlling interest is primarily based on the amount of voting equity interests held. Entities in which the Firm has a controlling financial interest, through ownership of the majority of the entities' voting equity interests, or through other contractual rights that give the Firm control, are consolidated by the Firm. Investments in companies in which the Firm has significant influence over operating and financing decisions (but does not own a majority of the voting equity interests) are accounted for (i) in accordance with the equity method of accounting, or (ii) at fair value if the fair value option was elected. These investments are generally included in other assets, with income or loss included in noninterest revenue. Certain Firm-sponsored asset management funds are structured as limited partnerships or limited liability companies. For many of these entities, the Firm is the general partner or managing member, but the non-affiliated partners or members have the ability to remove the Firm as the general partner or managing member without cause (i.e., kick-out rights), based on a simple majority vote, or the non-affiliated partners or members have rights to participate in important decisions. Accordingly, the Firm does not consolidate these voting interest entities. However, in the limited cases where the non-managing partners or members do not have substantive kick-out or participating rights, the Firm evaluates the funds as VIEs and consolidates the funds if the Firm is the general partner or managing member and has both power and a potentially significant interest. The Firm's investment companies and asset management funds have investments in both publicly-held and privately-held entities, including investments in buyouts, growth equity and venture opportunities. These investments are accounted for under investment company guidelines and, accordingly, irrespective of the percentage of equity ownership interests held, are carried on the Consolidated balance sheets at fair value, and are recorded in other assets, with income or loss included in noninterest revenue. If consolidated, the Firm retains the accounting under such specialized investment company guidelines.Variable interest entities VIEs are entities that, by design, either (1) lack sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties, or (2) have equity investors that do not have the ability to make significant decisions relating to the entity's operations through voting rights, or do not have the obligation to absorb the expected losses, or do not have the right to receive the residual returns of the entity.The most common type of VIE is an SPE. SPEs are commonly used in securitization transactions in order to isolate certain assets and distribute the cash flows from those assets to investors. The basic SPE structure involves a company selling assets to the SPE; the SPE funds the purchase of those assets by issuing securities to investors. The legal documents that govern the transaction specify how the cash earned on the assets must be allocated to the SPE's investors and other parties that have rights to those cash flows. SPEs are generally structured to insulate investors from claims on the SPE's assets by creditors of other entities, including the creditors of the seller of the assets. The primary beneficiary of a VIE (i.e., the party that has a controlling financial interest) is required to consolidate the assets and liabilities of the VIE. The general partner or managing member, but the non-affiliated partners or members have the ability to remove the Firm as the general partner or managing member without cause (i.e., kick-out rights), based on a simple majority vote, or the non-affiliated partners or members have rights to participate in important decisions. Accordingly, the Firm does not consolidate these voting interest entities. However, in the limited cases where the non-managing partners or members do not have substantive kick-out or participating rights, the Firm evaluates the funds as VIEs and consolidates the funds if the Firm is the general partner or managing member and has both power and a potentially significant interest. The Firm's investment companies and asset management funds have investments in both publicly-held and privately-held entities, including investments in buyouts, growth equity and venture opportunities. These investments are accounted for under investment company guidelines and, accordingly, irrespective of the percentage of equity ownership interests held, are carried on the Consolidated balance sheets at fair value, and are recorded in other assets, with income or loss included in noninterest revenue. If consolidated, the Firm retains the accounting under such specialized investment company guidelines. Variable interest entities VIEs are entities that, by design, either (1) lack sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties, or (2) have equity investors that do not have the ability to make significant decisions relating to the entity's operations through voting rights, or do not have the obligation to absorb the expected losses, or do not have the right to receive the residual returns of the entity. The most common type of VIE is an SPE. SPEs are commonly used in securitization transactions in order to isolate certain assets and distribute the cash flows from those assets to investors. The basic SPE structure involves a company selling assets to the SPE; the SPE funds the purchase of those assets by issuing securities to investors. The legal documents that govern the transaction specify how the cash earned on the assets must be allocated to the SPE's investors and other parties that have rights to those cash flows. SPEs are generally structured to insulate investors from claims on the SPE's assets by creditors of other entities, including the creditors of the seller of the assets. The primary beneficiary of a VIE (i.e., the party that has a controlling financial interest) is required to consolidate the assets and liabilities of the VIE. The JPMorgan Chase & Co./2024 Form 10-K177 JPMorgan Chase & Co./2024 Form 10-K177 JPMorgan Chase & Co./2024 Form 10-K177 JPMorgan Chase & Co./2024 Form 10-K 177 --- ## Removed Risk: Notes to consolidated financial statements *This risk factor was present in the 2025 filing and has been removed.* Financial Instruments - Credit Losses: Troubled Debt Restructurings ("TDRs") The adoption of this guidance eliminated the requirement to measure the allowance for TDRs using a discounted cash flow ("DCF") methodology and allowed the option of a non-DCF portfolio-based approach for modified loans to troubled borrowers. The Firm elected this option for all portfolios of modified loans to troubled borrowers except collateral-dependent loans and nonaccrual risk-rated loans, for which the Firm elected to continue applying a DCF methodology. The adoption of this guidance under the modified retrospective method on January 1, 2023, resulted in a $446 million increase to retained earnings.Significant accounting policiesThe following table identifies JPMorganChase's other significant accounting policies and the Note and page where a detailed description of each policy can be found.Fair value measurementNote 2page 181Fair value optionNote 3page 203Derivative instrumentsNote 5page 209Noninterest revenue and noninterest expenseNote 6page 225Interest income and Interest expenseNote 7page 229Pension and other postretirement employee benefit plansNote 8page 230Employee share-based incentivesNote 9page 233Investment securitiesNote 10page 235Securities financing activitiesNote 11page 240LoansNote 12page 243Allowance for credit lossesNote 13page 266Variable interest entitiesNote 14page 271Goodwill, mortgage servicing rights, and other intangible assetsNote 15page 280Premises and equipmentNote 16page 285LeasesNote 18page 286Accounts payable & other liabilitiesNote 19page 288Long-term debtNote 20page 289Earnings per shareNote 23page 294Income taxesNote 25page 296Off-balance sheet lending-related financial instruments, guarantees and other commitmentsNote 28page 302LitigationNote 30page 309 Financial Instruments - Credit Losses: Troubled Debt Restructurings ("TDRs") The adoption of this guidance eliminated the requirement to measure the allowance for TDRs using a discounted cash flow ("DCF") methodology and allowed the option of a non-DCF portfolio-based approach for modified loans to troubled borrowers. The Firm elected this option for all portfolios of modified loans to troubled borrowers except collateral-dependent loans and nonaccrual risk-rated loans, for which the Firm elected to continue applying a DCF methodology. The adoption of this guidance under the modified retrospective method on January 1, 2023, resulted in a $446 million increase to retained earnings. --- ## Removed Risk: Valuation process *This risk factor was present in the 2025 filing and has been removed.* Risk-taking functions are responsible for providing fair value estimates for assets and liabilities carried on the Consolidated balance sheets at fair value. The Firm's Valuation Control Group ("VCG"), which is part of the Firm's Finance function and independent of the risk-taking functions, is responsible for verifying these estimates and determining any fair value adjustments that may be required to ensure that the Firm's positions are recorded at fair value. In addition, the Firm's Valuation Governance Forum ("VGF"), which is composed of senior finance and risk executives, is responsible for overseeing the management of risks arising from valuation activities conducted across the Firm. The Firmwide VGF is chaired by the Firmwide head of the VCG (under the direction of the Firm's Controller), and includes sub-forums covering the CIB, CCB, AWM and certain corporate functions including Treasury and CIO. Price verification process The VCG verifies fair value estimates provided by the risk-taking functions by leveraging independently derived prices, valuation inputs and other market data, where available. Where independent prices or inputs are not available, the VCG performs additional review to ensure the reasonableness of the estimates. The additional review may include evaluating the limited market activity including client unwinds, benchmarking valuation inputs to those used for similar instruments, decomposing the valuation of structured instruments into individual components, comparing expected to actual cash flows, reviewing profit and loss trends, and reviewing trends in collateral valuation. There are also additional levels of management review for more significant or complex positions.The VCG determines any valuation adjustments that may be required to the estimates provided by the risk-taking functions. No adjustments to quoted prices are applied for instruments classified within level 1 of the fair value hierarchy (refer to the discussion of the fair value hierarchy on page 182 for further information). For other positions, judgment is required to assess the need for valuation adjustments to appropriately reflect liquidity considerations, unobservable parameters, and, for certain portfolios that meet specified criteria, the size of the net open risk position. The determination of such adjustments follows a consistent framework across the Firm:•Liquidity valuation adjustments are considered where an observable external price or valuation parameter exists but is of lower reliability, potentially due to lower market activity. Liquidity valuation adjustments are made based on current market conditions. Factors that may be considered in determining the liquidity adjustment include analysis of: (1) the estimated bid-offer spread for the instrument being traded; (2) alternative pricing points for similar instruments in active markets; and (3) the range of reasonable values that the price or parameter could take. •The Firm manages certain portfolios of financial instruments on the basis of net open risk exposure and, as permitted by U.S. GAAP, has elected to estimate the fair value of such portfolios on the basis of a transfer of the entire net open risk position in an orderly transaction. Where this is the case, valuation adjustments may be necessary to reflect the cost of exiting a larger-than-normal market-size net open risk position. Where applied, such adjustments are head of the VCG (under the direction of the Firm's Controller), and includes sub-forums covering the CIB, CCB, AWM and certain corporate functions including Treasury and CIO. Price verification process The VCG verifies fair value estimates provided by the risk-taking functions by leveraging independently derived prices, valuation inputs and other market data, where available. Where independent prices or inputs are not available, the VCG performs additional review to ensure the reasonableness of the estimates. The additional review may include evaluating the limited market activity including client unwinds, benchmarking valuation inputs to those used for similar instruments, decomposing the valuation of structured instruments into individual components, comparing expected to actual cash flows, reviewing profit and loss trends, and reviewing trends in collateral valuation. There are also additional levels of management review for more significant or complex positions. The VCG determines any valuation adjustments that may be required to the estimates provided by the risk-taking functions. No adjustments to quoted prices are applied for instruments classified within level 1 of the fair value hierarchy (refer to the discussion of the fair value hierarchy on page 182 for further information). For other positions, judgment is required to assess the need for valuation adjustments to appropriately reflect liquidity considerations, unobservable parameters, and, for certain portfolios that meet specified criteria, the size of the net open risk position. The determination of such adjustments follows a consistent framework across the Firm: •Liquidity valuation adjustments are considered where an observable external price or valuation parameter exists but is of lower reliability, potentially due to lower market activity. Liquidity valuation adjustments are made based on current market conditions. Factors that may be considered in determining the liquidity adjustment include analysis of: (1) the estimated bid-offer spread for the instrument being traded; (2) alternative pricing points for similar instruments in active markets; and (3) the range of reasonable values that the price or parameter could take. •The Firm manages certain portfolios of financial instruments on the basis of net open risk exposure and, as permitted by U.S. GAAP, has elected to estimate the fair value of such portfolios on the basis of a transfer of the entire net open risk position in an orderly transaction. Where this is the case, valuation adjustments may be necessary to reflect the cost of exiting a larger-than-normal market-size net open risk position. Where applied, such adjustments are JPMorgan Chase & Co./2024 Form 10-K181 JPMorgan Chase & Co./2024 Form 10-K181 JPMorgan Chase & Co./2024 Form 10-K181 JPMorgan Chase & Co./2024 Form 10-K 181 --- ## Removed Risk: Total trading assets(d) *This risk factor was present in the 2025 filing and has been removed.* U.S. GSEs and government agencies(a) Other(a) Loans(e) Other assets(d) Federal funds purchased and securities loaned or sold under repurchase agreements Debt and equity instruments(c) 186JPMorgan Chase & Co./2024 Form 10-K 186JPMorgan Chase & Co./2024 Form 10-K 186JPMorgan Chase & Co./2024 Form 10-K 186 JPMorgan Chase & Co./2024 Form 10-K Fair value hierarchyDecember 31, 2023 (in millions)Level 1Level 2Level 3Derivative netting adjustments(e)Total fair valueFederal funds sold and securities purchased under resale agreements$ - $259,813 $ - $ - $259,813 Securities borrowed - 70,086 - - 70,086 Trading assets:Debt instruments:Mortgage-backed securities:U.S. GSEs and government agencies(a) - 73,840 758 - 74,598 Residential - nonagency - 1,921 5 - 1,926 Commercial - nonagency - 1,362 12 - 1,374 Total mortgage-backed securities - 77,123 775 - 77,898 U.S. Treasury, GSEs and government agencies(a)133,997 9,998 - - 143,995 Obligations of U.S. states and municipalities - 5,858 10 - 5,868 Certificates of deposit, bankers' acceptances and commercial paper - 756 - - 756 Non-U.S. government debt securities24,846 55,557 179 - 80,582 Corporate debt securities - 32,854 484 - 33,338 Loans - 7,872 684 - 8,556 Asset-backed securities - 2,199 6 - 2,205 Total debt instruments158,843 192,217 2,138 - 353,198 Equity securities107,926 679 127 - 108,732 Physical commodities(b)2,479 3,305 7 - 5,791 Other - 17,879 101 - 17,980 Total debt and equity instruments(c)269,248 214,080 2,373 - 485,701 Derivative receivables:Interest rate 2,815 243,578 4,298 (224,367)26,324 Credit - 8,644 1,010 (9,103)551 Foreign exchange149 204,737 889 (187,756)18,019 Equity - 55,167 2,522 (52,761)4,928 Commodity - 15,234 205 (10,397)5,042 Total derivative receivables2,964 527,360 8,924 (484,384)54,864 Total trading assets(d)272,212 741,440 11,297 (484,384)540,565 Available-for-sale securities:Mortgage-backed securities:U.S. GSEs and government agencies(a) - 85,170 - - 85,170 Residential - nonagency - 3,639 - - 3,639 Commercial - nonagency - 2,803 - - 2,803 Total mortgage-backed securities - 91,612 - - 91,612 U.S. Treasury and government agencies57,683 122 - - 57,805 Obligations of U.S. states and municipalities - 21,367 - - 21,367 Non-U.S. government debt securities13,095 8,187 - - 21,282 Corporate debt securities - 100 - - 100 Asset-backed securities:Collateralized loan obligations - 6,752 - - 6,752 Other(a) - 2,786 - - 2,786 Total available-for-sale securities70,778 130,926 - - 201,704 Loans(e) - 35,772 3,079 - 38,851 Mortgage servicing rights - - 8,522 - 8,522 Other assets(d)6,635 3,929 758 - 11,322 Total assets measured at fair value on a recurring basis$349,625 $1,241,966 $23,656 $(484,384)$1,130,863 Deposits$ - $76,551 $1,833 $ - $78,384 Federal funds purchased and securities loaned or sold under repurchase agreements - 169,003 - - 169,003 Short-term borrowings - 18,284 1,758 - 20,042 Trading liabilities:Debt and equity instruments(c)107,292 32,252 37 - 139,581 Derivative payables:Interest rate 4,409 232,277 3,796 (228,586)11,896 Credit - 11,293 745 (10,949)1,089 Foreign exchange147 211,289 827 (199,643)12,620 Equity - 60,887 4,924 (56,443)9,368 Commodity - 15,894 484 (10,504)5,874 Total derivative payables4,556 531,640 10,776 (506,125)40,847 Total trading liabilities111,848 563,892 10,813 (506,125)180,428 Accounts payable and other liabilities3,968 1,617 52 - 5,637 Beneficial interests issued by consolidated VIEs - 1 - - 1 Long-term debt - 60,198 27,726 - 87,924 Total liabilities measured at fair value on a recurring basis$115,816 $889,546 $42,182 $(506,125)$541,419 Derivative netting adjustments(e) U.S. GSEs and government agencies(a) U.S. Treasury, GSEs and government agencies(a) Certificates of deposit, bankers' acceptances and commercial paper Physical commodities(b) --- ## Removed Risk: Notes to consolidated financial statements *This risk factor was present in the 2025 filing and has been removed.* (c)Balances reflect the reduction of securities owned (long positions) by the amount of identical securities sold but not yet purchased (short positions). (d)Certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient are not required to be classified in the fair value hierarchy. At both December 31, 2024 and 2023, the fair values of these investments, which include certain hedge funds, private equity funds, real estate and other funds, were $1.0 billion, primarily reported in other assets. (e)As permitted under U.S. GAAP, the Firm has elected to net derivative receivables and derivative payables and the related cash collateral received and paid when a legally enforceable master netting agreement exists. The level 3 balances would be reduced if netting were applied, including the netting benefit associated with cash collateral. 188JPMorgan Chase & Co./2024 Form 10-K 188JPMorgan Chase & Co./2024 Form 10-K 188JPMorgan Chase & Co./2024 Form 10-K 188 JPMorgan Chase & Co./2024 Form 10-K --- ## Removed Risk: Notes to consolidated financial statements *This risk factor was present in the 2025 filing and has been removed.* Level 3 inputs(a) December 31, 2024Product/InstrumentFair value (in millions)Principal valuation techniqueUnobservable inputs(g)Range of input valuesAverage(i)Residential mortgage-backed securities and loans(b)$861 Discounted cash flowsYield0%103%8%Prepayment speed3%13%8%Conditional default rate0%7%0%Loss severity0%110%5%Commercial mortgage-backed securities and loans(c)1,424 Market comparablesPrice$0$90$81Corporate debt securities390 Market comparablesPrice$0$148$95Loans(d)1,730 Market comparablesPrice$0$107$79Non-U.S. government debt securities152 Market comparablesPrice$0$103$95Net interest rate derivatives293 Option pricingInterest rate volatility9bps1,097bps115bpsInterest rate spread volatility37bps77bps64bpsBermudan switch value0%45%17%Interest rate correlation(82)%97%64%IR-FX correlation(35)%60%8%8 Discounted cash flowsPrepayment speed0%21%7%Net credit derivatives(393)Discounted cash flowsCredit correlation31%79%47%Credit spread0bps2,717bps331bpsRecovery rate10%90%61%30 Market comparablesPrice$0$115$74Net foreign exchange derivatives62 Option pricingIR-FX correlation(40)%60%22%(42)Discounted cash flowsPrepayment speed11%11%Interest rate curve1%27%7%Net equity derivatives(2,866)Option pricingForward equity price(h)76%153%100%Equity volatility5%135%32%Equity correlation17%100%56%Equity-FX correlation(80)%65%(32)%Equity-IR correlation5%25%14%Net commodity derivatives(73)Option pricingOil commodity forward$87 / BBL$291 / BBL$160 / BBLNatural gas commodity forward$2 / MMBTU$7 / MMBTU$4 / MMBTUCommodity volatility2%43%5%Commodity correlation(35)%98%(9)%MSRs9,121 Discounted cash flowsRefer to Note 15Long-term debt, short-term borrowings, and deposits(e)38,901 Option pricingInterest rate volatility9bps1,097bps115bpsBermudan switch value0%45%17%Interest rate correlation(82)%97%64%IR-FX correlation(35)%60%8%Equity volatility2%137%28%Equity correlation17%100%56%Equity-FX correlation(80)%65%(32)%Equity-IR correlation5%25%14%1,324 Discounted cash flowsCredit correlation30%57%46%Credit spread2bps270bps83bpsRecovery rate20%40%35%Yield5%20%10%Loss severity0%100%50%Other level 3 assets and liabilities, net(f)1,531 --- ## Removed Risk: Changes in and ranges of unobservable inputs *This risk factor was present in the 2025 filing and has been removed.* The following discussion provides a description of the impact on a fair value measurement of a change in each unobservable input in isolation, and the interrelationship between unobservable inputs, where relevant and significant. The impact of changes in inputs may not be independent, as a change in one unobservable input may give rise to a change in another unobservable input. Where relationships do exist between two unobservable inputs, those relationships are discussed below. Relationships may also exist between observable and unobservable inputs (for example, as observable interest rates rise, unobservable prepayment rates decline); such relationships have not been included in the discussion below. In addition, for each of the individual relationships described below, the inverse relationship would also generally apply. The following discussion also provides a description of attributes of the underlying instruments and external market factors that affect the range of inputs used in the valuation of the Firm's positions. Yield - The yield of an asset is the interest rate used to discount future cash flows in a discounted cash flow calculation. An increase in the yield, in isolation, would result in a decrease in a fair value measurement. Credit spread - The credit spread is the amount of additional annualized return over the market interest rate that a market participant would demand for taking exposure to the credit risk of an instrument. The credit spread for an instrument forms part of the discount rate used in a discounted cash flow calculation. Generally, an increase in the credit spread would result in a decrease in a fair value measurement. The yield and the credit spread of a particular mortgage-backed security primarily reflect the risk inherent in the instrument. The yield is also impacted by the absolute level of the coupon paid by the instrument (which may not correspond directly to the level of inherent risk). Therefore, the range of yield and credit spreads reflects the range of risk inherent in various instruments owned by the Firm. The risk inherent in mortgage-backed securities is driven by the subordination of the security being valued and the characteristics of the underlying mortgages within the collateralized pool, including borrower FICO scores, LTV ratios for residential mortgages and the nature of the property and/or any tenants for commercial mortgages. For corporate debt securities, obligations of U.S. states and municipalities and other similar instruments, credit spreads reflect the credit quality of the obligor and the tenor of the obligation. Prepayment speed - The prepayment speed is a measure of the voluntary unscheduled principal repayments of a prepayable obligation in a collateralized pool. Prepayment speeds generally decline as borrower delinquencies rise. An increase in prepayment speeds, in isolation, would result in a decrease in a fair value measurement of assets valued at a premium to par and an increase in a fair value measurement of assets valued at a discount to par. Prepayment speeds may vary from collateral pool to collateral pool, and are driven by the type and location of the underlying borrower, and the remaining tenor of the obligation as well as the level and type (e.g., fixed or floating) of interest rate being paid by the borrower. Typically collateral pools with higher borrower credit quality have a higher prepayment rate than those with lower borrower credit quality, all other factors being equal. Conditional default rate - The conditional default rate is a measure of the reduction in the outstanding collateral balance underlying a collateralized obligation as a result of defaults. While there is typically no direct relationship between conditional default rates and prepayment speeds, collateralized obligations for which the underlying collateral has high prepayment speeds will tend to have lower conditional default rates. An increase in conditional default rates would generally be accompanied by an increase in loss severity and an increase in credit spreads. An increase in the conditional default rate, in isolation, would result in a decrease in a fair value measurement. Conditional default rates reflect the quality of the collateral underlying a securitization and the structure of the securitization itself. Based on the types of securities owned in the Firm's market-making portfolios, conditional default rates are most typically at the lower end of the range presented. Loss severity - The loss severity (the inverse concept is the recovery rate) is the expected amount of future realized losses resulting from the ultimate liquidation of a particular loan, expressed as the net amount of loss relative to the outstanding loan balance. An increase in loss severity is generally accompanied by an increase in conditional default rates. An increase in the loss severity, in isolation, would result in a decrease in a fair value measurement. The loss severity applied in valuing a mortgage-backed security depends on factors relating to the underlying mortgages, including the LTV ratio, the nature of the lender's lien on the property and other instrument-specific factors. Prepayment speed - The prepayment speed is a measure of the voluntary unscheduled principal repayments of a prepayable obligation in a collateralized pool. Prepayment speeds generally decline as borrower delinquencies rise. An increase in prepayment speeds, in isolation, would result in a decrease in a fair value measurement of assets valued at a premium to par and an increase in a fair value measurement of assets valued at a discount to par. Prepayment speeds may vary from collateral pool to collateral pool, and are driven by the type and location of the underlying borrower, and the remaining tenor of the obligation as well as the level and type (e.g., fixed or floating) of interest rate being paid by the borrower. Typically collateral pools with higher borrower credit quality have a higher prepayment rate than those with lower borrower credit quality, all other factors being equal. Conditional default rate - The conditional default rate is a measure of the reduction in the outstanding collateral balance underlying a collateralized obligation as a result of defaults. While there is typically no direct relationship between conditional default rates and prepayment speeds, collateralized obligations for which the underlying collateral has high prepayment speeds will tend to have lower conditional default rates. An increase in conditional default rates would generally be accompanied by an increase in loss severity and an increase in credit spreads. An increase in the conditional default rate, in isolation, would result in a decrease in a fair value measurement. Conditional default rates reflect the quality of the collateral underlying a securitization and the structure of the securitization itself. Based on the types of securities owned in the Firm's market-making portfolios, conditional default rates are most typically at the lower end of the range presented. Loss severity - The loss severity (the inverse concept is the recovery rate) is the expected amount of future realized losses resulting from the ultimate liquidation of a particular loan, expressed as the net amount of loss relative to the outstanding loan balance. An increase in loss severity is generally accompanied by an increase in conditional default rates. An increase in the loss severity, in isolation, would result in a decrease in a fair value measurement. The loss severity applied in valuing a mortgage-backed security depends on factors relating to the underlying mortgages, including the LTV ratio, the nature of the lender's lien on the property and other instrument-specific factors. JPMorgan Chase & Co./2024 Form 10-K191 JPMorgan Chase & Co./2024 Form 10-K191 JPMorgan Chase & Co./2024 Form 10-K191 JPMorgan Chase & Co./2024 Form 10-K 191 --- ## Removed Risk: Liabilities:(a) *This risk factor was present in the 2025 filing and has been removed.* (c)(f) (c)(f) (c)(f) (c)(f) Trading liabilities - debt and equity instruments (c) (c) Accounts payable and other liabilities (c) (c) (c)(f) (c)(f) JPMorgan Chase & Co./2024 Form 10-K193 JPMorgan Chase & Co./2024 Form 10-K193 JPMorgan Chase & Co./2024 Form 10-K193 JPMorgan Chase & Co./2024 Form 10-K 193 --- ## Removed Risk: Liabilities:(a) *This risk factor was present in the 2025 filing and has been removed.* (c)(f) (c)(f) (c)(f) (c)(f) Trading liabilities - debt and equity instruments (c) Accounts payable and other liabilities (c) (c) (c)(f) (c)(f) 194JPMorgan Chase & Co./2024 Form 10-K 194JPMorgan Chase & Co./2024 Form 10-K 194JPMorgan Chase & Co./2024 Form 10-K 194 JPMorgan Chase & Co./2024 Form 10-K Fair value measurements using significant unobservable inputsYear endedDecember 31, 2022(in millions)Fair value at Jan. 1, 2022Total realized/unrealized gains/(losses)Transfers (out of) level 3Fair value atDec. 31, 2022Change in unrealized gains/(losses) related to financial instruments held at Dec. 31, 2022Purchases(g)SalesSettlements(h)Transfers into level 3Assets:(a)Federal funds sold and securities purchased under resale agreements$ - $ - $1 $(1)$(1)$1 $ - $ - $ - Trading assets:Debt instruments:Mortgage-backed securities:U.S. GSEs and government agencies265 31 673 (125)(84)4 (5)759 29 Residential - nonagency28 (1)7 (5)(12) - (12)5 - Commercial - nonagency10 - - (1) - 3 (5)7 - Total mortgage-backed securities303 30 680 (131)(96)7 (22)771 29 Obligations of U.S. states and municipalities7 - - - - - - 7 - Non-U.S. government debt securities81 (92)494 (338)(4)84 (70)155 (153)Corporate debt securities332 (30)404 (178)(100)357 (322)463 (48)Loans708 (51)652 (605)(230)925 (640)759 (26)Asset-backed securities26 5 19 (24)(1)5 (7)23 1 Total debt instruments1,457 (138)2,249 (1,276)(431)1,378 (1,061)2,178 (197)Equity securities662 (1,036)473 (377)(2)1,066 (121)665 (840)Physical commodities - (1)3 - - - - 2 (1)Other160 93 37 - (221)1 (6)64 46 Total trading assets - debt and equity instruments2,279 (1,082)(c)2,762 (1,653)(654)2,445 (1,188)2,909 (992)(c)Net derivative receivables:(b)Interest rate(16)187 325 (483)329 732 (373)701 332 Credit74 226 17 (9)(271)5 (29)13 170 Foreign exchange(419)726 215 (114)83 3 (5)489 459 Equity(3,626)5,016 1,226 (2,530)96 (656)90 (384)3,435 Commodity(907)571 110 (331)350 5 56 (146)369 Total net derivative receivables(4,894)6,726 (c)1,893 (3,467)587 89 (261)673 4,765 (c)Available-for-sale securities:Mortgage-backed securities:Commercial - nonagency - - - - - - - - - Corporate debt securities161 5 88 - (15) - - 239 5 Total available-for-sale securities161 5 (d)88 - (15) - - 239 5 (d)Loans1,933 (158)(c)568 (261)(886)1,053 (831)1,418 (76)(c)Mortgage servicing rights5,494 2,039 (e)2,198 (822)(936) - - 7,973 2,039 (e)Other assets306 194 (c)50 (38)(103)2 (6)405 191 (c)Fair value measurements using significant unobservable inputsYear endedDecember 31, 2022(in millions)Fair value at Jan. 1, 2022Total realized/unrealized (gains)/lossesTransfers into level 3Transfers (out of) level 3Fair value atDec. 31, 2022Change in unrealized (gains)/losses related to financial instruments held at Dec. 31, 2022PurchasesSalesIssuancesSettlements(h)Liabilities:(a)Deposits$2,317 $(292)(c)(f)$ - $ - $531 $(114)$ - $(280)$2,162 $(76)(c)(f)Short-term borrowings2,481 (358)(c)(f) - - 3,963 (4,685)15 (15)1,401 90 (c)(f)Trading liabilities - debt and equity instruments30 (31)(c)(41)77 - - 57 (8)84 101 (c)Accounts payable and other liabilities69 (16)(c)(37)42 - - 1 (6)53 (16)(c)Long-term debt24,374 (3,869)(c)(f) - - 12,714 (8,876)793 (1,044)24,092 (3,447)(c)(f) Fair value at Jan. 1, 2022 Purchases(g) Settlements(h) --- ## Removed Risk: Liabilities:(a) *This risk factor was present in the 2025 filing and has been removed.* (c)(f) (c)(f) (c)(f) (c)(f) Trading liabilities - debt and equity instruments (c) (c) Accounts payable and other liabilities (c) (c) (c)(f) (c)(f) JPMorgan Chase & Co./2024 Form 10-K195 JPMorgan Chase & Co./2024 Form 10-K195 JPMorgan Chase & Co./2024 Form 10-K195 JPMorgan Chase & Co./2024 Form 10-K 195 --- ## Removed Risk: Notes to consolidated financial statements *This risk factor was present in the 2025 filing and has been removed.* Credit and funding adjustments - derivativesDerivatives are generally valued using models that use as their basis observable market parameters. These market parameters generally do not consider factors such as counterparty nonperformance risk, the Firm's own credit quality, and funding costs. Therefore, it is generally necessary to make adjustments to the base estimate of fair value to reflect these factors.CVA represents the adjustment, relative to the relevant benchmark interest rate, necessary to reflect counterparty nonperformance risk. The Firm estimates CVA using a scenario analysis to estimate the expected positive credit exposure across all of the Firm's existing positions with each counterparty, and then estimates losses based on the probability of default and estimated recovery rate as a result of a counterparty credit event considering contractual factors designed to mitigate the Firm's credit exposure, such as collateral and legal rights of offset. The key inputs to this methodology are (i) the probability of a default event occurring for each counterparty, as derived from observed or estimated CDS spreads; and (ii) estimated recovery rates implied by CDS spreads, adjusted to consider the differences in recovery rates as a derivative creditor relative to those reflected in CDS spreads, which generally reflect senior unsecured creditor risk.FVA represents the adjustment to reflect the impact of funding and is recognized where there is evidence that a market participant in the principal market would incorporate it in a transfer of the instrument. The Firm's FVA framework, applied to uncollateralized (including partially collateralized) over-the-counter ("OTC") derivatives incorporates key inputs such as: (i) the expected funding requirements arising from the Firm's positions with each counterparty and collateral arrangements; and (ii) the estimated market funding cost in the principal market which, for derivative liabilities, considers the Firm's credit risk (DVA). For collateralized derivatives, the fair value is estimated by discounting expected future cash flows at the relevant overnight indexed swap rate given the underlying collateral agreement with the counterparty, and therefore a separate FVA is not necessary.The following table provides the impact of credit and funding adjustments on principal transactions revenue in the respective periods, excluding the effect of any associated hedging activities. The FVA presented below includes the impact of the Firm's own credit quality on the inception value of liabilities as well as the impact of changes in the Firm's own credit quality over time.Year ended December 31, (in millions)202420232022Credit and funding adjustments:Derivatives CVA$29 $221 $22 Derivatives FVA99 114 42 Valuation adjustments on fair value option elected liabilitiesThe valuation of the Firm's liabilities for which the fair value option has been elected requires consideration of the Firm's own credit risk. DVA on fair value option elected liabilities reflects changes (subsequent to the issuance of the liability) in the Firm's probability of default and LGD, which are estimated based on changes in the Firm's credit spread observed in the bond market. Realized (gains)/losses due to DVA for fair value option elected liabilities are reported in principal transactions revenue. Unrealized (gains)/losses are reported in OCI. Refer to page 196 in this Note and Note 24 for further information. Credit and funding adjustments - derivativesDerivatives are generally valued using models that use as their basis observable market parameters. These market parameters generally do not consider factors such as counterparty nonperformance risk, the Firm's own credit quality, and funding costs. Therefore, it is generally necessary to make adjustments to the base estimate of fair value to reflect these factors.CVA represents the adjustment, relative to the relevant benchmark interest rate, necessary to reflect counterparty nonperformance risk. The Firm estimates CVA using a scenario analysis to estimate the expected positive credit exposure across all of the Firm's existing positions with each counterparty, and then estimates losses based on the probability of default and estimated recovery rate as a result of a counterparty credit event considering contractual factors designed to mitigate the Firm's credit exposure, such as collateral and legal rights of offset. The key inputs to this methodology are (i) the probability of a default event occurring for each counterparty, as derived from observed or estimated CDS spreads; and (ii) estimated recovery rates implied by CDS spreads, adjusted to consider the differences in recovery rates as a derivative creditor relative to those reflected in CDS spreads, which generally reflect senior unsecured creditor risk.FVA represents the adjustment to reflect the impact of funding and is recognized where there is evidence that a market participant in the principal market would incorporate it in a transfer of the instrument. The Firm's FVA framework, applied to uncollateralized (including partially collateralized) over-the-counter ("OTC") derivatives incorporates key inputs such as: (i) the expected funding requirements arising from the Firm's positions with each counterparty and collateral arrangements; and (ii) the estimated market funding cost in the principal market which, for derivative liabilities, considers the Firm's credit risk (DVA). For collateralized derivatives, the fair value is estimated by discounting expected future cash flows at the relevant overnight indexed swap rate given the underlying collateral agreement with the counterparty, and therefore a separate FVA is not necessary. --- ## Removed Risk: Notes to consolidated financial statements *This risk factor was present in the 2025 filing and has been removed.* The majority of the Firm's lending-related commitments are not carried at fair value on a recurring basis on the Consolidated balance sheets. The carrying value and the estimated fair value of these wholesale lending-related commitments were as follows for the periods indicated. December 31, 2024December 31, 2023Estimated fair value hierarchyEstimated fair value hierarchy(in billions)Carrying value(a)(b)(c)Level 1Level 2Level 3Total estimated fair valueCarrying value(a)(b)(c)Level 1Level 2Level 3Total estimated fair valueWholesale lending-related commitments$2.7 $ - $ - $4.4 $4.4 $3.0 $ - $ - $4.8 $4.8 Carrying value(a)(b)(c) Carrying value(a)(b)(c) Wholesale lending-related commitments (a)Excludes the current carrying values of the guarantee liability and the offsetting asset, each of which is recognized at fair value at the inception of the guarantees. (b)Includes the wholesale allowance for lending-related commitments. (c)As of December 31, 2024 and 2023, included fair value adjustments associated with First Republic for other unfunded commitments to extend credit totaling $699 million and $1.1 billion, respectively, recorded in accounts payable and other liabilities on the Consolidated balance sheets. Refer to Notes 28 and 34 for additional information. The Firm does not estimate the fair value of consumer off-balance sheet lending-related commitments. In many cases, the Firm can reduce or cancel these commitments with or without notice to the borrower, as permitted by law, or in accordance with the contract. Refer to page 183 of this Note for a further discussion of the valuation of lending-related commitments. 202JPMorgan Chase & Co./2024 Form 10-K 202JPMorgan Chase & Co./2024 Form 10-K 202JPMorgan Chase & Co./2024 Form 10-K 202 JPMorgan Chase & Co./2024 Form 10-K --- ## Removed Risk: Notes to consolidated financial statements *This risk factor was present in the 2025 filing and has been removed.* The table below presents both on-balance sheet and off-balance sheet consumer and wholesale credit exposure by the Firm's three credit portfolio segments as of December 31, 2024 and 2023. The wholesale industry of risk category is generally based on the client or counterparty's primary business activity. 20242023Credit exposure(h)On-balance sheetOff-balance sheet(i)Credit exposure(h)On-balance sheetOff-balance sheet(i)December 31, (in millions)LoansDerivativesLoansDerivativesConsumer, excluding credit card$437,654 $392,810 $ - $44,844 $455,496 $410,093 $ - $45,403 Credit card(a)1,234,171 232,860 - 1,001,311 1,126,781 211,123 - 915,658 Total consumer(a)1,671,825 625,670 - 1,046,155 1,582,277 621,216 - 961,061 Wholesale(b)Real Estate207,050 169,506 310 37,234 208,261 166,372 420 41,469 Individuals and Individual Entities(c)144,145 130,317 1,259 12,569 145,849 126,339 725 18,785 Asset Managers135,541 58,720 15,695 61,126 129,574 52,178 9,925 67,471 Consumer & Retail129,815 46,509 1,608 81,698 127,086 46,274 2,013 78,799 Technology, Media & Telecommunications84,716 21,449 2,448 60,819 77,296 22,450 2,451 52,395 Industrials72,530 24,011 2,035 46,484 75,092 26,548 1,335 47,209 Healthcare64,224 23,243 616 40,365 65,025 23,169 1,577 40,279 Banks & Finance Companies61,287 40,239 3,890 17,158 57,177 33,941 2,898 20,338 Utilities35,871 6,172 2,631 27,068 36,061 7,067 3,396 25,598 State & Municipal Govt(d)35,039 19,279 372 15,388 35,986 20,019 442 15,525 Automotive34,336 17,696 794 15,846 33,977 17,459 428 16,090 Oil & Gas31,724 7,226 1,153 23,345 34,475 8,480 705 25,290 Insurance24,267 2,533 9,703 12,031 20,501 2,535 7,138 10,828 Chemicals & Plastics20,782 6,176 267 14,339 20,773 6,458 441 13,874 Transportation17,019 5,380 769 10,870 16,060 5,080 555 10,425 Metals & Mining15,860 4,425 564 10,871 15,508 4,655 274 10,579 Central Govt13,862 4,715 6,285 2,862 17,704 5,463 10,669 1,572 Securities Firms9,443 1,878 3,197 4,368 8,689 865 3,285 4,539 Financial Markets Infrastructure4,446 16 2,410 2,020 4,251 86 2,155 2,010 All other(e)140,873 100,906 4,961 35,006 134,777 97,034 4,032 33,711 Subtotal1,282,830 690,396 60,967 531,467 1,264,122 672,472 54,864 536,786 Loans held-for-sale and loans at fair value31,922 31,922 - - 30,018 30,018 - - Receivables from customers(f)51,929 - - - 47,625 - - - Total wholesale1,366,681 722,318 60,967 531,467 1,341,765 702,490 54,864 536,786 Total exposure(g)$3,038,506 $1,347,988 $60,967 $1,577,622 $2,924,042 $1,323,706 $54,864 $1,497,847 Credit exposure(h) Off-balance sheet(i) Credit exposure(h) Off-balance sheet(i) --- ## Removed Risk: Accounting for derivatives *This risk factor was present in the 2025 filing and has been removed.* All free-standing derivatives that the Firm executes for its own account are required to be recorded on the Consolidated balance sheets at fair value. As permitted under U.S. GAAP, the Firm nets derivative assets and liabilities, and the related cash collateral receivables and payables, when a legally enforceable master netting agreement exists between the Firm and the derivative counterparty. Refer to Note 1 for further discussion of the offsetting of assets and liabilities. The accounting for changes in value of a derivative depends on whether or not the transaction has been designated and qualifies for hedge accounting. Derivatives that are not designated as hedges are reported and measured at fair value through earnings. The tabular disclosures on pages 213-221 of this Note provide additional information on the amount of, and reporting for, derivative assets, liabilities, gains and losses. Refer to Notes 2 and 3 for a further discussion of derivatives embedded in structured notes. JPMorgan Chase & Co./2024 Form 10-K209 JPMorgan Chase & Co./2024 Form 10-K209 JPMorgan Chase & Co./2024 Form 10-K209 JPMorgan Chase & Co./2024 Form 10-K 209 --- ## Removed Risk: Net amounts *This risk factor was present in the 2025 filing and has been removed.* JPMorgan Chase & Co./2024 Form 10-K215 JPMorgan Chase & Co./2024 Form 10-K215 JPMorgan Chase & Co./2024 Form 10-K215 JPMorgan Chase & Co./2024 Form 10-K 215 --- ## Removed Risk: Notes to consolidated financial statements *This risk factor was present in the 2025 filing and has been removed.* Cash flow hedge gains and losses The following tables present derivative instruments, by contract type, used in cash flow hedge accounting relationships, and the pre-tax gains/(losses) recorded on such derivatives, for the years ended December 31, 2024, 2023 and 2022, respectively. The Firm includes the gains/(losses) on the hedging derivative in the same line item in the Consolidated statements of income as the change in cash flows on the related hedged item. Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)Year ended December 31, 2024(in millions)Amounts reclassifiedfrom AOCI to incomeAmounts recordedin OCITotal changein OCI for periodContract typeInterest rate(a)$(2,668)$(3,603)$(935)Foreign exchange(b)89 (139)(228)Total$(2,579)$(3,742)$(1,163) Total change in OCI for period Interest rate(a) Foreign exchange(b) Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)Year ended December 31, 2023(in millions)Amounts reclassifiedfrom AOCI to incomeAmounts recordedin OCITotal change in OCI for periodContract typeInterest rate(a)$(1,839)$274 $2,113 Foreign exchange(b)64 209 145 Total$(1,775)$483 $2,258 Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)Year ended December 31, 2022(in millions)Amounts reclassifiedfrom AOCI to incomeAmounts recordedin OCITotal change in OCI for periodContract typeInterest rate(a)$(153)$(7,131)$(6,978)Foreign exchange(b)(267)(342)(75)Total$(420)$(7,473)$(7,053) Total change in OCI for period Interest rate(a) Foreign exchange(b) Total change in OCI for period Interest rate(a) Foreign exchange(b) (a)Primarily consists of hedges of SOFR-indexed floating-rate assets. Gains and losses were recorded in net interest income. (b)Primarily consists of hedges of the foreign currency risk of non-U.S. dollar-denominated revenue and expense. The income statement classification of gains and losses follows the hedged item - primarily noninterest revenue and compensation expense. The Firm did not experience any forecasted transactions that failed to occur for the years ended 2024, 2023 and 2022. Over the next 12 months, the Firm expects that approximately $(1.6) billion (after-tax) of net losses recorded in AOCI at December 31, 2024, related to cash flow hedges will be recognized in income. For cash flow hedges that have been terminated, the maximum length of time over which the derivative results recorded in AOCI will be recognized in earnings is approximately seven years, corresponding to the timing of the originally hedged forecasted cash flows. For open cash flow hedges, the maximum length of time over which forecasted transactions are hedged is approximately seven years. The Firm's longer-dated forecasted transactions relate to core lending and borrowing activities. 220JPMorgan Chase & Co./2024 Form 10-K 220JPMorgan Chase & Co./2024 Form 10-K 220JPMorgan Chase & Co./2024 Form 10-K 220 JPMorgan Chase & Co./2024 Form 10-K Net investment hedge gains and losses The following table presents hedging instruments, by contract type, that were used in net investment hedge accounting relationships, and the pre-tax gains/(losses) recorded on such instruments for the years ended December 31, 2024, 2023 and 2022. 202420232022Year ended December 31,(in millions)Amounts recorded in income(a)(b)Amounts recorded in OCI Amounts recorded in income(a)(b)Amounts recorded inOCIAmounts recorded in income(a)(b)Amounts recorded inOCIForeign exchange derivatives$467$4,411$384$(1,732)$(123)$3,591 Amounts recorded in income(a)(b) Amounts recorded in income(a)(b) Amounts recorded in income(a)(b) (a)Certain components of hedging derivatives are permitted to be excluded from the assessment of hedge effectiveness, such as forward points on foreign exchange forward contracts. The Firm elects to record changes in fair value of these amounts directly in other income. (b)Excludes amounts reclassified from AOCI to income on the sale or liquidation of hedged entities. During the year ended December 31, 2024, the Firm reclassified a net pre-tax gain of $89 million to other income/expense. During the year ended December 31, 2023, the Firm reclassified a net pre-tax loss of $(35) million to other revenue including the impact of the acquisition of CIFM. During the year ended December 31, 2022, the Firm reclassified net pre-tax gains of $38 million to other income/expense related to the liquidation of certain legal entities. Refer to Note 24 for further information. Gains and losses on derivatives used for specified risk management purposes The following table presents pre-tax gains/(losses) recorded on a limited number of derivatives, not designated in hedge accounting relationships, that are used to manage risks associated with certain specified assets and liabilities, including certain risks arising from mortgage commitments, warehouse loans, MSRs, wholesale lending exposures, and foreign currency denominated assets and liabilities. Derivatives gains/(losses) recorded in incomeYear ended December 31, (in millions)202420232022Contract typeInterest rate(a)$(425)$(135)$(827)Credit(b)(604)(441)51 Foreign exchange(c)(10)(2)(48)Total$(1,039)$(578)$(824)(a)Primarily represents interest rate derivatives used to hedge the interest rate risk inherent in mortgage commitments, warehouse loans and MSRs, as well as written commitments to originate warehouse loans. Gains and losses were recorded predominantly in mortgage fees and related income.(b)Relates to credit derivatives used to mitigate credit risk associated with lending exposures in the Firm's wholesale businesses. These derivatives do not include credit derivatives used to mitigate counterparty credit risk arising from derivative receivables, which is included in gains and losses on derivatives related to market-making activities and other derivatives. Gains and losses were recorded in principal transactions revenue.(c)Primarily relates to derivatives used to mitigate foreign exchange risk of specified foreign currency-denominated assets and liabilities. Gains and losses were recorded in principal transactions revenue.Gains and losses on derivatives related to market-making activities and other derivatives The Firm makes markets in derivatives in order to meet the needs of customers and uses derivatives to manage certain risks associated with net open risk positions from its market-making activities, including the counterparty credit risk arising from derivative receivables. All derivatives not included in the hedge accounting or specified risk management categories above are included in this category. Gains and losses on these derivatives are primarily recorded in principal transactions revenue. Refer to Note 6 for information on principal transactions revenue. Gains and losses on derivatives used for specified risk management purposes The following table presents pre-tax gains/(losses) recorded on a limited number of derivatives, not designated in hedge accounting relationships, that are used to manage risks associated with certain specified assets and liabilities, including certain risks arising from mortgage commitments, warehouse loans, MSRs, wholesale lending exposures, and foreign currency denominated assets and liabilities. Derivatives gains/(losses) recorded in incomeYear ended December 31, (in millions)202420232022Contract typeInterest rate(a)$(425)$(135)$(827)Credit(b)(604)(441)51 Foreign exchange(c)(10)(2)(48)Total$(1,039)$(578)$(824)(a)Primarily represents interest rate derivatives used to hedge the interest rate risk inherent in mortgage commitments, warehouse loans and MSRs, as well as written commitments to originate warehouse loans. Gains and losses were recorded predominantly in mortgage fees and related income.(b)Relates to credit derivatives used to mitigate credit risk associated with lending exposures in the Firm's wholesale businesses. These derivatives do not include credit derivatives used to mitigate counterparty credit risk arising from derivative receivables, which is included in gains and losses on derivatives related to market-making activities and other derivatives. Gains and losses were recorded in principal transactions revenue.(c)Primarily relates to derivatives used to mitigate foreign exchange risk of specified foreign currency-denominated assets and liabilities. Gains and losses were recorded in principal transactions revenue. Gains and losses on derivatives used for specified risk management purposes The following table presents pre-tax gains/(losses) recorded on a limited number of derivatives, not designated in hedge accounting relationships, that are used to manage risks associated with certain specified assets and liabilities, including certain risks arising from mortgage commitments, warehouse loans, MSRs, wholesale lending exposures, and foreign currency denominated assets and liabilities. Derivatives gains/(losses) recorded in incomeYear ended December 31, (in millions)202420232022Contract typeInterest rate(a)$(425)$(135)$(827)Credit(b)(604)(441)51 Foreign exchange(c)(10)(2)(48)Total$(1,039)$(578)$(824) Interest rate(a) Credit(b) Foreign exchange(c) (a)Primarily represents interest rate derivatives used to hedge the interest rate risk inherent in mortgage commitments, warehouse loans and MSRs, as well as written commitments to originate warehouse loans. Gains and losses were recorded predominantly in mortgage fees and related income. (b)Relates to credit derivatives used to mitigate credit risk associated with lending exposures in the Firm's wholesale businesses. These derivatives do not include credit derivatives used to mitigate counterparty credit risk arising from derivative receivables, which is included in gains and losses on derivatives related to market-making activities and other derivatives. Gains and losses were recorded in principal transactions revenue. (c)Primarily relates to derivatives used to mitigate foreign exchange risk of specified foreign currency-denominated assets and liabilities. Gains and losses were recorded in principal transactions revenue. Gains and losses on derivatives related to market-making activities and other derivatives The Firm makes markets in derivatives in order to meet the needs of customers and uses derivatives to manage certain risks associated with net open risk positions from its market-making activities, including the counterparty credit risk arising from derivative receivables. All derivatives not included in the hedge accounting or specified risk management categories above are included in this category. Gains and losses on these derivatives are primarily recorded in principal transactions revenue. Refer to Note 6 for information on principal transactions revenue. Gains and losses on derivatives related to market-making activities and other derivatives The Firm makes markets in derivatives in order to meet the needs of customers and uses derivatives to manage certain risks associated with net open risk positions from its market-making activities, including the counterparty credit risk arising from derivative receivables. All derivatives not included in the hedge accounting or specified risk management categories above are included in this category. Gains and losses on these derivatives are primarily recorded in principal transactions revenue. Refer to Note 6 for information on principal transactions revenue. JPMorgan Chase & Co./2024 Form 10-K221 JPMorgan Chase & Co./2024 Form 10-K221 JPMorgan Chase & Co./2024 Form 10-K221 JPMorgan Chase & Co./2024 Form 10-K 221 --- ## Removed Risk: Notes to consolidated financial statements *This risk factor was present in the 2025 filing and has been removed.* The following tables summarize the notional amounts by the ratings, maturity profile, and total fair value, of credit derivatives as of December 31, 2024 and 2023, where JPMorganChase is the seller of protection. The maturity profile is based on the remaining contractual maturity of the credit derivative contracts. The ratings profile is based on the rating of the reference entity on which the credit derivative contract is based. The ratings and maturity profile of credit derivatives where JPMorganChase is the purchaser of protection are comparable to the profile reflected below. --- ## Removed Risk: Principal transactions *This risk factor was present in the 2025 filing and has been removed.* Principal transactions revenue is driven by many factors, including: •the bid-offer spread, which is the difference between the price at which a market participant is willing and able to sell an instrument to the Firm and the price at which another market participant is willing and able to buy it from the Firm, and vice versa; and •realized and unrealized gains and losses on financial instruments and commodities transactions, including those accounted for under the fair value option, primarily used in client-driven market-making activities. -Realized gains and losses result from the sale of instruments, closing out or termination of transactions, or interim cash payments. -Unrealized gains and losses result from changes in valuation. In connection with its client-driven market-making activities, the Firm transacts in debt and equity instruments, derivatives and commodities, including physical commodities inventories and financial instruments that reference commodities. Principal transactions revenue also includes realized and unrealized gains and losses related to: •derivatives designated in qualifying hedge accounting relationships, primarily fair value hedges of commodity and foreign exchange risk; •derivatives used for specific risk management purposes, primarily to mitigate credit, foreign exchange and interest rate risks. Refer to Note 5 for further information on the income statement classification of gains and losses from derivatives activities. In the financial commodity markets, the Firm transacts in OTC derivatives (e.g., swaps, forwards, options) and ETD that reference a wide range of underlying commodities. In the physical commodity markets, the Firm primarily purchases and sells precious and base metals, natural gas, and may hold other commodities inventories under financing and other arrangements with clients. The following table presents all realized and unrealized gains and losses recorded in principal transactions revenue. This table excludes interest income and interest expense on trading assets and liabilities, which are an integral part of the overall performance of the Firm's client-driven market-making activities in CIB and fund deployment activities in Treasury and CIO. Refer to Note 7 for further information on interest income and interest expense. Trading revenue is presented primarily by instrument type. The Firm's client-driven market-making businesses generally utilize a variety of instrument JPMorgan Chase & Co./2024 Form 10-K225 JPMorgan Chase & Co./2024 Form 10-K225 JPMorgan Chase & Co./2024 Form 10-K225 JPMorgan Chase & Co./2024 Form 10-K 225 --- ## Removed Risk: Notes to consolidated financial statements *This risk factor was present in the 2025 filing and has been removed.* Other incomeThis revenue category includes operating lease income, as well as losses associated with the Firm's tax-oriented investments, predominantly alternative energy equity-method investments in CIB. The losses associated with these tax-oriented investments are more than offset by lower income tax expense from the associated tax credits.The following table presents certain components of other income:Year ended December 31, (in millions)202420232022Operating lease income$2,795 $2,843 $3,654 Losses on tax-oriented investments(97)(1,538)(1,491)Gain on Visa shares7,990 (b) - 914 (c)Estimated bargain purchase gain associated with the First Republic acquisition103 2,775 - Gain related to the acquisition of CIFM (a) - 339 - (a) Gain on the original minority interest in CIFM upon the Firm's acquisition of the remaining 51% of the entity.(b) Relates to the initial gain recognized on May 6, 2024 on the Visa C shares. Refer to Note 2 for additional information.(c) Relates to the sale of Visa B shares.Refer to Note 18 for additional information on operating leases.Proportional Amortization Method: Effective January 1, 2024, as a result of adopting updates to the Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method guidance, the amortization of certain of the Firm's alternative energy tax-oriented investments that was previously recognized in other income is now recognized in income tax expense, which aligns with the associated tax credits and other tax benefits. Refer to Notes 1, 14 and 25 for additional information.Noninterest expenseOther expense Other expense on the Firm's Consolidated statements of income included: Year ended December 31, (in millions)202420232022Legal expense$740 $1,436 $266 FDIC-related expense 1,893 (c)4,203 (c)860 Operating losses1,417 1,228 1,101 Contribution of Visa shares(a)1,000 - - First Republic-related expense(b)777 1,060 - (a) Represents the contribution of a portion of Visa C shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024. Refer to Note 2 for additional information.(b) Reflects the expenses classified within other expense, including $488 million and $360 million of integration and restructuring costs associated with First Republic for the full years ended December 31, 2024 and 2023, respectively. Additionally, the second quarter of 2023 included payments to the FDIC for the First Republic individuals who were not employees of the Firm until July 2, 2023. Refer to Note 34 for additional information on the First Republic acquisition.(c) The first quarter of 2024 included an increase of $725 million to the FDIC special assessment reflecting the FDIC's revised estimate of Deposit Insurance Fund losses. The fourth quarter of 2023 included the $2.9 billion FDIC special assessment.Refer to Note 32 for additional information on noninterest revenue and expense by segment. Other incomeThis revenue category includes operating lease income, as well as losses associated with the Firm's tax-oriented investments, predominantly alternative energy equity-method investments in CIB. The losses associated with these tax-oriented investments are more than offset by lower income tax expense from the associated tax credits.The following table presents certain components of other income:Year ended December 31, (in millions)202420232022Operating lease income$2,795 $2,843 $3,654 Losses on tax-oriented investments(97)(1,538)(1,491)Gain on Visa shares7,990 (b) - 914 (c)Estimated bargain purchase gain associated with the First Republic acquisition103 2,775 - Gain related to the acquisition of CIFM (a) - 339 - (a) Gain on the original minority interest in CIFM upon the Firm's acquisition of the remaining 51% of the entity.(b) Relates to the initial gain recognized on May 6, 2024 on the Visa C shares. Refer to Note 2 for additional information.(c) Relates to the sale of Visa B shares.Refer to Note 18 for additional information on operating leases.Proportional Amortization Method: Effective January 1, 2024, as a result of adopting updates to the Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method guidance, the amortization of certain of the Firm's alternative energy tax-oriented investments that was previously recognized in other income is now recognized in income tax expense, which aligns with the associated tax credits and other tax benefits. Refer to Notes 1, 14 and 25 for additional information. --- ## Removed Risk: Defined benefit pension and OPEB plans assets and liabilities measured at fair value *This risk factor was present in the 2025 filing and has been removed.* Level 1(a) Level 2(b) Level 3(c) Level 1(a) Level 2(b) Level 3(c) Assets measured at fair value classified in the fair value hierarchy Assets measured at fair value using NAV as a practical expedient Net defined benefit pension plan payables (a) Consists predominantly of equity securities, U.S. federal, state, and local and non-U.S. government debt securities, and cash equivalents. (b) Consists of corporate debt securities, fund investments, mortgage-backed securities, and U.S. federal, state, and local and non-U.S. government debt securities. (c) Consists predominantly of corporate-owned life insurance policies. JPMorgan Chase & Co./2024 Form 10-K231 JPMorgan Chase & Co./2024 Form 10-K231 JPMorgan Chase & Co./2024 Form 10-K231 JPMorgan Chase & Co./2024 Form 10-K 231 --- ## Removed Risk: Notes to consolidated financial statements *This risk factor was present in the 2025 filing and has been removed.* The amortized costs and estimated fair values of the investment securities portfolio were as follows for the dates indicated. 20242023December 31, (in millions)Amortized cost(d)(e)Gross unrealized gainsGross unrealized lossesFair valueAmortized cost(d)(e)Gross unrealized gainsGross unrealized lossesFair valueAvailable-for-sale securitiesMortgage-backed securities:U.S. GSEs and government agencies$95,671 $251 $4,029 $91,893 $88,377 $870 $4,077 $85,170 Residential:U.S.4,242 16 50 4,208 2,086 10 68 2,028 Non-U.S.600 3 - 603 1,608 4 1 1,611 Commercial4,115 20 70 4,065 2,930 12 139 2,803 Total mortgage-backed securities104,628 290 4,149 100,769 95,001 896 4,285 91,612 U.S. Treasury and government agencies235,495 545 1,261 234,779 58,051 276 522 57,805 Obligations of U.S. states and municipalities18,337 110 534 17,913 21,243 390 266 21,367 Non-U.S. government debt securities36,655 94 504 36,245 21,387 254 359 21,282 Corporate debt securities71 - 1 70 128 - 28 100 Asset-backed securities:Collateralized loan obligations14,887 59 3 14,943 6,769 11 28 6,752 Other2,125 17 9 2,133 2,804 8 26 2,786 Unallocated portfolio layer fair value basis adjustments(a)(1,153) - (1,153)NA73 (73) - NATotal available-for-sale securities411,045 1,115 5,308 406,852 205,456 1,762 5,514 201,704 Held-to-maturity securities(b)Mortgage-backed securities:U.S. GSEs and government agencies97,177 6 13,531 83,652 105,614 39 11,643 94,010 U.S. Residential8,605 4 904 7,705 9,709 4 970 8,743 Commercial8,817 24 389 8,452 10,534 13 581 9,966 Total mortgage-backed securities114,599 34 14,824 99,809 125,857 56 13,194 112,719 U.S. Treasury and government agencies108,632 - 11,212 97,420 173,666 - 13,074 160,592 Obligations of U.S. states and municipalities9,310 32 631 8,711 9,945 74 591 9,428 Asset-backed securities:Collateralized loan obligations40,573 84 14 40,643 58,565 47 352 58,260 Other1,354 2 39 1,317 1,815 1 61 1,755 Total held-to-maturity securities(c)274,468 152 26,720 247,900 369,848 178 27,272 342,754 Total investment securities, net of allowance for credit losses$685,513 $1,267 $32,028 $654,752 $575,304 $1,940 $32,786 $544,458 Amortized cost(d)(e) Amortized cost(d)(e) Unallocated portfolio layer fair value basis adjustments(a) --- ## Removed Risk: AFS securities impairment *This risk factor was present in the 2025 filing and has been removed.* The following tables present the fair value and gross unrealized losses by aging category for AFS securities at December 31, 2024 and 2023. The tables exclude U.S. Treasury and government agency securities and U.S. GSE and government agency MBS with unrealized losses of $5.3 billion and $4.6 billion, at December 31, 2024 and 2023, respectively; changes in the value of these securities are generally driven by changes in interest rates rather than changes in their credit profile given the explicit or implicit guarantees provided by the U.S. government. Available-for-sale securities with gross unrealized lossesLess than 12 months12 months or moreYear ended December 31, 2024(in millions)Fair valueGross unrealized lossesFair valueGross unrealized lossesTotal fair valueTotal gross unrealized lossesAvailable-for-sale securitiesMortgage-backed securities:Residential:U.S.$1,505 $6 $925 $44 $2,430 $50 Non-U.S. - - 30 - 30 - Commercial763 8 1,184 62 1,947 70 Total mortgage-backed securities2,268 14 2,139 106 4,407 120 Obligations of U.S. states and municipalities10,037 233 2,412 301 12,449 534 Non-U.S. government debt securities14,234 234 4,184 270 18,418 504 Corporate debt securities9 - 30 1 39 1 Asset-backed securities:Collateralized loan obligations2 - 375 3 377 3 Other214 1 200 8 414 9 Total available-for-sale securities with gross unrealized losses$26,764 $482 $9,340 $689 $36,104 $1,171 Available-for-sale securities with gross unrealized lossesLess than 12 months12 months or moreYear ended December 31, 2023(in millions)Fair valueGross unrealized lossesFair valueGross unrealized lossesTotal fair valueTotal gross unrealized lossesAvailable-for-sale securitiesMortgage-backed securities:Residential:U.S.$81 $ - $1,160 $68 $1,241 $68 Non-U.S. - - 722 1 722 1 Commercial228 3 1,775 136 2,003 139 Total mortgage-backed securities309 3 3,657 205 3,966 208 Obligations of U.S. states and municipalities2,134 20 2,278 246 4,412 266 Non-U.S. government debt securities7,145 23 4,987 336 12,132 359 Corporate debt securities9 - 79 28 88 28 Asset-backed securities:Collateralized loan obligations932 2 3,744 26 4,676 28 Other208 1 1,288 25 1,496 26 Total available-for-sale securities with gross unrealized losses$10,737 $49 $16,033 $866 $26,770 $915 JPMorgan Chase & Co./2024 Form 10-K237 JPMorgan Chase & Co./2024 Form 10-K237 JPMorgan Chase & Co./2024 Form 10-K237 JPMorgan Chase & Co./2024 Form 10-K 237 --- ## Removed Risk: Notes to consolidated financial statements *This risk factor was present in the 2025 filing and has been removed.* The tables below present as of December 31, 2024 and 2023 the types of financial assets pledged in securities financing agreements and the remaining contractual maturity of the securities financing agreements. Gross liability balance20242023December 31, (in millions)Securities sold under repurchase agreementsSecurities loaned and otherSecurities sold under repurchase agreementsSecurities loaned and otherMortgage-backed securities:U.S. GSEs and government agencies$82,645 $ - $71,064 $ - Residential - nonagency2,610 - 2,292 - Commercial - nonagency2,344 - 2,669 - U.S. Treasury, GSEs and government agencies300,022 759 216,467 1,034 Obligations of U.S. states and municipalities1,872 - 2,323 - Non-U.S. government debt117,614 1,852 97,400 1,455 Corporate debt securities44,495 4,033 39,247 2,025 Asset-backed securities4,619 - 2,703 - Equity securities47,462 52,345 25,820 47,628 Total$603,683 $58,989 $459,985 $52,142 Total Remaining contractual maturity of the agreementsDecember 31, 2024(in millions)Overnight and continuousUp to 30 days30 - 90 daysGreater than 90 daysTotalTotal securities sold under repurchase agreements$308,392 $171,346 $19,932 $104,013 $603,683 Total securities loaned and other54,066 1,463 1 3,459 58,989 --- ## Removed Risk: Loans held-for-investment *This risk factor was present in the 2025 filing and has been removed.* Originated or purchased loans held-for-investment, including PCD, are recorded at amortized cost, reflecting the principal amount outstanding, net of the following: unamortized deferred loan fees, costs, premiums or discounts; charge-offs; collection of cash; and foreign exchange. Credit card loans also include billed finance charges and fees. Interest income Interest income on performing loans held-for-investment is accrued and recognized as interest income at the contractual rate of interest. Purchase price discounts or premiums, as well as net deferred loan fees or costs, are recognized in interest income over the contractual life of the loan as an adjustment of yield. The Firm classifies accrued interest on loans, including accrued but unbilled interest on credit card loans, in accrued interest and accounts receivables on the Consolidated balance sheets. For credit card loans, accrued interest once billed is then recognized in the loan balances, with the related allowance recorded in the allowance for credit losses. Changes in the allowance for credit losses on accrued interest on credit card loans are recognized in the provision for credit losses and charge-offs are recognized by reversing interest income. For other loans, the Firm generally does not recognize an allowance for credit losses on accrued interest receivables, consistent with its policy to write them off no later than 90 days past due by reversing interest income. Nonaccrual loans Nonaccrual loans are those on which the accrual of interest has been suspended. Loans (other than credit card loans and certain consumer loans insured by U.S. government agencies) are placed on nonaccrual status and considered nonperforming when full payment of principal and interest is not expected, regardless of delinquency status, or when principal and interest has been in default for a period of 90 days or more, unless the loan is both well-secured and in the process of collection. A loan is determined to be past due when the minimum payment is not received from the borrower by the contractually specified due date or for certain loans (e.g., residential real estate loans), when a monthly payment is due and unpaid for 30 days or more. Finally, collateral-dependent loans are typically maintained on nonaccrual status. On the date a loan is placed on nonaccrual status, all interest accrued but not collected is reversed against interest income. In addition, the amortization of deferred amounts is suspended. Interest income on nonaccrual loans may be recognized as cash interest payments are received (i.e., on a cash basis) if the recorded loan balance is deemed fully collectible; however, if there is doubt regarding the ultimate collectibility of the recorded loan balance, all interest cash receipts are applied to reduce the carrying value of the loan (the cost recovery method). For consumer loans, application of this policy typically results in the Firm recognizing interest income on nonaccrual consumer loans on a cash basis.A loan may be returned to accrual status when repayment is reasonably assured and there has been demonstrated performance under the terms of the loan or, if applicable, the terms of the restructured loan. As permitted by regulatory guidance, credit card loans are generally exempt from being placed on nonaccrual status; accordingly, interest and fees related to credit card loans continue to accrue until the loan is charged off or paid in full. Allowance for loan losses The allowance for loan losses represents the estimated expected credit losses in the held-for-investment loan portfolio at the balance sheet date and is recognized on the balance sheet as a contra asset, which brings the amortized cost to the net carrying value. Changes in the allowance for loan losses resulting from lending-related activity, macroeconomic variables, changes in credit and other inputs are recorded in the provision for credit losses on the Firm's Consolidated statements of income. Refer to Note 13 for further information on the Firm's accounting policies for the allowance for loan losses. Charge-offs Consumer loans are generally charged off or charged down to the lower of the amortized cost or the net realizable value of the underlying collateral (i.e., fair value less estimated costs to sell), with an offset to the allowance for loan losses, upon reaching specified stages of delinquency in accordance with standards established by the FFIEC. Residential real estate loans, unmodified credit card loans and scored business banking loans are generally charged off no later than 180 days past due. Scored auto and closed-end consumer loans, including modified credit card the borrower by the contractually specified due date or for certain loans (e.g., residential real estate loans), when a monthly payment is due and unpaid for 30 days or more. Finally, collateral-dependent loans are typically maintained on nonaccrual status. On the date a loan is placed on nonaccrual status, all interest accrued but not collected is reversed against interest income. In addition, the amortization of deferred amounts is suspended. Interest income on nonaccrual loans may be recognized as cash interest payments are received (i.e., on a cash basis) if the recorded loan balance is deemed fully collectible; however, if there is doubt regarding the ultimate collectibility of the recorded loan balance, all interest cash receipts are applied to reduce the carrying value of the loan (the cost recovery method). For consumer loans, application of this policy typically results in the Firm recognizing interest income on nonaccrual consumer loans on a cash basis. A loan may be returned to accrual status when repayment is reasonably assured and there has been demonstrated performance under the terms of the loan or, if applicable, the terms of the restructured loan. As permitted by regulatory guidance, credit card loans are generally exempt from being placed on nonaccrual status; accordingly, interest and fees related to credit card loans continue to accrue until the loan is charged off or paid in full. Allowance for loan losses The allowance for loan losses represents the estimated expected credit losses in the held-for-investment loan portfolio at the balance sheet date and is recognized on the balance sheet as a contra asset, which brings the amortized cost to the net carrying value. Changes in the allowance for loan losses resulting from lending-related activity, macroeconomic variables, changes in credit and other inputs are recorded in the provision for credit losses on the Firm's Consolidated statements of income. Refer to Note 13 for further information on the Firm's accounting policies for the allowance for loan losses. Charge-offs Consumer loans are generally charged off or charged down to the lower of the amortized cost or the net realizable value of the underlying collateral (i.e., fair value less estimated costs to sell), with an offset to the allowance for loan losses, upon reaching specified stages of delinquency in accordance with standards established by the FFIEC. Residential real estate loans, unmodified credit card loans and scored business banking loans are generally charged off no later than 180 days past due. Scored auto and closed-end consumer loans, including modified credit card JPMorgan Chase & Co./2024 Form 10-K243 JPMorgan Chase & Co./2024 Form 10-K243 JPMorgan Chase & Co./2024 Form 10-K243 JPMorgan Chase & Co./2024 Form 10-K 243 --- ## Removed Risk: Loan delinquency(a) *This risk factor was present in the 2025 filing and has been removed.* % of 30+ days past due to total retained loans(b) Gross charge-offs (in millions, except ratios)December 31, 2023Term loans by origination year(c)Revolving loansTotal20232022202120202019Prior to 2019Within the revolving periodConverted to term loansLoan delinquency(a)Current$23,216 $64,366 $84,496 $55,546 $21,530 $59,563 $7,479 $8,151 $324,347 30-149 days past due33 74 89 70 41 801 49 223 1,380 150 or more days past due1 10 17 8 21 456 5 164 682 Total retained loans$23,250 $64,450 $84,602 $55,624 $21,592 $60,820 $7,533 $8,538 $326,409 % of 30+ days past due to total retained loans(b)0.15 %0.13 %0.13 %0.14 %0.29 %2.04 %0.72 %4.53 %0.63 %Gross charge-offs$ - $ - $ - $ - $4 $167 $26 $7 $204 Term loans by origination year(c) --- ## Removed Risk: Loan delinquency(a) *This risk factor was present in the 2025 filing and has been removed.* % of 30+ days past due to total retained loans(b) (a)Individual delinquency classifications include mortgage loans insured by U.S. government agencies which were not material at December 31, 2024 and 2023. (b)Excludes mortgage loans that are 30 or more days past due insured by U.S. government agencies which were not material at December 31, 2024 and 2023. These amounts have been excluded based upon the government guarantee. (c)Purchased loans are included in the year in which they were originated. Approximately 38% of the total revolving loans are senior lien loans; the remaining balance are junior lien loans. The lien position the Firm holds is considered in the Firm's allowance for credit losses. Revolving loans that have been converted to term loans have higher delinquency rates than those that are still within the revolving period. That is primarily because the fully-amortizing payment that is generally required for those products is higher than the minimum payment options available for revolving loans within the revolving period. JPMorgan Chase & Co./2024 Form 10-K249 JPMorgan Chase & Co./2024 Form 10-K249 JPMorgan Chase & Co./2024 Form 10-K249 JPMorgan Chase & Co./2024 Form 10-K 249 --- ## Removed Risk: Notes to consolidated financial statements *This risk factor was present in the 2025 filing and has been removed.* Nature and extent of TDRsFor periods ending prior to January 1, 2023, modifications of residential real estate loans where the Firm granted concessions to borrowers who were experiencing financial difficulty were generally accounted for and reported as TDRs. Loans with short-term or other insignificant modifications that were not considered concessions were not TDRs. For the year ended December 31, 2022, new TDRs were $362 million, and there were no additional commitments to lend to borrowers whose residential real estate loans were modified in TDRs. The Firm's proprietary modification programs as well as government programs, including U.S. GSE programs, generally provide various concessions to financially troubled borrowers including, but not limited to, interest rate reductions, term or payment extensions and delays of principal and/or interest payments that would otherwise have been required under the terms of the original agreement. The following table provides information about how residential real estate loans were modified in TDRs during the period presented. This table excludes loans with short-term or other insignificant modifications that are not considered concessions.Year ended December 31,2022Number of loans approved for a trial modification3,902 Number of loans permanently modified4,182 Concession granted:(a)Interest rate reduction54 %Term or payment extension67 Principal and/or interest deferred10 Principal forgiveness1 Other(b)37 (a)Represents concessions granted in permanent modifications as a percentage of the number of loans permanently modified. The sum of the percentages exceeds 100% because predominantly all of the modifications include more than one type of concession. Concessions offered on trial modifications are generally consistent with those granted on permanent modifications.(b)Includes variable interest rate to fixed interest rate modifications and payment delays that meet the definition of a TDR. Financial effects of TDRs and defaultsThe following table provides information about the financial effects of the various concessions granted in modifications of residential real estate loans and about defaults of certain loans modified in TDRs for the period presented. The following table presents only the financial effects of permanent modifications and does not include temporary concessions offered through trial modifications. This table also excludes loans with short-term or other insignificant modifications that were not considered concessions.Year ended December 31,(in millions, except weighted - average data)2022Weighted-average interest rate of loans with interest rate reductions - before TDR4.75 %Weighted-average interest rate of loans with interest rate reductions - after TDR3.35 Weighted-average remaining contractual term (in years) of loans with term or payment extensions - before TDR22Weighted-average remaining contractual term (in years) of loans with term or payment extensions - after TDR38Charge-offs recognized upon permanent modification$1 Principal deferred16 Principal forgiven2 Balance of loans that defaulted within one year of permanent modification(a)$147 (a)Represents loans permanently modified in TDRs that experienced a payment default in the periods presented, and for which the payment default occurred within one year of the modification. The dollar amounts presented represent the balance of such loans at the end of the reporting period in which such loans defaulted. Active and suspended foreclosure At December 31, 2024 and 2023, the Firm had retained residential real estate loans, excluding those insured by U.S. government agencies, with a carrying value of $576 million and $566 million, respectively, that were not included in REO, but were in the process of active or suspended foreclosure. Nature and extent of TDRsFor periods ending prior to January 1, 2023, modifications of residential real estate loans where the Firm granted concessions to borrowers who were experiencing financial difficulty were generally accounted for and reported as TDRs. Loans with short-term or other insignificant modifications that were not considered concessions were not TDRs. For the year ended December 31, 2022, new TDRs were $362 million, and there were no additional commitments to lend to borrowers whose residential real estate loans were modified in TDRs. The Firm's proprietary modification programs as well as government programs, including U.S. GSE programs, generally provide various concessions to financially troubled borrowers including, but not limited to, interest rate reductions, term or payment extensions and delays of principal and/or interest payments that would otherwise have been required under the terms of the original agreement. The following table provides information about how residential real estate loans were modified in TDRs during the period presented. This table excludes loans with short-term or other insignificant modifications that are not considered concessions.Year ended December 31,2022Number of loans approved for a trial modification3,902 Number of loans permanently modified4,182 Concession granted:(a)Interest rate reduction54 %Term or payment extension67 Principal and/or interest deferred10 Principal forgiveness1 Other(b)37 (a)Represents concessions granted in permanent modifications as a percentage of the number of loans permanently modified. The sum of the percentages exceeds 100% because predominantly all of the modifications include more than one type of concession. Concessions offered on trial modifications are generally consistent with those granted on permanent modifications.(b)Includes variable interest rate to fixed interest rate modifications and payment delays that meet the definition of a TDR. Nature and extent of TDRs For periods ending prior to January 1, 2023, modifications of residential real estate loans where the Firm granted concessions to borrowers who were experiencing financial difficulty were generally accounted for and reported as TDRs. Loans with short-term or other insignificant modifications that were not considered concessions were not TDRs. For the year ended December 31, 2022, new TDRs were $362 million, and there were no additional commitments to lend to borrowers whose residential real estate loans were modified in TDRs. The Firm's proprietary modification programs as well as government programs, including U.S. GSE programs, generally provide various concessions to financially troubled borrowers including, but not limited to, interest rate reductions, term or payment extensions and delays of principal and/or interest payments that would otherwise have been required under the terms of the original agreement. The following table provides information about how residential real estate loans were modified in TDRs during the period presented. This table excludes loans with short-term or other insignificant modifications that are not considered concessions. Year ended December 31,2022Number of loans approved for a trial modification3,902 Number of loans permanently modified4,182 Concession granted:(a)Interest rate reduction54 %Term or payment extension67 Principal and/or interest deferred10 Principal forgiveness1 Other(b)37 2022 --- ## Removed Risk: Concession granted:(a) *This risk factor was present in the 2025 filing and has been removed.* Other(b) (a)Represents concessions granted in permanent modifications as a percentage of the number of loans permanently modified. The sum of the percentages exceeds 100% because predominantly all of the modifications include more than one type of concession. Concessions offered on trial modifications are generally consistent with those granted on permanent modifications. (b)Includes variable interest rate to fixed interest rate modifications and payment delays that meet the definition of a TDR. (b) Financial effects of TDRs and defaultsThe following table provides information about the financial effects of the various concessions granted in modifications of residential real estate loans and about defaults of certain loans modified in TDRs for the period presented. The following table presents only the financial effects of permanent modifications and does not include temporary concessions offered through trial modifications. This table also excludes loans with short-term or other insignificant modifications that were not considered concessions.Year ended December 31,(in millions, except weighted - average data)2022Weighted-average interest rate of loans with interest rate reductions - before TDR4.75 %Weighted-average interest rate of loans with interest rate reductions - after TDR3.35 Weighted-average remaining contractual term (in years) of loans with term or payment extensions - before TDR22Weighted-average remaining contractual term (in years) of loans with term or payment extensions - after TDR38Charge-offs recognized upon permanent modification$1 Principal deferred16 Principal forgiven2 Balance of loans that defaulted within one year of permanent modification(a)$147 (a)Represents loans permanently modified in TDRs that experienced a payment default in the periods presented, and for which the payment default occurred within one year of the modification. The dollar amounts presented represent the balance of such loans at the end of the reporting period in which such loans defaulted. Active and suspended foreclosure At December 31, 2024 and 2023, the Firm had retained residential real estate loans, excluding those insured by U.S. government agencies, with a carrying value of $576 million and $566 million, respectively, that were not included in REO, but were in the process of active or suspended foreclosure. Financial effects of TDRs and defaults The following table provides information about the financial effects of the various concessions granted in modifications of residential real estate loans and about defaults of certain loans modified in TDRs for the period presented. The following table presents only the financial effects of permanent modifications and does not include temporary concessions offered through trial modifications. This table also excludes loans with short-term or other insignificant modifications that were not considered concessions. Year ended December 31,(in millions, except weighted - average data)2022Weighted-average interest rate of loans with interest rate reductions - before TDR4.75 %Weighted-average interest rate of loans with interest rate reductions - after TDR3.35 Weighted-average remaining contractual term (in years) of loans with term or payment extensions - before TDR22Weighted-average remaining contractual term (in years) of loans with term or payment extensions - after TDR38Charge-offs recognized upon permanent modification$1 Principal deferred16 Principal forgiven2 Balance of loans that defaulted within one year of permanent modification(a)$147 Balance of loans that defaulted within one year of permanent modification(a) (a)Represents loans permanently modified in TDRs that experienced a payment default in the periods presented, and for which the payment default occurred within one year of the modification. The dollar amounts presented represent the balance of such loans at the end of the reporting period in which such loans defaulted. --- ## Removed Risk: Loan delinquency *This risk factor was present in the 2025 filing and has been removed.* JPMorgan Chase & Co./2024 Form 10-K255 JPMorgan Chase & Co./2024 Form 10-K255 JPMorgan Chase & Co./2024 Form 10-K255 JPMorgan Chase & Co./2024 Form 10-K 255 --- ## Removed Risk: Notes to consolidated financial statements *This risk factor was present in the 2025 filing and has been removed.* Other credit quality indicators The following table provides information on other credit quality indicators for retained credit card loans. (in millions, except ratios)December 31, 2024December 31, 2023Geographic region(a)California$36,385 $32,652 Texas24,423 22,086 New York18,525 16,915 Florida17,236 15,103 Illinois12,442 11,364 New Jersey9,644 8,688 Ohio6,976 6,424 Colorado6,962 6,307 Pennsylvania6,558 6,088 Arizona5,796 5,209 All other87,913 80,287 Total retained loans$232,860 $211,123 Percentage of portfolio based on carrying value with estimated refreshed FICO scoresEqual to or greater than 66085.5 %85.8 %Less than 66014.3 14.0 No FICO available0.2 0.2 --- ## Removed Risk: Year ended December 31, 2024 *This risk factor was present in the 2025 filing and has been removed.* Defaults of FDMs The following table provides information on retained wholesale FDMs that defaulted during the year ended December 31, 2024 that were reported as FDMs in the twelve months prior to the default, and FDMs that defaulted during the year ended December 31, 2023 that were reported as FDMs on or after January 1, 2023, the date that the Firm adopted the changes to the TDR accounting guidance. Amortized cost basisSecured by real estateCommercial and industrialOtherSecured by real estateCommercial and industrialOther(in millions)Year ended December 31, 2024Year ended December 31, 2023Term extension$3 $92 $22 $1 $49 $31 Other-than-insignificant payment deferral - 118 - 2 - - Interest rate reduction and term extension - - - 3 1 - Total(a)$3 $210 $22 $6 $50 $31 --- ## Removed Risk: Year ended December 31, 2024 *This risk factor was present in the 2025 filing and has been removed.* Total(a) (a)Represents FDMs that were 30 days or more past due. As of December 31, 2024 and 2023, additional unfunded commitments on modified loans to borrowers experiencing financial difficulty were $1.8 billion at each period in Commercial and industrial, and $69 million and $4 million, respectively, in Other loan class. Additional commitments on modified loans to borrowers experiencing financial difficulty whose loans have been modified as FDMs in Secured by real estate were not material at each period. Nature and extent of TDRs Prior to January 1, 2023, certain loan modifications were considered TDRs. These loan modifications provided various concessions to borrower who were experiencing financial difficulty. Loans with short-term or other insignificant modifications that were not considered concessions were not TDRs nor were loans for which the Firm elected to suspend TDR accounting guidance under the option provided by the CARES Act. For the year ended December 31, 2022, new TDRs were $801 million. New TDRs for the year ended December 31, 2022 reflected extended maturity dates and covenant waivers primarily in the Commercial and Industrial loan class. For the year ended December 31, 2022, the impact of these modifications resulting in new TDRs was not material to the Firm. As a result of the elimination of the requirement to assess whether a modification is reasonably expected or involves a concession, the population of loans considered FDMs is greater than the population previously considered TDRs. JPMorgan Chase & Co./2024 Form 10-K265 JPMorgan Chase & Co./2024 Form 10-K265 JPMorgan Chase & Co./2024 Form 10-K265 JPMorgan Chase & Co./2024 Form 10-K 265 --- ## Removed Risk: Net deferred tax assets *This risk factor was present in the 2025 filing and has been removed.* (a)Includes the estimated net deferred tax asset associated with the First Republic acquisition. JPMorganChase has recorded deferred tax assets of $352 million at December 31, 2024 in connection with tax attribute carryforwards. State and local capital loss carryforwards were $914 million, U.S. federal NOL carryforwards were $496 million, non-U.S. NOL carryforwards were $958 million, and other U.S. federal tax attributes were $111 million. If not utilized, a portion of the U.S. federal NOL carryforwards and other U.S. federal tax attributes will expire between 2026 and 2036 whereas others have an unlimited carryforward period. Similarly, certain non-U.S. NOL carryforwards will expire between 2026 and 2041 whereas others have an unlimited carryforward period. The state and local capital loss carryforwards will expire in 2026. The valuation allowance at December 31, 2024, was predominantly driven by certain non-U.S. deferred tax assets, including NOL carryforwards. JPMorganChase has recorded deferred tax assets of $352 million at December 31, 2024 in connection with tax attribute carryforwards. State and local capital loss carryforwards were $914 million, U.S. federal NOL carryforwards were $496 million, non-U.S. NOL carryforwards were $958 million, and other U.S. federal tax attributes were $111 million. If not utilized, a portion of the U.S. federal NOL carryforwards and other U.S. federal tax attributes will expire between 2026 and 2036 whereas others have an unlimited carryforward period. Similarly, certain non-U.S. NOL carryforwards will expire between 2026 and 2041 whereas others have an unlimited carryforward period. The state and local capital loss carryforwards will expire in 2026. The valuation allowance at December 31, 2024, was predominantly driven by certain non-U.S. deferred tax assets, including NOL carryforwards. JPMorgan Chase & Co./2024 Form 10-K297 JPMorgan Chase & Co./2024 Form 10-K297 JPMorgan Chase & Co./2024 Form 10-K297 JPMorgan Chase & Co./2024 Form 10-K 297 --- ## Removed Risk: Total wholesale(c) *This risk factor was present in the 2025 filing and has been removed.* Securities lending indemnification agreements and guarantees(e) Unsettled resale and securities borrowed agreements Unsettled repurchase and securities loaned agreements Loan sale and securitization-related indemnifications: Exchange & clearing house guarantees and commitments(f) Other guarantees and commitments (g) (a)Includes certain commitments to purchase loans from correspondents. (b)Also includes commercial card lending-related commitments primarily in CIB. (c)Predominantly all consumer and wholesale lending-related commitments are in the U.S. (d)As of December 31, 2024 and 2023, reflected the contractual amount net of risk participations totaling $85 million and $88 million, respectively, for other unfunded commitments to extend credit; $9.5 billion and $8.2 billion, respectively, for standby letters of credit and other financial guarantees; and $556 million and $589 million, respectively, for other letters of credit. In regulatory filings with the Federal Reserve these commitments are shown gross of risk participations. (e)As of December 31, 2024 and 2023, collateral held by the Firm in support of securities lending indemnification agreements was $328.7 billion and $300.3 billion, respectively. Securities lending collateral primarily consists of cash, G7 government securities, and securities issued by U.S. GSEs and government agencies. (f)As of December 31, 2024 and 2023, includes guarantees to the Fixed Income Clearing Corporation under the sponsored member repo program and commitments and guarantees associated with the Firm's membership in certain clearing houses. (g)As of December 31, 2024 and 2023, primarily includes unfunded commitments to purchase secondary market loans, other equity investment commitments, and unfunded commitments related to certain tax-oriented equity investments, and reflects the impact of adopting updates to the Accounting for Investments in Tax Credit Structures guidance effective January 1, 2024. (h)For lending-related products, the carrying value includes the allowance for lending-related commitments and the guarantee liability; for derivative-related products, and lending-related commitments for which the fair value option was elected, the carrying value represents the fair value. (i)For lending-related commitments, the carrying value also includes fees and any purchase discounts or premiums that are deferred and recognized in accounts payable and other liabilities on the Consolidated balance sheets. Deferred amounts for revolving commitments and commitments not expected to fund, are amortized to lending- and deposit-related fees on a straight line basis over the commitment period. For all other commitments the deferred amounts remain deferred until the commitment funds or is sold. (j)As of December 31, 2024 and 2023, includes fair value adjustments associated with First Republic for residential real estate lending-related commitments totaling $459 million and $630 million, respectively; for auto and other lending-related commitments totaling $37 million and $148 million, respectively; and for other unfunded commitments to extend credit totaling $699 million and $1.1 billion, respectively. Refer to Note 34 for additional information. JPMorgan Chase & Co./2024 Form 10-K303 JPMorgan Chase & Co./2024 Form 10-K303 JPMorgan Chase & Co./2024 Form 10-K303 JPMorgan Chase & Co./2024 Form 10-K 303 --- ## Removed Risk: Loan sales- and securitization-related indemnifications *This risk factor was present in the 2025 filing and has been removed.* Mortgage repurchase liability In connection with the Firm's mortgage loan sale and securitization activities with U.S. GSEs the Firm has made representations and warranties that the loans sold meet certain requirements, and that may require the Firm to repurchase mortgage loans and/or indemnify the loan purchaser if such representations and warranties are breached by the Firm. JPMorgan Chase & Co./2024 Form 10-K305 JPMorgan Chase & Co./2024 Form 10-K305 JPMorgan Chase & Co./2024 Form 10-K305 JPMorgan Chase & Co./2024 Form 10-K 305 --- ## Removed Risk: Contingencies *This risk factor was present in the 2025 filing and has been removed.* As of December 31, 2024, the Firm and its subsidiaries and affiliates are defendants or respondents in numerous evolving legal proceedings, including private proceedings, public proceedings, government investigations, regulatory enforcement matters, and the matters described below. The litigations range from individual actions involving a single plaintiff to class action lawsuits with potentially millions of class members. Investigations and regulatory enforcement matters involve both formal and informal proceedings, by both governmental agencies and self-regulatory organizations. These legal proceedings are at varying stages of adjudication, arbitration or investigation, and involve each of the Firm's lines of business and several geographies and a wide variety of claims (including common law tort and contract claims and statutory antitrust, securities and consumer protection claims), some of which present novel legal theories.The Firm believes the estimate of the aggregate range of reasonably possible losses, in excess of reserves established, for its legal proceedings is from $0 to approximately $1.4 billion at December 31, 2024. This estimated aggregate range of reasonably possible losses was based upon information available as of that date for those proceedings in which the Firm believes that an estimate of reasonably possible loss can be made. For certain matters, the Firm does not believe that such an estimate can be made, as of that date. The Firm's estimate of the aggregate range of reasonably possible losses involves significant judgment, given:•the number, variety and varying stages of the proceedings, including the fact that many are in preliminary stages, •the existence in many such proceedings of multiple defendants, including the Firm, whose share of liability (if any) has yet to be determined, •the numerous yet-unresolved issues in many of the proceedings, including issues regarding class certification and the scope of many of the claims, and •the uncertainty of the various potential outcomes of such proceedings, including where the Firm has made assumptions concerning future rulings by the court or other adjudicator, or about the behavior or incentives of adverse parties or regulatory authorities, and those assumptions prove to be incorrect.In addition, the outcome of a particular proceeding may be a result which the Firm did not take into account in its estimate because the Firm had deemed the likelihood of that outcome to be remote. Accordingly, the Firm's estimate of the aggregate range of reasonably possible losses will change from time to time, and actual losses may vary significantly.Set forth below are descriptions of the Firm's material legal proceedings.1MDB Litigation. J.P. Morgan (Suisse) SA was named as a defendant in a civil litigation filed in May 2021 in Malaysia by 1Malaysia Development Berhad ("1MDB"), a Malaysian state-owned and controlled investment fund. The claim alleges "dishonest assistance" against J.P. Morgan (Suisse) SA in relation to payments of $300 million and $500 million, from 2009 and 2010, respectively, received from 1MDB and paid into an account at J.P. Morgan (Suisse) SA held by 1MDB PetroSaudi Limited, a joint venture company between 1MDB and PetroSaudi Holdings (Cayman) Limited. In March 2024, the Court upheld the Firm's challenge to the validity of service and the Malaysian Court's jurisdiction to hear the claim. That decision has been appealed by 1MDB. In August 2023, the Court denied an application by 1MDB to discontinue its claim with permission to re-file a new claim in the future. That decision was appealed by both 1MDB and the Firm, and an appeals court is scheduled to hear both appeals in November 2025. In its appeal, the Firm seeks to prevent any claim from continuing. In addition, in November 2023, the Federal Office of the Attorney General (OAG) in Switzerland notified J.P. Morgan (Suisse) SA that it is conducting an investigation into possible criminal liability in connection with transactions arising from J.P. Morgan (Suisse) SA's relationship with the 1MDB PetroSaudi joint venture and its related persons for the period September 2009 through August 2015. The OAG investigation is ongoing. Amrapali. India's Enforcement Directorate ("ED") is investigating J.P. Morgan India Private Limited in connection with investments made in 2010 and 2012 by two offshore funds formerly managed by JPMorganChase entities into residential housing projects developed by the Amrapali Group ("Amrapali") relating to delays in delivering or failure to deliver residential units. In August 2021, the ED issued an order fining J.P. Morgan India Private Limited approximately $31.5 million, and the Firm is appealing that order. Relatedly, in July 2019, the Supreme Court of India issued an order making preliminary findings that Amrapali and other parties, including unspecified JPMorganChase entities and the offshore funds that had invested in the projects, violated certain criminal currency control and money laundering provisions, and ordered the ED to conduct a further inquiry. The Firm is responding to and cooperating with the inquiry. Foreign Exchange Investigations and Litigation. The Firm previously reported settlements with certain government authorities relating to its foreign exchange ("FX") sales and trading activities and controls related to those activities. Among those resolutions, in May 2015, the Firm pleaded guilty to a single violation of federal antitrust law. The Department of Labor ("DOL") granted the Firm exemptions that permit the Firm and its As of December 31, 2024, the Firm and its subsidiaries and affiliates are defendants or respondents in numerous evolving legal proceedings, including private proceedings, public proceedings, government investigations, regulatory enforcement matters, and the matters described below. The litigations range from individual actions involving a single plaintiff to class action lawsuits with potentially millions of class members. Investigations and regulatory enforcement matters involve both formal and informal proceedings, by both governmental agencies and self-regulatory organizations. These legal proceedings are at varying stages of adjudication, arbitration or investigation, and involve each of the Firm's lines of business and several geographies and a wide variety of claims (including common law tort and contract claims and statutory antitrust, securities and consumer protection claims), some of which present novel legal theories.The Firm believes the estimate of the aggregate range of reasonably possible losses, in excess of reserves established, for its legal proceedings is from $0 to approximately $1.4 billion at December 31, 2024. This estimated aggregate range of reasonably possible losses was based upon information available as of that date for those proceedings in which the Firm believes that an estimate of reasonably possible loss can be made. For certain matters, the Firm does not believe that such an estimate can be made, as of that date. The Firm's estimate of the aggregate range of reasonably possible losses involves significant judgment, given:•the number, variety and varying stages of the proceedings, including the fact that many are in preliminary stages, •the existence in many such proceedings of multiple defendants, including the Firm, whose share of liability (if any) has yet to be determined, •the numerous yet-unresolved issues in many of the proceedings, including issues regarding class certification and the scope of many of the claims, and •the uncertainty of the various potential outcomes of such proceedings, including where the Firm has made assumptions concerning future rulings by the court or other adjudicator, or about the behavior or incentives of adverse parties or regulatory authorities, and those assumptions prove to be incorrect.In addition, the outcome of a particular proceeding may be a result which the Firm did not take into account in its estimate because the Firm had deemed the likelihood of that outcome to be remote. Accordingly, the Firm's estimate of the aggregate range of reasonably possible losses will change from time to time, and actual losses may vary significantly.Set forth below are descriptions of the Firm's material legal proceedings. As of December 31, 2024, the Firm and its subsidiaries and affiliates are defendants or respondents in numerous evolving legal proceedings, including private proceedings, public proceedings, government investigations, regulatory enforcement matters, and the matters described below. The litigations range from individual actions involving a single plaintiff to class action lawsuits with potentially millions of class members. Investigations and regulatory enforcement matters involve both formal and informal proceedings, by both governmental agencies and self-regulatory organizations. These legal proceedings are at varying stages of adjudication, arbitration or investigation, and involve each of the Firm's lines of business and several geographies and a wide variety of claims (including common law tort and contract claims and statutory antitrust, securities and consumer protection claims), some of which present novel legal theories. The Firm believes the estimate of the aggregate range of reasonably possible losses, in excess of reserves established, for its legal proceedings is from $0 to approximately $1.4 billion at December 31, 2024. This estimated aggregate range of reasonably possible losses was based upon information available as of that date for those proceedings in which the Firm believes that an estimate of reasonably possible loss can be made. For certain matters, the Firm does not believe that such an estimate can be made, as of that date. The Firm's estimate of the aggregate range of reasonably possible losses involves significant judgment, given: •the number, variety and varying stages of the proceedings, including the fact that many are in preliminary stages, •the existence in many such proceedings of multiple defendants, including the Firm, whose share of liability (if any) has yet to be determined, •the numerous yet-unresolved issues in many of the proceedings, including issues regarding class certification and the scope of many of the claims, and •the uncertainty of the various potential outcomes of such proceedings, including where the Firm has made assumptions concerning future rulings by the court or other adjudicator, or about the behavior or incentives of adverse parties or regulatory authorities, and those assumptions prove to be incorrect. In addition, the outcome of a particular proceeding may be a result which the Firm did not take into account in its estimate because the Firm had deemed the likelihood of that outcome to be remote. Accordingly, the Firm's estimate of the aggregate range of reasonably possible losses will change from time to time, and actual losses may vary significantly. Set forth below are descriptions of the Firm's material legal proceedings. 1MDB Litigation. J.P. Morgan (Suisse) SA was named as a defendant in a civil litigation filed in May 2021 in Malaysia by 1Malaysia Development Berhad ("1MDB"), a Malaysian state-owned and controlled investment fund. The claim alleges "dishonest assistance" against J.P. Morgan (Suisse) SA in relation to payments of $300 million and $500 million, from 2009 and 2010, respectively, received from 1MDB and paid into an account at J.P. Morgan (Suisse) SA held by 1MDB PetroSaudi Limited, a joint venture company between 1MDB and PetroSaudi Holdings (Cayman) Limited. In March 2024, the Court upheld the Firm's challenge to the validity of service and the Malaysian Court's jurisdiction to hear the claim. That decision has been appealed by 1MDB. In August 2023, the Court denied an application by 1MDB to discontinue its claim with permission to re-file a new claim in the future. That decision was appealed by both 1MDB and the Firm, and an appeals court is scheduled to hear both appeals in November 2025. In its appeal, the Firm seeks to prevent any claim from continuing. In addition, in November 2023, the Federal Office of the Attorney General (OAG) in Switzerland notified J.P. Morgan (Suisse) SA that it is conducting an investigation into possible criminal liability in connection with transactions arising from J.P. Morgan (Suisse) SA's relationship with the 1MDB PetroSaudi joint venture and its related persons for the period September 2009 through August 2015. The OAG investigation is ongoing. Amrapali. India's Enforcement Directorate ("ED") is investigating J.P. Morgan India Private Limited in connection with investments made in 2010 and 2012 by two offshore funds formerly managed by JPMorganChase entities into residential housing projects developed by the Amrapali Group ("Amrapali") relating to delays in delivering or failure to deliver residential units. In August 2021, the ED issued an order fining J.P. Morgan India Private Limited approximately $31.5 million, and the Firm is appealing that order. Relatedly, in July 2019, the Supreme Court of India issued an order making preliminary findings that Amrapali and other parties, including unspecified JPMorganChase entities and the offshore funds that had invested in the projects, violated certain criminal currency control and money laundering provisions, and ordered the ED to conduct a further inquiry. The Firm is responding to and cooperating with the inquiry. Foreign Exchange Investigations and Litigation. The Firm previously reported settlements with certain government authorities relating to its foreign exchange ("FX") sales and trading activities and controls related to those activities. Among those resolutions, in May 2015, the Firm pleaded guilty to a single violation of federal antitrust law. The Department of Labor ("DOL") granted the Firm exemptions that permit the Firm and its 1MDB Litigation. J.P. Morgan (Suisse) SA was named as a defendant in a civil litigation filed in May 2021 in Malaysia by 1Malaysia Development Berhad ("1MDB"), a Malaysian state-owned and controlled investment fund. The claim alleges "dishonest assistance" against J.P. Morgan (Suisse) SA in relation to payments of $300 million and $500 million, from 2009 and 2010, respectively, received from 1MDB and paid into an account at J.P. Morgan (Suisse) SA held by 1MDB PetroSaudi Limited, a joint venture company between 1MDB and PetroSaudi Holdings (Cayman) Limited. In March 2024, the Court upheld the Firm's challenge to the validity of service and the Malaysian Court's jurisdiction to hear the claim. That decision has been appealed by 1MDB. In August 2023, the Court denied an application by 1MDB to discontinue its claim with permission to re-file a new claim in the future. That decision was appealed by both 1MDB and the Firm, and an appeals court is scheduled to hear both appeals in November 2025. In its appeal, the Firm seeks to prevent any claim from continuing. In addition, in November 2023, the Federal Office of the Attorney General (OAG) in Switzerland notified J.P. Morgan (Suisse) SA that it is conducting an investigation into possible criminal liability in connection with transactions arising from J.P. Morgan (Suisse) SA's relationship with the 1MDB PetroSaudi joint venture and its related persons for the period September 2009 through August 2015. The OAG investigation is ongoing. Amrapali. India's Enforcement Directorate ("ED") is investigating J.P. Morgan India Private Limited in connection with investments made in 2010 and 2012 by two offshore funds formerly managed by JPMorganChase entities into residential housing projects developed by the Amrapali Group ("Amrapali") relating to delays in delivering or failure to deliver residential units. In August 2021, the ED issued an order fining J.P. Morgan India Private Limited approximately $31.5 million, and the Firm is appealing that order. Relatedly, in July 2019, the Supreme Court of India issued an order making preliminary findings that Amrapali and other parties, including unspecified JPMorganChase entities and the offshore funds that had invested in the projects, violated certain criminal currency control and money laundering provisions, and ordered the ED to conduct a further inquiry. The Firm is responding to and cooperating with the inquiry. Foreign Exchange Investigations and Litigation. The Firm previously reported settlements with certain government authorities relating to its foreign exchange ("FX") sales and trading activities and controls related to those activities. Among those resolutions, in May 2015, the Firm pleaded guilty to a single violation of federal antitrust law. The Department of Labor ("DOL") granted the Firm exemptions that permit the Firm and its JPMorgan Chase & Co./2024 Form 10-K309 JPMorgan Chase & Co./2024 Form 10-K309 JPMorgan Chase & Co./2024 Form 10-K309 JPMorgan Chase & Co./2024 Form 10-K 309 --- ## Removed Risk: Commercial & Investment Bank *This risk factor was present in the 2025 filing and has been removed.* The Commercial & Investment Bank is comprised of the Banking & Payments and Markets & Securities Services businesses. These businesses offer investment banking, lending, payments, market-making, financing, custody and securities products and services to a global base of corporate and institutional clients. Banking & Payments offers products and services in all major capital markets, including advising on corporate strategy and structure, capital-raising in equity and debt markets, and loan origination and syndication. Banking & Payments also provides services that enable clients to manage payments globally across liquidity and account solutions, commerce solutions, clearing, trade, and working capital. Markets & Securities Services includes Markets, which is a global market-maker across products, including cash and derivative instruments, and also offers sophisticated risk management solutions, lending, prime brokerage, clearing and research. Markets & Securities Services also includes Securities Services, a leading global custodian that provides custody, fund services, liquidity and trading services, and data solutions products. --- ## Removed Risk: Asset & Wealth Management *This risk factor was present in the 2025 filing and has been removed.* Asset & Wealth Management, with client assets of $5.9 trillion, is a global leader in investment and wealth management. Asset Management Offers multi-asset investment management solutions across equities, fixed income, alternatives and money market funds to institutional and retail investors providing for a broad range of clients' investment needs. Global Private Bank Provides retirement products and services, brokerage, custody, estate planning, lending, deposits and investment management to high net worth clients. The majority of AWM's client assets are in actively managed portfolios. Corporate Corporate consists of Treasury and Chief Investment Office ("CIO") and Other Corporate. Treasury and CIO is predominantly responsible for measuring, monitoring, reporting and managing the Firm's liquidity, funding, capital, structural interest rate and foreign exchange risks. Other Corporate includes staff functions and expense that is centrally managed as well as certain Firm initiatives and activities not solely aligned to a specific LOB. The major Other Corporate functions include Real Estate, Technology, Legal, Corporate Finance, Human Resources, Internal Audit, Risk Management, Compliance, Control Management, Corporate Responsibility and various Other Corporate groups. JPMorgan Chase & Co./2024 Form 10-K313 JPMorgan Chase & Co./2024 Form 10-K313 JPMorgan Chase & Co./2024 Form 10-K313 JPMorgan Chase & Co./2024 Form 10-K 313 --- ## Removed Risk: Segment & Corporate results and reconciliation(a) *This risk factor was present in the 2025 filing and has been removed.* (Table continued on next page)As of or for the year ended December 31, (in millions, except ratios)Consumer & Community BankingCommercial & Investment BankAsset & Wealth Management202420232022202420232022202420232022Noninterest revenue$16,649 $15,118$14,886(e)$48,253 $43,809$39,538 (b)$15,023 $13,560 $12,507 Net interest income54,858 55,03039,92821,861 20,54420,0976,555 6,267 5,241 Total net revenue71,507 70,14854,81470,114 64,35359,63521,578 19,827 17,748 Provision for credit losses9,974 6,8993,813762 2,0912,426(68)159 128 Compensation expense(b)17,045 15,17113,09218,191 17,10516,2147,984 7,115 6,336 Noncompensation expense(c)(d)20,991 19,64818,11617,162 16,86715,8556,430 5,665 5,493 Total noninterest expense38,036 34,81931,208(e)35,353 33,97232,069(b)14,414 12,780 11,829 Income/(loss) before income tax expense/(benefit)23,497 28,43019,79333,999 28,29025,1407,232 6,888 5,791 Income tax expense/(benefit)5,894 7,1984,877(e)9,153 8,0186,002(b)1,811 1,661 1,426 Net income/(loss)$17,603 $21,232$14,916$24,846 $20,272$19,138$5,421 $5,227 $4,365 Average equity$54,500 $54,349$50,000$132,000 $137,507$128,000$15,500 $16,671 $17,000 Total assets650,268 642,951514,0851,773,194 1,638,4931,591,402255,385 245,512 232,037 Return on equity32 %38 %29 %18 %14 %14 %34 %31 %25 %Overhead ratio53 50 57 50 53 54 67 64 67 (e) (b) Provision for credit losses Compensation expense(b) Noncompensation expense(c)(d) (e) (b) --- ## Removed Risk: Income/(loss) before income tax expense/(benefit) *This risk factor was present in the 2025 filing and has been removed.* Income tax expense/(benefit) (e) (b) Average equity Return on equity JPMorgan Chase & Co./2024 Form 10-K315 JPMorgan Chase & Co./2024 Form 10-K315 JPMorgan Chase & Co./2024 Form 10-K315 JPMorgan Chase & Co./2024 Form 10-K 315 --- ## Removed Risk: Total liabilities(c) *This risk factor was present in the 2025 filing and has been removed.* JPMorgan Chase & Co./2024 Form 10-K317 JPMorgan Chase & Co./2024 Form 10-K317 JPMorgan Chase & Co./2024 Form 10-K317 JPMorgan Chase & Co./2024 Form 10-K 317 --- ## Removed Risk: Origination date LTV ratio *This risk factor was present in the 2025 filing and has been removed.* The LTV ratio at the origination date of the loan. Origination date LTV ratios are calculated based on the actual appraised values of collateral (i.e., loan-level data) at the origination date. --- ## Removed Risk: Current estimated LTV ratio *This risk factor was present in the 2025 filing and has been removed.* An estimate of the LTV as of a certain date. The current estimated LTV ratios are calculated using estimated collateral values derived from a nationally recognized JPMorgan Chase & Co./2024 Form 10-K329 JPMorgan Chase & Co./2024 Form 10-K329 JPMorgan Chase & Co./2024 Form 10-K329 JPMorgan Chase & Co./2024 Form 10-K 329 --- ## Removed Risk: Combined LTV ratio *This risk factor was present in the 2025 filing and has been removed.* The LTV ratio considering all available lien positions, as well as unused lines, related to the property. Combined LTV ratios are used for junior lien home equity products. Macro businesses: the macro businesses include Rates, Currencies and Emerging Markets, Fixed Income Financing and Commodities in CIB's Fixed Income Markets. Managed basis: A non-GAAP presentation of Firmwide financial results that includes reclassifications to present revenue on a fully taxable-equivalent basis. Management also uses this financial measure at the segment level, because it believes this provides information to enable investors to understand the underlying operational performance and trends of the particular business segment and facilitates a comparison of the business segment with the performance of competitors. Markets: consists of CIB's Fixed Income Markets and Equity Markets businesses. Master netting agreement: A single agreement with a counterparty that permits multiple transactions governed by that agreement to be terminated or accelerated and settled through a single payment in a single currency in the event of a default (e.g., bankruptcy, failure to make a required payment or securities transfer or deliver collateral or margin when due). MBS: Mortgage-backed securities MD&A: Management's discussion and analysis Measurement alternative: Measures equity securities without readily determinable fair values at cost less impairment (if any), plus or minus observable price changes from an identical or similar investment of the same issuer. Merchant Services: offers merchants payment processing capabilities, fraud and risk management, data and analytics, and other payments services. Through Merchant Services, merchants of all sizes can accept payments via credit and debit cards and payments in multiple currencies. MEV: Macroeconomic variable Moody's: Moody's Investor Services --- ## Removed Risk: Glossary of Terms and Acronyms *This risk factor was present in the 2025 filing and has been removed.* primary residence; or (v) a history of delinquencies or late payments on the loan. MREL: Minimum requirements for own funds and eligible liabilities MSR: Mortgage servicing rights Multi-asset: Any fund or account that allocates assets under management to more than one asset class.NA: Data is not applicable or available for the period presented. NAV: Net Asset Value Net Capital Rule: Rule 15c3-1 under the Securities Exchange Act of 1934.Net charge-off/(recovery) rate: Represents net charge-offs/(recoveries) (annualized) divided by average retained loans for the reporting period.Net interchange income includes the following components:•Interchange income: Fees earned by credit and debit card issuers on sales transactions. •Rewards costs: The cost to the Firm for points earned by cardholders enrolled in credit card rewards programs generally tied to sales transactions.•Partner payments: Payments to co-brand credit card partners based on the cost of loyalty program rewards earned by cardholders on credit card transactions.Net mortgage servicing revenue: Includes operating revenue earned from servicing third-party mortgage loans, which is recognized over the period in which the service is provided; changes in the fair value of MSRs; the impact of risk management activities associated with MSRs; and gains and losses on securitization of excess mortgage servicing. Net mortgage servicing revenue also includes gains and losses on sales and lower of cost or fair value adjustments of certain repurchased loans insured by U.S. government agencies. Net revenue rate: Represents Card Services net revenue (annualized) expressed as a percentage of average loans for the period.Net yield on interest-earning assets: The average rate for interest-earning assets less the average rate paid for all sources of funds.NFA: National Futures AssociationNM: Not meaningfulNOL: Net operating loss Nonaccrual loans: Loans for which interest income is not recognized on an accrual basis. Loans (other than credit card loans and certain consumer loans insured by U.S. government agencies) are placed on nonaccrual status when full payment of principal and interest is not expected, regardless of delinquency status, or when principal and interest have been in default for a period of 90 days or more unless the loan is both well-secured and in the process of collection. Collateral-dependent loans are typically maintained on nonaccrual status. Nonperforming assets: Nonperforming assets include nonaccrual loans, nonperforming derivatives and certain assets acquired in loan satisfactions, predominantly real estate owned and other commercial and personal property.NSFR: Net Stable Funding RatioOAS: Option-adjusted spread OCC: Office of the Comptroller of the Currency OCI: Other comprehensive income/(loss)OPEB: Other postretirement employee benefit Operating losses: Primarily refer to fraud losses associated with customer deposit accounts, credit and debit cards; exclude legal expense.Over-the-counter ("OTC") derivatives: Derivative contracts that are negotiated, executed and settled bilaterally between two derivative counterparties, where one or both counterparties is a derivatives dealer. Over-the-counter cleared ("OTC-cleared") derivatives: Derivative contracts that are negotiated and executed bilaterally, but subsequently settled via a central clearing house, such that each derivative counterparty is only exposed to the default of that clearing house. Overhead ratio: Noninterest expense as a percentage of total net revenue.Parent Company: JPMorgan Chase & Co.Participating securities: Represents unvested share-based compensation awards containing nonforfeitable rights to dividends or dividend equivalents (collectively, "dividends"), which are included in the earnings per share calculation using the two-class method. JPMorganChase grants RSUs to certain employees under its share-based compensation programs, which entitle the recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of common stock. These unvested awards meet the definition of participating securities. Under the two-class method, all earnings (distributed and undistributed) are allocated to each class of common stock and participating securities, based on their respective rights to receive dividends. PCAOB: Public Company Accounting Oversight BoardPCD: "Purchased credit deteriorated" assets represent acquired financial assets that as of the date of acquisition have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by the Firm.PD: Probability of defaultPillar 1: The Basel framework consists of a three "Pillar" approach. Pillar 1 establishes minimum capital primary residence; or (v) a history of delinquencies or late payments on the loan. MREL: Minimum requirements for own funds and eligible liabilities MSR: Mortgage servicing rights Multi-asset: Any fund or account that allocates assets under management to more than one asset class.NA: Data is not applicable or available for the period presented. NAV: Net Asset Value Net Capital Rule: Rule 15c3-1 under the Securities Exchange Act of 1934.Net charge-off/(recovery) rate: Represents net charge-offs/(recoveries) (annualized) divided by average retained loans for the reporting period.Net interchange income includes the following components:•Interchange income: Fees earned by credit and debit card issuers on sales transactions. •Rewards costs: The cost to the Firm for points earned by cardholders enrolled in credit card rewards programs generally tied to sales transactions.•Partner payments: Payments to co-brand credit card partners based on the cost of loyalty program rewards earned by cardholders on credit card transactions.Net mortgage servicing revenue: Includes operating revenue earned from servicing third-party mortgage loans, which is recognized over the period in which the service is provided; changes in the fair value of MSRs; the impact of risk management activities associated with MSRs; and gains and losses on securitization of excess mortgage servicing. Net mortgage servicing revenue also includes gains and losses on sales and lower of cost or fair value adjustments of certain repurchased loans insured by U.S. government agencies. Net revenue rate: Represents Card Services net revenue (annualized) expressed as a percentage of average loans for the period.Net yield on interest-earning assets: The average rate for interest-earning assets less the average rate paid for all sources of funds.NFA: National Futures AssociationNM: Not meaningfulNOL: Net operating loss Nonaccrual loans: Loans for which interest income is not recognized on an accrual basis. Loans (other than credit card loans and certain consumer loans insured by U.S. government agencies) are placed on nonaccrual status when full payment of principal and interest is not expected, regardless of delinquency status, or when principal and interest have been in default for a period primary residence; or (v) a history of delinquencies or late payments on the loan. MREL: Minimum requirements for own funds and eligible liabilities MSR: Mortgage servicing rights Multi-asset: Any fund or account that allocates assets under management to more than one asset class. NA: Data is not applicable or available for the period presented. NAV: Net Asset Value Net Capital Rule: Rule 15c3-1 under the Securities Exchange Act of 1934. Net charge-off/(recovery) rate: Represents net charge-offs/(recoveries) (annualized) divided by average retained loans for the reporting period. Net interchange income includes the following components: •Interchange income: Fees earned by credit and debit card issuers on sales transactions. •Rewards costs: The cost to the Firm for points earned by cardholders enrolled in credit card rewards programs generally tied to sales transactions. •Partner payments: Payments to co-brand credit card partners based on the cost of loyalty program rewards earned by cardholders on credit card transactions. Net mortgage servicing revenue: Includes operating revenue earned from servicing third-party mortgage loans, which is recognized over the period in which the service is provided; changes in the fair value of MSRs; the impact of risk management activities associated with MSRs; and gains and losses on securitization of excess mortgage servicing. Net mortgage servicing revenue also includes gains and losses on sales and lower of cost or fair value adjustments of certain repurchased loans insured by U.S. government agencies. Net revenue rate: Represents Card Services net revenue (annualized) expressed as a percentage of average loans for the period. Net yield on interest-earning assets: The average rate for interest-earning assets less the average rate paid for all sources of funds. NFA: National Futures Association NM: Not meaningful NOL: Net operating loss Nonaccrual loans: Loans for which interest income is not recognized on an accrual basis. Loans (other than credit card loans and certain consumer loans insured by U.S. government agencies) are placed on nonaccrual status when full payment of principal and interest is not expected, regardless of delinquency status, or when principal and interest have been in default for a period of 90 days or more unless the loan is both well-secured and in the process of collection. Collateral-dependent loans are typically maintained on nonaccrual status. Nonperforming assets: Nonperforming assets include nonaccrual loans, nonperforming derivatives and certain assets acquired in loan satisfactions, predominantly real estate owned and other commercial and personal property.NSFR: Net Stable Funding RatioOAS: Option-adjusted spread OCC: Office of the Comptroller of the Currency OCI: Other comprehensive income/(loss)OPEB: Other postretirement employee benefit Operating losses: Primarily refer to fraud losses associated with customer deposit accounts, credit and debit cards; exclude legal expense.Over-the-counter ("OTC") derivatives: Derivative contracts that are negotiated, executed and settled bilaterally between two derivative counterparties, where one or both counterparties is a derivatives dealer. Over-the-counter cleared ("OTC-cleared") derivatives: Derivative contracts that are negotiated and executed bilaterally, but subsequently settled via a central clearing house, such that each derivative counterparty is only exposed to the default of that clearing house. Overhead ratio: Noninterest expense as a percentage of total net revenue.Parent Company: JPMorgan Chase & Co.Participating securities: Represents unvested share-based compensation awards containing nonforfeitable rights to dividends or dividend equivalents (collectively, "dividends"), which are included in the earnings per share calculation using the two-class method. JPMorganChase grants RSUs to certain employees under its share-based compensation programs, which entitle the recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of common stock. These unvested awards meet the definition of participating securities. Under the two-class method, all earnings (distributed and undistributed) are allocated to each class of common stock and participating securities, based on their respective rights to receive dividends. PCAOB: Public Company Accounting Oversight BoardPCD: "Purchased credit deteriorated" assets represent acquired financial assets that as of the date of acquisition have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by the Firm.PD: Probability of defaultPillar 1: The Basel framework consists of a three "Pillar" approach. Pillar 1 establishes minimum capital of 90 days or more unless the loan is both well-secured and in the process of collection. Collateral-dependent loans are typically maintained on nonaccrual status. Nonperforming assets: Nonperforming assets include nonaccrual loans, nonperforming derivatives and certain assets acquired in loan satisfactions, predominantly real estate owned and other commercial and personal property. NSFR: Net Stable Funding Ratio OAS: Option-adjusted spread OCC: Office of the Comptroller of the Currency OCI: Other comprehensive income/(loss) OPEB: Other postretirement employee benefit Operating losses: Primarily refer to fraud losses associated with customer deposit accounts, credit and debit cards; exclude legal expense. Over-the-counter ("OTC") derivatives: Derivative contracts that are negotiated, executed and settled bilaterally between two derivative counterparties, where one or both counterparties is a derivatives dealer. Over-the-counter cleared ("OTC-cleared") derivatives: Derivative contracts that are negotiated and executed bilaterally, but subsequently settled via a central clearing house, such that each derivative counterparty is only exposed to the default of that clearing house. Overhead ratio: Noninterest expense as a percentage of total net revenue. Parent Company: JPMorgan Chase & Co. Participating securities: Represents unvested share-based compensation awards containing nonforfeitable rights to dividends or dividend equivalents (collectively, "dividends"), which are included in the earnings per share calculation using the two-class method. JPMorganChase grants RSUs to certain employees under its share-based compensation programs, which entitle the recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of common stock. These unvested awards meet the definition of participating securities. Under the two-class method, all earnings (distributed and undistributed) are allocated to each class of common stock and participating securities, based on their respective rights to receive dividends. PCAOB: Public Company Accounting Oversight Board PCD: "Purchased credit deteriorated" assets represent acquired financial assets that as of the date of acquisition have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by the Firm. PD: Probability of default Pillar 1: The Basel framework consists of a three "Pillar" approach. Pillar 1 establishes minimum capital JPMorgan Chase & Co./2024 Form 10-K331 JPMorgan Chase & Co./2024 Form 10-K331 JPMorgan Chase & Co./2024 Form 10-K331 JPMorgan Chase & Co./2024 Form 10-K 331 --- ## Modified Risk: Other intangible assets **Key changes:** - Updated: "Finite-lived intangible assets, including core deposit intangibles, customer relationship intangibles, and certain other intangible assets, are amortized over their useful lives, estimated based on the expected future economic benefits." - Updated: "As of December 31, 2025 and 2024, the gross carrying values of other intangible assets were $3.5 billion and $3.8 billion, respectively, and the accumulated amortization was $962 million and $879 million, respectively." - Updated: "For the years ended December 31, 2025 and 2024, amortization expense was $292 million and $339 million, respectively." - Updated: "December 31, (in millions)Finite-lived intangible assets2026$266 2027264 2028264 2029252 2030100 Impairment testingThe Firm's finite-lived and indefinite-lived other intangible assets are assessed for impairment annually or more often if events or changes in circumstances indicate that the asset might be impaired." - Updated: "276JPMorgan Chase & Co./2025 Form 10-K 276JPMorgan Chase & Co./2025 Form 10-K 276JPMorgan Chase & Co./2025 Form 10-K 276 JPMorgan Chase & Co./2025 Form 10-K Note 16 - Premises and equipmentPremises and equipment includes land carried at cost, as well as buildings, leasehold improvements, internal-use software and furniture and equipment carried at cost less accumulated depreciation and amortization." **Prior (2025):** The Firm's finite-lived and indefinite-lived other intangible assets are initially recorded at their fair value primarily upon completion of a business combination. Subsequently, the Firm's finite-lived intangible assets, including core deposit intangibles, customer relationship intangibles, and certain other intangible assets, are amortized over their useful lives, estimated based on the expected future economic benefits to the Firm of the intangible asset. The Firm's intangible assets with indefinite lives, such as asset management contracts, are not subject to amortization and are assessed periodically for impairment. As of December 31, 2024 and 2023, the gross carrying values of other intangible assets were $3.8 billion and $4.2 billion, respectively, and the accumulated amortization was $879 million and $994 million, respectively. As of December 31, 2024 and 2023, the net carrying values consist of finite-lived intangible assets of $1.7 billion and $2.0 billion, respectively, as well as indefinite-lived intangible assets, which are not subject to amortization, of $1.2 billion at both periods. As of December 31, 2024, other intangible assets reflected core deposit and certain wealth management customer relationship intangibles related to the First Republic acquisition, and asset management contracts related to the Firm's acquisition of the remaining 51% interest in CIFM. Refer to Note 34 for additional information on the First Republic acquisition. For the years ended December 31, 2024 and 2023, amortization expense was $339 million and $315 million, respectively. The following table presents estimated future amortization expense. December 31, (in millions)Finite-lived intangible assets2025$288 2026285 2027284 2028267 2029261 Impairment testingThe Firm's finite-lived and indefinite-lived other intangible assets are assessed for impairment annually or more often if events or changes in circumstances indicate that the asset might be impaired. Once the Firm determines that an impairment exists for an intangible asset, the impairment is recognized in other expense. Impairment testing The Firm's finite-lived and indefinite-lived other intangible assets are assessed for impairment annually or more often if events or changes in circumstances indicate that the asset might be impaired. Once the Firm determines that an impairment exists for an intangible asset, the impairment is recognized in other expense. 284JPMorgan Chase & Co./2024 Form 10-K 284JPMorgan Chase & Co./2024 Form 10-K 284JPMorgan Chase & Co./2024 Form 10-K 284 JPMorgan Chase & Co./2024 Form 10-K Note 16 - Premises and equipmentPremises and equipment includes land carried at cost, as well as buildings, leasehold improvements, internal-use software and furniture and equipment carried at cost less accumulated depreciation and amortization. The Firm's operating lease right-of-use assets are also included in Premises and equipment. Refer to Note 18 for a further discussion of the Firm's right-of-use assets.The following table presents certain components of Premises and equipment.December 31, (in millions)20242023Land, buildings and leasehold improvements$16,874 $14,862 Right-of-use assets(a)7,930 7,917 Other premises and equipment(b)7,419 7,378 Total premises and equipment$32,223 $30,157 (a)Excluded $564 million and $514 million of right-of-use assets that were recorded in Other assets at December 31, 2024 and 2023, respectively.(b)Other premises and equipment is comprised of internal-use software and furniture and equipment.JPMorganChase computes depreciation using the straight-line method over the estimated useful life for buildings and furniture and equipment. The Firm depreciates leasehold improvements over the lesser of the remainder of the lease term or the estimated useful life. The Firm also capitalizes certain costs associated with the acquisition or development of internal-use software. Once the software is ready for its intended use, these costs are amortized on a straight-line basis over the software's expected useful life. The estimated useful lives range from 10 to 50 years for buildings and leasehold improvements, and 3 to 10 years for internal-use software and furniture and equipment.Impairment is assessed when events or changes in circumstances indicate that the carrying value of an asset may not be fully recoverable.Note 17 - Deposits As of December 31, 2024 and 2023, noninterest-bearing and interest-bearing deposits were as follows: December 31, (in millions)20242023U.S. officesNoninterest-bearing (included $28,904 and $75,393 at fair value)(a)$592,500 $643,748 Interest-bearing (included $1,101 and $573 at fair value)(a)1,345,914 1,303,100 Total deposits in U.S. offices1,938,414 1,946,848 Non-U.S. officesNoninterest-bearing (included $2,255 and $1,737 at fair value)(a)26,806 23,097 Interest-bearing (included $1,508 and $681 at fair value)(a)440,812 430,743 Total deposits in non-U.S. offices467,618 453,840 Total deposits$2,406,032 $2,400,688 (a)Includes structured notes classified as deposits for which the fair value option has been elected. Refer to Note 3 for further discussion.As of December 31, 2024 and 2023, time deposits in denominations that met or exceeded the insured limit were as follows:December 31, (in millions)20242023U.S. offices $149,239 $132,654 Non-U.S. offices(a)92,639 90,187 Total$241,878 $222,841 (a)Represents all time deposits in non-U.S. offices as these deposits typically exceed the insured limit. As of December 31, 2024, the remaining maturities of interest-bearing time deposits were as follows:December 31,(in millions) U.S.Non-U.S.Total2025$222,676 $89,427 $312,103 2026749 87 836 2027482 2 484 2028149 18 167 2029314 721 1,035 After 5 years162 129 291 Total$224,532 $90,384 $314,916 Note 16 - Premises and equipmentPremises and equipment includes land carried at cost, as well as buildings, leasehold improvements, internal-use software and furniture and equipment carried at cost less accumulated depreciation and amortization. The Firm's operating lease right-of-use assets are also included in Premises and equipment. Refer to Note 18 for a further discussion of the Firm's right-of-use assets.The following table presents certain components of Premises and equipment.December 31, (in millions)20242023Land, buildings and leasehold improvements$16,874 $14,862 Right-of-use assets(a)7,930 7,917 Other premises and equipment(b)7,419 7,378 Total premises and equipment$32,223 $30,157 (a)Excluded $564 million and $514 million of right-of-use assets that were recorded in Other assets at December 31, 2024 and 2023, respectively.(b)Other premises and equipment is comprised of internal-use software and furniture and equipment.JPMorganChase computes depreciation using the straight-line method over the estimated useful life for buildings and furniture and equipment. The Firm depreciates leasehold improvements over the lesser of the remainder of the lease term or the estimated useful life. The Firm also capitalizes certain costs associated with the acquisition or development of internal-use software. Once the software is ready for its intended use, these costs are amortized on a straight-line basis over the software's expected useful life. The estimated useful lives range from 10 to 50 years for buildings and leasehold improvements, and 3 to 10 years for internal-use software and furniture and equipment.Impairment is assessed when events or changes in circumstances indicate that the carrying value of an asset may not be fully recoverable. **Current (2026):** The Firm's finite-lived and indefinite-lived other intangible assets are initially recorded at their fair value primarily upon completion of a business combination. Finite-lived intangible assets, including core deposit intangibles, customer relationship intangibles, and certain other intangible assets, are amortized over their useful lives, estimated based on the expected future economic benefits. The Firm's intangible assets with indefinite lives, such as asset management contracts, are not subject to amortization and are assessed periodically for impairment. As of December 31, 2025 and 2024, the gross carrying values of other intangible assets were $3.5 billion and $3.8 billion, respectively, and the accumulated amortization was $962 million and $879 million, respectively. As of December 31, 2025 and 2024, the net carrying values consist of finite-lived intangible assets of $1.3 billion and $1.7 billion, respectively, as well as indefinite-lived intangible assets, which are not subject to amortization, of $1.3 billion and $1.2 billion, respectively. As of December 31, 2025, other intangible assets reflected core deposit and certain wealth management customer relationship intangibles related to the First Republic acquisition, and asset management contracts related to the Firm's acquisition of the remaining 51% interest in CIFM. Refer to Note 34 for additional information on the First Republic acquisition. For the years ended December 31, 2025 and 2024, amortization expense was $292 million and $339 million, respectively. The following table presents estimated future amortization expense. December 31, (in millions)Finite-lived intangible assets2026$266 2027264 2028264 2029252 2030100 Impairment testingThe Firm's finite-lived and indefinite-lived other intangible assets are assessed for impairment annually or more often if events or changes in circumstances indicate that the asset might be impaired. Once the Firm determines that an impairment exists for an intangible asset, the impairment is recognized in other expense. Impairment testing The Firm's finite-lived and indefinite-lived other intangible assets are assessed for impairment annually or more often if events or changes in circumstances indicate that the asset might be impaired. Once the Firm determines that an impairment exists for an intangible asset, the impairment is recognized in other expense. 276JPMorgan Chase & Co./2025 Form 10-K 276JPMorgan Chase & Co./2025 Form 10-K 276JPMorgan Chase & Co./2025 Form 10-K 276 JPMorgan Chase & Co./2025 Form 10-K Note 16 - Premises and equipmentPremises and equipment includes land carried at cost, as well as buildings, leasehold improvements, internal-use software and furniture and equipment carried at cost less accumulated depreciation and amortization. The Firm's operating lease right-of-use assets are also included in Premises and equipment. Refer to Note 18 for a further discussion of the Firm's right-of-use assets.The following table presents certain components of Premises and equipment.December 31, (in millions)20252024Land, buildings and leasehold improvements$19,041 $16,874 Right-of-use assets(a)8,424 7,930 Other premises and equipment(b)8,779 7,419 Total premises and equipment$36,244 $32,223 (a)Excluded $477 million and $564 million of right-of-use assets that were recorded in Other assets at December 31, 2025 and 2024, respectively.(b)Other premises and equipment is comprised of internal-use software and furniture and equipment.JPMorganChase computes depreciation using the straight-line method over the estimated useful life for buildings and furniture and equipment. The Firm depreciates leasehold improvements over the lesser of the remainder of the lease term or the estimated useful life. The Firm also capitalizes certain costs associated with the acquisition or development of internal-use software. Once the software is ready for its intended use, these costs are amortized on a straight-line basis over the software's expected useful life. The estimated useful lives range from 10 to 50 years for buildings and leasehold improvements, and 3 to 10 years for internal-use software and furniture and equipment.Impairment is assessed when events or changes in circumstances indicate that the carrying value of an asset may not be fully recoverable.Note 17 - DepositsAs of December 31, 2025 and 2024, noninterest-bearing and interest-bearing deposits were as follows: December 31, (in millions)20252024U.S. officesNoninterest-bearing (included $16,610 and $28,904 at fair value)(a)$583,342 $592,500 Interest-bearing (included $1,085 and $1,101 at fair value)(a)1,452,729 1,345,914 Total deposits in U.S. offices2,036,071 1,938,414 Non-U.S. officesNoninterest-bearing (included $3,099 and $2,255 at fair value)(a)37,057 26,806 Interest-bearing (included $136 and $1,508 at fair value)(a)486,192 440,812 Total deposits in non-U.S. offices523,249 467,618 Total deposits$2,559,320 $2,406,032 (a)Includes structured notes classified as deposits for which the fair value option has been elected. Refer to Note 3 for further discussion.As of December 31, 2025 and 2024, time deposits in denominations that met or exceeded the insured limit were as follows:December 31, (in millions)20252024U.S. offices $155,114 $149,239 Non-U.S. offices(a)89,085 92,639 Total$244,199 $241,878 (a)Represents all time deposits in non-U.S. offices as these deposits typically exceed the insured limit. As of December 31, 2025, the remaining maturities of interest-bearing time deposits were as follows:December 31,(in millions) U.S.Non-U.S.Total2026$223,575 $85,868 $309,443 2027746 - 746 2028195 - 195 2029612 - 612 2030156 - 156 After 5 years130 118 248 Total$225,414 $85,986 $311,400 Note 16 - Premises and equipmentPremises and equipment includes land carried at cost, as well as buildings, leasehold improvements, internal-use software and furniture and equipment carried at cost less accumulated depreciation and amortization. The Firm's operating lease right-of-use assets are also included in Premises and equipment. Refer to Note 18 for a further discussion of the Firm's right-of-use assets.The following table presents certain components of Premises and equipment.December 31, (in millions)20252024Land, buildings and leasehold improvements$19,041 $16,874 Right-of-use assets(a)8,424 7,930 Other premises and equipment(b)8,779 7,419 Total premises and equipment$36,244 $32,223 (a)Excluded $477 million and $564 million of right-of-use assets that were recorded in Other assets at December 31, 2025 and 2024, respectively.(b)Other premises and equipment is comprised of internal-use software and furniture and equipment.JPMorganChase computes depreciation using the straight-line method over the estimated useful life for buildings and furniture and equipment. The Firm depreciates leasehold improvements over the lesser of the remainder of the lease term or the estimated useful life. The Firm also capitalizes certain costs associated with the acquisition or development of internal-use software. Once the software is ready for its intended use, these costs are amortized on a straight-line basis over the software's expected useful life. The estimated useful lives range from 10 to 50 years for buildings and leasehold improvements, and 3 to 10 years for internal-use software and furniture and equipment.Impairment is assessed when events or changes in circumstances indicate that the carrying value of an asset may not be fully recoverable. --- ## Modified Risk: Mortgage fees and related income **Key changes:** - Updated: "In reality, changes in one factor may result in changes in another, which would either magnify or counteract the impact of the initial change.The table below outlines the key economic assumptions used to determine the fair value of the Firm's MSRs at December 31, 2025 and 2024, and outlines the sensitivities of those fair values to immediate adverse changes in those assumptions, as defined below.December 31,(in millions, except rates)20252024Weighted-average prepayment speed assumption (constant prepayment rate)6.77 %6.19 %Impact on fair value of 10% adverse change$(181)$(209)Impact on fair value of 20% adverse change(353)(406)Weighted-average option adjusted spread(a)6.14 %5.97 %Impact on fair value of 100 basis points adverse change$(394)$(391)Impact on fair value of 200 basis points adverse change(757)(751)(a)Includes the impact of operational risk and regulatory capital." - Updated: "The table below outlines the key economic assumptions used to determine the fair value of the Firm's MSRs at December 31, 2025 and 2024, and outlines the sensitivities of those fair values to immediate adverse changes in those assumptions, as defined below." **Prior (2025):** (a)Represents both the impact of changes in estimated future prepayments due to changes in market interest rates, and the difference between actual and expected prepayments. (b)Represents the aggregate impact of changes in model inputs and assumptions such as projected cash flows (e.g., cost to service), discount rates and changes in prepayments other than those attributable to changes in market interest rates (e.g., changes in prepayments due to changes in home prices). Changes in fair value based on variations in assumptions generally cannot be easily extrapolated, because the relationship of the change in the assumptions to the change in fair value are often highly interrelated and may not be linear. In the following table, the effect that a change in a particular assumption may have on the fair value is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another, which would either magnify or counteract the impact of the initial change.The table below outlines the key economic assumptions used to determine the fair value of the Firm's MSRs at December 31, 2024 and 2023, and outlines the sensitivities of those fair values to immediate adverse changes in those assumptions, as defined below.December 31,(in millions, except rates)20242023Weighted-average prepayment speed assumption (constant prepayment rate)6.19 %6.29 %Impact on fair value of 10% adverse change$(209)$(206)Impact on fair value of 20% adverse change(406)(401)Weighted-average option adjusted spread(a)5.97 %6.10 %Impact on fair value of 100 basis points adverse change$(391)$(369)Impact on fair value of 200 basis points adverse change(751)(709)(a)Includes the impact of operational risk and regulatory capital. Changes in fair value based on variations in assumptions generally cannot be easily extrapolated, because the relationship of the change in the assumptions to the change in fair value are often highly interrelated and may not be linear. In the following table, the effect that a change in a particular assumption may have on the fair value is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another, which would either magnify or counteract the impact of the initial change. The table below outlines the key economic assumptions used to determine the fair value of the Firm's MSRs at December 31, 2024 and 2023, and outlines the sensitivities of those fair values to immediate adverse changes in those assumptions, as defined below. December 31,(in millions, except rates)20242023Weighted-average prepayment speed assumption (constant prepayment rate)6.19 %6.29 %Impact on fair value of 10% adverse change$(209)$(206)Impact on fair value of 20% adverse change(406)(401)Weighted-average option adjusted spread(a)5.97 %6.10 %Impact on fair value of 100 basis points adverse change$(391)$(369)Impact on fair value of 200 basis points adverse change(751)(709) Weighted-average prepayment speed assumption (constant prepayment rate) Impact on fair value of 10% adverse change Impact on fair value of 20% adverse change Weighted-average option adjusted spread(a) Impact on fair value of 100 basis points adverse change Impact on fair value of 200 basis points adverse change (a)Includes the impact of operational risk and regulatory capital. JPMorgan Chase & Co./2024 Form 10-K283 JPMorgan Chase & Co./2024 Form 10-K283 JPMorgan Chase & Co./2024 Form 10-K283 JPMorgan Chase & Co./2024 Form 10-K 283 **Current (2026):** (a)Represents both the impact of changes in estimated future prepayments due to changes in market interest rates, and the difference between actual and expected prepayments. (b)Represents the aggregate impact of changes in model inputs and assumptions such as projected cash flows (e.g., cost to service), discount rates and changes in prepayments other than those attributable to changes in market interest rates (e.g., changes in prepayments due to changes in home prices). Changes in fair value based on variations in assumptions generally cannot be easily extrapolated, because the relationship of the change in the assumptions to the change in fair value are often highly interrelated and may not be linear. In the following table, the effect that a change in a particular assumption may have on the fair value is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another, which would either magnify or counteract the impact of the initial change.The table below outlines the key economic assumptions used to determine the fair value of the Firm's MSRs at December 31, 2025 and 2024, and outlines the sensitivities of those fair values to immediate adverse changes in those assumptions, as defined below.December 31,(in millions, except rates)20252024Weighted-average prepayment speed assumption (constant prepayment rate)6.77 %6.19 %Impact on fair value of 10% adverse change$(181)$(209)Impact on fair value of 20% adverse change(353)(406)Weighted-average option adjusted spread(a)6.14 %5.97 %Impact on fair value of 100 basis points adverse change$(394)$(391)Impact on fair value of 200 basis points adverse change(757)(751)(a)Includes the impact of operational risk and regulatory capital. Changes in fair value based on variations in assumptions generally cannot be easily extrapolated, because the relationship of the change in the assumptions to the change in fair value are often highly interrelated and may not be linear. In the following table, the effect that a change in a particular assumption may have on the fair value is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another, which would either magnify or counteract the impact of the initial change. The table below outlines the key economic assumptions used to determine the fair value of the Firm's MSRs at December 31, 2025 and 2024, and outlines the sensitivities of those fair values to immediate adverse changes in those assumptions, as defined below. December 31,(in millions, except rates)20252024Weighted-average prepayment speed assumption (constant prepayment rate)6.77 %6.19 %Impact on fair value of 10% adverse change$(181)$(209)Impact on fair value of 20% adverse change(353)(406)Weighted-average option adjusted spread(a)6.14 %5.97 %Impact on fair value of 100 basis points adverse change$(394)$(391)Impact on fair value of 200 basis points adverse change(757)(751) Weighted-average prepayment speed assumption (constant prepayment rate) Impact on fair value of 10% adverse change Impact on fair value of 20% adverse change Weighted-average option adjusted spread(a) Impact on fair value of 100 basis points adverse change Impact on fair value of 200 basis points adverse change (a)Includes the impact of operational risk and regulatory capital. JPMorgan Chase & Co./2025 Form 10-K275 JPMorgan Chase & Co./2025 Form 10-K275 JPMorgan Chase & Co./2025 Form 10-K275 JPMorgan Chase & Co./2025 Form 10-K 275 --- ## Modified Risk: Executive officers of the registrant **Key changes:** - Updated: "AgeName(at December 31, 2025)Positions and officesJames Dimon69Chairman of the Board since December 2006 and Chief Executive Officer since December 2005.Ashley Bacon56Chief Risk Officer since June 2013." - Updated: "Beer58Chief Information Officer since September 2017.Mary Callahan Erdoes58Chief Executive Officer of Asset & Wealth Management since September 2009.Stacey Friedman57General Counsel since January 2016." - Updated: "Co-Chief Executive Officer of the Commercial & Investment Bank since January 2025, having previously served as Co-Head of Global Banking since January 2024, prior to which he had been Chief Executive Officer of the former Commercial Banking since January 2012." - Updated: "Unless otherwise noted, during the five fiscal years ended December 31, 2025, all of JPMorganChase's above-named executive officers have continuously held senior-level positions with JPMorganChase." - Updated: "Information to be provided in Items 10, 11, 12, 13 and 14 of this 2025 Form 10-K and not otherwise included herein is incorporated by reference to the Firm's Definitive Proxy Statement for its 2026 Annual Meeting of Stockholders to be held on May 19, 2026, which will be filed with the SEC within 120 days of the end of the Firm's fiscal year ended December 31, 2025." **Prior (2025):** AgeName(at December 31, 2024)Positions and officesJames Dimon68Chairman of the Board since December 2006 and Chief Executive Officer since December 2005.Ashley Bacon55Chief Risk Officer since June 2013. Jeremy Barnum52Chief Financial Officer since May 2021, prior to which he was Head of Global Research for the former Corporate & Investment Bank since February 2021. He previously served as Chief Financial Officer of the former Corporate & Investment Bank from July 2013 until February 2021.Lori A. Beer57Chief Information Officer since September 2017.Mary Callahan Erdoes57Chief Executive Officer of Asset & Wealth Management since September 2009.Stacey Friedman56General Counsel since January 2016. Marianne Lake55Chief Executive Officer of Consumer & Community Banking since January 2024, having previously served as its Co-Chief Executive Officer since May 2021. She was Chief Executive Officer of Consumer Lending from May 2019 until May 2021.Robin Leopold60Head of Human Resources since January 2018.Jennifer A. Piepszak(a)(b)54Co-Chief Executive Officer of the Commercial & Investment Bank, having previously served as Co-Chief Executive Officer of Consumer & Community Banking since May 2021, prior to which she had been Chief Financial Officer since May 2019.Daniel E. Pinto(a)(b)62President and Chief Operating Officer since January 2022, Co-President and Co-Chief Operating Officer since January 2018. He also served as Chief Executive Officer of the former Corporate & Investment Bank from March 2014 until January 2024.Troy Rohrbaugh(a)54Co-Chief Executive Officer of the Commercial & Investment Bank since January 2024, prior to which he had been the Co-Head of Markets & Securities Services since June 2023. He was Head of Global Markets from January 2019 until June 2023. Chairman of the Board since December 2006 and Chief Executive Officer since December 2005. Chief Information Officer since September 2017. General Counsel since January 2016. Marianne Lake Chief Executive Officer of Consumer & Community Banking since January 2024, having previously served as its Co-Chief Executive Officer since May 2021. She was Chief Executive Officer of Consumer Lending from May 2019 until May 2021. Head of Human Resources since January 2018. Jennifer A. Piepszak(a)(b) Co-Chief Executive Officer of the Commercial & Investment Bank, having previously served as Co-Chief Executive Officer of Consumer & Community Banking since May 2021, prior to which she had been Chief Financial Officer since May 2019. Daniel E. Pinto(a)(b) President and Chief Operating Officer since January 2022, Co-President and Co-Chief Operating Officer since January 2018. He also served as Chief Executive Officer of the former Corporate & Investment Bank from March 2014 until January 2024. Troy Rohrbaugh(a) Co-Chief Executive Officer of the Commercial & Investment Bank since January 2024, prior to which he had been the Co-Head of Markets & Securities Services since June 2023. He was Head of Global Markets from January 2019 until June 2023. Unless otherwise noted, during the five fiscal years ended December 31, 2024, all of JPMorganChase's above-named executive officers have continuously held senior-level positions with JPMorganChase. There are no family relationships among the foregoing executive officers. Information to be provided in Items 10, 11, 12, 13 and 14 of this 2024 Form 10-K and not otherwise included herein is incorporated by reference to the Firm's Definitive Proxy Statement for its 2025 Annual Meeting of Stockholders to be held on May 20, 2025, which will be filed with the SEC within 120 days of the end of the Firm's fiscal year ended December 31, 2024. (a)Effective in the second quarter of 2024, JPMorganChase reorganized its reportable business segments by combining the former Corporate & Investment Bank and Commercial Banking business segments to form one reportable segment, the Commercial & Investment Bank. Refer to Business Segment & Corporate Results on page 70 for further information. (b)On January 14, 2025, JPMorganChase announced new responsibilities for certain executives: Mr. Pinto will retire at the end of 2026, will relinquish his duties as President and Chief Operating Officer as of June 30, 2025, and will continue to serve as Vice Chairman through the end of 2026; Ms. Piepszak became a Chief Operating Officer of the Firm, effective January 14, 2025; and Doug Petno, Co-Head of Global Banking, succeeded Ms. Piepszak as co-Chief Executive Officer of the Commercial & Investment Bank. Refer to Recent events on page 57 of this 2024 Form 10-K for further information. **Current (2026):** AgeName(at December 31, 2025)Positions and officesJames Dimon69Chairman of the Board since December 2006 and Chief Executive Officer since December 2005.Ashley Bacon56Chief Risk Officer since June 2013. Jeremy Barnum53Chief Financial Officer since May 2021, prior to which he was Head of Global Research for the former Corporate & Investment Bank since February 2021. He previously served as Chief Financial Officer of the former Corporate & Investment Bank from July 2013 until February 2021.Lori A. Beer58Chief Information Officer since September 2017.Mary Callahan Erdoes58Chief Executive Officer of Asset & Wealth Management since September 2009.Stacey Friedman57General Counsel since January 2016. Marianne Lake56Chief Executive Officer of Consumer & Community Banking since January 2024, having previously served as its Co-Chief Executive Officer since May 2021. She was Chief Executive Officer of Consumer Lending from May 2019 until May 2021.Robin Leopold61Head of Human Resources since January 2018.Douglas B. Petno60Co-Chief Executive Officer of the Commercial & Investment Bank since January 2025, having previously served as Co-Head of Global Banking since January 2024, prior to which he had been Chief Executive Officer of the former Commercial Banking since January 2012.Jennifer A. Piepszak55Chief Operating Officer since January 2025, having previously served as Co-Chief Executive Officer of the Commercial & Investment Bank since January 2024, prior to which she had been Co-Chief Executive Officer of Consumer & Community Banking since May 2021. She was Chief Financial Officer from May 2019 until May 2021.Troy Rohrbaugh55Co-Chief Executive Officer of the Commercial & Investment Bank since January 2024, prior to which he had been the Co-Head of Markets & Securities Services since June 2023. He was Head of Global Markets from January 2019 until June 2023. Chairman of the Board since December 2006 and Chief Executive Officer since December 2005. Chief Information Officer since September 2017. General Counsel since January 2016. Marianne Lake Chief Executive Officer of Consumer & Community Banking since January 2024, having previously served as its Co-Chief Executive Officer since May 2021. She was Chief Executive Officer of Consumer Lending from May 2019 until May 2021. Head of Human Resources since January 2018. Co-Chief Executive Officer of the Commercial & Investment Bank since January 2025, having previously served as Co-Head of Global Banking since January 2024, prior to which he had been Chief Executive Officer of the former Commercial Banking since January 2012. Chief Operating Officer since January 2025, having previously served as Co-Chief Executive Officer of the Commercial & Investment Bank since January 2024, prior to which she had been Co-Chief Executive Officer of Consumer & Community Banking since May 2021. She was Chief Financial Officer from May 2019 until May 2021. Co-Chief Executive Officer of the Commercial & Investment Bank since January 2024, prior to which he had been the Co-Head of Markets & Securities Services since June 2023. He was Head of Global Markets from January 2019 until June 2023. Unless otherwise noted, during the five fiscal years ended December 31, 2025, all of JPMorganChase's above-named executive officers have continuously held senior-level positions with JPMorganChase. There are no family relationships among the foregoing executive officers. Information to be provided in Items 10, 11, 12, 13 and 14 of this 2025 Form 10-K and not otherwise included herein is incorporated by reference to the Firm's Definitive Proxy Statement for its 2026 Annual Meeting of Stockholders to be held on May 19, 2026, which will be filed with the SEC within 120 days of the end of the Firm's fiscal year ended December 31, 2025. --- ## Modified Risk: Capital actions **Key changes:** - Updated: "On December 9, 2025, the Firm announced that its Board of Directors had declared a quarterly common stock dividend of $1.50 per share, payable on January 31, 2026." - Updated: "Year ended December 31,202520242023Common dividend payout ratio29 %24 %25 % Common stock repurchases On July 1, 2025, the Firm announced that its Board of Directors had authorized a new $50 billion common share repurchase program, effective July 1, 2025." - Updated: "The common share repurchase program approved by the Board of Directors does not establish specific price targets or timetables." - Updated: "The Firm's common share repurchases may be suspended by management at any time; and may be executed through open market purchases or privately negotiated transactions, or utilizing Rule 10b5-1 plans, which are written trading plans that the Firm may enter into from time to time under Rule 10b5-1 of the Securities Exchange Act of 1934 and which allow the Firm to repurchase its common shares during periods when it may otherwise not be repurchasing common shares - for example, during internal trading blackout periods.Refer to Capital planning and stress testing on pages 89-90 for additional information.Refer to Part II, Item 5: Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities on page 33 of this 2025 Form 10-K for additional information regarding repurchases of the Firm's equity securities.Preferred stock Preferred stock dividends were $1.1 billion, $1.3 billion, and $1.5 billion for the years ended December 31, 2025, 2024, and 2023, respectively.During the year ended December 31, 2025, the Firm issued and redeemed certain series of non-cumulative preferred stock." - Updated: "The common share repurchase program approved by the Board of Directors does not establish specific price targets or timetables." **Prior (2025):** Common stock dividends The Firm's common stock dividends are planned as part of the Capital Management governance framework in line with the Firm's capital management objectives. On December 9, 2024, the Firm announced that its Board of Directors had declared a quarterly common stock dividend of $1.25 per share, payable on January 31, 2025. The Firm's dividends are subject to approval by the Board of Directors on a quarterly basis. Refer to Note 21 and Note 26 for information regarding dividend restrictions. The following table shows the common dividend payout ratio based on net income applicable to common equity. Year ended December 31,202420232022Common dividend payout ratio24 %25 %33 % Common stock On June 28, 2024, the Firm announced that its Board of Directors had authorized a new $30 billion common share repurchase program, effective July 1, 2024. Through June 30, 2024, the Firm was authorized to purchase up to $30 billion of common shares under its previously-approved common share repurchase program that was announced on April 13, 2022. The following table sets forth the Firm's repurchases of common stock for the years ended December 31, 2024, 2023 and 2022. Year ended December 31, (in millions)202420232022(b)Total number of shares of common stock repurchased91.7 69.5 23.1 Aggregate purchase price of common stock repurchases(a)$18,841 $9,898 $3,122 Year ended December 31, (in millions) 2024 2022(b) Total number of shares of common stock repurchased Aggregate purchase price of common stock repurchases(a) (a)Excludes excise tax and commissions. As part of the Inflation Reduction Act of 2022, a 1% excise tax is imposed on net share repurchases commencing January 1, 2023. (b)In the second half of 2022, the Firm temporarily suspended share repurchases, which it resumed in the first quarter of 2023 under its common share repurchase program. The Board of Directors' authorization to repurchase common shares is utilized at management's discretion. The $30 billion common share repurchase program approved by the Board of Directors does not establish specific price targets or timetables. Management determines the amount and timing of common share repurchases based on various factors, including market conditions; legal and regulatory considerations affecting the amount and timing of repurchase activity; the Firm's capital position (taking into account goodwill and intangibles); organic capital generation; current and proposed future capital requirements; and other investment opportunities. The amount of common shares that the Firm repurchases in any period may be substantially more or less than the amounts estimated or actually repurchased in prior periods, reflecting the dynamic nature of the decision-making process. The Firm's common share repurchases may be suspended by management at any time; and may be executed through open market purchases or privately negotiated transactions, or utilizing Rule 10b5-1 plans, which are written trading plans that the Firm may enter into from time to time under Rule 10b5-1 of the Securities Exchange Act of 1934 and which allow the Firm to repurchase its common shares during periods when it may otherwise not be repurchasing common shares - for example, during internal trading blackout periods.Refer to capital planning and stress testing on pages 97-98 for additional information.Refer to Part II, Item 5: Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities on page 39 of this 2024 Form 10-K for additional information regarding repurchases of the Firm's equity securities.Preferred stock Preferred stock dividends were $1.3 billion, $1.5 billion, and $1.6 billion for the years ended December 31, 2024, 2023, and 2022, respectively.During the year ended and subsequent to December 31, 2024, the Firm issued and redeemed certain series of non-cumulative preferred stock. Refer to Note 21 for additional information on the Firm's preferred stock, including the issuance and redemption of preferred stock.Subordinated Debt Refer to Long-term funding on page 114 and Note 20 for additional information on the Firm's subordinated debt. The Board of Directors' authorization to repurchase common shares is utilized at management's discretion. The $30 billion common share repurchase program approved by the Board of Directors does not establish specific price targets or timetables. Management determines the amount and timing of common share repurchases based on various factors, including market conditions; legal and regulatory considerations affecting the amount and timing of repurchase activity; the Firm's capital position (taking into account goodwill and intangibles); organic capital generation; current and proposed future capital requirements; and other investment opportunities. The amount of common shares that the Firm repurchases in any period may be substantially more or less than the amounts estimated or actually repurchased in prior periods, reflecting the dynamic nature of the decision-making process. The Firm's common share repurchases may be suspended by management at any time; and may be executed through open market purchases or privately negotiated transactions, or utilizing Rule 10b5-1 plans, which are written trading plans that the Firm may enter into from time to time under Rule 10b5-1 of the Securities Exchange Act of 1934 and which allow the Firm to repurchase its common shares during periods when it may otherwise not be repurchasing common shares - for example, during internal trading blackout periods. Refer to capital planning and stress testing on pages 97-98 for additional information. Refer to Part II, Item 5: Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities on page 39 of this 2024 Form 10-K for additional information regarding repurchases of the Firm's equity securities. Preferred stock Preferred stock dividends were $1.3 billion, $1.5 billion, and $1.6 billion for the years ended December 31, 2024, 2023, and 2022, respectively. During the year ended and subsequent to December 31, 2024, the Firm issued and redeemed certain series of non-cumulative preferred stock. Refer to Note 21 for additional information on the Firm's preferred stock, including the issuance and redemption of preferred stock. Subordinated Debt Refer to Long-term funding on page 114 and Note 20 for additional information on the Firm's subordinated debt. JPMorgan Chase & Co./2024 Form 10-K105 JPMorgan Chase & Co./2024 Form 10-K105 JPMorgan Chase & Co./2024 Form 10-K105 JPMorgan Chase & Co./2024 Form 10-K 105 **Current (2026):** Common stock dividends The Firm's common stock dividends are planned as part of the Capital Management governance framework in line with the Firm's capital management objectives. On December 9, 2025, the Firm announced that its Board of Directors had declared a quarterly common stock dividend of $1.50 per share, payable on January 31, 2026. The Firm's dividends are subject to approval by the Board of Directors on a quarterly basis. Refer to Note 21 and Note 26 for information regarding dividend restrictions. The following table shows the common dividend payout ratio based on net income applicable to common equity. Year ended December 31,202520242023Common dividend payout ratio29 %24 %25 % Common stock repurchases On July 1, 2025, the Firm announced that its Board of Directors had authorized a new $50 billion common share repurchase program, effective July 1, 2025. Through June 30, 2025, the Firm was authorized to purchase up to $30 billion of common shares under its previously-approved common share repurchase program that was announced on June 28, 2024. The following table sets forth the Firm's repurchases of common stock for the years ended December 31, 2025, 2024 and 2023. Year ended December 31, (in millions)202520242023Total number of shares of common stock repurchased114.4 91.7 69.5 Aggregate purchase price of common stock repurchases(a)$31,640 $18,841 $9,898 Year ended December 31, (in millions) 2025 Total number of shares of common stock repurchased Aggregate purchase price of common stock repurchases(a) (a)Excludes excise tax and commissions. The Board of Directors' authorization to repurchase common shares is utilized at management's discretion. The common share repurchase program approved by the Board of Directors does not establish specific price targets or timetables. Management determines the amount and timing of common share repurchases based on various factors, including market conditions; legal and regulatory considerations affecting the amount and timing of repurchase activity; the Firm's capital position (taking into account goodwill and intangibles); organic capital generation; current and proposed future capital requirements; and other investment opportunities. The amount of common shares that the Firm repurchases in any period may be substantially more or less than the amounts estimated or actually repurchased in prior periods, reflecting the dynamic nature of the decision-making process. The Firm's common share repurchases may be suspended by management at any time; and may be executed through open market purchases or privately negotiated transactions, or utilizing Rule 10b5-1 plans, which are written trading plans that the Firm may enter into from time to time under Rule 10b5-1 of the Securities Exchange Act of 1934 and which allow the Firm to repurchase its common shares during periods when it may otherwise not be repurchasing common shares - for example, during internal trading blackout periods.Refer to Capital planning and stress testing on pages 89-90 for additional information.Refer to Part II, Item 5: Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities on page 33 of this 2025 Form 10-K for additional information regarding repurchases of the Firm's equity securities.Preferred stock Preferred stock dividends were $1.1 billion, $1.3 billion, and $1.5 billion for the years ended December 31, 2025, 2024, and 2023, respectively.During the year ended December 31, 2025, the Firm issued and redeemed certain series of non-cumulative preferred stock. Refer to Note 21 for additional information on the Firm's preferred stock, including the issuance and redemption of preferred stock. The Board of Directors' authorization to repurchase common shares is utilized at management's discretion. The common share repurchase program approved by the Board of Directors does not establish specific price targets or timetables. Management determines the amount and timing of common share repurchases based on various factors, including market conditions; legal and regulatory considerations affecting the amount and timing of repurchase activity; the Firm's capital position (taking into account goodwill and intangibles); organic capital generation; current and proposed future capital requirements; and other investment opportunities. The amount of common shares that the Firm repurchases in any period may be substantially more or less than the amounts estimated or actually repurchased in prior periods, reflecting the dynamic nature of the decision-making process. The Firm's common share repurchases may be suspended by management at any time; and may be executed through open market purchases or privately negotiated transactions, or utilizing Rule 10b5-1 plans, which are written trading plans that the Firm may enter into from time to time under Rule 10b5-1 of the Securities Exchange Act of 1934 and which allow the Firm to repurchase its common shares during periods when it may otherwise not be repurchasing common shares - for example, during internal trading blackout periods. Refer to Capital planning and stress testing on pages 89-90 for additional information. Refer to Part II, Item 5: Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities on page 33 of this 2025 Form 10-K for additional information regarding repurchases of the Firm's equity securities. Preferred stock Preferred stock dividends were $1.1 billion, $1.3 billion, and $1.5 billion for the years ended December 31, 2025, 2024, and 2023, respectively. During the year ended December 31, 2025, the Firm issued and redeemed certain series of non-cumulative preferred stock. Refer to Note 21 for additional information on the Firm's preferred stock, including the issuance and redemption of preferred stock. JPMorgan Chase & Co./2025 Form 10-K97 JPMorgan Chase & Co./2025 Form 10-K97 JPMorgan Chase & Co./2025 Form 10-K97 JPMorgan Chase & Co./2025 Form 10-K 97 --- ## Modified Risk: Note 34 - Business combinations **Key changes:** - Updated: "The measurement period ended on April 30, 2024.On January 17, 2025, the Firm reached an agreement with the FDIC with respect to certain outstanding items." - Updated: "The measurement period ended on April 30, 2024.On January 17, 2025, the Firm reached an agreement with the FDIC with respect to certain outstanding items." - Updated: "The measurement period ended on April 30, 2024." - Updated: "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." - Updated: "312JPMorgan Chase & Co./2025 Form 10-K 312JPMorgan Chase & Co./2025 Form 10-K 312JPMorgan Chase & Co./2025 Form 10-K 312 JPMorgan Chase & Co./2025 Form 10-K The computation of the purchase price, the fair values of the assets acquired and liabilities assumed as part of the First Republic acquisition and the related bargain purchase gain are presented below, which reflects adjustments made during the measurement period to the acquisition-date fair value of the net assets acquired." **Prior (2025):** On May 1, 2023, JPMorganChase acquired certain assets and assumed certain liabilities of First Republic Bank (the "First Republic acquisition") from the Federal Deposit Insurance Corporation ("FDIC"), as receiver. The acquisition resulted in a bargain purchase gain, which represents the excess of the estimated fair value of the net assets acquired above the purchase price. The Firm has determined that this acquisition constitutes a business combination under U.S. GAAP. Accordingly, the initial recognition of the assets acquired and liabilities assumed were generally measured at their estimated fair values as of May 1, 2023. The determination of those fair values required management to make certain market-based assumptions about expected future cash flows, discount rates and other valuation inputs at the time of the acquisition. The Firm believes that the fair value estimates of the assets acquired and liabilities assumed provide a reasonable basis for determining the estimated bargain purchase gain. The First Republic acquisition resulted in a preliminary estimated bargain purchase gain of $2.7 billion. The final bargain purchase gain of $2.9 billion reflects adjustments of $103 million and $63 million for the years ended December 31, 2024 and 2023, respectively, made during the one-year measurement period, as permitted by U.S. GAAP, to finalize management's fair value estimates for the assets acquired and liabilities assumed. As of December 31, 2024, certain matters related to the final settlement remained outstanding between the Firm and the FDIC. On January 17, 2025, the Firm reached an agreement with the FDIC with respect to certain outstanding items. As a result of the agreement, the Firm made a payment of $609 million to the FDIC on January 31, 2025 and reduced its additional payable to the FDIC, which will result in a gain of approximately $600 million to be recorded in other income in the first quarter of 2025.In connection with the First Republic acquisition, the Firm and the FDIC entered into two shared-loss agreements with respect to certain loans and lending-related commitments (the "shared-loss assets"): the Commercial Shared-Loss Agreement ("CSLA") and the Single-Family Shared-Loss Agreement ("SFSLA"). The CSLA covers 80% of credit losses, on a pari passu basis, over 5 years with a subsequent 3-year recovery period for certain acquired commercial loans and other real estate exposure. The SFSLA covers 80% of credit losses, on a pari passu basis, for 7 years for certain acquired loans secured by mortgages on real property or shares in cooperative property constituting a primary residence. The indemnification assets, which represent the fair value of the CSLA and SFSLA on the acquisition date, are reflected in the total assets acquired.As part of the consideration paid, JPMorganChase issued a five-year, $50 billion secured note to the FDIC (the "Purchase Money Note"). The Purchase Money Note bears interest at a fixed rate of 3.4% and is secured by certain of the acquired loans. The Purchase Money Note is prepayable upon notice to the holder.The Firm had placed a $5 billion deposit with First Republic Bank on March 16, 2023, as part of $30 billion of deposits provided by a consortium of large U.S. banks. The Firm's $5 billion deposit was effectively settled as part of the acquisition and the associated allowance for credit losses was released upon closing. The Firm subsequently repaid the remaining $25 billion of deposits to the consortium of banks, including accrued interest through the payment date on May 9, 2023. On May 1, 2023, JPMorganChase acquired certain assets and assumed certain liabilities of First Republic Bank (the "First Republic acquisition") from the Federal Deposit Insurance Corporation ("FDIC"), as receiver. The acquisition resulted in a bargain purchase gain, which represents the excess of the estimated fair value of the net assets acquired above the purchase price. The Firm has determined that this acquisition constitutes a business combination under U.S. GAAP. Accordingly, the initial recognition of the assets acquired and liabilities assumed were generally measured at their estimated fair values as of May 1, 2023. The determination of those fair values required management to make certain market-based assumptions about expected future cash flows, discount rates and other valuation inputs at the time of the acquisition. The Firm believes that the fair value estimates of the assets acquired and liabilities assumed provide a reasonable basis for determining the estimated bargain purchase gain. The First Republic acquisition resulted in a preliminary estimated bargain purchase gain of $2.7 billion. The final bargain purchase gain of $2.9 billion reflects adjustments of $103 million and $63 million for the years ended December 31, 2024 and 2023, respectively, made during the one-year measurement period, as permitted by U.S. GAAP, to finalize management's fair value estimates for the assets acquired and liabilities assumed. As of December 31, 2024, certain matters related to the final settlement remained outstanding between the Firm and the FDIC. On January 17, 2025, the Firm reached an agreement with the FDIC with respect to certain outstanding items. As a result of the agreement, the Firm made a payment of $609 million to the FDIC on January 31, 2025 and reduced its additional payable to the FDIC, which will result in a gain of approximately $600 million to be recorded in other income in the first quarter of 2025. On May 1, 2023, JPMorganChase acquired certain assets and assumed certain liabilities of First Republic Bank (the "First Republic acquisition") from the Federal Deposit Insurance Corporation ("FDIC"), as receiver. The acquisition resulted in a bargain purchase gain, which represents the excess of the estimated fair value of the net assets acquired above the purchase price. The Firm has determined that this acquisition constitutes a business combination under U.S. GAAP. Accordingly, the initial recognition of the assets acquired and liabilities assumed were generally measured at their estimated fair values as of May 1, 2023. The determination of those fair values required management to make certain market-based assumptions about expected future cash flows, discount rates and other valuation inputs at the time of the acquisition. The Firm believes that the fair value estimates of the assets acquired and liabilities assumed provide a reasonable basis for determining the estimated bargain purchase gain. The First Republic acquisition resulted in a preliminary estimated bargain purchase gain of $2.7 billion. The final bargain purchase gain of $2.9 billion reflects adjustments of $103 million and $63 million for the years ended December 31, 2024 and 2023, respectively, made during the one-year measurement period, as permitted by U.S. GAAP, to finalize management's fair value estimates for the assets acquired and liabilities assumed. As of December 31, 2024, certain matters related to the final settlement remained outstanding between the Firm and the FDIC. On January 17, 2025, the Firm reached an agreement with the FDIC with respect to certain outstanding items. As a result of the agreement, the Firm made a payment of $609 million to the FDIC on January 31, 2025 and reduced its additional payable to the FDIC, which will result in a gain of approximately $600 million to be recorded in other income in the first quarter of 2025. In connection with the First Republic acquisition, the Firm and the FDIC entered into two shared-loss agreements with respect to certain loans and lending-related commitments (the "shared-loss assets"): the Commercial Shared-Loss Agreement ("CSLA") and the Single-Family Shared-Loss Agreement ("SFSLA"). The CSLA covers 80% of credit losses, on a pari passu basis, over 5 years with a subsequent 3-year recovery period for certain acquired commercial loans and other real estate exposure. The SFSLA covers 80% of credit losses, on a pari passu basis, for 7 years for certain acquired loans secured by mortgages on real property or shares in cooperative property constituting a primary residence. The indemnification assets, which represent the fair value of the CSLA and SFSLA on the acquisition date, are reflected in the total assets acquired.As part of the consideration paid, JPMorganChase issued a five-year, $50 billion secured note to the FDIC (the "Purchase Money Note"). The Purchase Money Note bears interest at a fixed rate of 3.4% and is secured by certain of the acquired loans. The Purchase Money Note is prepayable upon notice to the holder.The Firm had placed a $5 billion deposit with First Republic Bank on March 16, 2023, as part of $30 billion of deposits provided by a consortium of large U.S. banks. The Firm's $5 billion deposit was effectively settled as part of the acquisition and the associated allowance for credit losses was released upon closing. The Firm subsequently repaid the remaining $25 billion of deposits to the consortium of banks, including accrued interest through the payment date on May 9, 2023. In connection with the First Republic acquisition, the Firm and the FDIC entered into two shared-loss agreements with respect to certain loans and lending-related commitments (the "shared-loss assets"): the Commercial Shared-Loss Agreement ("CSLA") and the Single-Family Shared-Loss Agreement ("SFSLA"). The CSLA covers 80% of credit losses, on a pari passu basis, over 5 years with a subsequent 3-year recovery period for certain acquired commercial loans and other real estate exposure. The SFSLA covers 80% of credit losses, on a pari passu basis, for 7 years for certain acquired loans secured by mortgages on real property or shares in cooperative property constituting a primary residence. The indemnification assets, which represent the fair value of the CSLA and SFSLA on the acquisition date, are reflected in the total assets acquired. As part of the consideration paid, JPMorganChase issued a five-year, $50 billion secured note to the FDIC (the "Purchase Money Note"). The Purchase Money Note bears interest at a fixed rate of 3.4% and is secured by certain of the acquired loans. The Purchase Money Note is prepayable upon notice to the holder. The Firm had placed a $5 billion deposit with First Republic Bank on March 16, 2023, as part of $30 billion of deposits provided by a consortium of large U.S. banks. The Firm's $5 billion deposit was effectively settled as part of the acquisition and the associated allowance for credit losses was released upon closing. The Firm subsequently repaid the remaining $25 billion of deposits to the consortium of banks, including accrued interest through the payment date on May 9, 2023. JPMorgan Chase & Co./2024 Form 10-K319 JPMorgan Chase & Co./2024 Form 10-K319 JPMorgan Chase & Co./2024 Form 10-K319 JPMorgan Chase & Co./2024 Form 10-K 319 **Current (2026):** On May 1, 2023, JPMorganChase acquired certain assets and assumed certain liabilities of First Republic Bank (the "First Republic acquisition") from the Federal Deposit Insurance Corporation ("FDIC"), as receiver. The acquisition resulted in a bargain purchase gain, which represents the excess of the estimated fair value of the net assets acquired above the purchase price. The Firm has determined that this acquisition constitutes a business combination under U.S. GAAP. Accordingly, the initial recognition of the assets acquired and liabilities assumed were generally measured at their estimated fair values as of May 1, 2023. The determination of those fair values required management to make certain market-based assumptions about expected future cash flows, discount rates and other valuation inputs at the time of the acquisition. The Firm believes that the fair value estimates of the assets acquired and liabilities assumed provide a reasonable basis for determining the estimated bargain purchase gain. The First Republic acquisition resulted in a preliminary estimated bargain purchase gain of $2.7 billion. The final bargain purchase gain of $2.9 billion reflects adjustments of $103 million and $63 million for the years ended December 31, 2024 and 2023, respectively, made during the one-year measurement period, as permitted by U.S. GAAP, to finalize management's fair value estimates for the assets acquired and liabilities assumed. The measurement period ended on April 30, 2024.On January 17, 2025, the Firm reached an agreement with the FDIC with respect to certain outstanding items. As a result of the agreement, the Firm made a payment of $609 million to the FDIC on January 31, 2025 and reduced its additional payable to the FDIC, which resulted in a gain of $588 million recorded in other income in the first quarter of 2025. In addition, as of June 30, 2025, all outstanding matters between the Firm and the FDIC related to the final settlement of the purchase price for the First Republic acquisition had been resolved.In connection with the First Republic acquisition, the Firm and the FDIC entered into two shared-loss agreements with respect to certain loans and lending-related commitments (the "shared-loss assets"): the Commercial Shared-Loss Agreement ("CSLA") and the Single-Family Shared-Loss Agreement ("SFSLA"). The CSLA covers 80% of credit losses, on a pari passu basis, over 5 years with a subsequent 3-year recovery period for certain acquired commercial loans and other real estate exposure. The SFSLA covers 80% of credit losses, on a pari passu basis, for 7 years for certain acquired loans secured by mortgages on real property or shares in cooperative property constituting a primary residence. The indemnification assets, which represent the fair value of the CSLA and SFSLA on the acquisition date, are reflected in the total assets acquired.As part of the consideration paid, JPMorganChase issued a five-year, $50 billion secured note to the FDIC (the "Purchase Money Note"). The Purchase Money Note bears interest at a fixed rate of 3.4% and is secured by certain of the acquired loans. The Purchase Money Note is prepayable upon notice to the holder.The Firm had placed a $5 billion deposit with First Republic Bank on March 16, 2023, as part of $30 billion of deposits provided by a consortium of large U.S. banks. The Firm's $5 billion deposit was effectively settled as part of the acquisition and the associated allowance for credit losses was released upon closing. The Firm subsequently repaid the remaining $25 billion of deposits to the consortium of banks, including accrued interest through the payment date on May 9, 2023. On May 1, 2023, JPMorganChase acquired certain assets and assumed certain liabilities of First Republic Bank (the "First Republic acquisition") from the Federal Deposit Insurance Corporation ("FDIC"), as receiver. The acquisition resulted in a bargain purchase gain, which represents the excess of the estimated fair value of the net assets acquired above the purchase price. The Firm has determined that this acquisition constitutes a business combination under U.S. GAAP. Accordingly, the initial recognition of the assets acquired and liabilities assumed were generally measured at their estimated fair values as of May 1, 2023. The determination of those fair values required management to make certain market-based assumptions about expected future cash flows, discount rates and other valuation inputs at the time of the acquisition. The Firm believes that the fair value estimates of the assets acquired and liabilities assumed provide a reasonable basis for determining the estimated bargain purchase gain. The First Republic acquisition resulted in a preliminary estimated bargain purchase gain of $2.7 billion. The final bargain purchase gain of $2.9 billion reflects adjustments of $103 million and $63 million for the years ended December 31, 2024 and 2023, respectively, made during the one-year measurement period, as permitted by U.S. GAAP, to finalize management's fair value estimates for the assets acquired and liabilities assumed. The measurement period ended on April 30, 2024.On January 17, 2025, the Firm reached an agreement with the FDIC with respect to certain outstanding items. As a result of the agreement, the Firm made a payment of $609 million to the FDIC on January 31, 2025 and reduced its additional payable to the FDIC, which resulted in a gain of $588 million recorded in other income in the first quarter of 2025. In addition, as of June 30, 2025, all outstanding matters between the Firm and the FDIC related to the final settlement of the purchase price for the First Republic acquisition had been resolved. On May 1, 2023, JPMorganChase acquired certain assets and assumed certain liabilities of First Republic Bank (the "First Republic acquisition") from the Federal Deposit Insurance Corporation ("FDIC"), as receiver. The acquisition resulted in a bargain purchase gain, which represents the excess of the estimated fair value of the net assets acquired above the purchase price. The Firm has determined that this acquisition constitutes a business combination under U.S. GAAP. Accordingly, the initial recognition of the assets acquired and liabilities assumed were generally measured at their estimated fair values as of May 1, 2023. The determination of those fair values required management to make certain market-based assumptions about expected future cash flows, discount rates and other valuation inputs at the time of the acquisition. The Firm believes that the fair value estimates of the assets acquired and liabilities assumed provide a reasonable basis for determining the estimated bargain purchase gain. The First Republic acquisition resulted in a preliminary estimated bargain purchase gain of $2.7 billion. The final bargain purchase gain of $2.9 billion reflects adjustments of $103 million and $63 million for the years ended December 31, 2024 and 2023, respectively, made during the one-year measurement period, as permitted by U.S. GAAP, to finalize management's fair value estimates for the assets acquired and liabilities assumed. The measurement period ended on April 30, 2024. On January 17, 2025, the Firm reached an agreement with the FDIC with respect to certain outstanding items. As a result of the agreement, the Firm made a payment of $609 million to the FDIC on January 31, 2025 and reduced its additional payable to the FDIC, which resulted in a gain of $588 million recorded in other income in the first quarter of 2025. In addition, as of June 30, 2025, all outstanding matters between the Firm and the FDIC related to the final settlement of the purchase price for the First Republic acquisition had been resolved. In connection with the First Republic acquisition, the Firm and the FDIC entered into two shared-loss agreements with respect to certain loans and lending-related commitments (the "shared-loss assets"): the Commercial Shared-Loss Agreement ("CSLA") and the Single-Family Shared-Loss Agreement ("SFSLA"). The CSLA covers 80% of credit losses, on a pari passu basis, over 5 years with a subsequent 3-year recovery period for certain acquired commercial loans and other real estate exposure. The SFSLA covers 80% of credit losses, on a pari passu basis, for 7 years for certain acquired loans secured by mortgages on real property or shares in cooperative property constituting a primary residence. The indemnification assets, which represent the fair value of the CSLA and SFSLA on the acquisition date, are reflected in the total assets acquired.As part of the consideration paid, JPMorganChase issued a five-year, $50 billion secured note to the FDIC (the "Purchase Money Note"). The Purchase Money Note bears interest at a fixed rate of 3.4% and is secured by certain of the acquired loans. The Purchase Money Note is prepayable upon notice to the holder.The Firm had placed a $5 billion deposit with First Republic Bank on March 16, 2023, as part of $30 billion of deposits provided by a consortium of large U.S. banks. The Firm's $5 billion deposit was effectively settled as part of the acquisition and the associated allowance for credit losses was released upon closing. The Firm subsequently repaid the remaining $25 billion of deposits to the consortium of banks, including accrued interest through the payment date on May 9, 2023. In connection with the First Republic acquisition, the Firm and the FDIC entered into two shared-loss agreements with respect to certain loans and lending-related commitments (the "shared-loss assets"): the Commercial Shared-Loss Agreement ("CSLA") and the Single-Family Shared-Loss Agreement ("SFSLA"). The CSLA covers 80% of credit losses, on a pari passu basis, over 5 years with a subsequent 3-year recovery period for certain acquired commercial loans and other real estate exposure. The SFSLA covers 80% of credit losses, on a pari passu basis, for 7 years for certain acquired loans secured by mortgages on real property or shares in cooperative property constituting a primary residence. The indemnification assets, which represent the fair value of the CSLA and SFSLA on the acquisition date, are reflected in the total assets acquired. As part of the consideration paid, JPMorganChase issued a five-year, $50 billion secured note to the FDIC (the "Purchase Money Note"). The Purchase Money Note bears interest at a fixed rate of 3.4% and is secured by certain of the acquired loans. The Purchase Money Note is prepayable upon notice to the holder. The Firm had placed a $5 billion deposit with First Republic Bank on March 16, 2023, as part of $30 billion of deposits provided by a consortium of large U.S. banks. The Firm's $5 billion deposit was effectively settled as part of the acquisition and the associated allowance for credit losses was released upon closing. The Firm subsequently repaid the remaining $25 billion of deposits to the consortium of banks, including accrued interest through the payment date on May 9, 2023. 312JPMorgan Chase & Co./2025 Form 10-K 312JPMorgan Chase & Co./2025 Form 10-K 312JPMorgan Chase & Co./2025 Form 10-K 312 JPMorgan Chase & Co./2025 Form 10-K The computation of the purchase price, the fair values of the assets acquired and liabilities assumed as part of the First Republic acquisition and the related bargain purchase gain are presented below, which reflects adjustments made during the measurement period to the acquisition-date fair value of the net assets acquired. The measurement period ended on April 30, 2024. Fair value purchaseprice allocation as ofMay 1, 2023(in millions)Purchase price considerationAmounts paid/due to the FDIC, net of cash acquired(a)$13,555 Purchase Money Note (at fair value)(b)48,848 Settlement of First Republic deposit and other related party transactions(c)5,447 Contingent consideration - Shared-loss agreements15 Purchase price consideration$67,865 Assets Securities$30,285 Loans153,242 Core deposit and customer relationship intangibles1,455 Indemnification assets - Shared-loss agreements675 Accounts receivable and other assets(d)6,740 Total assets acquired$192,397 LiabilitiesDeposits$87,572 FHLB advances27,919 Lending-related commitments2,614 Accounts payable and other liabilities(d)2,792 Deferred tax liabilities757 Total liabilities assumed$121,654 Fair value of net assets acquired$70,743 Gain on acquisition, after income taxes$2,878 Amounts paid/due to the FDIC, net of cash acquired(a) Purchase Money Note (at fair value)(b) Settlement of First Republic deposit and other related party transactions(c) Accounts receivable and other assets(d) Accounts payable and other liabilities(d) (a)Net of cash acquired of $680 million, and including disputed amounts with the FDIC as of April 30, 2024. (b)As part of the consideration paid, JPMorganChase issued a five-year, $50 billion secured note to the FDIC (the "Purchase Money Note"). (c)Includes $447 million of securities financing transactions with First Republic Bank that were effectively settled on the acquisition date. (d)Other assets include $1.2 billion in tax-oriented investments and $683 million of lease right-of-use assets. Other liabilities include the related tax-oriented investment liabilities of $669 million and lease liabilities of $748 million. The following describes the accounting policies and fair value methodologies generally used by the Firm for the following assets acquired and liabilities assumed: core deposit and customer relationship intangibles, shared-loss agreements and the related indemnification assets, Purchase Money Note, and FHLB advances. For further discussion of the Firm's accounting policies and valuation methodologies, refer to Notes 2 and 3 for fair value measurement, Note 10 for investment securities, Note 12 for loans, Note 17 for deposits, and Note 28 for lending-related commitments. Core deposit and customer relationship intangiblesCore deposit and certain wealth management customer relationship intangibles were acquired as part of the First Republic acquisition. The core deposit intangible of $1.3 billion was valued by discounting estimated after-tax cost savings over the remaining useful life of the deposits using the favorable source of funds method. The after-tax cost savings were estimated based on the difference between the cost of maintaining the core deposit base relative to the cost of next best alternative funding sources available to market participants. The customer relationship intangibles of $180 million were valued by discounting estimated after-tax earnings over their remaining useful lives using the multi-period excess earnings method. Both intangible asset valuations utilized assumptions that the Firm believes a market participant would use to estimate fair values, such as growth and attrition rates, projected fee income as well as related costs to service the relationships, and discount rates. The core deposit and customer relationship intangibles are amortized over a projected period of future cash flows of approximately 7 years. Refer to Note 15 for further discussion on other intangible assets. Core deposit and customer relationship intangiblesCore deposit and certain wealth management customer relationship intangibles were acquired as part of the First Republic acquisition. The core deposit intangible of $1.3 billion was valued by discounting estimated after-tax cost savings over the remaining useful life of the deposits using the favorable source of funds method. The after-tax cost savings were estimated based on the difference between the cost of maintaining the core deposit base relative to the cost of next best alternative funding sources available to market participants. The customer relationship intangibles of $180 million were valued by discounting estimated after-tax earnings over their remaining useful lives using the multi-period excess earnings --- ## Modified Risk: Changes in and ranges of unobservable inputs **Key changes:** - Updated: "The following discussion provides a description of the impact on a fair value measurement of a change in each unobservable input in isolation, and the interrelationship between unobservable inputs, where relevant and significant." - Updated: "Changes in level 3 recurring fair value measurements The following tables include a rollforward of the Consolidated balance sheets amounts (including changes in fair value) for financial instruments classified by the Firm within level 3 of the fair value hierarchy for the years ended December 31, 2025, 2024 and 2023." - Updated: "Changes in level 3 recurring fair value measurements The following tables include a rollforward of the Consolidated balance sheets amounts (including changes in fair value) for financial instruments classified by the Firm within level 3 of the fair value hierarchy for the years ended December 31, 2025, 2024 and 2023." **Prior (2025):** Correlation - Correlation is a measure of the relationship between the movements of two variables. Correlation is a pricing input for a derivative product where the payoff is driven by one or more underlying risks. Correlation inputs are related to the type of derivative (e.g., interest rate, credit, equity, foreign exchange and commodity) due to the nature of the underlying risks. When parameters are positively correlated, an increase in one parameter will result in an increase in the other parameter. When parameters are negatively correlated, an increase in one parameter will result in a decrease in the other parameter. An increase in correlation can result in an increase or a decrease in a fair value measurement. Given a short correlation position, an increase in correlation, in isolation, would generally result in a decrease in a fair value measurement.The level of correlation used in the valuation of derivatives with multiple underlying risks depends on a number of factors including the nature of those risks. For example, the correlation between two credit risk exposures would be different than that between two interest rate risk exposures. Similarly, the tenor of the transaction may also impact the correlation input, as the relationship between the underlying risks may be different over different time periods. Furthermore, correlation levels are dependent on market conditions and could have a relatively wide range of levels within or across asset classes over time, particularly in volatile market conditions. Volatility - Volatility is a measure of the variability in possible returns for an instrument, parameter or market index given how much the particular instrument, parameter or index changes in value over time. Volatility is a pricing input for options, including equity options, commodity options, and interest rate options. Given a long position in an option, an increase in volatility, in isolation, would generally result in an increase in a fair value measurement. The level of volatility used in the valuation of a particular option-based derivative depends on a number of factors, including the nature of the risk underlying the option (e.g., the volatility of a particular equity security may be significantly different from that of a particular commodity index), the tenor of the derivative as well as the strike price of the option. Bermudan switch value - The switch value is the difference between the overall value of a Bermudan swaption, which can be exercised at multiple points in time, and its most expensive European swaption and reflects the additional value that the multiple exercise dates provide the holder. Switch values are dependent on market conditions and can vary greatly depending on a number of factors, such as the tenor of the underlying swap as well as the strike price of the option. An increase in switch value, in isolation, would generally result in an increase in a fair value measurement.Interest rate curve - The interest rate curve represents the relationship of interest rates over differing tenors. The interest rate curve is used to set interest rate and foreign exchange derivative cash flows and is also a pricing input used in the discounting of any derivative cash flow. Forward price - The forward price is the price at which the buyer agrees to purchase the asset underlying a forward contract on the predetermined future delivery date, and is such that the value of the contract is zero at inception. The forward price is used as an input in the valuation of certain derivatives and depends on a number of factors including interest rates, the current price of the underlying asset, and the expected income to be received and costs to be incurred by the seller as a result of holding that asset until the delivery date. An increase in the forward can result in an increase or a decrease in a fair value measurement. Changes in level 3 recurring fair value measurements The following tables include a rollforward of the Consolidated balance sheets amounts (including changes in fair value) for financial instruments classified by the Firm within level 3 of the fair value hierarchy for the years ended December 31, 2024, 2023 and 2022. When a determination is made to classify a financial instrument within level 3, the determination is based on the significance of the unobservable inputs to the overall fair value measurement. However, level 3 financial instruments typically include, in addition to the unobservable or level 3 components, observable components (that is, components that are actively quoted and can be validated to external sources); accordingly, the gains and losses in the table below include changes in fair value due in part to observable factors that are part of the valuation methodology. The Firm risk-manages the observable components of level 3 financial instruments using securities and derivative positions that are classified within level 1 or 2 of the fair value hierarchy; as these level 1 and level 2 risk management instruments are not included below, the gains or losses in the following tables do not reflect the effect of the Firm's risk management activities related to such level 3 instruments. Correlation - Correlation is a measure of the relationship between the movements of two variables. Correlation is a pricing input for a derivative product where the payoff is driven by one or more underlying risks. Correlation inputs are related to the type of derivative (e.g., interest rate, credit, equity, foreign exchange and commodity) due to the nature of the underlying risks. When parameters are positively correlated, an increase in one parameter will result in an increase in the other parameter. When parameters are negatively correlated, an increase in one parameter will result in a decrease in the other parameter. An increase in correlation can result in an increase or a decrease in a fair value measurement. Given a short correlation position, an increase in correlation, in isolation, would generally result in a decrease in a fair value measurement.The level of correlation used in the valuation of derivatives with multiple underlying risks depends on a number of factors including the nature of those risks. For example, the correlation between two credit risk exposures would be different than that between two interest rate risk exposures. Similarly, the tenor of the transaction may also impact the correlation input, as the relationship between the underlying risks may be different over different time periods. Furthermore, correlation levels are dependent on market conditions and could have a relatively wide range of levels within or across asset classes over time, particularly in volatile market conditions. Volatility - Volatility is a measure of the variability in possible returns for an instrument, parameter or market index given how much the particular instrument, parameter or index changes in value over time. Volatility is a pricing input for options, including equity options, commodity options, and interest rate options. Given a long position in an option, an increase in volatility, in isolation, would generally result in an increase in a fair value measurement. The level of volatility used in the valuation of a particular option-based derivative depends on a number of factors, including the nature of the risk underlying the option (e.g., the volatility of a particular equity security may be significantly different from that of a particular commodity index), the tenor of the derivative as well as the strike price of the option. Bermudan switch value - The switch value is the difference between the overall value of a Bermudan swaption, which can be exercised at multiple points in time, and its most expensive European swaption and reflects the additional value that the multiple exercise dates provide the holder. Switch values are dependent on market conditions and can vary greatly depending on a number of factors, such as the tenor of the underlying swap as well as the strike price of the option. An increase in switch value, in isolation, would generally result in an increase in a fair value measurement. Correlation - Correlation is a measure of the relationship between the movements of two variables. Correlation is a pricing input for a derivative product where the payoff is driven by one or more underlying risks. Correlation inputs are related to the type of derivative (e.g., interest rate, credit, equity, foreign exchange and commodity) due to the nature of the underlying risks. When parameters are positively correlated, an increase in one parameter will result in an increase in the other parameter. When parameters are negatively correlated, an increase in one parameter will result in a decrease in the other parameter. An increase in correlation can result in an increase or a decrease in a fair value measurement. Given a short correlation position, an increase in correlation, in isolation, would generally result in a decrease in a fair value measurement. The level of correlation used in the valuation of derivatives with multiple underlying risks depends on a number of factors including the nature of those risks. For example, the correlation between two credit risk exposures would be different than that between two interest rate risk exposures. Similarly, the tenor of the transaction may also impact the correlation input, as the relationship between the underlying risks may be different over different time periods. Furthermore, correlation levels are dependent on market conditions and could have a relatively wide range of levels within or across asset classes over time, particularly in volatile market conditions. Volatility - Volatility is a measure of the variability in possible returns for an instrument, parameter or market index given how much the particular instrument, parameter or index changes in value over time. Volatility is a pricing input for options, including equity options, commodity options, and interest rate options. Given a long position in an option, an increase in volatility, in isolation, would generally result in an increase in a fair value measurement. The level of volatility used in the valuation of a particular option-based derivative depends on a number of factors, including the nature of the risk underlying the option (e.g., the volatility of a particular equity security may be significantly different from that of a particular commodity index), the tenor of the derivative as well as the strike price of the option. Bermudan switch value - The switch value is the difference between the overall value of a Bermudan swaption, which can be exercised at multiple points in time, and its most expensive European swaption and reflects the additional value that the multiple exercise dates provide the holder. Switch values are dependent on market conditions and can vary greatly depending on a number of factors, such as the tenor of the underlying swap as well as the strike price of the option. An increase in switch value, in isolation, would generally result in an increase in a fair value measurement. Interest rate curve - The interest rate curve represents the relationship of interest rates over differing tenors. The interest rate curve is used to set interest rate and foreign exchange derivative cash flows and is also a pricing input used in the discounting of any derivative cash flow. Forward price - The forward price is the price at which the buyer agrees to purchase the asset underlying a forward contract on the predetermined future delivery date, and is such that the value of the contract is zero at inception. The forward price is used as an input in the valuation of certain derivatives and depends on a number of factors including interest rates, the current price of the underlying asset, and the expected income to be received and costs to be incurred by the seller as a result of holding that asset until the delivery date. An increase in the forward can result in an increase or a decrease in a fair value measurement. Changes in level 3 recurring fair value measurements The following tables include a rollforward of the Consolidated balance sheets amounts (including changes in fair value) for financial instruments classified by the Firm within level 3 of the fair value hierarchy for the years ended December 31, 2024, 2023 and 2022. When a determination is made to classify a financial instrument within level 3, the determination is based on the significance of the unobservable inputs to the overall fair value measurement. However, level 3 financial instruments typically include, in addition to the unobservable or level 3 components, observable components (that is, components that are actively quoted and can be validated to external sources); accordingly, the gains and losses in the table below include changes in fair value due in part to observable factors that are part of the valuation methodology. The Firm risk-manages the observable components of level 3 financial instruments using securities and derivative positions that are classified within level 1 or 2 of the fair value hierarchy; as these level 1 and level 2 risk management instruments are not included below, the gains or losses in the following tables do not reflect the effect of the Firm's risk management activities related to such level 3 instruments. Interest rate curve - The interest rate curve represents the relationship of interest rates over differing tenors. The interest rate curve is used to set interest rate and foreign exchange derivative cash flows and is also a pricing input used in the discounting of any derivative cash flow. Forward price - The forward price is the price at which the buyer agrees to purchase the asset underlying a forward contract on the predetermined future delivery date, and is such that the value of the contract is zero at inception. The forward price is used as an input in the valuation of certain derivatives and depends on a number of factors including interest rates, the current price of the underlying asset, and the expected income to be received and costs to be incurred by the seller as a result of holding that asset until the delivery date. An increase in the forward can result in an increase or a decrease in a fair value measurement. **Current (2026):** The following discussion provides a description of the impact on a fair value measurement of a change in each unobservable input in isolation, and the interrelationship between unobservable inputs, where relevant and significant. The impact of changes in inputs may not be independent, as a change in one unobservable input may give rise to a change in another unobservable input. Where relationships do exist between two unobservable inputs, those relationships are discussed below. Relationships may also exist between observable and unobservable inputs (for example, as observable interest rates rise, unobservable prepayment rates decline); such relationships have not been included in the discussion below. In addition, for each of the individual relationships described below, the inverse relationship would also generally apply. The following discussion also provides a description of attributes of the underlying instruments and external market factors that affect the range of inputs used in the valuation of the Firm's positions. Yield - The yield of an asset is the interest rate used to discount future cash flows in a discounted cash flow calculation. An increase in the yield, in isolation, would result in a decrease in a fair value measurement. Credit spread - The credit spread is the amount of additional annualized return over the market interest rate that a market participant would demand for taking exposure to the credit risk of an instrument. The credit spread for an instrument forms part of the discount rate used in a discounted cash flow calculation. Generally, an increase in the credit spread would result in a decrease in a fair value measurement. The yield and the credit spread of a particular mortgage-backed security primarily reflect the risk inherent in the instrument. The yield is also impacted by the absolute level of the coupon paid by the instrument (which may not correspond directly to the level of inherent risk). Therefore, the range of yield and credit spreads reflects the range of risk inherent in various instruments owned by the Firm. The risk inherent in mortgage-backed securities is driven by the subordination of the security being valued and the characteristics of the underlying mortgages within the collateralized pool, including borrower FICO scores, LTV ratios for residential mortgages and the nature of the property and/or any tenants for commercial mortgages. For corporate debt securities, obligations of U.S. states and municipalities and other similar instruments, credit spreads reflect the credit quality of the obligor and the tenor of the obligation. Prepayment speed - The prepayment speed is a measure of the voluntary unscheduled principal repayments of a prepayable obligation in a collateralized pool. Prepayment speeds generally decline as borrower delinquencies rise. An increase in prepayment speeds, in isolation, would result in a decrease in a fair value measurement of assets valued at a premium to par and an increase in a fair value measurement of assets valued at a discount to par. Prepayment speeds may vary from collateral pool to collateral pool, and are driven by the type and location of the underlying borrower, and the remaining tenor of the obligation as well as the level and type (e.g., fixed or floating) of interest rate being paid by the borrower. Typically collateral pools with higher borrower credit quality have a higher prepayment rate than those with lower borrower credit quality, all other factors being equal. Conditional default rate - The conditional default rate is a measure of the reduction in the outstanding collateral balance underlying a collateralized obligation as a result of defaults. While there is typically no direct relationship between conditional default rates and prepayment speeds, collateralized obligations for which the underlying collateral has high prepayment speeds will tend to have lower conditional default rates. An increase in conditional default rates would generally be accompanied by an increase in loss severity and an increase in credit spreads. An increase in the conditional default rate, in isolation, would result in a decrease in a fair value measurement. Conditional default rates reflect the quality of the collateral underlying a securitization and the structure of the securitization itself. Based on the types of securities owned in the Firm's market-making portfolios, conditional default rates are most typically at the lower end of the range presented. Loss severity - The loss severity (the inverse concept is the recovery rate) is the expected amount of future realized losses resulting from the ultimate liquidation of a particular loan, expressed as the net amount of loss relative to the outstanding loan balance. An increase in loss severity is generally accompanied by an increase in conditional default rates. An increase in the loss severity, in isolation, would result in a decrease in a fair value measurement. The loss severity applied in valuing a mortgage-backed security depends on factors relating to the underlying mortgages, including the LTV ratio, the nature of the lender's lien on the property and other instrument-specific factors. Prepayment speed - The prepayment speed is a measure of the voluntary unscheduled principal repayments of a prepayable obligation in a collateralized pool. Prepayment speeds generally decline as borrower delinquencies rise. An increase in prepayment speeds, in isolation, would result in a decrease in a fair value measurement of assets valued at a premium to par and an increase in a fair value measurement of assets valued at a discount to par. Prepayment speeds may vary from collateral pool to collateral pool, and are driven by the type and location of the underlying borrower, and the remaining tenor of the obligation as well as the level and type (e.g., fixed or floating) of interest rate being paid by the borrower. Typically collateral pools with higher borrower credit quality have a higher prepayment rate than those with lower borrower credit quality, all other factors being equal. Conditional default rate - The conditional default rate is a measure of the reduction in the outstanding collateral balance underlying a collateralized obligation as a result of defaults. While there is typically no direct relationship between conditional default rates and prepayment speeds, collateralized obligations for which the underlying collateral has high prepayment speeds will tend to have lower conditional default rates. An increase in conditional default rates would generally be accompanied by an increase in loss severity and an increase in credit spreads. An increase in the conditional default rate, in isolation, would result in a decrease in a fair value measurement. Conditional default rates reflect the quality of the collateral underlying a securitization and the structure of the securitization itself. Based on the types of securities owned in the Firm's market-making portfolios, conditional default rates are most typically at the lower end of the range presented. Loss severity - The loss severity (the inverse concept is the recovery rate) is the expected amount of future realized losses resulting from the ultimate liquidation of a particular loan, expressed as the net amount of loss relative to the outstanding loan balance. An increase in loss severity is generally accompanied by an increase in conditional default rates. An increase in the loss severity, in isolation, would result in a decrease in a fair value measurement. The loss severity applied in valuing a mortgage-backed security depends on factors relating to the underlying mortgages, including the LTV ratio, the nature of the lender's lien on the property and other instrument-specific factors. 184JPMorgan Chase & Co./2025 Form 10-K 184JPMorgan Chase & Co./2025 Form 10-K 184JPMorgan Chase & Co./2025 Form 10-K 184 JPMorgan Chase & Co./2025 Form 10-K Correlation - Correlation is a measure of the relationship between the movements of two variables. Correlation is a pricing input for a derivative product where the payoff is driven by one or more underlying risks. Correlation inputs are related to the type of derivative (e.g., interest rate, credit, equity, foreign exchange and commodity) due to the nature of the underlying risks. When parameters are positively correlated, an increase in one parameter will result in an increase in the other parameter. When parameters are negatively correlated, an increase in one parameter will result in a decrease in the other parameter. An increase in correlation can result in an increase or a decrease in a fair value measurement. Given a short correlation position, an increase in correlation, in isolation, would generally result in a decrease in a fair value measurement.The level of correlation used in the valuation of derivatives with multiple underlying risks depends on a number of factors including the nature of those risks. For example, the correlation between two credit risk exposures would be different than that between two interest rate risk exposures. Similarly, the tenor of the transaction may also impact the correlation input, as the relationship between the underlying risks may be different over different time periods. Furthermore, correlation levels are dependent on market conditions and could have a relatively wide range of levels within or across asset classes over time, particularly in volatile market conditions. Volatility - Volatility is a measure of the variability in possible returns for an instrument, parameter or market index given how much the particular instrument, parameter or index changes in value over time. Volatility is a pricing input for options, including equity options, commodity options, and interest rate options. Given a long position in an option, an increase in volatility, in isolation, would generally result in an increase in a fair value measurement. The level of volatility used in the valuation of a particular option-based derivative depends on a number of factors, including the nature of the risk underlying the option (e.g., the volatility of a particular equity security may be significantly different from that of a particular commodity index), the tenor of the derivative as well as the strike price of the option. Bermudan switch value - The switch value is the difference between the overall value of a Bermudan swaption, which can be exercised at multiple points in time, and its most expensive European swaption and reflects the additional value that the multiple exercise dates provide the holder. Switch values are dependent on market conditions and can vary greatly depending on a number of factors, such as the tenor of the underlying swap as well as the strike price of the option. An increase in switch value, in isolation, would generally result in an increase in a fair value measurement.Interest rate curve - The interest rate curve represents the relationship of interest rates over differing tenors. The interest rate curve is used to set interest rate and foreign exchange derivative cash flows and is also a pricing input used in the discounting of any derivative cash flow. Forward price - The forward price is the price at which the buyer agrees to purchase the asset underlying a forward contract on the predetermined future delivery date, and is such that the value of the contract is zero at inception. The forward price is used as an input in the valuation of certain derivatives and depends on a number of factors including interest rates, the current price of the underlying asset, and the expected income to be received and costs to be incurred by the seller as a result of holding that asset until the delivery date. An increase in the forward can result in an increase or a decrease in a fair value measurement. Changes in level 3 recurring fair value measurements The following tables include a rollforward of the Consolidated balance sheets amounts (including changes in fair value) for financial instruments classified by the Firm within level 3 of the fair value hierarchy for the years ended December 31, 2025, 2024 and 2023. When a determination is made to classify a financial instrument within level 3, the determination is based on the significance of the unobservable inputs to the overall fair value measurement. However, level 3 financial instruments typically include, in addition to the unobservable or level 3 components, observable components (that is, components that are actively quoted and can be validated to external sources); accordingly, the gains and losses in the table below include changes in fair value due in part to observable factors that are part of the valuation methodology. The Firm risk-manages the observable components of level 3 financial instruments using securities and derivative positions that are classified within level 1 or 2 of the fair value hierarchy; as these level 1 and level 2 risk management instruments are not included below, the gains or losses in the following tables do not reflect the effect of the Firm's risk management activities related to such level 3 instruments. Correlation - Correlation is a measure of the relationship between the movements of two variables. Correlation is a pricing input for a derivative product where the payoff is driven by one or more underlying risks. Correlation inputs are related to the type of derivative (e.g., interest rate, credit, equity, foreign exchange and commodity) due to the nature of the underlying risks. When parameters are positively correlated, an increase in one parameter will result in an increase in the other parameter. When parameters are negatively correlated, an increase in one parameter will result in a decrease in the other parameter. An increase in correlation can result in an increase or a decrease in a fair value measurement. Given a short correlation position, an increase in correlation, in isolation, would generally result in a decrease in a fair value measurement.The level of correlation used in the valuation of derivatives with multiple underlying risks depends on a number of factors including the nature of those risks. For example, the correlation between two credit risk exposures would be different than that between two interest rate risk exposures. Similarly, the tenor of the transaction may also impact the correlation input, as the relationship between the underlying risks may be different over different time periods. Furthermore, correlation levels are dependent on market conditions and could have a relatively wide range of levels within or across asset classes over time, particularly in volatile market conditions. Volatility - Volatility is a measure of the variability in possible returns for an instrument, parameter or market index given how much the particular instrument, parameter or index changes in value over time. Volatility is a pricing input for options, including equity options, commodity options, and interest rate options. Given a long position in an option, an increase in volatility, in isolation, would generally result in an increase in a fair value measurement. The level of volatility used in the valuation of a particular option-based derivative depends on a number of factors, including the nature of the risk underlying the option (e.g., the volatility of a particular equity security may be significantly different from that of a particular commodity index), the tenor of the derivative as well as the strike price of the option. Bermudan switch value - The switch value is the difference between the overall value of a Bermudan swaption, which can be exercised at multiple points in time, and its most expensive European swaption and reflects the additional value that the multiple exercise dates provide the holder. Switch values are dependent on market conditions and can vary greatly depending on a number of factors, such as the tenor of the underlying swap as well as the strike price of the option. An increase in switch value, in isolation, would generally result in an increase in a fair value measurement. Correlation - Correlation is a measure of the relationship between the movements of two variables. Correlation is a pricing input for a derivative product where the payoff is driven by one or more underlying risks. Correlation inputs are related to the type of derivative (e.g., interest rate, credit, equity, foreign exchange and commodity) due to the nature of the underlying risks. When parameters are positively correlated, an increase in one parameter will result in an increase in the other parameter. When parameters are negatively correlated, an increase in one parameter will result in a decrease in the other parameter. An increase in correlation can result in an increase or a decrease in a fair value measurement. Given a short correlation position, an increase in correlation, in isolation, would generally result in a decrease in a fair value measurement. The level of correlation used in the valuation of derivatives with multiple underlying risks depends on a number of factors including the nature of those risks. For example, the correlation between two credit risk exposures would be different than that between two interest rate risk exposures. Similarly, the tenor of the transaction may also impact the correlation input, as the relationship between the underlying risks may be different over different time periods. Furthermore, correlation levels are dependent on market conditions and could have a relatively wide range of levels within or across asset classes over time, particularly in volatile market conditions. Volatility - Volatility is a measure of the variability in possible returns for an instrument, parameter or market index given how much the particular instrument, parameter or index changes in value over time. Volatility is a pricing input for options, including equity options, commodity options, and interest rate options. Given a long position in an option, an increase in volatility, in isolation, would generally result in an increase in a fair value measurement. The level of volatility used in the valuation of a particular option-based derivative depends on a number of factors, including the nature of the risk underlying the option (e.g., the volatility of a particular equity security may be significantly different from that of a particular commodity index), the tenor of the derivative as well as the strike price of the option. Bermudan switch value - The switch value is the difference between the overall value of a Bermudan swaption, which can be exercised at multiple points in time, and its most expensive European swaption and reflects the additional value that the multiple exercise dates provide the holder. Switch values are dependent on market conditions and can vary greatly depending on a number of factors, such as the tenor of the underlying swap as well as the strike price of the option. An increase in switch value, in isolation, would generally result in an increase in a fair value measurement. Interest rate curve - The interest rate curve represents the relationship of interest rates over differing tenors. The interest rate curve is used to set interest rate and foreign exchange derivative cash flows and is also a pricing input used in the discounting of any derivative cash flow. Forward price - The forward price is the price at which the buyer agrees to purchase the asset underlying a forward contract on the predetermined future delivery date, and is such that the value of the contract is zero at inception. The forward price is used as an input in the valuation of certain derivatives and depends on a number of factors including interest rates, the current price of the underlying asset, and the expected income to be received and costs to be incurred by the seller as a result of holding that asset until the delivery date. An increase in the forward can result in an increase or a decrease in a fair value measurement. Changes in level 3 recurring fair value measurements The following tables include a rollforward of the Consolidated balance sheets amounts (including changes in fair value) for financial instruments classified by the Firm within level 3 of the fair value hierarchy for the years ended December 31, 2025, 2024 and 2023. When a determination is made to classify a financial instrument within level 3, the determination is based on the significance of the unobservable inputs to the overall fair value measurement. However, level 3 financial instruments typically include, in addition to the unobservable or level 3 components, observable components (that is, components that are actively quoted and can be validated to external sources); accordingly, the gains and losses in the table below include changes in fair value due in part to observable factors that are part of the valuation methodology. The Firm risk-manages the observable components of level 3 financial instruments using securities and derivative positions that are classified within level 1 or 2 of the fair value hierarchy; as these level 1 and level 2 risk management instruments are not included below, the gains or losses in the following tables do not reflect the effect of the Firm's risk management activities related to such level 3 instruments. Interest rate curve - The interest rate curve represents the relationship of interest rates over differing tenors. The interest rate curve is used to set interest rate and foreign exchange derivative cash flows and is also a pricing input used in the discounting of any derivative cash flow. Forward price - The forward price is the price at which the buyer agrees to purchase the asset underlying a forward contract on the predetermined future delivery date, and is such that the value of the contract is zero at inception. The forward price is used as an input in the valuation of certain derivatives and depends on a number of factors including interest rates, the current price of the underlying asset, and the expected income to be received and costs to be incurred by the seller as a result of holding that asset until the delivery date. An increase in the forward can result in an increase or a decrease in a fair value measurement. --- ## Modified Risk: Management's discussion and analysis **Key changes:** - Removed: "Breaches in risk appetite and parameters, issues that may have a material adverse impact on the Firm, including capital and liquidity issues, and other significant risk-related matters are escalated to the Board Risk Committee, as appropriate.The Audit Committee assists the Board in its oversight of management's responsibilities to ensure that there is an effective system of controls reasonably designed to safeguard the Firm's assets and income, ensure the integrity of the Firm's financial statements, and maintain compliance with the Firm's ethical standards, policies, plans and procedures, and with laws and regulations." - Updated: "The Control Committees for the LOBs and certain of the Corporate functions oversee the risk and control environment of their respective business or function, inclusive of Operational Risk, Compliance and Conduct Risks." - Removed: "Breaches in risk appetite and parameters, issues that may have a material adverse impact on the Firm, including capital and liquidity issues, and other significant risk-related matters are escalated to the Board Risk Committee, as appropriate." - Removed: "The Audit Committee assists the Board in its oversight of management's responsibilities to ensure that there is an effective system of controls reasonably designed to safeguard the Firm's assets and income, ensure the integrity of the Firm's financial statements, and maintain compliance with the Firm's ethical standards, policies, plans and procedures, and with laws and regulations." - Added: "The Control Committees for the LOBs and certain of the Corporate functions oversee the risk and control environment of their respective business or function, inclusive of Operational Risk, Compliance and Conduct Risks." **Prior (2025):** management. Breaches in risk appetite and parameters, issues that may have a material adverse impact on the Firm, including capital and liquidity issues, and other significant risk-related matters are escalated to the Board Risk Committee, as appropriate.The Audit Committee assists the Board in its oversight of management's responsibilities to ensure that there is an effective system of controls reasonably designed to safeguard the Firm's assets and income, ensure the integrity of the Firm's financial statements, and maintain compliance with the Firm's ethical standards, policies, plans and procedures, and with laws and regulations. It also assists the Board in its oversight of the qualifications, independence and performance of the Firm's independent registered public accounting firm, and of the performance of the Firm's Internal Audit function.The Compensation & Management Development Committee ("CMDC") assists the Board in its oversight of the Firm's compensation principles and practices. The CMDC reviews and approves the Firm's compensation and qualified benefits programs. The Committee reviews the performance of Operating Committee members against their goals, and approves their compensation awards. In addition, the CEO's compensation award is subject to ratification by the independent directors of the Board. The CMDC also reviews the development of and succession for key executives. As part of the Board's role of reinforcing, demonstrating and communicating the "tone at the top," the CMDC oversees the Firm's culture, including reviewing updates from management regarding significant conduct issues and any related actions with respect to employees, including compensation actions.The Public Responsibility Committee oversees and reviews the Firm's positions and practices on public responsibility matters such as community investment, fair lending, sustainability, consumer practices and other public policy issues that reflect the Firm's values and character and could impact the Firm's reputation among its stakeholders. The Committee also provides guidance on these matters to management and the Board, as appropriate.The Corporate Governance & Nominating Committee exercises general oversight with respect to the governance of the Board of Directors. It reviews the qualifications of and recommends to the Board proposed nominees for election to the Board. The Committee evaluates and recommends to the Board corporate governance practices applicable to the Firm. It also reviews the framework for assessing the Board's performance and self-evaluation. Management oversightThe Firm's senior management-level committees that are primarily responsible for key risk-related functions include:The Firmwide Risk Committee ("FRC") is the Firm's highest management-level risk committee. It oversees the risks inherent in the Firm's business and provides a forum for discussion of risk-related and other topics and issues that are raised or escalated by its members and other committees.The Firmwide Control Committee ("FCC") is an escalation committee for senior management to review and discuss the Firmwide compliance and operational risk environment, including identified issues, compliance and operational risk metrics and significant events that have been escalated. Line of Business and Regional Risk Committees are responsible for overseeing the governance, limits and controls that have been established within the scope of their respective activities. These committees review the ways in which the particular LOB or the businesses operating in a particular region could be exposed to adverse outcomes, with a focus on identifying, accepting, escalating and/or requiring remediation of matters brought to these committees. management. Breaches in risk appetite and parameters, issues that may have a material adverse impact on the Firm, including capital and liquidity issues, and other significant risk-related matters are escalated to the Board Risk Committee, as appropriate.The Audit Committee assists the Board in its oversight of management's responsibilities to ensure that there is an effective system of controls reasonably designed to safeguard the Firm's assets and income, ensure the integrity of the Firm's financial statements, and maintain compliance with the Firm's ethical standards, policies, plans and procedures, and with laws and regulations. It also assists the Board in its oversight of the qualifications, independence and performance of the Firm's independent registered public accounting firm, and of the performance of the Firm's Internal Audit function.The Compensation & Management Development Committee ("CMDC") assists the Board in its oversight of the Firm's compensation principles and practices. The CMDC reviews and approves the Firm's compensation and qualified benefits programs. The Committee reviews the performance of Operating Committee members against their goals, and approves their compensation awards. In addition, the CEO's compensation award is subject to ratification by the independent directors of the Board. The CMDC also reviews the development of and succession for key executives. As part of the Board's role of reinforcing, demonstrating and communicating the "tone at the top," the CMDC oversees the Firm's culture, including reviewing updates from management regarding significant conduct issues and any related actions with respect to employees, including compensation actions.The Public Responsibility Committee oversees and reviews the Firm's positions and practices on public responsibility matters such as community investment, fair lending, sustainability, consumer practices and other public policy issues that reflect the Firm's values and character and could impact the Firm's reputation among its stakeholders. The Committee also provides guidance on these matters to management and the Board, as appropriate.The Corporate Governance & Nominating Committee exercises general oversight with respect to the governance of the Board of Directors. It reviews the qualifications of and recommends to the Board proposed nominees for election to the Board. The Committee evaluates and recommends to the Board corporate governance practices applicable to the Firm. It also reviews the framework for assessing the Board's performance and self-evaluation. management. Breaches in risk appetite and parameters, issues that may have a material adverse impact on the Firm, including capital and liquidity issues, and other significant risk-related matters are escalated to the Board Risk Committee, as appropriate. The Audit Committee assists the Board in its oversight of management's responsibilities to ensure that there is an effective system of controls reasonably designed to safeguard the Firm's assets and income, ensure the integrity of the Firm's financial statements, and maintain compliance with the Firm's ethical standards, policies, plans and procedures, and with laws and regulations. It also assists the Board in its oversight of the qualifications, independence and performance of the Firm's independent registered public accounting firm, and of the performance of the Firm's Internal Audit function. The Compensation & Management Development Committee ("CMDC") assists the Board in its oversight of the Firm's compensation principles and practices. The CMDC reviews and approves the Firm's compensation and qualified benefits programs. The Committee reviews the performance of Operating Committee members against their goals, and approves their compensation awards. In addition, the CEO's compensation award is subject to ratification by the independent directors of the Board. The CMDC also reviews the development of and succession for key executives. As part of the Board's role of reinforcing, demonstrating and communicating the "tone at the top," the CMDC oversees the Firm's culture, including reviewing updates from management regarding significant conduct issues and any related actions with respect to employees, including compensation actions. The Public Responsibility Committee oversees and reviews the Firm's positions and practices on public responsibility matters such as community investment, fair lending, sustainability, consumer practices and other public policy issues that reflect the Firm's values and character and could impact the Firm's reputation among its stakeholders. The Committee also provides guidance on these matters to management and the Board, as appropriate. The Corporate Governance & Nominating Committee exercises general oversight with respect to the governance of the Board of Directors. It reviews the qualifications of and recommends to the Board proposed nominees for election to the Board. The Committee evaluates and recommends to the Board corporate governance practices applicable to the Firm. It also reviews the framework for assessing the Board's performance and self-evaluation. Management oversightThe Firm's senior management-level committees that are primarily responsible for key risk-related functions include:The Firmwide Risk Committee ("FRC") is the Firm's highest management-level risk committee. It oversees the risks inherent in the Firm's business and provides a forum for discussion of risk-related and other topics and issues that are raised or escalated by its members and other committees.The Firmwide Control Committee ("FCC") is an escalation committee for senior management to review and discuss the Firmwide compliance and operational risk environment, including identified issues, compliance and operational risk metrics and significant events that have been escalated. Line of Business and Regional Risk Committees are responsible for overseeing the governance, limits and controls that have been established within the scope of their respective activities. These committees review the ways in which the particular LOB or the businesses operating in a particular region could be exposed to adverse outcomes, with a focus on identifying, accepting, escalating and/or requiring remediation of matters brought to these committees. **Current (2026):** regulations. It also assists the Board in its oversight of the qualifications, independence and performance of the Firm's independent registered public accounting firm, and of the performance of the Firm's Internal Audit function.The Compensation & Management Development Committee ("CMDC") assists the Board in its oversight of the Firm's compensation principles and practices. The CMDC reviews and approves the Firm's compensation and qualified benefits programs. The Committee reviews the performance of Operating Committee members against their goals, and approves their compensation awards. In addition, the CEO's compensation award is subject to ratification by the independent directors of the Board. The CMDC also reviews the development of and succession for key executives. As part of the Board's role of reinforcing, demonstrating and communicating the "tone at the top," the CMDC oversees the Firm's culture, including reviewing updates from management regarding significant conduct issues and any related actions with respect to employees, including compensation actions.The Public Responsibility Committee oversees and reviews the Firm's positions and practices on public responsibility matters such as community investment, fair lending, sustainability, consumer practices and other public policy issues that reflect the Firm's values and character and could impact the Firm's reputation among its stakeholders. The Committee also provides guidance on these matters to management and the Board, as appropriate.The Corporate Governance & Nominating Committee exercises general oversight with respect to the governance of the Board of Directors. It reviews the qualifications of and recommends to the Board proposed nominees for election to the Board. The Committee evaluates and recommends to the Board corporate governance practices applicable to the Firm. It also reviews the framework for assessing the Board's performance and self-evaluation. Management oversightThe Firm's senior management-level committees that are primarily responsible for key risk-related functions include:The Firmwide Risk Committee ("FRC") is the Firm's highest management-level risk committee. It oversees the risks inherent in the Firm's business and provides a forum for discussion of risk-related and other topics and issues that are raised or escalated by its members and other committees.The Firmwide Control Committee ("FCC") is an escalation committee for senior management to review and discuss the Firmwide compliance and operational risk environment, including identified issues, compliance and operational risk metrics and significant events that have been escalated. Line of Business and Regional Risk Committees are responsible for overseeing the governance, limits and controls that have been established within the scope of their respective activities. These committees review the ways in which the particular LOB or the businesses operating in a particular region could be exposed to adverse outcomes, with a focus on identifying, accepting, escalating and/or requiring remediation of matters brought to these committees. The Control Committees for the LOBs and certain of the Corporate functions oversee the risk and control environment of their respective business or function, inclusive of Operational Risk, Compliance and Conduct Risks. As part of that mandate, they are responsible for reviewing indicators of elevated or emerging risks and other data that may impact the level of compliance and operational risk in a business or function, addressing key compliance and operational risk issues, with an emphasis on processes with control concerns, and overseeing control remediation. The Asset and Liability Committee ("ALCO") is responsible for overseeing the Firm's asset and liability management ("ALM"), including the activities and frameworks supporting management of the balance sheet, liquidity risk, interest rate risk and capital risk. The Firmwide Valuation Governance Forum ("VGF") is composed of senior finance and risk executives and is responsible for overseeing the management of risks arising from valuation activities conducted across the Firm. regulations. It also assists the Board in its oversight of the qualifications, independence and performance of the Firm's independent registered public accounting firm, and of the performance of the Firm's Internal Audit function.The Compensation & Management Development Committee ("CMDC") assists the Board in its oversight of the Firm's compensation principles and practices. The CMDC reviews and approves the Firm's compensation and qualified benefits programs. The Committee reviews the performance of Operating Committee members against their goals, and approves their compensation awards. In addition, the CEO's compensation award is subject to ratification by the independent directors of the Board. The CMDC also reviews the development of and succession for key executives. As part of the Board's role of reinforcing, demonstrating and communicating the "tone at the top," the CMDC oversees the Firm's culture, including reviewing updates from management regarding significant conduct issues and any related actions with respect to employees, including compensation actions.The Public Responsibility Committee oversees and reviews the Firm's positions and practices on public responsibility matters such as community investment, fair lending, sustainability, consumer practices and other public policy issues that reflect the Firm's values and character and could impact the Firm's reputation among its stakeholders. The Committee also provides guidance on these matters to management and the Board, as appropriate.The Corporate Governance & Nominating Committee exercises general oversight with respect to the governance of the Board of Directors. It reviews the qualifications of and recommends to the Board proposed nominees for election to the Board. The Committee evaluates and recommends to the Board corporate governance practices applicable to the Firm. It also reviews the framework for assessing the Board's performance and self-evaluation. regulations. It also assists the Board in its oversight of the qualifications, independence and performance of the Firm's independent registered public accounting firm, and of the performance of the Firm's Internal Audit function. The Compensation & Management Development Committee ("CMDC") assists the Board in its oversight of the Firm's compensation principles and practices. The CMDC reviews and approves the Firm's compensation and qualified benefits programs. The Committee reviews the performance of Operating Committee members against their goals, and approves their compensation awards. In addition, the CEO's compensation award is subject to ratification by the independent directors of the Board. The CMDC also reviews the development of and succession for key executives. As part of the Board's role of reinforcing, demonstrating and communicating the "tone at the top," the CMDC oversees the Firm's culture, including reviewing updates from management regarding significant conduct issues and any related actions with respect to employees, including compensation actions. The Public Responsibility Committee oversees and reviews the Firm's positions and practices on public responsibility matters such as community investment, fair lending, sustainability, consumer practices and other public policy issues that reflect the Firm's values and character and could impact the Firm's reputation among its stakeholders. The Committee also provides guidance on these matters to management and the Board, as appropriate. The Corporate Governance & Nominating Committee exercises general oversight with respect to the governance of the Board of Directors. It reviews the qualifications of and recommends to the Board proposed nominees for election to the Board. The Committee evaluates and recommends to the Board corporate governance practices applicable to the Firm. It also reviews the framework for assessing the Board's performance and self-evaluation. Management oversightThe Firm's senior management-level committees that are primarily responsible for key risk-related functions include:The Firmwide Risk Committee ("FRC") is the Firm's highest management-level risk committee. It oversees the risks inherent in the Firm's business and provides a forum for discussion of risk-related and other topics and issues that are raised or escalated by its members and other committees.The Firmwide Control Committee ("FCC") is an escalation committee for senior management to review and discuss the Firmwide compliance and operational risk environment, including identified issues, compliance and operational risk metrics and significant events that have been escalated. Line of Business and Regional Risk Committees are responsible for overseeing the governance, limits and controls that have been established within the scope of their respective activities. These committees review the ways in which the particular LOB or the businesses operating in a particular region could be exposed to adverse outcomes, with a focus on identifying, accepting, escalating and/or requiring remediation of matters brought to these committees. The Control Committees for the LOBs and certain of the Corporate functions oversee the risk and control environment of their respective business or function, inclusive of Operational Risk, Compliance and Conduct Risks. As part of that mandate, they are responsible for reviewing indicators of elevated or emerging risks and other data that may impact the level of compliance and operational risk in a business or function, addressing key compliance and operational risk issues, with an emphasis on processes with control concerns, and overseeing control remediation. The Asset and Liability Committee ("ALCO") is responsible for overseeing the Firm's asset and liability management ("ALM"), including the activities and frameworks supporting management of the balance sheet, liquidity risk, interest rate risk and capital risk. The Firmwide Valuation Governance Forum ("VGF") is composed of senior finance and risk executives and is responsible for overseeing the management of risks arising from valuation activities conducted across the Firm. --- ## Modified Risk: Management's discussion and analysis **Key changes:** - Updated: "Risk-based Capital Regulatory Requirements The following chart presents the CET1 capital regulatory ratio requirements for the Firm under the Basel III rules currently in effect." - Updated: ""Method 2" modifies the Method 1 requirements to include a measure of short-term wholesale funding in place of substitutability, and introduces a GSIB score "multiplication factor." The following table presents the Firm's effective GSIB surcharge for the years ended December 31, 2025 and 2024." - Updated: "As of December 31, 2025, the U.S." - Updated: "All banking institutions are currently required to have a minimum CET1 capital ratio of 4.5% of risk-weighted assets.Certain banking organizations, including the Firm, are required to hold additional levels of capital to serve as a "capital conservation buffer." The capital conservation buffer incorporates a GSIB surcharge, a discretionary countercyclical capital buffer and a fixed capital conservation buffer of 2.5% for Advanced regulatory capital requirements, as well as a variable SCB requirement, floored at 2.5%, for Standardized regulatory capital requirements." - Updated: ""Method 2" modifies the Method 1 requirements to include a measure of short-term wholesale funding in place of substitutability, and introduces a GSIB score "multiplication factor." All banking institutions are currently required to have a minimum CET1 capital ratio of 4.5% of risk-weighted assets." **Prior (2025):** Risk-based Capital Regulatory Requirements The following chart presents the Firm's Basel III CET1 capital ratio requirements under the Basel III rules currently in effect. All banking institutions are currently required to have a minimum CET1 capital ratio of 4.5% of risk-weighted assets.Certain banking organizations, including the Firm, are required to hold additional levels of capital to serve as a "capital conservation buffer". The capital conservation buffer incorporates a GSIB surcharge, a discretionary countercyclical capital buffer and a fixed capital conservation buffer of 2.5% for Advanced regulatory capital requirements, as well as a variable SCB requirement, floored at 2.5%, for Standardized regulatory capital requirements. Under the Federal Reserve's GSIB rule, the Firm is required to assess its GSIB surcharge on an annual basis under two separately prescribed methods based on data for the previous fiscal year-end, and is subject to the higher of the two. "Method 1" reflects the GSIB surcharge as prescribed by the Basel Committee's assessment methodology, and is calculated across five criteria: size, cross-jurisdictional activity, interconnectedness, complexity and substitutability. "Method 2" modifies the Method 1 requirements to include a measure of short-term wholesale funding in place of substitutability, and introduces a GSIB score "multiplication factor". The following table presents the Firm's effective GSIB surcharge for the years ended December 31, 2024 and 2023. For 2025, the Firm's effective regulatory minimum GSIB surcharge calculated under both Method 1 and Method 2 remains unchanged at 2.5% and 4.5%, respectively.20242023Method 12.5 %2.5 %Method 24.5 %4.0 %The U.S. federal regulatory capital standards include a framework for setting a discretionary countercyclical capital buffer taking into account the macro financial environment in which large, internationally active banks function. As of December 31, 2024, the U.S. countercyclical capital buffer remained at 0%. The Federal Reserve will continue to review the buffer at least annually. The buffer can be increased if the Federal Reserve, the FDIC and the OCC determine that systemic risks are meaningfully above normal and can be calibrated up to an additional 2.5% of RWA subject to a 12-month implementation period. Failure to maintain regulatory capital equal to or in excess of the risk-based regulatory capital minimum plus the capital conservation buffer (inclusive of the GSIB surcharge) and any countercyclical buffer will result in limitations to the amount of capital that the Firm may distribute, such as through dividends and common share repurchases, as well as on discretionary bonus payments for certain executive officers. All banking institutions are currently required to have a minimum CET1 capital ratio of 4.5% of risk-weighted assets.Certain banking organizations, including the Firm, are required to hold additional levels of capital to serve as a "capital conservation buffer". The capital conservation buffer incorporates a GSIB surcharge, a discretionary countercyclical capital buffer and a fixed capital conservation buffer of 2.5% for Advanced regulatory capital requirements, as well as a variable SCB requirement, floored at 2.5%, for Standardized regulatory capital requirements. Under the Federal Reserve's GSIB rule, the Firm is required to assess its GSIB surcharge on an annual basis under two separately prescribed methods based on data for the previous fiscal year-end, and is subject to the higher of the two. "Method 1" reflects the GSIB surcharge as prescribed by the Basel Committee's assessment methodology, and is calculated across five criteria: size, cross-jurisdictional activity, interconnectedness, complexity and substitutability. "Method 2" modifies the Method 1 requirements to include a measure of short-term wholesale funding in place of substitutability, and introduces a GSIB score "multiplication factor". The following table presents the Firm's effective GSIB surcharge for the years ended December 31, 2024 and 2023. For 2025, the Firm's effective regulatory minimum GSIB surcharge calculated under both All banking institutions are currently required to have a minimum CET1 capital ratio of 4.5% of risk-weighted assets. Certain banking organizations, including the Firm, are required to hold additional levels of capital to serve as a "capital conservation buffer". The capital conservation buffer incorporates a GSIB surcharge, a discretionary countercyclical capital buffer and a fixed capital conservation buffer of 2.5% for Advanced regulatory capital requirements, as well as a variable SCB requirement, floored at 2.5%, for Standardized regulatory capital requirements. Under the Federal Reserve's GSIB rule, the Firm is required to assess its GSIB surcharge on an annual basis under two separately prescribed methods based on data for the previous fiscal year-end, and is subject to the higher of the two. "Method 1" reflects the GSIB surcharge as prescribed by the Basel Committee's assessment methodology, and is calculated across five criteria: size, cross-jurisdictional activity, interconnectedness, complexity and substitutability. "Method 2" modifies the Method 1 requirements to include a measure of short-term wholesale funding in place of substitutability, and introduces a GSIB score "multiplication factor". The following table presents the Firm's effective GSIB surcharge for the years ended December 31, 2024 and 2023. For 2025, the Firm's effective regulatory minimum GSIB surcharge calculated under both Method 1 and Method 2 remains unchanged at 2.5% and 4.5%, respectively.20242023Method 12.5 %2.5 %Method 24.5 %4.0 %The U.S. federal regulatory capital standards include a framework for setting a discretionary countercyclical capital buffer taking into account the macro financial environment in which large, internationally active banks function. As of December 31, 2024, the U.S. countercyclical capital buffer remained at 0%. The Federal Reserve will continue to review the buffer at least annually. The buffer can be increased if the Federal Reserve, the FDIC and the OCC determine that systemic risks are meaningfully above normal and can be calibrated up to an additional 2.5% of RWA subject to a 12-month implementation period. Failure to maintain regulatory capital equal to or in excess of the risk-based regulatory capital minimum plus the capital conservation buffer (inclusive of the GSIB surcharge) and any countercyclical buffer will result in limitations to the amount of capital that the Firm may distribute, such as through dividends and common share repurchases, as well as on discretionary bonus payments for certain executive officers. Method 1 and Method 2 remains unchanged at 2.5% and 4.5%, respectively. 20242023Method 12.5 %2.5 %Method 24.5 %4.0 % The U.S. federal regulatory capital standards include a framework for setting a discretionary countercyclical capital buffer taking into account the macro financial environment in which large, internationally active banks function. As of December 31, 2024, the U.S. countercyclical capital buffer remained at 0%. The Federal Reserve will continue to review the buffer at least annually. The buffer can be increased if the Federal Reserve, the FDIC and the OCC determine that systemic risks are meaningfully above normal and can be calibrated up to an additional 2.5% of RWA subject to a 12-month implementation period. Failure to maintain regulatory capital equal to or in excess of the risk-based regulatory capital minimum plus the capital conservation buffer (inclusive of the GSIB surcharge) and any countercyclical buffer will result in limitations to the amount of capital that the Firm may distribute, such as through dividends and common share repurchases, as well as on discretionary bonus payments for certain executive officers. 100JPMorgan Chase & Co./2024 Form 10-K 100JPMorgan Chase & Co./2024 Form 10-K 100JPMorgan Chase & Co./2024 Form 10-K 100 JPMorgan Chase & Co./2024 Form 10-K Total Loss-Absorbing CapacityThe Federal Reserve's TLAC rule requires the U.S. GSIB top-tier holding companies, including the Firm, to maintain minimum levels of external TLAC and eligible LTD. Refer to TLAC on page 106 for additional information.Leverage-based Capital Regulatory RequirementsSupplementary leverage ratioBanking organizations subject to the Basel III Advanced approach are currently required to have a minimum SLR of 3.0%. Certain banking organizations, including the Firm, are also required to hold an additional 2.0% leverage buffer. The SLR is defined as Tier 1 capital under Basel III divided by the Firm's total leverage exposure. Total leverage exposure is calculated by taking the Firm's total average on-balance sheet assets, less amounts permitted to be deducted for Tier 1 capital, and adding certain off-balance sheet exposures, as defined in regulatory capital rules. Refer to SLR on page 104 for additional information.Failure to maintain an SLR equal to or greater than the regulatory requirement will result in limitations on the amount of capital that the Firm may distribute such as through dividends and common share repurchases, as well as on discretionary bonus payments for certain executive officers.Other regulatory capitalIn addition to meeting the capital ratio requirements of Basel III, the Firm and its principal IDI subsidiary, JPMorgan Chase Bank, N.A., must also maintain minimum capital and leverage ratios in order to be "well-capitalized" under the regulations issued by the Federal Reserve and the Prompt Corrective Action requirements of the FDIC Improvement Act, respectively. Refer to Note 27 for additional information. Additional information regarding the Firm's capital ratios, as well as the U.S. federal regulatory capital standards to which the Firm is subject, is presented in Note 27. Refer to the Firm's Pillar 3 Regulatory Capital Disclosures reports, which are available on the Firm's website, for further information on the Firm's current capital measures. Total Loss-Absorbing CapacityThe Federal Reserve's TLAC rule requires the U.S. GSIB top-tier holding companies, including the Firm, to maintain minimum levels of external TLAC and eligible LTD. Refer to TLAC on page 106 for additional information.Leverage-based Capital Regulatory RequirementsSupplementary leverage ratioBanking organizations subject to the Basel III Advanced approach are currently required to have a minimum SLR of 3.0%. Certain banking organizations, including the Firm, are also required to hold an additional 2.0% leverage buffer. The SLR is defined as Tier 1 capital under Basel III divided by the Firm's total leverage exposure. Total leverage exposure is calculated by taking the Firm's total average on-balance sheet assets, less amounts permitted to be deducted for Tier 1 capital, and adding certain off-balance sheet exposures, as defined in regulatory capital rules. Refer to SLR on page 104 for additional information.Failure to maintain an SLR equal to or greater than the regulatory requirement will result in limitations on the amount of capital that the Firm may distribute such as through dividends and common share repurchases, as well as on discretionary bonus payments for certain executive officers. Total Loss-Absorbing Capacity The Federal Reserve's TLAC rule requires the U.S. GSIB top-tier holding companies, including the Firm, to maintain minimum levels of external TLAC and eligible LTD. Refer to TLAC on page 106 for additional information. Leverage-based Capital Regulatory Requirements Supplementary leverage ratio Banking organizations subject to the Basel III Advanced approach are currently required to have a minimum SLR of 3.0%. Certain banking organizations, including the Firm, are also required to hold an additional 2.0% leverage buffer. The SLR is defined as Tier 1 capital under Basel III divided by the Firm's total leverage exposure. Total leverage exposure is calculated by taking the Firm's total average on-balance sheet assets, less amounts permitted to be deducted for Tier 1 capital, and adding certain off-balance sheet exposures, as defined in regulatory capital rules. Refer to SLR on page 104 for additional information. Failure to maintain an SLR equal to or greater than the regulatory requirement will result in limitations on the amount of capital that the Firm may distribute such as through dividends and common share repurchases, as well as on discretionary bonus payments for certain executive officers. Other regulatory capitalIn addition to meeting the capital ratio requirements of Basel III, the Firm and its principal IDI subsidiary, JPMorgan Chase Bank, N.A., must also maintain minimum capital and leverage ratios in order to be "well-capitalized" under the regulations issued by the Federal Reserve and the Prompt Corrective Action requirements of the FDIC Improvement Act, respectively. Refer to Note 27 for additional information. Additional information regarding the Firm's capital ratios, as well as the U.S. federal regulatory capital standards to which the Firm is subject, is presented in Note 27. Refer to the Firm's Pillar 3 Regulatory Capital Disclosures reports, which are available on the Firm's website, for further information on the Firm's current capital measures. Other regulatory capital In addition to meeting the capital ratio requirements of Basel III, the Firm and its principal IDI subsidiary, JPMorgan Chase Bank, N.A., must also maintain minimum capital and leverage ratios in order to be "well-capitalized" under the regulations issued by the Federal Reserve and the Prompt Corrective Action requirements of the FDIC Improvement Act, respectively. Refer to Note 27 for additional information. Additional information regarding the Firm's capital ratios, as well as the U.S. federal regulatory capital standards to which the Firm is subject, is presented in Note 27. Refer to the Firm's Pillar 3 Regulatory Capital Disclosures reports, which are available on the Firm's website, for further information on the Firm's current capital measures. JPMorgan Chase & Co./2024 Form 10-K101 JPMorgan Chase & Co./2024 Form 10-K101 JPMorgan Chase & Co./2024 Form 10-K101 JPMorgan Chase & Co./2024 Form 10-K 101 **Current (2026):** Risk-based Capital Regulatory Requirements The following chart presents the CET1 capital regulatory ratio requirements for the Firm under the Basel III rules currently in effect. All banking institutions are currently required to have a minimum CET1 capital ratio of 4.5% of risk-weighted assets.Certain banking organizations, including the Firm, are required to hold additional levels of capital to serve as a "capital conservation buffer." The capital conservation buffer incorporates a GSIB surcharge, a discretionary countercyclical capital buffer and a fixed capital conservation buffer of 2.5% for Advanced regulatory capital requirements, as well as a variable SCB requirement, floored at 2.5%, for Standardized regulatory capital requirements. Under the Federal Reserve's GSIB rule, the Firm is required to assess its GSIB surcharge on an annual basis under two separately prescribed methods based on data for the previous fiscal year-end, and is subject to the higher of the two. "Method 1" reflects the GSIB surcharge as prescribed by the Basel Committee's assessment methodology, and is calculated across five criteria: size, cross-jurisdictional activity, interconnectedness, complexity and substitutability. "Method 2" modifies the Method 1 requirements to include a measure of short-term wholesale funding in place of substitutability, and introduces a GSIB score "multiplication factor." The following table presents the Firm's effective GSIB surcharge for the years ended December 31, 2025 and 2024. For 2026, the Firm's effective regulatory minimum GSIB surcharge calculated under both Method 1 and Method 2 remains unchanged at 2.5% and 4.5%, respectively.20252024Method 12.5 %2.5 %Method 24.5 %4.5 %The U.S. federal regulatory capital standards include a framework for setting a discretionary countercyclical capital buffer taking into account the macro financial environment in which large, internationally active banks function. As of December 31, 2025, the U.S. countercyclical capital buffer remained at 0%. The Federal Reserve will continue to review the buffer at least annually. The buffer can be increased if the Federal Reserve, the FDIC and the OCC determine that systemic risks are meaningfully above normal and can be calibrated up to an additional 2.5% of RWA subject to a 12-month implementation period. Failure to maintain regulatory capital equal to or in excess of the risk-based regulatory capital minimum plus the capital conservation buffer (inclusive of the GSIB surcharge) and any countercyclical buffer will result in limitations to the amount of capital that the Firm may distribute, such as through dividends and common share repurchases, as well as on discretionary bonus payments for certain executive officers. All banking institutions are currently required to have a minimum CET1 capital ratio of 4.5% of risk-weighted assets.Certain banking organizations, including the Firm, are required to hold additional levels of capital to serve as a "capital conservation buffer." The capital conservation buffer incorporates a GSIB surcharge, a discretionary countercyclical capital buffer and a fixed capital conservation buffer of 2.5% for Advanced regulatory capital requirements, as well as a variable SCB requirement, floored at 2.5%, for Standardized regulatory capital requirements. Under the Federal Reserve's GSIB rule, the Firm is required to assess its GSIB surcharge on an annual basis under two separately prescribed methods based on data for the previous fiscal year-end, and is subject to the higher of the two. "Method 1" reflects the GSIB surcharge as prescribed by the Basel Committee's assessment methodology, and is calculated across five criteria: size, cross-jurisdictional activity, interconnectedness, complexity and substitutability. "Method 2" modifies the Method 1 requirements to include a measure of short-term wholesale funding in place of substitutability, and introduces a GSIB score "multiplication factor." All banking institutions are currently required to have a minimum CET1 capital ratio of 4.5% of risk-weighted assets. Certain banking organizations, including the Firm, are required to hold additional levels of capital to serve as a "capital conservation buffer." The capital conservation buffer incorporates a GSIB surcharge, a discretionary countercyclical capital buffer and a fixed capital conservation buffer of 2.5% for Advanced regulatory capital requirements, as well as a variable SCB requirement, floored at 2.5%, for Standardized regulatory capital requirements. Under the Federal Reserve's GSIB rule, the Firm is required to assess its GSIB surcharge on an annual basis under two separately prescribed methods based on data for the previous fiscal year-end, and is subject to the higher of the two. "Method 1" reflects the GSIB surcharge as prescribed by the Basel Committee's assessment methodology, and is calculated across five criteria: size, cross-jurisdictional activity, interconnectedness, complexity and substitutability. "Method 2" modifies the Method 1 requirements to include a measure of short-term wholesale funding in place of substitutability, and introduces a GSIB score "multiplication factor." The following table presents the Firm's effective GSIB surcharge for the years ended December 31, 2025 and 2024. For 2026, the Firm's effective regulatory minimum GSIB surcharge calculated under both Method 1 and Method 2 remains unchanged at 2.5% and 4.5%, respectively.20252024Method 12.5 %2.5 %Method 24.5 %4.5 %The U.S. federal regulatory capital standards include a framework for setting a discretionary countercyclical capital buffer taking into account the macro financial environment in which large, internationally active banks function. As of December 31, 2025, the U.S. countercyclical capital buffer remained at 0%. The Federal Reserve will continue to review the buffer at least annually. The buffer can be increased if the Federal Reserve, the FDIC and the OCC determine that systemic risks are meaningfully above normal and can be calibrated up to an additional 2.5% of RWA subject to a 12-month implementation period. Failure to maintain regulatory capital equal to or in excess of the risk-based regulatory capital minimum plus the capital conservation buffer (inclusive of the GSIB surcharge) and any countercyclical buffer will result in limitations to the amount of capital that the Firm may distribute, such as through dividends and common share repurchases, as well as on discretionary bonus payments for certain executive officers. The following table presents the Firm's effective GSIB surcharge for the years ended December 31, 2025 and 2024. For 2026, the Firm's effective regulatory minimum GSIB surcharge calculated under both Method 1 and Method 2 remains unchanged at 2.5% and 4.5%, respectively. 20252024Method 12.5 %2.5 %Method 24.5 %4.5 % The U.S. federal regulatory capital standards include a framework for setting a discretionary countercyclical capital buffer taking into account the macro financial environment in which large, internationally active banks function. As of December 31, 2025, the U.S. countercyclical capital buffer remained at 0%. The Federal Reserve will continue to review the buffer at least annually. The buffer can be increased if the Federal Reserve, the FDIC and the OCC determine that systemic risks are meaningfully above normal and can be calibrated up to an additional 2.5% of RWA subject to a 12-month implementation period. Failure to maintain regulatory capital equal to or in excess of the risk-based regulatory capital minimum plus the capital conservation buffer (inclusive of the GSIB surcharge) and any countercyclical buffer will result in limitations to the amount of capital that the Firm may distribute, such as through dividends and common share repurchases, as well as on discretionary bonus payments for certain executive officers. 92JPMorgan Chase & Co./2025 Form 10-K 92JPMorgan Chase & Co./2025 Form 10-K 92JPMorgan Chase & Co./2025 Form 10-K 92 JPMorgan Chase & Co./2025 Form 10-K Total Loss-Absorbing Capacity The Federal Reserve's TLAC rule requires the U.S. GSIB top-tier holding companies, including the Firm, to maintain minimum levels of external TLAC and eligible LTD. These requirements were updated in the eSLR final rule which the Firm has elected to early adopt effective January 1, 2026. Refer to Key Regulatory Developments on page 91 for additional information related to the eSLR final rule. Refer to page 98 for additional information related to TLAC.Leverage-based Capital Regulatory RequirementsSupplementary leverage ratio Banking organizations subject to the Advanced approach are currently required to have a minimum SLR of 3.0%. Certain banking organizations, including the Firm, are also required to hold an additional 2.0% leverage buffer. The SLR is defined as Tier 1 capital under Basel III divided by the Firm's total leverage exposure. Total leverage exposure is calculated by taking the Firm's total average on-balance sheet assets, less amounts permitted to be deducted for Tier 1 capital, and adding certain off-balance sheet exposures, as defined in regulatory capital rules. These requirements were updated in the eSLR final rule which the Firm has elected to early adopt effective January 1, 2026. Refer to Key Regulatory Developments on page 91 for additional information related to the eSLR final rule. Refer to page 96 for additional information related to SLR.Failure to maintain an SLR equal to or greater than the regulatory requirement will result in limitations on the amount of capital that the Firm may distribute such as through dividends and common share repurchases, as well as on discretionary bonus payments for certain executive officers.Other regulatory capitalIn addition to meeting the capital ratio requirements of Basel III, the Firm and its principal IDI subsidiary, JPMorgan Chase Bank, N.A., must also maintain minimum capital and leverage ratios in order to be "well-capitalized" under the regulations issued by the Federal Reserve and the Prompt Corrective Action requirements of the FDIC Improvement Act, respectively. Refer to Note 27 for additional information. Additional information regarding the Firm's capital ratios, as well as the U.S. federal regulatory capital standards to which the Firm is subject, is presented in Note 27. Refer to the Firm's Pillar 3 Regulatory Capital Disclosures reports, which are available on the Firm's website, for further information on the Firm's current capital measures. Total Loss-Absorbing Capacity The Federal Reserve's TLAC rule requires the U.S. GSIB top-tier holding companies, including the Firm, to maintain minimum levels of external TLAC and eligible LTD. These requirements were updated in the eSLR final rule which the Firm has elected to early adopt effective January 1, 2026. Refer to Key Regulatory Developments on page 91 for additional information related to the eSLR final rule. Refer to page 98 for additional information related to TLAC.Leverage-based Capital Regulatory RequirementsSupplementary leverage ratio Banking organizations subject to the Advanced approach are currently required to have a minimum SLR of 3.0%. Certain banking organizations, including the Firm, are also required to hold an additional 2.0% leverage buffer. The SLR is defined as Tier 1 capital under Basel III divided by the Firm's total leverage exposure. Total leverage exposure is calculated by taking the Firm's total average on-balance sheet assets, less amounts permitted to be deducted for Tier 1 capital, and adding certain off-balance sheet exposures, as defined in regulatory capital rules. These requirements were updated in the eSLR final rule which the Firm has elected to early adopt effective January 1, 2026. Refer to Key Regulatory Developments on page 91 for additional information related to the eSLR final rule. Refer to page 96 for additional information related to SLR.Failure to maintain an SLR equal to or greater than the regulatory requirement will result in limitations on the amount of capital that the Firm may distribute such as through dividends and common share repurchases, as well as on discretionary bonus payments for certain executive officers. Total Loss-Absorbing Capacity The Federal Reserve's TLAC rule requires the U.S. GSIB top-tier holding companies, including the Firm, to maintain minimum levels of external TLAC and eligible LTD. These requirements were updated in the eSLR final rule which the Firm has elected to early adopt effective January 1, 2026. Refer to Key Regulatory Developments on page 91 for additional information related to the eSLR final rule. Refer to page 98 for additional information related to TLAC. Leverage-based Capital Regulatory Requirements Supplementary leverage ratio Banking organizations subject to the Advanced approach are currently required to have a minimum SLR of 3.0%. Certain banking organizations, including the Firm, are also required to hold an additional 2.0% leverage buffer. The SLR is defined as Tier 1 capital under Basel III divided by the Firm's total leverage exposure. Total leverage exposure is calculated by taking the Firm's total average on-balance sheet assets, less amounts permitted to be deducted for Tier 1 capital, and adding certain off-balance sheet exposures, as defined in regulatory capital rules. These requirements were updated in the eSLR final rule which the Firm has elected to early adopt effective January 1, 2026. Refer to Key Regulatory Developments on page 91 for additional information related to the eSLR final rule. Refer to page 96 for additional information related to SLR. Failure to maintain an SLR equal to or greater than the regulatory requirement will result in limitations on the amount of capital that the Firm may distribute such as through dividends and common share repurchases, as well as on discretionary bonus payments for certain executive officers. Other regulatory capitalIn addition to meeting the capital ratio requirements of Basel III, the Firm and its principal IDI subsidiary, JPMorgan Chase Bank, N.A., must also maintain minimum capital and leverage ratios in order to be "well-capitalized" under the regulations issued by the Federal Reserve and the Prompt Corrective Action requirements of the FDIC Improvement Act, respectively. Refer to Note 27 for additional information. Additional information regarding the Firm's capital ratios, as well as the U.S. federal regulatory capital standards to which the Firm is subject, is presented in Note 27. Refer to the Firm's Pillar 3 Regulatory Capital Disclosures reports, which are available on the Firm's website, for further information on the Firm's current capital measures. Other regulatory capital In addition to meeting the capital ratio requirements of Basel III, the Firm and its principal IDI subsidiary, JPMorgan Chase Bank, N.A., must also maintain minimum capital and leverage ratios in order to be "well-capitalized" under the regulations issued by the Federal Reserve and the Prompt Corrective Action requirements of the FDIC Improvement Act, respectively. Refer to Note 27 for additional information. Additional information regarding the Firm's capital ratios, as well as the U.S. federal regulatory capital standards to which the Firm is subject, is presented in Note 27. Refer to the Firm's Pillar 3 Regulatory Capital Disclosures reports, which are available on the Firm's website, for further information on the Firm's current capital measures. JPMorgan Chase & Co./2025 Form 10-K93 JPMorgan Chase & Co./2025 Form 10-K93 JPMorgan Chase & Co./2025 Form 10-K93 JPMorgan Chase & Co./2025 Form 10-K 93 --- ## Modified Risk: fair value on a recurring basis **Key changes:** - Added: "During the year ended December 31, 2025, significant transfers from level 2 into level 3 included the following: •$1.2 billion of total debt and equity instruments, predominantly trading loans and equity securities, driven by a decrease in observability." - Added: "•$904 million of gross interest rate derivative payables as a result of a decrease in observability and an increase in the significance of unobservable inputs." - Added: "•$1.6 billion of both gross equity derivative receivables and payables as a result of a decrease in observability and an increase in the significance of unobservable inputs." - Added: "•$1.3 billion of non-trading loans driven by a decrease in observability." - Added: "During the year ended December 31, 2025, significant transfers from level 3 into level 2 included the following: •$1.3 billion of total debt and equity instruments, predominantly trading loans, driven by an increase in observability.•$1.3 billion of gross interest rate derivative receivables and $1.2 billion of gross interest rate derivative payables as a result of an increase in observability and a decrease in the significance of unobservable inputs.•$2.1 billion of gross equity derivative receivables and $2.7 billion of gross equity derivative payables as a result of an increase in observability and a decrease in the significance of unobservable inputs.•$2.9 billion of long-term debt as a result of an increase in observability and a decrease in the significance of unobservable inputs.During the year ended December 31, 2024, significant transfers from level 2 into level 3 included the following:•$1.0 billion of total debt and equity instruments, predominantly trading loans, driven by a decrease in observability.•$959 million of gross interest rate derivative receivables and $1.1 billion of gross interest rate derivative payables as a result of a decrease in observability and an increase in the significance of unobservable inputs.•$1.6 billion of gross equity derivative receivables and $1.7 billion of gross equity derivative payables as a result of a decrease in observability and an increase in the significance of unobservable inputs.•$816 million of non-trading loans driven by a decrease in observability." **Prior (2025):** During the year ended December 31, 2024, significant transfers from level 2 into level 3 included the following: •$1.0 billion of total debt and equity instruments, predominantly trading loans, driven by a decrease in observability. •$959 million of gross interest rate derivative receivables and $1.1 billion of gross interest rate derivative payables as a result of a decrease in observability and an increase in the significance of unobservable inputs. •$1.6 billion of gross equity derivative receivables and $1.7 billion of gross equity derivative payables as a result of a decrease in observability and an increase in the significance of unobservable inputs.•$816 million of non-trading loans driven by a decrease in observability.During the year ended December 31, 2024, significant transfers from level 3 into level 2 included the following:•$880 million of total debt and equity instruments, predominantly trading loans and equity securities, driven by an increase in observability.•$1.4 billion of gross equity derivative receivables and $2.0 billion of gross equity derivative payables as a result of an increase in observability and a decrease in the significance of unobservable inputs.•$863 million of long-term debt as a result of an increase in observability and a decrease in the significance of unobservable inputs.During the year ended December 31, 2023, significant transfers from level 2 into level 3 included the following:•$951 million of gross interest rate derivative receivables as a result of a decrease in observability and an increase in the significance of unobservable inputs and $2.1 billion of gross interest rate derivative payables as a result of transition to term SOFR for certain interest rate options.•$1.5 billion of gross equity derivative receivables and $829 million of gross equity derivative payables as a result of a decrease in observability and an increase in the significance of unobservable inputs.•$1.3 billion of non-trading loans driven by a decrease in observability. result of a decrease in observability and an increase in the significance of unobservable inputs. •$816 million of non-trading loans driven by a decrease in observability. During the year ended December 31, 2024, significant transfers from level 3 into level 2 included the following: •$880 million of total debt and equity instruments, predominantly trading loans and equity securities, driven by an increase in observability. •$1.4 billion of gross equity derivative receivables and $2.0 billion of gross equity derivative payables as a result of an increase in observability and a decrease in the significance of unobservable inputs. •$863 million of long-term debt as a result of an increase in observability and a decrease in the significance of unobservable inputs. During the year ended December 31, 2023, significant transfers from level 2 into level 3 included the following: •$951 million of gross interest rate derivative receivables as a result of a decrease in observability and an increase in the significance of unobservable inputs and $2.1 billion of gross interest rate derivative payables as a result of transition to term SOFR for certain interest rate options. •$1.5 billion of gross equity derivative receivables and $829 million of gross equity derivative payables as a result of a decrease in observability and an increase in the significance of unobservable inputs. •$1.3 billion of non-trading loans driven by a decrease in observability. 196JPMorgan Chase & Co./2024 Form 10-K 196JPMorgan Chase & Co./2024 Form 10-K 196JPMorgan Chase & Co./2024 Form 10-K 196 JPMorgan Chase & Co./2024 Form 10-K During the year ended December 31, 2023, significant transfers from level 3 into level 2 included the following:•$1.1 billion of total debt and equity instruments, partially due to trading loans, driven by an increase in observability.•$921 million of gross interest rate derivative receivables as a result of an increase in observability and a decrease in the significance of unobservable inputs.•$2.3 billion of gross equity derivative receivables and $1.7 billion of gross equity derivative payables as a result of an increase in observability and a decrease in the significance of unobservable inputs.•$1.1 billion of non-trading loans as a result of an increase in observability and a decrease in the significance of unobservable inputs.During the year ended December 31, 2022, significant transfers from level 2 into level 3 included the following:•$2.4 billion of total debt and equity instruments, predominantly due to equity securities of $1.1 billion driven by a decrease in observability predominantly as a result of restricted access to certain markets and trading loans of $925 million driven by a decrease in observability.•$1.6 billion of gross interest rate derivative receivables and $878 million of gross interest rate derivative payables as a result of a decrease in observability and an increase in the significance of unobservable inputs.•$1.6 billion of gross equity derivative receivables and $2.3 billion of gross equity derivative payables as a result of a decrease in observability and an increase in the significance of unobservable inputs.•$1.1 billion of non-trading loans driven by a decrease in observability.•$793 million of long-term debt driven by a decrease in observability and an increase in the significance of unobservable inputs for structured notes.During the year ended December 31, 2022, significant transfers from level 3 into level 2 included the following:•$1.2 billion of total debt and equity instruments, largely due to trading loans, driven by an increase in observability.•$1.2 billion of gross interest rate derivative receivables and $807 million of gross interest rate derivative payables as a result of an increase in observability and a decrease in the significance of unobservable inputs.•$2.2 billion of gross equity derivative receivables and $2.3 billion of gross equity derivative payables as a result of an increase in observability and a decrease in the significance of unobservable inputs.•$831 million of non-trading loans driven by an increase in observability.•$1.0 billion of long-term debt driven by an increase in observability and a decrease in the significance of unobservable inputs for structured notes.All transfers are based on changes in the observability and/or significance of the valuation inputs and are assumed to occur at the beginning of the quarterly reporting period in which they occur. Gains and losses The following describes significant components of total realized/unrealized gains/(losses) for instruments measured at fair value on a recurring basis for the years ended December 31, 2024, 2023 and 2022. These amounts exclude any effects of the Firm's risk management activities where the financial instruments are classified as level 1 and 2 of the fair value hierarchy. Refer to Changes in level 3 recurring fair value measurements rollforward tables on pages 192-196 for further information on these instruments. 2024•$1.9 billion of net gains on assets, predominantly driven by gains in net interest rate derivative receivables due to market movements and gains in MSRs reflecting lower prepayment speeds on higher rates.•$1.6 billion of net losses on liabilities, predominantly driven by losses in long-term debt due to market movements.2023•$1.8 billion of net gains on assets, largely driven by gains in net interest rate derivative receivables due to market movements and gains in MSRs reflecting lower prepayment speeds on higher rates. •$3.3 billion of net losses on liabilities, predominantly driven by losses in long-term debt due to market movements.2022•$7.7 billion of net gains on assets, predominantly driven by gains in net equity derivative receivables due to market movements and gains in MSRs reflecting lower prepayment speeds on higher rates. •$4.6 billion of net gains on liabilities, predominantly driven by a decline in the fair value of long-term debt due to market movements.Refer to Note 15 for information on MSRs. During the year ended December 31, 2023, significant transfers from level 3 into level 2 included the following:•$1.1 billion of total debt and equity instruments, partially due to trading loans, driven by an increase in observability.•$921 million of gross interest rate derivative receivables as a result of an increase in observability and a decrease in the significance of unobservable inputs.•$2.3 billion of gross equity derivative receivables and $1.7 billion of gross equity derivative payables as a result of an increase in observability and a decrease in the significance of unobservable inputs.•$1.1 billion of non-trading loans as a result of an increase in observability and a decrease in the significance of unobservable inputs.During the year ended December 31, 2022, significant transfers from level 2 into level 3 included the following:•$2.4 billion of total debt and equity instruments, predominantly due to equity securities of $1.1 billion driven by a decrease in observability predominantly as a result of restricted access to certain markets and trading loans of $925 million driven by a decrease in observability.•$1.6 billion of gross interest rate derivative receivables and $878 million of gross interest rate derivative payables as a result of a decrease in observability and an increase in the significance of unobservable inputs.•$1.6 billion of gross equity derivative receivables and $2.3 billion of gross equity derivative payables as a result of a decrease in observability and an increase in the significance of unobservable inputs.•$1.1 billion of non-trading loans driven by a decrease in observability.•$793 million of long-term debt driven by a decrease in observability and an increase in the significance of unobservable inputs for structured notes.During the year ended December 31, 2022, significant transfers from level 3 into level 2 included the following:•$1.2 billion of total debt and equity instruments, largely due to trading loans, driven by an increase in observability.•$1.2 billion of gross interest rate derivative receivables and $807 million of gross interest rate derivative payables as a result of an increase in observability and a decrease in the significance of unobservable inputs.•$2.2 billion of gross equity derivative receivables and $2.3 billion of gross equity derivative payables as a result of an increase in observability and a decrease in the significance of unobservable inputs. During the year ended December 31, 2023, significant transfers from level 3 into level 2 included the following: •$1.1 billion of total debt and equity instruments, partially due to trading loans, driven by an increase in observability. •$921 million of gross interest rate derivative receivables as a result of an increase in observability and a decrease in the significance of unobservable inputs. •$2.3 billion of gross equity derivative receivables and $1.7 billion of gross equity derivative payables as a result of an increase in observability and a decrease in the significance of unobservable inputs. •$1.1 billion of non-trading loans as a result of an increase in observability and a decrease in the significance of unobservable inputs. During the year ended December 31, 2022, significant transfers from level 2 into level 3 included the following: •$2.4 billion of total debt and equity instruments, predominantly due to equity securities of $1.1 billion driven by a decrease in observability predominantly as a result of restricted access to certain markets and trading loans of $925 million driven by a decrease in observability. •$1.6 billion of gross interest rate derivative receivables and $878 million of gross interest rate derivative payables as a result of a decrease in observability and an increase in the significance of unobservable inputs. •$1.6 billion of gross equity derivative receivables and $2.3 billion of gross equity derivative payables as a result of a decrease in observability and an increase in the significance of unobservable inputs. •$1.1 billion of non-trading loans driven by a decrease in observability. •$793 million of long-term debt driven by a decrease in observability and an increase in the significance of unobservable inputs for structured notes. During the year ended December 31, 2022, significant transfers from level 3 into level 2 included the following: •$1.2 billion of total debt and equity instruments, largely due to trading loans, driven by an increase in observability. •$1.2 billion of gross interest rate derivative receivables and $807 million of gross interest rate derivative payables as a result of an increase in observability and a decrease in the significance of unobservable inputs. •$2.2 billion of gross equity derivative receivables and $2.3 billion of gross equity derivative payables as a result of an increase in observability and a decrease in the significance of unobservable inputs. •$831 million of non-trading loans driven by an increase in observability.•$1.0 billion of long-term debt driven by an increase in observability and a decrease in the significance of unobservable inputs for structured notes.All transfers are based on changes in the observability and/or significance of the valuation inputs and are assumed to occur at the beginning of the quarterly reporting period in which they occur. Gains and losses The following describes significant components of total realized/unrealized gains/(losses) for instruments measured at fair value on a recurring basis for the years ended December 31, 2024, 2023 and 2022. These amounts exclude any effects of the Firm's risk management activities where the financial instruments are classified as level 1 and 2 of the fair value hierarchy. Refer to Changes in level 3 recurring fair value measurements rollforward tables on pages 192-196 for further information on these instruments. 2024•$1.9 billion of net gains on assets, predominantly driven by gains in net interest rate derivative receivables due to market movements and gains in MSRs reflecting lower prepayment speeds on higher rates.•$1.6 billion of net losses on liabilities, predominantly driven by losses in long-term debt due to market movements.2023•$1.8 billion of net gains on assets, largely driven by gains in net interest rate derivative receivables due to market movements and gains in MSRs reflecting lower prepayment speeds on higher rates. •$3.3 billion of net losses on liabilities, predominantly driven by losses in long-term debt due to market movements.2022•$7.7 billion of net gains on assets, predominantly driven by gains in net equity derivative receivables due to market movements and gains in MSRs reflecting lower prepayment speeds on higher rates. •$4.6 billion of net gains on liabilities, predominantly driven by a decline in the fair value of long-term debt due to market movements.Refer to Note 15 for information on MSRs. •$831 million of non-trading loans driven by an increase in observability. •$1.0 billion of long-term debt driven by an increase in observability and a decrease in the significance of unobservable inputs for structured notes. All transfers are based on changes in the observability and/or significance of the valuation inputs and are assumed to occur at the beginning of the quarterly reporting period in which they occur. Gains and losses The following describes significant components of total realized/unrealized gains/(losses) for instruments measured at fair value on a recurring basis for the years ended December 31, 2024, 2023 and 2022. These amounts exclude any effects of the Firm's risk management activities where the financial instruments are classified as level 1 and 2 of the fair value hierarchy. Refer to Changes in level 3 recurring fair value measurements rollforward tables on pages 192-196 for further information on these instruments. 2024 •$1.9 billion of net gains on assets, predominantly driven by gains in net interest rate derivative receivables due to market movements and gains in MSRs reflecting lower prepayment speeds on higher rates. •$1.6 billion of net losses on liabilities, predominantly driven by losses in long-term debt due to market movements. 2023 •$1.8 billion of net gains on assets, largely driven by gains in net interest rate derivative receivables due to market movements and gains in MSRs reflecting lower prepayment speeds on higher rates. •$3.3 billion of net losses on liabilities, predominantly driven by losses in long-term debt due to market movements. 2022 •$7.7 billion of net gains on assets, predominantly driven by gains in net equity derivative receivables due to market movements and gains in MSRs reflecting lower prepayment speeds on higher rates. •$4.6 billion of net gains on liabilities, predominantly driven by a decline in the fair value of long-term debt due to market movements. Refer to Note 15 for information on MSRs. JPMorgan Chase & Co./2024 Form 10-K197 JPMorgan Chase & Co./2024 Form 10-K197 JPMorgan Chase & Co./2024 Form 10-K197 JPMorgan Chase & Co./2024 Form 10-K 197 **Current (2026):** During the year ended December 31, 2025, significant transfers from level 2 into level 3 included the following: •$1.2 billion of total debt and equity instruments, predominantly trading loans and equity securities, driven by a decrease in observability. •$904 million of gross interest rate derivative payables as a result of a decrease in observability and an increase in the significance of unobservable inputs. •$1.6 billion of both gross equity derivative receivables and payables as a result of a decrease in observability and an increase in the significance of unobservable inputs. •$1.3 billion of non-trading loans driven by a decrease in observability. During the year ended December 31, 2025, significant transfers from level 3 into level 2 included the following: •$1.3 billion of total debt and equity instruments, predominantly trading loans, driven by an increase in observability.•$1.3 billion of gross interest rate derivative receivables and $1.2 billion of gross interest rate derivative payables as a result of an increase in observability and a decrease in the significance of unobservable inputs.•$2.1 billion of gross equity derivative receivables and $2.7 billion of gross equity derivative payables as a result of an increase in observability and a decrease in the significance of unobservable inputs.•$2.9 billion of long-term debt as a result of an increase in observability and a decrease in the significance of unobservable inputs.During the year ended December 31, 2024, significant transfers from level 2 into level 3 included the following:•$1.0 billion of total debt and equity instruments, predominantly trading loans, driven by a decrease in observability.•$959 million of gross interest rate derivative receivables and $1.1 billion of gross interest rate derivative payables as a result of a decrease in observability and an increase in the significance of unobservable inputs.•$1.6 billion of gross equity derivative receivables and $1.7 billion of gross equity derivative payables as a result of a decrease in observability and an increase in the significance of unobservable inputs.•$816 million of non-trading loans driven by a decrease in observability. •$1.3 billion of total debt and equity instruments, predominantly trading loans, driven by an increase in observability. •$1.3 billion of gross interest rate derivative receivables and $1.2 billion of gross interest rate derivative payables as a result of an increase in observability and a decrease in the significance of unobservable inputs. •$2.1 billion of gross equity derivative receivables and $2.7 billion of gross equity derivative payables as a result of an increase in observability and a decrease in the significance of unobservable inputs. •$2.9 billion of long-term debt as a result of an increase in observability and a decrease in the significance of unobservable inputs. During the year ended December 31, 2024, significant transfers from level 2 into level 3 included the following: •$1.0 billion of total debt and equity instruments, predominantly trading loans, driven by a decrease in observability. •$959 million of gross interest rate derivative receivables and $1.1 billion of gross interest rate derivative payables as a result of a decrease in observability and an increase in the significance of unobservable inputs. •$1.6 billion of gross equity derivative receivables and $1.7 billion of gross equity derivative payables as a result of a decrease in observability and an increase in the significance of unobservable inputs. •$816 million of non-trading loans driven by a decrease in observability. JPMorgan Chase & Co./2025 Form 10-K189 JPMorgan Chase & Co./2025 Form 10-K189 JPMorgan Chase & Co./2025 Form 10-K189 JPMorgan Chase & Co./2025 Form 10-K 189 --- ## Modified Risk: Liquidity sources **Key changes:** - Updated: "The fair value of these securities was approximately $548 billion and $594 billion as of December 31, 2025 and 2024, respectively, although the amount of liquidity that could be raised at any particular time would be dependent on prevailing market conditions." - Updated: "Available borrowing capacity increased, compared to December 31, 2024, due to a higher amount of commercial loans, credit card receivables, and mortgages pledged at Federal Reserve Banks and the FHLBs." - Updated: "For the three months ended December 31, 2025, both the Firm and JPMorgan Chase Bank, N.A." - Updated: "For the three months ended December 31, 2025, both the Firm and JPMorgan Chase Bank, N.A." - Updated: "102JPMorgan Chase & Co./2025 Form 10-K 102JPMorgan Chase & Co./2025 Form 10-K 102JPMorgan Chase & Co./2025 Form 10-K 102 JPMorgan Chase & Co./2025 Form 10-K Funding" **Prior (2025):** In addition to the assets reported in the Firm's eligible HQLA discussed above, the Firm had unencumbered marketable securities, such as equity and debt securities, that the Firm believes would be available to raise liquidity. This includes excess eligible HQLA securities at JPMorgan Chase Bank, N.A. that are not transferable to non-bank affiliates. The fair value of these securities was approximately $594 billion and $649 billion as of December 31, 2024 and 2023, respectively, although the amount of liquidity that could be raised at any particular time would be dependent on prevailing market conditions. The decrease compared to December 31, 2023, was driven by reductions in unencumbered AFS securities in Treasury and CIO, excess eligible HQLA securities at JPMorgan Chase Bank, N.A., and unencumbered CIB trading assets. The Firm had approximately $1.4 trillion of available cash and securities as of both December 31, 2024 and 2023. For each respective period, the amount was comprised of eligible end-of-period HQLA, excluding the impact of regulatory haircuts, of approximately $834 billion and $798 billion, and unencumbered marketable securities with a fair value of approximately $594 billion and $649 billion. The Firm also had available borrowing capacity at the Federal Home Loan Banks ("FHLBs") and the discount window at the Federal Reserve Banks as a result of collateral pledged by the Firm to such banks of approximately $413 billion and $340 billion as of December 31, 2024 and 2023, respectively. This borrowing capacity excludes the benefit of cash and securities reported in the Firm's eligible HQLA or other unencumbered securities that are currently pledged at the Federal Reserve Banks discount window and other central banks. Available borrowing capacity increased from December 31, 2023 primarily due to a higher amount of commercial loans and credit card receivables pledged at the Federal Reserve Banks. Although available, the Firm does not view this borrowing capacity at the Federal Reserve Banks discount window and the other central banks as a primary source of liquidity. NSFRThe net stable funding ratio ("NSFR") is a liquidity requirement for large banking organizations that is intended to measure the adequacy of "available" stable funding that is sufficient to meet their "required" amounts of stable funding over a one-year horizon. For the three months ended December 31, 2024, both the Firm and JPMorgan Chase Bank, N.A. were compliant with the 100% minimum NSFR requirement, based on the Firm's interpretation of the final NSFR rule. Refer to the Firm's U.S. NSFR Disclosure report on the Firm's website for additional information. NSFR The net stable funding ratio ("NSFR") is a liquidity requirement for large banking organizations that is intended to measure the adequacy of "available" stable funding that is sufficient to meet their "required" amounts of stable funding over a one-year horizon. For the three months ended December 31, 2024, both the Firm and JPMorgan Chase Bank, N.A. were compliant with the 100% minimum NSFR requirement, based on the Firm's interpretation of the final NSFR rule. Refer to the Firm's U.S. NSFR Disclosure report on the Firm's website for additional information. 110JPMorgan Chase & Co./2024 Form 10-K 110JPMorgan Chase & Co./2024 Form 10-K 110JPMorgan Chase & Co./2024 Form 10-K 110 JPMorgan Chase & Co./2024 Form 10-K Funding **Current (2026):** In addition to the assets reported in the Firm's eligible HQLA discussed above, the Firm had unencumbered marketable securities, such as equity and debt securities, that the Firm believes would be available to raise liquidity. This includes excess eligible HQLA securities at JPMorgan Chase Bank, N.A. that are not transferable to non-bank affiliates. The fair value of these securities was approximately $548 billion and $594 billion as of December 31, 2025 and 2024, respectively, although the amount of liquidity that could be raised at any particular time would be dependent on prevailing market conditions. The decrease compared to December 31, 2024 was driven by a decrease in excess eligible HQLA securities at JPMorgan Chase Bank, N.A., and reductions in unencumbered investment securities in Treasury and CIO. The Firm had approximately $1.5 trillion and $1.4 trillion of available cash and securities as of December 31, 2025 and 2024, respectively. For each respective period, the amount was comprised of eligible end-of-period HQLA, excluding the impact of regulatory haircuts, of approximately $915 billion and $834 billion, and unencumbered marketable securities with a fair value of approximately $548 billion and $594 billion. The Firm also had available borrowing capacity at the Federal Home Loan Banks ("FHLBs") and the discount window at the Federal Reserve Banks as a result of collateral pledged by the Firm to such banks of approximately $449 billion and $413 billion as of December 31, 2025 and 2024, respectively. This borrowing capacity excludes the benefit of cash and securities reported in the Firm's eligible HQLA or other unencumbered securities that are currently pledged at the Federal Reserve Banks discount window and other central banks. Available borrowing capacity increased, compared to December 31, 2024, due to a higher amount of commercial loans, credit card receivables, and mortgages pledged at Federal Reserve Banks and the FHLBs. Although available, the Firm does not view this borrowing capacity at the Federal Reserve Banks discount window and the other central banks as a primary source of liquidity. NSFRThe net stable funding ratio ("NSFR") is a liquidity requirement for large banking organizations that is intended to measure the adequacy of "available" stable funding that is sufficient to meet their "required" amounts of stable funding over a one-year horizon. For the three months ended December 31, 2025, both the Firm and JPMorgan Chase Bank, N.A. were compliant with the 100% minimum NSFR requirement, based on the Firm's interpretation of the final NSFR rule. Refer to the Firm's U.S. NSFR Disclosure report on the Firm's website for additional information. NSFR The net stable funding ratio ("NSFR") is a liquidity requirement for large banking organizations that is intended to measure the adequacy of "available" stable funding that is sufficient to meet their "required" amounts of stable funding over a one-year horizon. For the three months ended December 31, 2025, both the Firm and JPMorgan Chase Bank, N.A. were compliant with the 100% minimum NSFR requirement, based on the Firm's interpretation of the final NSFR rule. Refer to the Firm's U.S. NSFR Disclosure report on the Firm's website for additional information. 102JPMorgan Chase & Co./2025 Form 10-K 102JPMorgan Chase & Co./2025 Form 10-K 102JPMorgan Chase & Co./2025 Form 10-K 102 JPMorgan Chase & Co./2025 Form 10-K Funding --- ## Modified Risk: All other performing loans(b) **Key changes:** - Updated: "(b)There were no performing loans that were ninety days or more past due as of December 31, 2025 and 2024." - Updated: "At December 31, 2025 and 2024, the contractual amount of lending-related commitments for which the fair value option was elected was $18.9 billion and $12.2 billion, respectively, with a corresponding fair value of $42 million and $50 million, respectively." - Updated: "198JPMorgan Chase & Co./2025 Form 10-K 198JPMorgan Chase & Co./2025 Form 10-K 198JPMorgan Chase & Co./2025 Form 10-K 198 JPMorgan Chase & Co./2025 Form 10-K" **Prior (2025):** Loans(c) (e) (e) Nonprincipal-protected debt(d) Nonprincipal-protected debt(d) (a)These balances are excluded from nonaccrual loans as the loans are insured and/or guaranteed by U.S. government agencies. (b)There were no performing loans that were ninety days or more past due as of December 31, 2024 and 2023. (c)Includes loans insured and/or guaranteed by U.S. government agencies less than 90 days past due. (d)Remaining contractual principal is not applicable to nonprincipal-protected structured notes and long-term beneficial interests. Unlike principal-protected structured notes and long-term beneficial interests, for which the Firm is obligated to return a stated amount of principal at maturity, nonprincipal-protected structured notes and long-term beneficial interests do not obligate the Firm to return a stated amount of principal at maturity, but for structured notes to return an amount based on the performance of an underlying variable or derivative feature embedded in the note. However, investors are exposed to the credit risk of the Firm as issuer for both nonprincipal-protected and principal-protected notes. (e)Where the Firm issues principal-protected zero-coupon or discount notes, the balance reflects the contractual principal payment at maturity or, if applicable, the contractual principal payment at the Firm's next call date. At December 31, 2024 and 2023, the contractual amount of lending-related commitments for which the fair value option was elected was $12.2 billion and $9.7 billion, respectively, with a corresponding fair value of $50 million and $97 million, respectively. Refer to Note 28 for further information regarding off-balance sheet lending-related financial instruments. JPMorgan Chase & Co./2024 Form 10-K205 JPMorgan Chase & Co./2024 Form 10-K205 JPMorgan Chase & Co./2024 Form 10-K205 JPMorgan Chase & Co./2024 Form 10-K 205 **Current (2026):** Loans(c) (e) (e) Nonprincipal-protected debt(d) Nonprincipal-protected debt(d) (a)These balances are excluded from nonaccrual loans as the loans are insured and/or guaranteed by U.S. government agencies. (b)There were no performing loans that were ninety days or more past due as of December 31, 2025 and 2024. (c)Includes loans insured and/or guaranteed by U.S. government agencies less than 90 days past due. (d)Remaining contractual principal is not applicable to nonprincipal-protected structured notes and long-term beneficial interests. Unlike principal-protected structured notes and long-term beneficial interests, for which the Firm is obligated to return a stated amount of principal at maturity, nonprincipal-protected structured notes and long-term beneficial interests do not obligate the Firm to return a stated amount of principal at maturity, but for structured notes to return an amount based on the performance of an underlying variable or derivative feature embedded in the note. However, investors are exposed to the credit risk of the Firm as issuer for both nonprincipal-protected and principal-protected notes. (e)Where the Firm issues principal-protected zero-coupon or discount notes, the balance reflects the contractual principal payment at maturity or, if applicable, the contractual principal payment at the Firm's next call date. At December 31, 2025 and 2024, the contractual amount of lending-related commitments for which the fair value option was elected was $18.9 billion and $12.2 billion, respectively, with a corresponding fair value of $42 million and $50 million, respectively. Refer to Note 28 for further information regarding off-balance sheet lending-related financial instruments. 198JPMorgan Chase & Co./2025 Form 10-K 198JPMorgan Chase & Co./2025 Form 10-K 198JPMorgan Chase & Co./2025 Form 10-K 198 JPMorgan Chase & Co./2025 Form 10-K --- ## Modified Risk: Note 29 - Pledged assets and collateral **Key changes:** - Updated: "Certain of these pledged assets may be sold or repledged or otherwise used by the secured parties and are parenthetically identified on the Consolidated balance sheets as assets pledged.The following table presents the carrying value of the Firm's pledged assets.December 31, (in billions)20252024Assets that may be sold or repledged or otherwise used by secured parties$185.6 $152.5 Assets that may not be sold or repledged or otherwise used by secured parties410.9 297.9 Assets pledged at Federal Reserve banks and FHLBs737.1 724.0 Total pledged assets$1,333.6 $1,174.4 Total pledged assets do not include assets of consolidated VIEs; these assets are used to settle the liabilities of those entities." - Updated: "The significant components of the Firm's pledged assets were as follows.December 31, (in billions)20252024Investment securities$82.7 $89.6 Loans763.8 740.9 Trading assets and other487.1 343.9 Total pledged assets$1,333.6 $1,174.4 Collateral The Firm accepts financial assets as collateral that it is permitted to sell or repledge, deliver or otherwise use." - Updated: "December 31, (in billions)20252024Collateral permitted to be sold or repledged, delivered, or otherwise used$1,771.0 $1,544.0 Collateral sold, repledged, delivered or otherwise used1,426.4 1,210.7 Pledged assets The Firm pledges financial assets that it owns to maintain potential borrowing capacity at discount windows with Federal Reserve banks, various other central banks and FHLBs." - Updated: "Certain of these pledged assets may be sold or repledged or otherwise used by the secured parties and are parenthetically identified on the Consolidated balance sheets as assets pledged.The following table presents the carrying value of the Firm's pledged assets.December 31, (in billions)20252024Assets that may be sold or repledged or otherwise used by secured parties$185.6 $152.5 Assets that may not be sold or repledged or otherwise used by secured parties410.9 297.9 Assets pledged at Federal Reserve banks and FHLBs737.1 724.0 Total pledged assets$1,333.6 $1,174.4 Total pledged assets do not include assets of consolidated VIEs; these assets are used to settle the liabilities of those entities." - Updated: "The significant components of the Firm's pledged assets were as follows.December 31, (in billions)20252024Investment securities$82.7 $89.6 Loans763.8 740.9 Trading assets and other487.1 343.9 Total pledged assets$1,333.6 $1,174.4" **Prior (2025):** Pledged assets The Firm pledges financial assets that it owns to maintain potential borrowing capacity at discount windows with Federal Reserve banks, various other central banks and FHLBs. Additionally, the Firm pledges assets for other purposes, including to collateralize repurchase and other securities financing agreements, to cover short sales and to collateralize derivative contracts and deposits. Certain of these pledged assets may be sold or repledged or otherwise used by the secured parties and are parenthetically identified on the Consolidated balance sheets as assets pledged.The following table presents the carrying value of the Firm's pledged assets.December 31, (in billions)20242023Assets that may be sold or repledged or otherwise used by secured parties$152.5 $145.0 Assets that may not be sold or repledged or otherwise used by secured parties297.9 244.2 Assets pledged at Federal Reserve banks and FHLBs724.0 675.6 Total pledged assets$1,174.4 $1,064.8 Total pledged assets do not include assets of consolidated VIEs; these assets are used to settle the liabilities of those entities. Refer to Note 14 for additional information on assets and liabilities of consolidated VIEs. Refer to Note 11 for additional information on the Firm's securities financing activities. Refer to Note 20 for additional information on the Firm's long-term debt. The significant components of the Firm's pledged assets were as follows.December 31, (in billions)20242023Investment securities$89.6 $108.6 Loans740.9 681.7 Trading assets and other343.9 274.5 Total pledged assets$1,174.4 $1,064.8 Collateral The Firm accepts financial assets as collateral that it is permitted to sell or repledge, deliver or otherwise use. This collateral is generally obtained under resale and other securities financing agreements, prime brokerage-related held-for-investment customer receivables and derivative contracts. Collateral is generally used under repurchase and other securities financing agreements, to cover short sales, and to collateralize derivative contracts and deposits. The following table presents the fair value of collateral accepted. December 31, (in billions)20242023Collateral permitted to be sold or repledged, delivered, or otherwise used$1,544.0 $1,303.9 Collateral sold, repledged, delivered or otherwise used1,210.7 982.8 Pledged assets The Firm pledges financial assets that it owns to maintain potential borrowing capacity at discount windows with Federal Reserve banks, various other central banks and FHLBs. Additionally, the Firm pledges assets for other purposes, including to collateralize repurchase and other securities financing agreements, to cover short sales and to collateralize derivative contracts and deposits. Certain of these pledged assets may be sold or repledged or otherwise used by the secured parties and are parenthetically identified on the Consolidated balance sheets as assets pledged.The following table presents the carrying value of the Firm's pledged assets.December 31, (in billions)20242023Assets that may be sold or repledged or otherwise used by secured parties$152.5 $145.0 Assets that may not be sold or repledged or otherwise used by secured parties297.9 244.2 Assets pledged at Federal Reserve banks and FHLBs724.0 675.6 Total pledged assets$1,174.4 $1,064.8 Total pledged assets do not include assets of consolidated VIEs; these assets are used to settle the liabilities of those entities. Refer to Note 14 for additional information on assets and liabilities of consolidated VIEs. Refer to Note 11 for additional information on the Firm's securities financing activities. Refer to Note 20 for additional information on the Firm's long-term debt. The significant components of the Firm's pledged assets were as follows.December 31, (in billions)20242023Investment securities$89.6 $108.6 Loans740.9 681.7 Trading assets and other343.9 274.5 Total pledged assets$1,174.4 $1,064.8 **Current (2026):** Pledged assets The Firm pledges financial assets that it owns to maintain potential borrowing capacity at discount windows with Federal Reserve banks, various other central banks and FHLBs. Additionally, the Firm pledges assets for other purposes, including to collateralize repurchase and other securities financing agreements, to cover short sales and to collateralize derivative contracts and deposits. Certain of these pledged assets may be sold or repledged or otherwise used by the secured parties and are parenthetically identified on the Consolidated balance sheets as assets pledged.The following table presents the carrying value of the Firm's pledged assets.December 31, (in billions)20252024Assets that may be sold or repledged or otherwise used by secured parties$185.6 $152.5 Assets that may not be sold or repledged or otherwise used by secured parties410.9 297.9 Assets pledged at Federal Reserve banks and FHLBs737.1 724.0 Total pledged assets$1,333.6 $1,174.4 Total pledged assets do not include assets of consolidated VIEs; these assets are used to settle the liabilities of those entities. Refer to Note 14 for additional information on assets and liabilities of consolidated VIEs. Refer to Note 11 for additional information on the Firm's securities financing activities. Refer to Note 20 for additional information on the Firm's long-term debt. The significant components of the Firm's pledged assets were as follows.December 31, (in billions)20252024Investment securities$82.7 $89.6 Loans763.8 740.9 Trading assets and other487.1 343.9 Total pledged assets$1,333.6 $1,174.4 Collateral The Firm accepts financial assets as collateral that it is permitted to sell or repledge, deliver or otherwise use. This collateral is generally obtained under resale and other securities financing agreements, prime brokerage-related held-for-investment customer receivables and derivative contracts. Collateral is generally used under repurchase and other securities financing agreements, to cover short sales, and to collateralize derivative contracts and deposits. The following table presents the fair value of collateral accepted. December 31, (in billions)20252024Collateral permitted to be sold or repledged, delivered, or otherwise used$1,771.0 $1,544.0 Collateral sold, repledged, delivered or otherwise used1,426.4 1,210.7 Pledged assets The Firm pledges financial assets that it owns to maintain potential borrowing capacity at discount windows with Federal Reserve banks, various other central banks and FHLBs. Additionally, the Firm pledges assets for other purposes, including to collateralize repurchase and other securities financing agreements, to cover short sales and to collateralize derivative contracts and deposits. Certain of these pledged assets may be sold or repledged or otherwise used by the secured parties and are parenthetically identified on the Consolidated balance sheets as assets pledged.The following table presents the carrying value of the Firm's pledged assets.December 31, (in billions)20252024Assets that may be sold or repledged or otherwise used by secured parties$185.6 $152.5 Assets that may not be sold or repledged or otherwise used by secured parties410.9 297.9 Assets pledged at Federal Reserve banks and FHLBs737.1 724.0 Total pledged assets$1,333.6 $1,174.4 Total pledged assets do not include assets of consolidated VIEs; these assets are used to settle the liabilities of those entities. Refer to Note 14 for additional information on assets and liabilities of consolidated VIEs. Refer to Note 11 for additional information on the Firm's securities financing activities. Refer to Note 20 for additional information on the Firm's long-term debt. The significant components of the Firm's pledged assets were as follows.December 31, (in billions)20252024Investment securities$82.7 $89.6 Loans763.8 740.9 Trading assets and other487.1 343.9 Total pledged assets$1,333.6 $1,174.4 --- ## Modified Risk: Transfers of securities to VIEs **Key changes:** - Updated: "The Firm did not transfer any private label securities to re-securitization VIEs during 2025, 2024 and 2023, and retained interests in any such Firm-sponsored VIEs as of December 31, 2025 and 2024 were not material." - Updated: "JPMorgan Chase & Co./2025 Form 10-K265 JPMorgan Chase & Co./2025 Form 10-K265 JPMorgan Chase & Co./2025 Form 10-K265 JPMorgan Chase & Co./2025 Form 10-K 265" **Prior (2025):** Most re-securitizations with which the Firm is involved are client-driven transactions in which a specific client or group of clients is seeking a specific return or risk profile. For these transactions, the Firm has concluded that the decision-making power of the entity is shared between the Firm and its clients, considering the joint effort and decisions in establishing the re-securitization trust and its assets, as well as the significant economic interest the client holds in the re-securitization trust; therefore the Firm does not consolidate the re-securitization VIE. The Firm did not transfer any private label securities to re-securitization VIEs during 2024, 2023 and 2022, and retained interests in any such Firm-sponsored VIEs as of December 31, 2024 and 2023 were not material. Additionally, the Firm may invest in beneficial interests of third-party-sponsored re-securitizations and generally purchases these interests in the secondary market. In these circumstances, the Firm does not have the unilateral ability to direct the most significant activities of the re-securitization trust, either because it was not involved in the initial design of the trust, or the Firm was involved with an independent third-party sponsor and demonstrated shared power over the creation of the trust; therefore, the Firm does not consolidate the re-securitization VIE. JPMorgan Chase & Co./2024 Form 10-K273 JPMorgan Chase & Co./2024 Form 10-K273 JPMorgan Chase & Co./2024 Form 10-K273 JPMorgan Chase & Co./2024 Form 10-K 273 **Current (2026):** Most re-securitizations with which the Firm is involved are client-driven transactions in which a specific client or group of clients is seeking a specific return or risk profile. For these transactions, the Firm has concluded that the decision-making power of the entity is shared between the Firm and its clients, considering the joint effort and decisions in establishing the re-securitization trust and its assets, as well as the significant economic interest the client holds in the re-securitization trust; therefore the Firm does not consolidate the re-securitization VIE. The Firm did not transfer any private label securities to re-securitization VIEs during 2025, 2024 and 2023, and retained interests in any such Firm-sponsored VIEs as of December 31, 2025 and 2024 were not material. Additionally, the Firm may invest in beneficial interests of third-party-sponsored re-securitizations and generally purchases these interests in the secondary market. In these circumstances, the Firm does not have the unilateral ability to direct the most significant activities of the re-securitization trust, either because it was not involved in the initial design of the trust, or the Firm was involved with an independent third-party sponsor and demonstrated shared power over the creation of the trust; therefore, the Firm does not consolidate the re-securitization VIE. JPMorgan Chase & Co./2025 Form 10-K265 JPMorgan Chase & Co./2025 Form 10-K265 JPMorgan Chase & Co./2025 Form 10-K265 JPMorgan Chase & Co./2025 Form 10-K 265 --- ## Modified Risk: Compensation expense **Key changes:** - Updated: "Year ended December 31, (in millions)202520242023Cost of prior grants of RSUs, PSUs and SARs that are amortized over their applicable vesting periods$1,541 $1,622 $1,510 Accrual of estimated costs of share-based awards to be granted in future periods, predominantly those to full-career eligible employees2,073 1,882 1,607 Total noncash compensation expense related to employee share-based incentive plans$3,614 $3,504 $3,117 Cost of prior grants of RSUs, PSUs and SARs that are amortized over their applicable vesting periods" **Prior (2025):** The Firm recognized the following noncash compensation expense related to its various employee share-based incentive plans in its Consolidated statements of income. Year ended December 31, (in millions)202420232022Cost of prior grants of RSUs, PSUs and SARs that are amortized over their applicable vesting periods$1,622 $1,510 $1,253 Accrual of estimated costs of share-based awards to be granted in future periods, predominantly those to full-career eligible employees1,882 1,607 1,541 Total noncash compensation expense related to employee share-based incentive plans$3,504 $3,117 $2,794 Cost of prior grants of RSUs, PSUs and SARs that are amortized over their applicable vesting periods **Current (2026):** The Firm recognized the following noncash compensation expense related to its various employee share-based incentive plans in its Consolidated statements of income. Year ended December 31, (in millions)202520242023Cost of prior grants of RSUs, PSUs and SARs that are amortized over their applicable vesting periods$1,541 $1,622 $1,510 Accrual of estimated costs of share-based awards to be granted in future periods, predominantly those to full-career eligible employees2,073 1,882 1,607 Total noncash compensation expense related to employee share-based incentive plans$3,614 $3,504 $3,117 Cost of prior grants of RSUs, PSUs and SARs that are amortized over their applicable vesting periods --- ## Modified Risk: Firm as lessee **Key changes:** - Updated: "At December 31, 2025 JPMorganChase and its subsidiaries were obligated under a number of noncancellable leases, predominantly operating leases for premises and equipment used primarily for business purposes." - Updated: "The carrying values of the Firm's operating leases were as follows: December 31,(in millions, except where otherwise noted)20252024Right-of-use assets$8,901$8,494Lease liabilities9,3378,900Weighted average remaining lease term (in years)8.28.3Weighted average discount rate4.43 %4.24 %Year ended December 31, (in millions)202520242023Supplemental cash flow informationCash paid for amounts included in the measurement of lease liabilities - operating cash flows$1,759$1,734$1,662Supplemental non-cash informationRight-of-use assets obtained in exchange for operating lease obligations$1,834$1,565$2,094 Year ended December 31, (in millions)202520242023Rental expenseGross rental expense$2,388 $2,231 $2,079 Sublease rental income(28)(41)(72)Net rental expense$2,360 $2,190 $2,007 The following table presents future payments under operating leases as of December 31, 2025.Year ended December 31, (in millions)2026$1,767 20271,699 20281,539 20291,322 20301,094 After 20303,834 Total future minimum lease payments11,255 Less: Imputed interest(1,918)Total$9,337 In addition to the table above, as of December 31, 2025, the Firm had additional future operating lease commitments of $1.9 billion that were signed but had not yet commenced." - Updated: "December 31,(in millions)20252024Carrying value of assets subject to operating leases, net of accumulated depreciation$20,130 $12,988 Accumulated depreciation3,177 2,509 The following table presents the Firm's operating lease income and the related depreciation expense on the Consolidated statements of income." - Updated: "December 31,(in millions)20252024Carrying value of assets subject to operating leases, net of accumulated depreciation$20,130 $12,988 Accumulated depreciation3,177 2,509 The following table presents the Firm's operating lease income and the related depreciation expense on the Consolidated statements of income." **Prior (2025):** At December 31, 2024, JPMorganChase and its subsidiaries were obligated under a number of noncancellable leases, predominantly operating leases for premises and equipment used primarily for business purposes. These leases generally have terms of 20 years or less, determined based on the contractual maturity of the lease, and include periods covered by options to extend or terminate the lease when the Firm is reasonably certain that it will exercise those options. All leases with lease terms greater than twelve months are reported as a lease liability with a corresponding right-of-use ("ROU") asset. None of these lease agreements impose restrictions on the Firm's ability to pay dividends, engage in debt or equity financing transactions or enter into further lease agreements. Certain of these leases contain escalation clauses that will increase rental payments based on maintenance, utility and tax increases, which are non-lease components. The Firm elected not to separate lease and non-lease components of a contract for its real estate leases. As such, real estate lease payments represent payments on both lease and non-lease components. Operating lease liabilities and ROU assets are recognized at the lease commencement date based on the present value of the future minimum lease payments over the lease term. The future lease payments are discounted at a rate that estimates the Firm's collateralized borrowing rate for financing instruments of a similar term and are included in accounts payable and other liabilities. The operating lease ROU assets, predominantly included in premises and equipment, also include any lease prepayments made, plus initial direct costs incurred, less any lease incentives received. Rental expense associated with operating leases is recognized on a straight-line basis over the lease term, and generally included in occupancy expense in the Consolidated statements of income. The carrying values of the Firm's operating leases were as follows: December 31,(in millions, except where otherwise noted)20242023Right-of-use assets$8,494$8,431Lease liabilities8,9008,833Weighted average remaining lease term (in years)8.38.4Weighted average discount rate4.24 %4.01 %Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities - operating cash flows$1,734$1,662Supplemental non-cash information Right-of-use assets obtained in exchange for operating lease obligations$1,565$2,094Year ended December 31, (in millions)20242023Rental expenseGross rental expense$2,231 $2,079 Sublease rental income(41)(72)Net rental expense$2,190 $2,007 The following table presents future payments under operating leases as of December 31, 2024.Year ended December 31, (in millions)20251,709 20261,553 20271,412 20281,248 20291,048 After 20293,721 Total future minimum lease payments10,691 Less: Imputed interest(1,791)Total$8,900 In addition to the table above, as of December 31, 2024, the Firm had additional future operating lease commitments of $887 million that were signed but had not yet commenced. These operating leases will commence between 2025 and 2027 with lease terms up to 21 years. The carrying values of the Firm's operating leases were as follows: December 31,(in millions, except where otherwise noted)20242023Right-of-use assets$8,494$8,431Lease liabilities8,9008,833Weighted average remaining lease term (in years)8.38.4Weighted average discount rate4.24 %4.01 %Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities - operating cash flows$1,734$1,662Supplemental non-cash information Right-of-use assets obtained in exchange for operating lease obligations$1,565$2,094 Right-of-use assets Right-of-use assets Lease liabilities Lease liabilities Year ended December 31, (in millions)20242023Rental expenseGross rental expense$2,231 $2,079 Sublease rental income(41)(72)Net rental expense$2,190 $2,007 The following table presents future payments under operating leases as of December 31, 2024. Year ended December 31, (in millions)20251,709 20261,553 20271,412 20281,248 20291,048 After 20293,721 Total future minimum lease payments10,691 Less: Imputed interest(1,791)Total$8,900 In addition to the table above, as of December 31, 2024, the Firm had additional future operating lease commitments of $887 million that were signed but had not yet commenced. These operating leases will commence between 2025 and 2027 with lease terms up to 21 years. 286JPMorgan Chase & Co./2024 Form 10-K 286JPMorgan Chase & Co./2024 Form 10-K 286JPMorgan Chase & Co./2024 Form 10-K 286 JPMorgan Chase & Co./2024 Form 10-K Firm as lessorThe Firm provides auto and equipment lease financing to its customers through lease arrangements with lease terms that may contain renewal, termination and/or purchase options. The Firm's lease financings are predominantly auto operating leases. These assets subject to operating leases are recognized in other assets on the Firm's Consolidated balance sheets and are depreciated on a straight-line basis over the lease term to reduce the asset to its estimated residual value. Depreciation expense is included in technology, communications and equipment expense in the Consolidated statements of income. The Firm's lease income is generally recognized on a straight-line basis over the lease term and is included in other income in the Consolidated statements of income. On a periodic basis, the Firm assesses leased assets for impairment, and if the carrying amount of the leased asset exceeds the undiscounted cash flows from the lease payments and the estimated residual value upon disposition of the leased asset, an impairment is recognized. The risk of loss on auto and equipment leased assets relating to the residual value of the leased assets is monitored through projections of the asset residual values at lease origination and periodic review of residual values, and is mitigated through arrangements with certain manufacturers or lessees. The following table presents the carrying value of assets subject to leases reported on the Consolidated balance sheets. December 31,(in millions)20242023Carrying value of assets subject to operating leases, net of accumulated depreciation$12,988 $10,663 Accumulated depreciation2,509 3,288 The following table presents the Firm's operating lease income and the related depreciation expense on the Consolidated statements of income. Year ended December 31, (in millions)202420232022Operating lease income$2,795 $2,843 $3,654 Depreciation expense1,685 1,778 2,475 The following table presents future receipts under operating leases as of December 31, 2024. Year ended December 31, (in millions)2025$2,381 20261,707 2027704 202847 20295 After 20294 Total future minimum lease receipts$4,848 Firm as lessorThe Firm provides auto and equipment lease financing to its customers through lease arrangements with lease terms that may contain renewal, termination and/or purchase options. The Firm's lease financings are predominantly auto operating leases. These assets subject to operating leases are recognized in other assets on the Firm's Consolidated balance sheets and are depreciated on a straight-line basis over the lease term to reduce the asset to its estimated residual value. Depreciation expense is included in technology, communications and equipment expense in the Consolidated statements of income. The Firm's lease income is generally recognized on a straight-line basis over the lease term and is included in other income in the Consolidated statements of income. On a periodic basis, the Firm assesses leased assets for impairment, and if the carrying amount of the leased asset exceeds the undiscounted cash flows from the lease payments and the estimated residual value upon disposition of the leased asset, an impairment is recognized. The risk of loss on auto and equipment leased assets relating to the residual value of the leased assets is monitored through projections of the asset residual values at lease origination and periodic review of residual values, and is mitigated through arrangements with certain manufacturers or lessees. The following table presents the carrying value of assets subject to leases reported on the Consolidated balance sheets. December 31,(in millions)20242023Carrying value of assets subject to operating leases, net of accumulated depreciation$12,988 $10,663 Accumulated depreciation2,509 3,288 The following table presents the Firm's operating lease income and the related depreciation expense on the Consolidated statements of income. Year ended December 31, (in millions)202420232022Operating lease income$2,795 $2,843 $3,654 Depreciation expense1,685 1,778 2,475 **Current (2026):** At December 31, 2025 JPMorganChase and its subsidiaries were obligated under a number of noncancellable leases, predominantly operating leases for premises and equipment used primarily for business purposes. These leases generally have terms of 20 years or less, determined based on the contractual maturity of the lease, and include periods covered by options to extend or terminate the lease when the Firm is reasonably certain that it will exercise those options. All leases with lease terms greater than twelve months are reported as a lease liability with a corresponding right-of-use ("ROU") asset. None of these lease agreements impose restrictions on the Firm's ability to pay dividends, engage in debt or equity financing transactions or enter into further lease agreements. Certain of these leases contain escalation clauses that will increase rental payments based on maintenance, utility and tax increases, which are non-lease components. The Firm elected not to separate lease and non-lease components of a contract for its real estate leases. As such, real estate lease payments represent payments on both lease and non-lease components. Operating lease liabilities and ROU assets are recognized at the lease commencement date based on the present value of the future minimum lease payments over the lease term. The future lease payments are discounted at a rate that estimates the Firm's collateralized borrowing rate for financing instruments of a similar term and are included in accounts payable and other liabilities. The operating lease ROU assets, predominantly included in premises and equipment, also include any lease prepayments made, plus initial direct costs incurred, less any lease incentives received. Rental expense associated with operating leases is recognized on a straight-line basis over the lease term, and generally included in occupancy expense in the Consolidated statements of income. The carrying values of the Firm's operating leases were as follows: December 31,(in millions, except where otherwise noted)20252024Right-of-use assets$8,901$8,494Lease liabilities9,3378,900Weighted average remaining lease term (in years)8.28.3Weighted average discount rate4.43 %4.24 %Year ended December 31, (in millions)202520242023Supplemental cash flow informationCash paid for amounts included in the measurement of lease liabilities - operating cash flows$1,759$1,734$1,662Supplemental non-cash informationRight-of-use assets obtained in exchange for operating lease obligations$1,834$1,565$2,094 Year ended December 31, (in millions)202520242023Rental expenseGross rental expense$2,388 $2,231 $2,079 Sublease rental income(28)(41)(72)Net rental expense$2,360 $2,190 $2,007 The following table presents future payments under operating leases as of December 31, 2025.Year ended December 31, (in millions)2026$1,767 20271,699 20281,539 20291,322 20301,094 After 20303,834 Total future minimum lease payments11,255 Less: Imputed interest(1,918)Total$9,337 In addition to the table above, as of December 31, 2025, the Firm had additional future operating lease commitments of $1.9 billion that were signed but had not yet commenced. These operating leases will commence between 2026 and 2029 with lease terms up to 21 years. The carrying values of the Firm's operating leases were as follows: December 31,(in millions, except where otherwise noted)20252024Right-of-use assets$8,901$8,494Lease liabilities9,3378,900Weighted average remaining lease term (in years)8.28.3Weighted average discount rate4.43 %4.24 % Right-of-use assets Right-of-use assets Lease liabilities Lease liabilities Year ended December 31, (in millions)202520242023Supplemental cash flow informationCash paid for amounts included in the measurement of lease liabilities - operating cash flows$1,759$1,734$1,662Supplemental non-cash informationRight-of-use assets obtained in exchange for operating lease obligations$1,834$1,565$2,094 Year ended December 31, (in millions)202520242023Rental expenseGross rental expense$2,388 $2,231 $2,079 Sublease rental income(28)(41)(72)Net rental expense$2,360 $2,190 $2,007 The following table presents future payments under operating leases as of December 31, 2025. Year ended December 31, (in millions)2026$1,767 20271,699 20281,539 20291,322 20301,094 After 20303,834 Total future minimum lease payments11,255 Less: Imputed interest(1,918)Total$9,337 In addition to the table above, as of December 31, 2025, the Firm had additional future operating lease commitments of $1.9 billion that were signed but had not yet commenced. These operating leases will commence between 2026 and 2029 with lease terms up to 21 years. 278JPMorgan Chase & Co./2025 Form 10-K 278JPMorgan Chase & Co./2025 Form 10-K 278JPMorgan Chase & Co./2025 Form 10-K 278 JPMorgan Chase & Co./2025 Form 10-K Firm as lessorThe Firm provides auto and equipment lease financing to its customers through lease arrangements with lease terms that may contain renewal, termination and/or purchase options. The Firm's lease financings are predominantly auto operating leases. These assets subject to operating leases are recognized in other assets on the Firm's Consolidated balance sheets and are depreciated on a straight-line basis over the lease term to reduce the asset to its estimated residual value. Depreciation expense is included in technology, communications and equipment expense in the Consolidated statements of income. The Firm's lease income is generally recognized on a straight-line basis over the lease term and is included in other income in the Consolidated statements of income. On a periodic basis, the Firm assesses leased assets for impairment, and if the carrying amount of the leased asset exceeds the undiscounted cash flows from the lease payments and the estimated residual value upon disposition of the leased asset, an impairment is recognized. The risk of loss on auto and equipment leased assets relating to the residual value of the leased assets is monitored through projections of the asset residual values at lease origination and periodic review of residual values, and is mitigated through arrangements with certain manufacturers or lessees. The following table presents the carrying value of assets subject to leases reported on the Consolidated balance sheets. December 31,(in millions)20252024Carrying value of assets subject to operating leases, net of accumulated depreciation$20,130 $12,988 Accumulated depreciation3,177 2,509 The following table presents the Firm's operating lease income and the related depreciation expense on the Consolidated statements of income. Year ended December 31, (in millions)202520242023Operating lease income$3,803 $2,795 $2,843 Depreciation expense2,418 1,685 1,778 The following table presents future receipts under operating leases as of December 31, 2025. Year ended December 31, (in millions)2026$3,637 20272,645 20281,023 202944 20304 After 2030 - Total future minimum lease receipts$7,353 Firm as lessorThe Firm provides auto and equipment lease financing to its customers through lease arrangements with lease terms that may contain renewal, termination and/or purchase options. The Firm's lease financings are predominantly auto operating leases. These assets subject to operating leases are recognized in other assets on the Firm's Consolidated balance sheets and are depreciated on a straight-line basis over the lease term to reduce the asset to its estimated residual value. Depreciation expense is included in technology, communications and equipment expense in the Consolidated statements of income. The Firm's lease income is generally recognized on a straight-line basis over the lease term and is included in other income in the Consolidated statements of income. On a periodic basis, the Firm assesses leased assets for impairment, and if the carrying amount of the leased asset exceeds the undiscounted cash flows from the lease payments and the estimated residual value upon disposition of the leased asset, an impairment is recognized. The risk of loss on auto and equipment leased assets relating to the residual value of the leased assets is monitored through projections of the asset residual values at lease origination and periodic review of residual values, and is mitigated through arrangements with certain manufacturers or lessees. The following table presents the carrying value of assets subject to leases reported on the Consolidated balance sheets. December 31,(in millions)20252024Carrying value of assets subject to operating leases, net of accumulated depreciation$20,130 $12,988 Accumulated depreciation3,177 2,509 The following table presents the Firm's operating lease income and the related depreciation expense on the Consolidated statements of income. Year ended December 31, (in millions)202520242023Operating lease income$3,803 $2,795 $2,843 Depreciation expense2,418 1,685 1,778 --- ## Modified Risk: Net interest income, net yield, and noninterest revenue excluding Markets **Key changes:** - Updated: "Year ended December 31, (in millions, except rates)202520242023Net interest income - reported(a)$95,443 $92,583 $89,267 Fully taxable-equivalent adjustments425 477 480 Net interest income - managed basis$95,868 $93,060 $89,747 Less: Markets net interest income(b)3,277 641 (294)Net interest income excluding Markets$92,591 $92,419 $90,041 Average interest-earning assets(a)$3,834,359 $3,537,567 $3,325,708 Less: Average Markets interest-earning assets(b)1,363,174 1,128,153 985,777 Average interest-earning assets excluding Markets$2,471,185 $2,409,414 $2,339,931 Net yield on average interest-earning assets - managed basis2.50 %2.63 %2.70 %Net yield on average Markets interest-earning assets(b)0.24 0.06 (0.03)Net yield on average interest-earning assets excluding Markets3.75 %3.84 %3.85 %" **Prior (2025):** In addition to reviewing net interest income, net yield, and noninterest revenue on a managed basis, management also reviews these metrics excluding Markets, as shown below. Markets consists of CIB's Fixed Income Markets and Equity Markets. These metrics, which exclude Markets, are non-GAAP financial measures. Management reviews these metrics to assess the performance of the Firm's lending, investing (including asset-liability management) and deposit-raising activities, apart from any volatility associated with Markets activities. In addition, management also assesses Markets business performance on a total revenue basis as offsets may occur across revenue lines. Management believes that these measures provide investors and analysts with alternative measures to analyze the revenue trends of the Firm. Year ended December 31, (in millions, except rates)202420232022Net interest income - reported(a)$92,583 $89,267 $66,710 Fully taxable-equivalent adjustments477 480 434 Net interest income - managed basis$93,060 $89,747 $67,144 Less: Markets net interest income(b)641 (294)4,789 Net interest income excluding Markets$92,419 $90,041 $62,355 Average interest-earning assets(a)$3,537,567 $3,325,708 $3,349,079 Less: Average Markets interest-earning assets(b)1,128,153 985,777 953,195 Average interest-earning assets excluding Markets$2,409,414 $2,339,931 $2,395,884 Net yield on average interest-earning assets - managed basis2.63 %2.70 %2.00 %Net yield on average Markets interest-earning assets(b)0.06 (0.03)0.50 Net yield on average interest-earning assets excluding Markets3.84 %3.85 %2.60 % **Current (2026):** In addition to reviewing net interest income, net yield, and noninterest revenue on a managed basis, management also reviews these metrics excluding Markets, as shown below. Markets consists of CIB's Fixed Income Markets and Equity Markets. These metrics, which exclude Markets, are non-GAAP financial measures. Management reviews these metrics to assess the performance of the Firm's lending, investing (including asset-liability management) and deposit-raising activities, apart from any volatility associated with Markets activities. In addition, management also assesses Markets business performance on a total revenue basis as offsets may occur across revenue lines. Management believes that these measures provide investors and analysts with alternative measures to analyze the revenue trends of the Firm. Year ended December 31, (in millions, except rates)202520242023Net interest income - reported(a)$95,443 $92,583 $89,267 Fully taxable-equivalent adjustments425 477 480 Net interest income - managed basis$95,868 $93,060 $89,747 Less: Markets net interest income(b)3,277 641 (294)Net interest income excluding Markets$92,591 $92,419 $90,041 Average interest-earning assets(a)$3,834,359 $3,537,567 $3,325,708 Less: Average Markets interest-earning assets(b)1,363,174 1,128,153 985,777 Average interest-earning assets excluding Markets$2,471,185 $2,409,414 $2,339,931 Net yield on average interest-earning assets - managed basis2.50 %2.63 %2.70 %Net yield on average Markets interest-earning assets(b)0.24 0.06 (0.03)Net yield on average interest-earning assets excluding Markets3.75 %3.84 %3.85 % --- ## Modified Risk: Notes to consolidated financial statements **Key changes:** - Updated: "Note 26 - Restricted cash, other restricted assets and intercompany funds transfers Restricted cash and other restricted assets Certain of the Firm's cash and other assets are restricted as to withdrawal or usage." - Updated: "The following table presents the components of the Firm's restricted cash: December 31, (in billions)20252024Segregated for the benefit of securities and cleared derivative customers$19.4 $18.7 Cash reserves at non-U.S." - Updated: "The IHC is prohibited from paying dividends or extending credit to the Parent Company if certain capital or liquidity "thresholds" are breached or if limits are otherwise imposed by the Parent Company's management or Board of Directors.At January 1, 2026, the Parent Company's principal banking subsidiary, JPMorgan Chase Bank, N.A., could pay approximately $30.1 billion in dividends to the Parent Company without the prior approval of its relevant banking regulators." - Updated: "The following table presents the components of the Firm's restricted cash: December 31, (in billions)20252024Segregated for the benefit of securities and cleared derivative customers$19.4 $18.7 Cash reserves at non-U.S." **Prior (2025):** JPMorganChase is continually under examination by the Internal Revenue Service, by taxing authorities throughout the world, and by many state and local jurisdictions throughout the U.S. The following table summarizes the status of tax years that remain subject to income tax examination of JPMorganChase and its consolidated subsidiaries by significant jurisdictions as of December 31, 2024. Periods under examinationStatusJPMorganChase - U.S.2011 - 2013Field examination of amended returns; certain matters at Appellate levelJPMorganChase - U.S.2014 - 2020Field examination of original and amended returns; certain matters at Appellate levelJPMorganChase - New York City2015 - 2018Field ExaminationJPMorganChase - U.K.2017 - 2022Field examination of certain select entities 2014 - 2020 2015 - 2018 2017 - 2022 298JPMorgan Chase & Co./2024 Form 10-K 298JPMorgan Chase & Co./2024 Form 10-K 298JPMorgan Chase & Co./2024 Form 10-K 298 JPMorgan Chase & Co./2024 Form 10-K Note 26 - Restricted cash, other restricted assets and intercompany funds transfers Restricted cash and other restricted assets Certain of the Firm's cash and other assets are restricted as to withdrawal or usage. These restrictions are imposed by various regulatory authorities based on the particular activities of the Firm's subsidiaries. The business of JPMorgan Chase Bank, N.A. is subject to examination and regulation by the OCC. The Bank is a member of the U.S. Federal Reserve System, and its deposits in the U.S. are insured by the FDIC, subject to applicable limits. The Firm is required to maintain cash reserves at certain non-US central banks. The Firm is also subject to rules and regulations established by other U.S. and non U.S. regulators. As part of its compliance with the respective regulatory requirements, the Firm's broker-dealer activities are subject to certain restrictions on cash and other assets. The following table presents the components of the Firm's restricted cash: December 31, (in billions)20242023Segregated for the benefit of securities and cleared derivative customers18.7 10.3 Cash reserves at non-U.S. central banks and held for other general purposes8.8 9.3 Total restricted cash(a)$27.5 $19.6 (a)Comprises $26.1 billion and $18.2 billion in deposits with banks, and $1.4 billion and $1.4 billion in cash and due from banks on the Consolidated balance sheets as of December 31, 2024 and 2023, respectively.Also, as of December 31, 2024 and 2023, the Firm had the following other restricted assets: •Cash and securities pledged with clearing organizations for the benefit of customers of $40.7 billion and $40.5 billion, respectively. •Securities with a fair value of $26.8 billion and $20.5 billion, respectively, were also restricted in relation to customer activity.Intercompany funds transfers Restrictions imposed by U.S. federal law prohibit JPMorgan Chase Bank, N.A., and its subsidiaries, from lending to JPMorgan Chase & Co. ("Parent Company") and certain of its affiliates unless the loans are secured in specified amounts. Such secured loans provided by any banking subsidiary to the Parent Company or to any particular affiliate, together with certain other transactions with such affiliate (collectively referred to as "covered transactions"), must be made on terms and conditions that are consistent with safe and sound banking practices. In addition, unless collateralized with cash or US Government debt obligations, covered transactions are generally limited to 10% of the banking subsidiary's total capital, as determined by the risk-based capital guidelines; the aggregate amount of covered transactions between any banking subsidiary and all of its affiliates is limited to 20% of the banking subsidiary's total capital.The Parent Company's two principal subsidiaries are JPMorgan Chase Bank, N.A. and JPMorgan Chase Holdings LLC, an intermediate holding company (the "IHC"). The IHC generally holds the stock of JPMorganChase's subsidiaries other than JPMorgan Chase Bank, N.A. and its subsidiaries. The IHC also owns other assets and provides intercompany loans to the Parent Company. The Parent Company is obligated to contribute to the IHC substantially all the net proceeds received from securities issuances (including issuances of senior and subordinated debt securities and of preferred and common stock).The principal sources of income and funding for the Parent Company are dividends from JPMorgan Chase Bank, N.A. and dividends and extensions of credit from the IHC. In addition to dividend restrictions set forth in statutes and regulations, the Federal Reserve, the OCC and the FDIC have authority under the Financial Institutions Supervisory Act to prohibit or to limit the payment of dividends by the banking organizations they supervise, including the Parent Company and its subsidiaries that are banks or bank holding companies, if, in the banking regulator's opinion, payment of a dividend would constitute an unsafe or unsound practice in light of the financial condition of the banking organization. The IHC is prohibited from paying dividends or extending credit to the Parent Company if certain capital or liquidity "thresholds" are breached or if limits are otherwise imposed by the Parent Company's management or Board of Directors.At January 1, 2025, the Parent Company's banking subsidiaries could pay, in the aggregate, approximately $15.5 billion in dividends to their respective bank holding companies without the prior approval of their relevant banking regulators. The capacity to pay dividends in 2025 will be supplemented by the banking subsidiaries' earnings during the year. Note 26 - Restricted cash, other restricted assets and intercompany funds transfers Restricted cash and other restricted assets Certain of the Firm's cash and other assets are restricted as to withdrawal or usage. These restrictions are imposed by various regulatory authorities based on the particular activities of the Firm's subsidiaries. The business of JPMorgan Chase Bank, N.A. is subject to examination and regulation by the OCC. The Bank is a member of the U.S. Federal Reserve System, and its deposits in the U.S. are insured by the FDIC, subject to applicable limits. The Firm is required to maintain cash reserves at certain non-US central banks. The Firm is also subject to rules and regulations established by other U.S. and non U.S. regulators. As part of its compliance with the respective regulatory requirements, the Firm's broker-dealer activities are subject to certain restrictions on cash and other assets. The following table presents the components of the Firm's restricted cash: December 31, (in billions)20242023Segregated for the benefit of securities and cleared derivative customers18.7 10.3 Cash reserves at non-U.S. central banks and held for other general purposes8.8 9.3 Total restricted cash(a)$27.5 $19.6 (a)Comprises $26.1 billion and $18.2 billion in deposits with banks, and $1.4 billion and $1.4 billion in cash and due from banks on the Consolidated balance sheets as of December 31, 2024 and 2023, respectively.Also, as of December 31, 2024 and 2023, the Firm had the following other restricted assets: •Cash and securities pledged with clearing organizations for the benefit of customers of $40.7 billion and $40.5 billion, respectively. •Securities with a fair value of $26.8 billion and $20.5 billion, respectively, were also restricted in relation to customer activity. **Current (2026):** Note 26 - Restricted cash, other restricted assets and intercompany funds transfers Restricted cash and other restricted assets Certain of the Firm's cash and other assets are restricted as to withdrawal or usage. These restrictions are imposed by various regulatory authorities based on the particular activities of the Firm's subsidiaries. The business of JPMorgan Chase Bank, N.A. is subject to examination and regulation by the OCC. The Bank is a member of the U.S. Federal Reserve System, and its deposits in the U.S. are insured by the FDIC, subject to applicable limits. The Firm is required to maintain cash reserves at certain non-US central banks. The Firm is also subject to rules and regulations established by other U.S. and non-U.S. regulators. As part of its compliance with the respective regulatory requirements, the Firm's broker-dealer activities are subject to certain restrictions on cash and other assets. The following table presents the components of the Firm's restricted cash: December 31, (in billions)20252024Segregated for the benefit of securities and cleared derivative customers$19.4 $18.7 Cash reserves at non-U.S. central banks and held for other general purposes9.6 8.8 Total restricted cash(a)$29.0 $27.5 (a)Comprises $27.8 billion and $26.1 billion in deposits with banks, and $1.2 billion and $1.4 billion in cash and due from banks on the Consolidated balance sheets as of December 31, 2025 and 2024, respectively.Also, as of December 31, 2025 and 2024, the Firm had the following other restricted assets: •Cash and securities pledged with clearing organizations for the benefit of customers of $44.9 billion and $40.7 billion, respectively. •Securities with a fair value of $40.8 billion and $26.8 billion, respectively, in relation to customer activity.Intercompany funds transfers Restrictions imposed by U.S. federal law prohibit JPMorgan Chase Bank, N.A., and its subsidiaries, from lending to JPMorgan Chase & Co. ("Parent Company") and certain of its affiliates unless the loans are secured in specified amounts. Such secured loans provided by any banking subsidiary to the Parent Company or to any particular affiliate, together with certain other transactions with such affiliate (collectively referred to as "covered transactions"), must be made on terms and conditions that are consistent with safe and sound banking practices. In addition, unless collateralized with cash or US Government debt obligations, covered transactions are generally limited to 10% of the banking subsidiary's total capital, as determined by the risk-based capital guidelines; the aggregate amount of covered transactions between any banking subsidiary and all of its affiliates is limited to 20% of the banking subsidiary's total capital.The Parent Company's two principal subsidiaries are JPMorgan Chase Bank, N.A. and JPMorgan Chase Holdings LLC, an intermediate holding company (the "IHC"). The IHC generally holds the stock of JPMorganChase's subsidiaries other than JPMorgan Chase Bank, N.A. and its subsidiaries. The IHC also owns other assets and provides intercompany loans to the Parent Company. The Parent Company is obligated to contribute to the IHC substantially all the net proceeds received from securities issuances (including issuances of senior and subordinated debt securities and of preferred and common stock).The principal sources of income and funding for the Parent Company are dividends from JPMorgan Chase Bank, N.A. and dividends and extensions of credit from the IHC. In addition to dividend restrictions set forth in statutes and regulations, the Federal Reserve, the OCC and the FDIC have authority under the Financial Institutions Supervisory Act to prohibit or to limit the payment of dividends by the banking organizations they supervise, including the Parent Company and its subsidiaries that are banks or bank holding companies, if, in the banking regulator's opinion, payment of a dividend would constitute an unsafe or unsound practice in light of the financial condition of the banking organization. The IHC is prohibited from paying dividends or extending credit to the Parent Company if certain capital or liquidity "thresholds" are breached or if limits are otherwise imposed by the Parent Company's management or Board of Directors.At January 1, 2026, the Parent Company's principal banking subsidiary, JPMorgan Chase Bank, N.A., could pay approximately $30.1 billion in dividends to the Parent Company without the prior approval of its relevant banking regulators. The capacity to pay dividends in 2026 will be supplemented by JPMorgan Chase Bank, N.A.'s earnings during the year. Note 26 - Restricted cash, other restricted assets and intercompany funds transfers Restricted cash and other restricted assets Certain of the Firm's cash and other assets are restricted as to withdrawal or usage. These restrictions are imposed by various regulatory authorities based on the particular activities of the Firm's subsidiaries. The business of JPMorgan Chase Bank, N.A. is subject to examination and regulation by the OCC. The Bank is a member of the U.S. Federal Reserve System, and its deposits in the U.S. are insured by the FDIC, subject to applicable limits. The Firm is required to maintain cash reserves at certain non-US central banks. The Firm is also subject to rules and regulations established by other U.S. and non-U.S. regulators. As part of its compliance with the respective regulatory requirements, the Firm's broker-dealer activities are subject to certain restrictions on cash and other assets. The following table presents the components of the Firm's restricted cash: December 31, (in billions)20252024Segregated for the benefit of securities and cleared derivative customers$19.4 $18.7 Cash reserves at non-U.S. central banks and held for other general purposes9.6 8.8 Total restricted cash(a)$29.0 $27.5 (a)Comprises $27.8 billion and $26.1 billion in deposits with banks, and $1.2 billion and $1.4 billion in cash and due from banks on the Consolidated balance sheets as of December 31, 2025 and 2024, respectively.Also, as of December 31, 2025 and 2024, the Firm had the following other restricted assets: •Cash and securities pledged with clearing organizations for the benefit of customers of $44.9 billion and $40.7 billion, respectively. •Securities with a fair value of $40.8 billion and $26.8 billion, respectively, in relation to customer activity. --- ## Modified Risk: Notes to consolidated financial statements **Key changes:** - Updated: "those trusts of approximately 40% and 45% for the years ended December 31, 2025 and 2024, respectively." - Updated: "those trusts of approximately 40% and 45% for the years ended December 31, 2025 and 2024, respectively." - Updated: "those trusts of approximately 40% and 45% for the years ended December 31, 2025 and 2024, respectively." **Prior (2025):** those trusts of approximately 45% and 65% for the years ended December 31, 2024 and 2023, respectively. The Firm did not retain any senior securities and retained $1.5 billion of subordinated securities in certain of its credit card securitization trusts at both December 31, 2024 and 2023. The Firm's undivided interests in the credit card trusts and securities retained are eliminated in consolidation. Firm-sponsored mortgage and other securitization trustsThe Firm securitizes (or has securitized) originated and purchased residential mortgages, commercial mortgages and other consumer loans primarily in its CCB and CIB businesses. Depending on the particular transaction, as well as the respective business involved, the Firm may act as the servicer of the loans and/or retain certain beneficial interests in the securitization trusts. those trusts of approximately 45% and 65% for the years ended December 31, 2024 and 2023, respectively. The Firm did not retain any senior securities and retained $1.5 billion of subordinated securities in certain of its credit card securitization trusts at both December 31, 2024 and 2023. The Firm's undivided interests in the credit card trusts and securities retained are eliminated in consolidation. those trusts of approximately 45% and 65% for the years ended December 31, 2024 and 2023, respectively. The Firm did not retain any senior securities and retained $1.5 billion of subordinated securities in certain of its credit card securitization trusts at both December 31, 2024 and 2023. The Firm's undivided interests in the credit card trusts and securities retained are eliminated in consolidation. Firm-sponsored mortgage and other securitization trustsThe Firm securitizes (or has securitized) originated and purchased residential mortgages, commercial mortgages and other consumer loans primarily in its CCB and CIB businesses. Depending on the particular transaction, as well as the respective business involved, the Firm may act as the servicer of the loans and/or retain certain beneficial interests in the securitization trusts. **Current (2026):** those trusts of approximately 40% and 45% for the years ended December 31, 2025 and 2024, respectively. The Firm did not retain any senior securities and retained $1.5 billion of subordinated securities in certain of its credit card securitization trusts at both December 31, 2025 and 2024. The Firm's undivided interests in the credit card trusts and securities retained are eliminated in consolidation. Firm-sponsored mortgage and other securitization trustsThe Firm securitizes (or has securitized) originated and purchased residential mortgages, commercial mortgages and other consumer loans primarily in its CCB and CIB businesses. Depending on the particular transaction, as well as the respective business involved, the Firm may act as the servicer of the loans and/or retain certain beneficial interests in the securitization trusts. those trusts of approximately 40% and 45% for the years ended December 31, 2025 and 2024, respectively. The Firm did not retain any senior securities and retained $1.5 billion of subordinated securities in certain of its credit card securitization trusts at both December 31, 2025 and 2024. The Firm's undivided interests in the credit card trusts and securities retained are eliminated in consolidation. those trusts of approximately 40% and 45% for the years ended December 31, 2025 and 2024, respectively. The Firm did not retain any senior securities and retained $1.5 billion of subordinated securities in certain of its credit card securitization trusts at both December 31, 2025 and 2024. The Firm's undivided interests in the credit card trusts and securities retained are eliminated in consolidation. Firm-sponsored mortgage and other securitization trustsThe Firm securitizes (or has securitized) originated and purchased residential mortgages, commercial mortgages and other consumer loans primarily in its CCB and CIB businesses. Depending on the particular transaction, as well as the respective business involved, the Firm may act as the servicer of the loans and/or retain certain beneficial interests in the securitization trusts. --- ## Modified Risk: RSUs, PSUs and SARs activity **Key changes:** - Updated: "The following table summarizes JPMorganChase's RSUs, PSUs and SARs activity for 2025." - Updated: "Year ended December 31, (in millions)202520242023Cost of prior grants of RSUs, PSUs and SARs that are amortized over their applicable vesting periods$1,541 $1,622 $1,510 Accrual of estimated costs of share-based awards to be granted in future periods, predominantly those to full-career eligible employees2,073 1,882 1,607 Total noncash compensation expense related to employee share-based incentive plans$3,614 $3,504 $3,117 At December 31, 2025, approximately $1.0 billion (pretax) of compensation expense related to unvested awards had not yet been charged to net income." - Updated: "Tax benefitsIncome tax benefits (including tax benefits from dividends or dividend equivalents) related to share-based incentive arrangements recognized in the Firm's Consolidated statements of income for the years ended December 31, 2025, 2024 and 2023, were $1.4 billion, $1.0 billion and $836 million, respectively." - Updated: "Year ended December 31, (in millions)202520242023Cost of prior grants of RSUs, PSUs and SARs that are amortized over their applicable vesting periods$1,541 $1,622 $1,510 Accrual of estimated costs of share-based awards to be granted in future periods, predominantly those to full-career eligible employees2,073 1,882 1,607 Total noncash compensation expense related to employee share-based incentive plans$3,614 $3,504 $3,117 At December 31, 2025, approximately $1.0 billion (pretax) of compensation expense related to unvested awards had not yet been charged to net income." **Prior (2025):** Generally, compensation expense for RSUs and PSUs is measured based on the number of units granted multiplied by the stock price at the grant date, and for SARs, is measured at the grant date using the Black-Scholes valuation model. Compensation expense for these awards is recognized in net income as described previously. The following table summarizes JPMorganChase's RSUs, PSUs and SARs activity for 2024. RSUs/PSUsSARsYear ended December 31, 2024Number of unitsWeighted-average grantdate fair valueNumber of awardsWeighted-average exercise priceWeighted-average remaining contractual life (in years)Aggregate intrinsic value(in thousands, except weighted-average data, and where otherwise stated)Outstanding, January 152,243 $141.31 2,250 $152.19 Granted20,020 166.74 - - Exercised or vested(19,542)143.02 - - Forfeited(2,112)147.41 - - CanceledNANA - - Outstanding, December 3150,609 $150.41 2,250 $152.19 6.7$198,113 Exercisable, December 31NANA - - - - SARs (in thousands, except weighted-average data, and where otherwise stated) The total fair value of RSUs and PSUs that vested during the years ended December 31, 2024, 2023 and 2022, was $3.5 billion, $2.5 billion and $3.2 billion, respectively. There were no SARs exercised in 2024. The total intrinsic value of SARs exercised during the years ended December 31, 2023 and 2022, was $24 million and $75 million, respectively. Compensation expenseThe Firm recognized the following noncash compensation expense related to its various employee share-based incentive plans in its Consolidated statements of income. Year ended December 31, (in millions)202420232022Cost of prior grants of RSUs, PSUs and SARs that are amortized over their applicable vesting periods$1,622 $1,510 $1,253 Accrual of estimated costs of share-based awards to be granted in future periods, predominantly those to full-career eligible employees1,882 1,607 1,541 Total noncash compensation expense related to employee share-based incentive plans$3,504 $3,117 $2,794 At December 31, 2024, approximately $963 million (pretax) of compensation expense related to unvested awards had not yet been charged to net income. That cost is expected to be amortized into compensation expense over a weighted-average period of 1.6 years. The Firm does not capitalize any compensation expense related to share-based compensation awards to employees. Tax benefitsIncome tax benefits (including tax benefits from dividends or dividend equivalents) related to share-based incentive arrangements recognized in the Firm's Consolidated statements of income for the years ended December 31, 2024, 2023 and 2022, were $1.0 billion, $836 million and $901 million, respectively. Compensation expenseThe Firm recognized the following noncash compensation expense related to its various employee share-based incentive plans in its Consolidated statements of income. Year ended December 31, (in millions)202420232022Cost of prior grants of RSUs, PSUs and SARs that are amortized over their applicable vesting periods$1,622 $1,510 $1,253 Accrual of estimated costs of share-based awards to be granted in future periods, predominantly those to full-career eligible employees1,882 1,607 1,541 Total noncash compensation expense related to employee share-based incentive plans$3,504 $3,117 $2,794 At December 31, 2024, approximately $963 million (pretax) of compensation expense related to unvested awards had not yet been charged to net income. That cost is expected to be amortized into compensation expense over a weighted-average period of 1.6 years. The Firm does not capitalize any compensation expense related to share-based compensation awards to employees. **Current (2026):** Generally, compensation expense for RSUs and PSUs is measured based on the number of units granted multiplied by the stock price at the grant date, and for SARs, is measured at the grant date using the Black-Scholes valuation model. Compensation expense for these awards is recognized in net income as described previously. The following table summarizes JPMorganChase's RSUs, PSUs and SARs activity for 2025. RSUs/PSUsSARsYear ended December 31, 2025Number of unitsWeighted-average grantdate fair valueNumber of awardsWeighted-average exercise priceWeighted-average remaining contractual life (in years)Aggregate intrinsic value(in thousands, except weighted-average data, and where otherwise stated)Outstanding, January 150,609 $150.41 2,250 $152.19 Granted14,602 261.24 - - Exercised or vested(20,469)148.74 - - Forfeited(2,182)176.47 - - CanceledNANA - - Outstanding, December 3142,560 $187.64 2,250 $152.19 5.7$385,369 Exercisable, December 31NANA - - - - SARs (in thousands, except weighted-average data, and where otherwise stated) The total fair value of RSUs and PSUs that vested during the years ended December 31, 2025, 2024 and 2023, was $5.0 billion, $3.5 billion and $2.5 billion, respectively. There were no SARs exercised in 2025 and 2024. The total intrinsic value of SARs exercised during the year ended December 31, 2023 was $24 million. Compensation expenseThe Firm recognized the following noncash compensation expense related to its various employee share-based incentive plans in its Consolidated statements of income. Year ended December 31, (in millions)202520242023Cost of prior grants of RSUs, PSUs and SARs that are amortized over their applicable vesting periods$1,541 $1,622 $1,510 Accrual of estimated costs of share-based awards to be granted in future periods, predominantly those to full-career eligible employees2,073 1,882 1,607 Total noncash compensation expense related to employee share-based incentive plans$3,614 $3,504 $3,117 At December 31, 2025, approximately $1.0 billion (pretax) of compensation expense related to unvested awards had not yet been charged to net income. That cost is expected to be amortized into compensation expense over a weighted-average period of 1.6 years. The Firm does not capitalize any compensation expense related to share-based compensation awards to employees. Tax benefitsIncome tax benefits (including tax benefits from dividends or dividend equivalents) related to share-based incentive arrangements recognized in the Firm's Consolidated statements of income for the years ended December 31, 2025, 2024 and 2023, were $1.4 billion, $1.0 billion and $836 million, respectively. Compensation expenseThe Firm recognized the following noncash compensation expense related to its various employee share-based incentive plans in its Consolidated statements of income. Year ended December 31, (in millions)202520242023Cost of prior grants of RSUs, PSUs and SARs that are amortized over their applicable vesting periods$1,541 $1,622 $1,510 Accrual of estimated costs of share-based awards to be granted in future periods, predominantly those to full-career eligible employees2,073 1,882 1,607 Total noncash compensation expense related to employee share-based incentive plans$3,614 $3,504 $3,117 At December 31, 2025, approximately $1.0 billion (pretax) of compensation expense related to unvested awards had not yet been charged to net income. That cost is expected to be amortized into compensation expense over a weighted-average period of 1.6 years. The Firm does not capitalize any compensation expense related to share-based compensation awards to employees. --- ## Modified Risk: Liquidity risk and credit-related contingent features **Key changes:** - Updated: "The following table shows the aggregate fair value of net derivative payables related to OTC and OTC-cleared derivatives that contain contingent collateral or termination features that may be triggered upon a ratings downgrade, and the associated collateral the Firm has posted in the normal course of business, at December 31, 2025 and 2024." - Updated: "Liquidity impact of downgrade triggers on OTC and OTC-cleared derivativesDecember 31, 2025December 31, 2024(in millions)Single-notch downgradeTwo-notch downgradeSingle-notch downgradeTwo-notch downgradeAmount of additional collateral to be posted upon downgrade(a)$28 $124 $119 $1,205 Amount required to settle contracts with termination triggers upon downgrade(b)15 96 78 458 Amount of additional collateral to be posted upon downgrade(a) Amount required to settle contracts with termination triggers upon downgrade(b) (a)Includes the additional collateral to be posted for initial margin." - Updated: "210JPMorgan Chase & Co./2025 Form 10-K 210JPMorgan Chase & Co./2025 Form 10-K 210JPMorgan Chase & Co./2025 Form 10-K 210 JPMorgan Chase & Co./2025 Form 10-K" **Prior (2025):** In addition to the specific market risks introduced by each derivative contract type, derivatives expose JPMorganChase to credit risk - the risk that derivative counterparties may fail to meet their payment obligations under the derivative contracts and the collateral, if any, held by the Firm proves to be of insufficient value to cover the payment obligation. It is the policy of JPMorganChase to actively pursue, where possible, the use of legally enforceable master netting arrangements and collateral agreements to mitigate derivative counterparty credit risk inherent in derivative receivables. While derivative receivables expose the Firm to credit risk, derivative payables expose the Firm to liquidity risk, as the derivative contracts typically require the Firm to post cash or securities collateral with counterparties as the fair value of the contracts moves in the counterparties' favor or upon specified downgrades in the Firm's and its subsidiaries' respective credit ratings. Certain derivative contracts also provide for termination of the contract, generally upon a downgrade of either the Firm or the counterparty, at the fair value of the derivative contracts. The following table shows the aggregate fair value of net derivative payables related to OTC and OTC-cleared derivatives that contain contingent collateral or termination features that may be triggered upon a ratings downgrade, and the associated collateral the Firm has posted in the normal course of business, at December 31, 2024 and 2023. OTC and OTC-cleared derivative payables containing downgrade triggers(in millions)December 31, 2024December 31, 2023Aggregate fair value of net derivative payables$15,371 $14,655 Collateral posted15,204 14,673 The following table shows the impact of a single-notch and two-notch downgrade of the long-term issuer ratings of JPMorgan Chase & Co. and its subsidiaries, predominantly JPMorgan Chase Bank, N.A., at December 31, 2024 and 2023, related to OTC and OTC-cleared derivative contracts with contingent collateral or termination features that may be triggered upon a ratings downgrade. Derivatives contracts generally require additional collateral to be posted or terminations to be triggered when the predefined rating threshold is breached. A downgrade by a single rating agency that does not result in a rating lower than a preexisting corresponding rating provided by another major rating agency will generally not result in additional collateral (except in certain instances in which additional initial margin may be required upon a ratings downgrade), nor in termination payment requirements. The liquidity impact in the table is calculated based upon a downgrade below the lowest current rating of the rating agencies referred to in the derivative contract. Liquidity impact of downgrade triggers on OTC and OTC-cleared derivativesDecember 31, 2024December 31, 2023(in millions)Single-notch downgradeTwo-notch downgradeSingle-notch downgradeTwo-notch downgradeAmount of additional collateral to be posted upon downgrade(a)$119 $1,205 $75 $1,153 Amount required to settle contracts with termination triggers upon downgrade(b)78 458 93 592 Amount of additional collateral to be posted upon downgrade(a) Amount required to settle contracts with termination triggers upon downgrade(b) (a)Includes the additional collateral to be posted for initial margin. (b)Amounts represent fair values of derivative payables, and do not reflect collateral posted. Derivatives executed in contemplation of a sale of the underlying financial asset In certain instances the Firm enters into transactions in which it transfers financial assets but maintains the economic exposure to the transferred assets by entering into a derivative with the same counterparty in contemplation of the initial transfer. The Firm generally accounts for such transfers as collateralized financing transactions as described in Note 11, but in limited circumstances they may qualify to be accounted for as a sale and a derivative under U.S. GAAP. The amount of such transfers accounted for as a sale where the associated derivative was outstanding was not material at December 31, 2024 and 2023. JPMorgan Chase & Co./2024 Form 10-K217 JPMorgan Chase & Co./2024 Form 10-K217 JPMorgan Chase & Co./2024 Form 10-K217 JPMorgan Chase & Co./2024 Form 10-K 217 **Current (2026):** In addition to the specific market risks introduced by each derivative contract type, derivatives expose JPMorganChase to credit risk - the risk that derivative counterparties may fail to meet their payment obligations under the derivative contracts and the collateral, if any, held by the Firm proves to be of insufficient value to cover the payment obligation. It is the policy of JPMorganChase to actively pursue, where possible, the use of legally enforceable master netting arrangements and collateral agreements to mitigate derivative counterparty credit risk inherent in derivative receivables. While derivative receivables expose the Firm to credit risk, derivative payables expose the Firm to liquidity risk, as the derivative contracts typically require the Firm to post cash or securities collateral with counterparties as the fair value of the contracts moves in the counterparties' favor or upon specified downgrades in the Firm's and its subsidiaries' respective credit ratings. Certain derivative contracts also provide for termination of the contract, generally upon a downgrade of either the Firm or the counterparty, at the fair value of the derivative contracts. The following table shows the aggregate fair value of net derivative payables related to OTC and OTC-cleared derivatives that contain contingent collateral or termination features that may be triggered upon a ratings downgrade, and the associated collateral the Firm has posted in the normal course of business, at December 31, 2025 and 2024. OTC and OTC-cleared derivative payables containing downgrade triggers(in millions)December 31, 2025December 31, 2024Aggregate fair value of net derivative payables$19,986 $15,371 Collateral posted20,555 15,204 The following table shows the impact of a single-notch and two-notch downgrade of the long-term issuer ratings of JPMorgan Chase & Co. and its subsidiaries, predominantly JPMorgan Chase Bank, N.A., at December 31, 2025 and 2024, related to OTC and OTC-cleared derivative contracts with contingent collateral or termination features that may be triggered upon a ratings downgrade. Derivatives contracts generally require additional collateral to be posted or terminations to be triggered when the predefined rating threshold is breached. A downgrade by a single rating agency that does not result in a rating lower than a preexisting corresponding rating provided by another major rating agency will generally not result in additional collateral (except in certain instances in which additional initial margin may be required upon a ratings downgrade), nor in termination payment requirements. The liquidity impact in the table is calculated based upon a downgrade below the lowest current rating of the rating agencies referred to in the derivative contract. Liquidity impact of downgrade triggers on OTC and OTC-cleared derivativesDecember 31, 2025December 31, 2024(in millions)Single-notch downgradeTwo-notch downgradeSingle-notch downgradeTwo-notch downgradeAmount of additional collateral to be posted upon downgrade(a)$28 $124 $119 $1,205 Amount required to settle contracts with termination triggers upon downgrade(b)15 96 78 458 Amount of additional collateral to be posted upon downgrade(a) Amount required to settle contracts with termination triggers upon downgrade(b) (a)Includes the additional collateral to be posted for initial margin. (b)Amounts represent fair values of derivative payables, and do not reflect collateral posted. 210JPMorgan Chase & Co./2025 Form 10-K 210JPMorgan Chase & Co./2025 Form 10-K 210JPMorgan Chase & Co./2025 Form 10-K 210 JPMorgan Chase & Co./2025 Form 10-K --- ## Modified Risk: Notes to consolidated financial statements **Key changes:** - Updated: "Conversely, securities (e.g., mortgage-backed securities), and certain derivatives The fair value of MSRs is sensitive to changes in interest rates, including their effect on prepayment speeds." - Updated: "(e.g., those for which the Firm receives fixed-rate interest payments) increase in value when interest rates decline." - Updated: "The following table summarizes MSR activity for the years ended December 31, 2025, 2024 and 2023." - Updated: "(e)Includes excess MSRs transferred to agency-sponsored trusts in exchange for stripped mortgage-backed securities ("SMBS")." - Updated: "In reality, changes in one factor may result in changes in another, which would either magnify or counteract the impact of the initial change.The table below outlines the key economic assumptions used to determine the fair value of the Firm's MSRs at December 31, 2025 and 2024, and outlines the sensitivities of those fair values to immediate adverse changes in those assumptions, as defined below.December 31,(in millions, except rates)20252024Weighted-average prepayment speed assumption (constant prepayment rate)6.77 %6.19 %Impact on fair value of 10% adverse change$(181)$(209)Impact on fair value of 20% adverse change(353)(406)Weighted-average option adjusted spread(a)6.14 %5.97 %Impact on fair value of 100 basis points adverse change$(394)$(391)Impact on fair value of 200 basis points adverse change(757)(751)(a)Includes the impact of operational risk and regulatory capital." **Prior (2025):** The fair value of MSRs is sensitive to changes in interest rates, including their effect on prepayment speeds. MSRs typically decrease in value when interest rates decline because declining interest rates tend to increase prepayments and therefore reduce the expected life of the net servicing cash flows that comprise the MSR asset. Conversely, securities (e.g., mortgage-backed securities), and certain derivatives (e.g., those for which the Firm receives fixed-rate interest payments) increase in value when interest rates decline. JPMorganChase uses combinations of derivatives and securities to manage the risk of changes in the fair value of MSRs. The intent is to offset any interest-rate related changes in the fair value of MSRs with changes in the fair value of the related risk management instruments. The fair value of MSRs is sensitive to changes in interest rates, including their effect on prepayment speeds. MSRs typically decrease in value when interest rates decline because declining interest rates tend to increase prepayments and therefore reduce the expected life of the net servicing cash flows that comprise the MSR asset. Conversely, securities (e.g., mortgage-backed securities), and certain derivatives (e.g., those for which the Firm receives fixed-rate The fair value of MSRs is sensitive to changes in interest rates, including their effect on prepayment speeds. MSRs typically decrease in value when interest rates decline because declining interest rates tend to increase prepayments and therefore reduce the expected life of the net servicing cash flows that comprise the MSR asset. Conversely, securities (e.g., mortgage-backed securities), and certain derivatives (e.g., those for which the Firm receives fixed-rate interest payments) increase in value when interest rates decline. JPMorganChase uses combinations of derivatives and securities to manage the risk of changes in the fair value of MSRs. The intent is to offset any interest-rate related changes in the fair value of MSRs with changes in the fair value of the related risk management instruments. interest payments) increase in value when interest rates decline. JPMorganChase uses combinations of derivatives and securities to manage the risk of changes in the fair value of MSRs. The intent is to offset any interest-rate related changes in the fair value of MSRs with changes in the fair value of the related risk management instruments. The following table summarizes MSR activity for the years ended December 31, 2024, 2023 and 2022. As of or for the year ended December 31, (in millions, except where otherwise noted)202420232022Fair value at beginning of period$8,522 $7,973 $5,494 MSR activity:Originations of MSRs325 253 798 Purchase of MSRs(a)601 1,028 1,400 Disposition of MSRs(b)(21)(188)(822)Net additions/(dispositions)905 1,093 1,376 Changes due to collection/realization of expected cash flows(1,068)(1,011)(936)Changes in valuation due to inputs and assumptions:Changes due to market interest rates and other(c)670 424 2,022 Changes in valuation due to other inputs and assumptions:Projected cash flows (e.g., cost to service)102 (22)14 Discount rates14 14 - Prepayment model changes and other(d)(24)51 3 Total changes in valuation due to other inputs and assumptions92 43 17 Total changes in valuation due to inputs and assumptions762 467 2,039 Fair value at December 31,$9,121 $8,522 $7,973 Change in unrealized gains/(losses) included in income related to MSRs held at December 31,$762 $467 $2,039 Contractual service fees, late fees and other ancillary fees included in income1,606 1,590 1,535 Third-party mortgage loans serviced at December 31, (in billions)652 632 584 Servicer advances, net of an allowance for uncollectible amounts, at December 31(e)577 659 758 Purchase of MSRs(a) Disposition of MSRs(b) Changes due to collection/realization of expected cash flows Changes due to market interest rates and other(c) Projected cash flows (e.g., cost to service) Discount rates Prepayment model changes and other(d) Change in unrealized gains/(losses) included in income related to MSRs held at December 31, Servicer advances, net of an allowance for uncollectible amounts, at December 31(e) (a)Includes purchase price adjustments associated with MSRs purchased, primarily as a result of loans that prepaid within 90 days of settlement, allowing the Firm to recover the purchase price. (b)Includes excess MSRs transferred to agency-sponsored trusts in exchange for stripped mortgage-backed securities ("SMBS"). In each transaction, a portion of the SMBS was acquired by third parties at the transaction date; the Firm acquired the remaining balance of those SMBS as trading securities. (c)Represents both the impact of changes in estimated future prepayments due to changes in market interest rates, and the difference between actual and expected prepayments. (d)Represents changes in prepayments other than those attributable to changes in market interest rates. (e)Represents amounts the Firm pays as the servicer (e.g., scheduled principal and interest, taxes and insurance), which will generally be reimbursed within a short period of time after the advance from future cash flows from the trust or the underlying loans. The Firm's credit risk associated with these servicer advances is minimal because reimbursement of the advances is typically senior to all cash payments to investors. In addition, the Firm maintains the right to stop payment to investors if the collateral is insufficient to cover the advance. However, certain of these servicer advances may not be recoverable if they were not made in accordance with applicable rules and agreements. 282JPMorgan Chase & Co./2024 Form 10-K 282JPMorgan Chase & Co./2024 Form 10-K 282JPMorgan Chase & Co./2024 Form 10-K 282 JPMorgan Chase & Co./2024 Form 10-K The following table presents the components of mortgage fees and related income (including the impact of MSR risk management activities) for the years ended December 31, 2024, 2023 and 2022.Year ended December 31,(in millions)202420232022CCB mortgage fees and related incomeProduction revenue$627 $421 $497 Net mortgage servicing revenue: Operating revenue: Loan servicing revenue1,659 1,634 1,582 Changes in MSR asset fair value due to collection/realization of expected cash flows(1,067)(1,011)(936)Total operating revenue592 623 646 Risk management: Changes in MSR asset fair value due to market interest rates and other(a)670 424 2,022 Other changes in MSR asset fair value due to other inputs and assumptions in model(b)92 43 17 Change in derivative fair value and other(603)(336)(1,946)Total risk management159 131 93 Total net mortgage servicing revenue751 754 739 Total CCB mortgage fees and related income1,378 1,175 1,236 All other23 1 14 Mortgage fees and related income$1,401 $1,176 $1,250 (a)Represents both the impact of changes in estimated future prepayments due to changes in market interest rates, and the difference between actual and expected prepayments.(b)Represents the aggregate impact of changes in model inputs and assumptions such as projected cash flows (e.g., cost to service), discount rates and changes in prepayments other than those attributable to changes in market interest rates (e.g., changes in prepayments due to changes in home prices).Changes in fair value based on variations in assumptions generally cannot be easily extrapolated, because the relationship of the change in the assumptions to the change in fair value are often highly interrelated and may not be linear. In the following table, the effect that a change in a particular assumption may have on the fair value is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another, which would either magnify or counteract the impact of the initial change.The table below outlines the key economic assumptions used to determine the fair value of the Firm's MSRs at December 31, 2024 and 2023, and outlines the sensitivities of those fair values to immediate adverse changes in those assumptions, as defined below.December 31,(in millions, except rates)20242023Weighted-average prepayment speed assumption (constant prepayment rate)6.19 %6.29 %Impact on fair value of 10% adverse change$(209)$(206)Impact on fair value of 20% adverse change(406)(401)Weighted-average option adjusted spread(a)5.97 %6.10 %Impact on fair value of 100 basis points adverse change$(391)$(369)Impact on fair value of 200 basis points adverse change(751)(709)(a)Includes the impact of operational risk and regulatory capital. The following table presents the components of mortgage fees and related income (including the impact of MSR risk management activities) for the years ended December 31, 2024, 2023 and 2022.Year ended December 31,(in millions)202420232022CCB mortgage fees and related incomeProduction revenue$627 $421 $497 Net mortgage servicing revenue: Operating revenue: Loan servicing revenue1,659 1,634 1,582 Changes in MSR asset fair value due to collection/realization of expected cash flows(1,067)(1,011)(936)Total operating revenue592 623 646 Risk management: Changes in MSR asset fair value due to market interest rates and other(a)670 424 2,022 Other changes in MSR asset fair value due to other inputs and assumptions in model(b)92 43 17 Change in derivative fair value and other(603)(336)(1,946)Total risk management159 131 93 Total net mortgage servicing revenue751 754 739 Total CCB mortgage fees and related income1,378 1,175 1,236 All other23 1 14 Mortgage fees and related income$1,401 $1,176 $1,250 (a)Represents both the impact of changes in estimated future prepayments due to changes in market interest rates, and the difference between actual and expected prepayments.(b)Represents the aggregate impact of changes in model inputs and assumptions such as projected cash flows (e.g., cost to service), discount rates and changes in prepayments other than those attributable to changes in market interest rates (e.g., changes in prepayments due to changes in home prices). The following table presents the components of mortgage fees and related income (including the impact of MSR risk management activities) for the years ended December 31, 2024, 2023 and 2022. Year ended December 31,(in millions)202420232022CCB mortgage fees and related incomeProduction revenue$627 $421 $497 Net mortgage servicing revenue: Operating revenue: Loan servicing revenue1,659 1,634 1,582 Changes in MSR asset fair value due to collection/realization of expected cash flows(1,067)(1,011)(936)Total operating revenue592 623 646 Risk management: Changes in MSR asset fair value due to market interest rates and other(a)670 424 2,022 Other changes in MSR asset fair value due to other inputs and assumptions in model(b)92 43 17 Change in derivative fair value and other(603)(336)(1,946)Total risk management159 131 93 Total net mortgage servicing revenue751 754 739 Total CCB mortgage fees and related income1,378 1,175 1,236 All other23 1 14 Mortgage fees and related income$1,401 $1,176 $1,250 **Current (2026):** The fair value of MSRs is sensitive to changes in interest rates, including their effect on prepayment speeds. MSRs typically decrease in value when interest rates decline because declining interest rates tend to increase prepayments and therefore reduce the expected life of the net servicing cash flows that comprise the MSR asset. Conversely, securities (e.g., mortgage-backed securities), and certain derivatives (e.g., those for which the Firm receives fixed-rate interest payments) increase in value when interest rates decline. JPMorganChase uses combinations of derivatives and securities to manage the risk of changes in the fair value of MSRs. The intent is to offset any interest-rate related changes in the fair value of MSRs with changes in the fair value of the related risk management instruments. The fair value of MSRs is sensitive to changes in interest rates, including their effect on prepayment speeds. MSRs typically decrease in value when interest rates decline because declining interest rates tend to increase prepayments and therefore reduce the expected life of the net servicing cash flows that comprise the MSR asset. Conversely, securities (e.g., mortgage-backed securities), and certain derivatives The fair value of MSRs is sensitive to changes in interest rates, including their effect on prepayment speeds. MSRs typically decrease in value when interest rates decline because declining interest rates tend to increase prepayments and therefore reduce the expected life of the net servicing cash flows that comprise the MSR asset. Conversely, securities (e.g., mortgage-backed securities), and certain derivatives (e.g., those for which the Firm receives fixed-rate interest payments) increase in value when interest rates decline. JPMorganChase uses combinations of derivatives and securities to manage the risk of changes in the fair value of MSRs. The intent is to offset any interest-rate related changes in the fair value of MSRs with changes in the fair value of the related risk management instruments. (e.g., those for which the Firm receives fixed-rate interest payments) increase in value when interest rates decline. JPMorganChase uses combinations of derivatives and securities to manage the risk of changes in the fair value of MSRs. The intent is to offset any interest-rate related changes in the fair value of MSRs with changes in the fair value of the related risk management instruments. The following table summarizes MSR activity for the years ended December 31, 2025, 2024 and 2023. As of or for the year ended December 31, (in millions, except where otherwise noted)202520242023Fair value at beginning of period$9,121 $8,522 $7,973 MSR activity:Originations of MSRs433 325 253 Purchase of MSRs(a)624 601 1,028 Disposition of MSRs9 (21)(e)(188)(e)Net additions/(dispositions)1,066 905 1,093 Changes due to collection/realization of expected cash flows(1,068)(1,068)(1,011)Changes in valuation due to inputs and assumptions:Changes due to market interest rates and other(b)48 670 424 Changes in valuation due to other inputs and assumptions:Projected cash flows (e.g., cost to service)(36)102 (22)Discount rates(1)14 14 Prepayment model changes and other(c)37 (24)51 Total changes in valuation due to other inputs and assumptions - 92 43 Total changes in valuation due to inputs and assumptions48 762 467 Fair value at December 31,$9,167 $9,121 $8,522 Change in unrealized gains/(losses) included in income related to MSRs held at December 31,$48 $762 $467 Contractual service fees, late fees and other ancillary fees included in income1,635 1,606 1,590 Third-party mortgage loans serviced at December 31, (in billions)668 652 632 Servicer advances, net of an allowance for uncollectible amounts, at December 31(d)493 577 659 Purchase of MSRs(a) Disposition of MSRs (e) (e) Changes due to collection/realization of expected cash flows Changes due to market interest rates and other(b) Projected cash flows (e.g., cost to service) Discount rates Prepayment model changes and other(c) Change in unrealized gains/(losses) included in income related to MSRs held at December 31, Servicer advances, net of an allowance for uncollectible amounts, at December 31(d) (a)Includes purchase price adjustments associated with purchased MSRs, primarily due to loans that prepaid within 90 days of settlement or did not meet certain criteria and were removed from the purchase prior to the transfer date, allowing the Firm to recover the purchase price. (b)Represents both the impact of changes in estimated future prepayments due to changes in market interest rates, and the difference between actual and expected prepayments. (c)Represents changes in prepayments other than those attributable to changes in market interest rates. (d)Represents amounts the Firm pays as the servicer (e.g., scheduled principal and interest, taxes and insurance), which will generally be reimbursed within a short period of time after the advance from future cash flows from the trust or the underlying loans. The Firm's credit risk associated with these servicer advances is minimal because reimbursement of the advances is typically senior to all cash payments to investors. In addition, the Firm maintains the right to stop payment to investors if the collateral is insufficient to cover the advance. However, certain of these servicer advances may not be recoverable if they were not made in accordance with applicable rules and agreements. (e)Includes excess MSRs transferred to agency-sponsored trusts in exchange for stripped mortgage-backed securities ("SMBS"). In each transaction, a portion of the SMBS was acquired by third parties at the transaction date; the Firm acquired the remaining balance of those SMBS as trading securities. 274JPMorgan Chase & Co./2025 Form 10-K 274JPMorgan Chase & Co./2025 Form 10-K 274JPMorgan Chase & Co./2025 Form 10-K 274 JPMorgan Chase & Co./2025 Form 10-K The following table presents the components of mortgage fees and related income (including the impact of MSR risk management activities) for the years ended December 31, 2025, 2024 and 2023.Year ended December 31,(in millions)202520242023CCB mortgage fees and related incomeProduction revenue$622 $627 $421 Net mortgage servicing revenue: Operating revenue: Loan servicing revenue1,651 1,659 1,634 Changes in MSR asset fair value due to collection/realization of expected cash flows(1,065)(1,067)(1,011)Total operating revenue586 592 623 Risk management: Changes in MSR asset fair value due to market interest rates and other(a)48 670 424 Other changes in MSR asset fair value due to other inputs and assumptions in model(b) - 92 43 Change in derivative fair value and other70 (603)(336)Total risk management118 159 131 Total net mortgage servicing revenue704 751 754 Total CCB mortgage fees and related income1,326 1,378 1,175 All other55 23 1 Mortgage fees and related income$1,381 $1,401 $1,176 (a)Represents both the impact of changes in estimated future prepayments due to changes in market interest rates, and the difference between actual and expected prepayments.(b)Represents the aggregate impact of changes in model inputs and assumptions such as projected cash flows (e.g., cost to service), discount rates and changes in prepayments other than those attributable to changes in market interest rates (e.g., changes in prepayments due to changes in home prices).Changes in fair value based on variations in assumptions generally cannot be easily extrapolated, because the relationship of the change in the assumptions to the change in fair value are often highly interrelated and may not be linear. In the following table, the effect that a change in a particular assumption may have on the fair value is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another, which would either magnify or counteract the impact of the initial change.The table below outlines the key economic assumptions used to determine the fair value of the Firm's MSRs at December 31, 2025 and 2024, and outlines the sensitivities of those fair values to immediate adverse changes in those assumptions, as defined below.December 31,(in millions, except rates)20252024Weighted-average prepayment speed assumption (constant prepayment rate)6.77 %6.19 %Impact on fair value of 10% adverse change$(181)$(209)Impact on fair value of 20% adverse change(353)(406)Weighted-average option adjusted spread(a)6.14 %5.97 %Impact on fair value of 100 basis points adverse change$(394)$(391)Impact on fair value of 200 basis points adverse change(757)(751)(a)Includes the impact of operational risk and regulatory capital. The following table presents the components of mortgage fees and related income (including the impact of MSR risk management activities) for the years ended December 31, 2025, 2024 and 2023.Year ended December 31,(in millions)202520242023CCB mortgage fees and related incomeProduction revenue$622 $627 $421 Net mortgage servicing revenue: Operating revenue: Loan servicing revenue1,651 1,659 1,634 Changes in MSR asset fair value due to collection/realization of expected cash flows(1,065)(1,067)(1,011)Total operating revenue586 592 623 Risk management: Changes in MSR asset fair value due to market interest rates and other(a)48 670 424 Other changes in MSR asset fair value due to other inputs and assumptions in model(b) - 92 43 Change in derivative fair value and other70 (603)(336)Total risk management118 159 131 Total net mortgage servicing revenue704 751 754 Total CCB mortgage fees and related income1,326 1,378 1,175 All other55 23 1 Mortgage fees and related income$1,381 $1,401 $1,176 (a)Represents both the impact of changes in estimated future prepayments due to changes in market interest rates, and the difference between actual and expected prepayments.(b)Represents the aggregate impact of changes in model inputs and assumptions such as projected cash flows (e.g., cost to service), discount rates and changes in prepayments other than those attributable to changes in market interest rates (e.g., changes in prepayments due to changes in home prices). The following table presents the components of mortgage fees and related income (including the impact of MSR risk management activities) for the years ended December 31, 2025, 2024 and 2023. Year ended December 31,(in millions)202520242023CCB mortgage fees and related incomeProduction revenue$622 $627 $421 Net mortgage servicing revenue: Operating revenue: Loan servicing revenue1,651 1,659 1,634 Changes in MSR asset fair value due to collection/realization of expected cash flows(1,065)(1,067)(1,011)Total operating revenue586 592 623 Risk management: Changes in MSR asset fair value due to market interest rates and other(a)48 670 424 Other changes in MSR asset fair value due to other inputs and assumptions in model(b) - 92 43 Change in derivative fair value and other70 (603)(336)Total risk management118 159 131 Total net mortgage servicing revenue704 751 754 Total CCB mortgage fees and related income1,326 1,378 1,175 All other55 23 1 Mortgage fees and related income$1,381 $1,401 $1,176 --- ## Modified Risk: Notes to consolidated financial statements **Key changes:** - Updated: "At December 31, 2025, the investment securities portfolio consisted of debt securities with an average credit rating of AA+ (based upon external ratings where available, and where not available, based primarily upon internal risk ratings)." - Updated: "The Firm's internal risk ratings generally align with the qualitative characteristics (e.g., borrower capacity to meet financial commitments and vulnerability to changes in the economic environment) defined by S&P and Moody's, however, the quantitative characteristics (e.g., probability of default ("PD") and loss given default ("LGD")) may differ as they reflect internal historical experiences and assumptions." - Updated: "At December 31, 2025, the investment securities portfolio consisted of debt securities with an average credit rating of AA+ (based upon external ratings where available, and where not available, based primarily upon internal risk ratings)." - Updated: "The Firm's internal risk ratings generally align with the qualitative characteristics (e.g., borrower capacity to meet financial commitments and vulnerability to changes in the economic environment) defined by S&P and At December 31, 2025, the investment securities portfolio consisted of debt securities with an average credit rating of AA+ (based upon external ratings where available, and where not available, based primarily upon internal risk ratings)." - Updated: "The Firm's internal risk ratings generally align with the qualitative characteristics (e.g., borrower capacity to meet financial commitments and vulnerability to changes in the economic environment) defined by S&P and The Firm's internal risk ratings generally align with the qualitative characteristics (e.g., borrower capacity to meet financial commitments and vulnerability to changes in the economic environment) defined by S&P and Moody's, however, the quantitative characteristics (e.g., probability of default ("PD") and loss given default ("LGD")) may differ as they reflect internal historical experiences and assumptions." **Prior (2025):** (a)Represents the amount of portfolio layer method basis adjustments related to AFS securities hedged in a closed portfolio. Under U.S. GAAP portfolio layer method basis adjustments are not allocated to individual securities, however the amounts impact the unrealized gains or losses in the table for the types of securities being hedged. Refer to Note 1 and Note 5 for additional information. (b)The Firm purchased $4.7 billion, $4.1 billion and $33.7 billion of HTM securities for the years ended December 31, 2024, 2023 and 2022, respectively. (c)Effective January 1, 2023, the Firm adopted the portfolio layer method hedge accounting guidance which permitted a transfer of HTM securities to AFS upon adoption. The Firm transferred obligations of U.S. states and municipalities with a carrying value of $7.1 billion resulting in the recognition of $38 million net pre-tax unrealized losses in AOCI. This transfer was a non-cash transaction. Refer to Note 24 for additional information. (d)The amortized cost of investment securities is reported net of allowance for credit losses of $152 million, $128 million and $96 million at December 31, 2024, 2023 and 2022, respectively. (e)Excludes $3.7 billion and $2.8 billion of accrued interest receivable at December 31, 2024 and 2023, respectively, included in accrued interest and accounts receivable on the Consolidated balance sheets. The Firm generally does not recognize an allowance for credit losses on accrued interest receivable, consistent with its policy to write them off no later than 90 days past due by reversing interest income. The Firm did not reverse through interest income any accrued interest receivable for the years ended December 31, 2024 and 2023. 236JPMorgan Chase & Co./2024 Form 10-K 236JPMorgan Chase & Co./2024 Form 10-K 236JPMorgan Chase & Co./2024 Form 10-K 236 JPMorgan Chase & Co./2024 Form 10-K At December 31, 2024, the investment securities portfolio consisted of debt securities with an average credit rating of AA+ (based upon external ratings where available, and where not available, based primarily upon internal risk ratings). Risk ratings are used to identify the credit quality of securities and differentiate risk within the portfolio. The Firm's internal risk ratings generally align with the qualitative characteristics (e.g., borrower capacity to meet financial commitments and vulnerability to changes in the economic environment) defined by S&P and Moody's, however the quantitative characteristics (e.g., probability of default ("PD") and loss given default ("LGD")) may differ as they reflect internal historical experiences and assumptions. Risk ratings are assigned at acquisition, reviewed on a regular and ongoing basis by Credit Risk Management and adjusted as necessary over the life of the investment for updated information affecting the issuer's ability to fulfill its obligations. At December 31, 2024, the investment securities portfolio consisted of debt securities with an average credit rating of AA+ (based upon external ratings where available, and where not available, based primarily upon internal risk ratings). Risk ratings are used to identify the credit quality of securities and differentiate risk within the portfolio. The Firm's internal risk ratings generally align with the qualitative characteristics (e.g., borrower capacity to meet financial commitments and vulnerability to changes in the economic environment) defined by S&P and At December 31, 2024, the investment securities portfolio consisted of debt securities with an average credit rating of AA+ (based upon external ratings where available, and where not available, based primarily upon internal risk ratings). Risk ratings are used to identify the credit quality of securities and differentiate risk within the portfolio. The Firm's internal risk ratings generally align with the qualitative characteristics (e.g., borrower capacity to meet financial commitments and vulnerability to changes in the economic environment) defined by S&P and The Firm's internal risk ratings generally align with the qualitative characteristics (e.g., borrower capacity to meet financial commitments and vulnerability to changes in the economic environment) defined by S&P and Moody's, however the quantitative characteristics (e.g., probability of default ("PD") and loss given default ("LGD")) may differ as they reflect internal historical experiences and assumptions. Risk ratings are assigned at acquisition, reviewed on a regular and ongoing basis by Credit Risk Management and adjusted as necessary over the life of the investment for updated information affecting the issuer's ability to fulfill its obligations. Moody's, however the quantitative characteristics (e.g., probability of default ("PD") and loss given default ("LGD")) may differ as they reflect internal historical experiences and assumptions. Risk ratings are assigned at acquisition, reviewed on a regular and ongoing basis by Credit Risk Management and adjusted as necessary over the life of the investment for updated information affecting the issuer's ability to fulfill its obligations. **Current (2026):** At December 31, 2025, the investment securities portfolio consisted of debt securities with an average credit rating of AA+ (based upon external ratings where available, and where not available, based primarily upon internal risk ratings). Risk ratings are used to identify the credit quality of securities and differentiate risk within the portfolio. The Firm's internal risk ratings generally align with the qualitative characteristics (e.g., borrower capacity to meet financial commitments and vulnerability to changes in the economic environment) defined by S&P and Moody's, however, the quantitative characteristics (e.g., probability of default ("PD") and loss given default ("LGD")) may differ as they reflect internal historical experiences and assumptions. Risk ratings are assigned at acquisition, reviewed on a regular and ongoing basis by Credit Risk Management and adjusted as necessary over the life of the investment for updated information affecting the issuer's ability to fulfill its obligations. At December 31, 2025, the investment securities portfolio consisted of debt securities with an average credit rating of AA+ (based upon external ratings where available, and where not available, based primarily upon internal risk ratings). Risk ratings are used to identify the credit quality of securities and differentiate risk within the portfolio. The Firm's internal risk ratings generally align with the qualitative characteristics (e.g., borrower capacity to meet financial commitments and vulnerability to changes in the economic environment) defined by S&P and At December 31, 2025, the investment securities portfolio consisted of debt securities with an average credit rating of AA+ (based upon external ratings where available, and where not available, based primarily upon internal risk ratings). Risk ratings are used to identify the credit quality of securities and differentiate risk within the portfolio. The Firm's internal risk ratings generally align with the qualitative characteristics (e.g., borrower capacity to meet financial commitments and vulnerability to changes in the economic environment) defined by S&P and The Firm's internal risk ratings generally align with the qualitative characteristics (e.g., borrower capacity to meet financial commitments and vulnerability to changes in the economic environment) defined by S&P and Moody's, however, the quantitative characteristics (e.g., probability of default ("PD") and loss given default ("LGD")) may differ as they reflect internal historical experiences and assumptions. Risk ratings are assigned at acquisition, reviewed on a regular and ongoing basis by Credit Risk Management and adjusted as necessary over the life of the investment for updated information affecting the issuer's ability to fulfill its obligations. Moody's, however, the quantitative characteristics (e.g., probability of default ("PD") and loss given default ("LGD")) may differ as they reflect internal historical experiences and assumptions. Risk ratings are assigned at acquisition, reviewed on a regular and ongoing basis by Credit Risk Management and adjusted as necessary over the life of the investment for updated information affecting the issuer's ability to fulfill its obligations. --- ## Modified Risk: Mortgage servicing rights **Key changes:** - Updated: "JPMorgan Chase & Co./2025 Form 10-K273 JPMorgan Chase & Co./2025 Form 10-K273 JPMorgan Chase & Co./2025 Form 10-K273 JPMorgan Chase & Co./2025 Form 10-K 273" **Prior (2025):** MSRs represent the fair value of expected future cash flows for performing servicing activities for others. The fair value considers estimated future servicing fees and ancillary revenue, offset by estimated costs to service the loans, and generally declines over time as net servicing cash flows are received, effectively amortizing the MSR asset against contractual servicing and ancillary fee income. MSRs are either purchased from third parties or recognized upon sale or securitization of mortgage loans if servicing is retained. As permitted by U.S. GAAP, the Firm has elected to account for its MSRs at fair value. The Firm treats its MSRs as a single class of servicing assets based on the availability of market inputs used to measure the fair value of its MSR asset and its treatment of MSRs as one aggregate pool for risk management purposes. The Firm estimates the fair value of MSRs using an option-adjusted spread ("OAS") model, which projects MSR cash flows over multiple interest rate scenarios in conjunction with the Firm's prepayment model, and then discounts these cash flows at risk-adjusted rates. The model considers portfolio characteristics, contractually specified servicing fees, prepayment assumptions, delinquency rates, costs to service, late charges and other ancillary revenue, and other economic factors. The Firm compares fair value estimates and assumptions to observable market data where available, and also considers recent market activity and actual portfolio experience. JPMorgan Chase & Co./2024 Form 10-K281 JPMorgan Chase & Co./2024 Form 10-K281 JPMorgan Chase & Co./2024 Form 10-K281 JPMorgan Chase & Co./2024 Form 10-K 281 **Current (2026):** MSRs represent the fair value of expected future cash flows for performing servicing activities for others. The fair value considers estimated future servicing fees and ancillary revenue, offset by estimated costs to service the loans, and generally declines over time as net servicing cash flows are received, effectively amortizing the MSR asset against contractual servicing and ancillary fee income. MSRs are either purchased from third parties or recognized upon sale or securitization of mortgage loans if servicing is retained. As permitted by U.S. GAAP, the Firm has elected to account for its MSRs at fair value. The Firm treats its MSRs as a single class of servicing assets based on the availability of market inputs used to measure the fair value of its MSR asset and its treatment of MSRs as one aggregate pool for risk management purposes. The Firm estimates the fair value of MSRs using an option-adjusted spread ("OAS") model, which projects MSR cash flows over multiple interest rate scenarios in conjunction with the Firm's prepayment model, and then discounts these cash flows at risk-adjusted rates. The model considers portfolio characteristics, contractually specified servicing fees, prepayment assumptions, delinquency rates, costs to service, late charges and other ancillary revenue, and other economic factors. The Firm compares fair value estimates and assumptions to observable market data where available, and also considers recent market activity and actual portfolio experience. JPMorgan Chase & Co./2025 Form 10-K273 JPMorgan Chase & Co./2025 Form 10-K273 JPMorgan Chase & Co./2025 Form 10-K273 JPMorgan Chase & Co./2025 Form 10-K 273 --- ## Modified Risk: other commitments **Key changes:** - Updated: "Generally, JPMorganChase provides lending-related financial instruments (e.g., commitments and guarantees) to address the financing needs of its customers and clients." - Updated: "Most of these commitments and guarantees have historically been refinanced, extended, cancelled, or expired without being fully drawn or a default occurring." - Updated: "Refer to Note 13 for further information regarding the allowance for credit losses on lending-related commitments.The following table summarizes the contractual amounts and carrying values of off-balance sheet lending-related financial instruments, guarantees and other commitments at December 31, 2025 and 2024." - Updated: "The Firm can generally reduce or cancel these commitments, in accordance with the contract, or to the extent otherwise permitted by law, including when there has been a demonstrable decline in the creditworthiness of the borrower or significant decrease in the value of underlying property." - Updated: "Most of these commitments and guarantees have historically been refinanced, extended, cancelled, or expired without being fully drawn or a default occurring." **Prior (2025):** JPMorganChase provides lending-related financial instruments (e.g., commitments and guarantees) to address the financing needs of its customers and clients. The contractual amount of these financial instruments represents the maximum possible credit risk to the Firm should the customer or client draw upon the commitment or the Firm be required to fulfill its obligation under the guarantee, and should the customer or client subsequently fail to perform according to the terms of the contract. Most of these commitments and guarantees have historically been refinanced, extended, cancelled, or expired without being drawn or a default occurring. As a result, the total contractual amount of these instruments is not, in the Firm's view, representative of its expected future credit exposure or funding requirements. To provide for expected credit losses in wholesale and certain consumer lending-related commitments, an allowance for credit losses on lending-related commitments is maintained. Refer to Note 13 for further information regarding the allowance for credit losses on lending-related commitments.The following table summarizes the contractual amounts and carrying values of off-balance sheet lending-related financial instruments, guarantees and other commitments at December 31, 2024 and 2023. The amounts in the table below for credit card, home equity and certain scored business banking lending-related commitments represent the total available credit for these products. The Firm has not experienced, and does not anticipate, that all available lines of credit for these commitments will be utilized at the same time. The Firm can reduce or cancel these commitments, in accordance with the contract, or to the extent otherwise permitted by law, including when there has been a demonstrable decline in the creditworthiness of the borrower or significant decrease in the value of underlying property. JPMorganChase provides lending-related financial instruments (e.g., commitments and guarantees) to address the financing needs of its customers and clients. The contractual amount of these financial instruments represents the maximum possible credit risk to the Firm should the customer or client draw upon the commitment or the Firm be required to fulfill its obligation under the guarantee, and should the customer or client subsequently fail to perform according to the terms of the contract. Most of these commitments and guarantees have historically been refinanced, extended, cancelled, or expired without being drawn or a default occurring. As a result, the total contractual amount of these instruments is not, in the Firm's view, representative of its expected future credit exposure or funding requirements. To provide for expected credit losses in wholesale and certain consumer lending-related commitments, an allowance for credit losses on lending-related commitments is maintained. Refer to Note 13 for further information regarding the allowance for credit losses on lending-related commitments. JPMorganChase provides lending-related financial instruments (e.g., commitments and guarantees) to address the financing needs of its customers and clients. The contractual amount of these financial instruments represents the maximum possible credit risk to the Firm should the customer or client draw upon the commitment or the Firm be required to fulfill its obligation under the guarantee, and should the customer or client subsequently fail to perform according to the terms of the contract. Most of these commitments and guarantees have historically been refinanced, extended, cancelled, or expired without being drawn or a default occurring. As a result, the total contractual amount of these instruments is not, in the Firm's view, representative of its expected future credit exposure or funding requirements. To provide for expected credit losses in wholesale and certain consumer lending-related commitments, an allowance for credit losses on lending-related commitments is maintained. Refer to Note 13 for further information regarding the allowance for credit losses on lending-related commitments. The following table summarizes the contractual amounts and carrying values of off-balance sheet lending-related financial instruments, guarantees and other commitments at December 31, 2024 and 2023. The amounts in the table below for credit card, home equity and certain scored business banking lending-related commitments represent the total available credit for these products. The Firm has not experienced, and does not anticipate, that all available lines of credit for these commitments will be utilized at the same time. The Firm can reduce or cancel these commitments, in accordance with the contract, or to the extent otherwise permitted by law, including when there has been a demonstrable decline in the creditworthiness of the borrower or significant decrease in the value of underlying property. The following table summarizes the contractual amounts and carrying values of off-balance sheet lending-related financial instruments, guarantees and other commitments at December 31, 2024 and 2023. The amounts in the table below for credit card, home equity and certain scored business banking lending-related commitments represent the total available credit for these products. The Firm has not experienced, and does not anticipate, that all available lines of credit for these commitments will be utilized at the same time. The Firm can reduce or cancel these commitments, in accordance with the contract, or to the extent otherwise permitted by law, including when there has been a demonstrable decline in the creditworthiness of the borrower or significant decrease in the value of underlying property. 302JPMorgan Chase & Co./2024 Form 10-K 302JPMorgan Chase & Co./2024 Form 10-K 302JPMorgan Chase & Co./2024 Form 10-K 302 JPMorgan Chase & Co./2024 Form 10-K Off-balance sheet lending-related financial instruments, guarantees and other commitmentsContractual amountCarrying value(h)(i)2024202320242023By remaining maturityas of December 31, (in millions)Expires in 1 year or lessExpires after 1 year through 3 yearsExpires after 3 years through 5 yearsExpires after 5 yearsTotalTotalLending-relatedConsumer, excluding credit card:Residential Real Estate(a)$10,838 $7,240 $4,601 $7,670 $30,349 $30,125 $534 (j)$678 (j)Auto and other10,833 14 5 3,643 14,495 15,278 37 (j)148 (j)Total consumer, excluding credit card21,671 7,254 4,606 11,313 44,844 45,403 571 826 Credit card(b)1,001,311 - - - 1,001,311 915,658 - - Total consumer(c)1,022,982 7,254 4,606 11,313 1,046,155 961,061 571 826 Wholesale:Other unfunded commitments to extend credit(d)101,500 199,878 172,066 24,993 498,437 503,526 2,608 (j)2,797 (j)Standby letters of credit and other financial guarantees(d)15,825 8,506 3,780 565 28,676 28,872 473 479 Other letters of credit(d)3,958 278 21 97 4,354 4,388 37 37 Total wholesale(c)121,283 208,662 175,867 25,655 531,467 536,786 3,118 3,313 Total lending-related$1,144,265 $215,916 $180,473 $36,968 $1,577,622 $1,497,847 $3,689 $4,139 Other guarantees and commitmentsSecurities lending indemnification agreements and guarantees(e)$310,046 $ - $ - $ - $310,046 $283,664 $ - $ - Derivatives qualifying as guarantees902 343 9,890 38,493 49,628 54,562 113 89 Unsettled resale and securities borrowed agreements 115,939 - - - 115,939 95,106 2 - Unsettled repurchase and securities loaned agreements66,986 - - - 66,986 60,724 (2) - Loan sale and securitization-related indemnifications:Mortgage repurchase liabilityNANANANANANA45 76 Loans sold with recourseNANANANA1,189 803 23 24 Exchange & clearing house guarantees and commitments(f)401,486 - - - 401,486 265,887 - - Other guarantees and commitments (g)10,652 425 435 884 12,396 15,074 28 38 Carrying value(h)(i) By remaining maturity as of December 31, (in millions) Residential Real Estate(a) (j) (j) (j) (j) Credit card(b) **Current (2026):** Generally, JPMorganChase provides lending-related financial instruments (e.g., commitments and guarantees) to address the financing needs of its customers and clients. The contractual amount of these financial instruments represents the maximum possible credit risk to the Firm should the customer or client draw upon the commitment or the Firm be required to fulfill its obligation under the guarantee, and should the customer or client subsequently fail to perform according to the terms of the contract. Most of these commitments and guarantees have historically been refinanced, extended, cancelled, or expired without being fully drawn or a default occurring. As a result, the total contractual amount of these instruments is not, in the Firm's view, representative of its expected future credit exposure or funding requirements. To provide for expected credit losses in wholesale and certain consumer lending-related commitments, an allowance for credit losses on lending-related commitments is maintained. Refer to Note 13 for further information regarding the allowance for credit losses on lending-related commitments.The following table summarizes the contractual amounts and carrying values of off-balance sheet lending-related financial instruments, guarantees and other commitments at December 31, 2025 and 2024. The amounts in the table below for credit card, home equity and certain scored business banking lending-related commitments represent the total available credit for these products. The Firm has not experienced, and does not anticipate, that all available lines of credit for these commitments will be utilized at the same time. The Firm can generally reduce or cancel these commitments, in accordance with the contract, or to the extent otherwise permitted by law, including when there has been a demonstrable decline in the creditworthiness of the borrower or significant decrease in the value of underlying property. Generally, JPMorganChase provides lending-related financial instruments (e.g., commitments and guarantees) to address the financing needs of its customers and clients. The contractual amount of these financial instruments represents the maximum possible credit risk to the Firm should the customer or client draw upon the commitment or the Firm be required to fulfill its obligation under the guarantee, and should the customer or client subsequently fail to perform according to the terms of the contract. Most of these commitments and guarantees have historically been refinanced, extended, cancelled, or expired without being fully drawn or a default occurring. As a result, the total contractual amount of these instruments is not, in the Firm's view, representative of its expected future credit exposure or funding requirements. To provide for expected credit losses in wholesale and certain consumer lending-related commitments, an allowance for credit losses on lending-related commitments is maintained. Refer to Note 13 for further information regarding the allowance for credit losses on lending-related commitments. Generally, JPMorganChase provides lending-related financial instruments (e.g., commitments and guarantees) to address the financing needs of its customers and clients. The contractual amount of these financial instruments represents the maximum possible credit risk to the Firm should the customer or client draw upon the commitment or the Firm be required to fulfill its obligation under the guarantee, and should the customer or client subsequently fail to perform according to the terms of the contract. Most of these commitments and guarantees have historically been refinanced, extended, cancelled, or expired without being fully drawn or a default occurring. As a result, the total contractual amount of these instruments is not, in the Firm's view, representative of its expected future credit exposure or funding requirements. To provide for expected credit losses in wholesale and certain consumer lending-related commitments, an allowance for credit losses on lending-related commitments is maintained. Refer to Note 13 for further information regarding the allowance for credit losses on lending-related commitments. The following table summarizes the contractual amounts and carrying values of off-balance sheet lending-related financial instruments, guarantees and other commitments at December 31, 2025 and 2024. The amounts in the table below for credit card, home equity and certain scored business banking lending-related commitments represent the total available credit for these products. The Firm has not experienced, and does not anticipate, that all available lines of credit for these commitments will be utilized at the same time. The Firm can generally reduce or cancel these commitments, in accordance with the contract, or to the extent otherwise permitted by law, including when there has been a demonstrable decline in the creditworthiness of the borrower or significant decrease in the value of underlying property. The following table summarizes the contractual amounts and carrying values of off-balance sheet lending-related financial instruments, guarantees and other commitments at December 31, 2025 and 2024. The amounts in the table below for credit card, home equity and certain scored business banking lending-related commitments represent the total available credit for these products. The Firm has not experienced, and does not anticipate, that all available lines of credit for these commitments will be utilized at the same time. The Firm can generally reduce or cancel these commitments, in accordance with the contract, or to the extent otherwise permitted by law, including when there has been a demonstrable decline in the creditworthiness of the borrower or significant decrease in the value of underlying property. JPMorgan Chase & Co./2025 Form 10-K295 JPMorgan Chase & Co./2025 Form 10-K295 JPMorgan Chase & Co./2025 Form 10-K295 JPMorgan Chase & Co./2025 Form 10-K 295 --- ## Modified Risk: Note 23 - Earnings per share **Key changes:** - Updated: "For each of the periods presented in the table below, diluted EPS calculated under the two-class method was more dilutive.The following table presents the calculation of net income applicable to common stockholders and basic and diluted EPS for the years ended December 31, 2025, 2024 and 2023.Year ended December 31,(in millions, except per share amounts)202520242023Basic earnings per shareNet income$57,048 $58,471 $49,552 Less: Preferred stock dividends1,099 1,259 1,501 Net income applicable to common equity55,949 57,212 48,051 Less: Dividends and undistributed earnings allocated to participating securities268 344 291 Net income applicable to common stockholders$55,681 $56,868 $47,760 Total weighted-average basic shares outstanding2,776.5 2,873.9 2,938.6 Net income per share$20.05 $19.79 $16.25 Diluted earnings per shareNet income applicable to common stockholders$55,681 $56,868 $47,760 Total weighted-average basic shares outstanding2,776.5 2,873.9 2,938.6 Add: Dilutive impact of unvested PSUs, nondividend-earning RSUs and SARs5.0 5.1 4.5 Total weighted-average diluted shares outstanding2,781.5 2,879.0 2,943.1 Net income per share$20.02 $19.75 $16.23 Basic earnings per share ("EPS") is calculated using the two-class method." - Updated: "The following table presents the calculation of net income applicable to common stockholders and basic and diluted EPS for the years ended December 31, 2025, 2024 and 2023.Year ended December 31,(in millions, except per share amounts)202520242023Basic earnings per shareNet income$57,048 $58,471 $49,552 Less: Preferred stock dividends1,099 1,259 1,501 Net income applicable to common equity55,949 57,212 48,051 Less: Dividends and undistributed earnings allocated to participating securities268 344 291 Net income applicable to common stockholders$55,681 $56,868 $47,760 Total weighted-average basic shares outstanding2,776.5 2,873.9 2,938.6 Net income per share$20.05 $19.79 $16.25 Diluted earnings per shareNet income applicable to common stockholders$55,681 $56,868 $47,760 Total weighted-average basic shares outstanding2,776.5 2,873.9 2,938.6 Add: Dilutive impact of unvested PSUs, nondividend-earning RSUs and SARs5.0 5.1 4.5 Total weighted-average diluted shares outstanding2,781.5 2,879.0 2,943.1 Net income per share$20.02 $19.75 $16.23 The following table presents the calculation of net income applicable to common stockholders and basic and diluted EPS for the years ended December 31, 2025, 2024 and 2023." **Prior (2025):** Basic earnings per share ("EPS") is calculated using the two-class method. Under the two-class method, all earnings (distributed and undistributed) are allocated to common stock and participating securities. JPMorganChase grants RSUs under its share-based compensation programs, predominantly all of which entitle recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to dividends paid to holders of the Firm's common stock. These unvested RSUs meet the definition of participating securities based on their respective rights to receive nonforfeitable dividends, and they are treated as a separate class of securities in computing basic EPS. Participating securities are not included as incremental shares in computing diluted EPS; refer to Note 9 for additional information.Diluted EPS incorporates the potential impact of contingently issuable shares, including awards which require future service as a condition of delivery of the underlying common stock. Diluted EPS is calculated under both the two-class and treasury stock methods, and the more dilutive amount is reported. For each of the periods presented in the table below, diluted EPS calculated under the two-class method was more dilutive.The following table presents the calculation of net income applicable to common stockholders and basic and diluted EPS for the years ended December 31, 2024, 2023 and 2022.Year ended December 31,(in millions, except per share amounts)202420232022Basic earnings per shareNet income$58,471 $49,552 $37,676 Less: Preferred stock dividends1,259 1,501 1,595 Net income applicable to common equity57,212 48,051 36,081 Less: Dividends and undistributed earnings allocated to participating securities344 291 189 Net income applicable to common stockholders$56,868 $47,760 $35,892 Total weighted-average basic shares outstanding2,873.9 2,938.6 2,965.8 Net income per share$19.79 $16.25 $12.10 Diluted earnings per shareNet income applicable to common stockholders$56,868 $47,760 $35,892 Total weighted-average basic shares outstanding2,873.9 2,938.6 2,965.8 Add: Dilutive impact of unvested PSUs, nondividend-earning RSUs and SARs5.1 4.5 4.2 Total weighted-average diluted shares outstanding2,879.0 2,943.1 2,970.0 Net income per share$19.75 $16.23 $12.09 Basic earnings per share ("EPS") is calculated using the two-class method. Under the two-class method, all earnings (distributed and undistributed) are allocated to common stock and participating securities. JPMorganChase grants RSUs under its share-based compensation programs, predominantly all of which entitle recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to dividends paid to holders of the Firm's common stock. These unvested RSUs meet the definition of participating securities based on their respective rights to receive nonforfeitable dividends, and they are treated as a separate class of securities in computing basic EPS. Participating securities are not included as incremental shares in computing diluted EPS; refer to Note 9 for additional information.Diluted EPS incorporates the potential impact of contingently issuable shares, including awards which require future service as a condition of delivery of the underlying common stock. Diluted EPS is calculated under both the two-class and treasury stock methods, and the more dilutive amount is reported. For each of the periods presented in the table below, diluted EPS calculated under the two-class method was more dilutive. Basic earnings per share ("EPS") is calculated using the two-class method. Under the two-class method, all earnings (distributed and undistributed) are allocated to common stock and participating securities. JPMorganChase grants RSUs under its share-based compensation programs, predominantly all of which entitle recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to dividends paid to holders of the Firm's common stock. These unvested RSUs meet the definition of participating securities based on their respective rights to receive nonforfeitable dividends, and they are treated as a separate class of securities in computing basic EPS. Participating securities are not included as incremental shares in computing diluted EPS; refer to Note 9 for additional information. Diluted EPS incorporates the potential impact of contingently issuable shares, including awards which require future service as a condition of delivery of the underlying common stock. Diluted EPS is calculated under both the two-class and treasury stock methods, and the more dilutive amount is reported. For each of the periods presented in the table below, diluted EPS calculated under the two-class method was more dilutive. The following table presents the calculation of net income applicable to common stockholders and basic and diluted EPS for the years ended December 31, 2024, 2023 and 2022.Year ended December 31,(in millions, except per share amounts)202420232022Basic earnings per shareNet income$58,471 $49,552 $37,676 Less: Preferred stock dividends1,259 1,501 1,595 Net income applicable to common equity57,212 48,051 36,081 Less: Dividends and undistributed earnings allocated to participating securities344 291 189 Net income applicable to common stockholders$56,868 $47,760 $35,892 Total weighted-average basic shares outstanding2,873.9 2,938.6 2,965.8 Net income per share$19.79 $16.25 $12.10 Diluted earnings per shareNet income applicable to common stockholders$56,868 $47,760 $35,892 Total weighted-average basic shares outstanding2,873.9 2,938.6 2,965.8 Add: Dilutive impact of unvested PSUs, nondividend-earning RSUs and SARs5.1 4.5 4.2 Total weighted-average diluted shares outstanding2,879.0 2,943.1 2,970.0 Net income per share$19.75 $16.23 $12.09 The following table presents the calculation of net income applicable to common stockholders and basic and diluted EPS for the years ended December 31, 2024, 2023 and 2022. Year ended December 31,(in millions, except per share amounts)202420232022Basic earnings per shareNet income$58,471 $49,552 $37,676 Less: Preferred stock dividends1,259 1,501 1,595 Net income applicable to common equity57,212 48,051 36,081 Less: Dividends and undistributed earnings allocated to participating securities344 291 189 Net income applicable to common stockholders$56,868 $47,760 $35,892 Total weighted-average basic shares outstanding2,873.9 2,938.6 2,965.8 Net income per share$19.79 $16.25 $12.10 Diluted earnings per shareNet income applicable to common stockholders$56,868 $47,760 $35,892 Total weighted-average basic shares outstanding2,873.9 2,938.6 2,965.8 Add: Dilutive impact of unvested PSUs, nondividend-earning RSUs and SARs5.1 4.5 4.2 Total weighted-average diluted shares outstanding2,879.0 2,943.1 2,970.0 Net income per share$19.75 $16.23 $12.09 **Current (2026):** Basic earnings per share ("EPS") is calculated using the two-class method. Under the two-class method, all earnings (distributed and undistributed) are allocated to common stock and participating securities. JPMorganChase grants RSUs under its share-based compensation programs, predominantly all of which entitle recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to dividends paid to holders of the Firm's common stock. These unvested RSUs meet the definition of participating securities based on their respective rights to receive nonforfeitable dividends, and they are treated as a separate class of securities in computing basic EPS. Participating securities are not included as incremental shares in computing diluted EPS; refer to Note 9 for additional information.Diluted EPS incorporates the potential impact of contingently issuable shares, including awards which require future service as a condition of delivery of the underlying common stock. Diluted EPS is calculated under both the two-class and treasury stock methods, and the more dilutive amount is reported. For each of the periods presented in the table below, diluted EPS calculated under the two-class method was more dilutive.The following table presents the calculation of net income applicable to common stockholders and basic and diluted EPS for the years ended December 31, 2025, 2024 and 2023.Year ended December 31,(in millions, except per share amounts)202520242023Basic earnings per shareNet income$57,048 $58,471 $49,552 Less: Preferred stock dividends1,099 1,259 1,501 Net income applicable to common equity55,949 57,212 48,051 Less: Dividends and undistributed earnings allocated to participating securities268 344 291 Net income applicable to common stockholders$55,681 $56,868 $47,760 Total weighted-average basic shares outstanding2,776.5 2,873.9 2,938.6 Net income per share$20.05 $19.79 $16.25 Diluted earnings per shareNet income applicable to common stockholders$55,681 $56,868 $47,760 Total weighted-average basic shares outstanding2,776.5 2,873.9 2,938.6 Add: Dilutive impact of unvested PSUs, nondividend-earning RSUs and SARs5.0 5.1 4.5 Total weighted-average diluted shares outstanding2,781.5 2,879.0 2,943.1 Net income per share$20.02 $19.75 $16.23 Basic earnings per share ("EPS") is calculated using the two-class method. Under the two-class method, all earnings (distributed and undistributed) are allocated to common stock and participating securities. JPMorganChase grants RSUs under its share-based compensation programs, predominantly all of which entitle recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to dividends paid to holders of the Firm's common stock. These unvested RSUs meet the definition of participating securities based on their respective rights to receive nonforfeitable dividends, and they are treated as a separate class of securities in computing basic EPS. Participating securities are not included as incremental shares in computing diluted EPS; refer to Note 9 for additional information.Diluted EPS incorporates the potential impact of contingently issuable shares, including awards which require future service as a condition of delivery of the underlying common stock. Diluted EPS is calculated under both the two-class and treasury stock methods, and the more dilutive amount is reported. For each of the periods presented in the table below, diluted EPS calculated under the two-class method was more dilutive. Basic earnings per share ("EPS") is calculated using the two-class method. Under the two-class method, all earnings (distributed and undistributed) are allocated to common stock and participating securities. JPMorganChase grants RSUs under its share-based compensation programs, predominantly all of which entitle recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to dividends paid to holders of the Firm's common stock. These unvested RSUs meet the definition of participating securities based on their respective rights to receive nonforfeitable dividends, and they are treated as a separate class of securities in computing basic EPS. Participating securities are not included as incremental shares in computing diluted EPS; refer to Note 9 for additional information. Diluted EPS incorporates the potential impact of contingently issuable shares, including awards which require future service as a condition of delivery of the underlying common stock. Diluted EPS is calculated under both the two-class and treasury stock methods, and the more dilutive amount is reported. For each of the periods presented in the table below, diluted EPS calculated under the two-class method was more dilutive. The following table presents the calculation of net income applicable to common stockholders and basic and diluted EPS for the years ended December 31, 2025, 2024 and 2023.Year ended December 31,(in millions, except per share amounts)202520242023Basic earnings per shareNet income$57,048 $58,471 $49,552 Less: Preferred stock dividends1,099 1,259 1,501 Net income applicable to common equity55,949 57,212 48,051 Less: Dividends and undistributed earnings allocated to participating securities268 344 291 Net income applicable to common stockholders$55,681 $56,868 $47,760 Total weighted-average basic shares outstanding2,776.5 2,873.9 2,938.6 Net income per share$20.05 $19.79 $16.25 Diluted earnings per shareNet income applicable to common stockholders$55,681 $56,868 $47,760 Total weighted-average basic shares outstanding2,776.5 2,873.9 2,938.6 Add: Dilutive impact of unvested PSUs, nondividend-earning RSUs and SARs5.0 5.1 4.5 Total weighted-average diluted shares outstanding2,781.5 2,879.0 2,943.1 Net income per share$20.02 $19.75 $16.23 The following table presents the calculation of net income applicable to common stockholders and basic and diluted EPS for the years ended December 31, 2025, 2024 and 2023. Year ended December 31,(in millions, except per share amounts)202520242023Basic earnings per shareNet income$57,048 $58,471 $49,552 Less: Preferred stock dividends1,099 1,259 1,501 Net income applicable to common equity55,949 57,212 48,051 Less: Dividends and undistributed earnings allocated to participating securities268 344 291 Net income applicable to common stockholders$55,681 $56,868 $47,760 Total weighted-average basic shares outstanding2,776.5 2,873.9 2,938.6 Net income per share$20.05 $19.79 $16.25 Diluted earnings per shareNet income applicable to common stockholders$55,681 $56,868 $47,760 Total weighted-average basic shares outstanding2,776.5 2,873.9 2,938.6 Add: Dilutive impact of unvested PSUs, nondividend-earning RSUs and SARs5.0 5.1 4.5 Total weighted-average diluted shares outstanding2,781.5 2,879.0 2,943.1 Net income per share$20.02 $19.75 $16.23 --- ## Modified Risk: Notes to consolidated financial statements **Key changes:** - Updated: "The weighted-average contractual interest rates for total long-term debt excluding structured notes accounted for at fair value were 3.89% and 3.82% as of December 31, 2025 and 2024, respectively." - Updated: "The modified weighted-average interest rates for total long-term debt, including the effects of related derivative instruments, were 4.75% and 5.15% as of December 31, 2025 and 2024, respectively." - Updated: "The amount of such guaranteed long-term debt and structured notes was $47.6 billion and $41.2 billion at December 31, 2025 and 2024, respectively." - Updated: "The weighted-average contractual interest rates for total long-term debt excluding structured notes accounted for at fair value were 3.89% and 3.82% as of December 31, 2025 and 2024, respectively." - Updated: "The modified weighted-average interest rates for total long-term debt, including the effects of related derivative instruments, were 4.75% and 5.15% as of December 31, 2025 and 2024, respectively." **Prior (2025):** The weighted-average contractual interest rates for total long-term debt excluding structured notes accounted for at fair value were 3.82% and 3.65% as of December 31, 2024 and 2023, respectively. In order to modify exposure to interest rate and currency exchange rate movements, JPMorganChase utilizes derivative instruments, primarily interest rate and cross-currency interest rate swaps, in conjunction with some of its debt issuances. The use of these instruments modifies the Firm's interest expense on the associated debt. The modified weighted-average interest rates for total long-term debt, including the effects of related derivative instruments, were 5.15% and 5.20% as of December 31, 2024 and 2023, respectively. JPMorgan Chase & Co. has guaranteed certain long-term debt of its subsidiaries, including structured notes. These guarantees rank pari passu with the Firm's other unsecured and unsubordinated indebtedness. The amount of such guaranteed long-term debt and structured notes was $41.2 billion and $41.1 billion at December 31, 2024 and 2023, respectively. The Firm's unsecured debt does not contain requirements that would call for an acceleration of payments, maturities or changes in the structure of the existing debt, provide any limitations on future borrowings or require additional collateral, based on unfavorable changes in the Firm's credit ratings, financial ratios, earnings or stock price. The weighted-average contractual interest rates for total long-term debt excluding structured notes accounted for at fair value were 3.82% and 3.65% as of December 31, 2024 and 2023, respectively. In order to modify exposure to interest rate and currency exchange rate movements, JPMorganChase utilizes derivative instruments, primarily interest rate and cross-currency interest rate swaps, in conjunction with some of its debt issuances. The use of these instruments modifies the Firm's interest expense on the associated debt. The modified weighted-average interest rates for total long-term debt, including the effects of related derivative instruments, were 5.15% and 5.20% as of December 31, 2024 and 2023, respectively. JPMorgan Chase & Co. has guaranteed certain long-term debt of its subsidiaries, including structured notes. These guarantees rank pari passu with the Firm's other unsecured and unsubordinated indebtedness. The amount of such guaranteed long-term debt and structured notes was $41.2 billion and $41.1 billion at December 31, 2024 and 2023, respectively. The Firm's unsecured debt does not contain requirements that would call for an acceleration of payments, maturities or changes in the structure of the existing debt, provide any limitations on future borrowings or require additional collateral, based on unfavorable changes in the Firm's credit ratings, financial ratios, earnings or stock price. The weighted-average contractual interest rates for total long-term debt excluding structured notes accounted for at fair value were 3.82% and 3.65% as of December 31, 2024 and 2023, respectively. In order to modify exposure to interest rate and currency exchange rate movements, JPMorganChase utilizes derivative instruments, primarily interest rate and cross-currency interest rate swaps, in conjunction with some of its debt issuances. The use of these instruments modifies the Firm's interest expense on the associated debt. The modified weighted-average interest rates for total long-term debt, including the effects of related derivative instruments, were 5.15% and 5.20% as of December 31, 2024 and 2023, respectively. JPMorgan Chase & Co. has guaranteed certain long-term debt of its subsidiaries, including structured notes. These guarantees rank pari passu with the Firm's other unsecured and unsubordinated indebtedness. The amount of such guaranteed long-term debt and structured notes was $41.2 billion and $41.1 billion at December 31, 2024 and 2023, respectively. The Firm's unsecured debt does not contain requirements that would call for an acceleration of payments, maturities or changes in the structure of the existing debt, provide any limitations on future borrowings or require additional collateral, based on unfavorable changes in the Firm's credit ratings, financial ratios, earnings or stock price. 290JPMorgan Chase & Co./2024 Form 10-K 290JPMorgan Chase & Co./2024 Form 10-K 290JPMorgan Chase & Co./2024 Form 10-K 290 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** The weighted-average contractual interest rates for total long-term debt excluding structured notes accounted for at fair value were 3.89% and 3.82% as of December 31, 2025 and 2024, respectively. In order to modify exposure to interest rate and currency exchange rate movements, JPMorganChase utilizes derivative instruments, primarily interest rate and cross-currency interest rate swaps, in conjunction with some of its debt issuances. The use of these instruments modifies the Firm's interest expense on the associated debt. The modified weighted-average interest rates for total long-term debt, including the effects of related derivative instruments, were 4.75% and 5.15% as of December 31, 2025 and 2024, respectively. JPMorgan Chase & Co. has guaranteed certain long-term debt of its subsidiaries, including structured notes. These guarantees rank pari passu with the Firm's other unsecured and unsubordinated indebtedness. The amount of such guaranteed long-term debt and structured notes was $47.6 billion and $41.2 billion at December 31, 2025 and 2024, respectively. The Firm's unsecured debt does not contain requirements that would call for an acceleration of payments, maturities or changes in the structure of the existing debt, provide any limitations on future borrowings or require additional collateral, based on unfavorable changes in the Firm's credit ratings, financial ratios, earnings or stock price. The weighted-average contractual interest rates for total long-term debt excluding structured notes accounted for at fair value were 3.89% and 3.82% as of December 31, 2025 and 2024, respectively. In order to modify exposure to interest rate and currency exchange rate movements, JPMorganChase utilizes derivative instruments, primarily interest rate and cross-currency interest rate swaps, in conjunction with some of its debt issuances. The use of these instruments modifies the Firm's interest expense on the associated debt. The modified weighted-average interest rates for total long-term debt, including the effects of related derivative instruments, were 4.75% and 5.15% as of December 31, 2025 and 2024, respectively. JPMorgan Chase & Co. has guaranteed certain long-term debt of its subsidiaries, including structured notes. These guarantees rank pari passu with the Firm's other unsecured and unsubordinated indebtedness. The amount of such guaranteed long-term debt and structured notes was $47.6 billion and $41.2 billion at December 31, 2025 and 2024, respectively. The Firm's unsecured debt does not contain requirements that would call for an acceleration of payments, maturities or changes in the structure of the existing debt, provide any limitations on future borrowings or require additional collateral, based on unfavorable changes in the Firm's credit ratings, financial ratios, earnings or stock price. The weighted-average contractual interest rates for total long-term debt excluding structured notes accounted for at fair value were 3.89% and 3.82% as of December 31, 2025 and 2024, respectively. In order to modify exposure to interest rate and currency exchange rate movements, JPMorganChase utilizes derivative instruments, primarily interest rate and cross-currency interest rate swaps, in conjunction with some of its debt issuances. The use of these instruments modifies the Firm's interest expense on the associated debt. The modified weighted-average interest rates for total long-term debt, including the effects of related derivative instruments, were 4.75% and 5.15% as of December 31, 2025 and 2024, respectively. JPMorgan Chase & Co. has guaranteed certain long-term debt of its subsidiaries, including structured notes. These guarantees rank pari passu with the Firm's other unsecured and unsubordinated indebtedness. The amount of such guaranteed long-term debt and structured notes was $47.6 billion and $41.2 billion at December 31, 2025 and 2024, respectively. The Firm's unsecured debt does not contain requirements that would call for an acceleration of payments, maturities or changes in the structure of the existing debt, provide any limitations on future borrowings or require additional collateral, based on unfavorable changes in the Firm's credit ratings, financial ratios, earnings or stock price. 282JPMorgan Chase & Co./2025 Form 10-K 282JPMorgan Chase & Co./2025 Form 10-K 282JPMorgan Chase & Co./2025 Form 10-K 282 JPMorgan Chase & Co./2025 Form 10-K --- ## Modified Risk: Total wholesale(c) **Key changes:** - Updated: "Securities lending indemnification agreements and guarantees(e) Exchange & clearing house guarantees and commitments(f) Other guarantees and commitments (g) (a)Includes certain commitments to purchase loans from correspondents." - Updated: "For these indemnifications, the initial liability is amortized to income as the Firm's risk is reduced (i.e., over time or when the indemnification expires).The contractual amount and carrying value of guarantees and indemnifications are included in the table on page 296.For additional information on the guarantees, see below." **Prior (2025):** Other unfunded commitments to extend credit Other unfunded commitments to extend credit generally consist of commitments for working capital and general corporate purposes, extensions of credit to support commercial paper facilities and bond financings in the event that those obligations cannot be remarketed to new investors, as well as committed liquidity facilities to clearing organizations. The Firm also issues commitments under multipurpose facilities which could be drawn upon in several forms, including the issuance of a standby letter of credit. Guarantees U.S. GAAP requires that a guarantor recognize, at the inception of a guarantee, a liability in an amount equal to the fair value of the obligation undertaken in issuing the guarantee. U.S. GAAP defines a guarantee as a contract that contingently requires the guarantor to pay the guaranteed party based upon: (a) changes in an underlying asset, liability or equity security of the guaranteed party; or (b) a third party's failure to perform under a specified agreement. The Firm considers the following off-balance sheet arrangements to be guarantees under U.S. GAAP: standby letters of credit and other financial guarantees, securities lending indemnifications, certain indemnification agreements included within third-party contractual arrangements, certain derivative contracts and the guarantees under the sponsored member repo program. As required by U.S. GAAP, the Firm initially records guarantees at the inception date fair value of the non-contingent obligation assumed (e.g., the amount of consideration received or the net present value of the premium receivable). For these obligations, the Firm records this fair value amount in other liabilities with an offsetting entry recorded in cash (for premiums received), or other assets (for premiums receivable). Any premium receivable recorded in other assets is reduced as cash is received under the contract, and the fair value of the liability recorded at inception is amortized into income as lending and deposit-related fees over the life of the guarantee contract. The lending-related contingent obligation is recognized based on expected credit losses in addition to, and separate from, any non-contingent obligation.Non-lending-related contingent obligations are recognized when the liability becomes probable and reasonably estimable. These obligations are not recognized if the estimated amount is less than the carrying amount of any non-contingent liability recognized at inception (adjusted for any amortization). Examples of non-lending-related contingent obligations include indemnifications provided in sales agreements, where a portion of the sale proceeds is allocated to the guarantee, which adjusts the gain or loss that would otherwise result from the transaction. For these indemnifications, the initial liability is amortized to income as the Firm's risk is reduced (i.e., over time or when the indemnification expires).The contractual amount and carrying value of guarantees and indemnifications are included in the table on page 303.For additional information on the guarantees, see below. Standby letters of credit and other financial guarantees Standby letters of credit and other financial guarantees are conditional lending commitments issued by the Firm to guarantee the performance of a client or customer to a third party under certain arrangements, such as commercial paper facilities, bond financings, acquisition financings, trade financings and similar transactions. Other unfunded commitments to extend credit Other unfunded commitments to extend credit generally consist of commitments for working capital and general corporate purposes, extensions of credit to support commercial paper facilities and bond financings in the event that those obligations cannot be remarketed to new investors, as well as committed liquidity facilities to clearing organizations. The Firm also issues commitments under multipurpose facilities which could be drawn upon in several forms, including the issuance of a standby letter of credit. Guarantees U.S. GAAP requires that a guarantor recognize, at the inception of a guarantee, a liability in an amount equal to the fair value of the obligation undertaken in issuing the guarantee. U.S. GAAP defines a guarantee as a contract that contingently requires the guarantor to pay the guaranteed party based upon: (a) changes in an underlying asset, liability or equity security of the guaranteed party; or (b) a third party's failure to perform under a specified agreement. The Firm considers the following off-balance sheet arrangements to be guarantees under U.S. GAAP: standby letters of credit and other financial guarantees, securities lending indemnifications, certain indemnification agreements included within third-party contractual arrangements, certain derivative contracts and the guarantees under the sponsored member repo program. As required by U.S. GAAP, the Firm initially records guarantees at the inception date fair value of the non-contingent obligation assumed (e.g., the amount of consideration received or the net present value of the premium receivable). For these obligations, the Firm records this fair value amount in other liabilities with an offsetting entry recorded in cash (for premiums received), or other assets (for premiums receivable). Any premium receivable recorded in other assets is **Current (2026):** Securities lending indemnification agreements and guarantees(e) Exchange & clearing house guarantees and commitments(f) Other guarantees and commitments (g) (a)Includes certain commitments to purchase loans from correspondents. (b)Also includes commercial card lending-related commitments primarily in CIB. (c)Predominantly all consumer and wholesale lending-related commitments are in the U.S. (d)As of December 31, 2025 and 2024, reflected the contractual amount net of risk participations totaling $181 million and $85 million, respectively, for other unfunded commitments to extend credit; $9.2 billion and $9.5 billion, respectively, for standby letters of credit and other financial guarantees; and $514 million and $556 million, respectively, for other letters of credit. In regulatory filings with the Federal Reserve these commitments are shown gross of risk participations. (e)As of December 31, 2025 and 2024, collateral held by the Firm in support of securities lending indemnification agreements was $431.9 billion and $328.7 billion, respectively. Securities lending collateral primarily consists of cash, G7 government securities, and securities issued by U.S. GSEs and government agencies. (f)As of December 31, 2025 and 2024, includes guarantees to the Fixed Income Clearing Corporation under the sponsored member repo program and commitments and guarantees associated with the Firm's membership in certain clearing houses. (g)As of December 31, 2025 and 2024, primarily includes equity investment commitments, unfunded commitments to purchase secondary market loans, unfunded commitments related to certain tax-oriented equity investments, and commitments to purchase leased assets. (h)Includes estimated total credit exposure related to the Apple Card transaction at the time that the transaction is expected to close of approximately $104 billion, including approximately $23 billion of estimated drawn loans. (i)For lending-related products, the carrying value includes the allowance for lending-related commitments and the guarantee liability; for derivative-related products, and lending-related commitments for which the fair value option was elected, the carrying value represents the fair value. (j)For lending-related commitments, the carrying value also includes fees and any purchase discounts or premiums that are deferred and recognized in accounts payable and other liabilities on the Consolidated balance sheets. Deferred amounts for revolving commitments and commitments not expected to fund, are amortized to lending- and deposit-related fees on a straight line basis over the commitment period. For all other commitments the deferred amounts remain deferred until the commitment funds or is sold. (k)Represents the allowance for lending-related commitments related to the Apple Card transaction. 296JPMorgan Chase & Co./2025 Form 10-K 296JPMorgan Chase & Co./2025 Form 10-K 296JPMorgan Chase & Co./2025 Form 10-K 296 JPMorgan Chase & Co./2025 Form 10-K Other unfunded commitments to extend credit Other unfunded commitments to extend credit generally consist of commitments for working capital and general corporate purposes, extensions of credit to support commercial paper facilities and bond financings in the event that those obligations cannot be remarketed to new investors, as well as committed liquidity facilities to clearing organizations. The Firm also issues commitments under multipurpose facilities which could be drawn upon in several forms, including the issuance of a standby letter of credit. Guarantees U.S. GAAP requires that a guarantor recognize, at the inception of a guarantee, a liability in an amount equal to the fair value of the obligation undertaken in issuing the guarantee. U.S. GAAP defines a guarantee as a contract that contingently requires the guarantor to pay the guaranteed party based upon: (a) changes in an underlying asset, liability or equity security of the guaranteed party; or (b) a third party's failure to perform under a specified agreement. The Firm considers the following off-balance sheet arrangements to be guarantees under U.S. GAAP: standby letters of credit and other financial guarantees, securities lending indemnifications, certain indemnification agreements included within third-party contractual arrangements, certain derivative contracts and the guarantees under the sponsored member repo program. As required by U.S. GAAP, the Firm initially records guarantees at the inception date fair value of the non-contingent obligation assumed (e.g., the amount of consideration received or the net present value of the premium receivable). For these obligations, the Firm records this fair value amount in other liabilities with an offsetting entry recorded in cash (for premiums received), or other assets (for premiums receivable). Any premium receivable recorded in other assets is reduced as cash is received under the contract, and the fair value of the liability recorded at inception is amortized into income as lending and deposit-related fees over the life of the guarantee contract. The lending-related contingent obligation is recognized based on expected credit losses in addition to, and separate from, any non-contingent obligation.Non-lending-related contingent obligations are recognized when the liability becomes probable and reasonably estimable. These obligations are not recognized if the estimated amount is less than the carrying amount of any non-contingent liability recognized at inception (adjusted for any amortization). Examples of non-lending-related contingent obligations include indemnifications provided in sales agreements, where a portion of the sale proceeds is allocated to the guarantee, which adjusts the gain or loss that would otherwise result from the transaction. For these indemnifications, the initial liability is amortized to income as the Firm's risk is reduced (i.e., over time or when the indemnification expires).The contractual amount and carrying value of guarantees and indemnifications are included in the table on page 296.For additional information on the guarantees, see below. Standby letters of credit and other financial guarantees Standby letters of credit and other financial guarantees are conditional lending commitments issued by the Firm to guarantee the performance of a client or customer to a third party under certain arrangements, such as commercial paper facilities, bond financings, acquisition financings, trade financings and similar transactions. Other unfunded commitments to extend credit Other unfunded commitments to extend credit generally consist of commitments for working capital and general corporate purposes, extensions of credit to support commercial paper facilities and bond financings in the event that those obligations cannot be remarketed to new investors, as well as committed liquidity facilities to clearing organizations. The Firm also issues commitments under multipurpose facilities which could be drawn upon in several forms, including the issuance of a standby letter of credit. Guarantees U.S. GAAP requires that a guarantor recognize, at the inception of a guarantee, a liability in an amount equal to the fair value of the obligation undertaken in issuing the guarantee. U.S. GAAP defines a guarantee as a contract that contingently requires the guarantor to pay the guaranteed party based upon: (a) changes in an underlying asset, liability or equity security of the guaranteed party; or (b) a third party's failure to perform under a specified agreement. The Firm considers the following off-balance sheet arrangements to be guarantees under U.S. GAAP: standby letters of credit and other financial guarantees, securities lending indemnifications, certain indemnification agreements included within third-party contractual arrangements, certain derivative contracts and the guarantees under the sponsored member repo program. As required by U.S. GAAP, the Firm initially records guarantees at the inception date fair value of the non-contingent obligation assumed (e.g., the amount of consideration received or the net present value of the premium receivable). For these obligations, the Firm records this fair value amount in other liabilities with an offsetting entry recorded in cash (for premiums received), or other assets (for premiums receivable). Any premium receivable recorded in other assets is --- ## Modified Risk: All cash flows during the period:(a) **Key changes:** - Updated: "Key assumptions used to value retained interests originated during the year are shown in the table below.Year ended December 31,202520242023Residential mortgage retained interest:Weighted-average life (in years)3.14.39.6Weighted-average discount rate5.4 %7.1 %4.8 %Commercial and other retained interest:Weighted-average life (in years)5.34.53.0Weighted-average discount rate4.9 %6.2 %4.6 %Loans and excess MSRs sold to U.S." - Updated: "GSEs, and loans in securitization transactions pursuant to Ginnie Mae guidelines.Year ended December 31,(in millions)202520242023Carrying value of loans sold$30,496 $25,765 $19,906 Proceeds received from loan sales as cash$1,905 $2,380 $300 Proceeds from loan sales as securities(a)(b)28,449 23,178 19,389 Total proceeds received from loan sales(c)$30,354 $25,558 $19,689 Gains/(losses) on loan sales(d)(e)$ - $ - $ - (a)Includes securities from U.S." - Updated: "Key assumptions used to value retained interests originated during the year are shown in the table below.Year ended December 31,202520242023Residential mortgage retained interest:Weighted-average life (in years)3.14.39.6Weighted-average discount rate5.4 %7.1 %4.8 %Commercial and other retained interest:Weighted-average life (in years)5.34.53.0Weighted-average discount rate4.9 %6.2 %4.6 %Loans and excess MSRs sold to U.S." - Updated: "Year ended December 31,202520242023Residential mortgage retained interest:Weighted-average life (in years)3.14.39.6Weighted-average discount rate5.4 %7.1 %4.8 %Commercial and other retained interest:Weighted-average life (in years)5.34.53.0Weighted-average discount rate4.9 %6.2 %4.6 %" **Prior (2025):** Proceeds received from loan sales as financial instruments(b)(c) Cash flows received on interests (a)Excludes re-securitization transactions. (b)Primarily includes Level 2 assets. (c)The carrying value of the loans accounted for at fair value approximated the proceeds received upon loan sale. (d)Represents prime mortgages. Excludes loan securitization activity related to U.S. GSEs and government agencies. (e)Includes commercial mortgages and auto loans. Key assumptions used to value retained interests originated during the year are shown in the table below.Year ended December 31,202420232022Residential mortgage retained interest:Weighted-average life (in years)4.39.610.8Weighted-average discount rate7.1 %4.8 %4.0 %Commercial and other retained interest:Weighted-average life (in years)4.53.05.9Weighted-average discount rate6.2 %4.6 %2.9 %Loans and excess MSRs sold to U.S. government-sponsored enterprises and loans in securitization transactions pursuant to Ginnie Mae guidelinesIn addition to the amounts reported in the securitization activity tables above, the Firm, in the normal course of business, sells originated and purchased mortgage loans and certain originated excess MSRs on a nonrecourse basis, predominantly to U.S. GSEs. These loans and excess MSRs are sold primarily for the purpose of securitization by the U.S. GSEs, who provide certain guarantee provisions (e.g., credit enhancement of the loans). The Firm also sells loans into securitization transactions pursuant to Ginnie Mae guidelines; these loans are typically insured or guaranteed by another U.S. government agency. The Firm does not consolidate the securitization vehicles underlying these transactions as it is not the primary beneficiary. For a limited number of loan sales, the Firm is obligated to share a portion of the credit risk associated with the sold loans with the purchaser. Refer to Note 28 for additional information about the Firm's loan sales- and securitization-related indemnifications and Note 15 for additional information about the impact of the Firm's sale of certain excess MSRs.The following table summarizes the activities related to loans sold to the U.S. GSEs, and loans in securitization transactions pursuant to Ginnie Mae guidelines.Year ended December 31,(in millions)202420232022Carrying value of loans sold$25,765 $19,906 $48,891 Proceeds received from loan sales as cash$2,380 $300 $22 Proceeds from loan sales as securities(a)(b)23,178 19,389 48,096 Total proceeds received from loan sales(c)$25,558 $19,689 $48,118 Gains/(losses) on loan sales(d)(e)$ - $ - $(25)(a)Includes securities from U.S. GSEs and Ginnie Mae that are generally sold shortly after receipt or retained as part of the Firm's investment securities portfolio.(b)Included in level 2 assets.(c)Excludes the value of MSRs retained upon the sale of loans. (d)Gains/(losses) on loan sales include the value of MSRs.(e)The carrying value of the loans accounted for at fair value approximated the proceeds received upon loan sale. Key assumptions used to value retained interests originated during the year are shown in the table below.Year ended December 31,202420232022Residential mortgage retained interest:Weighted-average life (in years)4.39.610.8Weighted-average discount rate7.1 %4.8 %4.0 %Commercial and other retained interest:Weighted-average life (in years)4.53.05.9Weighted-average discount rate6.2 %4.6 %2.9 %Loans and excess MSRs sold to U.S. government-sponsored enterprises and loans in securitization transactions pursuant to Ginnie Mae guidelinesIn addition to the amounts reported in the securitization activity tables above, the Firm, in the normal course of business, sells originated and purchased mortgage loans and certain originated excess MSRs on a nonrecourse basis, predominantly to U.S. GSEs. These loans and excess MSRs are sold primarily for the purpose of securitization by the U.S. GSEs, who provide certain guarantee provisions (e.g., credit enhancement of the loans). The Firm also sells loans into securitization transactions pursuant to Ginnie Mae guidelines; these loans are typically insured or guaranteed by another U.S. government agency. The Firm does not consolidate the securitization vehicles underlying these transactions as it is not the primary beneficiary. For a limited number of loan sales, the Firm is obligated to share a portion of the credit risk associated with the sold loans with the purchaser. Refer to Note 28 for additional information about the Firm's loan sales- and securitization-related indemnifications and Note 15 for additional information about the impact of the Firm's sale of certain excess MSRs. Key assumptions used to value retained interests originated during the year are shown in the table below. Year ended December 31,202420232022Residential mortgage retained interest:Weighted-average life (in years)4.39.610.8Weighted-average discount rate7.1 %4.8 %4.0 %Commercial and other retained interest:Weighted-average life (in years)4.53.05.9Weighted-average discount rate6.2 %4.6 %2.9 % **Current (2026):** Proceeds received from loan sales as financial instruments(b)(c) Cash flows received on interests (a)Excludes re-securitization transactions. (b)Primarily includes Level 2 assets. (c)The carrying value of the loans accounted for at fair value approximated the proceeds received upon loan sale. (d)Represents prime mortgages. Excludes loan securitization activity related to U.S. GSEs and government agencies. (e)Includes commercial mortgages and auto loans. Key assumptions used to value retained interests originated during the year are shown in the table below.Year ended December 31,202520242023Residential mortgage retained interest:Weighted-average life (in years)3.14.39.6Weighted-average discount rate5.4 %7.1 %4.8 %Commercial and other retained interest:Weighted-average life (in years)5.34.53.0Weighted-average discount rate4.9 %6.2 %4.6 %Loans and excess MSRs sold to U.S. government-sponsored enterprises and loans in securitization transactions pursuant to Ginnie Mae guidelinesIn addition to the amounts reported in the securitization activity tables above, the Firm, in the normal course of business, sells originated and purchased mortgage loans and certain originated excess MSRs on a nonrecourse basis, predominantly to U.S. GSEs. These loans and excess MSRs are sold primarily for the purpose of securitization by the U.S. GSEs, who provide certain guarantee provisions (e.g., credit enhancement of the loans). The Firm also sells loans into securitization transactions pursuant to Ginnie Mae guidelines; these loans are typically insured or guaranteed by another U.S. government agency. The Firm does not consolidate the securitization vehicles underlying these transactions as it is not the primary beneficiary. For a limited number of loan sales, the Firm is obligated to share a portion of the credit risk associated with the sold loans with the purchaser. Refer to Note 28 for additional information about the Firm's loan sales- and securitization-related indemnifications and Note 15 for additional information about the impact of the Firm's sale of certain excess MSRs.The following table summarizes the activities related to loans sold to the U.S. GSEs, and loans in securitization transactions pursuant to Ginnie Mae guidelines.Year ended December 31,(in millions)202520242023Carrying value of loans sold$30,496 $25,765 $19,906 Proceeds received from loan sales as cash$1,905 $2,380 $300 Proceeds from loan sales as securities(a)(b)28,449 23,178 19,389 Total proceeds received from loan sales(c)$30,354 $25,558 $19,689 Gains/(losses) on loan sales(d)(e)$ - $ - $ - (a)Includes securities from U.S. GSEs and Ginnie Mae that are generally sold shortly after receipt or retained as part of the Firm's investment securities portfolio.(b)Included in level 2 assets.(c)Excludes the value of MSRs retained upon the sale of loans. (d)Gains/(losses) on loan sales include the value of MSRs.(e)The carrying value of the loans accounted for at fair value approximated the proceeds received upon loan sale. Key assumptions used to value retained interests originated during the year are shown in the table below.Year ended December 31,202520242023Residential mortgage retained interest:Weighted-average life (in years)3.14.39.6Weighted-average discount rate5.4 %7.1 %4.8 %Commercial and other retained interest:Weighted-average life (in years)5.34.53.0Weighted-average discount rate4.9 %6.2 %4.6 %Loans and excess MSRs sold to U.S. government-sponsored enterprises and loans in securitization transactions pursuant to Ginnie Mae guidelinesIn addition to the amounts reported in the securitization activity tables above, the Firm, in the normal course of business, sells originated and purchased mortgage loans and certain originated excess MSRs on a nonrecourse basis, predominantly to U.S. GSEs. These loans and excess MSRs are sold primarily for the purpose of securitization by the U.S. GSEs, who provide certain guarantee provisions (e.g., credit enhancement of the loans). The Firm also sells loans into securitization transactions pursuant to Ginnie Mae guidelines; these loans are typically insured or guaranteed by another U.S. government agency. The Firm does not consolidate the securitization vehicles underlying these transactions as it is not the primary beneficiary. For a limited number of loan sales, the Firm is obligated to share a portion of the credit risk associated with the sold loans with the purchaser. Refer to Note 28 for additional information about the Firm's loan sales- and securitization-related indemnifications and Note 15 for additional information about the impact of the Firm's sale of certain excess MSRs. Key assumptions used to value retained interests originated during the year are shown in the table below. Year ended December 31,202520242023Residential mortgage retained interest:Weighted-average life (in years)3.14.39.6Weighted-average discount rate5.4 %7.1 %4.8 %Commercial and other retained interest:Weighted-average life (in years)5.34.53.0Weighted-average discount rate4.9 %6.2 %4.6 % --- ## Modified Risk: Credit portfolio management activities **Key changes:** - Updated: "Credit derivatives and credit-related notes used in credit portfolio management activitiesDecember 31, (in millions)Notional amount of protection purchased and sold(a)20252024Credit derivatives and credit-related notes used to manage:Loans and lending-related commitments$9,899 $25,216 Derivative receivables 13,999 15,672 Credit derivatives and credit-related notes used in credit portfolio management activities$23,898 $40,888 (a)Amounts are presented net, considering the Firm's net protection purchased or sold with respect to each underlying reference entity or index." - Updated: "Credit derivatives and credit-related notes used in credit portfolio management activitiesDecember 31, (in millions)Notional amount of protection purchased and sold(a)20252024Credit derivatives and credit-related notes used to manage:Loans and lending-related commitments$9,899 $25,216 Derivative receivables 13,999 15,672 Credit derivatives and credit-related notes used in credit portfolio management activities$23,898 $40,888 Notional amount of protection purchased and sold(a) (a)Amounts are presented net, considering the Firm's net protection purchased or sold with respect to each underlying reference entity or index." - Updated: "128JPMorgan Chase & Co./2025 Form 10-K 128JPMorgan Chase & Co./2025 Form 10-K 128JPMorgan Chase & Co./2025 Form 10-K 128 JPMorgan Chase & Co./2025 Form 10-K ALLOWANCE FOR CREDIT LOSSES ALLOWANCE FOR CREDIT LOSSES The Firm's allowance for credit losses represents management's estimate of expected credit losses over the remaining expected life of the Firm's financial assets measured at amortized cost and certain off-balance sheet lending-related commitments." - Updated: "real GDP(b)2.0 %1.9 %1.8 %(a)Reflects quarterly average of forecasted U.S." - Updated: "Refer to Consumer Credit Portfolio on pages 112-117, Wholesale Credit Portfolio on pages 118-128 and Note 12 for additional information on the consumer and wholesale credit portfolios.Refer to Critical Accounting Estimates Used by the Firm on pages 154-157 for further information on the allowance for credit losses and related management judgments." **Prior (2025):** Included in the Firm's end-user activities are credit derivatives used to mitigate the credit risk associated with traditional lending activities (loans and lending-related commitments) and derivatives counterparty exposure in the Firm's wholesale businesses (collectively, "credit portfolio management activities"). Information on credit portfolio management activities is provided in the table below. The Firm also uses credit derivatives as an end-user to manage other exposures, including credit risk arising from certain securities held in the Firm's market-making businesses. These credit derivatives are not included in credit portfolio management activities. Credit derivatives and credit-related notes used in credit portfolio management activitiesNotional amount of protection purchased and sold(a)December 31, (in millions)20242023Credit derivatives and credit-related notes used to manage:Loans and lending-related commitments$25,216 $24,157 Derivative receivables 15,672 12,832 Credit derivatives and credit-related notes used in credit portfolio management activities$40,888 $36,989 (a)Amounts are presented net, considering the Firm's net protection purchased or sold with respect to each underlying reference entity or index. The credit derivatives used in credit portfolio management activities do not qualify for hedge accounting under U.S. GAAP; these derivatives are reported at fair value, with gains and losses recognized in principal transactions revenue. In contrast, the loans and lending-related commitments being risk-managed are accounted for on an accrual basis. This asymmetry in accounting treatment, between loans and lending-related commitments and the credit derivatives used in credit portfolio management activities, causes earnings volatility that is not representative, in the Firm's view, of the true changes in value of the Firm's overall credit exposure.The effectiveness of credit default swaps ("CDS") as a hedge against the Firm's exposures may vary depending on a number of factors, including the named reference entity (i.e., the Firm may experience losses on specific exposures that are different than the named reference entities in the purchased CDS); the contractual terms of the CDS (which may have a defined credit event that does not align with an actual loss realized by the Firm); and the maturity of the Firm's CDS protection (which in some cases may be shorter than the Firm's exposures). However, the Firm generally seeks to purchase credit protection with a maturity date that is the same or similar to the maturity date of the exposure for which the protection was purchased, and remaining differences in maturity are actively monitored and managed by the Firm. Refer to Credit derivatives in Note 5 for further information on credit derivatives and derivatives used in credit portfolio management activities. Credit derivatives and credit-related notes used in credit portfolio management activitiesNotional amount of protection purchased and sold(a)December 31, (in millions)20242023Credit derivatives and credit-related notes used to manage:Loans and lending-related commitments$25,216 $24,157 Derivative receivables 15,672 12,832 Credit derivatives and credit-related notes used in credit portfolio management activities$40,888 $36,989 Notional amount of protection purchased and sold(a) (a)Amounts are presented net, considering the Firm's net protection purchased or sold with respect to each underlying reference entity or index. The credit derivatives used in credit portfolio management activities do not qualify for hedge accounting under U.S. GAAP; these derivatives are reported at fair value, with gains and losses recognized in principal transactions revenue. In contrast, the loans and lending-related commitments being risk-managed are accounted for on an accrual basis. This asymmetry in accounting treatment, between loans and lending-related commitments and the credit derivatives used in credit portfolio management activities, causes earnings volatility that is not representative, in the Firm's view, of the true changes in value of the Firm's overall credit exposure. The effectiveness of credit default swaps ("CDS") as a hedge against the Firm's exposures may vary depending on a number of factors, including the named reference entity (i.e., the Firm may experience losses on specific exposures that are different than the named reference entities in the purchased CDS); the contractual terms of the CDS (which may have a defined credit event that does not align with an actual loss realized by the Firm); and the maturity of the Firm's CDS protection (which in some cases may be shorter than the Firm's exposures). However, the Firm generally seeks to purchase credit protection with a maturity date that is the same or similar to the maturity date of the exposure for which the protection was purchased, and remaining differences in maturity are actively monitored and managed by the Firm. Refer to Credit derivatives in Note 5 for further information on credit derivatives and derivatives used in credit portfolio management activities. 136JPMorgan Chase & Co./2024 Form 10-K 136JPMorgan Chase & Co./2024 Form 10-K 136JPMorgan Chase & Co./2024 Form 10-K 136 JPMorgan Chase & Co./2024 Form 10-K ALLOWANCE FOR CREDIT LOSSES The Firm's allowance for credit losses represents management's estimate of expected credit losses over the remaining expected life of the Firm's financial assets measured at amortized cost and certain off-balance sheet lending-related commitments. The Firm's allowance for credit losses generally consists of:•the allowance for loan losses, which covers the Firm's retained loan portfolios (scored and risk-rated) and is presented separately on the Consolidated balance sheets,•the allowance for lending-related commitments, which is reflected in accounts payable and other liabilities on the Consolidated balance sheets, and •the allowance for credit losses on investment securities, which is reflected in investment securities on the Consolidated balance sheets.Discussion of changes in the allowanceThe allowance for credit losses as of December 31, 2024 was $26.9 billion, reflecting a net addition of $2.1 billion from December 31, 2023.The net addition to the allowance for credit losses included:•$2.1 billion in consumer, reflecting:-a $2.2 billion net addition in Card Services, predominantly driven by loan growth, reflecting higher revolving balances, including the seasoning of vintages originated in recent years, partially offset by-a $125 million net reduction in Home Lending in the first quarter of 2024, and •a net reduction of $30 million in wholesale, reflecting:-changes in certain macroeconomic variables, an update to loss assumptions on certain loans in Markets, and a reduction due to charge-offs largely from collateral-dependent loans, predominantly offset by -net downgrade activity, primarily in Real Estate, and the impact of incorporating the First Republic portfolio into the Firm's modeled credit loss estimates in the second quarter of 2024.The Firm's qualitative adjustments continued to include additional weight placed on the adverse scenarios to reflect ongoing uncertainties and downside risks related to the geopolitical and macroeconomic environment.The Firm's allowance for credit losses is estimated using a weighted average of five internally developed macroeconomic scenarios. The adverse scenarios incorporate more punitive macroeconomic factors than the central case assumptions provided in the table below, resulting in:•a weighted average U.S. unemployment rate peaking at 5.5% in the fourth quarter of 2025, and•a weighted average U.S. real GDP level that is 1.9% lower than the central case at the end of the second quarter of 2026.The following table presents the Firm's central case assumptions for the periods presented:Central case assumptions at December 31, 20242Q254Q252Q26U.S. unemployment rate(a)4.5 %4.3 %4.3 %YoY growth in U.S. real GDP(b)2.0 %1.9 %1.8 %Central case assumptions at December 31, 20232Q244Q242Q25U.S. unemployment rate(a)4.1 %4.4 %4.1 %YoY growth in U.S. real GDP(b)1.8 %0.7 %1.0 %(a)Reflects quarterly average of forecasted U.S. unemployment rate.(b)The year over year growth in U.S. real GDP in the forecast horizon of the central scenario is calculated as the percentage change in U.S. real GDP levels from the prior year.Subsequent changes to this forecast and related estimates will be reflected in the provision for credit losses in future periods. Refer to Consumer Credit Portfolio on pages 120-125, Wholesale Credit Portfolio on pages 126-136 and Note 12 for additional information on the consumer and wholesale credit portfolios.Refer to Critical Accounting Estimates Used by the Firm on pages 161-164 for further information on the allowance for credit losses and related management judgments. The Firm's allowance for credit losses represents management's estimate of expected credit losses over the remaining expected life of the Firm's financial assets measured at amortized cost and certain off-balance sheet lending-related commitments. The Firm's allowance for credit losses generally consists of:•the allowance for loan losses, which covers the Firm's retained loan portfolios (scored and risk-rated) and is presented separately on the Consolidated balance sheets,•the allowance for lending-related commitments, which is reflected in accounts payable and other liabilities on the Consolidated balance sheets, and •the allowance for credit losses on investment securities, which is reflected in investment securities on the Consolidated balance sheets.Discussion of changes in the allowanceThe allowance for credit losses as of December 31, 2024 was $26.9 billion, reflecting a net addition of $2.1 billion from December 31, 2023.The net addition to the allowance for credit losses included:•$2.1 billion in consumer, reflecting:-a $2.2 billion net addition in Card Services, predominantly driven by loan growth, reflecting higher revolving balances, including the seasoning of vintages originated in recent years, partially offset by-a $125 million net reduction in Home Lending in the first quarter of 2024, and •a net reduction of $30 million in wholesale, reflecting:-changes in certain macroeconomic variables, an update to loss assumptions on certain loans in Markets, and a reduction due to charge-offs largely from collateral-dependent loans, predominantly offset by -net downgrade activity, primarily in Real Estate, and the impact of incorporating the First Republic portfolio into the Firm's modeled credit loss estimates in the second quarter of 2024.The Firm's qualitative adjustments continued to include additional weight placed on the adverse scenarios to reflect ongoing uncertainties and downside risks related to the geopolitical and macroeconomic environment.The Firm's allowance for credit losses is estimated using a weighted average of five internally developed macroeconomic scenarios. The adverse scenarios incorporate more punitive macroeconomic factors than the central case assumptions provided in the table below, resulting in: The Firm's allowance for credit losses represents management's estimate of expected credit losses over the remaining expected life of the Firm's financial assets measured at amortized cost and certain off-balance sheet lending-related commitments. The Firm's allowance for credit losses generally consists of: •the allowance for loan losses, which covers the Firm's retained loan portfolios (scored and risk-rated) and is presented separately on the Consolidated balance sheets, •the allowance for lending-related commitments, which is reflected in accounts payable and other liabilities on the Consolidated balance sheets, and •the allowance for credit losses on investment securities, which is reflected in investment securities on the Consolidated balance sheets. Discussion of changes in the allowance The allowance for credit losses as of December 31, 2024 was $26.9 billion, reflecting a net addition of $2.1 billion from December 31, 2023. The net addition to the allowance for credit losses included: •$2.1 billion in consumer, reflecting: -a $2.2 billion net addition in Card Services, predominantly driven by loan growth, reflecting higher revolving balances, including the seasoning of vintages originated in recent years, partially offset by -a $125 million net reduction in Home Lending in the first quarter of 2024, and •a net reduction of $30 million in wholesale, reflecting: -changes in certain macroeconomic variables, an update to loss assumptions on certain loans in Markets, and a reduction due to charge-offs largely from collateral-dependent loans, predominantly offset by -net downgrade activity, primarily in Real Estate, and the impact of incorporating the First Republic portfolio into the Firm's modeled credit loss estimates in the second quarter of 2024. The Firm's qualitative adjustments continued to include additional weight placed on the adverse scenarios to reflect ongoing uncertainties and downside risks related to the geopolitical and macroeconomic environment. The Firm's allowance for credit losses is estimated using a weighted average of five internally developed macroeconomic scenarios. The adverse scenarios incorporate more punitive macroeconomic factors than the central case assumptions provided in the table below, resulting in: •a weighted average U.S. unemployment rate peaking at 5.5% in the fourth quarter of 2025, and•a weighted average U.S. real GDP level that is 1.9% lower than the central case at the end of the second quarter of 2026.The following table presents the Firm's central case assumptions for the periods presented:Central case assumptions at December 31, 20242Q254Q252Q26U.S. unemployment rate(a)4.5 %4.3 %4.3 %YoY growth in U.S. real GDP(b)2.0 %1.9 %1.8 %Central case assumptions at December 31, 20232Q244Q242Q25U.S. unemployment rate(a)4.1 %4.4 %4.1 %YoY growth in U.S. real GDP(b)1.8 %0.7 %1.0 %(a)Reflects quarterly average of forecasted U.S. unemployment rate.(b)The year over year growth in U.S. real GDP in the forecast horizon of the central scenario is calculated as the percentage change in U.S. real GDP levels from the prior year.Subsequent changes to this forecast and related estimates will be reflected in the provision for credit losses in future periods. Refer to Consumer Credit Portfolio on pages 120-125, Wholesale Credit Portfolio on pages 126-136 and Note 12 for additional information on the consumer and wholesale credit portfolios.Refer to Critical Accounting Estimates Used by the Firm on pages 161-164 for further information on the allowance for credit losses and related management judgments. •a weighted average U.S. unemployment rate peaking at 5.5% in the fourth quarter of 2025, and •a weighted average U.S. real GDP level that is 1.9% lower than the central case at the end of the second quarter of 2026. The following table presents the Firm's central case assumptions for the periods presented: Central case assumptions at December 31, 20242Q254Q252Q26U.S. unemployment rate(a)4.5 %4.3 %4.3 %YoY growth in U.S. real GDP(b)2.0 %1.9 %1.8 % U.S. unemployment rate(a) YoY growth in U.S. real GDP(b) Central case assumptions at December 31, 20232Q244Q242Q25U.S. unemployment rate(a)4.1 %4.4 %4.1 %YoY growth in U.S. real GDP(b)1.8 %0.7 %1.0 % U.S. unemployment rate(a) YoY growth in U.S. real GDP(b) (a)Reflects quarterly average of forecasted U.S. unemployment rate. (b)The year over year growth in U.S. real GDP in the forecast horizon of the central scenario is calculated as the percentage change in U.S. real GDP levels from the prior year. Subsequent changes to this forecast and related estimates will be reflected in the provision for credit losses in future periods. Refer to Consumer Credit Portfolio on pages 120-125, Wholesale Credit Portfolio on pages 126-136 and Note 12 for additional information on the consumer and wholesale credit portfolios. Refer to Critical Accounting Estimates Used by the Firm on pages 161-164 for further information on the allowance for credit losses and related management judgments. JPMorgan Chase & Co./2024 Form 10-K137 JPMorgan Chase & Co./2024 Form 10-K137 JPMorgan Chase & Co./2024 Form 10-K137 JPMorgan Chase & Co./2024 Form 10-K 137 **Current (2026):** Included in the Firm's end-user activities are credit derivatives used to mitigate the credit risk associated with traditional lending activities (loans and lending-related commitments) and derivatives counterparty exposure in the Firm's wholesale businesses (collectively, "credit portfolio management activities"). Information on credit portfolio management activities is provided in the table below. The Firm also uses credit derivatives as an end-user to manage other exposures, including credit risk arising from certain securities held in the Firm's market-making businesses. These credit derivatives are not included in credit portfolio management activities. Credit derivatives and credit-related notes used in credit portfolio management activitiesDecember 31, (in millions)Notional amount of protection purchased and sold(a)20252024Credit derivatives and credit-related notes used to manage:Loans and lending-related commitments$9,899 $25,216 Derivative receivables 13,999 15,672 Credit derivatives and credit-related notes used in credit portfolio management activities$23,898 $40,888 (a)Amounts are presented net, considering the Firm's net protection purchased or sold with respect to each underlying reference entity or index. The credit derivatives used in credit portfolio management activities do not qualify for hedge accounting under U.S. GAAP; these derivatives are reported at fair value, with gains and losses recognized in principal transactions revenue. In contrast, the loans and lending-related commitments being risk-managed are accounted for on an accrual basis. This asymmetry in accounting treatment, between loans and lending-related commitments and the credit derivatives used in credit portfolio management activities, causes earnings volatility that is not representative, in the Firm's view, of the true changes in value of the Firm's overall credit exposure.The effectiveness of credit default swaps ("CDS") as a hedge against the Firm's exposures may vary depending on a number of factors, including the named reference entity (i.e., the Firm may experience losses on specific exposures that are different than the named reference entities in the purchased CDS); the contractual terms of the CDS (which may have a defined credit event that does not align with an actual loss realized by the Firm); and the maturity of the Firm's CDS protection (which in some cases may be shorter than the Firm's exposures). However, the Firm generally seeks to purchase credit protection with a maturity date that is the same or similar to the maturity date of the exposure for which the protection was purchased, and remaining differences in maturity are actively monitored and managed by the Firm. Refer to Credit derivatives in Note 5 for further information on credit derivatives and derivatives used in credit portfolio management activities. Credit derivatives and credit-related notes used in credit portfolio management activitiesDecember 31, (in millions)Notional amount of protection purchased and sold(a)20252024Credit derivatives and credit-related notes used to manage:Loans and lending-related commitments$9,899 $25,216 Derivative receivables 13,999 15,672 Credit derivatives and credit-related notes used in credit portfolio management activities$23,898 $40,888 Notional amount of protection purchased and sold(a) (a)Amounts are presented net, considering the Firm's net protection purchased or sold with respect to each underlying reference entity or index. The credit derivatives used in credit portfolio management activities do not qualify for hedge accounting under U.S. GAAP; these derivatives are reported at fair value, with gains and losses recognized in principal transactions revenue. In contrast, the loans and lending-related commitments being risk-managed are accounted for on an accrual basis. This asymmetry in accounting treatment, between loans and lending-related commitments and the credit derivatives used in credit portfolio management activities, causes earnings volatility that is not representative, in the Firm's view, of the true changes in value of the Firm's overall credit exposure. The effectiveness of credit default swaps ("CDS") as a hedge against the Firm's exposures may vary depending on a number of factors, including the named reference entity (i.e., the Firm may experience losses on specific exposures that are different than the named reference entities in the purchased CDS); the contractual terms of the CDS (which may have a defined credit event that does not align with an actual loss realized by the Firm); and the maturity of the Firm's CDS protection (which in some cases may be shorter than the Firm's exposures). However, the Firm generally seeks to purchase credit protection with a maturity date that is the same or similar to the maturity date of the exposure for which the protection was purchased, and remaining differences in maturity are actively monitored and managed by the Firm. Refer to Credit derivatives in Note 5 for further information on credit derivatives and derivatives used in credit portfolio management activities. 128JPMorgan Chase & Co./2025 Form 10-K 128JPMorgan Chase & Co./2025 Form 10-K 128JPMorgan Chase & Co./2025 Form 10-K 128 JPMorgan Chase & Co./2025 Form 10-K ALLOWANCE FOR CREDIT LOSSES ALLOWANCE FOR CREDIT LOSSES The Firm's allowance for credit losses represents management's estimate of expected credit losses over the remaining expected life of the Firm's financial assets measured at amortized cost and certain off-balance sheet lending-related commitments. The Firm's allowance for credit losses generally consists of:•the allowance for loan losses, which covers the Firm's retained loan portfolios (scored and risk-rated) and is presented separately on the Consolidated balance sheets,•the allowance for lending-related commitments, which is reflected in accounts payable and other liabilities on the Consolidated balance sheets, and •the allowance for credit losses on investment securities, which is reflected in investment securities on the Consolidated balance sheets.Discussion of changes in the allowanceThe allowance for credit losses as of December 31, 2025 was $31.2 billion, reflecting a net addition of $4.4 billion from December 31, 2024.The net addition to the allowance for credit losses included:•$3.3 billion in consumer, driven by $2.2 billion related to the Apple Card transaction, loan growth in Card Services and the impact of changes in the Firm's weighted-average macroeconomic outlook, partially offset by reduced borrower uncertainty, and •$1.1 billion in wholesale, driven by net increases in the loan and lending-related commitment portfolios, an update to loss assumptions on certain leveraged loans, and net changes in credit quality of client-specific exposures, partially offset by the impact of changes in the Firm's weighted-average macroeconomic outlook and a reduction due to the impact of charge-offs. The Firm's qualitative adjustments and its weighted-average macroeconomic outlook continued to include additional weight placed on the adverse scenarios to reflect ongoing uncertainties and downside risks related to the geopolitical and macroeconomic environment. During 2025, the Firm further increased the weight placed on the adverse scenarios. The Firm's allowance for credit losses is estimated using a weighted average of five internally developed macroeconomic scenarios. The adverse scenarios incorporate more punitive macroeconomic factors than the central case assumptions provided in the following table, resulting in: •a weighted average U.S. unemployment rate peaking at 5.8% in the fourth quarter of 2026, and•a weighted average U.S. real GDP level that is 2.1% lower than the central case at the end of the second quarter of 2027.The following table presents the Firm's central case assumptions for the periods presented:Central case assumptions at December 31, 20252Q264Q262Q27U.S. unemployment rate(a)4.6 %4.4 %4.2 %YoY growth in U.S. real GDP(b)2.0 %1.8 %1.9 %Central case assumptions at December 31, 20242Q254Q252Q26U.S. unemployment rate(a)4.5 %4.3 %4.3 %YoY growth in U.S. real GDP(b)2.0 %1.9 %1.8 %(a)Reflects quarterly average of forecasted U.S. unemployment rate.(b)The year over year growth in U.S. real GDP in the forecast horizon of the central scenario is calculated as the percentage change in U.S. real GDP levels from the prior year.Subsequent changes to this forecast and related estimates will be reflected in the provision for credit losses in future periods. Refer to Consumer Credit Portfolio on pages 112-117, Wholesale Credit Portfolio on pages 118-128 and Note 12 for additional information on the consumer and wholesale credit portfolios.Refer to Critical Accounting Estimates Used by the Firm on pages 154-157 for further information on the allowance for credit losses and related management judgments. The Firm's allowance for credit losses represents management's estimate of expected credit losses over the remaining expected life of the Firm's financial assets measured at amortized cost and certain off-balance sheet lending-related commitments. The Firm's allowance for credit losses generally consists of:•the allowance for loan losses, which covers the Firm's retained loan portfolios (scored and risk-rated) and is presented separately on the Consolidated balance sheets,•the allowance for lending-related commitments, which is reflected in accounts payable and other liabilities on the Consolidated balance sheets, and •the allowance for credit losses on investment securities, which is reflected in investment securities on the Consolidated balance sheets.Discussion of changes in the allowanceThe allowance for credit losses as of December 31, 2025 was $31.2 billion, reflecting a net addition of $4.4 billion from December 31, 2024.The net addition to the allowance for credit losses included:•$3.3 billion in consumer, driven by $2.2 billion related to the Apple Card transaction, loan growth in Card Services and the impact of changes in the Firm's weighted-average macroeconomic outlook, partially offset by reduced borrower uncertainty, and •$1.1 billion in wholesale, driven by net increases in the loan and lending-related commitment portfolios, an update to loss assumptions on certain leveraged loans, and net changes in credit quality of client-specific exposures, partially offset by the impact of changes in the Firm's weighted-average macroeconomic outlook and a reduction due to the impact of charge-offs. The Firm's qualitative adjustments and its weighted-average macroeconomic outlook continued to include additional weight placed on the adverse scenarios to reflect ongoing uncertainties and downside risks related to the geopolitical and macroeconomic environment. During 2025, the Firm further increased the weight placed on the adverse scenarios. The Firm's allowance for credit losses is estimated using a weighted average of five internally developed macroeconomic scenarios. The adverse scenarios incorporate more punitive macroeconomic factors than the central case assumptions provided in the following table, resulting in: •a weighted average U.S. unemployment rate peaking at 5.8% in the fourth quarter of 2026, and The Firm's allowance for credit losses represents management's estimate of expected credit losses over the remaining expected life of the Firm's financial assets measured at amortized cost and certain off-balance sheet lending-related commitments. The Firm's allowance for credit losses generally consists of: •the allowance for loan losses, which covers the Firm's retained loan portfolios (scored and risk-rated) and is presented separately on the Consolidated balance sheets, •the allowance for lending-related commitments, which is reflected in accounts payable and other liabilities on the Consolidated balance sheets, and •the allowance for credit losses on investment securities, which is reflected in investment securities on the Consolidated balance sheets. Discussion of changes in the allowance The allowance for credit losses as of December 31, 2025 was $31.2 billion, reflecting a net addition of $4.4 billion from December 31, 2024. The net addition to the allowance for credit losses included: •$3.3 billion in consumer, driven by $2.2 billion related to the Apple Card transaction, loan growth in Card Services and the impact of changes in the Firm's weighted-average macroeconomic outlook, partially offset by reduced borrower uncertainty, and •$1.1 billion in wholesale, driven by net increases in the loan and lending-related commitment portfolios, an update to loss assumptions on certain leveraged loans, and net changes in credit quality of client-specific exposures, partially offset by the impact of changes in the Firm's weighted-average macroeconomic outlook and a reduction due to the impact of charge-offs. The Firm's qualitative adjustments and its weighted-average macroeconomic outlook continued to include additional weight placed on the adverse scenarios to reflect ongoing uncertainties and downside risks related to the geopolitical and macroeconomic environment. During 2025, the Firm further increased the weight placed on the adverse scenarios. The Firm's allowance for credit losses is estimated using a weighted average of five internally developed macroeconomic scenarios. The adverse scenarios incorporate more punitive macroeconomic factors than the central case assumptions provided in the following table, resulting in: •a weighted average U.S. unemployment rate peaking at 5.8% in the fourth quarter of 2026, and •a weighted average U.S. real GDP level that is 2.1% lower than the central case at the end of the second quarter of 2027.The following table presents the Firm's central case assumptions for the periods presented:Central case assumptions at December 31, 20252Q264Q262Q27U.S. unemployment rate(a)4.6 %4.4 %4.2 %YoY growth in U.S. real GDP(b)2.0 %1.8 %1.9 %Central case assumptions at December 31, 20242Q254Q252Q26U.S. unemployment rate(a)4.5 %4.3 %4.3 %YoY growth in U.S. real GDP(b)2.0 %1.9 %1.8 %(a)Reflects quarterly average of forecasted U.S. unemployment rate.(b)The year over year growth in U.S. real GDP in the forecast horizon of the central scenario is calculated as the percentage change in U.S. real GDP levels from the prior year.Subsequent changes to this forecast and related estimates will be reflected in the provision for credit losses in future periods. Refer to Consumer Credit Portfolio on pages 112-117, Wholesale Credit Portfolio on pages 118-128 and Note 12 for additional information on the consumer and wholesale credit portfolios.Refer to Critical Accounting Estimates Used by the Firm on pages 154-157 for further information on the allowance for credit losses and related management judgments. •a weighted average U.S. real GDP level that is 2.1% lower than the central case at the end of the second quarter of 2027. The following table presents the Firm's central case assumptions for the periods presented: Central case assumptions at December 31, 20252Q264Q262Q27U.S. unemployment rate(a)4.6 %4.4 %4.2 %YoY growth in U.S. real GDP(b)2.0 %1.8 %1.9 % --- ## Modified Risk: Pledged assets **Key changes:** - Updated: "December 31, (in billions)20252024Assets that may be sold or repledged or otherwise used by secured parties$185.6 $152.5 Assets that may not be sold or repledged or otherwise used by secured parties410.9 297.9 Assets pledged at Federal Reserve banks and FHLBs737.1 724.0 Total pledged assets$1,333.6 $1,174.4 Total pledged assets do not include assets of consolidated VIEs; these assets are used to settle the liabilities of those entities." - Updated: "December 31, (in billions)20252024Investment securities$82.7 $89.6 Loans763.8 740.9 Trading assets and other487.1 343.9 Total pledged assets$1,333.6 $1,174.4 Collateral The Firm accepts financial assets as collateral that it is permitted to sell or repledge, deliver or otherwise use." - Updated: "December 31, (in billions)20252024Collateral permitted to be sold or repledged, delivered, or otherwise used$1,771.0 $1,544.0 Collateral sold, repledged, delivered or otherwise used1,426.4 1,210.7 Collateral The Firm accepts financial assets as collateral that it is permitted to sell or repledge, deliver or otherwise use." - Updated: "December 31, (in billions)20252024Collateral permitted to be sold or repledged, delivered, or otherwise used$1,771.0 $1,544.0 Collateral sold, repledged, delivered or otherwise used1,426.4 1,210.7 JPMorgan Chase & Co./2025 Form 10-K301 JPMorgan Chase & Co./2025 Form 10-K301 JPMorgan Chase & Co./2025 Form 10-K301 JPMorgan Chase & Co./2025 Form 10-K 301" **Prior (2025):** The Firm pledges financial assets that it owns to maintain potential borrowing capacity at discount windows with Federal Reserve banks, various other central banks and FHLBs. Additionally, the Firm pledges assets for other purposes, including to collateralize repurchase and other securities financing agreements, to cover short sales and to collateralize derivative contracts and deposits. Certain of these pledged assets may be sold or repledged or otherwise used by the secured parties and are parenthetically identified on the Consolidated balance sheets as assets pledged. The following table presents the carrying value of the Firm's pledged assets. December 31, (in billions)20242023Assets that may be sold or repledged or otherwise used by secured parties$152.5 $145.0 Assets that may not be sold or repledged or otherwise used by secured parties297.9 244.2 Assets pledged at Federal Reserve banks and FHLBs724.0 675.6 Total pledged assets$1,174.4 $1,064.8 Total pledged assets do not include assets of consolidated VIEs; these assets are used to settle the liabilities of those entities. Refer to Note 14 for additional information on assets and liabilities of consolidated VIEs. Refer to Note 11 for additional information on the Firm's securities financing activities. Refer to Note 20 for additional information on the Firm's long-term debt. The significant components of the Firm's pledged assets were as follows. December 31, (in billions)20242023Investment securities$89.6 $108.6 Loans740.9 681.7 Trading assets and other343.9 274.5 Total pledged assets$1,174.4 $1,064.8 Collateral The Firm accepts financial assets as collateral that it is permitted to sell or repledge, deliver or otherwise use. This collateral is generally obtained under resale and other securities financing agreements, prime brokerage-related held-for-investment customer receivables and derivative contracts. Collateral is generally used under repurchase and other securities financing agreements, to cover short sales, and to collateralize derivative contracts and deposits. The following table presents the fair value of collateral accepted. December 31, (in billions)20242023Collateral permitted to be sold or repledged, delivered, or otherwise used$1,544.0 $1,303.9 Collateral sold, repledged, delivered or otherwise used1,210.7 982.8 Collateral The Firm accepts financial assets as collateral that it is permitted to sell or repledge, deliver or otherwise use. This collateral is generally obtained under resale and other securities financing agreements, prime brokerage-related held-for-investment customer receivables and derivative contracts. Collateral is generally used under repurchase and other securities financing agreements, to cover short sales, and to collateralize derivative contracts and deposits. The following table presents the fair value of collateral accepted. December 31, (in billions)20242023Collateral permitted to be sold or repledged, delivered, or otherwise used$1,544.0 $1,303.9 Collateral sold, repledged, delivered or otherwise used1,210.7 982.8 308JPMorgan Chase & Co./2024 Form 10-K 308JPMorgan Chase & Co./2024 Form 10-K 308JPMorgan Chase & Co./2024 Form 10-K 308 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** The Firm pledges financial assets that it owns to maintain potential borrowing capacity at discount windows with Federal Reserve banks, various other central banks and FHLBs. Additionally, the Firm pledges assets for other purposes, including to collateralize repurchase and other securities financing agreements, to cover short sales and to collateralize derivative contracts and deposits. Certain of these pledged assets may be sold or repledged or otherwise used by the secured parties and are parenthetically identified on the Consolidated balance sheets as assets pledged. The following table presents the carrying value of the Firm's pledged assets. December 31, (in billions)20252024Assets that may be sold or repledged or otherwise used by secured parties$185.6 $152.5 Assets that may not be sold or repledged or otherwise used by secured parties410.9 297.9 Assets pledged at Federal Reserve banks and FHLBs737.1 724.0 Total pledged assets$1,333.6 $1,174.4 Total pledged assets do not include assets of consolidated VIEs; these assets are used to settle the liabilities of those entities. Refer to Note 14 for additional information on assets and liabilities of consolidated VIEs. Refer to Note 11 for additional information on the Firm's securities financing activities. Refer to Note 20 for additional information on the Firm's long-term debt. The significant components of the Firm's pledged assets were as follows. December 31, (in billions)20252024Investment securities$82.7 $89.6 Loans763.8 740.9 Trading assets and other487.1 343.9 Total pledged assets$1,333.6 $1,174.4 Collateral The Firm accepts financial assets as collateral that it is permitted to sell or repledge, deliver or otherwise use. This collateral is generally obtained under resale and other securities financing agreements, prime brokerage-related held-for-investment customer receivables and derivative contracts. Collateral is generally used under repurchase and other securities financing agreements, to cover short sales, and to collateralize derivative contracts and deposits. The following table presents the fair value of collateral accepted. December 31, (in billions)20252024Collateral permitted to be sold or repledged, delivered, or otherwise used$1,771.0 $1,544.0 Collateral sold, repledged, delivered or otherwise used1,426.4 1,210.7 Collateral The Firm accepts financial assets as collateral that it is permitted to sell or repledge, deliver or otherwise use. This collateral is generally obtained under resale and other securities financing agreements, prime brokerage-related held-for-investment customer receivables and derivative contracts. Collateral is generally used under repurchase and other securities financing agreements, to cover short sales, and to collateralize derivative contracts and deposits. The following table presents the fair value of collateral accepted. December 31, (in billions)20252024Collateral permitted to be sold or repledged, delivered, or otherwise used$1,771.0 $1,544.0 Collateral sold, repledged, delivered or otherwise used1,426.4 1,210.7 JPMorgan Chase & Co./2025 Form 10-K301 JPMorgan Chase & Co./2025 Form 10-K301 JPMorgan Chase & Co./2025 Form 10-K301 JPMorgan Chase & Co./2025 Form 10-K 301 --- ## Modified Risk: Management's discussion and analysis **Key changes:** - Updated: "GSIB top-tier holding companies, including the Firm, to maintain minimum levels of external TLAC and eligible long-term debt.The external TLAC requirements and the minimum level of eligible long-term debt requirements for the year ended December 31, 2025 are shown below:(a)RWA is the greater of Standardized and Advanced compared to their respective regulatory capital ratio requirements.Failure to maintain TLAC equal to or in excess of the regulatory minimum plus applicable buffers will result in limitations on the amount of capital that the Firm may distribute, such as through dividends and common share repurchases, as well as on discretionary bonus payments for certain executive officers.The following table presents the eligible external TLAC and eligible LTD amounts, as well as a representation of these amounts as a percentage of the Firm's total RWA and total leverage exposure." - Updated: "GSIB top-tier holding companies, including the Firm, to maintain minimum levels of external TLAC and eligible long-term debt.The external TLAC requirements and the minimum level of eligible long-term debt requirements for the year ended December 31, 2025 are shown below:(a)RWA is the greater of Standardized and Advanced compared to their respective regulatory capital ratio requirements.Failure to maintain TLAC equal to or in excess of the regulatory minimum plus applicable buffers will result in limitations on the amount of capital that the Firm may distribute, such as through dividends and common share repurchases, as well as on discretionary bonus payments for certain executive officers." **Prior (2025):** Other capital requirements Total Loss-Absorbing CapacityThe Federal Reserve's TLAC rule requires the U.S. GSIB top-tier holding companies, including the Firm, to maintain minimum levels of external TLAC and eligible long-term debt.The external TLAC requirements and the minimum level of eligible long-term debt requirements are shown below:(a)RWA is the greater of Standardized and Advanced compared to their respective regulatory capital ratio requirements.Failure to maintain TLAC equal to or in excess of the regulatory minimum plus applicable buffers will result in limitations on the amount of capital that the Firm may distribute, such as through dividends and common share repurchases, as well as on discretionary bonus payments for certain executive officers.The following table presents the eligible external TLAC and eligible LTD amounts, as well as a representation of these amounts as a percentage of the Firm's total RWA and total leverage exposure applying the impact of the CECL capital transition provisions as of December 31, 2024 and 2023.December 31, 2024December 31, 2023(in billions, except ratio)External TLACLTDExternal TLACLTDTotal eligible amount$546.6 $236.8 $513.8 $222.6 % of RWA31.1 %13.5 %30.7 %13.3 %Regulatory requirements23.0 10.5 23.0 10.0 Surplus/(shortfall)$142.3 $52.3 $129.2 $55.4 % of total leverage exposure11.3 %4.9 %11.3 %4.9 %Regulatory requirements9.5 4.5 9.5 4.5 Surplus/(shortfall)$87.0 $19.2 $82.5 $18.3 Effective January 1, 2024, the Firm's regulatory requirement for its eligible LTD to RWA ratio increased by 50 bps to 10.5%, due to the increase in the Firm's GSIB Method 2 requirements. The Firm's regulatory requirement for its TLAC to RWA ratio remained at 23.0%. Refer to Risk-based Capital Regulatory Requirements on pages 100-101 for further information on the GSIB surcharge.Refer to Liquidity Risk Management on pages 108-115 for further information on long-term debt issued by the Parent Company.Refer to Part I, Item 1A: Risk Factors on pages 10-37 of this 2024 Form 10-K for information on the financial consequences to holders of the Firm's debt and equity securities in a resolution scenario. Other capital requirements Total Loss-Absorbing CapacityThe Federal Reserve's TLAC rule requires the U.S. GSIB top-tier holding companies, including the Firm, to maintain minimum levels of external TLAC and eligible long-term debt.The external TLAC requirements and the minimum level of eligible long-term debt requirements are shown below:(a)RWA is the greater of Standardized and Advanced compared to their respective regulatory capital ratio requirements.Failure to maintain TLAC equal to or in excess of the regulatory minimum plus applicable buffers will result in limitations on the amount of capital that the Firm may distribute, such as through dividends and common share repurchases, as well as on discretionary bonus payments for certain executive officers. **Current (2026):** Other capital requirements Total Loss-Absorbing CapacityThe Federal Reserve's TLAC rule requires the U.S. GSIB top-tier holding companies, including the Firm, to maintain minimum levels of external TLAC and eligible long-term debt.The external TLAC requirements and the minimum level of eligible long-term debt requirements for the year ended December 31, 2025 are shown below:(a)RWA is the greater of Standardized and Advanced compared to their respective regulatory capital ratio requirements.Failure to maintain TLAC equal to or in excess of the regulatory minimum plus applicable buffers will result in limitations on the amount of capital that the Firm may distribute, such as through dividends and common share repurchases, as well as on discretionary bonus payments for certain executive officers.The following table presents the eligible external TLAC and eligible LTD amounts, as well as a representation of these amounts as a percentage of the Firm's total RWA and total leverage exposure. As of January 1, 2025, the benefit from the CECL capital transition provision had been fully phased out. The year ended December 31, 2024 included the impact of the CECL capital transition provisions. December 31, 2025December 31, 2024(in billions, except ratio)External TLACLTDExternal TLACLTDTotal eligible amount$563.7 $246.0 $546.6 $236.8 % of RWA27.6 %12.0 %31.1 %13.5 %Regulatory requirements23.0 10.5 23.0 10.5 Surplus/(shortfall)$93.3 $31.2 $142.3 $52.3 % of total leverage exposure10.6 %4.6 %11.3 %4.9 %Regulatory requirements9.5 4.5 9.5 4.5 Surplus/(shortfall)$60.1 $7.4 $87.0 $19.2 Refer to Liquidity Risk Management on pages 100-107 for further information on long-term debt issued by the Parent Company.Refer to Part I, Item 1A: Risk Factors on pages 9-31 of this 2025 Form 10-K for information on the financial consequences to holders of the Firm's debt and equity securities in a resolution scenario. Other capital requirements Total Loss-Absorbing CapacityThe Federal Reserve's TLAC rule requires the U.S. GSIB top-tier holding companies, including the Firm, to maintain minimum levels of external TLAC and eligible long-term debt.The external TLAC requirements and the minimum level of eligible long-term debt requirements for the year ended December 31, 2025 are shown below:(a)RWA is the greater of Standardized and Advanced compared to their respective regulatory capital ratio requirements.Failure to maintain TLAC equal to or in excess of the regulatory minimum plus applicable buffers will result in limitations on the amount of capital that the Firm may distribute, such as through dividends and common share repurchases, as well as on discretionary bonus payments for certain executive officers. --- ## Modified Risk: Consolidation **Key changes:** - Updated: "The Consolidated Financial Statements include the accounts of JPMorganChase and other entities in which the Firm has a controlling financial interest." - Updated: "The Firm has elected to net such balances where it has determined that the specified conditions are met.The Firm uses master netting agreements to mitigate counterparty credit risk in certain transactions, including derivative contracts, resale, repurchase, securities borrowed and securities loaned agreements." - Updated: "Refer to Note 7 for further information.Revenue from contracts with customers JPMorganChase recognizes noninterest revenue from certain contracts with customers, in investment banking fees, deposit-related fees, asset management significantly impact the VIE's economic performance; and (2) through its interests in the VIE, the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE." **Prior (2025):** primary beneficiary is the party that has both (1) the power to direct the activities of the VIE that most significantly impact the VIE's economic performance; and (2) through its interests in the VIE, the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE.To assess whether the Firm has the power to direct the activities of a VIE that most significantly impact the VIE's economic performance, the Firm considers all the facts and circumstances, including its role in establishing the VIE and its ongoing rights and responsibilities. This assessment includes, first, identifying the activities that most significantly impact the VIE's economic performance; and second, identifying which party, if any, has power over those activities. In general, the parties that make the most significant decisions affecting the VIE (such as asset managers, collateral managers, servicers, or owners of call options or liquidation rights over the VIE's assets) or have the right to unilaterally remove those decision-makers are deemed to have the power to direct the activities of a VIE.To assess whether the Firm has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, the Firm considers all of its economic interests, including debt and equity investments, servicing fees, and derivatives or other arrangements deemed to be variable interests in the VIE. This assessment requires that the Firm apply judgment in determining whether these interests, in the aggregate, are considered potentially significant to the VIE. Factors considered in assessing significance include: the design of the VIE, including its capitalization structure; subordination of interests; payment priority; relative share of interests held across various classes within the VIE's capital structure; and the reasons why the interests are held by the Firm.The Firm performs on-going reassessments of: (1) whether entities previously evaluated under the majority voting-interest framework have become VIEs, based on certain events, and are therefore subject to the VIE consolidation framework; and (2) whether changes in the facts and circumstances regarding the Firm's involvement with a VIE cause the Firm's consolidation conclusion to change.Refer to Note 14 for further discussion of Firm-sponsored VIEs.Revenue recognition Interest income The Firm recognizes interest income on loans, debt securities, and other debt instruments, generally on a level-yield basis, based on the underlying contractual rate. Refer to Note 7 for further information.Revenue from contracts with customers JPMorganChase recognizes noninterest revenue from certain contracts with customers, in investment banking fees, deposit-related fees, asset management fees, commissions and other fees, and components of card income, when the Firm's related performance obligations are satisfied. Refer to Note 6 for further discussion of the Firm's revenue from contracts with customers. Principal transactions revenue JPMorganChase carries a portion of its assets and liabilities at fair value. Changes in fair value are reported primarily in principal transactions revenue. Refer to Notes 2 and 3 for further discussion of fair value measurement. Refer to Note 6 for further discussion of principal transactions revenue. Use of estimates in the preparation of consolidated financial statementsThe preparation of the Consolidated Financial Statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenue and expense, and disclosures of contingent assets and liabilities. Actual results could be different from these estimates.Foreign currency translationJPMorganChase revalues assets, liabilities, revenue and expense denominated in non-U.S. currencies into U.S. dollars using applicable exchange rates.Gains and losses relating to translating functional currency financial statements for U.S. reporting are included in the Consolidated statements of comprehensive income. Gains and losses relating to nonfunctional currency transactions, including non-U.S. operations where the functional currency is the U.S. dollar, are reported in the Consolidated statements of income.Offsetting assets and liabilitiesU.S. GAAP permits entities to present derivative receivables and derivative payables with the same counterparty and the related cash collateral receivables and payables on a net basis on the Consolidated balance sheets when a legally enforceable master netting agreement exists. U.S. GAAP also permits securities sold and purchased under repurchase agreements and securities borrowed or loaned under securities loan agreements to be presented net when specified conditions are met, including the existence of a legally enforceable master netting agreement. The Firm has elected to net such balances where it has determined that the specified conditions are met.The Firm uses master netting agreements to mitigate counterparty credit risk in certain transactions, including derivative contracts, resale, repurchase, securities borrowed and securities loaned primary beneficiary is the party that has both (1) the power to direct the activities of the VIE that most significantly impact the VIE's economic performance; and (2) through its interests in the VIE, the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE.To assess whether the Firm has the power to direct the activities of a VIE that most significantly impact the VIE's economic performance, the Firm considers all the facts and circumstances, including its role in establishing the VIE and its ongoing rights and responsibilities. This assessment includes, first, identifying the activities that most significantly impact the VIE's economic performance; and second, identifying which party, if any, has power over those activities. In general, the parties that make the most significant decisions affecting the VIE (such as asset managers, collateral managers, servicers, or owners of call options or liquidation rights over the VIE's assets) or have the right to unilaterally remove those decision-makers are deemed to have the power to direct the activities of a VIE.To assess whether the Firm has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, the Firm considers all of its economic interests, including debt and equity investments, servicing fees, and derivatives or other arrangements deemed to be variable interests in the VIE. This assessment requires that the Firm apply judgment in determining whether these interests, in the aggregate, are considered potentially significant to the VIE. Factors considered in assessing significance include: the design of the VIE, including its capitalization structure; subordination of interests; payment priority; relative share of interests held across various classes within the VIE's capital structure; and the reasons why the interests are held by the Firm.The Firm performs on-going reassessments of: (1) whether entities previously evaluated under the majority voting-interest framework have become VIEs, based on certain events, and are therefore subject to the VIE consolidation framework; and (2) whether changes in the facts and circumstances regarding the Firm's involvement with a VIE cause the Firm's consolidation conclusion to change.Refer to Note 14 for further discussion of Firm-sponsored VIEs.Revenue recognition Interest income The Firm recognizes interest income on loans, debt securities, and other debt instruments, generally on a level-yield basis, based on the underlying contractual rate. Refer to Note 7 for further information. primary beneficiary is the party that has both (1) the power to direct the activities of the VIE that most significantly impact the VIE's economic performance; and (2) through its interests in the VIE, the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. To assess whether the Firm has the power to direct the activities of a VIE that most significantly impact the VIE's economic performance, the Firm considers all the facts and circumstances, including its role in establishing the VIE and its ongoing rights and responsibilities. This assessment includes, first, identifying the activities that most significantly impact the VIE's economic performance; and second, identifying which party, if any, has power over those activities. In general, the parties that make the most significant decisions affecting the VIE (such as asset managers, collateral managers, servicers, or owners of call options or liquidation rights over the VIE's assets) or have the right to unilaterally remove those decision-makers are deemed to have the power to direct the activities of a VIE. To assess whether the Firm has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, the Firm considers all of its economic interests, including debt and equity investments, servicing fees, and derivatives or other arrangements deemed to be variable interests in the VIE. This assessment requires that the Firm apply judgment in determining whether these interests, in the aggregate, are considered potentially significant to the VIE. Factors considered in assessing significance include: the design of the VIE, including its capitalization structure; subordination of interests; payment priority; relative share of interests held across various classes within the VIE's capital structure; and the reasons why the interests are held by the Firm. The Firm performs on-going reassessments of: (1) whether entities previously evaluated under the majority voting-interest framework have become VIEs, based on certain events, and are therefore subject to the VIE consolidation framework; and (2) whether changes in the facts and circumstances regarding the Firm's involvement with a VIE cause the Firm's consolidation conclusion to change. Refer to Note 14 for further discussion of Firm-sponsored VIEs. **Current (2026):** The Consolidated Financial Statements include the accounts of JPMorganChase and other entities in which the Firm has a controlling financial interest. All material intercompany balances and transactions have been eliminated. Assets held for clients in an agency or fiduciary capacity by the Firm are not assets of JPMorganChase and are not included on the Consolidated balance sheets. The Firm determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity. Voting interest entities Voting interest entities are entities that have sufficient equity and provide the equity investors voting rights that enable them to make significant decisions relating to the entity's operations. For these types of entities, the Firm's determination of whether it has a controlling interest is primarily based on the amount of voting equity interests held. Entities in which the Firm has a controlling financial interest, through ownership of the majority of the entities' voting equity interests, or through other contractual rights that give the Firm control, are consolidated by the Firm. Investments in companies in which the Firm has significant influence over operating and financing decisions (but does not own a majority of the voting equity interests) are accounted for (i) in accordance with the equity method of accounting, or (ii) at fair value if the fair value option was elected. These investments are generally included in other assets, with income or loss included in noninterest revenue. Certain Firm-sponsored asset management funds are structured as limited partnerships or limited liability companies. For many of these entities, the Firm is the general partner or managing member, but the non- affiliated partners or members have the ability to remove the Firm as the general partner or managing member without cause (i.e., kick-out rights), based on a simple majority vote, or the non-affiliated partners or members have rights to participate in important decisions. Accordingly, the Firm does not consolidate these voting interest entities. However, in the limited cases where the non-managing partners or members do not have substantive kick-out or participating rights, the Firm evaluates the funds as VIEs and consolidates the funds if the Firm is the general partner or managing member and has both power and a potentially significant interest. The Firm's investment companies and asset management funds have investments in both publicly-held and privately-held entities, including investments in buyouts, growth equity and venture opportunities. These investments are accounted for under investment company guidelines and, accordingly, irrespective of the percentage of equity ownership interests held, are carried on the Consolidated balance sheets at fair value, and are recorded in other assets, with income or loss included in noninterest revenue. If consolidated, the Firm retains the accounting under such specialized investment company guidelines.Variable interest entities VIEs are entities that, by design, either (1) lack sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties, or (2) have equity investors that do not have the ability to make significant decisions relating to the entity's operations through voting rights, or do not have the obligation to absorb the expected losses, or do not have the right to receive the residual returns of the entity.The most common type of VIE is an SPE. SPEs are commonly used in securitization transactions in order to isolate certain assets and distribute the cash flows from those assets to investors. The basic SPE structure involves a company selling assets to the SPE; the SPE funds the purchase of those assets by issuing securities to investors. The legal documents that govern the transaction specify how the cash earned on the assets must be allocated to the SPE's investors and other parties that have rights to those cash flows. SPEs are generally structured to insulate investors from claims on the SPE's assets by creditors of other entities, including the creditors of the seller of the assets. The primary beneficiary of a VIE (i.e., the party that has a controlling financial interest) is required to consolidate the assets and liabilities of the VIE. The primary beneficiary is the party that has both (1) the power to direct the activities of the VIE that most affiliated partners or members have the ability to remove the Firm as the general partner or managing member without cause (i.e., kick-out rights), based on a simple majority vote, or the non-affiliated partners or members have rights to participate in important decisions. Accordingly, the Firm does not consolidate these voting interest entities. However, in the limited cases where the non-managing partners or members do not have substantive kick-out or participating rights, the Firm evaluates the funds as VIEs and consolidates the funds if the Firm is the general partner or managing member and has both power and a potentially significant interest. The Firm's investment companies and asset management funds have investments in both publicly-held and privately-held entities, including investments in buyouts, growth equity and venture opportunities. These investments are accounted for under investment company guidelines and, accordingly, irrespective of the percentage of equity ownership interests held, are carried on the Consolidated balance sheets at fair value, and are recorded in other assets, with income or loss included in noninterest revenue. If consolidated, the Firm retains the accounting under such specialized investment company guidelines. Variable interest entities VIEs are entities that, by design, either (1) lack sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties, or (2) have equity investors that do not have the ability to make significant decisions relating to the entity's operations through voting rights, or do not have the obligation to absorb the expected losses, or do not have the right to receive the residual returns of the entity. The most common type of VIE is an SPE. SPEs are commonly used in securitization transactions in order to isolate certain assets and distribute the cash flows from those assets to investors. The basic SPE structure involves a company selling assets to the SPE; the SPE funds the purchase of those assets by issuing securities to investors. The legal documents that govern the transaction specify how the cash earned on the assets must be allocated to the SPE's investors and other parties that have rights to those cash flows. SPEs are generally structured to insulate investors from claims on the SPE's assets by creditors of other entities, including the creditors of the seller of the assets. The primary beneficiary of a VIE (i.e., the party that has a controlling financial interest) is required to consolidate the assets and liabilities of the VIE. The primary beneficiary is the party that has both (1) the power to direct the activities of the VIE that most 170JPMorgan Chase & Co./2025 Form 10-K 170JPMorgan Chase & Co./2025 Form 10-K 170JPMorgan Chase & Co./2025 Form 10-K 170 JPMorgan Chase & Co./2025 Form 10-K significantly impact the VIE's economic performance; and (2) through its interests in the VIE, the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE.To assess whether the Firm has the power to direct the activities of a VIE that most significantly impact the VIE's economic performance, the Firm considers all the facts and circumstances, including its role in establishing the VIE and its ongoing rights and responsibilities. This assessment includes, first, identifying the activities that most significantly impact the VIE's economic performance; and second, identifying which party, if any, has power over those activities. In general, the parties that make the most significant decisions affecting the VIE (such as asset managers, collateral managers, servicers, or owners of call options or liquidation rights over the VIE's assets) or have the right to unilaterally remove those decision-makers are deemed to have the power to direct the activities of a VIE.To assess whether the Firm has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, the Firm considers all of its economic interests, including debt and equity investments, servicing fees, and derivatives or other arrangements deemed to be variable interests in the VIE. This assessment requires that the Firm apply judgment in determining whether these interests, in the aggregate, are considered potentially significant to the VIE. Factors considered in assessing significance include: the design of the VIE, including its capitalization structure; subordination of interests; payment priority; relative share of interests held across various classes within the VIE's capital structure; and the reasons why the interests are held by the Firm.The Firm performs on-going reassessments of: (1) whether entities previously evaluated under the majority voting-interest framework have become VIEs, based on certain events, and are therefore subject to the VIE consolidation framework; and (2) whether changes in the facts and circumstances regarding the Firm's involvement with a VIE cause the Firm's consolidation conclusion to change.Refer to Note 14 for further discussion of Firm-sponsored VIEs.Revenue recognition Interest income The Firm recognizes interest income on loans, debt securities, and other debt instruments, generally on a level-yield basis, based on the underlying contractual rate. Refer to Note 7 for further information.Revenue from contracts with customers JPMorganChase recognizes noninterest revenue from certain contracts with customers, in investment banking fees, deposit-related fees, asset management fees, commissions and other fees, and components of card income, when the Firm's related performance obligations are satisfied. Refer to Note 6 for further discussion of the Firm's revenue from contracts with customers. Principal transactions revenue JPMorganChase carries a portion of its assets and liabilities at fair value. Changes in fair value are reported primarily in principal transactions revenue. Refer to Notes 2 and 3 for further discussion of fair value measurement. Refer to Note 6 for further discussion of principal transactions revenue. Use of estimates in the preparation of consolidated financial statementsThe preparation of the Consolidated Financial Statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenue and expense, and disclosures of contingent assets and liabilities. Actual results could be different from these estimates.Foreign currency translationJPMorganChase revalues assets, liabilities, revenue and expense denominated in non-U.S. currencies into U.S. dollars using applicable exchange rates.Gains and losses relating to translating functional currency financial statements for U.S. reporting are included in the Consolidated statements of comprehensive income. Gains and losses relating to nonfunctional currency transactions, including non-U.S. operations where the functional currency is the U.S. dollar, are reported in the Consolidated statements of income.Offsetting assets and liabilitiesU.S. GAAP permits entities to present derivative receivables and derivative payables with the same counterparty and the related cash collateral receivables and payables on a net basis on the Consolidated balance sheets when a legally enforceable master netting agreement exists. U.S. GAAP also permits securities sold and purchased under repurchase agreements and securities borrowed or loaned under securities loan agreements to be presented net when specified conditions are met, including the existence of a legally enforceable master netting agreement. The Firm has elected to net such balances where it has determined that the specified conditions are met.The Firm uses master netting agreements to mitigate counterparty credit risk in certain transactions, including derivative contracts, resale, repurchase, securities borrowed and securities loaned agreements. A master netting agreement is a single agreement with a counterparty that permits multiple transactions governed by that agreement to be terminated or accelerated and settled through a single significantly impact the VIE's economic performance; and (2) through its interests in the VIE, the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE.To assess whether the Firm has the power to direct the activities of a VIE that most significantly impact the VIE's economic performance, the Firm considers all the facts and circumstances, including its role in establishing the VIE and its ongoing rights and responsibilities. This assessment includes, first, identifying the activities that most significantly impact the VIE's economic performance; and second, identifying which party, if any, has power over those activities. In general, the parties that make the most significant decisions affecting the VIE (such as asset managers, collateral managers, servicers, or owners of call options or liquidation rights over the VIE's assets) or have the right to unilaterally remove those decision-makers are deemed to have the power to direct the activities of a VIE.To assess whether the Firm has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, the Firm considers all of its economic interests, including debt and equity investments, servicing fees, and derivatives or other arrangements deemed to be variable interests in the VIE. This assessment requires that the Firm apply judgment in determining whether these interests, in the aggregate, are considered potentially significant to the VIE. Factors considered in assessing significance include: the design of the VIE, including its capitalization structure; subordination of interests; payment priority; relative share of interests held across various classes within the VIE's capital structure; and the reasons why the interests are held by the Firm.The Firm performs on-going reassessments of: (1) whether entities previously evaluated under the majority voting-interest framework have become VIEs, based on certain events, and are therefore subject to the VIE consolidation framework; and (2) whether changes in the facts and circumstances regarding the Firm's involvement with a VIE cause the Firm's consolidation conclusion to change.Refer to Note 14 for further discussion of Firm-sponsored VIEs.Revenue recognition Interest income The Firm recognizes interest income on loans, debt securities, and other debt instruments, generally on a level-yield basis, based on the underlying contractual rate. Refer to Note 7 for further information.Revenue from contracts with customers JPMorganChase recognizes noninterest revenue from certain contracts with customers, in investment banking fees, deposit-related fees, asset management significantly impact the VIE's economic performance; and (2) through its interests in the VIE, the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. To assess whether the Firm has the power to direct the activities of a VIE that most significantly impact the VIE's economic performance, the Firm considers all the facts and circumstances, including its role in establishing the VIE and its ongoing rights and responsibilities. This assessment includes, first, identifying the activities that most significantly impact the VIE's economic performance; and second, identifying which party, if any, has power over those activities. In general, the parties that make the most significant decisions affecting the VIE (such as asset managers, collateral managers, servicers, or owners of call options or liquidation rights over the VIE's assets) or have the right to unilaterally remove those decision-makers are deemed to have the power to direct the activities of a VIE. To assess whether the Firm has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, the Firm considers all of its economic interests, including debt and equity investments, servicing fees, and derivatives or other arrangements deemed to be variable interests in the VIE. This assessment requires that the Firm apply judgment in determining whether these interests, in the aggregate, are considered potentially significant to the VIE. Factors considered in assessing significance include: the design of the VIE, including its capitalization structure; subordination of interests; payment priority; relative share of interests held across various classes within the VIE's capital structure; and the reasons why the interests are held by the Firm. The Firm performs on-going reassessments of: (1) whether entities previously evaluated under the majority voting-interest framework have become VIEs, based on certain events, and are therefore subject to the VIE consolidation framework; and (2) whether changes in the facts and circumstances regarding the Firm's involvement with a VIE cause the Firm's consolidation conclusion to change. Refer to Note 14 for further discussion of Firm-sponsored VIEs. --- ## Modified Risk: Governance and oversight **Key changes:** - Updated: "Operational Risk and Compliance is led by the Firm's Global CCO and FRE for Operational Risk and Qualitative Risk Appetite." - Updated: "Refer to Compliance Risk Management on page 150 for further discussion of the Code.Governance and oversightThe Firm's oversight and coordination of conduct risk is managed in the same manner as Compliance risk." - Updated: "Refer to Compliance Risk Management on page 150 for further discussion of the Code." - Updated: "Refer to Compliance Risk Management on page 150 for further discussion of the Code." - Updated: "Refer to Compliance Risk Management on page 150 for further information.Conduct risk management encompasses various aspects of people management practices throughout the employee life cycle, including recruiting, onboarding, training and development, performance management, promotion and compensation processes." **Prior (2025):** CONDUCT RISK MANAGEMENT CONDUCT RISK MANAGEMENT Conduct risk, a subcategory of operational risk, is the risk that any action or misconduct by an employee could lead to unfair client or customer outcomes, impact the integrity of the markets in which the Firm operates, harm employees or the Firm, or compromise the Firm's reputation.OverviewEach LOB and Corporate is accountable for identifying and managing its conduct risk to provide appropriate engagement, ownership and sustainability of a culture consistent with the Firm's Business Principles. The Business Principles serve as a guide for how employees are expected to conduct themselves. With the Business Principles serving as a guide, the Firm's Code sets out the Firm's expectations for each employee and provides information and resources to help employees conduct business ethically and in compliance with applicable laws, rules and regulations everywhere the Firm operates. Refer to Compliance Risk Management on page 157 for further discussion of the Code.Governance and oversightThe Firm's oversight and coordination of conduct risk is managed in the same manner as Compliance risk. Refer to Compliance Risk Management on page 157 for further information.Conduct risk management encompasses various aspects of people management practices throughout the employee life cycle, including recruiting, onboarding, training and development, performance management, promotion and compensation processes. Each LOB, Treasury and CIO, and each designated corporate function completes an assessment of conduct risk periodically, reviews metrics and issues which may involve conduct risk, and provides conduct education as appropriate. Conduct risk, a subcategory of operational risk, is the risk that any action or misconduct by an employee could lead to unfair client or customer outcomes, impact the integrity of the markets in which the Firm operates, harm employees or the Firm, or compromise the Firm's reputation.OverviewEach LOB and Corporate is accountable for identifying and managing its conduct risk to provide appropriate engagement, ownership and sustainability of a culture consistent with the Firm's Business Principles. The Business Principles serve as a guide for how employees are expected to conduct themselves. With the Business Principles serving as a guide, the Firm's Code sets out the Firm's expectations for each employee and provides information and resources to help employees conduct business ethically and in compliance with applicable laws, rules and regulations everywhere the Firm operates. Refer to Compliance Risk Management on page 157 for further discussion of the Code. Conduct risk, a subcategory of operational risk, is the risk that any action or misconduct by an employee could lead to unfair client or customer outcomes, impact the integrity of the markets in which the Firm operates, harm employees or the Firm, or compromise the Firm's reputation. Overview Each LOB and Corporate is accountable for identifying and managing its conduct risk to provide appropriate engagement, ownership and sustainability of a culture consistent with the Firm's Business Principles. The Business Principles serve as a guide for how employees are expected to conduct themselves. With the Business Principles serving as a guide, the Firm's Code sets out the Firm's expectations for each employee and provides information and resources to help employees conduct business ethically and in compliance with applicable laws, rules and regulations everywhere the Firm operates. Refer to Compliance Risk Management on page 157 for further discussion of the Code. Governance and oversightThe Firm's oversight and coordination of conduct risk is managed in the same manner as Compliance risk. Refer to Compliance Risk Management on page 157 for further information.Conduct risk management encompasses various aspects of people management practices throughout the employee life cycle, including recruiting, onboarding, training and development, performance management, promotion and compensation processes. Each LOB, Treasury and CIO, and each designated corporate function completes an assessment of conduct risk periodically, reviews metrics and issues which may involve conduct risk, and provides conduct education as appropriate. **Current (2026):** Operational Risk and Compliance is led by the Firm's Global CCO and FRE for Operational Risk and Qualitative Risk Appetite. The Firm maintains oversight and coordination of its compliance risk through the CCOR Management Framework. The Firm's Global CCO and FRE for Operational Risk and Qualitative Risk Appetite also provides regular updates to the Board Risk Committee and the Audit Committee on significant compliance risk issues, as appropriate. Code of Conduct The Firm has a Code of Conduct (the "Code") that sets forth the Firm's expectation that employees will conduct themselves with integrity, at all times. The Code provides the principles that help govern employee conduct with clients, customers, suppliers, vendors, shareholders, regulators, other employees, as well as with the markets and communities in which the Firm operates. The Code requires employees to promptly report any potential or actual violation of the Code, Firm policies, or laws, rules or regulations applicable to the Firm's business. It also requires employees to report any illegal or unethical conduct, or conduct that violates the underlying principles of the Code, by any of the Firm's employees, consultants, clients, customers, suppliers, contract or temporary workers, or business partners or agents. Conduct training is assigned to newly-hired employees after joining the Firm, and to current employees periodically thereafter. Employees are required to affirm their compliance with the Code annually. Employees can report any potential or actual violations of the Code through the Firm's Conduct Hotline (the "Hotline") by phone, mobile device or the internet. The Hotline is anonymous, where permitted by law, is available at all times globally, has translation services, and is administered by an outside service provider. The Code prohibits retaliation against anyone who raises an issue or concern in good faith or assists with an inquiry or investigation. Periodically, the Audit Committee receives reports on the Code of Conduct program. 150JPMorgan Chase & Co./2025 Form 10-K 150JPMorgan Chase & Co./2025 Form 10-K 150JPMorgan Chase & Co./2025 Form 10-K 150 JPMorgan Chase & Co./2025 Form 10-K CONDUCT RISK MANAGEMENT CONDUCT RISK MANAGEMENT Conduct risk, a subcategory of operational risk, is the risk that any action or misconduct by an employee could lead to unfair client or customer outcomes, impact the integrity of the markets in which the Firm operates, harm employees or the Firm, or compromise the Firm's reputation.OverviewEach LOB and Corporate is accountable for identifying and managing its conduct risk to provide appropriate engagement, ownership and sustainability of a culture consistent with the Firm's Business Principles. The Business Principles serve as a guide for how employees are expected to conduct themselves. With the Business Principles serving as a guide, the Firm's Code sets out the Firm's expectations for each employee and provides information and resources to help employees conduct business ethically and in compliance with applicable laws, rules and regulations everywhere the Firm operates. Refer to Compliance Risk Management on page 150 for further discussion of the Code.Governance and oversightThe Firm's oversight and coordination of conduct risk is managed in the same manner as Compliance risk. Refer to Compliance Risk Management on page 150 for further information.Conduct risk management encompasses various aspects of people management practices throughout the employee life cycle, including recruiting, onboarding, training and development, performance management, promotion and compensation processes. Each LOB, Treasury and CIO, and each designated corporate function completes an assessment of conduct risk periodically, reviews metrics and issues which may involve conduct risk, and provides conduct education as appropriate. Conduct risk, a subcategory of operational risk, is the risk that any action or misconduct by an employee could lead to unfair client or customer outcomes, impact the integrity of the markets in which the Firm operates, harm employees or the Firm, or compromise the Firm's reputation.OverviewEach LOB and Corporate is accountable for identifying and managing its conduct risk to provide appropriate engagement, ownership and sustainability of a culture consistent with the Firm's Business Principles. The Business Principles serve as a guide for how employees are expected to conduct themselves. With the Business Principles serving as a guide, the Firm's Code sets out the Firm's expectations for each employee and provides information and resources to help employees conduct business ethically and in compliance with applicable laws, rules and regulations everywhere the Firm operates. Refer to Compliance Risk Management on page 150 for further discussion of the Code. Conduct risk, a subcategory of operational risk, is the risk that any action or misconduct by an employee could lead to unfair client or customer outcomes, impact the integrity of the markets in which the Firm operates, harm employees or the Firm, or compromise the Firm's reputation. Overview Each LOB and Corporate is accountable for identifying and managing its conduct risk to provide appropriate engagement, ownership and sustainability of a culture consistent with the Firm's Business Principles. The Business Principles serve as a guide for how employees are expected to conduct themselves. With the Business Principles serving as a guide, the Firm's Code sets out the Firm's expectations for each employee and provides information and resources to help employees conduct business ethically and in compliance with applicable laws, rules and regulations everywhere the Firm operates. Refer to Compliance Risk Management on page 150 for further discussion of the Code. Governance and oversightThe Firm's oversight and coordination of conduct risk is managed in the same manner as Compliance risk. Refer to Compliance Risk Management on page 150 for further information.Conduct risk management encompasses various aspects of people management practices throughout the employee life cycle, including recruiting, onboarding, training and development, performance management, promotion and compensation processes. Each LOB, Treasury and CIO, and each designated corporate function completes an assessment of conduct risk periodically, reviews metrics and issues which may involve conduct risk, and provides conduct education as appropriate. --- ## Modified Risk: Market for registrant's common equity **Key changes:** - Updated: "Refer to "Five-year stock performance," on page 45 for a comparison of the cumulative total return for JPMorganChase common stock with the comparable total return of the S&P 500 Index, the KBW Bank Index and the S&P Financials Index over the five-year period ended December 31, 2025." - Updated: "On January 31, 2026, there were 202,288 holders of record of JPMorganChase common stock." - Updated: "On January 31, 2026, there were 202,288 holders of record of JPMorganChase common stock." **Prior (2025):** JPMorganChase's common stock is listed and traded on the New York Stock Exchange. Refer to "Five-year stock performance," on page 51 for a comparison of the cumulative total return for JPMorganChase common stock with the comparable total return of the S&P 500 Index, the KBW Bank Index and the S&P Financials Index over the five-year period ended December 31, 2024. Refer to Capital actions in the Capital Risk Management section of Management's discussion and analysis on page 105 for information on the common dividend payout ratio. Refer to Note 21 and Note 26 for discussions of restrictions on dividend payments. On January 31, 2025, there were 196,005 holders of record of JPMorganChase common stock. Refer to Part III, Item 12 on page 43 for information regarding securities authorized for issuance under the Firm's employee share-based incentive plans.Repurchases under the common share repurchase programRefer to Capital actions in the Capital Risk Management section of Management's discussion and analysis on page 105 for information regarding repurchases under the Firm's common share repurchase program. Refer to Capital actions in the Capital Risk Management section of Management's discussion and analysis on page 105 for information on the common dividend payout ratio. Refer to Note 21 and Note 26 for discussions of restrictions on dividend payments. On January 31, 2025, there were 196,005 holders of record of JPMorganChase common stock. Refer to Part III, Item 12 on page 43 for information regarding securities authorized for issuance under the Firm's employee share-based incentive plans. **Current (2026):** JPMorganChase's common stock is listed and traded on the New York Stock Exchange. Refer to "Five-year stock performance," on page 45 for a comparison of the cumulative total return for JPMorganChase common stock with the comparable total return of the S&P 500 Index, the KBW Bank Index and the S&P Financials Index over the five-year period ended December 31, 2025. Refer to Capital actions in the Capital Risk Management section of Management's discussion and analysis on page 97 for information on the common dividend payout ratio. Refer to Note 21 and Note 26 for discussions of restrictions on dividend payments. On January 31, 2026, there were 202,288 holders of record of JPMorganChase common stock. Refer to Part III, Item 12 on page 38 for information regarding securities authorized for issuance under the Firm's employee share-based incentive plans.Repurchases under the common share repurchase programRefer to Capital actions in the Capital Risk Management section of Management's discussion and analysis on page 97 for information regarding repurchases under the Firm's common share repurchase program. Refer to Capital actions in the Capital Risk Management section of Management's discussion and analysis on page 97 for information on the common dividend payout ratio. Refer to Note 21 and Note 26 for discussions of restrictions on dividend payments. On January 31, 2026, there were 202,288 holders of record of JPMorganChase common stock. Refer to Part III, Item 12 on page 38 for information regarding securities authorized for issuance under the Firm's employee share-based incentive plans. --- ## Modified Risk: Total treasury - balance at December 31 **Key changes:** - Updated: "On July 1, 2025, the Firm announced that its Board of Directors had authorized a new $50 billion common share repurchase program, effective July 1, 2025." - Updated: "The Firm's common share repurchases may be suspended by management at any time; and may be executed through open market purchases or privately negotiated transactions, or utilizing Rule 10b5-1 plans, which are written trading plans that the Firm may enter into from time to time under Rule 10b5-1 of the Securities Exchange Act of 1934 and which allow the Firm to repurchase its common shares during periods when it may otherwise not be repurchasing common shares - for example, during internal trading blackout periods.As of December 31, 2025, approximately 50.0 million shares of common stock were reserved for issuance under various employee incentive, compensation, option and stock purchase plans, and directors' compensation plans." - Updated: "The common share repurchase program approved by the Board of Directors does not establish specific price targets or timetables." - Updated: "As of December 31, 2025, approximately 50.0 million shares of common stock were reserved for issuance under various employee incentive, compensation, option and stock purchase plans, and directors' compensation plans." **Prior (2025):** On June 28, 2024, the Firm announced that its Board of Directors had authorized a new $30 billion common share repurchase program, effective July 1, 2024. Through June 30, 2024, the Firm was authorized to purchase up to $30 billion of common shares under its previously-approved common share repurchase program that was announced on April 13, 2022. The following table sets forth the Firm's repurchases of common stock for the years ended December 31, 2024, 2023 and 2022.Year ended December 31,(in millions)202420232022(b)Total number of shares of common stock repurchased91.7 69.5 23.1 Aggregate purchase price of common stock repurchases(a)$18,841 $9,898 $3,122 (a)Excludes excise tax and commissions. As part of the Inflation Reduction Act of 2022, a 1% excise tax is imposed on net share repurchases commencing January 1, 2023.(b)In the second half of 2022, the Firm temporarily suspended share repurchases, which it resumed in the first quarter of 2023 under its common share repurchase program.The Board of Directors' authorization to repurchase common shares is utilized at management's discretion. The $30 billion common share repurchase program approved by the Board of Directors does not establish specific price targets or timetables. Management determines the amount and timing of common share repurchases based on various factors, including market conditions; legal and regulatory considerations affecting the amount and timing of repurchase activity; the Firm's capital position (taking into account goodwill and intangibles); organic capital generation; current and proposed future capital requirements; and other investment opportunities. The amount of common shares that the Firm repurchases in any period may be substantially more or less than the amounts estimated or actually repurchased in prior periods, reflecting the dynamic nature of the decision-making process. The Firm's common share repurchases may be suspended by management at any time; and may be executed through open market purchases or privately negotiated transactions, or utilizing Rule 10b5-1 plans, which are written trading plans that the Firm may enter into from time to time under Rule 10b5-1 of the Securities Exchange Act of 1934 and which allow the Firm to repurchase its common shares during periods when it may otherwise not be repurchasing common shares - for example, during internal trading blackout periods.As of December 31, 2024, approximately 58.8 million shares of common stock were reserved for issuance under various employee incentive, compensation, option and stock purchase plans, and directors' compensation plans. The following table sets forth the Firm's repurchases of common stock for the years ended December 31, 2024, 2023 and 2022. Year ended December 31,(in millions)202420232022(b)Total number of shares of common stock repurchased91.7 69.5 23.1 Aggregate purchase price of common stock repurchases(a)$18,841 $9,898 $3,122 2022(b) Aggregate purchase price of common stock repurchases(a) (a)Excludes excise tax and commissions. As part of the Inflation Reduction Act of 2022, a 1% excise tax is imposed on net share repurchases commencing January 1, 2023. (b)In the second half of 2022, the Firm temporarily suspended share repurchases, which it resumed in the first quarter of 2023 under its common share repurchase program. The Board of Directors' authorization to repurchase common shares is utilized at management's discretion. The $30 billion common share repurchase program approved by the Board of Directors does not establish specific price targets or timetables. Management determines the amount and timing of common share repurchases based on various factors, including market conditions; legal and regulatory considerations affecting the amount and timing of repurchase activity; the Firm's capital position (taking into account goodwill and intangibles); organic capital generation; current and proposed future capital requirements; and other investment opportunities. The amount of common shares that the Firm repurchases in any period may be substantially more or less than the amounts estimated or actually repurchased in prior periods, reflecting the dynamic nature of the decision-making process. The Firm's common share repurchases may be suspended by management at any time; and may be executed through open market purchases or privately negotiated transactions, or utilizing Rule 10b5-1 plans, which are written trading plans that the Firm may enter into from time to time under Rule 10b5-1 of the Securities Exchange Act of 1934 and which allow the Firm to repurchase its common shares during periods when it may otherwise not be repurchasing common shares - for example, during internal trading blackout periods. As of December 31, 2024, approximately 58.8 million shares of common stock were reserved for issuance under various employee incentive, compensation, option and stock purchase plans, and directors' compensation plans. JPMorgan Chase & Co./2024 Form 10-K293 JPMorgan Chase & Co./2024 Form 10-K293 JPMorgan Chase & Co./2024 Form 10-K293 JPMorgan Chase & Co./2024 Form 10-K 293 **Current (2026):** On July 1, 2025, the Firm announced that its Board of Directors had authorized a new $50 billion common share repurchase program, effective July 1, 2025. Through June 30, 2025, the Firm was authorized to purchase up to $30 billion of common shares under its previously-approved common share repurchase program that was announced on June 28, 2024. The following table sets forth the Firm's repurchases of common stock for the years ended December 31, 2025, 2024 and 2023.Year ended December 31,(in millions)202520242023Total number of shares of common stock repurchased114.4 91.7 69.5 Aggregate purchase price of common stock repurchases(a)$31,640 $18,841 $9,898 (a)Excludes excise tax and commissions.The Board of Directors' authorization to repurchase common shares is utilized at management's discretion. The common share repurchase program approved by the Board of Directors does not establish specific price targets or timetables. Management determines the amount and timing of common share repurchases based on various factors, including market conditions; legal and regulatory considerations affecting the amount and timing of repurchase activity; the Firm's capital position (taking into account goodwill and intangibles); organic capital generation; current and proposed future capital requirements; and other investment opportunities. The amount of common shares that the Firm repurchases in any period may be substantially more or less than the amounts estimated or actually repurchased in prior periods, reflecting the dynamic nature of the decision-making process. The Firm's common share repurchases may be suspended by management at any time; and may be executed through open market purchases or privately negotiated transactions, or utilizing Rule 10b5-1 plans, which are written trading plans that the Firm may enter into from time to time under Rule 10b5-1 of the Securities Exchange Act of 1934 and which allow the Firm to repurchase its common shares during periods when it may otherwise not be repurchasing common shares - for example, during internal trading blackout periods.As of December 31, 2025, approximately 50.0 million shares of common stock were reserved for issuance under various employee incentive, compensation, option and stock purchase plans, and directors' compensation plans. The following table sets forth the Firm's repurchases of common stock for the years ended December 31, 2025, 2024 and 2023. Year ended December 31,(in millions)202520242023Total number of shares of common stock repurchased114.4 91.7 69.5 Aggregate purchase price of common stock repurchases(a)$31,640 $18,841 $9,898 Aggregate purchase price of common stock repurchases(a) (a)Excludes excise tax and commissions. The Board of Directors' authorization to repurchase common shares is utilized at management's discretion. The common share repurchase program approved by the Board of Directors does not establish specific price targets or timetables. Management determines the amount and timing of common share repurchases based on various factors, including market conditions; legal and regulatory considerations affecting the amount and timing of repurchase activity; the Firm's capital position (taking into account goodwill and intangibles); organic capital generation; current and proposed future capital requirements; and other investment opportunities. The amount of common shares that the Firm repurchases in any period may be substantially more or less than the amounts estimated or actually repurchased in prior periods, reflecting the dynamic nature of the decision-making process. The Firm's common share repurchases may be suspended by management at any time; and may be executed through open market purchases or privately negotiated transactions, or utilizing Rule 10b5-1 plans, which are written trading plans that the Firm may enter into from time to time under Rule 10b5-1 of the Securities Exchange Act of 1934 and which allow the Firm to repurchase its common shares during periods when it may otherwise not be repurchasing common shares - for example, during internal trading blackout periods. As of December 31, 2025, approximately 50.0 million shares of common stock were reserved for issuance under various employee incentive, compensation, option and stock purchase plans, and directors' compensation plans. JPMorgan Chase & Co./2025 Form 10-K285 JPMorgan Chase & Co./2025 Form 10-K285 JPMorgan Chase & Co./2025 Form 10-K285 JPMorgan Chase & Co./2025 Form 10-K 285 --- ## Modified Risk: Pre-provision profit(a) **Key changes:** - Updated: "(e) Tangible book value per share ("TBVPS")(a) Return on tangible common equity ("ROTCE")(a) Firm Liquidity coverage ratio ("LCR") (average)(b) JPMorgan Chase Bank, N.A." **Prior (2025):** Tangible book value per share ("TBVPS")(a) Return on tangible common equity ("ROTCE")(a) Firm Liquidity coverage ratio ("LCR") (average)(b) JPMorgan Chase Bank, N.A. LCR (average)(b) Common equity Tier 1 ("CET1") capital ratio(c)(d) Tier 1 capital ratio(c)(d) Total capital ratio(c)(d) Tier 1 leverage ratio(b)(c) Supplementary leverage ratio ("SLR")(b)(c) **Current (2026):** (e) Tangible book value per share ("TBVPS")(a) Return on tangible common equity ("ROTCE")(a) Firm Liquidity coverage ratio ("LCR") (average)(b) JPMorgan Chase Bank, N.A. LCR (average)(b) Common equity Tier 1 ("CET1") capital ratio - Standardized(c)(d) (f) Tier 1 capital ratio - Standardized(c)(d) (f) Total capital ratio - Standardized(c)(d) (f) Tier 1 leverage ratio(b)(c) Supplementary leverage ratio ("SLR")(b)(c) --- ## Modified Risk: Contingency Capital Plan **Key changes:** - Updated: "Under the rules currently in effect, two comprehensive approaches are prescribed for calculating Basel III RWA: a standardized approach ("Standardized"), and an advanced approach ("Advanced")." **Prior (2025):** The Firm's Contingency Capital Plan establishes the capital management framework for the Firm and specifies the principles underlying the Firm's approach towards capital management in normal economic conditions and in stressed environments. The Contingency Capital Plan defines how the Firm calibrates its targeted capital levels and meets minimum capital requirements, monitors the ongoing appropriateness of planned capital distributions, and sets out the capital contingency actions that are expected to be taken or considered at various levels of capital depletion during a period of stress. Regulatory capitalThe Federal Reserve establishes capital requirements, including well-capitalized standards, for the Firm as a consolidated financial holding company. The Office of the Comptroller of the Currency ("OCC") establishes similar minimum capital requirements and standards for the Firm's principal IDI subsidiary, JPMorgan Chase Bank, N.A. The U.S. capital requirements generally follow the Capital Accord of the Basel Committee, as amended from time to time.Basel III Overview The capital rules under Basel III establish minimum capital ratios and overall capital adequacy standards for large and internationally active U.S. BHCs and banks, including the Firm and JPMorgan Chase Bank, N.A. The minimum amount of regulatory capital that must be held by BHCs and banks is determined by calculating RWA, which are on-balance sheet assets and off-balance sheet exposures, weighted according to risk. Under the rules currently in effect, two comprehensive approaches are prescribed for calculating RWA: a standardized approach ("Basel III Standardized"), and an advanced approach ("Basel III Advanced"). For each of these risk-based capital ratios, the capital adequacy of the Firm is evaluated against the lower of the Standardized or Advanced approaches compared to their respective regulatory capital ratio requirements.The current Basel III rules establish capital requirements for calculating credit risk RWA and market risk RWA, and in the case of Basel III Advanced, operational risk RWA. Key differences in the calculation of credit risk RWA between the Standardized and Advanced approaches are that for Basel III Advanced, credit risk RWA is based on risk-sensitive approaches which largely rely on the use of internal credit models and parameters, whereas for Basel III Standardized, credit risk RWA is generally based on supervisory risk-weightings which vary primarily by counterparty type and asset class. Market risk RWA is generally calculated consistently between Basel III Standardized and Basel III Advanced. In addition to the RWA calculated under these approaches, the Firm may supplement such amounts to incorporate management judgment and feedback from its regulators.As of December 31, 2024, the Firm's Basel III Standardized ratios risk-based ratios were more binding than the Basel III Advanced risk-based ratios. Additionally, Basel III requires that Advanced Approaches banking organizations, including the Firm, calculate their SLRs. Refer to page 104 for additional information on SLR. **Current (2026):** The Firm's Contingency Capital Plan establishes the capital management framework for the Firm and specifies the principles underlying the Firm's approach towards capital management in normal economic conditions and in stressed environments. The Contingency Capital Plan defines how the Firm calibrates its targeted capital levels and meets minimum capital requirements, monitors the ongoing appropriateness of planned capital distributions, and sets out the capital contingency actions that are expected to be taken or considered at various levels of capital depletion during a period of stress. Regulatory capitalThe Federal Reserve establishes capital requirements, including well-capitalized standards, for the Firm as a consolidated financial holding company. The Office of the Comptroller of the Currency ("OCC") establishes similar minimum capital requirements and standards for the Firm's principal IDI subsidiary, JPMorgan Chase Bank, N.A. The U.S. capital requirements generally follow the Capital Accord of the Basel Committee, as amended from time to time.Basel III Overview The capital rules under Basel III establish minimum capital ratios and overall capital adequacy standards for large and internationally active U.S. BHCs and banks, including the Firm and JPMorgan Chase Bank, N.A. The minimum amount of regulatory capital that must be held by BHCs and banks is determined by calculating RWA, which are on-balance sheet assets and off-balance sheet exposures, weighted according to risk. Under the rules currently in effect, two comprehensive approaches are prescribed for calculating Basel III RWA: a standardized approach ("Standardized"), and an advanced approach ("Advanced"). For each of these risk-based capital ratios, the capital adequacy of the Firm is evaluated against the lower of the Standardized or Advanced approaches compared to their respective regulatory capital ratio requirements.The current Basel III rules establish capital requirements for calculating credit risk RWA and market risk RWA, and in the case of Advanced, operational risk RWA. Key differences in the calculation of credit risk RWA between the Standardized and Advanced approaches are that for Advanced, credit risk RWA is based on risk-sensitive approaches which largely rely on the use of internal credit models and parameters, whereas for Standardized, credit risk RWA is generally based on supervisory risk-weightings which vary primarily by counterparty type and asset class. The models used in Advanced are subject to periodic review and calibration, which can impact RWA results. Market risk RWA is generally calculated consistently between Standardized and Advanced. In addition to the RWA calculated under these approaches, the Firm may supplement such amounts to incorporate management judgment and feedback from its regulators.As of December 31, 2025, the Advanced risk-based ratios became more binding on the Firm than the Standardized risk-based ratios, primarily reflecting the increase in Advanced RWA related to the Apple Card transaction and a reduction in the Firm's SCB requirement which only applies to the Standardized risk-based ratios. --- ## Modified Risk: Year ended December 31, 2025 **Key changes:** - Updated: "(in millions, except ratios) Extended loans by a weighted-average of 14 months Provided payment deferrals with delayed amounts primarily recaptured at maturity Other-than-insignificant payment deferral and term extension Provided payment deferrals with delayed amounts recaptured at maturity and extended loans by a weighted-average of 28 months Other(a) (a) Includes loans with single and multiple modifications." **Prior (2025):** Extended loans by a weighted-average of 21 months Provided payment deferrals with delayed amounts re-amortized over the remaining tenor Provided payment deferrals with delayed amounts recaptured at maturity and reduced weighted-average contractual interest by 162 bps Secured by real estateYear ended December 31, 2023(in millions, except ratios)Amortized cost basis% of loan modifications to total retained Secured by real estate loansFinancial effect of loan modificationsSingle modificationsTerm extension$149 0.09 %Extended loans by a weighted-average of 14 monthsOther-than-insignificant payment deferral3 - Provided payment deferrals with delayed amounts primarily re-amortized over the remaining life of the loanMultiple modificationsOther-than-insignificant payment deferral and interest rate reduction5 - Provided payment deferrals with delayed amounts primarily recaptured at maturity and reduced weighted-average contractual interest by 184 bpsOther(a)3 - NMTotal$160 Extended loans by a weighted-average of 14 months Provided payment deferrals with delayed amounts primarily recaptured at maturity and reduced weighted-average contractual interest by 184 bps Other(a) (a) Includes a loan with multiple modifications. 262JPMorgan Chase & Co./2024 Form 10-K 262JPMorgan Chase & Co./2024 Form 10-K 262JPMorgan Chase & Co./2024 Form 10-K 262 JPMorgan Chase & Co./2024 Form 10-K (in millions, except ratios)Commercial and industrialYear ended December 31, 2024Amortized cost basis% of loan modifications to total retained Commercial and industrial loansFinancial effect of loan modificationsSingle modificationsTerm extension$1,180 0.71 %Extended loans by a weighted-average of 20 monthsOther-than-insignificant payment deferral464 0.28 Provided payment deferrals with delayed amounts primarily re-amortized over the remaining tenorMultiple modificationsOther-than-insignificant payment deferral and term extension175 0.10 Provided payment deferrals with delayed amounts recaptured at maturity and extended loans by a weighted-average of 18 monthsInterest rate reduction and term extension51 0.03 Reduced weighted-average contractual interest by 434 bps and extended loans by a weighted-average of 36 monthsOther(a)30 0.02 NMTotal$1,900 (in millions, except ratios) **Current (2026):** (in millions, except ratios) Extended loans by a weighted-average of 14 months Provided payment deferrals with delayed amounts primarily recaptured at maturity Other-than-insignificant payment deferral and term extension Provided payment deferrals with delayed amounts recaptured at maturity and extended loans by a weighted-average of 28 months Other(a) (a) Includes loans with single and multiple modifications. Secured by real estateYear ended December 31, 2024(in millions, except ratios)Amortized cost basis% of loan modifications to total retained Secured by real estate loansFinancial effect of loan modificationsSingle modificationsTerm extension$271 0.17 %Extended loans by a weighted-average of 21 monthsOther-than-insignificant payment deferral37 0.02 Provided payment deferrals with delayed amounts re-amortized over the remaining tenorMultiple modificationsOther-than-insignificant payment deferral and interest rate reduction46 0.03 Provided payment deferrals with delayed amounts recaptured at maturity and reduced weighted-average contractual interest by 162 bpsTotal$354 Year ended December 31, 2024 (in millions, except ratios) Extended loans by a weighted-average of 21 months Provided payment deferrals with delayed amounts recaptured at maturity and reduced weighted-average contractual interest by 162 bps Secured by real estateYear ended December 31, 2023(in millions, except ratios)Amortized cost basis% of loan modifications to total retained Secured by real estate loansFinancial effect of loan modificationsSingle modificationsTerm extension$149 0.09 %Extended loans by a weighted-average of 14 monthsOther-than-insignificant payment deferral3 - NMMultiple modificationsOther-than-insignificant payment deferral and interest rate reduction5 - Provided payment deferrals with delayed amounts primarily recaptured at maturity and reduced weighted-average contractual interest 184 bpsOther(a)3 - NMTotal$160 Extended loans by a weighted-average of 14 months Provided payment deferrals with delayed amounts primarily recaptured at maturity and reduced weighted-average contractual interest 184 bps Other(a) (a) Includes a loan with multiple modifications. 254JPMorgan Chase & Co./2025 Form 10-K 254JPMorgan Chase & Co./2025 Form 10-K 254JPMorgan Chase & Co./2025 Form 10-K 254 JPMorgan Chase & Co./2025 Form 10-K Commercial and industrialYear ended December 31, 2025(in millions, except ratios)Amortized cost basis% of loan modifications to total retained Commercial and industrial loansFinancial effect of loan modificationsSingle modificationsTerm extension$1,308 0.75 %Extended loans by a weighted-average of 19 monthsOther-than-insignificant payment deferral689 0.40 Provided payment deferrals with delayed amounts primarily recaptured at the end of the deferral periodMultiple modificationsOther-than-insignificant payment deferral and term extension247 0.14 Provided payment deferrals with delayed amounts primarily recaptured at maturity and extended loans by a weighted-average of 20 monthsOther-than-insignificant payment deferral, interest rate reduction, and term extension86 0.05 Provided payment deferrals with delayed amounts recaptured at maturity, reduced weighted-average contractual interest by 1060 bps and extended loans by a weighted-average of 16 monthsInterest rate reduction and term extension67 0.04 Reduced weighted-average contractual interest by 672 bps and extended loans by a weighted-average of 15 monthsOther-than-insignificant payment deferral, principal forgiveness, and term extension19 0.01 Provided payment deferrals with delayed amounts recaptured at maturity, reduced amortized cost basis of the loan by $37 million and extended the loan by a weighted-average of 42 monthsOther(a)45 0.03 Reduced the net amortized cost basis by $273 million due to modified loans that include principal forgivenessTotal$2,461 --- ## Modified Risk: Note 4 - Credit risk concentrations **Key changes:** - Updated: "Refer to Note 12 for additional information on loans.The Firm does not believe that its exposure to any particular loan product or industry segment results in a significant concentration of credit risk." - Updated: "Refer to Note 12 for additional information on loans.The Firm does not believe that its exposure to any particular loan product or industry segment results in a significant concentration of credit risk." - Updated: "200JPMorgan Chase & Co./2025 Form 10-K 200JPMorgan Chase & Co./2025 Form 10-K 200JPMorgan Chase & Co./2025 Form 10-K 200 JPMorgan Chase & Co./2025 Form 10-K The table below presents both on-balance sheet and off-balance sheet consumer and wholesale credit exposure by the Firm's three credit portfolio segments as of December 31, 2025 and 2024." **Prior (2025):** Concentrations of credit risk arise when a number of clients, counterparties or customers are engaged in similar business activities or activities in the same geographic region, or when they have similar economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic conditions.JPMorganChase regularly monitors various segments of its credit portfolios to assess potential credit risk concentrations and to obtain additional collateral when deemed necessary and permitted under the Firm's agreements. Senior management is significantly involved in the credit approval and review process, and risk levels are adjusted as needed to reflect the Firm's risk appetite.In the Firm's consumer portfolio, concentrations are managed primarily by product and by U.S. geographic region, with a key focus on trends and concentrations at the portfolio level, where potential credit risk concentrations can be remedied through changes in underwriting policies and portfolio guidelines. Refer to Note 12 for additional information on the geographic composition of the Firm's consumer loan portfolios. In the wholesale portfolio, credit risk concentrations are evaluated primarily by industry and monitored regularly on both an aggregate portfolio level and on an individual client or counterparty basis. The Firm's wholesale exposure is managed through loan syndications and participations, loan sales, securitizations, credit derivatives, master netting agreements, collateral and other risk-reduction techniques. Refer to Note 12 for additional information on loans. The Firm does not believe that its exposure to any particular loan product or industry segment results in a significant concentration of credit risk. Terms of loan products and collateral coverage are included in the Firm's assessment when extending credit and establishing its allowance for credit losses. Refer to Note 13 for additional information on the allowance for credit losses. Concentrations of credit risk arise when a number of clients, counterparties or customers are engaged in similar business activities or activities in the same geographic region, or when they have similar economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic conditions.JPMorganChase regularly monitors various segments of its credit portfolios to assess potential credit risk concentrations and to obtain additional collateral when deemed necessary and permitted under the Firm's agreements. Senior management is significantly involved in the credit approval and review process, and risk levels are adjusted as needed to reflect the Firm's risk appetite.In the Firm's consumer portfolio, concentrations are managed primarily by product and by U.S. geographic region, with a key focus on trends and concentrations at the portfolio level, where potential credit risk concentrations can be remedied through changes in underwriting policies and portfolio guidelines. Refer to Note 12 for additional information on the geographic composition of the Firm's consumer loan portfolios. In the wholesale portfolio, credit risk concentrations are evaluated primarily by industry and monitored regularly on both an aggregate portfolio level and on an individual client or counterparty basis. Concentrations of credit risk arise when a number of clients, counterparties or customers are engaged in similar business activities or activities in the same geographic region, or when they have similar economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic conditions. JPMorganChase regularly monitors various segments of its credit portfolios to assess potential credit risk concentrations and to obtain additional collateral when deemed necessary and permitted under the Firm's agreements. Senior management is significantly involved in the credit approval and review process, and risk levels are adjusted as needed to reflect the Firm's risk appetite. In the Firm's consumer portfolio, concentrations are managed primarily by product and by U.S. geographic region, with a key focus on trends and concentrations at the portfolio level, where potential credit risk concentrations can be remedied through changes in underwriting policies and portfolio guidelines. Refer to Note 12 for additional information on the geographic composition of the Firm's consumer loan portfolios. In the wholesale portfolio, credit risk concentrations are evaluated primarily by industry and monitored regularly on both an aggregate portfolio level and on an individual client or counterparty basis. The Firm's wholesale exposure is managed through loan syndications and participations, loan sales, securitizations, credit derivatives, master netting agreements, collateral and other risk-reduction techniques. Refer to Note 12 for additional information on loans. The Firm does not believe that its exposure to any particular loan product or industry segment results in a significant concentration of credit risk. Terms of loan products and collateral coverage are included in the Firm's assessment when extending credit and establishing its allowance for credit losses. Refer to Note 13 for additional information on the allowance for credit losses. The Firm's wholesale exposure is managed through loan syndications and participations, loan sales, securitizations, credit derivatives, master netting agreements, collateral and other risk-reduction techniques. Refer to Note 12 for additional information on loans. The Firm does not believe that its exposure to any particular loan product or industry segment results in a significant concentration of credit risk. Terms of loan products and collateral coverage are included in the Firm's assessment when extending credit and establishing its allowance for credit losses. Refer to Note 13 for additional information on the allowance for credit losses. JPMorgan Chase & Co./2024 Form 10-K207 JPMorgan Chase & Co./2024 Form 10-K207 JPMorgan Chase & Co./2024 Form 10-K207 JPMorgan Chase & Co./2024 Form 10-K 207 **Current (2026):** Concentrations of credit risk arise when a number of clients, counterparties or customers are engaged in similar business activities or activities in the same geographic region, or when they have similar economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic conditions.JPMorganChase regularly monitors various segments of its credit portfolios to assess potential credit risk concentrations and to obtain additional collateral when deemed necessary and permitted under the Firm's agreements. Senior management is significantly involved in the credit approval and review process, and risk levels are adjusted as needed to reflect the Firm's risk appetite.In the Firm's consumer portfolio, concentrations are managed primarily by product and by U.S. geographic region, with a key focus on trends and concentrations at the portfolio level, where potential credit risk concentrations can be remedied through changes in underwriting policies and portfolio guidelines. Refer to Note 12 for additional information on the geographic composition of the Firm's consumer loan portfolios. In the wholesale portfolio, credit risk concentrations are evaluated primarily by industry and monitored regularly on both an aggregate portfolio level and on an individual client or counterparty basis. The Firm's wholesale exposure is managed through loan syndications and participations, loan sales, securitizations, credit derivatives, master netting agreements, collateral and other risk-reduction techniques. Refer to Note 12 for additional information on loans.The Firm does not believe that its exposure to any particular loan product or industry segment results in a significant concentration of credit risk. Terms of loan products and collateral coverage are included in the Firm's assessment when extending credit and establishing its allowance for credit losses. Refer to Note 13 for additional information on the allowance for credit losses. Concentrations of credit risk arise when a number of clients, counterparties or customers are engaged in similar business activities or activities in the same geographic region, or when they have similar economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic conditions.JPMorganChase regularly monitors various segments of its credit portfolios to assess potential credit risk concentrations and to obtain additional collateral when deemed necessary and permitted under the Firm's agreements. Senior management is significantly involved in the credit approval and review process, and risk levels are adjusted as needed to reflect the Firm's risk appetite.In the Firm's consumer portfolio, concentrations are managed primarily by product and by U.S. geographic region, with a key focus on trends and concentrations at the portfolio level, where potential credit risk concentrations can be remedied through changes in underwriting policies and portfolio guidelines. Refer to Note 12 for additional information on the geographic composition of the Firm's consumer loan portfolios. In the wholesale portfolio, credit risk concentrations are evaluated primarily by industry and monitored regularly on both an aggregate portfolio level and on an individual client or counterparty basis. Concentrations of credit risk arise when a number of clients, counterparties or customers are engaged in similar business activities or activities in the same geographic region, or when they have similar economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic conditions. JPMorganChase regularly monitors various segments of its credit portfolios to assess potential credit risk concentrations and to obtain additional collateral when deemed necessary and permitted under the Firm's agreements. Senior management is significantly involved in the credit approval and review process, and risk levels are adjusted as needed to reflect the Firm's risk appetite. In the Firm's consumer portfolio, concentrations are managed primarily by product and by U.S. geographic region, with a key focus on trends and concentrations at the portfolio level, where potential credit risk concentrations can be remedied through changes in underwriting policies and portfolio guidelines. Refer to Note 12 for additional information on the geographic composition of the Firm's consumer loan portfolios. In the wholesale portfolio, credit risk concentrations are evaluated primarily by industry and monitored regularly on both an aggregate portfolio level and on an individual client or counterparty basis. The Firm's wholesale exposure is managed through loan syndications and participations, loan sales, securitizations, credit derivatives, master netting agreements, collateral and other risk-reduction techniques. Refer to Note 12 for additional information on loans.The Firm does not believe that its exposure to any particular loan product or industry segment results in a significant concentration of credit risk. Terms of loan products and collateral coverage are included in the Firm's assessment when extending credit and establishing its allowance for credit losses. Refer to Note 13 for additional information on the allowance for credit losses. The Firm's wholesale exposure is managed through loan syndications and participations, loan sales, securitizations, credit derivatives, master netting agreements, collateral and other risk-reduction techniques. Refer to Note 12 for additional information on loans. The Firm does not believe that its exposure to any particular loan product or industry segment results in a significant concentration of credit risk. Terms of loan products and collateral coverage are included in the Firm's assessment when extending credit and establishing its allowance for credit losses. Refer to Note 13 for additional information on the allowance for credit losses. 200JPMorgan Chase & Co./2025 Form 10-K 200JPMorgan Chase & Co./2025 Form 10-K 200JPMorgan Chase & Co./2025 Form 10-K 200 JPMorgan Chase & Co./2025 Form 10-K The table below presents both on-balance sheet and off-balance sheet consumer and wholesale credit exposure by the Firm's three credit portfolio segments as of December 31, 2025 and 2024. The wholesale industry of risk category is generally based on the client or counterparty's primary business activity. 20252024December 31, (in millions)Credit exposure(h)On-balance sheetOff-balance sheet(i)Credit exposure(h)On-balance sheetOff-balance sheet(i)LoansDerivativesLoansDerivativesConsumer, excluding credit card$445,845 $402,258 $ - $43,587 $437,654 $392,810 $ - $44,844 Credit card(a)1,425,563 247,797 - 1,177,766 (j)1,234,171 232,860 - 1,001,311 Total consumer(a)1,871,408 650,055 - 1,221,353 1,671,825 625,670 - 1,046,155 Wholesale(b)Real Estate224,858 174,177 477 50,204 207,050 169,506 310 37,234 Individuals and Individual Entities(c)167,700 154,674 1,079 11,947 144,145 130,317 1,259 12,569 Asset Managers152,848 73,660 14,715 64,473 135,541 58,720 15,695 61,126 Consumer & Retail133,945 49,113 2,235 82,597 129,815 46,509 1,608 81,698 Technology, Media & Telecommunications97,816 26,005 1,986 69,825 84,716 21,449 2,448 60,819 Industrials80,606 26,128 1,146 53,332 72,530 24,011 2,035 46,484 Banks & Finance Companies75,653 54,841 2,697 18,115 61,287 40,239 3,890 17,158 Healthcare72,218 21,849 807 49,562 64,224 23,243 616 40,365 Utilities39,005 6,565 2,585 29,855 35,871 6,172 2,631 27,068 Oil & Gas36,497 8,668 524 27,305 31,724 7,226 1,153 23,345 Automotive35,984 17,303 192 18,489 34,336 17,696 794 15,846 State & Municipal Govt(d)32,484 16,931 523 15,030 35,039 19,279 372 15,388 Insurance25,031 3,202 8,532 13,297 24,267 2,533 9,703 12,031 Chemicals & Plastics23,790 6,479 350 16,961 20,782 6,176 267 14,339 Transportation20,861 5,693 1,027 14,141 17,019 5,380 769 10,870 Metals & Mining17,767 4,828 1,587 11,352 15,860 4,425 564 10,871 Central Govt15,164 6,474 4,514 4,176 13,862 4,715 6,285 2,862 Securities Firms7,966 1,115 3,051 3,800 9,443 1,878 3,197 4,368 Financial Markets Infrastructure5,734 66 3,543 2,125 4,446 16 2,410 2,020 All other(e)180,171 134,596 6,207 39,368 140,873 100,906 4,961 35,006 Subtotal1,446,098 792,367 57,777 595,954 1,282,830 690,396 60,967 531,467 Loans held-for-sale and loans at fair value51,007 51,007 - - 31,922 31,922 - - Receivables from customers(f)47,336 - - - 51,929 - - - Total wholesale1,544,441 843,374 57,777 595,954 1,366,681 722,318 60,967 531,467 Total exposure(g)$3,415,849 $1,493,429 $57,777 $1,817,307 $3,038,506 $1,347,988 $60,967 $1,577,622 December 31, (in millions) Credit exposure(h) Off-balance sheet(i) Credit exposure(h) Off-balance sheet(i) --- ## Modified Risk: U.S. GSEs and government agencies **Key changes:** - Updated: "Interest in VIEs As of December 31, 2025 and 2024, the Firm did not consolidate any U.S." **Prior (2025):** Interest in VIEs As of December 31, 2024 and 2023, the Firm did not consolidate any U.S. GSE and government agency re-securitization VIEs or any Firm-sponsored private-label re-securitization VIEs. **Current (2026):** Interest in VIEs As of December 31, 2025 and 2024, the Firm did not consolidate any U.S. GSE and government agency re-securitization VIEs. As of December 31, 2025, the Firm consolidated an insignificant amount of assets and liabilities of Firm-sponsored private-label re-securitization VIEs. As of December 31, 2024, the Firm did not consolidate any Firm-sponsored private-label re-securitization VIEs. --- ## Modified Risk: Management's discussion and analysis **Key changes:** - Updated: "COMPLIANCE RISK MANAGEMENT Compliance risk, a subcategory of operational risk, is the risk of failing to comply with laws, rules, regulations or codes of conduct and standards of self-regulatory organizations." - Updated: "Conduct training is assigned to newly-hired employees after joining the Firm, and to current employees periodically thereafter." - Updated: "Conduct training is assigned to newly-hired employees after joining the Firm, and to current employees periodically thereafter." **Prior (2025):** The governance structure for the Global Cybersecurity and Technology Controls organization is designed to appropriately identify, escalate and mitigate cybersecurity risks. Cybersecurity risk management and its governance and oversight are integrated into the Firm's operational risk management framework, including through the escalation of key risk and control issues to management and the development of risk mitigation plans for heightened risk and control issues. IRM independently assesses and challenges the activities and risk management practices of the Global Cybersecurity and Technology Controls organization related to the identification, assessment, measurement and mitigation of cybersecurity risk. As needed, the Firm engages third-party assessors or auditing firms with industry-recognized expertise on cybersecurity matters to review specific aspects of the Firm's cybersecurity risk management framework, processes and controls. The governance and oversight for cybersecurity risk management includes governance forums that inform management of key areas of concern regarding the prevention, detection, mitigation and remediation of cybersecurity risks. The Cybersecurity and Technology Controls Operating Committee ("CTOC") is the principal management committee that oversees the Firm's assessment and management of cybersecurity risk, including oversight of the implementation and maintenance of appropriate controls in support of the Firm's Information Security Program. The membership of the CTOC includes senior representatives from the Global Cybersecurity and Technology Controls organization and relevant corporate functions, including IRM and Internal Audit. The CTOC escalates key operational risk and control issues, as appropriate, to the Global Technology Operating Committee ("GTOC") or its business control committee or to the appropriate LOB and Corporate Control Committees. The GTOC is responsible for the governance of the Firmwide Global Technology organization, including oversight of Firmwide technology strategies, the delivery of technology and technology operations, the effective use of information technology resources, and monitoring and resolving key operational risk and control matters arising in the Global Technology organization.As part of its oversight of management's implementation and maintenance of the Firm's risk management framework, the Firm's Board of Directors receives periodic updates from the CIO, the CISO and senior members of the CTOC concerning cybersecurity matters. These updates generally include information regarding cybersecurity and technology developments, the Firm's Information Security Program and recommended changes to that program, cybersecurity policies and practices, and ongoing initiatives to improve information security, as well as any significant cybersecurity incidents and the Firm's efforts to address those incidents. The Audit Committee and the Risk Committee assist the Board in this oversight. The Cybersecurity and Technology Controls Operating Committee ("CTOC") is the principal management committee that oversees the Firm's assessment and management of cybersecurity risk, including oversight of the implementation and maintenance of appropriate controls in support of the Firm's Information Security Program. The membership of the CTOC includes senior representatives from the Global Cybersecurity and Technology Controls organization and relevant corporate functions, including IRM and Internal Audit. The CTOC escalates key operational risk and control issues, as appropriate, to the Global Technology Operating Committee ("GTOC") or its business control committee or to the appropriate LOB and Corporate Control Committees. The GTOC is responsible for the governance of the Firmwide Global Technology organization, including oversight of Firmwide technology strategies, the delivery of technology and technology operations, the effective use of information technology resources, and monitoring and resolving key operational risk and control matters arising in the Global Technology organization. As part of its oversight of management's implementation and maintenance of the Firm's risk management framework, the Firm's Board of Directors receives periodic updates from the CIO, the CISO and senior members of the CTOC concerning cybersecurity matters. These updates generally include information regarding cybersecurity and technology developments, the Firm's Information Security Program and recommended changes to that program, cybersecurity policies and practices, and ongoing initiatives to improve information security, as well as any significant cybersecurity incidents and the Firm's efforts to address those incidents. The Audit Committee and the Risk Committee assist the Board in this oversight. 156JPMorgan Chase & Co./2024 Form 10-K 156JPMorgan Chase & Co./2024 Form 10-K 156JPMorgan Chase & Co./2024 Form 10-K 156 JPMorgan Chase & Co./2024 Form 10-K COMPLIANCE RISK MANAGEMENT COMPLIANCE RISK MANAGEMENT Compliance risk, a subcategory of operational risk, is the risk of failing to comply with laws, rules, regulations or codes of conduct and standards of self-regulatory organizations. OverviewEach of the LOBs and Corporate hold primary ownership of and accountability for managing their compliance risk. The Firm's Operational Risk and Compliance Organization ("Operational Risk and Compliance"), which is independent of the LOBs and Corporate, provides independent review, monitoring and oversight of business operations with a focus on compliance with the laws, rules, and regulations applicable to the delivery of the Firm's products and services to clients and customers.These compliance risks relate to a wide variety of laws, rules and regulations across the LOBs and Corporate, and jurisdictions, and include risks related to financial products and services, relationships and interactions with clients and customers, and employee activities. For example, compliance risks include those associated with anti-money laundering compliance, trading activities, market conduct, and complying with the laws, rules, and regulations related to the offering of products and services across jurisdictional borders. Compliance risk is also inherent in the Firm's fiduciary activities, including the failure to exercise the applicable standard of care to act in the best interest of fiduciary clients and customers or to treat fiduciary clients and customers fairly.Other functions provide oversight of significant regulatory obligations that are specific to their respective areas of responsibility.Operational Risk and Compliance implements policies and standards designed to govern, identify, measure, monitor and test, manage, and report on compliance risk.Governance and oversightOperational Risk and Compliance is led by the Firm's Global CCO and FRE for Operational Risk and Qualitative Risk Appetite.The Firm maintains oversight and coordination of its compliance risk through the CCOR Management Framework. The Firm's Global CCO and FRE for Operational Risk and Qualitative Risk Appetite also provides regular updates to the Board Risk Committee and the Audit Committee on significant compliance risk issues, as appropriate. Code of ConductThe Firm has a Code of Conduct (the "Code") that sets forth the Firm's expectation that employees will conduct themselves with integrity, at all times. The Code provides the principles that help govern employee conduct with clients, customers, suppliers, vendors, shareholders, regulators, other employees, as well as with the markets and communities in which the Firm operates. The Code requires employees to promptly report any potential or actual violation of the Code, Firm policies, or laws, rules or regulations applicable to the Firm's business. It also requires employees to report any illegal or unethical conduct, or conduct that violates the underlying principles of the Code, by any of the Firm's employees, consultants, clients, customers, suppliers, contract or temporary workers, or business partners or agents. Training is assigned to newly hired employees after joining the Firm, and to current employees periodically thereafter. Employees are required to affirm their compliance with the Code annually. Employees can report any potential or actual violations of the Code through the Firm's Conduct Hotline (the "Hotline") by phone, mobile device or the internet. The Hotline is anonymous, where permitted by law, is available at all times globally, has translation services, and is administered by an outside service provider. The Code prohibits retaliation against anyone who raises an issue or concern in good faith or assists with an inquiry or investigation. Periodically, the Audit Committee receives reports on the Code of Conduct program. Compliance risk, a subcategory of operational risk, is the risk of failing to comply with laws, rules, regulations or codes of conduct and standards of self-regulatory organizations. OverviewEach of the LOBs and Corporate hold primary ownership of and accountability for managing their compliance risk. The Firm's Operational Risk and Compliance Organization ("Operational Risk and Compliance"), which is independent of the LOBs and Corporate, provides independent review, monitoring and oversight of business operations with a focus on compliance with the laws, rules, and regulations applicable to the delivery of the Firm's products and services to clients and customers.These compliance risks relate to a wide variety of laws, rules and regulations across the LOBs and Corporate, and jurisdictions, and include risks related to financial products and services, relationships and interactions with clients and customers, and employee activities. For example, compliance risks include those associated with anti-money laundering compliance, trading activities, market conduct, and complying with the laws, rules, and regulations related to the offering of products and services across jurisdictional borders. Compliance risk is also inherent in the Firm's fiduciary activities, including the failure to exercise the applicable standard of care to act in the best interest of fiduciary clients and customers or to treat fiduciary clients and customers fairly.Other functions provide oversight of significant regulatory obligations that are specific to their respective areas of responsibility.Operational Risk and Compliance implements policies and standards designed to govern, identify, measure, monitor and test, manage, and report on compliance risk. Compliance risk, a subcategory of operational risk, is the risk of failing to comply with laws, rules, regulations or codes of conduct and standards of self-regulatory organizations. Overview Each of the LOBs and Corporate hold primary ownership of and accountability for managing their compliance risk. The Firm's Operational Risk and Compliance Organization ("Operational Risk and Compliance"), which is independent of the LOBs and Corporate, provides independent review, monitoring and oversight of business operations with a focus on compliance with the laws, rules, and regulations applicable to the delivery of the Firm's products and services to clients and customers. These compliance risks relate to a wide variety of laws, rules and regulations across the LOBs and Corporate, and jurisdictions, and include risks related to financial products and services, relationships and interactions with clients and customers, and employee activities. For example, compliance risks include those associated with anti-money laundering compliance, trading activities, market conduct, and complying with the laws, rules, and regulations related to the offering of products and services across jurisdictional borders. Compliance risk is also inherent in the Firm's fiduciary activities, including the failure to exercise the applicable standard of care to act in the best interest of fiduciary clients and customers or to treat fiduciary clients and customers fairly. Other functions provide oversight of significant regulatory obligations that are specific to their respective areas of responsibility. Operational Risk and Compliance implements policies and standards designed to govern, identify, measure, monitor and test, manage, and report on compliance risk. Governance and oversightOperational Risk and Compliance is led by the Firm's Global CCO and FRE for Operational Risk and Qualitative Risk Appetite.The Firm maintains oversight and coordination of its compliance risk through the CCOR Management Framework. The Firm's Global CCO and FRE for Operational Risk and Qualitative Risk Appetite also provides regular updates to the Board Risk Committee and the Audit Committee on significant compliance risk issues, as appropriate. Code of ConductThe Firm has a Code of Conduct (the "Code") that sets forth the Firm's expectation that employees will conduct themselves with integrity, at all times. The Code provides the principles that help govern employee conduct with clients, customers, suppliers, vendors, shareholders, regulators, other employees, as well as with the markets and communities in which the Firm operates. The Code requires employees to promptly report any potential or actual violation of the Code, Firm policies, or laws, rules or regulations applicable to the Firm's business. It also requires employees to report any illegal or unethical conduct, or conduct that violates the underlying principles of the Code, by any of the Firm's employees, consultants, clients, customers, suppliers, contract or temporary workers, or business partners or agents. Training is assigned to newly hired employees after joining the Firm, and to current employees periodically thereafter. Employees are required to affirm their compliance with the Code annually. Employees can report any potential or actual violations of the Code through the Firm's Conduct Hotline (the "Hotline") by phone, mobile device or the internet. The Hotline is anonymous, where permitted by law, is available at all times globally, has translation services, and is administered by an outside service provider. The Code prohibits retaliation against anyone who raises an issue or concern in good faith or assists with an inquiry or investigation. Periodically, the Audit Committee receives reports on the Code of Conduct program. **Current (2026):** COMPLIANCE RISK MANAGEMENT Compliance risk, a subcategory of operational risk, is the risk of failing to comply with laws, rules, regulations or codes of conduct and standards of self-regulatory organizations. OverviewEach of the LOBs and Corporate hold primary ownership of and accountability for managing their compliance risk. The Firm's Operational Risk and Compliance Organization ("Operational Risk and Compliance"), which is independent of the LOBs and Corporate, provides independent review, monitoring and oversight of business operations with a focus on compliance with the laws, rules, and regulations applicable to the delivery of the Firm's products and services to clients and customers.These compliance risks relate to a wide variety of laws, rules and regulations across the LOBs and Corporate, and jurisdictions, and include risks related to financial products and services, relationships and interactions with clients and customers, and employee activities. For example, compliance risks include those associated with anti-money laundering compliance, trading activities, market conduct, and complying with the laws, rules, and regulations related to the offering of products and services across jurisdictional borders. Compliance risk is also inherent in the Firm's fiduciary activities, including the failure to exercise the applicable standard of care to act in the best interest of fiduciary clients and customers or to treat fiduciary clients and customers fairly.Other functions provide oversight of significant regulatory obligations that are specific to their respective areas of responsibility.Operational Risk and Compliance implements policies and standards designed to govern, identify, measure, monitor and test, manage, and report on compliance risk.Governance and oversightOperational Risk and Compliance is led by the Firm's Global CCO and FRE for Operational Risk and Qualitative Risk Appetite.The Firm maintains oversight and coordination of its compliance risk through the CCOR Management Framework. The Firm's Global CCO and FRE for Operational Risk and Qualitative Risk Appetite also provides regular updates to the Board Risk Committee and the Audit Committee on significant compliance risk issues, as appropriate. Code of ConductThe Firm has a Code of Conduct (the "Code") that sets forth the Firm's expectation that employees will conduct themselves with integrity, at all times. The Code provides the principles that help govern employee conduct with clients, customers, suppliers, vendors, shareholders, regulators, other employees, as well as with the markets and communities in which the Firm operates. The Code requires employees to promptly report any potential or actual violation of the Code, Firm policies, or laws, rules or regulations applicable to the Firm's business. It also requires employees to report any illegal or unethical conduct, or conduct that violates the underlying principles of the Code, by any of the Firm's employees, consultants, clients, customers, suppliers, contract or temporary workers, or business partners or agents. Conduct training is assigned to newly-hired employees after joining the Firm, and to current employees periodically thereafter. Employees are required to affirm their compliance with the Code annually. Employees can report any potential or actual violations of the Code through the Firm's Conduct Hotline (the "Hotline") by phone, mobile device or the internet. The Hotline is anonymous, where permitted by law, is available at all times globally, has translation services, and is administered by an outside service provider. The Code prohibits retaliation against anyone who raises an issue or concern in good faith or assists with an inquiry or investigation. Periodically, the Audit Committee receives reports on the Code of Conduct program. Compliance risk, a subcategory of operational risk, is the risk of failing to comply with laws, rules, regulations or codes of conduct and standards of self-regulatory organizations. OverviewEach of the LOBs and Corporate hold primary ownership of and accountability for managing their compliance risk. The Firm's Operational Risk and Compliance Organization ("Operational Risk and Compliance"), which is independent of the LOBs and Corporate, provides independent review, monitoring and oversight of business operations with a focus on compliance with the laws, rules, and regulations applicable to the delivery of the Firm's products and services to clients and customers.These compliance risks relate to a wide variety of laws, rules and regulations across the LOBs and Corporate, and jurisdictions, and include risks related to financial products and services, relationships and interactions with clients and customers, and employee activities. For example, compliance risks include those associated with anti-money laundering compliance, trading activities, market conduct, and complying with the laws, rules, and regulations related to the offering of products and services across jurisdictional borders. Compliance risk is also inherent in the Firm's fiduciary activities, including the failure to exercise the applicable standard of care to act in the best interest of fiduciary clients and customers or to treat fiduciary clients and customers fairly.Other functions provide oversight of significant regulatory obligations that are specific to their respective areas of responsibility.Operational Risk and Compliance implements policies and standards designed to govern, identify, measure, monitor and test, manage, and report on compliance risk. Compliance risk, a subcategory of operational risk, is the risk of failing to comply with laws, rules, regulations or codes of conduct and standards of self-regulatory organizations. Overview Each of the LOBs and Corporate hold primary ownership of and accountability for managing their compliance risk. The Firm's Operational Risk and Compliance Organization ("Operational Risk and Compliance"), which is independent of the LOBs and Corporate, provides independent review, monitoring and oversight of business operations with a focus on compliance with the laws, rules, and regulations applicable to the delivery of the Firm's products and services to clients and customers. These compliance risks relate to a wide variety of laws, rules and regulations across the LOBs and Corporate, and jurisdictions, and include risks related to financial products and services, relationships and interactions with clients and customers, and employee activities. For example, compliance risks include those associated with anti-money laundering compliance, trading activities, market conduct, and complying with the laws, rules, and regulations related to the offering of products and services across jurisdictional borders. Compliance risk is also inherent in the Firm's fiduciary activities, including the failure to exercise the applicable standard of care to act in the best interest of fiduciary clients and customers or to treat fiduciary clients and customers fairly. Other functions provide oversight of significant regulatory obligations that are specific to their respective areas of responsibility. Operational Risk and Compliance implements policies and standards designed to govern, identify, measure, monitor and test, manage, and report on compliance risk. Governance and oversightOperational Risk and Compliance is led by the Firm's Global CCO and FRE for Operational Risk and Qualitative Risk Appetite.The Firm maintains oversight and coordination of its compliance risk through the CCOR Management Framework. The Firm's Global CCO and FRE for Operational Risk and Qualitative Risk Appetite also provides regular updates to the Board Risk Committee and the Audit Committee on significant compliance risk issues, as appropriate. Code of ConductThe Firm has a Code of Conduct (the "Code") that sets forth the Firm's expectation that employees will conduct themselves with integrity, at all times. The Code provides the principles that help govern employee conduct with clients, customers, suppliers, vendors, shareholders, regulators, other employees, as well as with the markets and communities in which the Firm operates. The Code requires employees to promptly report any potential or actual violation of the Code, Firm policies, or laws, rules or regulations applicable to the Firm's business. It also requires employees to report any illegal or unethical conduct, or conduct that violates the underlying principles of the Code, by any of the Firm's employees, consultants, clients, customers, suppliers, contract or temporary workers, or business partners or agents. Conduct training is assigned to newly-hired employees after joining the Firm, and to current employees periodically thereafter. Employees are required to affirm their compliance with the Code annually. Employees can report any potential or actual violations of the Code through the Firm's Conduct Hotline (the "Hotline") by phone, mobile device or the internet. The Hotline is anonymous, where permitted by law, is available at all times globally, has translation services, and is administered by an outside service provider. The Code prohibits retaliation against anyone who raises an issue or concern in good faith or assists with an inquiry or investigation. Periodically, the Audit Committee receives reports on the Code of Conduct program. --- ## Modified Risk: Management's discussion and analysis **Key changes:** - Updated: "112JPMorgan Chase & Co./2025 Form 10-K 112JPMorgan Chase & Co./2025 Form 10-K 112JPMorgan Chase & Co./2025 Form 10-K 112 JPMorgan Chase & Co./2025 Form 10-K The following tables present consumer credit-related information with respect to the scored credit portfolio held in CCB, AWM, CIB and Corporate." - Updated: "(i)Includes estimated total credit exposure related to the Apple Card transaction at the time that the transaction is expected to close of approximately $104 billion, including approximately $23 billion of estimated drawn loans." - Updated: "At December 31, 2025 and 2024, mortgage loans 90 or more days past due and insured by U.S." - Updated: "(k)Average consumer loans held-for-sale and loans at fair value were $23.7 billion and $17.2 billion for the years ended December 31, 2025 and 2024, respectively." - Updated: "JPMorgan Chase & Co./2025 Form 10-K113 JPMorgan Chase & Co./2025 Form 10-K113 JPMorgan Chase & Co./2025 Form 10-K113 JPMorgan Chase & Co./2025 Form 10-K 113" **Prior (2025):** CONSUMER CREDIT PORTFOLIO The Firm's retained consumer portfolio consists primarily of loans and lending-related commitments for residential real estate, credit card, scored auto and business banking. The consumer credit portfolio also includes loans at fair value, predominantly in residential real estate. The Firm's focus is on serving primarily the prime segment of the consumer credit market. Originated mortgage loans are retained in the residential real estate portfolio, securitized or sold to U.S. government agencies and U.S. government-sponsored enterprises; other types of consumer loans are typically retained on the balance sheet. Refer to Note 12 for further information on the consumer loan portfolio. Refer to Note 28 for further information on lending-related commitments. The Firm's retained consumer portfolio consists primarily of loans and lending-related commitments for residential real estate, credit card, scored auto and business banking. The consumer credit portfolio also includes loans at fair value, predominantly in residential real estate. The Firm's focus is on serving primarily the prime segment of the consumer credit market. Originated mortgage loans are retained in the residential real estate portfolio, securitized or sold to U.S. government agencies and U.S. government-sponsored enterprises; other types of consumer loans are typically retained on the balance sheet. Refer to Note 12 for further information on the consumer loan portfolio. Refer to Note 28 for further information on lending-related commitments. The Firm's retained consumer portfolio consists primarily of loans and lending-related commitments for residential real estate, credit card, scored auto and business banking. The consumer credit portfolio also includes loans at fair value, predominantly in residential real estate. The Firm's focus is on serving primarily the prime segment of the consumer credit market. Originated mortgage loans are retained in the residential real estate portfolio, securitized or sold to U.S. government agencies and U.S. government-sponsored enterprises; other types of consumer loans are typically retained on the balance sheet. Refer to Note 12 for further information on the consumer loan portfolio. Refer to Note 28 for further information on lending-related commitments. 120JPMorgan Chase & Co./2024 Form 10-K 120JPMorgan Chase & Co./2024 Form 10-K 120JPMorgan Chase & Co./2024 Form 10-K 120 JPMorgan Chase & Co./2024 Form 10-K The following tables present consumer credit-related information with respect to the scored credit portfolio held in CCB, AWM, CIB and Corporate. Consumer credit portfolioDecember 31,(in millions)Credit exposureNonaccrual loans(i)2024202320242023Consumer, excluding credit cardResidential real estate(a)$309,513 $326,409 $2,984 $3,466 Auto and other(b)(c)66,821 70,866 249 177 Total loans - retained376,334 397,275 3,233 3,643 Loans held-for-sale945 487 155 95 Loans at fair value(d)15,531 12,331 538 465 Total consumer, excluding credit card loans392,810 410,093 3,926 4,203 Lending-related commitments(e)44,844 45,403 Total consumer exposure, excluding credit card437,654 455,496 Credit cardLoans retained(f)232,860 211,123 NANATotal credit card loans232,860 211,123 NANALending-related commitments(e)(g)1,001,311 915,658 Total credit card exposure1,234,171 1,126,781 Total consumer credit portfolio$1,671,825 $1,582,277 $3,926 $4,203 Credit-related notes used in credit portfolio management activities(h)$(479)$(790) Nonaccrual loans(i) Residential real estate(a) Auto and other(b)(c) Loans at fair value(d) Lending-related commitments(e) Loans retained(f) Lending-related commitments(e)(g) Credit-related notes used in credit portfolio management activities(h) Year ended December 31,(in millions, except ratios)Net charge-offs/(recoveries)Average loans - retainedNet charge-off/(recovery) rate(j)202420232024202320242023Consumer, excluding credit cardResidential real estate$(101)$(52)$316,042 $296,515 (0.03)%(0.02)%Auto and other775 684 67,959 67,546 1.14 1.01 Total consumer, excluding credit card - retained674 632 384,001 364,061 0.18 0.17 Credit card - retained7,142 4,698 214,033 191,412 3.34 2.45 Total consumer - retained$7,816 $5,330 $598,034 $555,473 1.31 %0.96 % Net charge-off/(recovery) rate(j) (a)Includes scored mortgage and home equity loans held in CCB and AWM. (b)At December 31, 2024 and 2023, excluded operating lease assets of $12.8 billion and $10.4 billion, respectively. These operating lease assets are included in other assets on the Firm's Consolidated balance sheets. Refer to Note 18 for further information. (c)Includes scored auto and business banking loans, and overdrafts. (d)Includes scored mortgage loans held in CCB and CIB, and other consumer unsecured loans in CIB. (e)Credit card, home equity and certain business banking lending-related commitments represent the total available lines of credit for these products. The Firm has not experienced, and does not anticipate, that all available lines of credit would be used at the same time. Refer to Note 28 for further information. (f)Includes billed interest and fees. (g)Also includes commercial card lending-related commitments primarily in CIB. (h)Represents the notional amount of protection obtained through the issuance of credit-related notes that reference certain pools of residential real estate and auto loans in the retained consumer portfolio. (i)Excludes mortgage loans past due and insured by U.S. government agencies, which are primarily 90 or more days past due. These loans have been excluded based upon the government guarantee. At December 31, 2024 and 2023, mortgage loans 90 or more days past due and insured by U.S. government agencies were $121 million and $182 million, respectively. In addition, the Firm's policy is generally to exempt credit card loans from being placed on nonaccrual status, as permitted by regulatory guidance. (j)Average consumer loans held-for-sale and loans at fair value were $17.2 billion and $12.9 billion for the years ended December 31, 2024 and 2023, respectively. These amounts were excluded when calculating net charge-off/(recovery) rates. JPMorgan Chase & Co./2024 Form 10-K121 JPMorgan Chase & Co./2024 Form 10-K121 JPMorgan Chase & Co./2024 Form 10-K121 JPMorgan Chase & Co./2024 Form 10-K 121 **Current (2026):** CONSUMER CREDIT PORTFOLIO The Firm's retained consumer portfolio consists primarily of loans and lending-related commitments for residential real estate, credit card, scored auto and business banking. The consumer credit portfolio also includes loans at fair value, predominantly in residential real estate. The Firm's focus is on serving primarily the prime segment of the consumer credit market. Originated mortgage loans are retained in the residential real estate portfolio, securitized or sold to U.S. government agencies and U.S. government-sponsored enterprises; other types of consumer loans are typically retained on the balance sheet. Refer to Note 12 for further information on the consumer loan portfolio. Refer to Note 28 for further information on lending-related commitments. The Firm's retained consumer portfolio consists primarily of loans and lending-related commitments for residential real estate, credit card, scored auto and business banking. The consumer credit portfolio also includes loans at fair value, predominantly in residential real estate. The Firm's focus is on serving primarily the prime segment of the consumer credit market. Originated mortgage loans are retained in the residential real estate portfolio, securitized or sold to U.S. government agencies and U.S. government-sponsored enterprises; other types of consumer loans are typically retained on the balance sheet. Refer to Note 12 for further information on the consumer loan portfolio. Refer to Note 28 for further information on lending-related commitments. The Firm's retained consumer portfolio consists primarily of loans and lending-related commitments for residential real estate, credit card, scored auto and business banking. The consumer credit portfolio also includes loans at fair value, predominantly in residential real estate. The Firm's focus is on serving primarily the prime segment of the consumer credit market. Originated mortgage loans are retained in the residential real estate portfolio, securitized or sold to U.S. government agencies and U.S. government-sponsored enterprises; other types of consumer loans are typically retained on the balance sheet. Refer to Note 12 for further information on the consumer loan portfolio. Refer to Note 28 for further information on lending-related commitments. 112JPMorgan Chase & Co./2025 Form 10-K 112JPMorgan Chase & Co./2025 Form 10-K 112JPMorgan Chase & Co./2025 Form 10-K 112 JPMorgan Chase & Co./2025 Form 10-K The following tables present consumer credit-related information with respect to the scored credit portfolio held in CCB, AWM, CIB and Corporate. Consumer credit portfolioDecember 31,(in millions)Credit exposureNonaccrual loans(j)2025202420252024Consumer, excluding credit cardResidential real estate(a)$303,531 $309,513 $3,632 $2,984 Auto and other(b)(c)65,210 66,821 243 249 Total loans - retained368,741 376,334 3,875 3,233 Loans held-for-sale334 945 59 155 Loans at fair value(d)33,183 15,531 739 538 Total consumer, excluding credit card loans402,258 392,810 4,673 3,926 Lending-related commitments(e)43,587 44,844 Total consumer exposure, excluding credit card445,845 437,654 Credit cardLoans retained(f)247,797 232,860 NANATotal credit card loans247,797 232,860 NANALending-related commitments(e)(g)1,177,766 (i)1,001,311 Total credit card exposure1,425,563 1,234,171 Total consumer credit portfolio$1,871,408 $1,671,825 $4,673 $3,926 Credit-related notes used in credit portfolio management activities(h)$(485)$(479) Nonaccrual loans(j) Residential real estate(a) Auto and other(b)(c) Loans at fair value(d) Lending-related commitments(e) Loans retained(f) Lending-related commitments(e)(g) (i) Credit-related notes used in credit portfolio management activities(h) Year ended December 31,(in millions, except ratios)Net charge-offs/(recoveries)Average loans - retainedNet charge-off/(recovery) rate(k)202520242025202420252024Consumer, excluding credit cardResidential real estate$(115)$(101)$305,362 $316,042 (0.04)%(0.03)%Auto and other694 775 65,876 67,959 1.05 1.14 Total consumer, excluding credit card - retained579 674 371,238 384,001 0.16 0.18 Credit card - retained7,672 7,142 231,644 214,033 3.31 3.34 Total consumer - retained$8,251 $7,816 $602,882 $598,034 1.37 %1.31 % Net charge-off/(recovery) rate(k) (a)Includes scored mortgage and home equity loans held in CCB and AWM. (b)At December 31, 2025 and 2024, excluded operating lease assets of $20.0 billion and $12.8 billion, respectively. These operating lease assets are included in other assets on the Firm's Consolidated balance sheets. Refer to Note 18 for further information. (c)Includes scored auto and business banking loans, and overdrafts. (d)Includes scored mortgage loans held in CCB and CIB, and other consumer unsecured loans in CIB. (e)Credit card, home equity and certain business banking lending-related commitments represent the total available lines of credit for these products. The Firm has not experienced, and does not anticipate, that all available lines of credit would be used at the same time. Refer to Note 28 for further information. (f)Includes billed interest and fees. (g)Also includes commercial card lending-related commitments primarily in CIB. (h)Represents the notional amount of protection obtained through the issuance of credit-related notes that reference certain pools of residential real estate and auto loans in the retained consumer portfolio. (i)Includes estimated total credit exposure related to the Apple Card transaction at the time that the transaction is expected to close of approximately $104 billion, including approximately $23 billion of estimated drawn loans. (j)Excludes mortgage loans past due and insured by U.S. government agencies, which are primarily 90 or more days past due. These loans have been excluded based upon the government guarantee. At December 31, 2025 and 2024, mortgage loans 90 or more days past due and insured by U.S. government agencies were $198 million and $121 million, respectively. In addition, the Firm's policy is generally to exempt credit card loans from being placed on nonaccrual status, as permitted by regulatory guidance. (k)Average consumer loans held-for-sale and loans at fair value were $23.7 billion and $17.2 billion for the years ended December 31, 2025 and 2024, respectively. These amounts were excluded when calculating net charge-off/(recovery) rates. JPMorgan Chase & Co./2025 Form 10-K113 JPMorgan Chase & Co./2025 Form 10-K113 JPMorgan Chase & Co./2025 Form 10-K113 JPMorgan Chase & Co./2025 Form 10-K 113 --- ## Modified Risk: Loans held-for-investment **Key changes:** - Updated: "Originated or purchased loans held-for-investment, including PCD, are recorded at amortized cost, reflecting the principal amount outstanding, net of the following: unamortized deferred loan fees, costs, premiums or discounts; charge-offs; collection of cash; and foreign exchange." - Updated: "Wholesale loans are charged off when they are deemed to be uncollectible." - Removed: "Changes in fair value are recognized in noninterest revenue." - Updated: "Because these loans are recognized at fair value, the Firm's allowance for loan losses and charge-off stages of delinquency in accordance with standards established by the FFIEC." - Updated: "Wholesale loans are charged off when they are deemed to be uncollectible." **Prior (2025):** accounts placed on a fixed payment plan, are charged off no later than 120 days past due. Certain consumer loans are charged off or charged down to their net realizable value earlier than the FFIEC charge-off standards in the following circumstances: •Loans modified to borrowers experiencing financial difficulty that are determined to be collateral-dependent. •Loans to borrowers who have experienced an event that suggests a loss is either known or highly certain are subject to accelerated charge-off standards (e.g., residential real estate and auto loans are charged off or charged down within 60 days of receiving notification of a bankruptcy filing). •Auto loans upon repossession of the automobile. Other than in certain limited circumstances, the Firm typically does not recognize charge-offs on the government-guaranteed portion of loans. Wholesale loans are charged off when it is highly certain that a loss has been realized. The determination of whether to recognize a charge-off includes many factors, including the prioritization of the Firm's claim in bankruptcy, expectations of the workout/restructuring of the loan and valuation of the borrower's equity or the loan collateral. When a loan is charged down to the lower of its amortized cost or the estimated net realizable value of the underlying collateral, the determination of the fair value of the collateral depends on the type of collateral (e.g., securities, real estate). In cases where the collateral is in the form of liquid securities, the fair value is based on quoted market prices or broker quotes. For illiquid securities or other financial assets, the fair value of the collateral is generally estimated using a discounted cash flow model. For residential real estate loans, collateral values are based upon external valuation sources. When it becomes likely that a borrower is either unable or unwilling to pay, the Firm utilizes a broker's price opinion, appraisal and/or an automated valuation model of the home based on an exterior-only valuation ("exterior opinions"), which is then updated at least every 12 months, or more frequently depending on various market factors. As soon as practicable after the Firm receives the property in satisfaction of a debt (e.g., by taking legal title or physical possession), the Firm generally obtains an appraisal based on an inspection that includes the interior of the home ("interior appraisals"). Exterior opinions and interior appraisals are discounted based upon the Firm's experience with actual liquidation values as compared with the estimated values provided by exterior opinions and interior appraisals, considering state-specific factors. For commercial real estate loans, collateral values are generally based on appraisals from internal and external valuation sources. Collateral values are typically updated every six to twelve months, either by obtaining a new appraisal or by performing an internal analysis, in accordance with the Firm's policies. The Firm also considers both borrower- and market-specific factors, which may result in obtaining appraisal updates or broker price opinions at more frequent intervals.Loans held-for-sale Loans held-for-sale are measured at the lower of cost or fair value, with valuation changes recorded in noninterest revenue. For consumer loans, the valuation is performed on a portfolio basis. For wholesale loans, the valuation is performed on an individual loan basis. Interest income on loans held-for-sale is accrued and recognized based on the contractual rate of interest. Loan origination fees or costs and purchase price discounts or premiums are deferred in a contra loan account until the related loan is sold. The deferred fees or costs and discounts or premiums are an adjustment to the basis of the loan and therefore are included in the periodic determination of the lower of cost or fair value adjustments and/or the gain or loss recognized at the time of sale. Because these loans are recognized at the lower of cost or fair value, the Firm's allowance for loan losses and charge-off policies do not apply to these loans. However, loans held-for-sale are subject to the Firm's nonaccrual policies. Loans at fair value Loans for which the fair value option has been elected are measured at fair value, with changes in fair value recorded in noninterest revenue. Interest income on these loans is accrued and recognized based on the contractual rate of interest. Changes in fair value are recognized in noninterest revenue. Loan origination fees are recognized upfront in noninterest revenue. Loan origination costs are recognized in the associated expense category as incurred. Because these loans are recognized at fair value, the Firm's allowance for loan losses and charge-off policies do not apply to these loans. However, loans at fair value are subject to the Firm's nonaccrual policies. Refer to Note 3 for further information on the Firm's elections of fair value accounting under the fair value option. Refer to Note 2 and Note 3 for further information on loans carried at fair value and classified as trading assets. accounts placed on a fixed payment plan, are charged off no later than 120 days past due. Certain consumer loans are charged off or charged down to their net realizable value earlier than the FFIEC charge-off standards in the following circumstances: •Loans modified to borrowers experiencing financial difficulty that are determined to be collateral-dependent. •Loans to borrowers who have experienced an event that suggests a loss is either known or highly certain are subject to accelerated charge-off standards (e.g., residential real estate and auto loans are charged off or charged down within 60 days of receiving notification of a bankruptcy filing). •Auto loans upon repossession of the automobile. Other than in certain limited circumstances, the Firm typically does not recognize charge-offs on the government-guaranteed portion of loans. Wholesale loans are charged off when it is highly certain that a loss has been realized. The determination of whether to recognize a charge-off includes many factors, including the prioritization of the Firm's claim in bankruptcy, expectations of the workout/restructuring of the loan and valuation of the borrower's equity or the loan collateral. When a loan is charged down to the lower of its amortized cost or the estimated net realizable value of the underlying collateral, the determination of the fair value of the collateral depends on the type of collateral (e.g., securities, real estate). In cases where the collateral is in the form of liquid securities, the fair value is based on quoted market prices or broker quotes. For illiquid securities or other financial assets, the fair value of the collateral is generally estimated using a discounted cash flow model. For residential real estate loans, collateral values are based upon external valuation sources. When it becomes likely that a borrower is either unable or unwilling to pay, the Firm utilizes a broker's price opinion, appraisal and/or an automated valuation model of the home based on an exterior-only valuation ("exterior opinions"), which is then updated at least every 12 months, or more frequently depending on various market factors. As soon as practicable after the Firm receives the property in satisfaction of a debt (e.g., by taking legal title or physical possession), the Firm generally obtains an appraisal based on an inspection that includes the interior of the home ("interior appraisals"). Exterior opinions and interior appraisals are discounted based upon the Firm's experience with actual liquidation values as compared with the estimated values provided by exterior opinions and interior appraisals, considering state-specific factors. accounts placed on a fixed payment plan, are charged off no later than 120 days past due. Certain consumer loans are charged off or charged down to their net realizable value earlier than the FFIEC charge-off standards in the following circumstances: •Loans modified to borrowers experiencing financial difficulty that are determined to be collateral-dependent. •Loans to borrowers who have experienced an event that suggests a loss is either known or highly certain are subject to accelerated charge-off standards (e.g., residential real estate and auto loans are charged off or charged down within 60 days of receiving notification of a bankruptcy filing). •Auto loans upon repossession of the automobile. Other than in certain limited circumstances, the Firm typically does not recognize charge-offs on the government-guaranteed portion of loans. Wholesale loans are charged off when it is highly certain that a loss has been realized. The determination of whether to recognize a charge-off includes many factors, including the prioritization of the Firm's claim in bankruptcy, expectations of the workout/restructuring of the loan and valuation of the borrower's equity or the loan collateral. When a loan is charged down to the lower of its amortized cost or the estimated net realizable value of the underlying collateral, the determination of the fair value of the collateral depends on the type of collateral (e.g., securities, real estate). In cases where the collateral is in the form of liquid securities, the fair value is based on quoted market prices or broker quotes. For illiquid securities or other financial assets, the fair value of the collateral is generally estimated using a discounted cash flow model. For residential real estate loans, collateral values are based upon external valuation sources. When it becomes likely that a borrower is either unable or unwilling to pay, the Firm utilizes a broker's price opinion, appraisal and/or an automated valuation model of the home based on an exterior-only valuation ("exterior opinions"), which is then updated at least every 12 months, or more frequently depending on various market factors. As soon as practicable after the Firm receives the property in satisfaction of a debt (e.g., by taking legal title or physical possession), the Firm generally obtains an appraisal based on an inspection that includes the interior of the home ("interior appraisals"). Exterior opinions and interior appraisals are discounted based upon the Firm's experience with actual liquidation values as compared with the estimated values provided by exterior opinions and interior appraisals, considering state-specific factors. For commercial real estate loans, collateral values are generally based on appraisals from internal and external valuation sources. Collateral values are typically updated every six to twelve months, either by obtaining a new appraisal or by performing an internal analysis, in accordance with the Firm's policies. The Firm also considers both borrower- and market-specific factors, which may result in obtaining appraisal updates or broker price opinions at more frequent intervals.Loans held-for-sale Loans held-for-sale are measured at the lower of cost or fair value, with valuation changes recorded in noninterest revenue. For consumer loans, the valuation is performed on a portfolio basis. For wholesale loans, the valuation is performed on an individual loan basis. Interest income on loans held-for-sale is accrued and recognized based on the contractual rate of interest. Loan origination fees or costs and purchase price discounts or premiums are deferred in a contra loan account until the related loan is sold. The deferred fees or costs and discounts or premiums are an adjustment to the basis of the loan and therefore are included in the periodic determination of the lower of cost or fair value adjustments and/or the gain or loss recognized at the time of sale. Because these loans are recognized at the lower of cost or fair value, the Firm's allowance for loan losses and charge-off policies do not apply to these loans. However, loans held-for-sale are subject to the Firm's nonaccrual policies. Loans at fair value Loans for which the fair value option has been elected are measured at fair value, with changes in fair value recorded in noninterest revenue. Interest income on these loans is accrued and recognized based on the contractual rate of interest. Changes in fair value are recognized in noninterest revenue. Loan origination fees are recognized upfront in noninterest revenue. Loan origination costs are recognized in the associated expense category as incurred. Because these loans are recognized at fair value, the Firm's allowance for loan losses and charge-off policies do not apply to these loans. However, loans at fair value are subject to the Firm's nonaccrual policies. Refer to Note 3 for further information on the Firm's elections of fair value accounting under the fair value option. Refer to Note 2 and Note 3 for further information on loans carried at fair value and classified as trading assets. For commercial real estate loans, collateral values are generally based on appraisals from internal and external valuation sources. Collateral values are typically updated every six to twelve months, either by obtaining a new appraisal or by performing an internal analysis, in accordance with the Firm's policies. The Firm also considers both borrower- and market-specific factors, which may result in obtaining appraisal updates or broker price opinions at more frequent intervals. six **Current (2026):** Originated or purchased loans held-for-investment, including PCD, are recorded at amortized cost, reflecting the principal amount outstanding, net of the following: unamortized deferred loan fees, costs, premiums or discounts; charge-offs; collection of cash; and foreign exchange. Credit card loans also include billed finance charges and fees. Interest income Interest income on performing loans held-for-investment is accrued and recognized as interest income at the contractual rate of interest. Purchase price discounts or premiums, as well as net deferred loan fees or costs, are recognized in interest income over the contractual life of the loan as an adjustment of yield. The Firm classifies accrued interest on loans, including accrued but unbilled interest on credit card loans, in accrued interest and accounts receivable on the Consolidated balance sheets. For credit card loans, accrued interest once billed is then recognized in the loan balances, with the related allowance recorded in the allowance for credit losses. Changes in the allowance for credit losses on accrued interest on credit card loans are recognized in the provision for credit losses and charge-offs are recognized by reversing interest income. For other loans, the Firm generally does not recognize an allowance for credit losses on accrued interest receivables, consistent with its policy to write them off no later than 90 days past due by reversing interest income. Nonaccrual loans Nonaccrual loans are those on which the accrual of interest has been suspended. Loans (other than credit card loans and certain consumer loans insured by U.S. government agencies) are placed on nonaccrual status and considered nonperforming when full payment of principal and interest is not expected, regardless of delinquency status, or when principal and interest has been in default for a period of 90 days or more, unless the loan is both well-secured and in the process of collection. A loan is determined to be past due when the minimum payment is not received from the borrower by the contractually specified due date or for certain loans (e.g., residential real estate loans), when a monthly payment is due and unpaid for 30 days or more. Wholesale loans may be placed on nonaccrual status prior to becoming 90 days past due, as delinquency is generally a lagging indicator of credit quality. The Firm carefully monitors wholesale borrower liquidity, cash flows, enterprise/asset values, access to capital, and other relevant factors to make judgments about the borrower's ability to make all contractual payments. Finally, collateral-dependent loans are typically maintained on nonaccrual status. On the date a loan is placed on nonaccrual status, all interest accrued but not collected is reversed against interest income. In addition, the amortization of deferred amounts is suspended. Interest income on nonaccrual loans may be recognized as cash interest payments are received (i.e., on a cash basis) if the recorded loan balance is deemed fully collectible; however, if there is doubt regarding the ultimate collectibility of the recorded loan balance, all interest cash receipts are applied to reduce the carrying value of the loan (the cost recovery method). For consumer loans, application of this policy typically results in the Firm recognizing interest income on nonaccrual consumer loans on a cash basis.A loan may be returned to accrual status when repayment is reasonably assured and there has been demonstrated performance under the terms of the loan or, if applicable, the terms of the restructured loan. As permitted by regulatory guidance, credit card loans are generally exempt from being placed on nonaccrual status; accordingly, interest and fees related to credit card loans continue to accrue until the loan is charged off or paid in full. Allowance for loan losses The allowance for loan losses represents the estimated expected credit losses in the held-for-investment loan portfolio at the balance sheet date and is recognized on the balance sheet as a contra asset, which brings the amortized cost to the net carrying value. Changes in the allowance for loan losses resulting from lending-related activity, macroeconomic variables, changes in credit and other inputs are recorded in the provision for credit losses on the Firm's Consolidated statements of income. Refer to Note 13 for further information on the Firm's accounting policies for the allowance for loan losses. Charge-offs Consumer loans are generally charged off or charged down to the lower of the amortized cost or the net realizable value of the underlying collateral (i.e., fair value less estimated costs to sell), with an offset to the allowance for loan losses, upon reaching specified the borrower by the contractually specified due date or for certain loans (e.g., residential real estate loans), when a monthly payment is due and unpaid for 30 days or more. Wholesale loans may be placed on nonaccrual status prior to becoming 90 days past due, as delinquency is generally a lagging indicator of credit quality. The Firm carefully monitors wholesale borrower liquidity, cash flows, enterprise/asset values, access to capital, and other relevant factors to make judgments about the borrower's ability to make all contractual payments. Finally, collateral-dependent loans are typically maintained on nonaccrual status. On the date a loan is placed on nonaccrual status, all interest accrued but not collected is reversed against interest income. In addition, the amortization of deferred amounts is suspended. Interest income on nonaccrual loans may be recognized as cash interest payments are received (i.e., on a cash basis) if the recorded loan balance is deemed fully collectible; however, if there is doubt regarding the ultimate collectibility of the recorded loan balance, all interest cash receipts are applied to reduce the carrying value of the loan (the cost recovery method). For consumer loans, application of this policy typically results in the Firm recognizing interest income on nonaccrual consumer loans on a cash basis. A loan may be returned to accrual status when repayment is reasonably assured and there has been demonstrated performance under the terms of the loan or, if applicable, the terms of the restructured loan. As permitted by regulatory guidance, credit card loans are generally exempt from being placed on nonaccrual status; accordingly, interest and fees related to credit card loans continue to accrue until the loan is charged off or paid in full. Allowance for loan losses The allowance for loan losses represents the estimated expected credit losses in the held-for-investment loan portfolio at the balance sheet date and is recognized on the balance sheet as a contra asset, which brings the amortized cost to the net carrying value. Changes in the allowance for loan losses resulting from lending-related activity, macroeconomic variables, changes in credit and other inputs are recorded in the provision for credit losses on the Firm's Consolidated statements of income. Refer to Note 13 for further information on the Firm's accounting policies for the allowance for loan losses. Charge-offs Consumer loans are generally charged off or charged down to the lower of the amortized cost or the net realizable value of the underlying collateral (i.e., fair value less estimated costs to sell), with an offset to the allowance for loan losses, upon reaching specified 236JPMorgan Chase & Co./2025 Form 10-K 236JPMorgan Chase & Co./2025 Form 10-K 236JPMorgan Chase & Co./2025 Form 10-K 236 JPMorgan Chase & Co./2025 Form 10-K stages of delinquency in accordance with standards established by the FFIEC. Residential real estate loans, unmodified credit card loans and scored business banking loans are generally charged off no later than 180 days past due. Scored auto and closed-end consumer loans, including modified credit card accounts placed on a fixed payment plan, are charged off no later than 120 days past due. Certain consumer loans are charged off or charged down to their net realizable value earlier than the FFIEC charge-off standards in the following circumstances: •Loans modified to borrowers experiencing financial difficulty that are determined to be collateral-dependent. •Loans to borrowers who have experienced an event that suggests a loss is either known or highly certain are subject to accelerated charge-off standards (e.g., residential real estate and auto loans are charged off or charged down within 60 days of receiving notification of a bankruptcy filing). •Auto loans upon repossession of the automobile. Other than in certain limited circumstances, the Firm typically does not recognize charge-offs on the government-guaranteed portion of loans. Wholesale loans are charged off when they are deemed to be uncollectible. For loans that are not collateral-dependent, the determination of whether to recognize a charge-off as well as amount includes many factors, including the Firm's confidence and visibility of the loan's impairment, after considering the prioritization of the Firm's claim in bankruptcy, expectations of the workout/restructuring of the loan and valuation of the borrower's equity or the loan collateral. Collateral-dependent loans are charged down to the lower of its amortized cost or the estimated net realizable value of the underlying collateral, the determination of the fair value of the collateral depends on the type of collateral (e.g., securities, real estate). In cases where the collateral is in the form of liquid securities, the fair value is based on quoted market prices or broker quotes. For illiquid securities or other financial assets, the fair value of the collateral is generally estimated using a discounted cash flow model. For residential real estate loans, collateral values are based upon external valuation sources. When it becomes likely that a borrower is either unable or unwilling to pay, the Firm utilizes a broker's price opinion, appraisal and/or an automated valuation model of the home based on an exterior-only valuation ("exterior opinions"), which is then updated at least every 12 months, or more frequently depending on various market factors. As soon as practicable after the Firm receives the property in satisfaction of a debt (e.g., by taking legal title or physical possession), the Firm generally obtains an appraisal based on an inspection that includes the interior of the home ("interior appraisals"). Exterior opinions and interior appraisals are discounted based upon the Firm's experience with actual liquidation values as compared with the estimated values provided by exterior opinions and interior appraisals, considering state-specific factors. For commercial real estate loans, collateral values are generally based on appraisals from internal and external valuation sources. Collateral values are typically updated every six to twelve months, either by obtaining a new appraisal or by performing an internal analysis, in accordance with the Firm's policies. The Firm also considers both borrower- and market-specific factors, which may result in obtaining appraisal updates or broker price opinions at more frequent intervals.Loans held-for-sale Loans held-for-sale are measured at the lower of cost or fair value, with valuation changes recorded in noninterest revenue. For consumer loans, the valuation is performed on a portfolio basis. For wholesale loans, the valuation is performed on an individual loan basis. Interest income on loans held-for-sale is accrued and recognized based on the contractual rate of interest. Loan origination fees or costs and purchase price discounts or premiums are deferred in a contra loan account until the related loan is sold. The deferred fees or costs and discounts or premiums are an adjustment to the basis of the loan and therefore are included in the periodic determination of the lower of cost or fair value adjustments and/or the gain or loss recognized at the time of sale. Because these loans are recognized at the lower of cost or fair value, the Firm's allowance for loan losses and charge-off policies do not apply to these loans. However, loans held-for-sale are subject to the Firm's nonaccrual policies. Loans at fair value Loans for which the fair value option has been elected are measured at fair value, with changes in fair value recorded in noninterest revenue. Interest income on these loans is accrued and recognized based on the contractual rate of interest. Loan origination fees are recognized upfront in noninterest revenue. Loan origination costs are recognized in the associated expense category as incurred. Because these loans are recognized at fair value, the Firm's allowance for loan losses and charge-off stages of delinquency in accordance with standards established by the FFIEC. Residential real estate loans, unmodified credit card loans and scored business banking loans are generally charged off no later than 180 days past due. Scored auto and closed-end consumer loans, including modified credit card accounts placed on a fixed payment plan, are charged off no later than 120 days past due. Certain consumer loans are charged off or charged down to their net realizable value earlier than the FFIEC charge-off standards in the following circumstances: •Loans modified to borrowers experiencing financial difficulty that are determined to be collateral-dependent. •Loans to borrowers who have experienced an event that suggests a loss is either known or highly certain are subject to accelerated charge-off standards (e.g., residential real estate and auto loans are charged off or charged down within 60 days of receiving notification of a bankruptcy filing). •Auto loans upon repossession of the automobile. Other than in certain limited circumstances, the Firm typically does not recognize charge-offs on the government-guaranteed portion of loans. Wholesale loans are charged off when they are deemed to be uncollectible. For loans that are not collateral-dependent, the determination of whether to recognize a charge-off as well as amount includes many factors, including the Firm's confidence and visibility of the loan's impairment, after considering the prioritization of the Firm's claim in bankruptcy, expectations of the workout/restructuring of the loan and valuation of the borrower's equity or the loan collateral. Collateral-dependent loans are charged down to the lower of its amortized cost or the estimated net realizable value of the underlying collateral, the determination of the fair value of the collateral depends on the type of collateral (e.g., securities, real estate). In cases where the collateral is in the form of liquid securities, the fair value is based on quoted market prices or broker quotes. For illiquid securities or other financial assets, the fair value of the collateral is generally estimated using a discounted cash flow model. For residential real estate loans, collateral values are based upon external valuation sources. When it becomes likely that a borrower is either unable or unwilling to pay, the Firm utilizes a broker's price opinion, appraisal and/or an automated valuation model of the home based on an exterior-only valuation ("exterior opinions"), which is then updated at least every 12 months, or more frequently depending on various market factors. As soon as practicable after stages of delinquency in accordance with standards established by the FFIEC. Residential real estate loans, unmodified credit card loans and scored business banking loans are generally charged off no later than 180 days past due. Scored auto and closed-end consumer loans, including modified credit card accounts placed on a fixed payment plan, are charged off no later than 120 days past due. Certain consumer loans are charged off or charged down to their net realizable value earlier than the FFIEC charge-off standards in the following circumstances: •Loans modified to borrowers experiencing financial difficulty that are determined to be collateral-dependent. •Loans to borrowers who have experienced an event that suggests a loss is either known or highly certain are subject to accelerated charge-off standards (e.g., residential real estate and auto loans are charged off or charged down within 60 days of receiving notification of a bankruptcy filing). •Auto loans upon repossession of the automobile. Other than in certain limited circumstances, the Firm typically does not recognize charge-offs on the government-guaranteed portion of loans. Wholesale loans are charged off when they are deemed to be uncollectible. For loans that are not collateral-dependent, the determination of whether to recognize a charge-off as well as amount includes many factors, including the Firm's confidence and visibility of the loan's impairment, after considering the prioritization of the Firm's claim in bankruptcy, expectations of the workout/restructuring of the loan and valuation of the borrower's equity or the loan collateral. Collateral-dependent loans are charged down to the lower of its amortized cost or the estimated net realizable value of the underlying collateral, the determination of the fair value of the collateral depends on the type of collateral (e.g., securities, real estate). In cases where the collateral is in the form of liquid securities, the fair value is based on quoted market prices or broker quotes. For illiquid securities or other financial assets, the fair value of the collateral is generally estimated using a discounted cash flow model. For residential real estate loans, collateral values are based upon external valuation sources. When it becomes likely that a borrower is either unable or unwilling to pay, the Firm utilizes a broker's price opinion, appraisal and/or an automated valuation model of the home based on an exterior-only valuation ("exterior opinions"), which is then updated at least every 12 months, or more frequently depending on various market factors. As soon as practicable after the Firm receives the property in satisfaction of a debt (e.g., by taking legal title or physical possession), the Firm generally obtains an appraisal based on an inspection that includes the interior of the home ("interior appraisals"). Exterior opinions and interior appraisals are discounted based upon the Firm's experience with actual liquidation values as compared with the estimated values provided by exterior opinions and interior appraisals, considering state-specific factors. For commercial real estate loans, collateral values are generally based on appraisals from internal and external valuation sources. Collateral values are typically updated every six to twelve months, either by obtaining a new appraisal or by performing an internal analysis, in accordance with the Firm's policies. The Firm also considers both borrower- and market-specific factors, which may result in obtaining appraisal updates or broker price opinions at more frequent intervals.Loans held-for-sale Loans held-for-sale are measured at the lower of cost or fair value, with valuation changes recorded in noninterest revenue. For consumer loans, the valuation is performed on a portfolio basis. For wholesale loans, the valuation is performed on an individual loan basis. Interest income on loans held-for-sale is accrued and recognized based on the contractual rate of interest. Loan origination fees or costs and purchase price discounts or premiums are deferred in a contra loan account until the related loan is sold. The deferred fees or costs and discounts or premiums are an adjustment to the basis of the loan and therefore are included in the periodic determination of the lower of cost or fair value adjustments and/or the gain or loss recognized at the time of sale. Because these loans are recognized at the lower of cost or fair value, the Firm's allowance for loan losses and charge-off policies do not apply to these loans. However, loans held-for-sale are subject to the Firm's nonaccrual policies. Loans at fair value Loans for which the fair value option has been elected are measured at fair value, with changes in fair value recorded in noninterest revenue. Interest income on these loans is accrued and recognized based on the contractual rate of interest. Loan origination fees are recognized upfront in noninterest revenue. Loan origination costs are recognized in the associated expense category as incurred. Because these loans are recognized at fair value, the Firm's allowance for loan losses and charge-off the Firm receives the property in satisfaction of a debt (e.g., by taking legal title or physical possession), the Firm generally obtains an appraisal based on an inspection that includes the interior of the home ("interior appraisals"). Exterior opinions and interior appraisals are discounted based upon the Firm's experience with actual liquidation values as compared with the estimated values provided by exterior opinions and interior appraisals, considering state-specific factors. For commercial real estate loans, collateral values are generally based on appraisals from internal and external valuation sources. Collateral values are typically updated every six to twelve months, either by obtaining a new appraisal or by performing an internal analysis, in accordance with the Firm's policies. The Firm also considers both borrower- and market-specific factors, which may result in obtaining appraisal updates or broker price opinions at more frequent intervals. six --- ## Modified Risk: Common stockholders' equity(f) **Key changes:** - Updated: "(d)Reflects the Purchase Money Note associated with the First Republic acquisition." - Updated: "(f)Refer to Capital Risk Management on pages 89-99, Consolidated statements of changes in stockholders' equity on page 168, Note 21 and Note 22 for additional information on preferred stock and common stockholders' equity." **Prior (2025):** (a)Primarily consists of short-term securities loaned or sold under agreements to repurchase. (b)Included in beneficial interests issued by consolidated variable interest entities on the Firm's Consolidated balance sheets. (c)Includes certain TLAC-eligible long-term unsecured debt issued by the Parent Company. (d)Reflects the Purchase Money Note associated with the First Republic acquisition on May 1, 2023. Refer to Note 34 for additional information. (e)Includes long-term structured notes that are secured. (f)Refer to Capital Risk Management on pages 97-107, Consolidated statements of changes in stockholders' equity on page 175, Note 21 and Note 22 for additional information on preferred stock and common stockholders' equity. (g)Includes the timing impact of First Republic. Refer to the Executive Overview on pages 54-58 and Note 34 for additional information. **Current (2026):** (a)Primarily consists of short-term securities loaned or sold under agreements to repurchase. (b)Included in beneficial interests issued by consolidated variable interest entities on the Firm's Consolidated balance sheets. (c)Includes certain TLAC-eligible long-term unsecured debt issued by the Parent Company. (d)Reflects the Purchase Money Note associated with the First Republic acquisition. Refer to Note 34 for additional information. (e)Includes long-term structured notes that are secured. (f)Refer to Capital Risk Management on pages 89-99, Consolidated statements of changes in stockholders' equity on page 168, Note 21 and Note 22 for additional information on preferred stock and common stockholders' equity. --- ## Modified Risk: Loan securitizations **Key changes:** - Updated: "JPMorgan Chase & Co./2025 Form 10-K269 JPMorgan Chase & Co./2025 Form 10-K269 JPMorgan Chase & Co./2025 Form 10-K269 JPMorgan Chase & Co./2025 Form 10-K 269" **Prior (2025):** The Firm has securitized and sold a variety of loans, including residential mortgages, credit card receivables, commercial mortgages and other consumer loans. The purposes of these securitization transactions were to satisfy investor demand and to generate liquidity for the Firm. For loan securitizations in which the Firm is not required to consolidate the trust, the Firm records the transfer of the loan receivable to the trust as a sale when all of the following accounting criteria for a sale are met: (1) the transferred financial assets are legally isolated from the Firm's creditors; (2) the transferee or beneficial interest holder can pledge or exchange the transferred financial assets; and (3) the Firm does not maintain effective control over the transferred financial assets (e.g., the Firm cannot repurchase the transferred assets before their maturity and it does not have the ability to unilaterally cause the holder to return the transferred assets). For loan securitizations accounted for as a sale, the Firm recognizes a gain or loss based on the difference between the value of proceeds received (including cash, beneficial interests, or servicing assets received) and the carrying value of the assets sold. Gains and losses on securitizations are reported in noninterest revenue. JPMorgan Chase & Co./2024 Form 10-K277 JPMorgan Chase & Co./2024 Form 10-K277 JPMorgan Chase & Co./2024 Form 10-K277 JPMorgan Chase & Co./2024 Form 10-K 277 **Current (2026):** The Firm has securitized and sold a variety of loans, including residential mortgages, credit card receivables, commercial mortgages and other consumer loans. The purposes of these securitization transactions were to satisfy investor demand and to generate liquidity for the Firm. For loan securitizations in which the Firm is not required to consolidate the trust, the Firm records the transfer of the loan receivable to the trust as a sale when all of the following accounting criteria for a sale are met: (1) the transferred financial assets are legally isolated from the Firm's creditors; (2) the transferee or beneficial interest holder can pledge or exchange the transferred financial assets; and (3) the Firm does not maintain effective control over the transferred financial assets (e.g., the Firm cannot repurchase the transferred assets before their maturity and it does not have the ability to unilaterally cause the holder to return the transferred assets). For loan securitizations accounted for as a sale, the Firm recognizes a gain or loss based on the difference between the value of proceeds received (including cash, beneficial interests, or servicing assets received) and the carrying value of the assets sold. Gains and losses on securitizations are reported in noninterest revenue. JPMorgan Chase & Co./2025 Form 10-K269 JPMorgan Chase & Co./2025 Form 10-K269 JPMorgan Chase & Co./2025 Form 10-K269 JPMorgan Chase & Co./2025 Form 10-K 269 --- ## Modified Risk: Unaudited pro forma condensed combined financial information **Key changes:** - Updated: "The following table presents certain unaudited pro forma financial information for the year ended December 31, 2023 as if the First Republic acquisition had occurred on January 1, 2022, including recognition of the estimated bargain purchase gain of $2.8 billion and the provision for credit losses of $1.2 billion." - Updated: "Year ended December 31,(in millions)2023Noninterest revenue$65,816 Net interest income90,856 Net income48,665 314JPMorgan Chase & Co./2025 Form 10-K 314JPMorgan Chase & Co./2025 Form 10-K 314JPMorgan Chase & Co./2025 Form 10-K 314 JPMorgan Chase & Co./2025 Form 10-K" **Prior (2025):** The following table presents certain unaudited pro forma financial information for the year ended December 31, 2023 and 2022 as if the First Republic acquisition had occurred on January 1, 2022, including recognition of the estimated bargain purchase gain of $2.8 billion and the provision for credit losses of $1.2 billion. Additional adjustments include the interest on the Purchase Money Note and the impact of amortizing and accreting certain estimated fair value adjustments related to intangible assets, loans and lending-related commitments. The Firm expects to achieve operating cost savings and other business synergies resulting from the acquisition that are not reflected in the pro forma amounts. The pro forma information is not necessarily indicative of the historical results of operations had the acquisition occurred on January 1, 2022, nor is it indicative of the results of operations in future periods. Year ended December 31,(in millions)20232022Noninterest revenue$65,816 $66,510 Net interest income90,856 71,005 Net income48,665 41,089 JPMorgan Chase & Co./2024 Form 10-K321 JPMorgan Chase & Co./2024 Form 10-K321 JPMorgan Chase & Co./2024 Form 10-K321 JPMorgan Chase & Co./2024 Form 10-K 321 **Current (2026):** The following table presents certain unaudited pro forma financial information for the year ended December 31, 2023 as if the First Republic acquisition had occurred on January 1, 2022, including recognition of the estimated bargain purchase gain of $2.8 billion and the provision for credit losses of $1.2 billion. Additional adjustments include the interest on the Purchase Money Note and the impact of amortizing and accreting certain estimated fair value adjustments related to intangible assets, loans and lending-related commitments. The Firm expects to achieve operating cost savings and other business synergies resulting from the acquisition that are not reflected in the pro forma amounts. The pro forma information is not necessarily indicative of the historical results of operations had the acquisition occurred on January 1, 2022, nor is it indicative of the results of operations in future periods. Year ended December 31,(in millions)2023Noninterest revenue$65,816 Net interest income90,856 Net income48,665 314JPMorgan Chase & Co./2025 Form 10-K 314JPMorgan Chase & Co./2025 Form 10-K 314JPMorgan Chase & Co./2025 Form 10-K 314 JPMorgan Chase & Co./2025 Form 10-K --- ## Modified Risk: Total credit derivatives and credit-related notes **Key changes:** - Updated: "216JPMorgan Chase & Co./2025 Form 10-K 216JPMorgan Chase & Co./2025 Form 10-K 216JPMorgan Chase & Co./2025 Form 10-K 216 JPMorgan Chase & Co./2025 Form 10-K The following tables summarize the notional amounts by the ratings, maturity profile, and total fair value, of credit derivatives as of December 31, 2025 and 2024, where JPMorganChase is the seller of protection." **Prior (2025):** Protection purchased with identical underlyings(c) Net protection (sold)/purchased(d) Other protection purchased(e) Other credit derivatives(a) Credit-related notes(b) Protection purchased with identical underlyings(c) Net protection (sold)/purchased(d) Other protection purchased(e) Other credit derivatives(a) Credit-related notes(b) (a)Other credit derivatives predominantly consist of credit swap options and total return swaps. (b)Predominantly represents Other protection purchased by CIB. (c)Represents the total notional amount of protection purchased where the underlying reference instrument is identical to the reference instrument on protection sold; the notional amount of protection purchased for each individual identical underlying reference instrument may be greater or lower than the notional amount of protection sold. (d)Does not take into account the fair value of the reference obligation at the time of settlement, which would generally reduce the amount the seller of protection pays to the buyer of protection in determining settlement value. (e)Represents protection purchased by the Firm on referenced instruments (single-name, portfolio or index) where the Firm has not sold any protection on the identical reference instrument. Also includes credit protection against certain loans and lending-related commitments in the retained lending portfolio through the issuance of credit derivatives and credit-related notes. JPMorgan Chase & Co./2024 Form 10-K223 JPMorgan Chase & Co./2024 Form 10-K223 JPMorgan Chase & Co./2024 Form 10-K223 JPMorgan Chase & Co./2024 Form 10-K 223 **Current (2026):** Protection purchased with identical underlyings(c) Net protection (sold)/purchased(d) Other protection purchased(e) Other credit derivatives(a) Credit-related notes(b) Protection purchased with identical underlyings(c) Net protection (sold)/purchased(d) Other protection purchased(e) Other credit derivatives(a) Credit-related notes(b) (a)Other credit derivatives predominantly consist of credit swap options and total return swaps. (b)Predominantly represents Other protection purchased by CIB. (c)Represents the total notional amount of protection purchased where the underlying reference instrument is identical to the reference instrument on protection sold; the notional amount of protection purchased for each individual identical underlying reference instrument may be greater or lower than the notional amount of protection sold. (d)Does not take into account the fair value of the reference obligation at the time of settlement, which would generally reduce the amount the seller of protection pays to the buyer of protection in determining settlement value. (e)Represents protection purchased by the Firm on referenced instruments (single-name, portfolio or index) where the Firm has not sold any protection on the identical reference instrument. Also includes credit protection against certain loans and lending-related commitments in the retained lending portfolio through the issuance of credit derivatives and credit-related notes. 216JPMorgan Chase & Co./2025 Form 10-K 216JPMorgan Chase & Co./2025 Form 10-K 216JPMorgan Chase & Co./2025 Form 10-K 216 JPMorgan Chase & Co./2025 Form 10-K The following tables summarize the notional amounts by the ratings, maturity profile, and total fair value, of credit derivatives as of December 31, 2025 and 2024, where JPMorganChase is the seller of protection. The maturity profile is based on the remaining contractual maturity of the credit derivative contracts. The ratings profile is based on the rating of the reference entity on which the credit derivative contract is based. The ratings and maturity profile of credit derivatives where JPMorganChase is the purchaser of protection are comparable to the profile reflected below. --- ## Modified Risk: Governance and oversight **Key changes:** - Updated: "The Firm's General Counsel reports to the CEO and is a member of the Operating Committee, the Firmwide Risk Committee and the Firmwide Control Committee." - Updated: "Refer to Critical Accounting Estimates Used by the Firm on pages 154-157 and Note 2 for a summary of model-based valuations and other valuation techniques." - Updated: "Refer to Critical Accounting Estimates Used by the Firm on pages 154-157 and Note 2 for a summary of model-based valuations and other valuation techniques." - Updated: "Refer to Critical Accounting Estimates Used by the Firm on pages 154-157 and Note 2 for a summary of model-based valuations and other valuation techniques." **Prior (2025):** ESTIMATIONS AND MODEL RISK MANAGEMENT ESTIMATIONS AND MODEL RISK MANAGEMENT Estimations and Model risk, a subcategory of operational risk, is the potential for adverse consequences from decisions based on incorrect or misused estimation outputs. The Firm uses models and other analytical and judgment-based estimations, including those based upon machine learning or artificial intelligence techniques, across various businesses and functions. The estimation methods are of varying levels of sophistication and are used for many purposes, such as the valuation of positions and measurement of risk, assessing regulatory capital requirements, conducting stress testing, evaluating the allowance for credit losses and making business decisions. A dedicated independent function, Model Risk Governance and Review ("MRGR"), defines and governs the Firm's policies relating to the management of model risk and risks associated with certain analytical and judgment-based estimations, such as those used in risk management, budget forecasting and capital planning and analysis. Model risks are owned by the users of the models within the LOBs and Corporate based on the specific purposes of such models. Users and developers of models are responsible for developing, implementing and testing their models, as well as referring models to MRGR for review and approval. Once models have been approved, model users and developers are responsible for maintaining a robust operating environment, and must monitor and evaluate the performance of the models on an ongoing basis. Model users and developers may seek to enhance models in response to changes in the relevant portfolios and in product and market developments, as well as to capture improvements in available modeling techniques and systems capabilities. Models are tiered based on an internal standard according to their complexity, the exposure associated with the model and the Firm's reliance on the model. This tiering is subject to the approval of MRGR. In its review of a model, MRGR considers whether the model is suitable for the specific purposes for which it will be used. When reviewing a model, MRGR analyzes and challenges the model methodology and the reasonableness of model assumptions, and may perform or require additional testing, including back-testing of model outcomes. Model reviews are approved by the appropriate level of management within MRGR based on the relevant model tier.Under the Firm's Estimations and Model Risk Management Policy, MRGR reviews and approves new models, as well as material changes to existing models, prior to their use. In certain circumstances, exceptions may be granted to the Firm's policy to allow a model to be used prior to review or approval. MRGR may also require the user to take appropriate actions to mitigate the model risk if it is to be used in the interim. These actions will depend on the model and may include, for example, limitation of trading activity.While models are inherently imprecise, the degree of imprecision or uncertainty can be heightened by the market or economic environment. This is particularly true when the current and forecasted environments are significantly different from the historical environments upon which the models were developed. This increased uncertainty may necessitate a greater degree of judgment and analytics to inform any adjustments that the Firm may make to model outputs than would otherwise be the case. In addition, the Firm may experience increased uncertainty in its estimates if assets acquired differ from those used to develop the models. Refer to Critical Accounting Estimates Used by the Firm on pages 161-164 and Note 2 for a summary of model-based valuations and other valuation techniques. Estimations and Model risk, a subcategory of operational risk, is the potential for adverse consequences from decisions based on incorrect or misused estimation outputs. The Firm uses models and other analytical and judgment-based estimations, including those based upon machine learning or artificial intelligence techniques, across various businesses and functions. The estimation methods are of varying levels of sophistication and are used for many purposes, such as the valuation of positions and measurement of risk, assessing regulatory capital requirements, conducting stress testing, evaluating the allowance for credit losses and making business decisions. A dedicated independent function, Model Risk Governance and Review ("MRGR"), defines and governs the Firm's policies relating to the management of model risk and risks associated with certain analytical and judgment-based estimations, such as those used in risk management, budget forecasting and capital planning and analysis. Model risks are owned by the users of the models within the LOBs and Corporate based on the specific purposes of such models. Users and developers of models are responsible for developing, implementing and testing their models, as well as referring models to MRGR for review and approval. Once models have been approved, model users and developers are responsible for maintaining a robust operating environment, and must monitor and evaluate the performance of the models on an ongoing basis. Model users and developers may seek to enhance models in response to changes in the relevant portfolios and in product and market developments, as well as to capture improvements in available modeling techniques and systems capabilities. Estimations and Model risk, a subcategory of operational risk, is the potential for adverse consequences from decisions based on incorrect or misused estimation outputs. The Firm uses models and other analytical and judgment-based estimations, including those based upon machine learning or artificial intelligence techniques, across various businesses and functions. The estimation methods are of varying levels of sophistication and are used for many purposes, such as the valuation of positions and measurement of risk, assessing regulatory capital requirements, conducting stress testing, evaluating the allowance for credit losses and making business decisions. A dedicated independent function, Model Risk Governance and Review ("MRGR"), defines and governs the Firm's policies relating to the management of model risk and risks associated with certain analytical and judgment-based estimations, such as those used in risk management, budget forecasting and capital planning and analysis. Model risks are owned by the users of the models within the LOBs and Corporate based on the specific purposes of such models. Users and developers of models are responsible for developing, implementing and testing their models, as well as referring models to MRGR for review and approval. Once models have been approved, model users and developers are responsible for maintaining a robust operating environment, and must monitor and evaluate the performance of the models on an ongoing basis. Model users and developers may seek to enhance models in response to changes in the relevant portfolios and in product and market developments, as well as to capture improvements in available modeling techniques and systems capabilities. Models are tiered based on an internal standard according to their complexity, the exposure associated with the model and the Firm's reliance on the model. This tiering is subject to the approval of MRGR. In its review of a model, MRGR considers whether the model is suitable for the specific purposes for which it will be used. When reviewing a model, MRGR analyzes and challenges the model methodology and the reasonableness of model assumptions, and may perform or require additional testing, including back-testing of model outcomes. Model reviews are approved by the appropriate level of management within MRGR based on the relevant model tier.Under the Firm's Estimations and Model Risk Management Policy, MRGR reviews and approves new models, as well as material changes to existing models, prior to their use. In certain circumstances, exceptions may be granted to the Firm's policy to allow a model to be used prior to review or approval. MRGR may also require the user to take appropriate actions to mitigate the model risk if it is to be used in the interim. These actions will depend on the model and may include, for example, limitation of trading activity.While models are inherently imprecise, the degree of imprecision or uncertainty can be heightened by the market or economic environment. This is particularly true when the current and forecasted environments are significantly different from the historical environments upon which the models were developed. This increased uncertainty may necessitate a greater degree of judgment and analytics to inform any adjustments that the Firm may make to model outputs than would otherwise be the case. In addition, the Firm may experience increased uncertainty in its estimates if assets acquired differ from those used to develop the models. Refer to Critical Accounting Estimates Used by the Firm on pages 161-164 and Note 2 for a summary of model-based valuations and other valuation techniques. Models are tiered based on an internal standard according to their complexity, the exposure associated with the model and the Firm's reliance on the model. This tiering is subject to the approval of MRGR. In its review of a model, MRGR considers whether the model is suitable for the specific purposes for which it will be used. When reviewing a model, MRGR analyzes and challenges the model methodology and the reasonableness of model assumptions, and may perform or require additional testing, including back-testing of model outcomes. Model reviews are approved by the appropriate level of management within MRGR based on the relevant model tier. Under the Firm's Estimations and Model Risk Management Policy, MRGR reviews and approves new models, as well as material changes to existing models, prior to their use. In certain circumstances, exceptions may be granted to the Firm's policy to allow a model to be used prior to review or approval. MRGR may also require the user to take appropriate actions to mitigate the model risk if it is to be used in the interim. These actions will depend on the model and may include, for example, limitation of trading activity. While models are inherently imprecise, the degree of imprecision or uncertainty can be heightened by the market or economic environment. This is particularly true when the current and forecasted environments are significantly different from the historical environments upon which the models were developed. This increased uncertainty may necessitate a greater degree of judgment and analytics to inform any adjustments that the Firm may make to model outputs than would otherwise be the case. In addition, the Firm may experience increased uncertainty in its estimates if assets acquired differ from those used to develop the models. Refer to Critical Accounting Estimates Used by the Firm on pages 161-164 and Note 2 for a summary of model-based valuations and other valuation techniques. 160JPMorgan Chase & Co./2024 Form 10-K 160JPMorgan Chase & Co./2024 Form 10-K 160JPMorgan Chase & Co./2024 Form 10-K 160 JPMorgan Chase & Co./2024 Form 10-K CRITICAL ACCOUNTING ESTIMATES USED BY THE FIRM JPMorganChase's accounting policies and use of estimates are integral to understanding its reported results. The Firm's most complex accounting estimates require management's judgment to ascertain the appropriate carrying value of assets and liabilities. The Firm has established policies and control procedures intended to ensure that estimation methods, including any judgments made as part of such methods, are well-controlled, independently reviewed and applied consistently from period to period. The methods used and judgments made reflect, among other factors, the nature of the assets or liabilities and the related business and risk management strategies, which may vary across the Firm's businesses and portfolios. In addition, the policies and procedures are intended to ensure that the process for changing methodologies occurs in an appropriate manner. The Firm believes its estimates for determining the carrying value of its assets and liabilities are appropriate. The following is a brief description of the Firm's critical accounting estimates involving significant judgments.Allowance for credit lossesThe Firm's allowance for credit losses represents management's estimate of expected credit losses over the remaining expected life of the Firm's financial assets measured at amortized cost and certain off-balance sheet lending-related commitments. The allowance for credit losses generally comprises:•The allowance for loan losses, which covers the Firm's retained loan portfolios (scored and risk-rated),•The allowance for lending-related commitments, and•The allowance for credit losses on investment securities.The allowance for credit losses involves significant judgment on a number of matters including development and weighting of macroeconomic forecasts, incorporation of historical loss experience, assessment of risk characteristics, assignment of risk ratings, valuation of collateral, and the determination of remaining expected life. Refer to Note 10 and Note 13 for further information on these judgments as well as the Firm's policies and methodologies used to determine the Firm's allowance for credit losses.One of the most significant judgments involved in estimating the Firm's allowance for credit losses relates to the macroeconomic forecasts used to estimate credit losses over the eight-quarter forecast period within the Firm's methodology. The eight-quarter forecast incorporates hundreds of macroeconomic variables ("MEVs") that are relevant for exposures across the Firm, with modeled credit losses being driven primarily by a subset of less than twenty variables. The specific variables that have the greatest effect on the modeled losses vary by portfolio and geography.•Key MEVs for the consumer portfolio include regional U.S. unemployment rates and U.S. HPI.•Key MEVs for the wholesale portfolio include U.S. unemployment, U.S. real GDP, U.S. equity prices, U.S. interest rates, U.S. corporate credit spreads, oil prices, U.S. commercial real estate prices and U.S. HPI.Changes in the Firm's assumptions and forecasts of economic conditions could significantly affect its estimate of expected credit losses in the portfolio at the balance sheet date or lead to significant changes in the estimate from one reporting period to the next.As a result of the First Republic acquisition, the Firm recorded an allowance for credit losses for the loans acquired and lending-related commitments assumed as of May 1, 2023. Due to differences in risk rating methodologies for the First Republic portfolio and the ongoing integration of products and systems, the allowance for credit losses for the acquired wholesale portfolio was initially measured based on similar risk characteristics from other facilities underwritten by the Firm. Starting in the second quarter of 2024, the acquired portfolio was incorporated into the Firm's modeled credit loss estimates and is now reflected in the wholesale sensitivity analysis below. Refer to Note 34 for additional information on the First Republic acquisition. It is difficult to estimate how potential changes in any one factor or input might affect the overall allowance for credit losses because management considers a wide variety of factors and inputs in estimating the allowance for credit losses. Changes in the factors and inputs considered may not occur at the same rate and may not be consistent across all geographies or product types, and changes in factors and inputs may be directionally inconsistent, such that improvement in one factor or input may offset deterioration in others.To consider the impact of a hypothetical alternate macroeconomic forecast, the Firm compared the modeled credit losses determined using its central and relative adverse macroeconomic scenarios, which are two of the five scenarios considered in estimating the allowances for loan losses and lending-related commitments. The central and relative adverse scenarios each included a full suite of MEVs, but differed in the levels, paths and peaks/troughs of those variables over the eight-quarter forecast period. For example, compared to the Firm's central scenario shown on page 137 and in Note 13, the Firm's relative adverse scenario assumes an elevated U.S. JPMorganChase's accounting policies and use of estimates are integral to understanding its reported results. The Firm's most complex accounting estimates require management's judgment to ascertain the appropriate carrying value of assets and liabilities. The Firm has established policies and control procedures intended to ensure that estimation methods, including any judgments made as part of such methods, are well-controlled, independently reviewed and applied consistently from period to period. The methods used and judgments made reflect, among other factors, the nature of the assets or liabilities and the related business and risk management strategies, which may vary across the Firm's businesses and portfolios. In addition, the policies and procedures are intended to ensure that the process for changing methodologies occurs in an appropriate manner. The Firm believes its estimates for determining the carrying value of its assets and liabilities are appropriate. The following is a brief description of the Firm's critical accounting estimates involving significant judgments.Allowance for credit lossesThe Firm's allowance for credit losses represents management's estimate of expected credit losses over the remaining expected life of the Firm's financial assets measured at amortized cost and certain off-balance sheet lending-related commitments. The allowance for credit losses generally comprises:•The allowance for loan losses, which covers the Firm's retained loan portfolios (scored and risk-rated),•The allowance for lending-related commitments, and•The allowance for credit losses on investment securities.The allowance for credit losses involves significant judgment on a number of matters including development and weighting of macroeconomic forecasts, incorporation of historical loss experience, assessment of risk characteristics, assignment of risk ratings, valuation of collateral, and the determination of remaining expected life. Refer to Note 10 and Note 13 for further information on these judgments as well as the Firm's policies and methodologies used to determine the Firm's allowance for credit losses.One of the most significant judgments involved in estimating the Firm's allowance for credit losses relates to the macroeconomic forecasts used to estimate credit losses over the eight-quarter forecast period within the Firm's methodology. The eight-quarter forecast incorporates hundreds of macroeconomic variables ("MEVs") that are relevant for exposures across the Firm, with modeled credit JPMorganChase's accounting policies and use of estimates are integral to understanding its reported results. The Firm's most complex accounting estimates require management's judgment to ascertain the appropriate carrying value of assets and liabilities. The Firm has established policies and control procedures intended to ensure that estimation methods, including any judgments made as part of such methods, are well-controlled, independently reviewed and applied consistently from period to period. The methods used and judgments made reflect, among other factors, the nature of the assets or liabilities and the related business and risk management strategies, which may vary across the Firm's businesses and portfolios. In addition, the policies and procedures are intended to ensure that the process for changing methodologies occurs in an appropriate manner. The Firm believes its estimates for determining the carrying value of its assets and liabilities are appropriate. The following is a brief description of the Firm's critical accounting estimates involving significant judgments. **Current (2026):** The Firm's General Counsel reports to the CEO and is a member of the Operating Committee, the Firmwide Risk Committee and the Firmwide Control Committee. The Firm's General Counsel and other members of Legal report on significant legal matters to the Firm's Board of Directors and to the Audit Committee. Legal serves on and advises various committees and advises the Firm's LOBs and Corporate on potential reputation risk issues. 152JPMorgan Chase & Co./2025 Form 10-K 152JPMorgan Chase & Co./2025 Form 10-K 152JPMorgan Chase & Co./2025 Form 10-K 152 JPMorgan Chase & Co./2025 Form 10-K ESTIMATIONS AND MODEL RISK MANAGEMENT ESTIMATIONS AND MODEL RISK MANAGEMENT Estimations and Model risk, a subcategory of operational risk, is the potential for adverse consequences from decisions based on incorrect or misused estimation outputs. The Firm uses models and other analytical and judgment-based estimations, including those based upon machine learning or artificial intelligence techniques, across various businesses and functions. The estimation methods are of varying levels of sophistication and are used for many purposes, such as the valuation of positions and measurement of risk, assessing regulatory capital requirements, conducting stress testing, evaluating the allowance for credit losses and making business decisions. A dedicated independent function, Model Risk Governance and Review ("MRGR"), defines and governs the Firm's policies relating to the management of model risk and risks associated with certain analytical and judgment-based estimations, such as those used in risk management, budget forecasting and capital planning and analysis. Model risks are owned by the users of the models within the LOBs and Corporate based on the specific purposes of such models. Users and developers of models are responsible for developing, implementing and testing their models, as well as referring models to MRGR for review and approval. Once models have been approved, model users and developers are responsible for maintaining a robust operating environment, and must monitor and evaluate the performance of the models on an ongoing basis. Model users and developers may seek to enhance models in response to changes in the relevant portfolios and in product and market developments, as well as to capture improvements in available modeling techniques and systems capabilities. Models are tiered based on an internal standard according to their complexity, the exposure associated with the model and the Firm's reliance on the model. This tiering is subject to the approval of MRGR. In its review of a model, MRGR considers whether the model is suitable for the specific purposes for which it will be used. When reviewing a model, MRGR analyzes and challenges the model methodology and the reasonableness of model assumptions, and may perform or require additional testing, including back-testing of model outcomes. Model reviews are approved by the appropriate level of management within MRGR based on the relevant model tier.Under the Firm's Estimations and Model Risk Management Policy, MRGR reviews and approves new models, as well as material changes to existing models, prior to their use. In certain circumstances, exceptions may be granted to the Firm's policy to allow a model to be used prior to review or approval. MRGR may also require the user to take appropriate actions to mitigate the model risk if it is to be used in the interim. These actions will depend on the model and may include, for example, limitation of trading activity.While models are inherently imprecise, the degree of imprecision or uncertainty can be heightened by the market or economic environment. This is particularly true when the current and forecasted environments are significantly different from the historical environments upon which the models were developed. This increased uncertainty may necessitate a greater degree of judgment and analytics to inform any adjustments that the Firm may make to model outputs than would otherwise be the case. In addition, the Firm may experience increased uncertainty in its estimates if assets acquired differ from those used to develop the models. Refer to Critical Accounting Estimates Used by the Firm on pages 154-157 and Note 2 for a summary of model-based valuations and other valuation techniques. Estimations and Model risk, a subcategory of operational risk, is the potential for adverse consequences from decisions based on incorrect or misused estimation outputs. The Firm uses models and other analytical and judgment-based estimations, including those based upon machine learning or artificial intelligence techniques, across various businesses and functions. The estimation methods are of varying levels of sophistication and are used for many purposes, such as the valuation of positions and measurement of risk, assessing regulatory capital requirements, conducting stress testing, evaluating the allowance for credit losses and making business decisions. A dedicated independent function, Model Risk Governance and Review ("MRGR"), defines and governs the Firm's policies relating to the management of model risk and risks associated with certain analytical and judgment-based estimations, such as those used in risk management, budget forecasting and capital planning and analysis. Model risks are owned by the users of the models within the LOBs and Corporate based on the specific purposes of such models. Users and developers of models are responsible for developing, implementing and testing their models, as well as referring models to MRGR for review and approval. Once models have been approved, model users and developers are responsible for maintaining a robust operating environment, and must monitor and evaluate the performance of the models on an ongoing basis. Model users and developers may seek to enhance models in response to changes in the relevant portfolios and in product and market developments, as well as to capture improvements in available modeling techniques and systems capabilities. Estimations and Model risk, a subcategory of operational risk, is the potential for adverse consequences from decisions based on incorrect or misused estimation outputs. The Firm uses models and other analytical and judgment-based estimations, including those based upon machine learning or artificial intelligence techniques, across various businesses and functions. The estimation methods are of varying levels of sophistication and are used for many purposes, such as the valuation of positions and measurement of risk, assessing regulatory capital requirements, conducting stress testing, evaluating the allowance for credit losses and making business decisions. A dedicated independent function, Model Risk Governance and Review ("MRGR"), defines and governs the Firm's policies relating to the management of model risk and risks associated with certain analytical and judgment-based estimations, such as those used in risk management, budget forecasting and capital planning and analysis. Model risks are owned by the users of the models within the LOBs and Corporate based on the specific purposes of such models. Users and developers of models are responsible for developing, implementing and testing their models, as well as referring models to MRGR for review and approval. Once models have been approved, model users and developers are responsible for maintaining a robust operating environment, and must monitor and evaluate the performance of the models on an ongoing basis. Model users and developers may seek to enhance models in response to changes in the relevant portfolios and in product and market developments, as well as to capture improvements in available modeling techniques and systems capabilities. Models are tiered based on an internal standard according to their complexity, the exposure associated with the model and the Firm's reliance on the model. This tiering is subject to the approval of MRGR. In its review of a model, MRGR considers whether the model is suitable for the specific purposes for which it will be used. When reviewing a model, MRGR analyzes and challenges the model methodology and the reasonableness of model assumptions, and may perform or require additional testing, including back-testing of model outcomes. Model reviews are approved by the appropriate level of management within MRGR based on the relevant model tier.Under the Firm's Estimations and Model Risk Management Policy, MRGR reviews and approves new models, as well as material changes to existing models, prior to their use. In certain circumstances, exceptions may be granted to the Firm's policy to allow a model to be used prior to review or approval. MRGR may also require the user to take appropriate actions to mitigate the model risk if it is to be used in the interim. These actions will depend on the model and may include, for example, limitation of trading activity.While models are inherently imprecise, the degree of imprecision or uncertainty can be heightened by the market or economic environment. This is particularly true when the current and forecasted environments are significantly different from the historical environments upon which the models were developed. This increased uncertainty may necessitate a greater degree of judgment and analytics to inform any adjustments that the Firm may make to model outputs than would otherwise be the case. In addition, the Firm may experience increased uncertainty in its estimates if assets acquired differ from those used to develop the models. Refer to Critical Accounting Estimates Used by the Firm on pages 154-157 and Note 2 for a summary of model-based valuations and other valuation techniques. Models are tiered based on an internal standard according to their complexity, the exposure associated with the model and the Firm's reliance on the model. This tiering is subject to the approval of MRGR. In its review of a model, MRGR considers whether the model is suitable for the specific purposes for which it will be used. When reviewing a model, MRGR analyzes and challenges the model methodology and the reasonableness of model assumptions, and may perform or require additional testing, including back-testing of model outcomes. Model reviews are approved by the appropriate level of management within MRGR based on the relevant model tier. Under the Firm's Estimations and Model Risk Management Policy, MRGR reviews and approves new models, as well as material changes to existing models, prior to their use. In certain circumstances, exceptions may be granted to the Firm's policy to allow a model to be used prior to review or approval. MRGR may also require the user to take appropriate actions to mitigate the model risk if it is to be used in the interim. These actions will depend on the model and may include, for example, limitation of trading activity. While models are inherently imprecise, the degree of imprecision or uncertainty can be heightened by the market or economic environment. This is particularly true when the current and forecasted environments are significantly different from the historical environments upon which the models were developed. This increased uncertainty may necessitate a greater degree of judgment and analytics to inform any adjustments that the Firm may make to model outputs than would otherwise be the case. In addition, the Firm may experience increased uncertainty in its estimates if assets acquired differ from those used to develop the models. Refer to Critical Accounting Estimates Used by the Firm on pages 154-157 and Note 2 for a summary of model-based valuations and other valuation techniques. JPMorgan Chase & Co./2025 Form 10-K153 JPMorgan Chase & Co./2025 Form 10-K153 JPMorgan Chase & Co./2025 Form 10-K153 JPMorgan Chase & Co./2025 Form 10-K 153 --- ## Modified Risk: 2025 compared with 2024 **Key changes:** - Updated: "Net income was $4.5 billion, compared with $10.6 billion in the prior year." - Updated: "Refer to Liquidity Risk Management on pages 100-107 for further information on liquidity and funding risk." - Updated: "At December 31, 2025, the Treasury and CIO investment securities portfolio, net of the allowance for credit losses, was $774.0 billion, and the average credit rating of the securities comprising the portfolio was AA+ (based upon external ratings where available and, where not available, based primarily upon internal risk ratings)." - Updated: "Refer to Note 1 and Note 10 for additional information." - Updated: "The risks managed by Treasury and CIO arise from the activities undertaken by the Firm's three reportable business segments to serve their respective customer and client bases, which generate both on- and off-balance sheet assets and liabilities.Treasury and CIO seeks to achieve the Firm's asset-liability management objectives generally by investing in high quality securities that are managed for the longer-term as part of the Firm's investment securities portfolio." **Prior (2025):** Net income was $10.6 billion, compared with $2.8 billion in the prior year. Net revenue was $17.4 billion, compared with $8.0 billion in the prior year. Net interest income was $9.8 billion, up 24%, driven by the impact of balance sheet actions, primarily reinvestments in the investment securities portfolio, partially offset by the net impact of rates. Noninterest revenue was $7.6 billion, compared with $132 million in the prior year. Excluding the $7.9 billion net gain related to Visa shares recorded in the second quarter of 2024 and the prior-year $2.8 billion estimated bargain purchase gain associated with the First Republic acquisition, revenue was up $2.4 billion, predominantly driven by lower investment securities losses, primarily on sales of U.S. Treasuries and U.S. GSE and government agency MBS, associated with repositioning the investment securities portfolio in Treasury and CIO. Noninterest expense was $4.0 billion, down 29%, driven by: •a lower FDIC special assessment, •lower expense associated with the First Republic acquisition as the prior year expense in Corporate included individuals associated with First Republic who were not employees of the Firm until July 2023, and this expense was subsequently aligned to the appropriate LOBs starting in the third quarter of 2023, and •lower legal expense, partially offset by •a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024, and •higher costs associated with the Firm's international consumer initiatives. The provision for credit losses was $10 million. The provision in the prior year was $171 million, reflecting a net addition to the allowance for credit losses related to a single name exposure, which was subsequently charged off upon the restructuring of a loan. Refer to Note 10 and Note 13 for additional information on the investment securities portfolio and the allowance for credit losses. The current period income tax expense was driven by changes in the level and mix of income and expenses subject to U.S. federal and state and local taxes, including the impact of the net gain on Visa shares and the contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024, partially offset by benefits related to tax audit settlements. Other Corporate includes the Firm's international consumer initiatives, which primarily consists of Chase U.K., Nutmeg, and an ownership stake in C6 Bank.The deposits within Corporate relate to the Firm's international consumer initiatives and have increased as a result of growth in client accounts, reflecting the impact of additional product offerings. Other Corporate includes the Firm's international consumer initiatives, which primarily consists of Chase U.K., Nutmeg, and an ownership stake in C6 Bank. The deposits within Corporate relate to the Firm's international consumer initiatives and have increased as a result of growth in client accounts, reflecting the impact of additional product offerings. JPMorgan Chase & Co./2024 Form 10-K89 JPMorgan Chase & Co./2024 Form 10-K89 JPMorgan Chase & Co./2024 Form 10-K89 JPMorgan Chase & Co./2024 Form 10-K 89 Treasury and CIO overview Treasury and CIO is predominantly responsible for measuring, monitoring, reporting and managing the Firm's liquidity, funding, capital, structural interest rate and foreign exchange risks. The risks managed by Treasury and CIO arise from the activities undertaken by the Firm's three reportable business segments to serve their respective client bases, which generate both on- and off-balance sheet assets and liabilities.Treasury and CIO seeks to achieve the Firm's asset-liability management objectives generally by investing in high quality securities that are managed for the longer-term as part of the Firm's investment securities portfolio. Treasury and CIO also uses derivatives to meet the Firm's asset-liability management objectives. Refer to Note 5 for further information on derivatives. In addition, Treasury and CIO manages the Firm's cash position primarily through deposits at central banks and investments in short-term instruments. Refer to Liquidity Risk Management on pages 108-115 for further information on liquidity and funding risk. Refer to Market Risk Management on pages 141-149 for information on interest rate and foreign exchange risks.The investment securities portfolio predominantly consists of U.S. and non-U.S. government securities, U.S. GSE and government agency and nonagency mortgage-backed securities, collateralized loan obligations, obligations of U.S. states and municipalities and other ABS. At December 31, 2024, the Treasury and CIO investment securities portfolio, net of the allowance for credit losses, was $678.3 billion, and the average credit rating of the securities comprising the portfolio was AA+ (based upon external ratings where available and, where not available, based primarily upon internal risk ratings). Refer to Note 10 for further information on the Firm's investment securities portfolio and internal risk ratings.Selected income statement and balance sheet dataAs of or for the year ended December 31, (in millions)202420232022Investment securities losses$(1,020)$(3,180)$(2,380)Available-for-sale securities (average)$287,260 $200,708 $239,924 Held-to-maturity securities (average)(a)321,384 402,010 412,180 Investment securities portfolio (average) $608,644 $602,718 $652,104 Available-for-sale securities (period-end)$403,796 $199,354 $203,981 Held-to-maturity securities (period-end)(a)274,468 369,848 425,305 Investment securities portfolio, net of allowance for credit losses (period-end)(b)$678,264 $569,202 $629,286 (a)Effective January 1, 2023, the Firm adopted the portfolio layer method hedge accounting guidance. As permitted by the guidance, the Firm elected to transfer $7.1 billion of investment securities from HTM to AFS. During 2022, the Firm transferred $78.3 billion of investment securities from AFS to HTM for capital management purposes. Refer to Note 1 and Note 10 for additional information on the portfolio layer method hedge accounting guidance.(b)As of December 31, 2024, 2023 and 2022, the allowance for credit losses on investment securities was $105 million, $94 million and $67 million, respectively. Treasury and CIO overview Treasury and CIO is predominantly responsible for measuring, monitoring, reporting and managing the Firm's liquidity, funding, capital, structural interest rate and foreign exchange risks. The risks managed by Treasury and CIO arise from the activities undertaken by the Firm's three reportable business segments to serve their respective client bases, which generate both on- and off-balance sheet assets and liabilities.Treasury and CIO seeks to achieve the Firm's asset-liability management objectives generally by investing in high quality securities that are managed for the longer-term as part of the Firm's investment securities portfolio. Treasury and CIO also uses derivatives to meet the Firm's asset-liability management objectives. Refer to Note 5 for further information on derivatives. In addition, Treasury and CIO manages the Firm's cash position primarily through deposits at central banks and investments in short-term instruments. Refer to Liquidity Risk Management on pages 108-115 for further information on liquidity and funding risk. Refer to Market Risk Management on pages 141-149 for information on interest rate and foreign exchange risks.The investment securities portfolio predominantly consists of U.S. and non-U.S. government securities, U.S. GSE and government agency and nonagency mortgage-backed securities, collateralized loan obligations, obligations of U.S. states and municipalities and other ABS. At December 31, 2024, the Treasury and CIO investment securities portfolio, net of the allowance for credit losses, was $678.3 billion, and the average credit rating of the securities comprising the portfolio was AA+ (based upon external ratings where available and, where not available, based primarily upon internal risk ratings). Refer to Note 10 for further information on the Firm's investment securities portfolio and internal risk ratings. **Current (2026):** Net income was $4.5 billion, compared with $10.6 billion in the prior year. Net revenue was $7.0 billion, compared with $17.4 billion in the prior year. Net interest income was $6.1 billion, down $3.7 billion, driven by the impact of lower rates and changes in FTP for consumer deposits, partially offset by the impact of investment securities activity. Refer to Business Segment & Corporate Results on page 63 for additional information on FTP. Noninterest revenue was $911 million, compared with $7.6 billion in the prior year, driven by: •the absence of the $7.9 billion net gain related to Visa shares recorded in the second quarter of 2024, partially offset by •lower net investment securities losses associated with repositioning the investment securities portfolio in Treasury and CIO. The prior year net loss was primarily related to sales of U.S. GSE and government agency MBS and U.S. Treasuries, and •the $588 million First Republic-related gain recorded in the first quarter of 2025. Noninterest expense was $1.8 billion, down 54%, primarily driven by: •lower FDIC-related expense driven by releases of FDIC special assessment accruals of $763 million, compared with an accrual increase of $725 million in the first quarter of the prior year, and •the absence of the following items recorded in the prior year -a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation, and -restructuring and integration costs associated with First Republic. Refer to Note 6 for additional information on Visa shares and FDIC-related expense, Note 10 and Note 13 for additional information on the investment securities portfolio and the allowance for credit losses, and Note 6 and Note 34 for additional information on the First Republic acquisition. The current period income tax expense was driven by: •changes in the level and mix of income and expenses subject to U.S. federal, state and local taxes, partially offset by •a $774 million income tax benefit recorded in the second quarter of 2025, driven by the resolution of certain tax audits and the impact of tax regulations related to foreign currency translation gains and losses finalized in 2024 and effective for 2025. Other Corporate includes the Strategic Investment Group within the Firm's Security and Resiliency Initiative, as well as the Firm's international consumer initiatives, which primarily consist of Chase U.K., J.P. Morgan Personal Investing (formerly Nutmeg) and an ownership stake in C6 Bank.The deposits within Corporate relate to the Firm's international consumer initiatives and have increased as a result of growth in customer accounts. Other Corporate includes the Strategic Investment Group within the Firm's Security and Resiliency Initiative, as well as the Firm's international consumer initiatives, which primarily consist of Chase U.K., J.P. Morgan Personal Investing (formerly Nutmeg) and an ownership stake in C6 Bank. The deposits within Corporate relate to the Firm's international consumer initiatives and have increased as a result of growth in customer accounts. JPMorgan Chase & Co./2025 Form 10-K81 JPMorgan Chase & Co./2025 Form 10-K81 JPMorgan Chase & Co./2025 Form 10-K81 JPMorgan Chase & Co./2025 Form 10-K 81 Treasury and CIO overview Treasury and CIO is predominantly responsible for measuring, monitoring, reporting and managing the Firm's liquidity, funding, capital, structural interest rate and foreign exchange risks. The risks managed by Treasury and CIO arise from the activities undertaken by the Firm's three reportable business segments to serve their respective customer and client bases, which generate both on- and off-balance sheet assets and liabilities.Treasury and CIO seeks to achieve the Firm's asset-liability management objectives generally by investing in high quality securities that are managed for the longer-term as part of the Firm's investment securities portfolio. Treasury and CIO also uses derivatives to meet the Firm's asset-liability management objectives. Refer to Note 5 for further information on derivatives. In addition, Treasury and CIO manages the Firm's cash position primarily through deposits at central banks and investments in short-term instruments. Refer to Liquidity Risk Management on pages 100-107 for further information on liquidity and funding risk. Refer to Market Risk Management on pages 133-142 for information on interest rate and foreign exchange risks.The investment securities portfolio predominantly consists of U.S. and non-U.S. government securities, U.S. GSE and government agency and nonagency mortgage-backed securities, collateralized loan obligations, obligations of U.S. states and municipalities and other ABS. At December 31, 2025, the Treasury and CIO investment securities portfolio, net of the allowance for credit losses, was $774.0 billion, and the average credit rating of the securities comprising the portfolio was AA+ (based upon external ratings where available and, where not available, based primarily upon internal risk ratings). Refer to Note 10 for further information on the Firm's investment securities portfolio and internal risk ratings.Selected income statement and balance sheet dataAs of or for the year ended December 31, (in millions)202520242023Investment securities losses$(58)$(1,020)$(3,180)Available-for-sale securities (average)$463,541 (b)$287,260 $200,708 (c)Held-to-maturity securities (average)271,309 (b)321,384 402,010 (c)Investment securities portfolio (average) $734,850 $608,644 $602,718 Available-for-sale securities (period-end)$503,896 (b)$403,796 $199,354 (c)Held-to-maturity securities (period-end)270,134 (b)274,468 369,848 (c)Investment securities portfolio, net of allowance for credit losses (period-end)(a)$774,030 $678,264 $569,202 (a)As of December 31, 2025, 2024 and 2023, the allowance for credit losses on investment securities was $73 million, $105 million and $94 million, respectively.(b)During the third quarter of 2025, the Firm transferred $44.1 billion of investment securities from AFS to HTM for asset-liability management purposes.(c)Effective January 1, 2023, the Firm adopted the portfolio layer method hedge accounting guidance. As permitted by the guidance, the Firm elected to transfer $7.1 billion of investment securities from HTM to AFS. Refer to Note 1 and Note 10 for additional information. Treasury and CIO overview Treasury and CIO is predominantly responsible for measuring, monitoring, reporting and managing the Firm's liquidity, funding, capital, structural interest rate and foreign exchange risks. The risks managed by Treasury and CIO arise from the activities undertaken by the Firm's three reportable business segments to serve their respective customer and client bases, which generate both on- and off-balance sheet assets and liabilities.Treasury and CIO seeks to achieve the Firm's asset-liability management objectives generally by investing in high quality securities that are managed for the longer-term as part of the Firm's investment securities portfolio. Treasury and CIO also uses derivatives to meet the Firm's asset-liability management objectives. Refer to Note 5 for further information on derivatives. In addition, Treasury and CIO manages the Firm's cash position primarily through deposits at central banks and investments in short-term instruments. Refer to Liquidity Risk Management on pages 100-107 for further information on liquidity and funding risk. Refer to Market Risk Management on pages 133-142 for information on interest rate and foreign exchange risks.The investment securities portfolio predominantly consists of U.S. and non-U.S. government securities, U.S. GSE and government agency and nonagency mortgage-backed securities, collateralized loan obligations, obligations of U.S. states and municipalities and other ABS. At December 31, 2025, the Treasury and CIO investment securities portfolio, net of the allowance for credit losses, was $774.0 billion, and the average credit rating of the securities comprising the portfolio was AA+ (based upon external ratings where available and, where not available, based primarily upon internal risk ratings). Refer to Note 10 for further information on the Firm's investment securities portfolio and internal risk ratings. --- ## Modified Risk: Fair value measurement of the plans' assets and liabilities **Key changes:** - Updated: "Defined benefit pension and OPEB plans assets and liabilities measured at fair value20252024December 31, (in millions)Level 1(a)Level 2(b)Level 3(c)Total fair valueLevel 1(a)Level 2(b)Level 3(c)Total fair valueAssets measured at fair value classified in the fair value hierarchy$7,834 $9,809 $4,160 $21,803 $6,910 $9,693 $3,956 $20,559 Assets measured at fair value using NAV as a practical expedient2,388 2,101 Net defined benefit pension plan payables(588)(459)Total fair value of plan assets$23,603 $22,201" **Prior (2025):** Refer to Note 2 for information on fair value measurements, including descriptions of level 1, 2, and 3 of the fair value hierarchy and the valuation methods employed by the Firm. Defined benefit pension and OPEB plans assets and liabilities measured at fair value20242023December 31, (in millions)Level 1(a)Level 2(b)Level 3(c)Total fair valueLevel 1(a)Level 2(b)Level 3(c)Total fair valueAssets measured at fair value classified in the fair value hierarchy$6,910 $9,693 $3,956 $20,559 $6,521 $10,713 $3,124 $20,358 Assets measured at fair value using NAV as a practical expedient2,101 2,097 Net defined benefit pension plan payables(459)(442)Total fair value of plan assets$22,201 $22,013 **Current (2026):** Refer to Note 2 for information on fair value measurements, including descriptions of level 1, 2, and 3 of the fair value hierarchy and the valuation methods employed by the Firm. Defined benefit pension and OPEB plans assets and liabilities measured at fair value20252024December 31, (in millions)Level 1(a)Level 2(b)Level 3(c)Total fair valueLevel 1(a)Level 2(b)Level 3(c)Total fair valueAssets measured at fair value classified in the fair value hierarchy$7,834 $9,809 $4,160 $21,803 $6,910 $9,693 $3,956 $20,559 Assets measured at fair value using NAV as a practical expedient2,388 2,101 Net defined benefit pension plan payables(588)(459)Total fair value of plan assets$23,603 $22,201 --- ## Modified Risk: Year ended December 31, 2025 **Key changes:** - Updated: "(in millions, except ratios) Extended loans by a weighted-average of 19 months Provided payment deferrals with delayed amounts primarily recaptured at maturity and extended loans by a weighted-average of 20 months Other-than-insignificant payment deferral, interest rate reduction, and term extension Provided payment deferrals with delayed amounts recaptured at maturity, reduced weighted-average contractual interest by 1060 bps and extended loans by a weighted-average of 16 months Reduced weighted-average contractual interest by 672 bps and extended loans by a weighted-average of 15 months Other-than-insignificant payment deferral, principal forgiveness, and term extension Provided payment deferrals with delayed amounts recaptured at maturity, reduced amortized cost basis of the loan by $37 million and extended the loan by a weighted-average of 42 months Other(a) Reduced the net amortized cost basis by $273 million due to modified loans that include principal forgiveness (a) Includes loans with single and multiple modifications." **Prior (2025):** Extended loans by a weighted-average of 20 months Provided payment deferrals with delayed amounts recaptured at maturity and extended loans by a weighted-average of 18 months Reduced weighted-average contractual interest by 434 bps and extended loans by a weighted-average of 36 months Other(a) (a) Includes loans with single and multiple modifications. Commercial and industrialYear ended December 31, 2023(in millions, except ratios)Amortized cost basis% of loan modifications to total retained Commercial and industrial loansFinancial effect of loan modificationsSingle modificationsTerm extension$916 0.55 %Extended loans by a weighted-average of 17 monthsOther-than-insignificant payment deferral4020.24 Provided payment deferrals with delayed amounts primarily recaptured at the end of the deferral periodMultiple modificationsOther-than-insignificant payment deferral and term extension350.02 Provided payment deferrals with delayed amounts primarily re-amortized over the remaining life of the loan and extended loans by a weighted-average of 7 monthsInterest rate reduction and term extension1 - Reduced weighted average contractual interest rate over the life of the loan as a result of converting from variable to fixed rate and extended loans by a weighted-average of 16 monthsOther(a)9 - NMTotal$1,363 Extended loans by a weighted-average of 17 months Provided payment deferrals with delayed amounts primarily re-amortized over the remaining life of the loan and extended loans by a weighted-average of 7 months Reduced weighted average contractual interest rate over the life of the loan as a result of converting from variable to fixed rate and extended loans by a weighted-average of 16 months Other(a) (a) Include loans with multiple modifications. JPMorgan Chase & Co./2024 Form 10-K263 JPMorgan Chase & Co./2024 Form 10-K263 JPMorgan Chase & Co./2024 Form 10-K263 JPMorgan Chase & Co./2024 Form 10-K 263 **Current (2026):** (in millions, except ratios) Extended loans by a weighted-average of 19 months Provided payment deferrals with delayed amounts primarily recaptured at maturity and extended loans by a weighted-average of 20 months Other-than-insignificant payment deferral, interest rate reduction, and term extension Provided payment deferrals with delayed amounts recaptured at maturity, reduced weighted-average contractual interest by 1060 bps and extended loans by a weighted-average of 16 months Reduced weighted-average contractual interest by 672 bps and extended loans by a weighted-average of 15 months Other-than-insignificant payment deferral, principal forgiveness, and term extension Provided payment deferrals with delayed amounts recaptured at maturity, reduced amortized cost basis of the loan by $37 million and extended the loan by a weighted-average of 42 months Other(a) Reduced the net amortized cost basis by $273 million due to modified loans that include principal forgiveness (a) Includes loans with single and multiple modifications. Commercial and industrialYear ended December 31, 2024(in millions, except ratios)Amortized cost basis% of loan modifications to total retained Commercial and industrial loansFinancial effect of loan modificationsSingle modificationsTerm extension$1,180 0.71 %Extended loans by a weighted-average of 20 monthsOther-than-insignificant payment deferral4640.28 Provided payment deferrals with delayed amounts primarily re-amortized over the remaining tenorMultiple modificationsOther-than-insignificant payment deferral and term extension1750.10 Provided payment deferrals with delayed amounts primarily recaptured at maturity and extended loans by a weighted-average of 18 monthsInterest rate reduction and term extension510.03 Reduced weighted-average contractual interest by 434 bps and extended loans by a weighted-average of 36 monthsOther(a)30 0.02 NMTotal$1,900 Year ended December 31, 2024 (in millions, except ratios) Extended loans by a weighted-average of 20 months Provided payment deferrals with delayed amounts primarily recaptured at maturity and extended loans by a weighted-average of 18 months Reduced weighted-average contractual interest by 434 bps and extended loans by a weighted-average of 36 months Other(a) (a) Includes loans with single and multiple modifications. Commercial and industrialYear ended December 31, 2023(in millions, except ratios)Amortized cost basis% of loan modifications to total retained Commercial and industrial loansFinancial effect of loan modificationsSingle modificationsTerm extension$916 0.55 %Extended loans by a weighted-average of 17 monthsOther-than-insignificant payment deferral4020.24 Provided payment deferrals with delayed amounts primarily recaptured at the end of the deferral periodMultiple modificationsOther-than-insignificant payment deferral and term extension350.02 Provided payment deferrals with delayed amounts primarily re-amortized over the remaining life of the loan and extended loans by a weighted-average of 7 monthsInterest rate reduction and term extension1 - NMOther(a)9 - NMTotal$1,363 Year ended December 31, 2023 (in millions, except ratios) Extended loans by a weighted-average of 17 months Provided payment deferrals with delayed amounts primarily recaptured at the end of the deferral period Provided payment deferrals with delayed amounts primarily re-amortized over the remaining life of the loan and extended loans by a weighted-average of 7 months NM Other(a) (a) Include loans with multiple modifications. JPMorgan Chase & Co./2025 Form 10-K255 JPMorgan Chase & Co./2025 Form 10-K255 JPMorgan Chase & Co./2025 Form 10-K255 JPMorgan Chase & Co./2025 Form 10-K 255 --- ## Modified Risk: Credit card **Key changes:** - Updated: "Total credit card loans increased compared to December 31, 2024, reflecting growth from new accounts and revolving balances." **Prior (2025):** Total credit card loans increased from December 31, 2023 reflecting growth from new accounts and revolving balances. The December 31, 2024 30+ and 90+ day delinquency rates of 2.17% and 1.14%, respectively, increased compared to the December 31, 2023 30+ and 90+ day delinquency rates of 2.14% and 1.05%, respectively, in line with the Firm's expectations. Net charge-offs increased for the year ended December 31, 2024 compared to the prior year reflecting the seasoning of vintages originated in recent years, credit normalization and balance growth. Consistent with the Firm's policy, all credit card loans typically remain on accrual status until charged off. However, the Firm's allowance for loan losses includes the estimated uncollectible portion of accrued and billed interest and fee income. **Current (2026):** Total credit card loans increased compared to December 31, 2024, reflecting growth from new accounts and revolving balances. The December 31, 2025 30+ and 90+ day delinquency rates of 2.16% and 1.10%, respectively, decreased compared to the December 31, 2024 30+ and 90+ day delinquency rates of 2.17% and 1.14%, respectively, in line with the Firm's expectations. Net charge-offs increased for the year ended December 31, 2025 compared to the prior year, reflecting loan growth. Consistent with the Firm's policy, all credit card loans typically remain on accrual status until charged off. However, the Firm's allowance for loan losses includes the estimated uncollectible portion of accrued and billed interest and fee income. --- ## Modified Risk: Business segment highlights **Key changes:** - Updated: "Selected business metrics for each of the Firm's lines of business ("LOB") are presented below for the full year of 2025." - Updated: "The Firm provided new and renewed credit and raised capital for wholesale and consumer clients during 2025, consisting of approximately:$3.3 trillionTotal credit provided and capital raised (including loans and commitments)$280billionCredit for consumers$33billionCredit for U.S." **Prior (2025):** Selected business metrics for each of the Firm's lines of business ("LOB") are presented below for the full year of 2024. CCBROE 32%•Average deposits down 6%; client investment assets up 14% •Average loans up 9%; Card Services net charge-off rate of 3.34% •Debit and credit card sales volume(a) up 8%•Active mobile customers(b) up 7%CIB(c)ROE 18%•Investment Banking fees up 37%; #1 ranking for Global Investment Banking fees with 9.3% wallet share for the year•Markets revenue up 7%, with Fixed Income Markets up 5% and Equity Markets up 13%•Average Banking & Payments loans up 2%; average client deposits(d) up 5%AWMROE 34%•Assets under management ("AUM") of $4.0 trillion, up 18%•Average loans up 3%; average deposits up 9% including the transfer of First Republic deposits to AWM in 4Q23(e) CCB ROE 32% •Average deposits down 6%; client investment assets up 14% •Average loans up 9%; Card Services net charge-off rate of 3.34% •Debit and credit card sales volume(a) up 8% •Active mobile customers(b) up 7% CIB(c) ROE 18% •Investment Banking fees up 37%; #1 ranking for Global Investment Banking fees with 9.3% wallet share for the year •Markets revenue up 7%, with Fixed Income Markets up 5% and Equity Markets up 13% •Average Banking & Payments loans up 2%; average client deposits(d) up 5% AWM ROE 34% •Assets under management ("AUM") of $4.0 trillion, up 18% •Average loans up 3%; average deposits up 9% including the transfer of First Republic deposits to AWM in 4Q23(e) (a) Excludes Commercial Card. (b) Users of all mobile platforms who have logged in within the past 90 days. (c) Reflects the reorganization of the Firm's business segments. Refer to Business Segment & Corporate Results on pages 70-90 for additional information. (d) Represents client deposits and other third-party liabilities pertaining to the Payments and Securities Services businesses. (e) In the fourth quarter of 2023, CCB transferred certain deposits associated with First Republic to AWM and CIB. Refer to the Business Segment & Corporate Results on pages 70-90 for a detailed discussion of results by business segment. Credit provided and capital raisedJPMorganChase continues to support consumers, businesses and communities around the globe. The Firm provided new and renewed credit and raised capital for wholesale and consumer clients during 2024, consisting of approximately:$2.8 trillionTotal credit provided and capital raised (including loans and commitments)$250billionCredit for consumers$40billionCredit for U.S. small businesses$2.4 trillionCredit and capital for corporations and non-U.S. government entities(a)$65 billionCredit and capital for nonprofit and U.S. government entities(b)(a) Includes Individuals and Individual Entities primarily consisting of Global Private Bank clients within AWM.(b) Includes states, municipalities, hospitals and universities. **Current (2026):** Selected business metrics for each of the Firm's lines of business ("LOB") are presented below for the full year of 2025. CCBROE 32%•Average deposits down 1%; client investment assets up 17% •Average loans up 1%; Card Services net charge-off rate of 3.31% •Debit and credit card sales volume(a) up 7%•Active mobile customers(b) up 7%CIBROE 18%•Investment Banking fees up 7%; #1 ranking for Global Investment Banking fees with 8.4% wallet share for the year•Markets revenue up 19%, with Fixed Income Markets up 12% and Equity Markets up 33%•Average Banking & Payments loans(c) flat; average client deposits(d) up 14%AWMROE 40%•Assets under management ("AUM") of $4.8 trillion, up 18%•Average loans up 8%; average deposits up 4% CCB ROE 32% •Average deposits down 1%; client investment assets up 17% •Average loans up 1%; Card Services net charge-off rate of 3.31% •Debit and credit card sales volume(a) up 7% •Active mobile customers(b) up 7% CIB ROE 18% •Investment Banking fees up 7%; #1 ranking for Global Investment Banking fees with 8.4% wallet share for the year •Markets revenue up 19%, with Fixed Income Markets up 12% and Equity Markets up 33% •Average Banking & Payments loans(c) flat; average client deposits(d) up 14% AWM ROE 40% •Assets under management ("AUM") of $4.8 trillion, up 18% •Average loans up 8%; average deposits up 4% (a)Excludes Commercial Card. (b)Users of all mobile platforms who have logged in within the past 90 days. (c)On January 1, 2025, $5.6 billion of loans were realigned from Global Corporate Banking to Fixed Income Markets. (d)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 62-82 for a detailed discussion of results by business segment. Credit provided and capital raisedJPMorganChase 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 2025, consisting of approximately:$3.3 trillionTotal credit provided and capital raised (including loans and commitments)$280billionCredit for consumers$33billionCredit for U.S. small businesses$2.9 trillionCredit and capital for corporations and non-U.S. government entities(a)$76 billionCredit and capital for nonprofit and U.S. government entities(b)(a)Includes Individuals and Individual Entities primarily consisting of Global Private Bank clients within AWM.(b)Includes states, municipalities, hospitals and universities. --- ## Modified Risk: Foreclosed property **Key changes:** - Updated: "238JPMorgan Chase & Co./2025 Form 10-K 238JPMorgan Chase & Co./2025 Form 10-K 238JPMorgan Chase & Co./2025 Form 10-K 238 JPMorgan Chase & Co./2025 Form 10-K" **Prior (2025):** The Firm acquires property from borrowers through loan restructurings, workouts, and foreclosures. Property acquired may include real property (e.g., residential real estate, land, and buildings) and other commercial and personal property (e.g., automobiles, aircraft, railcars, and ships). The Firm recognizes foreclosed property upon receiving assets in satisfaction of a loan (e.g., by taking legal title or physical possession). For loans collateralized by real property, the Firm generally recognizes the asset received at foreclosure sale or upon the execution of a deed in lieu of foreclosure transaction with the borrower. Foreclosed assets are reported in other assets on the Consolidated balance sheets and initially recognized at fair value less estimated costs to sell. Each quarter the fair value of the acquired property is reviewed and adjusted, if necessary, to the lower of cost or fair value. Subsequent adjustments to fair value are charged/credited to noninterest revenue. Operating expense, such as real estate taxes and maintenance, are charged to other expense. JPMorgan Chase & Co./2024 Form 10-K245 JPMorgan Chase & Co./2024 Form 10-K245 JPMorgan Chase & Co./2024 Form 10-K245 JPMorgan Chase & Co./2024 Form 10-K 245 **Current (2026):** The Firm acquires property from borrowers through loan restructurings, workouts, and foreclosures. Property acquired may include real property (e.g., residential real estate, land, and buildings) and other commercial and personal property (e.g., automobiles, aircraft, railcars, and ships). The Firm recognizes foreclosed property upon receiving assets in satisfaction of a loan (e.g., by taking legal title or physical possession). For loans collateralized by real property, the Firm generally recognizes the asset received at foreclosure sale or upon the execution of a deed in lieu of foreclosure transaction with the borrower. Foreclosed assets are reported in other assets on the Consolidated balance sheets and initially recognized at fair value less estimated costs to sell. Each quarter the fair value of the acquired property is reviewed and adjusted, if necessary, to the lower of cost or fair value. Subsequent adjustments to fair value are charged/credited to noninterest revenue. Operating expense, such as real estate taxes and maintenance, are charged to other expense. 238JPMorgan Chase & Co./2025 Form 10-K 238JPMorgan Chase & Co./2025 Form 10-K 238JPMorgan Chase & Co./2025 Form 10-K 238 JPMorgan Chase & Co./2025 Form 10-K --- ## Modified Risk: Derivatives and Hedging: Fair Value Hedging - Portfolio Layer Method **Key changes:** - Removed: "JPMorgan Chase & Co./2024 Form 10-K179 JPMorgan Chase & Co./2024 Form 10-K179 JPMorgan Chase & Co./2024 Form 10-K179 JPMorgan Chase & Co./2024 Form 10-K 179" **Prior (2025):** The adoption of this guidance expanded the ability to hedge a portfolio of fixed-rate assets in a qualifying hedge accounting relationship. As permitted by the guidance, the Firm elected to transfer HTM securities to AFS and designated those securities in a portfolio layer method hedge upon adoption. The adoption impact of the transfer on retained earnings was not material. JPMorgan Chase & Co./2024 Form 10-K179 JPMorgan Chase & Co./2024 Form 10-K179 JPMorgan Chase & Co./2024 Form 10-K179 JPMorgan Chase & Co./2024 Form 10-K 179 **Current (2026):** The adoption of this guidance expanded the ability to hedge a portfolio of fixed-rate assets in a qualifying hedge accounting relationship. As permitted by the guidance, the Firm elected to transfer HTM securities to AFS and designated those securities in a portfolio layer method hedge upon adoption. The adoption impact of the transfer on retained earnings was not material. --- ## Modified Risk: Economic value sensitivity **Key changes:** - Updated: "In addition to earnings-at-risk, which is measured as a sensitivity to a baseline of earnings over the next 12 months, the Firm also measures economic value sensitivity ("EVS")." - Updated: "Additional information on long-term debt and held to maturity investment securities is disclosed on page 194 in Note 2." **Prior (2025):** In addition to earnings-at-risk, which is measured as a sensitivity to a baseline of earnings over the next 12 months, the Firm also measures Economic Value Sensitivity ("EVS"). EVS stress tests the longer-term economic value of equity by measuring the sensitivity of the Firm's current balance sheet, primarily retained loans, deposits, debt and investment securities as well as related hedges, under various interest rate scenarios. The Firm's pricing and cash flow assumptions associated with deposits, as well as prepayment assumptions for loans and securities, are significant factors in the EVS measure. In accordance with the CTC interest rate risk management policy, the Firm has established limits on EVS as a percentage of TCE. Certain assumptions used in the EVS measure may differ from those required in the fair value measurement note to the Consolidated Financial Statements. For example, certain assets and liabilities with no stated maturity, such as credit card receivables and deposits, have longer assumed durations in the EVS measure. Additional information on long-term debt and held to maturity investment securities is disclosed on page 201 in Note 2. 148JPMorgan Chase & Co./2024 Form 10-K 148JPMorgan Chase & Co./2024 Form 10-K 148JPMorgan Chase & Co./2024 Form 10-K 148 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** In addition to earnings-at-risk, which is measured as a sensitivity to a baseline of earnings over the next 12 months, the Firm also measures economic value sensitivity ("EVS"). EVS stress tests the longer-term economic value of equity by measuring the sensitivity of the Firm's current balance sheet, primarily retained loans, deposits, debt and investment securities as well as related hedges, under various interest rate scenarios. The Firm's pricing and cash flow assumptions associated with deposits, as well as prepayment assumptions for loans and securities, are significant factors in the EVS measure. In accordance with the CTC interest rate risk management policy, the Firm has established limits on EVS as a percentage of TCE. Certain assumptions used in the EVS measure may differ from those required in the fair value measurement note to the Consolidated Financial Statements. For example, certain assets and liabilities with no stated maturity, such as credit card receivables and deposits, have longer assumed durations in the EVS measure. Additional information on long-term debt and held to maturity investment securities is disclosed on page 194 in Note 2. JPMorgan Chase & Co./2025 Form 10-K141 JPMorgan Chase & Co./2025 Form 10-K141 JPMorgan Chase & Co./2025 Form 10-K141 JPMorgan Chase & Co./2025 Form 10-K 141 --- ## Modified Risk: Line of business and Corporate equity **Key changes:** - Updated: "The Firm's current equity allocation methodology incorporates Standardized RWA and the GSIB surcharge, both under rules currently in effect, as well as a simulation of capital depletion in a severe stress environment." - Updated: "As of January 1, 2026, changes to the Firm's capital allocations are primarily a result of updates to the Firm's current capital requirements and changes in RWA for each LOB under rules currently in effect." - Updated: "December 31,(in billions)January 1, 202620252024Consumer & Community Banking$61.5 $56.0 $54.5 Commercial & Investment Bank166.5 149.5 132.0 Asset & Wealth Management16.0 16.0 15.5 Corporate98.4 120.9 122.7 Total common stockholders' equity$342.4 $342.4 $324.7 internal targets for expected returns are established as key measures of an LOB's performance." - Updated: "As of January 1, 2026, changes to the Firm's capital allocations are primarily a result of updates to the Firm's current capital requirements and changes in RWA for each LOB under rules currently in effect." - Updated: "December 31,(in billions)January 1, 202620252024Consumer & Community Banking$61.5 $56.0 $54.5 Commercial & Investment Bank166.5 149.5 132.0 Asset & Wealth Management16.0 16.0 15.5 Corporate98.4 120.9 122.7 Total common stockholders' equity$342.4 $342.4 $324.7" **Prior (2025):** Each LOB and Corporate is allocated capital by taking into consideration a variety of factors including capital levels of similarly rated peers and applicable regulatory capital requirements. ROE is measured and internal targets for expected returns are established as key measures of an LOB's performance. The Firm's current equity allocation methodology incorporates Basel III Standardized RWA and the GSIB surcharge, both under rules currently in effect, as well as a simulation of capital depletion in a severe stress environment. At least annually, the assumptions, judgments and methodologies used to allocate capital are reassessed and, as a result, the capital allocated to the LOBs and Corporate may change. As of January 1, 2025, changes to the Firm's capital allocations are primarily a result of updates to the Firm's current capital requirements and changes in RWA for each LOB under rules currently in effect. Any capital that the Firm has accumulated in excess of these current requirements, including the capital required to meet the potential increased requirements of the U.S. Basel III proposal, has been retained in Corporate in addition to its allocated balance. The following table presents the capital allocated to each LOB and Corporate. December 31,(in billions)January 1, 202520242023Consumer & Community Banking$56.0 $54.5 $55.5 Commercial & Investment Bank149.5 132.0 138.0 Asset & Wealth Management16.0 15.5 17.0 Corporate103.2 122.7 90.0 Total common stockholders' equity$324.7 $324.7 $300.5 The Firm's current equity allocation methodology incorporates Basel III Standardized RWA and the GSIB surcharge, both under rules currently in effect, as well as a simulation of capital depletion in a severe stress environment. At least annually, the assumptions, judgments and methodologies used to allocate capital are reassessed and, as a result, the capital allocated to the LOBs and Corporate may change. As of January 1, 2025, changes to the Firm's capital allocations are primarily a result of updates to the Firm's current capital requirements and changes in RWA for each LOB under rules currently in effect. Any capital that the Firm has accumulated in excess of these current requirements, including the capital required to meet the potential increased requirements of the U.S. Basel III proposal, has been retained in Corporate in addition to its allocated balance. The following table presents the capital allocated to each LOB and Corporate. December 31,(in billions)January 1, 202520242023Consumer & Community Banking$56.0 $54.5 $55.5 Commercial & Investment Bank149.5 132.0 138.0 Asset & Wealth Management16.0 15.5 17.0 Corporate103.2 122.7 90.0 Total common stockholders' equity$324.7 $324.7 $300.5 **Current (2026):** Each LOB and Corporate is allocated capital by taking into consideration a variety of factors including capital levels of similarly rated peers and applicable regulatory capital requirements. ROE is measured and internal targets for expected returns are established as key measures of an LOB's performance. The Firm's current equity allocation methodology incorporates Standardized RWA and the GSIB surcharge, both under rules currently in effect, as well as a simulation of capital depletion in a severe stress environment. At least annually, the assumptions, judgments and methodologies used to allocate capital are reassessed and, as a result, the capital allocated to the LOBs and Corporate may change. As of January 1, 2026, changes to the Firm's capital allocations are primarily a result of updates to the Firm's current capital requirements and changes in RWA for each LOB under rules currently in effect. Any capital that the Firm has accumulated in excess of these current requirements, including the capital required to meet the potential increased requirements of the U.S. Basel III proposal, has been retained in Corporate in addition to its allocated balance. The following table presents the capital allocated to each LOB and Corporate. December 31,(in billions)January 1, 202620252024Consumer & Community Banking$61.5 $56.0 $54.5 Commercial & Investment Bank166.5 149.5 132.0 Asset & Wealth Management16.0 16.0 15.5 Corporate98.4 120.9 122.7 Total common stockholders' equity$342.4 $342.4 $324.7 internal targets for expected returns are established as key measures of an LOB's performance. The Firm's current equity allocation methodology incorporates Standardized RWA and the GSIB surcharge, both under rules currently in effect, as well as a simulation of capital depletion in a severe stress environment. At least annually, the assumptions, judgments and methodologies used to allocate capital are reassessed and, as a result, the capital allocated to the LOBs and Corporate may change. As of January 1, 2026, changes to the Firm's capital allocations are primarily a result of updates to the Firm's current capital requirements and changes in RWA for each LOB under rules currently in effect. Any capital that the Firm has accumulated in excess of these current requirements, including the capital required to meet the potential increased requirements of the U.S. Basel III proposal, has been retained in Corporate in addition to its allocated balance. The following table presents the capital allocated to each LOB and Corporate. December 31,(in billions)January 1, 202620252024Consumer & Community Banking$61.5 $56.0 $54.5 Commercial & Investment Bank166.5 149.5 132.0 Asset & Wealth Management16.0 16.0 15.5 Corporate98.4 120.9 122.7 Total common stockholders' equity$342.4 $342.4 $324.7 --- ## Modified Risk: JPMorganChase's businesses could be adversely affected by the failure or disruption of operational systems on which they depend. **Key changes:** - Updated: "If the operational systems on which JPMorganChase's businesses depend, including those of acquired businesses and external parties, are unable to meet JPMorganChase's operational requirements or bank regulatory standards, or if they fail or have other significant shortcomings, JPMorganChase could be materially and adversely affected." - Updated: "JPMorganChase's ability to effectively manage the stability of its operational systems and infrastructure could be hindered by many factors, any of which could have a negative impact on JPMorganChase and its clients, customers and counterparties, including: •challenges in maintaining and upgrading systems and infrastructure as the speed, frequency, volume, interconnectivity and complexity of transactions and other information flows continue to increase •attempts by third parties to defraud JPMorganChase and its clients and customers, which continue to increase, evolve and become more complex, as well as increased volumes of these attempts during periods of market disruption or economic uncertainty 20 20 20 20 •errors made by JPMorganChase or another market participant, whether inadvertent or malicious, which could cause widespread system disruption•weaknesses or shortcomings in operational systems that may not be detected in a timely manner•isolated or seemingly insignificant errors in operational systems that could compound, or migrate to other systems, becoming larger issues •failures in synchronization or encryption software, or degraded performance of microprocessors, which could cause disruptions in operational systems or in the ability of systems to communicate with each other, and•third parties that may try to block the use of key technology solutions by claiming that the use infringes on their intellectual property rights.JPMorganChase also depends on its ability to access and use the operational systems of third parties, including:•custodians•vendors, including providers of security, technology and data and cloud computing services, and•other market participants, such as clearing and payment systems, CCPs and securities exchanges." **Prior (2025):** JPMorganChase's businesses rely on the ability of JPMorganChase's financial, accounting, transaction execution, data processing and other operational systems, including devices supporting those systems, to process, record, monitor and report a large number of transactions on a continuous basis, and to do so accurately, quickly and securely. In addition to proper design, installation, maintenance and training, the effective functioning of JPMorganChase's operational systems depends on: •the quality of the information contained in those systems, as inaccurate, outdated, incomplete or corrupted data can significantly compromise the functionality or reliability of a particular system and other systems to which it transmits or from which it receives information, and•JPMorganChase's ability to continue to maintain and upgrade its systems on a regular and timely basis in line with technological advancements and evolving security requirements, maintain security and operational continuity of its systems, including by carefully managing any changes introduced to its systems, prevent unauthorized access and the misuse of access to its systems, and adhere to all applicable legal and regulatory requirements, particularly in regions where JPMorganChase may face a heightened risk of malicious activity.JPMorganChase has experienced and expects that it will continue to experience failures and disruptions in the stability of its operational systems, including degraded performance of data processing systems, data quality issues, disruptions of network connectivity and malfunctioning software, as well as disruptions in its ability to access and use the operational systems of third parties and interruptions in service from third-party service providers. These incidents have resulted in various negative effects for customers, including the inability to access account information or transact through ATM, internet or mobile channels, the exfiltration of customer personal data, the recording of duplicative transactions and extended delays for customers requiring services from call centers. There can be no assurance that these and other types of operational failures or disruptions will not occur in the future.JPMorganChase's ability to effectively manage the stability of its operational systems and infrastructure could be hindered by many factors, any of which could have a negative impact on JPMorganChase and its clients, customers and counterparties, including:•JPMorganChase's ability to effectively maintain and upgrade systems and infrastructure can become more challenging as the speed, frequency, volume, interconnectivity and complexity of transactions continue to increase•attempts by third parties to defraud JPMorganChase or its clients and customers continue to increase, evolve and become more complex, and during periods of market disruption or economic uncertainty, these attempts can be expected to further increase in volume•errors made by JPMorganChase or another market participant, whether inadvertent or malicious, could cause widespread system disruption•failure to detect weaknesses or shortcomings in operational systems in a timely manner•isolated or seemingly insignificant errors in operational systems could compound, or migrate to other systems over time, to become larger issues functionality or reliability of a particular system and other systems to which it transmits or from which it receives information, and •JPMorganChase's ability to continue to maintain and upgrade its systems on a regular and timely basis in line with technological advancements and evolving security requirements, maintain security and operational continuity of its systems, including by carefully managing any changes introduced to its systems, prevent unauthorized access and the misuse of access to its systems, and adhere to all applicable legal and regulatory requirements, particularly in regions where JPMorganChase may face a heightened risk of malicious activity. JPMorganChase has experienced and expects that it will continue to experience failures and disruptions in the stability of its operational systems, including degraded performance of data processing systems, data quality issues, disruptions of network connectivity and malfunctioning software, as well as disruptions in its ability to access and use the operational systems of third parties and interruptions in service from third-party service providers. These incidents have resulted in various negative effects for customers, including the inability to access account information or transact through ATM, internet or mobile channels, the exfiltration of customer personal data, the recording of duplicative transactions and extended delays for customers requiring services from call centers. There can be no assurance that these and other types of operational failures or disruptions will not occur in the future. JPMorganChase's ability to effectively manage the stability of its operational systems and infrastructure could be hindered by many factors, any of which could have a negative impact on JPMorganChase and its clients, customers and counterparties, including: •JPMorganChase's ability to effectively maintain and upgrade systems and infrastructure can become more challenging as the speed, frequency, volume, interconnectivity and complexity of transactions continue to increase •attempts by third parties to defraud JPMorganChase or its clients and customers continue to increase, evolve and become more complex, and during periods of market disruption or economic uncertainty, these attempts can be expected to further increase in volume •errors made by JPMorganChase or another market participant, whether inadvertent or malicious, could cause widespread system disruption •failure to detect weaknesses or shortcomings in operational systems in a timely manner •isolated or seemingly insignificant errors in operational systems could compound, or migrate to other systems over time, to become larger issues 22 22 22 22 •disruptions in operational systems or in the ability of systems to communicate with each other could be caused by failures in synchronization or encryption software, or degraded performance of microprocessors, and•attempts by third parties to block the use of key technology solutions by claiming that the use infringes on their intellectual property rights.JPMorganChase also depends on its ability to access and use the operational systems of third parties, including its custodians, vendors (such as those that provide data and cloud computing services, and security and technology services) and other market participants (such as clearing and payment systems, CCPs and securities exchanges). These external operational systems with which JPMorgan is connected, whether directly or indirectly, can be sources of operational risk to JPMorganChase. JPMorganChase may be exposed not only to a systems failure or cyber attack that may be experienced by a vendor or market infrastructure with which JPMorganChase is directly connected, but also to a systems breakdown or cyber attack involving another party to which such a vendor or infrastructure is connected. Similarly, retailers, payment systems and processors, data aggregators and other external parties with which JPMorganChase's customers do business can increase JPMorganChase's operational risk. This is particularly the case where activities of customers or other parties are beyond JPMorganChase's security and control systems, including through the use of the internet, cloud computing services, and personal smart phones and other mobile devices or services.If an external party obtains access to customer account data on JPMorganChase's systems, whether authorized or unauthorized, and that party misappropriates that data, this could result in negative outcomes for JPMorganChase and its clients and customers, including a heightened risk of fraudulent transactions using JPMorganChase's systems, losses from fraudulent transactions and reputational harm arising from the perception that JPMorganChase's systems may not be secure.As JPMorganChase's interconnectivity with clients, customers and other external parties continues to expand, JPMorganChase increasingly faces the risk of operational failure or cyber attacks with respect to the systems of those parties. Security breaches affecting JPMorganChase's clients or customers, or systems breakdowns or failures, security breaches or human error or misconduct affecting other external parties, may require JPMorganChase to take steps to protect the integrity of its own operational systems or to safeguard confidential information, including restricting the access of customers to their accounts. These actions can increase JPMorganChase's operational costs and potentially diminish customer satisfaction and confidence in JPMorganChase.Furthermore, the widespread and expanding interconnectivity among financial institutions, clearing banks, CCPs, payments processors, financial technology companies, securities exchanges, clearing houses and other financial market infrastructures increases the risk that the disruption of an operational system involving one institution or entity, including due to a cyber attack, may cause industry-wide operational disruptions that could materially affect JPMorganChase's ability to conduct business. In addition, the risks associated with the disruption of an operational system of a third party could be exacerbated to the extent that the services provided by that system are used by a significant number or proportion of market participants.The ineffectiveness, failure or other disruption of operational systems upon which JPMorganChase depends, including due to a systems malfunction, cyber incident or other systems failure, could result in unfavorable ripple effects in the financial markets and for JPMorganChase and its clients and customers, including:•delays or other disruptions in providing services, including the provision of liquidity or information to clients and customers•impairment of JPMorganChase's ability to execute transactions, including delays or failures in the confirmation or settlement of transactions or in obtaining access to funds or other assets required for settlement•the possibility that funds transfers, capital markets trades or other transactions are executed erroneously•financial losses, including due to loss-sharing requirements of CCPs, payment systems or other market infrastructures, or as possible restitution to clients and customers•higher operational costs associated with replacing services provided by a system that has experienced a failure or other disruption •limitations on JPMorganChase's ability to collect data needed for its business and operations•loss of confidence in the ability of JPMorganChase, or financial institutions generally, to protect against and withstand operational disruptions•dissatisfaction among JPMorganChase's clients or customers•significant exposure to litigation and regulatory fines, penalties or other sanctions, and •harm to JPMorganChase's reputation.If JPMorganChase's operational systems, or those of acquired businesses or of external parties on which •disruptions in operational systems or in the ability of systems to communicate with each other could be caused by failures in synchronization or encryption software, or degraded performance of microprocessors, and•attempts by third parties to block the use of key technology solutions by claiming that the use infringes on their intellectual property rights.JPMorganChase also depends on its ability to access and use the operational systems of third parties, including its custodians, vendors (such as those that provide data and cloud computing services, and security and technology services) and other market participants (such as clearing and payment systems, CCPs and securities exchanges). These external operational systems with which JPMorgan is connected, whether directly or indirectly, can be sources of operational risk to JPMorganChase. JPMorganChase may be exposed not only to a systems failure or cyber attack that may be experienced by a vendor or market infrastructure with which JPMorganChase is directly connected, but also to a systems breakdown or cyber attack involving another party to which such a vendor or infrastructure is connected. Similarly, retailers, payment systems and processors, data aggregators and other external parties with which JPMorganChase's customers do business can increase JPMorganChase's operational risk. This is particularly the case where activities of customers or other parties are beyond JPMorganChase's security and control systems, including through the use of the internet, cloud computing services, and personal smart phones and other mobile devices or services.If an external party obtains access to customer account data on JPMorganChase's systems, whether authorized or unauthorized, and that party misappropriates that data, this could result in negative outcomes for JPMorganChase and its clients and customers, including a heightened risk of fraudulent transactions using JPMorganChase's systems, losses from fraudulent transactions and reputational harm arising from the perception that JPMorganChase's systems may not be secure.As JPMorganChase's interconnectivity with clients, customers and other external parties continues to expand, JPMorganChase increasingly faces the risk of operational failure or cyber attacks with respect to the systems of those parties. Security breaches affecting JPMorganChase's clients or customers, or systems breakdowns or failures, security breaches or human error or misconduct affecting other external parties, may require JPMorganChase to take steps to protect the integrity of its own operational systems or to safeguard confidential information, including restricting the access of customers to their accounts. These actions can increase JPMorganChase's •disruptions in operational systems or in the ability of systems to communicate with each other could be caused by failures in synchronization or encryption software, or degraded performance of microprocessors, and •attempts by third parties to block the use of key technology solutions by claiming that the use infringes on their intellectual property rights. JPMorganChase also depends on its ability to access and use the operational systems of third parties, including its custodians, vendors (such as those that provide data and cloud computing services, and security and technology services) and other market participants (such as clearing and payment systems, CCPs and securities exchanges). These external operational systems with which JPMorgan is connected, whether directly or indirectly, can be sources of operational risk to JPMorganChase. JPMorganChase may be exposed not only to a systems failure or cyber attack that may be experienced by a vendor or market infrastructure with which JPMorganChase is directly connected, but also to a systems breakdown or cyber attack involving another party to which such a vendor or infrastructure is connected. Similarly, retailers, payment systems and processors, data aggregators and other external parties with which JPMorganChase's customers do business can increase JPMorganChase's operational risk. This is particularly the case where activities of customers or other parties are beyond JPMorganChase's security and control systems, including through the use of the internet, cloud computing services, and personal smart phones and other mobile devices or services. If an external party obtains access to customer account data on JPMorganChase's systems, whether authorized or unauthorized, and that party misappropriates that data, this could result in negative outcomes for JPMorganChase and its clients and customers, including a heightened risk of fraudulent transactions using JPMorganChase's systems, losses from fraudulent transactions and reputational harm arising from the perception that JPMorganChase's systems may not be secure. As JPMorganChase's interconnectivity with clients, customers and other external parties continues to expand, JPMorganChase increasingly faces the risk of operational failure or cyber attacks with respect to the systems of those parties. Security breaches affecting JPMorganChase's clients or customers, or systems breakdowns or failures, security breaches or human error or misconduct affecting other external parties, may require JPMorganChase to take steps to protect the integrity of its own operational systems or to safeguard confidential information, including restricting the access of customers to their accounts. These actions can increase JPMorganChase's operational costs and potentially diminish customer satisfaction and confidence in JPMorganChase.Furthermore, the widespread and expanding interconnectivity among financial institutions, clearing banks, CCPs, payments processors, financial technology companies, securities exchanges, clearing houses and other financial market infrastructures increases the risk that the disruption of an operational system involving one institution or entity, including due to a cyber attack, may cause industry-wide operational disruptions that could materially affect JPMorganChase's ability to conduct business. In addition, the risks associated with the disruption of an operational system of a third party could be exacerbated to the extent that the services provided by that system are used by a significant number or proportion of market participants.The ineffectiveness, failure or other disruption of operational systems upon which JPMorganChase depends, including due to a systems malfunction, cyber incident or other systems failure, could result in unfavorable ripple effects in the financial markets and for JPMorganChase and its clients and customers, including:•delays or other disruptions in providing services, including the provision of liquidity or information to clients and customers•impairment of JPMorganChase's ability to execute transactions, including delays or failures in the confirmation or settlement of transactions or in obtaining access to funds or other assets required for settlement•the possibility that funds transfers, capital markets trades or other transactions are executed erroneously•financial losses, including due to loss-sharing requirements of CCPs, payment systems or other market infrastructures, or as possible restitution to clients and customers•higher operational costs associated with replacing services provided by a system that has experienced a failure or other disruption •limitations on JPMorganChase's ability to collect data needed for its business and operations•loss of confidence in the ability of JPMorganChase, or financial institutions generally, to protect against and withstand operational disruptions•dissatisfaction among JPMorganChase's clients or customers•significant exposure to litigation and regulatory fines, penalties or other sanctions, and •harm to JPMorganChase's reputation.If JPMorganChase's operational systems, or those of acquired businesses or of external parties on which operational costs and potentially diminish customer satisfaction and confidence in JPMorganChase. Furthermore, the widespread and expanding interconnectivity among financial institutions, clearing banks, CCPs, payments processors, financial technology companies, securities exchanges, clearing houses and other financial market infrastructures increases the risk that the disruption of an operational system involving one institution or entity, including due to a cyber attack, may cause industry-wide operational disruptions that could materially affect JPMorganChase's ability to conduct business. In addition, the risks associated with the disruption of an operational system of a third party could be exacerbated to the extent that the services provided by that system are used by a significant number or proportion of market participants. The ineffectiveness, failure or other disruption of operational systems upon which JPMorganChase depends, including due to a systems malfunction, cyber incident or other systems failure, could result in unfavorable ripple effects in the financial markets and for JPMorganChase and its clients and customers, including: •delays or other disruptions in providing services, including the provision of liquidity or information to clients and customers •impairment of JPMorganChase's ability to execute transactions, including delays or failures in the confirmation or settlement of transactions or in obtaining access to funds or other assets required for settlement •the possibility that funds transfers, capital markets trades or other transactions are executed erroneously •financial losses, including due to loss-sharing requirements of CCPs, payment systems or other market infrastructures, or as possible restitution to clients and customers •higher operational costs associated with replacing services provided by a system that has experienced a failure or other disruption •limitations on JPMorganChase's ability to collect data needed for its business and operations •loss of confidence in the ability of JPMorganChase, or financial institutions generally, to protect against and withstand operational disruptions •dissatisfaction among JPMorganChase's clients or customers •significant exposure to litigation and regulatory fines, penalties or other sanctions, and •harm to JPMorganChase's reputation. If JPMorganChase's operational systems, or those of acquired businesses or of external parties on which 23 23 23 23 Part I Part I JPMorganChase's businesses depend, are unable to meet the requirements of JPMorganChase's businesses and operations or bank regulatory standards, or if they fail or have other significant shortcomings, JPMorganChase could be materially and adversely affected.A successful cyber attack affecting JPMorganChase could cause significant harm to JPMorganChase and its clients and customers.JPMorganChase experiences numerous cyber attacks on its computer systems, software, networks and other technology assets on a daily basis from various actors, including groups acting on behalf of hostile countries, cyber-criminals, "hacktivists" (i.e., individuals or groups that use technology to promote a political agenda or social change) and others. These cyber attacks can take many forms, including attempts to introduce computer viruses or malicious code, which are commonly referred to as "malware," into JPMorganChase's systems. These attacks are often designed to:•obtain unauthorized access to JPMorganChase's systems or to confidential information belonging to JPMorganChase or its clients, customers, counterparties or employees•manipulate data•destroy data or systems with the aim of rendering services unavailable•disrupt, sabotage or degrade service on JPMorganChase's systems•steal money, or•extort money through the use of so-called "ransomware."JPMorganChase also experiences:•distributed denial-of-service attacks intended to disrupt JPMorganChase's websites, including those that provide online banking and other services,•a higher volume and complexity of cyber attacks against the backdrop of heightened geopolitical tensions, and•a high volume of disruptions to internet-based services used by JPMorganChase that are provided by third parties.JPMorganChase has experienced security breaches due to cyber attacks in the past, and it is inevitable that additional breaches will occur in the future. Any such breach could result in serious and harmful consequences for JPMorganChase or its clients and customers.A principal reason that JPMorganChase cannot provide absolute security against cyber attacks is that it may not always be possible to anticipate, detect or recognize threats to JPMorganChase's systems, or to implement effective preventive measures against all breaches due to evolving risks, including:•the techniques used in cyber attacks evolve frequently and increase in sophistication, and therefore may not be recognized until launched or may go undetected for extended periods•cyber attacks can originate from a wide variety of sources, including JPMorganChase's own employees, cyber-criminals, hacktivists, groups linked to terrorist organizations or hostile nation-states that can sustain malicious activities for extended periods, or third parties whose objective is to disrupt the operations of financial institutions more generally•JPMorganChase does not have control over the cybersecurity of the systems of the large number of clients, customers, counterparties and third-party service providers with which it does business, and•it is possible that a third party, after establishing a foothold on an internal network without being detected, may gain access to other networks and systems.The risk of a security breach due to a cyber attack could increase in the future due to factors such as: •JPMorganChase's ongoing expansion of its digital banking and other internet-based product offerings and its internal use of internet-based products and applications, including those that use cloud computing services•advances in artificial intelligence, such as the use of machine learning, generative artificial intelligence and quantum computing by malicious actors to develop more advanced social engineering attacks, including targeted phishing attacks•the inability to maintain the security of information transmitted by JPMorganChase due to advances in quantum computing that may counteract or nullify existing information protections, and•the acquisition and integration of new businesses.In addition, a third party could misappropriate confidential information obtained by intercepting signals or communications from mobile devices used by JPMorganChase's employees.The dynamic nature of the cyber threat landscape, including the pace of innovation and increased threat of novel attack methods, necessitates ongoing investment in, as well as enhancement and adaptation of, cybersecurity controls, including the adoption of enhanced security measures in certain jurisdictions. Failure to discover or address emerging threats, known vulnerabilities or shortcomings in cybersecurity controls, or to prioritize or complete enhancements to address them, in each case in a timely manner, may leave JPMorganChase vulnerable to cyber attacks, potentially resulting in data breaches, financial losses, JPMorganChase's businesses depend, are unable to meet the requirements of JPMorganChase's businesses and operations or bank regulatory standards, or if they fail or have other significant shortcomings, JPMorganChase could be materially and adversely affected.A successful cyber attack affecting JPMorganChase could cause significant harm to JPMorganChase and its clients and customers.JPMorganChase experiences numerous cyber attacks on its computer systems, software, networks and other technology assets on a daily basis from various actors, including groups acting on behalf of hostile countries, cyber-criminals, "hacktivists" (i.e., individuals or groups that use technology to promote a political agenda or social change) and others. These cyber attacks can take many forms, including attempts to introduce computer viruses or malicious code, which are commonly referred to as "malware," into JPMorganChase's systems. These attacks are often designed to:•obtain unauthorized access to JPMorganChase's systems or to confidential information belonging to JPMorganChase or its clients, customers, counterparties or employees•manipulate data•destroy data or systems with the aim of rendering services unavailable•disrupt, sabotage or degrade service on JPMorganChase's systems•steal money, or•extort money through the use of so-called "ransomware."JPMorganChase also experiences:•distributed denial-of-service attacks intended to disrupt JPMorganChase's websites, including those that provide online banking and other services,•a higher volume and complexity of cyber attacks against the backdrop of heightened geopolitical tensions, and•a high volume of disruptions to internet-based services used by JPMorganChase that are provided by third parties.JPMorganChase has experienced security breaches due to cyber attacks in the past, and it is inevitable that additional breaches will occur in the future. Any such breach could result in serious and harmful consequences for JPMorganChase or its clients and customers.A principal reason that JPMorganChase cannot provide absolute security against cyber attacks is that it may not always be possible to anticipate, detect or recognize threats to JPMorganChase's systems, or to JPMorganChase's businesses depend, are unable to meet the requirements of JPMorganChase's businesses and operations or bank regulatory standards, or if they fail or have other significant shortcomings, JPMorganChase could be materially and adversely affected. **Current (2026):** If the operational systems on which JPMorganChase's businesses depend, including those of acquired businesses and external parties, are unable to meet JPMorganChase's operational requirements or bank regulatory standards, or if they fail or have other significant shortcomings, JPMorganChase could be materially and adversely affected. JPMorganChase's businesses rely on its operational systems to process, record, monitor and report large amounts of information continuously, accurately, securely, and in a timely manner. These operational systems include financial, accounting, transaction execution, reporting and settlement, data processing and other systems, as well as supporting devices. The effective functioning of these operational systems depends on a variety of factors, including JPMorganChase's ability to: •properly design, install, maintain, and train its employees on the use of its systems•populate its systems with accurate, complete, up-to-date and uncorrupted information•upgrade its systems on a regular and timely basis in line with technological advancements and evolving security requirements•maintain the security and operational continuity of its systems, including by carefully managing any changes introduced to its systems•prevent unauthorized access and the misuse of access to its systems, and •adhere to applicable law relating to its systems, particularly in regions where JPMorganChase may face a heightened risk of malicious activity.JPMorganChase has experienced and expects that it will continue to experience failures and disruptions in the stability of its operational systems, including:•degraded performance of data processing systems•data quality issues•disruptions of network connectivity•malfunctioning software•disruptions in its ability to access and use the operational systems of third parties, and•interruptions in service from third-party service providers. These incidents have resulted in various negative effects for customers, including:•the inability to access account information or transact through ATM, internet or mobile channels•the exfiltration of customer personal data•the recording of duplicative transactions, and •extended delays for call center services. There can be no assurance that these and other types of operational failures or disruptions will not occur in the future.JPMorganChase's ability to effectively manage the stability of its operational systems and infrastructure could be hindered by many factors, any of which could have a negative impact on JPMorganChase and its clients, customers and counterparties, including:•challenges in maintaining and upgrading systems and infrastructure as the speed, frequency, volume, interconnectivity and complexity of transactions and other information flows continue to increase•attempts by third parties to defraud JPMorganChase and its clients and customers, which continue to increase, evolve and become more complex, as well as increased volumes of these attempts during periods of market disruption or economic uncertainty •properly design, install, maintain, and train its employees on the use of its systems •populate its systems with accurate, complete, up-to-date and uncorrupted information •upgrade its systems on a regular and timely basis in line with technological advancements and evolving security requirements •maintain the security and operational continuity of its systems, including by carefully managing any changes introduced to its systems •prevent unauthorized access and the misuse of access to its systems, and •adhere to applicable law relating to its systems, particularly in regions where JPMorganChase may face a heightened risk of malicious activity. JPMorganChase has experienced and expects that it will continue to experience failures and disruptions in the stability of its operational systems, including: •degraded performance of data processing systems •data quality issues •disruptions of network connectivity •malfunctioning software •disruptions in its ability to access and use the operational systems of third parties, and •interruptions in service from third-party service providers. These incidents have resulted in various negative effects for customers, including: •the inability to access account information or transact through ATM, internet or mobile channels •the exfiltration of customer personal data •the recording of duplicative transactions, and •extended delays for call center services. There can be no assurance that these and other types of operational failures or disruptions will not occur in the future. JPMorganChase's ability to effectively manage the stability of its operational systems and infrastructure could be hindered by many factors, any of which could have a negative impact on JPMorganChase and its clients, customers and counterparties, including: •challenges in maintaining and upgrading systems and infrastructure as the speed, frequency, volume, interconnectivity and complexity of transactions and other information flows continue to increase •attempts by third parties to defraud JPMorganChase and its clients and customers, which continue to increase, evolve and become more complex, as well as increased volumes of these attempts during periods of market disruption or economic uncertainty 20 20 20 20 •errors made by JPMorganChase or another market participant, whether inadvertent or malicious, which could cause widespread system disruption•weaknesses or shortcomings in operational systems that may not be detected in a timely manner•isolated or seemingly insignificant errors in operational systems that could compound, or migrate to other systems, becoming larger issues •failures in synchronization or encryption software, or degraded performance of microprocessors, which could cause disruptions in operational systems or in the ability of systems to communicate with each other, and•third parties that may try to block the use of key technology solutions by claiming that the use infringes on their intellectual property rights.JPMorganChase also depends on its ability to access and use the operational systems of third parties, including:•custodians•vendors, including providers of security, technology and data and cloud computing services, and•other market participants, such as clearing and payment systems, CCPs and securities exchanges. The inaccessibility, failure or other disruption of an internal or external operational system upon which JPMorganChase's businesses depend could adversely affect JPMorganChase and its clients and customers, and result in unfavorable ripple effects in the financial markets, including: •delays or other disruptions in providing services, including the provision of liquidity or information to clients and customers •impairment of JPMorganChase's ability to execute transactions, including delays or failures in the confirmation or settlement of transactions or in obtaining access to funds or other assets required for settlement •the erroneous execution of funds transfers, capital markets trades or other transactions•financial losses, including due to loss-sharing requirements of CCPs, payment systems or other market infrastructures, or as possible restitution to clients and customers•higher operational costs associated with replacing services provided by a system that has experienced a failure or other disruption•limitations on JPMorganChase's ability to collect data needed for its business and operations•loss of confidence in the ability of JPMorganChase, or financial institutions generally, to protect against and withstand operational disruptions•significant exposure to litigation and penalties, and•reputational harm.JPMorganChase's interconnectedness with clients, customers and other external parties could be a source of significant operational risk.JPMorganChase could be exposed to operational risk if it is unable to access and use external operational systems, including during failures or cyber attacks related to those systems or other third-party systems. Similarly, retailers, payment systems and processors, data aggregators, and other external parties with which JPMorganChase's customers do business could increase JPMorganChase's operational risk. This is particularly the case where activities of customers or other parties are beyond JPMorganChase's security and control systems, including through the use of the internet, cloud computing services, and mobile devices or services.JPMorganChase's interconnectivity with clients, customers and other external parties continues to expand, which increases the risk of failure or cyber attacks with respect to the systems of those parties. Any systems failure, security breach, or human error or misconduct that affects clients, customers or external parties could require JPMorganChase to take steps to protect the integrity of its own operational systems or to safeguard confidential information, including restricting the access of its customers to their accounts. These actions could increase JPMorganChase's operational costs and potentially diminish customer satisfaction and confidence in JPMorganChase.Furthermore, the widespread interconnectivity among financial institutions, clearing banks, CCPs, payments processors, financial technology companies, securities exchanges, clearing houses, financial messaging networks and other financial market infrastructures increases the risk that the disruption of an operational system involving one entity could cause industry-wide operational disruptions that could materially affect JPMorganChase's ability to conduct business. In addition, the risks associated with the disruption of an operational system of a third-party could be exacerbated if the services provided by that system are widely used by market participants.A successful cyber attack could cause significant harm to JPMorganChase and its clients and customers.JPMorganChase experiences numerous cyber attacks on its computer systems, software, networks and other technology assets. Cyber attacks could take many forms, and may be designed to:•introduce computer viruses or malicious code (i.e., "malware") into JPMorganChase's systems.•obtain unauthorized access to JPMorganChase's systems or to confidential information belonging to •errors made by JPMorganChase or another market participant, whether inadvertent or malicious, which could cause widespread system disruption•weaknesses or shortcomings in operational systems that may not be detected in a timely manner•isolated or seemingly insignificant errors in operational systems that could compound, or migrate to other systems, becoming larger issues •failures in synchronization or encryption software, or degraded performance of microprocessors, which could cause disruptions in operational systems or in the ability of systems to communicate with each other, and•third parties that may try to block the use of key technology solutions by claiming that the use infringes on their intellectual property rights.JPMorganChase also depends on its ability to access and use the operational systems of third parties, including:•custodians•vendors, including providers of security, technology and data and cloud computing services, and•other market participants, such as clearing and payment systems, CCPs and securities exchanges. The inaccessibility, failure or other disruption of an internal or external operational system upon which JPMorganChase's businesses depend could adversely affect JPMorganChase and its clients and customers, and result in unfavorable ripple effects in the financial markets, including: •delays or other disruptions in providing services, including the provision of liquidity or information to clients and customers •impairment of JPMorganChase's ability to execute transactions, including delays or failures in the confirmation or settlement of transactions or in obtaining access to funds or other assets required for settlement •the erroneous execution of funds transfers, capital markets trades or other transactions•financial losses, including due to loss-sharing requirements of CCPs, payment systems or other market infrastructures, or as possible restitution to clients and customers•higher operational costs associated with replacing services provided by a system that has experienced a failure or other disruption•limitations on JPMorganChase's ability to collect data needed for its business and operations•loss of confidence in the ability of JPMorganChase, or financial institutions generally, to protect against and withstand operational disruptions•significant exposure to litigation and penalties, and •errors made by JPMorganChase or another market participant, whether inadvertent or malicious, which could cause widespread system disruption •weaknesses or shortcomings in operational systems that may not be detected in a timely manner •isolated or seemingly insignificant errors in operational systems that could compound, or migrate to other systems, becoming larger issues •failures in synchronization or encryption software, or degraded performance of microprocessors, which could cause disruptions in operational systems or in the ability of systems to communicate with each other, and •third parties that may try to block the use of key technology solutions by claiming that the use infringes on their intellectual property rights. JPMorganChase also depends on its ability to access and use the operational systems of third parties, including: •custodians •vendors, including providers of security, technology and data and cloud computing services, and •other market participants, such as clearing and payment systems, CCPs and securities exchanges. The inaccessibility, failure or other disruption of an internal or external operational system upon which JPMorganChase's businesses depend could adversely affect JPMorganChase and its clients and customers, and result in unfavorable ripple effects in the financial markets, including: •delays or other disruptions in providing services, including the provision of liquidity or information to clients and customers •impairment of JPMorganChase's ability to execute transactions, including delays or failures in the confirmation or settlement of transactions or in obtaining access to funds or other assets required for settlement •the erroneous execution of funds transfers, capital markets trades or other transactions •financial losses, including due to loss-sharing requirements of CCPs, payment systems or other market infrastructures, or as possible restitution to clients and customers •higher operational costs associated with replacing services provided by a system that has experienced a failure or other disruption •limitations on JPMorganChase's ability to collect data needed for its business and operations •loss of confidence in the ability of JPMorganChase, or financial institutions generally, to protect against and withstand operational disruptions •significant exposure to litigation and penalties, and •reputational harm.JPMorganChase's interconnectedness with clients, customers and other external parties could be a source of significant operational risk.JPMorganChase could be exposed to operational risk if it is unable to access and use external operational systems, including during failures or cyber attacks related to those systems or other third-party systems. Similarly, retailers, payment systems and processors, data aggregators, and other external parties with which JPMorganChase's customers do business could increase JPMorganChase's operational risk. This is particularly the case where activities of customers or other parties are beyond JPMorganChase's security and control systems, including through the use of the internet, cloud computing services, and mobile devices or services.JPMorganChase's interconnectivity with clients, customers and other external parties continues to expand, which increases the risk of failure or cyber attacks with respect to the systems of those parties. Any systems failure, security breach, or human error or misconduct that affects clients, customers or external parties could require JPMorganChase to take steps to protect the integrity of its own operational systems or to safeguard confidential information, including restricting the access of its customers to their accounts. These actions could increase JPMorganChase's operational costs and potentially diminish customer satisfaction and confidence in JPMorganChase.Furthermore, the widespread interconnectivity among financial institutions, clearing banks, CCPs, payments processors, financial technology companies, securities exchanges, clearing houses, financial messaging networks and other financial market infrastructures increases the risk that the disruption of an operational system involving one entity could cause industry-wide operational disruptions that could materially affect JPMorganChase's ability to conduct business. In addition, the risks associated with the disruption of an operational system of a third-party could be exacerbated if the services provided by that system are widely used by market participants.A successful cyber attack could cause significant harm to JPMorganChase and its clients and customers.JPMorganChase experiences numerous cyber attacks on its computer systems, software, networks and other technology assets. Cyber attacks could take many forms, and may be designed to:•introduce computer viruses or malicious code (i.e., "malware") into JPMorganChase's systems.•obtain unauthorized access to JPMorganChase's systems or to confidential information belonging to •reputational harm. --- ## Modified Risk: Defined benefit pension and OPEB plans, net change **Key changes:** - Updated: "During the year ended December 31, 2025, the Firm reclassified a net pre-tax gain of $7 million to other income/expense, of which $14 million gain related to net investment hedges and $(7) million loss related to cumulative translation adjustments." - Removed: "During the year ended December 31, 2022, the Firm reclassified a net pre-tax loss of $(8) million." - Updated: "JPMorgan Chase & Co./2025 Form 10-K287 JPMorgan Chase & Co./2025 Form 10-K287 JPMorgan Chase & Co./2025 Form 10-K287 JPMorgan Chase & Co./2025 Form 10-K 287" **Prior (2025):** (a)The pre-tax amount is reported in Investment securities gains/(losses) in the Consolidated statements of income. (b)Reclassifications of pre-tax realized gains/(losses) on translation adjustments and related hedges are reported in other income/expense in the Consolidated statements of income. During the year ended December 31, 2024, the Firm reclassified a net pre-tax gain of $7 million to other income/expense, of which $89 million gain related to net investment hedges and $(82) million loss related to cumulative translation adjustments. During the year ended December 31, 2023, the Firm reclassified a net pre-tax loss of $(3) million. During the year ended December 31, 2022, the Firm reclassified a net pre-tax loss of $(8) million. (c)Represents changes in fair value of cross-currency swaps attributable to changes in cross-currency basis spreads, which are excluded from the assessment of hedge effectiveness and recorded in other comprehensive income. The initial cost of cross-currency basis spreads is recognized in earnings as part of the accrual of interest on the cross-currency swaps. (d)The pre-tax amounts are primarily recorded in noninterest revenue, net interest income and compensation expense in the Consolidated statements of income. (e)During the year ended December 31, 2022, a remeasurement of the Firm's U.S. principal defined benefit plan in the third quarter, was required as a result of a pension settlement. The remeasurement resulted in a net decrease of $1.4 billion in pre-tax AOCI. JPMorgan Chase & Co./2024 Form 10-K295 JPMorgan Chase & Co./2024 Form 10-K295 JPMorgan Chase & Co./2024 Form 10-K295 JPMorgan Chase & Co./2024 Form 10-K 295 **Current (2026):** (a)The pre-tax amount is reported in Investment securities gains/(losses) in the Consolidated statements of income. (b)Reclassifications of pre-tax realized gains/(losses) on translation adjustments and related hedges are reported in other income/expense in the Consolidated statements of income. During the year ended December 31, 2025, the Firm reclassified a net pre-tax gain of $7 million to other income/expense, of which $14 million gain related to net investment hedges and $(7) million loss related to cumulative translation adjustments. During the year ended December 31, 2024, the Firm reclassified a net pre-tax gain of $7 million. During the year ended December 31, 2023, the Firm reclassified a net pre-tax loss of $(3) million. (c)Represents changes in fair value of cross-currency swaps attributable to changes in cross-currency basis spreads, which are excluded from the assessment of hedge effectiveness and recorded in other comprehensive income. The initial cost of cross-currency basis spreads is recognized in earnings as part of the accrual of interest on the cross-currency swaps. (d)The pre-tax amounts are primarily recorded in noninterest revenue, net interest income and compensation expense in the Consolidated statements of income. JPMorgan Chase & Co./2025 Form 10-K287 JPMorgan Chase & Co./2025 Form 10-K287 JPMorgan Chase & Co./2025 Form 10-K287 JPMorgan Chase & Co./2025 Form 10-K 287 --- ## Modified Risk: Securitization activity **Key changes:** - Updated: "The following table provides information related to the Firm's securitization activities for the years ended December 31, 2025, 2024 and 2023, related to assets held in Firm-sponsored securitization entities that were not consolidated by the Firm, and where sale accounting was achieved at the time of the securitization." **Prior (2025):** The following table provides information related to the Firm's securitization activities for the years ended December 31, 2024, 2023 and 2022, related to assets held in Firm-sponsored securitization entities that were not consolidated by the Firm, and where sale accounting was achieved at the time of the securitization. 202420232022Year ended December 31,(in millions)Residential mortgage(d)Commercial and other(e)Residential mortgage(d)Commercial and other(e)Residential mortgage(d)Commercial and other(e)Principal securitized$19,988 $17,683 $7,678 $3,901 $10,218 $9,036 All cash flows during the period:(a)Proceeds received from loan sales as financial instruments(b)(c)$19,870 $17,346 $7,251 $3,896 $9,783 $8,921 Servicing fees collected35 35 24 5 62 2 Cash flows received on interests405 1,303 325 425 489 285 Residential mortgage(d) Commercial and other(e) Residential mortgage(d) Commercial and other(e) Residential mortgage(d) Commercial and other(e) **Current (2026):** The following table provides information related to the Firm's securitization activities for the years ended December 31, 2025, 2024 and 2023, related to assets held in Firm-sponsored securitization entities that were not consolidated by the Firm, and where sale accounting was achieved at the time of the securitization. 202520242023Year ended December 31,(in millions)Residential mortgage(d)Commercial and other(e)Residential mortgage(d)Commercial and other(e)Residential mortgage(d)Commercial and other(e)Principal securitized$26,361 $16,059 $19,988 $17,683 $7,678 $3,901 All cash flows during the period:(a)Proceeds received from loan sales as financial instruments(b)(c)$27,136 $15,780 $19,870 $17,346 $7,251 $3,896 Servicing fees collected34 41 35 35 24 5 Cash flows received on interests834 1,376 405 1,303 325 425 Residential mortgage(d) Commercial and other(e) Residential mortgage(d) Commercial and other(e) Residential mortgage(d) Commercial and other(e) --- ## Modified Risk: Capital planning and stress testing **Key changes:** - Updated: "The Federal JPMorgan Chase & Co./2025 Form 10-K89 JPMorgan Chase & Co./2025 Form 10-K89 JPMorgan Chase & Co./2025 Form 10-K89 JPMorgan Chase & Co./2025 Form 10-K 89" **Prior (2025):** Comprehensive Capital Analysis and Review The Federal Reserve requires the Firm, as a large Bank Holding Company ("BHC"), to submit at least annually a capital plan that has been reviewed and approved by the Board of Directors. The Federal Reserve uses Comprehensive Capital Analysis and Review ("CCAR") and other stress testing processes to assess whether large BHCs, such as the Firm, have sufficient capital during periods of economic and financial stress, and have robust, forward-looking capital assessment and planning processes in place that address each BHC's unique risks to enable it to absorb losses under certain stress scenarios. Through CCAR, the Federal Reserve evaluates each BHC's capital adequacy and internal capital adequacy assessment processes ("ICAAP"), as well as its plans to make capital distributions, such as dividend payments or stock repurchases. The Federal JPMorgan Chase & Co./2024 Form 10-K97 JPMorgan Chase & Co./2024 Form 10-K97 JPMorgan Chase & Co./2024 Form 10-K97 JPMorgan Chase & Co./2024 Form 10-K 97 **Current (2026):** Comprehensive Capital Analysis and Review The Federal Reserve requires the Firm, as a large Bank Holding Company ("BHC"), to submit at least annually a capital plan that has been reviewed and approved by the Board of Directors. The Federal Reserve uses Comprehensive Capital Analysis and Review ("CCAR") and other stress testing processes to assess whether large BHCs, such as the Firm, have sufficient capital during periods of economic and financial stress, and have robust, forward-looking capital assessment and planning processes in place that address each BHC's unique risks to enable it to absorb losses under certain stress scenarios. Through CCAR, the Federal Reserve evaluates each BHC's capital adequacy and internal capital adequacy assessment processes ("ICAAP"), as well as its plans to make capital distributions, such as dividend payments or stock repurchases. The Federal JPMorgan Chase & Co./2025 Form 10-K89 JPMorgan Chase & Co./2025 Form 10-K89 JPMorgan Chase & Co./2025 Form 10-K89 JPMorgan Chase & Co./2025 Form 10-K 89 --- ## Modified Risk: Total common stockholders' equity **Key changes:** - Updated: "96JPMorgan Chase & Co./2025 Form 10-K 96JPMorgan Chase & Co./2025 Form 10-K 96JPMorgan Chase & Co./2025 Form 10-K 96 JPMorgan Chase & Co./2025 Form 10-K Capital actionsCommon stock dividends The Firm's common stock dividends are planned as part of the Capital Management governance framework in line with the Firm's capital management objectives.On December 9, 2025, the Firm announced that its Board of Directors had declared a quarterly common stock dividend of $1.50 per share, payable on January 31, 2026." - Updated: "The Firm's common share repurchases may be suspended by management at any time; and may be executed through open market purchases or privately negotiated transactions, or utilizing Rule 10b5-1 plans, which are written trading plans that the Firm may enter into from time to time under Rule 10b5-1 of the Securities Exchange Act of 1934 and which allow the Firm to repurchase its common shares during periods when it may otherwise not be repurchasing common shares - for example, during internal trading blackout periods.Refer to Capital planning and stress testing on pages 89-90 for additional information.Refer to Part II, Item 5: Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities on page 33 of this 2025 Form 10-K for additional information regarding repurchases of the Firm's equity securities.Preferred stock Preferred stock dividends were $1.1 billion, $1.3 billion, and $1.5 billion for the years ended December 31, 2025, 2024, and 2023, respectively.During the year ended December 31, 2025, the Firm issued and redeemed certain series of non-cumulative preferred stock." **Prior (2025):** 104JPMorgan Chase & Co./2024 Form 10-K 104JPMorgan Chase & Co./2024 Form 10-K 104JPMorgan Chase & Co./2024 Form 10-K 104 JPMorgan Chase & Co./2024 Form 10-K Capital actionsCommon stock dividends The Firm's common stock dividends are planned as part of the Capital Management governance framework in line with the Firm's capital management objectives.On December 9, 2024, the Firm announced that its Board of Directors had declared a quarterly common stock dividend of $1.25 per share, payable on January 31, 2025. The Firm's dividends are subject to approval by the Board of Directors on a quarterly basis.Refer to Note 21 and Note 26 for information regarding dividend restrictions.The following table shows the common dividend payout ratio based on net income applicable to common equity.Year ended December 31,202420232022Common dividend payout ratio24 %25 %33 %Common stockOn June 28, 2024, the Firm announced that its Board of Directors had authorized a new $30 billion common share repurchase program, effective July 1, 2024. Through June 30, 2024, the Firm was authorized to purchase up to $30 billion of common shares under its previously-approved common share repurchase program that was announced on April 13, 2022.The following table sets forth the Firm's repurchases of common stock for the years ended December 31, 2024, 2023 and 2022. Year ended December 31, (in millions)202420232022(b)Total number of shares of common stock repurchased91.7 69.5 23.1 Aggregate purchase price of common stock repurchases(a)$18,841 $9,898 $3,122 (a)Excludes excise tax and commissions. As part of the Inflation Reduction Act of 2022, a 1% excise tax is imposed on net share repurchases commencing January 1, 2023.(b)In the second half of 2022, the Firm temporarily suspended share repurchases, which it resumed in the first quarter of 2023 under its common share repurchase program.The Board of Directors' authorization to repurchase common shares is utilized at management's discretion. The $30 billion common share repurchase program approved by the Board of Directors does not establish specific price targets or timetables. Management determines the amount and timing of common share repurchases based on various factors, including market conditions; legal and regulatory considerations affecting the amount and timing of repurchase activity; the Firm's capital position (taking into account goodwill and intangibles); organic capital generation; current and proposed future capital requirements; and other investment opportunities. The amount of common shares that the Firm repurchases in any period may be substantially more or less than the amounts estimated or actually repurchased in prior periods, reflecting the dynamic nature of the decision-making process. The Firm's common share repurchases may be suspended by management at any time; and may be executed through open market purchases or privately negotiated transactions, or utilizing Rule 10b5-1 plans, which are written trading plans that the Firm may enter into from time to time under Rule 10b5-1 of the Securities Exchange Act of 1934 and which allow the Firm to repurchase its common shares during periods when it may otherwise not be repurchasing common shares - for example, during internal trading blackout periods.Refer to capital planning and stress testing on pages 97-98 for additional information.Refer to Part II, Item 5: Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities on page 39 of this 2024 Form 10-K for additional information regarding repurchases of the Firm's equity securities.Preferred stock Preferred stock dividends were $1.3 billion, $1.5 billion, and $1.6 billion for the years ended December 31, 2024, 2023, and 2022, respectively.During the year ended and subsequent to December 31, 2024, the Firm issued and redeemed certain series of non-cumulative preferred stock. Refer to Note 21 for additional information on the Firm's preferred stock, including the issuance and redemption of preferred stock.Subordinated Debt Refer to Long-term funding on page 114 and Note 20 for additional information on the Firm's subordinated debt. Capital actionsCommon stock dividends The Firm's common stock dividends are planned as part of the Capital Management governance framework in line with the Firm's capital management objectives.On December 9, 2024, the Firm announced that its Board of Directors had declared a quarterly common stock dividend of $1.25 per share, payable on January 31, 2025. The Firm's dividends are subject to approval by the Board of Directors on a quarterly basis.Refer to Note 21 and Note 26 for information regarding dividend restrictions.The following table shows the common dividend payout ratio based on net income applicable to common equity.Year ended December 31,202420232022Common dividend payout ratio24 %25 %33 %Common stockOn June 28, 2024, the Firm announced that its Board of Directors had authorized a new $30 billion common share repurchase program, effective July 1, 2024. Through June 30, 2024, the Firm was authorized to purchase up to $30 billion of common shares under its previously-approved common share repurchase program that was announced on April 13, 2022.The following table sets forth the Firm's repurchases of common stock for the years ended December 31, 2024, 2023 and 2022. Year ended December 31, (in millions)202420232022(b)Total number of shares of common stock repurchased91.7 69.5 23.1 Aggregate purchase price of common stock repurchases(a)$18,841 $9,898 $3,122 (a)Excludes excise tax and commissions. As part of the Inflation Reduction Act of 2022, a 1% excise tax is imposed on net share repurchases commencing January 1, 2023.(b)In the second half of 2022, the Firm temporarily suspended share repurchases, which it resumed in the first quarter of 2023 under its common share repurchase program. **Current (2026):** 96JPMorgan Chase & Co./2025 Form 10-K 96JPMorgan Chase & Co./2025 Form 10-K 96JPMorgan Chase & Co./2025 Form 10-K 96 JPMorgan Chase & Co./2025 Form 10-K Capital actionsCommon stock dividends The Firm's common stock dividends are planned as part of the Capital Management governance framework in line with the Firm's capital management objectives.On December 9, 2025, the Firm announced that its Board of Directors had declared a quarterly common stock dividend of $1.50 per share, payable on January 31, 2026. The Firm's dividends are subject to approval by the Board of Directors on a quarterly basis.Refer to Note 21 and Note 26 for information regarding dividend restrictions.The following table shows the common dividend payout ratio based on net income applicable to common equity.Year ended December 31,202520242023Common dividend payout ratio29 %24 %25 %Common stock repurchasesOn July 1, 2025, the Firm announced that its Board of Directors had authorized a new $50 billion common share repurchase program, effective July 1, 2025. Through June 30, 2025, the Firm was authorized to purchase up to $30 billion of common shares under its previously-approved common share repurchase program that was announced on June 28, 2024. The following table sets forth the Firm's repurchases of common stock for the years ended December 31, 2025, 2024 and 2023. Year ended December 31, (in millions)202520242023Total number of shares of common stock repurchased114.4 91.7 69.5 Aggregate purchase price of common stock repurchases(a)$31,640 $18,841 $9,898 (a)Excludes excise tax and commissions.The Board of Directors' authorization to repurchase common shares is utilized at management's discretion. The common share repurchase program approved by the Board of Directors does not establish specific price targets or timetables. Management determines the amount and timing of common share repurchases based on various factors, including market conditions; legal and regulatory considerations affecting the amount and timing of repurchase activity; the Firm's capital position (taking into account goodwill and intangibles); organic capital generation; current and proposed future capital requirements; and other investment opportunities. The amount of common shares that the Firm repurchases in any period may be substantially more or less than the amounts estimated or actually repurchased in prior periods, reflecting the dynamic nature of the decision-making process. The Firm's common share repurchases may be suspended by management at any time; and may be executed through open market purchases or privately negotiated transactions, or utilizing Rule 10b5-1 plans, which are written trading plans that the Firm may enter into from time to time under Rule 10b5-1 of the Securities Exchange Act of 1934 and which allow the Firm to repurchase its common shares during periods when it may otherwise not be repurchasing common shares - for example, during internal trading blackout periods.Refer to Capital planning and stress testing on pages 89-90 for additional information.Refer to Part II, Item 5: Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities on page 33 of this 2025 Form 10-K for additional information regarding repurchases of the Firm's equity securities.Preferred stock Preferred stock dividends were $1.1 billion, $1.3 billion, and $1.5 billion for the years ended December 31, 2025, 2024, and 2023, respectively.During the year ended December 31, 2025, the Firm issued and redeemed certain series of non-cumulative preferred stock. Refer to Note 21 for additional information on the Firm's preferred stock, including the issuance and redemption of preferred stock. Capital actionsCommon stock dividends The Firm's common stock dividends are planned as part of the Capital Management governance framework in line with the Firm's capital management objectives.On December 9, 2025, the Firm announced that its Board of Directors had declared a quarterly common stock dividend of $1.50 per share, payable on January 31, 2026. The Firm's dividends are subject to approval by the Board of Directors on a quarterly basis.Refer to Note 21 and Note 26 for information regarding dividend restrictions.The following table shows the common dividend payout ratio based on net income applicable to common equity.Year ended December 31,202520242023Common dividend payout ratio29 %24 %25 %Common stock repurchasesOn July 1, 2025, the Firm announced that its Board of Directors had authorized a new $50 billion common share repurchase program, effective July 1, 2025. Through June 30, 2025, the Firm was authorized to purchase up to $30 billion of common shares under its previously-approved common share repurchase program that was announced on June 28, 2024. The following table sets forth the Firm's repurchases of common stock for the years ended December 31, 2025, 2024 and 2023. Year ended December 31, (in millions)202520242023Total number of shares of common stock repurchased114.4 91.7 69.5 Aggregate purchase price of common stock repurchases(a)$31,640 $18,841 $9,898 (a)Excludes excise tax and commissions. --- ## Modified Risk: Firm-sponsored mortgage and other securitization trusts **Key changes:** - Updated: "Refer to page 271 of this Note for information on the securitization-related loan delinquencies and liquidation losses." **Prior (2025):** The Firm securitizes (or has securitized) originated and purchased residential mortgages, commercial mortgages and other consumer loans primarily in its CCB and CIB businesses. Depending on the particular transaction, as well as the respective business involved, the Firm may act as the servicer of the loans and/or retain certain beneficial interests in the securitization trusts. The following tables present the total unpaid principal amount of assets held in Firm-sponsored private-label securitization entities, including those in which the Firm has continuing involvement, and those that are consolidated by the Firm. Continuing involvement includes servicing the loans, holding senior interests or subordinated interests (including amounts required to be held pursuant to credit risk retention rules), recourse or guarantee arrangements, and derivative contracts. In certain instances, the Firm's only continuing involvement is servicing the loans. The Firm's maximum loss exposure from retained and purchased interests is the carrying value of these interests. Refer to page 279 of this Note for information on the securitization-related loan delinquencies and liquidation losses. Principal amount outstandingJPMorganChase interest in securitized assets in nonconsolidated VIEs(c)(d)(e)December 31, 2024(in millions)Total assets held by securitization VIEsAssets held in consolidated securitization VIEsAssets held in nonconsolidated securitization VIEs with continuing involvementTrading assets Investment securitiesOther financial assetsTotal interests held by JPMorganChaseSecuritization-related(a)Residential mortgage:Prime/Alt-A and option ARMs$71,085 $615 $50,846 $613 $1,850 $614 $3,077 Subprime8,824 - 1,847 44 19 - 63 Commercial and other(b)186,293 243 125,510 530 5,768 1,074 7,372 Total$266,202 $858 $178,203 $1,187 $7,637 $1,688 $10,512 JPMorganChase interest in securitized assets in nonconsolidated VIEs(c)(d)(e) **Current (2026):** The Firm securitizes (or has securitized) originated and purchased residential mortgages, commercial mortgages and other consumer loans primarily in its CCB and CIB businesses. Depending on the particular transaction, as well as the respective business involved, the Firm may act as the servicer of the loans and/or retain certain beneficial interests in the securitization trusts. The following tables present the total unpaid principal amount of assets held in Firm-sponsored private-label securitization entities, including those in which the Firm has continuing involvement, and those that are consolidated by the Firm. Continuing involvement includes servicing the loans, holding senior interests or subordinated interests (including amounts required to be held pursuant to credit risk retention rules), recourse or guarantee arrangements, and derivative contracts. In certain instances, the Firm's only continuing involvement is servicing the loans. The Firm's maximum loss exposure from retained and purchased interests is the carrying value of these interests. Refer to page 271 of this Note for information on the securitization-related loan delinquencies and liquidation losses. Principal amount outstandingJPMorganChase interest in securitized assets in nonconsolidated VIEs(c)(d)(e)December 31, 2025(in millions)Total assets held by securitization VIEsAssets held in consolidated securitization VIEsAssets held in nonconsolidated securitization VIEs with continuing involvementTrading assets Investment securitiesOther financial assetsTotal interests held by JPMorganChaseSecuritization-related(a)Residential mortgage:Prime/Alt-A and option ARMs$83,442 $548 $58,525 $707 $1,799 $1,526 $4,032 Subprime10,690 - 2,766 100 12 - 112 Commercial and other(b)212,555 170 138,986 1,222 5,285 823 7,330 Total$306,687 $718 $200,277 $2,029 $7,096 $2,349 $11,474 JPMorganChase interest in securitized assets in nonconsolidated VIEs(c)(d)(e) --- ## Modified Risk: JPMorganChase's operations, results and reputation could be harmed by occurrences of extraordinary events beyond its control. **Key changes:** - Updated: "JPMorganChase's business and operations could be seriously disrupted, and its reputation could be harmed, by events or contributing factors that are wholly or partially beyond its control, including material instances of: •cyber attacks •security breaches of its physical premises, including threats to health and safety •utility or telecommunications failures, internet outages or shutdowns of mass transit •failure of, or loss of access to, technology or operational systems, including any resulting loss of critical data •interruption of service from third-party service providers, including financial market infrastructures •damage to or loss of property or assets of JPMorganChase or third parties, and any consequent injuries, including in connection with any construction projects undertaken by JPMorganChase •failure or perceived failure by clients, customers or counterparties of JPMorganChase, or by other parties, including newly-acquired businesses, companies in which JPMorganChase has made principal investments, parties to joint ventures with JPMorganChase and vendors with which 24 24 24 24 JPMorganChase does business, to comply with applicable law•natural disasters, severe weather conditions or the effects of climate change •accidents such as explosions or structural failures•health emergencies, or•events arising from any outbreak or escalation of civil unrest, hostilities, terrorist acts or other violence or criminal activity.There can be no assurance that JPMorganChase's Firmwide resiliency framework will mitigate all potential resiliency risks to JPMorganChase, its clients and customers, and the third parties, including service providers with which it does business, or that the resiliency framework will be able to anticipate or defend against every form of disruption or adequately address the effects of simultaneous or prolonged disruptions." - Updated: "Further, should extraordinary events or the factors that cause or contribute to those events become more chronic, the disruptive effects of those events on JPMorganChase's business and operations, and on its clients, customers, counterparties and employees, could become more significant and persistent.Any significant failure or disruption of JPMorganChase's business and operations, or the occurrence of extraordinary events that are beyond its control, could:•hinder JPMorganChase's ability to provide services to its clients and customers or to transact with its counterparties•require it to expend significant resources to correct the failure or disruption or to address the event•cause it to incur losses or liabilities, including from loss of revenue, property damage, or injuries•disrupt market infrastructure systems on which JPMorganChase's businesses rely•expose it to litigation or penalties, and•cause reputational harm.The occurrence of extraordinary events could also negatively impact the financial condition or creditworthiness of JPMorganChase's clients and customers, and could lead to an increase in the allowance for credit losses and higher net charge-offs, which could reduce JPMorganChase's earnings.Any failure to maintain adequate data management processes could adversely affect JPMorganChase's ability to effectively manage its businesses, comply with applicable law or make informed business decisions.JPMorganChase relies on accurate, timely and complete data to effectively operate its systems and processes, including:•assessing risk exposures and limits•monitoring and detecting fraudulent transactions and cyber threats•developing or maintaining models and other analytical and judgment-based estimations •implementing and maintaining compliance programs, and•preparing financial statements, disclosures and regulatory reports, as well as internal reportingAny deficiencies in JPMorganChase's data management processes, including with respect to the accuracy or completeness of data, the timeliness of data collection, the analysis or validation of data, or the safeguarding of data could undermine the reliability and effectiveness of JPMorganChase's operations, such as:•risk management practices, including inaccurate or untimely risk reporting•completion of regulatory reporting or internal or external financial reporting•compliance practices, such as those relating to transaction monitoring, customer screening, recordkeeping or reporting•business activities, including managing JPMorganChase's market-making positions and liquidity and capital levels•providing services to clients and customers, including transaction processing, lending services, account management and customer support, and•fraud detection and prevention processes.Any of these deficiencies could impair JPMorganChase's ability to make sound business decisions, cause it to incur higher operational and compliance costs, result in operational breakdowns or failure to meet regulatory requirements, negatively affect clients and customers, or cause reputational harm.In addition, if a third-party, whether authorized or unauthorized, obtains and misappropriates data from JPMorganChase's systems, JPMorganChase and its clients and customers could experience negative outcomes, including a heightened risk of fraudulent transactions using JPMorganChase's systems, losses from fraudulent transactions and reputational harm from perceived system insecurity." - Updated: "Further, should extraordinary events or the factors that cause or contribute to those events become more chronic, the disruptive effects of those events on JPMorganChase's business and operations, and on its clients, customers, counterparties and employees, could become more significant and persistent.Any significant failure or disruption of JPMorganChase's business and operations, or the occurrence of extraordinary events that are beyond its control, could:•hinder JPMorganChase's ability to provide services to its clients and customers or to transact with its counterparties•require it to expend significant resources to correct the failure or disruption or to address the event•cause it to incur losses or liabilities, including from loss of revenue, property damage, or injuries•disrupt market infrastructure systems on which JPMorganChase's businesses rely•expose it to litigation or penalties, and•cause reputational harm.The occurrence of extraordinary events could also negatively impact the financial condition or creditworthiness of JPMorganChase's clients and customers, and could lead to an increase in the allowance for credit losses and higher net charge-offs, which could reduce JPMorganChase's earnings." - Updated: "Further, should extraordinary events or the factors that cause or contribute to those events become more chronic, the disruptive effects of those events on JPMorganChase's business and operations, and on its clients, customers, counterparties and employees, could become more significant and persistent." **Prior (2025):** JPMorganChase's business and operational systems could be seriously disrupted, and its reputation could be harmed, by events or contributing factors that are wholly or partially beyond its control, including material instances of: •cyber attacks •security breaches of its physical premises, including threats to health and safety •power, telecommunications or internet outages, or shutdowns of mass transit •failure of, or loss of access to, technology or operational systems, including any resulting loss of critical data •interruption of service from third-party service providers •damage to or loss of property or assets of JPMorganChase or third parties, and any consequent injuries, including in connection with any construction projects undertaken by JPMorganChase •effects of climate change •natural disasters or severe weather conditions •accidents such as explosions or structural failures •health emergencies, the spread of infectious diseases, epidemics or pandemics, or •events arising from local or larger-scale civil or political unrest, any outbreak or escalation of hostilities, or terrorist acts. JPMorganChase operates a Firmwide resiliency framework that is intended to enable it to prepare for and adapt to changing conditions and withstand and recover from, and address any adverse effects on its operations caused by, disruptions that may impact critical business functions and supporting assets, including its staff, technology, data and facilities and those of third-party service providers. Although not every form of disruption can be anticipated or defended against, JPMorganChase 27 27 27 27 Part I Part I strives for resiliency or recovery in a range of scenarios in the event of a disruption, including due to the occurrence of an extraordinary event beyond its control. There can be no assurance that JPMorganChase's Firmwide resiliency framework will fully mitigate all potential resiliency risks to JPMorganChase, its clients, and customers and third parties with which it does business, or that its resiliency framework will be adequate to address the effects of simultaneous occurrences of multiple or extended disruption events. In addition, JPMorganChase's ability to respond effectively to a disruption event could be hampered to the extent that the members of its workforce, physical assets, systems and other support infrastructure, or those of its third-party service providers, that are needed to address the event are geographically dispersed, or conversely, if such an event were to occur in an area in which they are concentrated. Further, should extraordinary events or the factors that cause or contribute to those events become more chronic, the disruptive effects of those events on JPMorganChase's business and operations, and on its clients, customers, counterparties and employees, could become more significant and long-lasting. Any significant failure or disruption of JPMorganChase's operations or operational systems, or the occurrence of one or more extraordinary events that are beyond its control, could:•hinder JPMorganChase's ability to provide services to its clients and customers or to transact with its counterparties•require it to expend significant resources to correct the failure or disruption or to address the event•cause it to incur losses or liabilities, including from loss of revenue, damage to or loss of property, or injuries•disrupt market infrastructure systems on which JPMorganChase's businesses rely •expose it to litigation or regulatory fines, penalties or other sanctions, and•harm its reputation.The occurrence of one or more extraordinary events could also negatively impact the financial condition or creditworthiness of JPMorganChase's clients and customers, and could lead to an increase in delinquencies, additions to the allowance for credit losses and higher net charge-offs, which can reduce JPMorganChase's earnings.Data quality is essential to JPMorganChase's business and operations, and if JPMorganChase fails to maintain adequate data management processes, this could adversely affect its ability to effectively manage its businesses, comply with applicable laws, rules and regulations, or remain competitive. JPMorganChase relies on accurate, timely and complete data to effectively operate its systems and processes, including:•assessing risk exposures and limits•monitoring and detecting fraudulent transactions and cyber threats•developing or maintaining models and other analytical and judgment-based estimations, including those that use machine learning or artificial intelligence•implementing and maintaining compliance programs, and•preparing financial statements, disclosures and regulatory reports, as well as internal reportingAny deficiencies in JPMorganChase's data management processes, including with respect to the accuracy or completeness of data, the timeliness of data collection, the analysis or validation of data, or the safeguarding of data could undermine the reliability and effectiveness of its operations, including:•risk management practices, including inaccurate or untimely risk reporting •delivery of regulatory reporting or internal or external financial reporting•compliance practices, such as those relating to transaction monitoring, customer screening, blocking and rejecting transactions, recordkeeping or reporting•business activities, such as those related to managing JPMorganChase's market-making positions and liquidity and capital levels, including reliance on timely data for informed decision-making•providing services to clients and customers, including transaction processing, lending services, account management and customer support, or•fraud detection and prevention processes.Any or all of these factors could impair the ability of JPMorganChase to make sound business decisions, cause it to incur higher operational and compliance costs, result in operational breakdowns or failure to meet its regulatory requirements, negatively affect clients and customers, or lead to reputational harm.Enhanced regulatory and other standards for the oversight of vendors and other service providers can result in higher costs and other potential exposures.JPMorganChase must comply with enhanced regulatory and other standards associated with doing strives for resiliency or recovery in a range of scenarios in the event of a disruption, including due to the occurrence of an extraordinary event beyond its control. There can be no assurance that JPMorganChase's Firmwide resiliency framework will fully mitigate all potential resiliency risks to JPMorganChase, its clients, and customers and third parties with which it does business, or that its resiliency framework will be adequate to address the effects of simultaneous occurrences of multiple or extended disruption events. In addition, JPMorganChase's ability to respond effectively to a disruption event could be hampered to the extent that the members of its workforce, physical assets, systems and other support infrastructure, or those of its third-party service providers, that are needed to address the event are geographically dispersed, or conversely, if such an event were to occur in an area in which they are concentrated. Further, should extraordinary events or the factors that cause or contribute to those events become more chronic, the disruptive effects of those events on JPMorganChase's business and operations, and on its clients, customers, counterparties and employees, could become more significant and long-lasting. Any significant failure or disruption of JPMorganChase's operations or operational systems, or the occurrence of one or more extraordinary events that are beyond its control, could:•hinder JPMorganChase's ability to provide services to its clients and customers or to transact with its counterparties•require it to expend significant resources to correct the failure or disruption or to address the event•cause it to incur losses or liabilities, including from loss of revenue, damage to or loss of property, or injuries•disrupt market infrastructure systems on which JPMorganChase's businesses rely •expose it to litigation or regulatory fines, penalties or other sanctions, and•harm its reputation.The occurrence of one or more extraordinary events could also negatively impact the financial condition or creditworthiness of JPMorganChase's clients and customers, and could lead to an increase in delinquencies, additions to the allowance for credit losses and higher net charge-offs, which can reduce JPMorganChase's earnings. strives for resiliency or recovery in a range of scenarios in the event of a disruption, including due to the occurrence of an extraordinary event beyond its control. There can be no assurance that JPMorganChase's Firmwide resiliency framework will fully mitigate all potential resiliency risks to JPMorganChase, its clients, and customers and third parties with which it does business, or that its resiliency framework will be adequate to address the effects of simultaneous occurrences of multiple or extended disruption events. In addition, JPMorganChase's ability to respond effectively to a disruption event could be hampered to the extent that the members of its workforce, physical assets, systems and other support infrastructure, or those of its third-party service providers, that are needed to address the event are geographically dispersed, or conversely, if such an event were to occur in an area in which they are concentrated. Further, should extraordinary events or the factors that cause or contribute to those events become more chronic, the disruptive effects of those events on JPMorganChase's business and operations, and on its clients, customers, counterparties and employees, could become more significant and long-lasting. Any significant failure or disruption of JPMorganChase's operations or operational systems, or the occurrence of one or more extraordinary events that are beyond its control, could: •hinder JPMorganChase's ability to provide services to its clients and customers or to transact with its counterparties •require it to expend significant resources to correct the failure or disruption or to address the event •cause it to incur losses or liabilities, including from loss of revenue, damage to or loss of property, or injuries •disrupt market infrastructure systems on which JPMorganChase's businesses rely •expose it to litigation or regulatory fines, penalties or other sanctions, and •harm its reputation. The occurrence of one or more extraordinary events could also negatively impact the financial condition or creditworthiness of JPMorganChase's clients and customers, and could lead to an increase in delinquencies, additions to the allowance for credit losses and higher net charge-offs, which can reduce JPMorganChase's earnings. Data quality is essential to JPMorganChase's business and operations, and if JPMorganChase fails to maintain adequate data management processes, this could adversely affect its ability to effectively manage its businesses, comply with applicable laws, rules and regulations, or remain competitive. JPMorganChase relies on accurate, timely and complete data to effectively operate its systems and processes, including:•assessing risk exposures and limits•monitoring and detecting fraudulent transactions and cyber threats•developing or maintaining models and other analytical and judgment-based estimations, including those that use machine learning or artificial intelligence•implementing and maintaining compliance programs, and•preparing financial statements, disclosures and regulatory reports, as well as internal reportingAny deficiencies in JPMorganChase's data management processes, including with respect to the accuracy or completeness of data, the timeliness of data collection, the analysis or validation of data, or the safeguarding of data could undermine the reliability and effectiveness of its operations, including:•risk management practices, including inaccurate or untimely risk reporting •delivery of regulatory reporting or internal or external financial reporting•compliance practices, such as those relating to transaction monitoring, customer screening, blocking and rejecting transactions, recordkeeping or reporting•business activities, such as those related to managing JPMorganChase's market-making positions and liquidity and capital levels, including reliance on timely data for informed decision-making•providing services to clients and customers, including transaction processing, lending services, account management and customer support, or•fraud detection and prevention processes.Any or all of these factors could impair the ability of JPMorganChase to make sound business decisions, cause it to incur higher operational and compliance costs, result in operational breakdowns or failure to meet its regulatory requirements, negatively affect clients and customers, or lead to reputational harm.Enhanced regulatory and other standards for the oversight of vendors and other service providers can result in higher costs and other potential exposures.JPMorganChase must comply with enhanced regulatory and other standards associated with doing **Current (2026):** JPMorganChase's business and operations could be seriously disrupted, and its reputation could be harmed, by events or contributing factors that are wholly or partially beyond its control, including material instances of: •cyber attacks •security breaches of its physical premises, including threats to health and safety •utility or telecommunications failures, internet outages or shutdowns of mass transit •failure of, or loss of access to, technology or operational systems, including any resulting loss of critical data •interruption of service from third-party service providers, including financial market infrastructures •damage to or loss of property or assets of JPMorganChase or third parties, and any consequent injuries, including in connection with any construction projects undertaken by JPMorganChase •failure or perceived failure by clients, customers or counterparties of JPMorganChase, or by other parties, including newly-acquired businesses, companies in which JPMorganChase has made principal investments, parties to joint ventures with JPMorganChase and vendors with which 24 24 24 24 JPMorganChase does business, to comply with applicable law•natural disasters, severe weather conditions or the effects of climate change •accidents such as explosions or structural failures•health emergencies, or•events arising from any outbreak or escalation of civil unrest, hostilities, terrorist acts or other violence or criminal activity.There can be no assurance that JPMorganChase's Firmwide resiliency framework will mitigate all potential resiliency risks to JPMorganChase, its clients and customers, and the third parties, including service providers with which it does business, or that the resiliency framework will be able to anticipate or defend against every form of disruption or adequately address the effects of simultaneous or prolonged disruptions. In addition, JPMorganChase's ability to respond effectively to a disruption event could be hampered to the extent that the members of its workforce, physical assets, systems and other support infrastructure, or those of its third-party service providers, that are needed to address the event are geographically dispersed, or conversely, if such an event were to occur in an area in which they are concentrated. Further, should extraordinary events or the factors that cause or contribute to those events become more chronic, the disruptive effects of those events on JPMorganChase's business and operations, and on its clients, customers, counterparties and employees, could become more significant and persistent.Any significant failure or disruption of JPMorganChase's business and operations, or the occurrence of extraordinary events that are beyond its control, could:•hinder JPMorganChase's ability to provide services to its clients and customers or to transact with its counterparties•require it to expend significant resources to correct the failure or disruption or to address the event•cause it to incur losses or liabilities, including from loss of revenue, property damage, or injuries•disrupt market infrastructure systems on which JPMorganChase's businesses rely•expose it to litigation or penalties, and•cause reputational harm.The occurrence of extraordinary events could also negatively impact the financial condition or creditworthiness of JPMorganChase's clients and customers, and could lead to an increase in the allowance for credit losses and higher net charge-offs, which could reduce JPMorganChase's earnings.Any failure to maintain adequate data management processes could adversely affect JPMorganChase's ability to effectively manage its businesses, comply with applicable law or make informed business decisions.JPMorganChase relies on accurate, timely and complete data to effectively operate its systems and processes, including:•assessing risk exposures and limits•monitoring and detecting fraudulent transactions and cyber threats•developing or maintaining models and other analytical and judgment-based estimations •implementing and maintaining compliance programs, and•preparing financial statements, disclosures and regulatory reports, as well as internal reportingAny deficiencies in JPMorganChase's data management processes, including with respect to the accuracy or completeness of data, the timeliness of data collection, the analysis or validation of data, or the safeguarding of data could undermine the reliability and effectiveness of JPMorganChase's operations, such as:•risk management practices, including inaccurate or untimely risk reporting•completion of regulatory reporting or internal or external financial reporting•compliance practices, such as those relating to transaction monitoring, customer screening, recordkeeping or reporting•business activities, including managing JPMorganChase's market-making positions and liquidity and capital levels•providing services to clients and customers, including transaction processing, lending services, account management and customer support, and•fraud detection and prevention processes.Any of these deficiencies could impair JPMorganChase's ability to make sound business decisions, cause it to incur higher operational and compliance costs, result in operational breakdowns or failure to meet regulatory requirements, negatively affect clients and customers, or cause reputational harm.In addition, if a third-party, whether authorized or unauthorized, obtains and misappropriates data from JPMorganChase's systems, JPMorganChase and its clients and customers could experience negative outcomes, including a heightened risk of fraudulent transactions using JPMorganChase's systems, losses from fraudulent transactions and reputational harm from perceived system insecurity. JPMorganChase does business, to comply with applicable law•natural disasters, severe weather conditions or the effects of climate change •accidents such as explosions or structural failures•health emergencies, or•events arising from any outbreak or escalation of civil unrest, hostilities, terrorist acts or other violence or criminal activity.There can be no assurance that JPMorganChase's Firmwide resiliency framework will mitigate all potential resiliency risks to JPMorganChase, its clients and customers, and the third parties, including service providers with which it does business, or that the resiliency framework will be able to anticipate or defend against every form of disruption or adequately address the effects of simultaneous or prolonged disruptions. In addition, JPMorganChase's ability to respond effectively to a disruption event could be hampered to the extent that the members of its workforce, physical assets, systems and other support infrastructure, or those of its third-party service providers, that are needed to address the event are geographically dispersed, or conversely, if such an event were to occur in an area in which they are concentrated. Further, should extraordinary events or the factors that cause or contribute to those events become more chronic, the disruptive effects of those events on JPMorganChase's business and operations, and on its clients, customers, counterparties and employees, could become more significant and persistent.Any significant failure or disruption of JPMorganChase's business and operations, or the occurrence of extraordinary events that are beyond its control, could:•hinder JPMorganChase's ability to provide services to its clients and customers or to transact with its counterparties•require it to expend significant resources to correct the failure or disruption or to address the event•cause it to incur losses or liabilities, including from loss of revenue, property damage, or injuries•disrupt market infrastructure systems on which JPMorganChase's businesses rely•expose it to litigation or penalties, and•cause reputational harm.The occurrence of extraordinary events could also negatively impact the financial condition or creditworthiness of JPMorganChase's clients and customers, and could lead to an increase in the allowance for credit losses and higher net charge-offs, which could reduce JPMorganChase's earnings. JPMorganChase does business, to comply with applicable law •natural disasters, severe weather conditions or the effects of climate change •accidents such as explosions or structural failures •health emergencies, or •events arising from any outbreak or escalation of civil unrest, hostilities, terrorist acts or other violence or criminal activity. There can be no assurance that JPMorganChase's Firmwide resiliency framework will mitigate all potential resiliency risks to JPMorganChase, its clients and customers, and the third parties, including service providers with which it does business, or that the resiliency framework will be able to anticipate or defend against every form of disruption or adequately address the effects of simultaneous or prolonged disruptions. In addition, JPMorganChase's ability to respond effectively to a disruption event could be hampered to the extent that the members of its workforce, physical assets, systems and other support infrastructure, or those of its third-party service providers, that are needed to address the event are geographically dispersed, or conversely, if such an event were to occur in an area in which they are concentrated. Further, should extraordinary events or the factors that cause or contribute to those events become more chronic, the disruptive effects of those events on JPMorganChase's business and operations, and on its clients, customers, counterparties and employees, could become more significant and persistent. Any significant failure or disruption of JPMorganChase's business and operations, or the occurrence of extraordinary events that are beyond its control, could: •hinder JPMorganChase's ability to provide services to its clients and customers or to transact with its counterparties •require it to expend significant resources to correct the failure or disruption or to address the event •cause it to incur losses or liabilities, including from loss of revenue, property damage, or injuries •disrupt market infrastructure systems on which JPMorganChase's businesses rely •expose it to litigation or penalties, and •cause reputational harm. The occurrence of extraordinary events could also negatively impact the financial condition or creditworthiness of JPMorganChase's clients and customers, and could lead to an increase in the allowance for credit losses and higher net charge-offs, which could reduce JPMorganChase's earnings. Any failure to maintain adequate data management processes could adversely affect JPMorganChase's ability to effectively manage its businesses, comply with applicable law or make informed business decisions.JPMorganChase relies on accurate, timely and complete data to effectively operate its systems and processes, including:•assessing risk exposures and limits•monitoring and detecting fraudulent transactions and cyber threats•developing or maintaining models and other analytical and judgment-based estimations •implementing and maintaining compliance programs, and•preparing financial statements, disclosures and regulatory reports, as well as internal reportingAny deficiencies in JPMorganChase's data management processes, including with respect to the accuracy or completeness of data, the timeliness of data collection, the analysis or validation of data, or the safeguarding of data could undermine the reliability and effectiveness of JPMorganChase's operations, such as:•risk management practices, including inaccurate or untimely risk reporting•completion of regulatory reporting or internal or external financial reporting•compliance practices, such as those relating to transaction monitoring, customer screening, recordkeeping or reporting•business activities, including managing JPMorganChase's market-making positions and liquidity and capital levels•providing services to clients and customers, including transaction processing, lending services, account management and customer support, and•fraud detection and prevention processes.Any of these deficiencies could impair JPMorganChase's ability to make sound business decisions, cause it to incur higher operational and compliance costs, result in operational breakdowns or failure to meet regulatory requirements, negatively affect clients and customers, or cause reputational harm.In addition, if a third-party, whether authorized or unauthorized, obtains and misappropriates data from JPMorganChase's systems, JPMorganChase and its clients and customers could experience negative outcomes, including a heightened risk of fraudulent transactions using JPMorganChase's systems, losses from fraudulent transactions and reputational harm from perceived system insecurity. --- ## Modified Risk: Note 19 - Accounts payable and other liabilities **Key changes:** - Updated: "Accounts payable and other liabilities consist of brokerage payables, which include payables to customers and payables related to security purchases that did not settle; other accrued expenses, such as compensation accruals, credit card rewards liability, accrued interest payables, merchant servicing payables and income tax payables; and all other liabilities, including operating lease liabilities, obligations to return securities received as collateral which are measured at fair value, allowance for lending-related commitments, and litigation reserves." - Updated: "December 31, (in millions)20252024Brokerage payables$186,658 $153,153 Other payables and liabilities(a)130,136 127,519 Total accounts payable and other liabilities$316,794 $280,672 Other payables and liabilities(a)" **Prior (2025):** Accounts payable and other liabilities consist of brokerage payables, which include payables to customers and payables related to security purchases that did not settle, as well as other accrued expenses, such as compensation accruals, credit card rewards liability, merchant servicing payables, operating lease liabilities, accrued interest payables, income tax payables and litigation reserves. The following table presents the components of accounts payable and other liabilities. December 31, (in millions)20242023Brokerage payables$153,153 $161,960 Other payables and liabilities(a)127,519 128,347 Total accounts payable and other liabilities$280,672 $290,307 Other payables and liabilities(a) **Current (2026):** Accounts payable and other liabilities consist of brokerage payables, which include payables to customers and payables related to security purchases that did not settle; other accrued expenses, such as compensation accruals, credit card rewards liability, accrued interest payables, merchant servicing payables and income tax payables; and all other liabilities, including operating lease liabilities, obligations to return securities received as collateral which are measured at fair value, allowance for lending-related commitments, and litigation reserves. The following table presents the components of accounts payable and other liabilities. December 31, (in millions)20252024Brokerage payables$186,658 $153,153 Other payables and liabilities(a)130,136 127,519 Total accounts payable and other liabilities$316,794 $280,672 Other payables and liabilities(a) --- ## Modified Risk: Consumer, excluding credit card **Key changes:** - Updated: "Portfolio analysisLoans increased compared to December 31, 2024, primarily driven by higher residential real estate loans at fair value.The following discussions provide information concerning individual loan products." - Updated: "Retained loans decreased compared to December 31, 2024, driven by paydowns, predominantly offset by originations." - Updated: "The credit performance of this portfolio is comparable to the performance of the broader prime mortgage portfolio.The carrying value of retained home equity lines of credit outstanding was $13.2 billion at December 31, 2025, including $3.3 billion of HELOCs that have recast from interest-only to fully amortizing payments or have been modified, and $3.2 billion of interest-only balloon HELOCs, which primarily mature after 2030." - Updated: "(in millions)December 31, 2025December 31, 2024Current$840 $462 30-89 days past due121 72 90 or more days past due198 121 Total government guaranteed loans$1,159 $655 Geographic composition and current estimated loan-to-value ratio of residential real estate loansAt December 31, 2025, $213.1 billion, or 70%, of the total retained residential real estate loan portfolio, was concentrated in California, New York, Florida, Texas and Massachusetts, compared to $217.7 billion, or 70%, at December 31, 2024.Average current estimated loan-to-value ("LTV") ratios were relatively flat compared to December 31, 2024.Refer to Note 12 for information on the geographic composition and current estimated LTVs of the Firm's residential real estate loans." - Updated: "Retained loans decreased compared to December 31, 2024, driven by paydowns, predominantly offset by originations." **Prior (2025):** Portfolio analysisLoans decreased from December 31, 2023 driven by residential real estate loans and scored auto loans.The following discussions provide information concerning individual loan products. Refer to Note 12 for further information about this portfolio, including information about delinquencies, loan modifications and other credit quality indicators.Residential real estate: The residential real estate portfolio, including loans held-for-sale and loans at fair value, predominantly consists of prime mortgage loans and home equity lines of credit. Retained loans decreased compared to December 31, 2023, predominantly driven by paydowns and loan sales, net of originations. Retained nonaccrual loans decreased compared to December 31, 2023, predominantly driven by loan sales. Net recoveries were higher for the year ended December 31, 2024 compared to the prior year, driven by loan sales. Loans held-for-sale and nonaccrual loans held-for-sale increased from December 31, 2023, predominantly driven by transfers of certain retained loans in anticipation of securitization and loan sales, respectively. Loans at fair value increased from December 31, 2023, predominantly driven by higher Home Lending loans, as originations outpaced warehouse loan sales. Nonaccrual loans at fair value increased compared to December 31, 2023, driven by CIB.At December 31, 2024 and 2023, the carrying values of retained interest-only residential mortgage loans were $88.9 billion and $90.6 billion, respectively. These loans have an interest-only payment period generally followed by an adjustable-rate or fixed-rate fully amortizing payment period to maturity and are typically originated as higher-balance loans to higher-income borrowers. The credit performance of this portfolio is comparable to the performance of the broader prime mortgage portfolio.The carrying value of retained home equity lines of credit outstanding was $14.5 billion at December 31, 2024, including $3.8 billion of HELOCs that have recast from interest-only to fully amortizing payments or have been modified, and $3.6 billion of interest-only balloon HELOCs, which primarily mature after 2030. The Firm manages the risk of HELOCs during their revolving period by reducing or canceling the undrawn line in accordance with the contract or to the extent otherwise permitted by law, including when there has been a demonstrable decline in the creditworthiness of the borrower or significant decrease in the value of the underlying property.The following table provides a summary of the Firm'sresidential mortgage portfolio insured and/or guaranteed by U.S. government agencies, predominantly loans held-for-sale and loans at fair value. The Firm monitors its exposure to certain potential unrecoverable claim payments related to government-insured loans and considers this exposure in estimating the allowance for loan losses. (in millions)December 31, 2024December 31, 2023Current$462 $446 30-89 days past due72 102 90 or more days past due121 182 Total government guaranteed loans$655 $730 Geographic composition and current estimated loan-to-value ratio of residential real estate loansAt December 31, 2024, $217.7 billion, or 70% of the total retained residential real estate loan portfolio, was concentrated in California, New York, Florida, Texas and Massachusetts, compared to $228.4 billion, or 70% at December 31, 2023.Average current estimated loan-to-value ("LTV") ratios have improved, reflecting an increase in home prices.Refer to Note 12 for information on the geographic composition and current estimated LTVs of the Firm's residential real estate loans. Portfolio analysisLoans decreased from December 31, 2023 driven by residential real estate loans and scored auto loans.The following discussions provide information concerning individual loan products. Refer to Note 12 for further information about this portfolio, including information about delinquencies, loan modifications and other credit quality indicators.Residential real estate: The residential real estate portfolio, including loans held-for-sale and loans at fair value, predominantly consists of prime mortgage loans and home equity lines of credit. Retained loans decreased compared to December 31, 2023, predominantly driven by paydowns and loan sales, net of originations. Retained nonaccrual loans decreased compared to December 31, 2023, predominantly driven by loan sales. Net recoveries were higher for the year ended December 31, 2024 compared to the prior year, driven by loan sales. Loans held-for-sale and nonaccrual loans held-for-sale increased from December 31, 2023, predominantly driven by transfers of certain retained loans in anticipation of securitization and loan sales, respectively. Loans at fair value increased from December 31, 2023, predominantly driven by higher Home Lending loans, as originations outpaced warehouse loan sales. Nonaccrual loans at fair value increased compared to December 31, 2023, driven by CIB.At December 31, 2024 and 2023, the carrying values of retained interest-only residential mortgage loans were $88.9 billion and $90.6 billion, respectively. These loans have an interest-only payment period generally followed by an adjustable-rate or fixed-rate fully amortizing payment period to maturity and are typically originated as higher-balance loans to higher-income borrowers. The credit performance of this portfolio is comparable to the performance of the broader prime mortgage portfolio.The carrying value of retained home equity lines of credit outstanding was $14.5 billion at December 31, 2024, including $3.8 billion of HELOCs that have recast from interest-only to fully amortizing payments or have been modified, and $3.6 billion of interest-only balloon HELOCs, which primarily mature after 2030. The Firm manages the risk of HELOCs during their revolving period by reducing or canceling the undrawn line in accordance with the contract or to the extent otherwise permitted by law, including when there has been a demonstrable decline in the creditworthiness of the borrower or significant decrease in the value of the underlying property. **Current (2026):** Portfolio analysisLoans increased compared to December 31, 2024, primarily driven by higher residential real estate loans at fair value.The following discussions provide information concerning individual loan products. Refer to Note 12 for further information about this portfolio, including information about delinquencies, loan modifications and other credit quality indicators.Residential real estate: The residential real estate portfolio, including loans held-for-sale and loans at fair value, predominantly consists of prime mortgage loans and home equity lines of credit. Retained loans decreased compared to December 31, 2024, driven by paydowns, predominantly offset by originations. Retained nonaccrual loans increased compared to December 31, 2024, primarily driven by forbearances granted to certain borrowers impacted by the wildfires in Los Angeles County, California in January 2025. Net recoveries were higher for the year ended December 31, 2025 compared to the prior year, driven by loan sales. Loans held-for-sale and nonaccrual loans held-for-sale decreased compared to December 31, 2024, reflecting loan sales. Loans at fair value increased compared to December 31, 2024, as purchases outpaced sales in CIB and originations outpaced warehouse loan sales in Home Lending. Nonaccrual loans at fair value increased compared to December 31, 2024, driven by CIB.At December 31, 2025 and 2024, the carrying values of retained interest-only residential mortgage loans were $88.8 billion and $88.9 billion, respectively. These loans have an interest-only payment period generally followed by an adjustable-rate or fixed-rate fully amortizing payment period to maturity and are typically originated as higher-balance loans to higher-income borrowers. The credit performance of this portfolio is comparable to the performance of the broader prime mortgage portfolio.The carrying value of retained home equity lines of credit outstanding was $13.2 billion at December 31, 2025, including $3.3 billion of HELOCs that have recast from interest-only to fully amortizing payments or have been modified, and $3.2 billion of interest-only balloon HELOCs, which primarily mature after 2030. The Firm manages the risk of HELOCs during their revolving period by reducing or canceling the undrawn line in accordance with the contract or to the extent otherwise permitted by law, including when there has been a demonstrable decline in the creditworthiness of the borrower or significant decrease in the value of the underlying property.The following table provides a summary of the Firm'sresidential mortgage portfolio insured and/or guaranteed by U.S. government agencies, predominantly loans held-for-sale and loans at fair value. The Firm monitors its exposure to certain potential unrecoverable claim payments related to government-insured loans and considers this exposure in estimating the allowance for loan losses. (in millions)December 31, 2025December 31, 2024Current$840 $462 30-89 days past due121 72 90 or more days past due198 121 Total government guaranteed loans$1,159 $655 Geographic composition and current estimated loan-to-value ratio of residential real estate loansAt December 31, 2025, $213.1 billion, or 70%, of the total retained residential real estate loan portfolio, was concentrated in California, New York, Florida, Texas and Massachusetts, compared to $217.7 billion, or 70%, at December 31, 2024.Average current estimated loan-to-value ("LTV") ratios were relatively flat compared to December 31, 2024.Refer to Note 12 for information on the geographic composition and current estimated LTVs of the Firm's residential real estate loans. Portfolio analysisLoans increased compared to December 31, 2024, primarily driven by higher residential real estate loans at fair value.The following discussions provide information concerning individual loan products. Refer to Note 12 for further information about this portfolio, including information about delinquencies, loan modifications and other credit quality indicators.Residential real estate: The residential real estate portfolio, including loans held-for-sale and loans at fair value, predominantly consists of prime mortgage loans and home equity lines of credit. Retained loans decreased compared to December 31, 2024, driven by paydowns, predominantly offset by originations. Retained nonaccrual loans increased compared to December 31, 2024, primarily driven by forbearances granted to certain borrowers impacted by the wildfires in Los Angeles County, California in January 2025. Net recoveries were higher for the year ended December 31, 2025 compared to the prior year, driven by loan sales. Loans held-for-sale and nonaccrual loans held-for-sale decreased compared to December 31, 2024, reflecting loan sales. Loans at fair value increased compared to December 31, 2024, as purchases outpaced sales in CIB and originations outpaced warehouse loan sales in Home Lending. Nonaccrual loans at fair value increased compared to December 31, 2024, driven by CIB.At December 31, 2025 and 2024, the carrying values of retained interest-only residential mortgage loans were $88.8 billion and $88.9 billion, respectively. These loans have an interest-only payment period generally followed by an adjustable-rate or fixed-rate fully amortizing payment period to maturity and are typically originated as higher-balance loans to higher-income borrowers. The credit performance of this portfolio is comparable to the performance of the broader prime mortgage portfolio.The carrying value of retained home equity lines of credit outstanding was $13.2 billion at December 31, 2025, including $3.3 billion of HELOCs that have recast from interest-only to fully amortizing payments or have been modified, and $3.2 billion of interest-only balloon HELOCs, which primarily mature after 2030. The Firm manages the risk of HELOCs during their revolving period by reducing or canceling the undrawn line in accordance with the contract or to the extent otherwise permitted by law, including when there has been a demonstrable decline in the creditworthiness of the borrower or significant decrease in the value of the underlying property. --- ## Modified Risk: A successful cyber attack could cause significant harm to JPMorganChase and its clients and customers. **Key changes:** - Updated: "JPMorganChase experiences numerous cyber attacks on its computer systems, software, networks and other technology assets." - Updated: "JPMorganChase cannot guarantee that it will always detect cybersecurity threats to its systems or implement effective preventive measures against those threats." - Updated: "Any or all of these factors could further increase the costs and consequences of a cyber attack.JPMorganChase's businesses could be adversely affected if it fails to identify and address operational risks associated with the introduction of or changes to products, services, delivery platforms or technologies.JPMorganChase may not always identify or recognize the full extent of operational risks that could arise from:•the introduction of a new product or service, including platforms for the delivery or distribution of products or services •the acquisition or integration of, or investment in, a new business, product or portfolio, including the development of any related technological capabilities•the adoption of a new technology, or•changes to existing products, services, delivery platforms, businesses and technologies.Any significant failure by JPMorganChase to identify the operational risks associated with these types of changes, or to implement adequate controls to mitigate those risks, has resulted and could in the future result in:•hindering JPMorganChase's ability to operate its businesses•potential liability to clients, counterparties and customers •impairment of JPMorganChase's liquidity •weaker competitive standing •higher compliance, operational or integration costs •regulatory intervention•losses from fraudulent transactions•higher litigation costs and penalties, or •reputational harm." - Updated: "Any or all of these factors could further increase the costs and consequences of a cyber attack.JPMorganChase's businesses could be adversely affected if it fails to identify and address operational risks associated with the introduction of or changes to products, services, delivery platforms or technologies.JPMorganChase may not always identify or recognize the full extent of operational risks that could arise from:•the introduction of a new product or service, including platforms for the delivery or distribution of products or services •the acquisition or integration of, or investment in, a new business, product or portfolio, including the development of any related technological capabilities•the adoption of a new technology, or•changes to existing products, services, delivery platforms, businesses and technologies.Any significant failure by JPMorganChase to identify the operational risks associated with these types of changes, or to implement adequate controls to mitigate those risks, has resulted and could in the future result in:•hindering JPMorganChase's ability to operate its businesses•potential liability to clients, counterparties and customers •impairment of JPMorganChase's liquidity •weaker competitive standing •higher compliance, operational or integration costs •regulatory intervention•losses from fraudulent transactions•higher litigation costs and penalties, or •reputational harm." **Prior (2025):** JPMorganChase experiences numerous cyber attacks on its computer systems, software, networks and other technology assets on a daily basis from various actors, including groups acting on behalf of hostile countries, cyber-criminals, "hacktivists" (i.e., individuals or groups that use technology to promote a political agenda or social change) and others. These cyber attacks can take many forms, including attempts to introduce computer viruses or malicious code, which are commonly referred to as "malware," into JPMorganChase's systems. These attacks are often designed to: •obtain unauthorized access to JPMorganChase's systems or to confidential information belonging to JPMorganChase or its clients, customers, counterparties or employees •manipulate data •destroy data or systems with the aim of rendering services unavailable •disrupt, sabotage or degrade service on JPMorganChase's systems •steal money, or •extort money through the use of so-called "ransomware." JPMorganChase also experiences: •distributed denial-of-service attacks intended to disrupt JPMorganChase's websites, including those that provide online banking and other services, •a higher volume and complexity of cyber attacks against the backdrop of heightened geopolitical tensions, and •a high volume of disruptions to internet-based services used by JPMorganChase that are provided by third parties. JPMorganChase has experienced security breaches due to cyber attacks in the past, and it is inevitable that additional breaches will occur in the future. Any such breach could result in serious and harmful consequences for JPMorganChase or its clients and customers. A principal reason that JPMorganChase cannot provide absolute security against cyber attacks is that it may not always be possible to anticipate, detect or recognize threats to JPMorganChase's systems, or to implement effective preventive measures against all breaches due to evolving risks, including:•the techniques used in cyber attacks evolve frequently and increase in sophistication, and therefore may not be recognized until launched or may go undetected for extended periods•cyber attacks can originate from a wide variety of sources, including JPMorganChase's own employees, cyber-criminals, hacktivists, groups linked to terrorist organizations or hostile nation-states that can sustain malicious activities for extended periods, or third parties whose objective is to disrupt the operations of financial institutions more generally•JPMorganChase does not have control over the cybersecurity of the systems of the large number of clients, customers, counterparties and third-party service providers with which it does business, and•it is possible that a third party, after establishing a foothold on an internal network without being detected, may gain access to other networks and systems.The risk of a security breach due to a cyber attack could increase in the future due to factors such as: •JPMorganChase's ongoing expansion of its digital banking and other internet-based product offerings and its internal use of internet-based products and applications, including those that use cloud computing services•advances in artificial intelligence, such as the use of machine learning, generative artificial intelligence and quantum computing by malicious actors to develop more advanced social engineering attacks, including targeted phishing attacks•the inability to maintain the security of information transmitted by JPMorganChase due to advances in quantum computing that may counteract or nullify existing information protections, and•the acquisition and integration of new businesses.In addition, a third party could misappropriate confidential information obtained by intercepting signals or communications from mobile devices used by JPMorganChase's employees.The dynamic nature of the cyber threat landscape, including the pace of innovation and increased threat of novel attack methods, necessitates ongoing investment in, as well as enhancement and adaptation of, cybersecurity controls, including the adoption of enhanced security measures in certain jurisdictions. Failure to discover or address emerging threats, known vulnerabilities or shortcomings in cybersecurity controls, or to prioritize or complete enhancements to address them, in each case in a timely manner, may leave JPMorganChase vulnerable to cyber attacks, potentially resulting in data breaches, financial losses, implement effective preventive measures against all breaches due to evolving risks, including: •the techniques used in cyber attacks evolve frequently and increase in sophistication, and therefore may not be recognized until launched or may go undetected for extended periods •cyber attacks can originate from a wide variety of sources, including JPMorganChase's own employees, cyber-criminals, hacktivists, groups linked to terrorist organizations or hostile nation-states that can sustain malicious activities for extended periods, or third parties whose objective is to disrupt the operations of financial institutions more generally •JPMorganChase does not have control over the cybersecurity of the systems of the large number of clients, customers, counterparties and third-party service providers with which it does business, and •it is possible that a third party, after establishing a foothold on an internal network without being detected, may gain access to other networks and systems. The risk of a security breach due to a cyber attack could increase in the future due to factors such as: •JPMorganChase's ongoing expansion of its digital banking and other internet-based product offerings and its internal use of internet-based products and applications, including those that use cloud computing services •advances in artificial intelligence, such as the use of machine learning, generative artificial intelligence and quantum computing by malicious actors to develop more advanced social engineering attacks, including targeted phishing attacks •the inability to maintain the security of information transmitted by JPMorganChase due to advances in quantum computing that may counteract or nullify existing information protections, and •the acquisition and integration of new businesses. In addition, a third party could misappropriate confidential information obtained by intercepting signals or communications from mobile devices used by JPMorganChase's employees. The dynamic nature of the cyber threat landscape, including the pace of innovation and increased threat of novel attack methods, necessitates ongoing investment in, as well as enhancement and adaptation of, cybersecurity controls, including the adoption of enhanced security measures in certain jurisdictions. Failure to discover or address emerging threats, known vulnerabilities or shortcomings in cybersecurity controls, or to prioritize or complete enhancements to address them, in each case in a timely manner, may leave JPMorganChase vulnerable to cyber attacks, potentially resulting in data breaches, financial losses, 24 24 24 24 reputational damage and regulatory penalties, including the failure to prioritize or complete enhancements relating to:•preventing unauthorized access and protecting against the misuse of access, including the maintenance and enhancement of controls related to secure software development practices and identity and access management, such as those relating to the management of administrative access to systems•detecting, escalating and addressing effectively and in a timely manner any vulnerabilities that may be present either in internally-developed software or externally-provided software or services, including vulnerabilities that could allow attackers to exploit unknown security flaws in software and hardware ("zero-day vulnerabilities")•oversight of third-party vendors and early detection of attacks against those vendors, including ransomware attacks and attacks targeting vulnerabilities in third-party open-source software, in support of the secure development and maintenance of internal systems•maintaining and enhancing controls related to technology asset management and inventory systems to prevent the risk of undetected vulnerabilities that could undermine JPMorganChase's ability to operate an effective control process •upgrading the coverage and capabilities of systems and controls to protect JPMorganChase and its clients and customers from the impact of distributed denial-of-service attacks, or to recover from outages that could be caused by a malware or ransomware attack•the continuing migration of client-facing services to the cloud, and modernization of those services•strengthening network security and managing outbound connections to reduce the risk of data loss •identifying, assessing and mitigating insider threat activities that could lead to the misuse of JPMorganChase's systems or client and customer information, and•integrating acquired businesses where system integration may be complex or may require extensive and lengthy remediation or enhancement of controls.A successful penetration or circumvention of the security of JPMorganChase's systems or the systems of a vendor, governmental body or another market participant could cause serious negative consequences, including:•significant disruption of JPMorganChase's operations and those of its clients, customers and counterparties, including losing access to operational systems•misappropriation of confidential information of JPMorganChase or that of its clients, customers, counterparties, employees or regulators•disruption of or damage to JPMorganChase's systems and those of its clients, customers and counterparties•the inability, or extended delays in the ability, to fully recover and restore data that has been stolen, manipulated or destroyed, or the inability to prevent systems from processing fraudulent transactions•demands that JPMorganChase pay a ransom to a malicious actor that has perpetrated a cybersecurity breach•unintended violations by JPMorganChase of applicable privacy and other laws•financial loss to JPMorganChase or to its clients, customers, counterparties or employees•losses to JPMorganChase in excess of cyber insurance policy coverage•loss of confidence in JPMorganChase's cybersecurity and business resiliency measures•dissatisfaction among JPMorganChase's clients, customers or counterparties•significant exposure to litigation and regulatory fines, penalties or other sanctions, and•harm to JPMorganChase's reputation.The extent of a particular cyber attack, the methods and tools used by various actors, and the steps that JPMorganChase may need to take to investigate the attack may not be immediately clear, and it may take a significant amount of time before such an investigation can be completed. While such an investigation is ongoing, JPMorganChase may not necessarily know the full extent of the harm caused by the cyber attack, and that damage may continue to spread. These factors may inhibit JPMorganChase's ability to provide rapid, full and reliable information about the cyber attack to its clients, customers, counterparties and regulators, as well as the public. Furthermore, it may not be clear how best to contain and remediate the harm caused by the cyber attack, and certain errors or actions could be repeated or compounded before they are discovered and remediated. Any or all of these factors could further increase the costs and consequences of a cyber attack.JPMorganChase can be negatively affected if it fails to identify and address operational risks associated with the introduction of or changes to products, services and delivery platforms or the adoption of new technologies.When JPMorganChase launches a new product or service, introduces a new platform for the delivery or reputational damage and regulatory penalties, including the failure to prioritize or complete enhancements relating to:•preventing unauthorized access and protecting against the misuse of access, including the maintenance and enhancement of controls related to secure software development practices and identity and access management, such as those relating to the management of administrative access to systems•detecting, escalating and addressing effectively and in a timely manner any vulnerabilities that may be present either in internally-developed software or externally-provided software or services, including vulnerabilities that could allow attackers to exploit unknown security flaws in software and hardware ("zero-day vulnerabilities")•oversight of third-party vendors and early detection of attacks against those vendors, including ransomware attacks and attacks targeting vulnerabilities in third-party open-source software, in support of the secure development and maintenance of internal systems•maintaining and enhancing controls related to technology asset management and inventory systems to prevent the risk of undetected vulnerabilities that could undermine JPMorganChase's ability to operate an effective control process •upgrading the coverage and capabilities of systems and controls to protect JPMorganChase and its clients and customers from the impact of distributed denial-of-service attacks, or to recover from outages that could be caused by a malware or ransomware attack•the continuing migration of client-facing services to the cloud, and modernization of those services•strengthening network security and managing outbound connections to reduce the risk of data loss •identifying, assessing and mitigating insider threat activities that could lead to the misuse of JPMorganChase's systems or client and customer information, and•integrating acquired businesses where system integration may be complex or may require extensive and lengthy remediation or enhancement of controls.A successful penetration or circumvention of the security of JPMorganChase's systems or the systems of a vendor, governmental body or another market participant could cause serious negative consequences, including:•significant disruption of JPMorganChase's operations and those of its clients, customers and reputational damage and regulatory penalties, including the failure to prioritize or complete enhancements relating to: •preventing unauthorized access and protecting against the misuse of access, including the maintenance and enhancement of controls related to secure software development practices and identity and access management, such as those relating to the management of administrative access to systems •detecting, escalating and addressing effectively and in a timely manner any vulnerabilities that may be present either in internally-developed software or externally-provided software or services, including vulnerabilities that could allow attackers to exploit unknown security flaws in software and hardware ("zero-day vulnerabilities") •oversight of third-party vendors and early detection of attacks against those vendors, including ransomware attacks and attacks targeting vulnerabilities in third-party open-source software, in support of the secure development and maintenance of internal systems •maintaining and enhancing controls related to technology asset management and inventory systems to prevent the risk of undetected vulnerabilities that could undermine JPMorganChase's ability to operate an effective control process •upgrading the coverage and capabilities of systems and controls to protect JPMorganChase and its clients and customers from the impact of distributed denial-of-service attacks, or to recover from outages that could be caused by a malware or ransomware attack •the continuing migration of client-facing services to the cloud, and modernization of those services •strengthening network security and managing outbound connections to reduce the risk of data loss •identifying, assessing and mitigating insider threat activities that could lead to the misuse of JPMorganChase's systems or client and customer information, and •integrating acquired businesses where system integration may be complex or may require extensive and lengthy remediation or enhancement of controls. A successful penetration or circumvention of the security of JPMorganChase's systems or the systems of a vendor, governmental body or another market participant could cause serious negative consequences, including: •significant disruption of JPMorganChase's operations and those of its clients, customers and counterparties, including losing access to operational systems•misappropriation of confidential information of JPMorganChase or that of its clients, customers, counterparties, employees or regulators•disruption of or damage to JPMorganChase's systems and those of its clients, customers and counterparties•the inability, or extended delays in the ability, to fully recover and restore data that has been stolen, manipulated or destroyed, or the inability to prevent systems from processing fraudulent transactions•demands that JPMorganChase pay a ransom to a malicious actor that has perpetrated a cybersecurity breach•unintended violations by JPMorganChase of applicable privacy and other laws•financial loss to JPMorganChase or to its clients, customers, counterparties or employees•losses to JPMorganChase in excess of cyber insurance policy coverage•loss of confidence in JPMorganChase's cybersecurity and business resiliency measures•dissatisfaction among JPMorganChase's clients, customers or counterparties•significant exposure to litigation and regulatory fines, penalties or other sanctions, and•harm to JPMorganChase's reputation.The extent of a particular cyber attack, the methods and tools used by various actors, and the steps that JPMorganChase may need to take to investigate the attack may not be immediately clear, and it may take a significant amount of time before such an investigation can be completed. While such an investigation is ongoing, JPMorganChase may not necessarily know the full extent of the harm caused by the cyber attack, and that damage may continue to spread. These factors may inhibit JPMorganChase's ability to provide rapid, full and reliable information about the cyber attack to its clients, customers, counterparties and regulators, as well as the public. Furthermore, it may not be clear how best to contain and remediate the harm caused by the cyber attack, and certain errors or actions could be repeated or compounded before they are discovered and remediated. Any or all of these factors could further increase the costs and consequences of a cyber attack.JPMorganChase can be negatively affected if it fails to identify and address operational risks associated with the introduction of or changes to products, services and delivery platforms or the adoption of new technologies.When JPMorganChase launches a new product or service, introduces a new platform for the delivery or counterparties, including losing access to operational systems •misappropriation of confidential information of JPMorganChase or that of its clients, customers, counterparties, employees or regulators •disruption of or damage to JPMorganChase's systems and those of its clients, customers and counterparties •the inability, or extended delays in the ability, to fully recover and restore data that has been stolen, manipulated or destroyed, or the inability to prevent systems from processing fraudulent transactions •demands that JPMorganChase pay a ransom to a malicious actor that has perpetrated a cybersecurity breach •unintended violations by JPMorganChase of applicable privacy and other laws •financial loss to JPMorganChase or to its clients, customers, counterparties or employees •losses to JPMorganChase in excess of cyber insurance policy coverage •loss of confidence in JPMorganChase's cybersecurity and business resiliency measures •dissatisfaction among JPMorganChase's clients, customers or counterparties •significant exposure to litigation and regulatory fines, penalties or other sanctions, and •harm to JPMorganChase's reputation. The extent of a particular cyber attack, the methods and tools used by various actors, and the steps that JPMorganChase may need to take to investigate the attack may not be immediately clear, and it may take a significant amount of time before such an investigation can be completed. While such an investigation is ongoing, JPMorganChase may not necessarily know the full extent of the harm caused by the cyber attack, and that damage may continue to spread. These factors may inhibit JPMorganChase's ability to provide rapid, full and reliable information about the cyber attack to its clients, customers, counterparties and regulators, as well as the public. Furthermore, it may not be clear how best to contain and remediate the harm caused by the cyber attack, and certain errors or actions could be repeated or compounded before they are discovered and remediated. Any or all of these factors could further increase the costs and consequences of a cyber attack. **Current (2026):** JPMorganChase experiences numerous cyber attacks on its computer systems, software, networks and other technology assets. Cyber attacks could take many forms, and may be designed to: •introduce computer viruses or malicious code (i.e., "malware") into JPMorganChase's systems. •obtain unauthorized access to JPMorganChase's systems or to confidential information belonging to 21 21 21 21 Part I Part I JPMorganChase or its clients, customers, counterparties or employees•manipulate or destroy data•disrupt, sabotage or degrade service on JPMorganChase's systems and websites, including those that provide online banking and other services•steal money, or•extort money through the use of so-called "ransomware."Threat actors that perpetrate cyber attacks include individuals or groups that are:•sponsored by, or acting on behalf of, hostile countries or terrorist organizations•cyber-criminals, or•engaged in using technology to promote a political or social agenda (i.e., "hacktivists").JPMorganChase has experienced security breaches due to cyber attacks in the past, and future breaches are inevitable. Any such breach could result in serious and harmful consequences for JPMorganChase or its clients and customers.JPMorganChase cannot guarantee that it will always detect cybersecurity threats to its systems or implement effective preventive measures against those threats. The reasons for this include:•the techniques used in cyber attacks evolve frequently and increase in sophistication, and therefore a cyber attack may not be recognized until launched or may go undetected for extended periods•it is possible that a third-party, after establishing a foothold on an internal network without being detected, may gain access to other networks and systems•cyber attacks can originate from a wide variety of sources, including certain threat actors that are well-resourced and can sustain malicious activities for extended periods, and •JPMorganChase does not have control over the cybersecurity of the systems of the numerous clients, customers, counterparties and third-party service providers with which it does business.The cybersecurity risks that JPMorganChase faces could be intensified by factors such as:•increased volume and complexity of cyber attacks during periods of heightened geopolitical tensions•technological advances such as artificial intelligence ("AI") and quantum computing that may enable malicious actors to develop more advanced social engineering attacks, including targeted phishing attacks, and•technological advances which may counteract or nullify existing information security protections, including cryptographic protections, potentially exposing data. In addition, JPMorganChase could be required to make significant investments in technology in order to transition effectively to more robust security protections, including quantum-resistant encryption. Any such transition may not be completed before relevant threats become operational, and JPMorganChase's interconnectedness with third parties who may be slower to adopt such protections could further increase its vulnerability to data compromise.Furthermore, a third-party could misappropriate confidential information obtained by intercepting signals or communications from mobile devices used by JPMorganChase's employees.JPMorganChase could become increasingly vulnerable to cyber attacks if it does not, in a timely manner, identify and address emerging threats, known vulnerabilities or shortcomings in its cybersecurity controls, or if it fails to prioritize or complete enhancements to address them particularly in jurisdictions that could pose a heightened risk to its operations, including enhancements relating to:•preventing unauthorized access and protecting against the misuse of access, including the maintenance and enhancement of controls related to secure software development practices and identity and access management, including controls relating to the management of administrative access to systems•detecting, escalating and effectively addressing in a timely manner any vulnerabilities that may be present either in internally-developed software or externally-provided software or services, including vulnerabilities that could allow the attackers to exploit unknown security flaws in software and hardware (i.e., "zero-day vulnerabilities")•appropriate oversight of third-party vendors in support of the secure development and maintenance of internal software and systems•controls related to technology asset management and inventory systems to prevent undetected vulnerabilities that could undermine JPMorganChase's ability to operate an effective control process•upgrading systems and controls to protect JPMorganChase and its clients and customers from the impact of distributed denial-of-service attacks, or to recover from outages that could be caused by a malware or ransomware attack•the continuing migration of technology systems of customer and client-facing services, including digital banking and other internet-based products, to the cloud, and modernization of those services JPMorganChase or its clients, customers, counterparties or employees•manipulate or destroy data•disrupt, sabotage or degrade service on JPMorganChase's systems and websites, including those that provide online banking and other services•steal money, or•extort money through the use of so-called "ransomware."Threat actors that perpetrate cyber attacks include individuals or groups that are:•sponsored by, or acting on behalf of, hostile countries or terrorist organizations•cyber-criminals, or•engaged in using technology to promote a political or social agenda (i.e., "hacktivists").JPMorganChase has experienced security breaches due to cyber attacks in the past, and future breaches are inevitable. Any such breach could result in serious and harmful consequences for JPMorganChase or its clients and customers.JPMorganChase cannot guarantee that it will always detect cybersecurity threats to its systems or implement effective preventive measures against those threats. The reasons for this include:•the techniques used in cyber attacks evolve frequently and increase in sophistication, and therefore a cyber attack may not be recognized until launched or may go undetected for extended periods•it is possible that a third-party, after establishing a foothold on an internal network without being detected, may gain access to other networks and systems•cyber attacks can originate from a wide variety of sources, including certain threat actors that are well-resourced and can sustain malicious activities for extended periods, and •JPMorganChase does not have control over the cybersecurity of the systems of the numerous clients, customers, counterparties and third-party service providers with which it does business.The cybersecurity risks that JPMorganChase faces could be intensified by factors such as:•increased volume and complexity of cyber attacks during periods of heightened geopolitical tensions•technological advances such as artificial intelligence ("AI") and quantum computing that may enable malicious actors to develop more advanced social engineering attacks, including targeted phishing attacks, and•technological advances which may counteract or nullify existing information security protections, JPMorganChase or its clients, customers, counterparties or employees •manipulate or destroy data •disrupt, sabotage or degrade service on JPMorganChase's systems and websites, including those that provide online banking and other services •steal money, or •extort money through the use of so-called "ransomware." Threat actors that perpetrate cyber attacks include individuals or groups that are: •sponsored by, or acting on behalf of, hostile countries or terrorist organizations •cyber-criminals, or •engaged in using technology to promote a political or social agenda (i.e., "hacktivists"). JPMorganChase has experienced security breaches due to cyber attacks in the past, and future breaches are inevitable. Any such breach could result in serious and harmful consequences for JPMorganChase or its clients and customers. JPMorganChase cannot guarantee that it will always detect cybersecurity threats to its systems or implement effective preventive measures against those threats. The reasons for this include: •the techniques used in cyber attacks evolve frequently and increase in sophistication, and therefore a cyber attack may not be recognized until launched or may go undetected for extended periods •it is possible that a third-party, after establishing a foothold on an internal network without being detected, may gain access to other networks and systems •cyber attacks can originate from a wide variety of sources, including certain threat actors that are well-resourced and can sustain malicious activities for extended periods, and •JPMorganChase does not have control over the cybersecurity of the systems of the numerous clients, customers, counterparties and third-party service providers with which it does business. The cybersecurity risks that JPMorganChase faces could be intensified by factors such as: •increased volume and complexity of cyber attacks during periods of heightened geopolitical tensions •technological advances such as artificial intelligence ("AI") and quantum computing that may enable malicious actors to develop more advanced social engineering attacks, including targeted phishing attacks, and •technological advances which may counteract or nullify existing information security protections, including cryptographic protections, potentially exposing data. In addition, JPMorganChase could be required to make significant investments in technology in order to transition effectively to more robust security protections, including quantum-resistant encryption. Any such transition may not be completed before relevant threats become operational, and JPMorganChase's interconnectedness with third parties who may be slower to adopt such protections could further increase its vulnerability to data compromise.Furthermore, a third-party could misappropriate confidential information obtained by intercepting signals or communications from mobile devices used by JPMorganChase's employees.JPMorganChase could become increasingly vulnerable to cyber attacks if it does not, in a timely manner, identify and address emerging threats, known vulnerabilities or shortcomings in its cybersecurity controls, or if it fails to prioritize or complete enhancements to address them particularly in jurisdictions that could pose a heightened risk to its operations, including enhancements relating to:•preventing unauthorized access and protecting against the misuse of access, including the maintenance and enhancement of controls related to secure software development practices and identity and access management, including controls relating to the management of administrative access to systems•detecting, escalating and effectively addressing in a timely manner any vulnerabilities that may be present either in internally-developed software or externally-provided software or services, including vulnerabilities that could allow the attackers to exploit unknown security flaws in software and hardware (i.e., "zero-day vulnerabilities")•appropriate oversight of third-party vendors in support of the secure development and maintenance of internal software and systems•controls related to technology asset management and inventory systems to prevent undetected vulnerabilities that could undermine JPMorganChase's ability to operate an effective control process•upgrading systems and controls to protect JPMorganChase and its clients and customers from the impact of distributed denial-of-service attacks, or to recover from outages that could be caused by a malware or ransomware attack•the continuing migration of technology systems of customer and client-facing services, including digital banking and other internet-based products, to the cloud, and modernization of those services including cryptographic protections, potentially exposing data. In addition, JPMorganChase could be required to make significant investments in technology in order to transition effectively to more robust security protections, including quantum-resistant encryption. Any such transition may not be completed before relevant threats become operational, and JPMorganChase's interconnectedness with third parties who may be slower to adopt such protections could further increase its vulnerability to data compromise. Furthermore, a third-party could misappropriate confidential information obtained by intercepting signals or communications from mobile devices used by JPMorganChase's employees. JPMorganChase could become increasingly vulnerable to cyber attacks if it does not, in a timely manner, identify and address emerging threats, known vulnerabilities or shortcomings in its cybersecurity controls, or if it fails to prioritize or complete enhancements to address them particularly in jurisdictions that could pose a heightened risk to its operations, including enhancements relating to: •preventing unauthorized access and protecting against the misuse of access, including the maintenance and enhancement of controls related to secure software development practices and identity and access management, including controls relating to the management of administrative access to systems •detecting, escalating and effectively addressing in a timely manner any vulnerabilities that may be present either in internally-developed software or externally-provided software or services, including vulnerabilities that could allow the attackers to exploit unknown security flaws in software and hardware (i.e., "zero-day vulnerabilities") •appropriate oversight of third-party vendors in support of the secure development and maintenance of internal software and systems •controls related to technology asset management and inventory systems to prevent undetected vulnerabilities that could undermine JPMorganChase's ability to operate an effective control process •upgrading systems and controls to protect JPMorganChase and its clients and customers from the impact of distributed denial-of-service attacks, or to recover from outages that could be caused by a malware or ransomware attack •the continuing migration of technology systems of customer and client-facing services, including digital banking and other internet-based products, to the cloud, and modernization of those services 22 22 22 22 •strengthening network security and managing outbound connections to reduce the risk of data loss•identifying, assessing and mitigating insider threat activities that could lead to the misuse of JPMorganChase's systems or client and customer information, and•integrating acquired businesses, including where system integration may be complex or may require extensive and lengthy remediation or enhancement of controls.Any of the above cybersecurity risks to which JPMorganChase may be exposed could also affect JPMorganChase's vendors or other third parties with which it does business or is interconnected, including governmental entities and other market participants. A successful circumvention of JPMorganChase's systems of any of those third parties could cause serious negative consequences, including:•significant disruption of or loss of access to JPMorganChase's operational systems and those of its clients, customers and counterparties•misappropriation of confidential information of JPMorganChase or that of its clients, customers, counterparties, employees, regulators or other parties•disruption of or damage to JPMorganChase's systems and those of its clients, customers and counterparties•the inability, or extended delays in the ability, to fully recover and restore affected data, or the inability to prevent systems from processing fraudulent transactions•demands that JPMorganChase pay a ransom to a malicious actor that has perpetrated a cybersecurity breach•unintended violations by JPMorganChase of applicable privacy and other laws•financial loss to JPMorganChase outside of cyber insurance policy coverage, or losses to its clients, customers, counterparties or employees•loss of confidence in JPMorganChase's cybersecurity and business resiliency measures•significant exposure to litigation, investigations by governmental authorities and penalties, and•reputational harm.The extent of a particular cyber attack, the methods used by threat actors, and the steps that JPMorganChase may need to take to investigate the attack may not be immediately clear, and it could take a significant amount of time before such an investigation can be completed. While such an investigation is ongoing, JPMorganChase may not know the full extent of the harm caused by the cyber attack, and that damage could continue to spread. These factors could inhibit JPMorganChase's ability to provide rapid, full and reliable information about the cyber attack to its clients, customers, counterparties and regulators, as well as the public. Furthermore, it may not be clear how best to contain and remediate the harm caused by the cyber attack, and certain errors or actions could be repeated or compounded before they are discovered and remediated. Any or all of these factors could further increase the costs and consequences of a cyber attack.JPMorganChase's businesses could be adversely affected if it fails to identify and address operational risks associated with the introduction of or changes to products, services, delivery platforms or technologies.JPMorganChase may not always identify or recognize the full extent of operational risks that could arise from:•the introduction of a new product or service, including platforms for the delivery or distribution of products or services •the acquisition or integration of, or investment in, a new business, product or portfolio, including the development of any related technological capabilities•the adoption of a new technology, or•changes to existing products, services, delivery platforms, businesses and technologies.Any significant failure by JPMorganChase to identify the operational risks associated with these types of changes, or to implement adequate controls to mitigate those risks, has resulted and could in the future result in:•hindering JPMorganChase's ability to operate its businesses•potential liability to clients, counterparties and customers •impairment of JPMorganChase's liquidity •weaker competitive standing •higher compliance, operational or integration costs •regulatory intervention•losses from fraudulent transactions•higher litigation costs and penalties, or •reputational harm. Any of the foregoing consequences could materially and adversely affect JPMorganChase's businesses and results of operations. JPMorganChase's business and operations rely on appropriate staffing and on the competence, trustworthiness, health and safety of employees.JPMorganChase's ability to operate its businesses efficiently and profitably, to offer products and services that meet the expectations of its clients and customers, •strengthening network security and managing outbound connections to reduce the risk of data loss•identifying, assessing and mitigating insider threat activities that could lead to the misuse of JPMorganChase's systems or client and customer information, and•integrating acquired businesses, including where system integration may be complex or may require extensive and lengthy remediation or enhancement of controls.Any of the above cybersecurity risks to which JPMorganChase may be exposed could also affect JPMorganChase's vendors or other third parties with which it does business or is interconnected, including governmental entities and other market participants. A successful circumvention of JPMorganChase's systems of any of those third parties could cause serious negative consequences, including:•significant disruption of or loss of access to JPMorganChase's operational systems and those of its clients, customers and counterparties•misappropriation of confidential information of JPMorganChase or that of its clients, customers, counterparties, employees, regulators or other parties•disruption of or damage to JPMorganChase's systems and those of its clients, customers and counterparties•the inability, or extended delays in the ability, to fully recover and restore affected data, or the inability to prevent systems from processing fraudulent transactions•demands that JPMorganChase pay a ransom to a malicious actor that has perpetrated a cybersecurity breach•unintended violations by JPMorganChase of applicable privacy and other laws•financial loss to JPMorganChase outside of cyber insurance policy coverage, or losses to its clients, customers, counterparties or employees•loss of confidence in JPMorganChase's cybersecurity and business resiliency measures•significant exposure to litigation, investigations by governmental authorities and penalties, and•reputational harm.The extent of a particular cyber attack, the methods used by threat actors, and the steps that JPMorganChase may need to take to investigate the attack may not be immediately clear, and it could take a significant amount of time before such an investigation can be completed. While such an investigation is ongoing, JPMorganChase may not know the full extent of the harm caused by the cyber attack, and that damage could continue to spread. These factors could •strengthening network security and managing outbound connections to reduce the risk of data loss •identifying, assessing and mitigating insider threat activities that could lead to the misuse of JPMorganChase's systems or client and customer information, and •integrating acquired businesses, including where system integration may be complex or may require extensive and lengthy remediation or enhancement of controls. Any of the above cybersecurity risks to which JPMorganChase may be exposed could also affect JPMorganChase's vendors or other third parties with which it does business or is interconnected, including governmental entities and other market participants. A successful circumvention of JPMorganChase's systems of any of those third parties could cause serious negative consequences, including: •significant disruption of or loss of access to JPMorganChase's operational systems and those of its clients, customers and counterparties •misappropriation of confidential information of JPMorganChase or that of its clients, customers, counterparties, employees, regulators or other parties •disruption of or damage to JPMorganChase's systems and those of its clients, customers and counterparties •the inability, or extended delays in the ability, to fully recover and restore affected data, or the inability to prevent systems from processing fraudulent transactions •demands that JPMorganChase pay a ransom to a malicious actor that has perpetrated a cybersecurity breach •unintended violations by JPMorganChase of applicable privacy and other laws •financial loss to JPMorganChase outside of cyber insurance policy coverage, or losses to its clients, customers, counterparties or employees •loss of confidence in JPMorganChase's cybersecurity and business resiliency measures •significant exposure to litigation, investigations by governmental authorities and penalties, and •reputational harm. The extent of a particular cyber attack, the methods used by threat actors, and the steps that JPMorganChase may need to take to investigate the attack may not be immediately clear, and it could take a significant amount of time before such an investigation can be completed. While such an investigation is ongoing, JPMorganChase may not know the full extent of the harm caused by the cyber attack, and that damage could continue to spread. These factors could inhibit JPMorganChase's ability to provide rapid, full and reliable information about the cyber attack to its clients, customers, counterparties and regulators, as well as the public. Furthermore, it may not be clear how best to contain and remediate the harm caused by the cyber attack, and certain errors or actions could be repeated or compounded before they are discovered and remediated. Any or all of these factors could further increase the costs and consequences of a cyber attack.JPMorganChase's businesses could be adversely affected if it fails to identify and address operational risks associated with the introduction of or changes to products, services, delivery platforms or technologies.JPMorganChase may not always identify or recognize the full extent of operational risks that could arise from:•the introduction of a new product or service, including platforms for the delivery or distribution of products or services •the acquisition or integration of, or investment in, a new business, product or portfolio, including the development of any related technological capabilities•the adoption of a new technology, or•changes to existing products, services, delivery platforms, businesses and technologies.Any significant failure by JPMorganChase to identify the operational risks associated with these types of changes, or to implement adequate controls to mitigate those risks, has resulted and could in the future result in:•hindering JPMorganChase's ability to operate its businesses•potential liability to clients, counterparties and customers •impairment of JPMorganChase's liquidity •weaker competitive standing •higher compliance, operational or integration costs •regulatory intervention•losses from fraudulent transactions•higher litigation costs and penalties, or •reputational harm. Any of the foregoing consequences could materially and adversely affect JPMorganChase's businesses and results of operations. JPMorganChase's business and operations rely on appropriate staffing and on the competence, trustworthiness, health and safety of employees.JPMorganChase's ability to operate its businesses efficiently and profitably, to offer products and services that meet the expectations of its clients and customers, inhibit JPMorganChase's ability to provide rapid, full and reliable information about the cyber attack to its clients, customers, counterparties and regulators, as well as the public. Furthermore, it may not be clear how best to contain and remediate the harm caused by the cyber attack, and certain errors or actions could be repeated or compounded before they are discovered and remediated. Any or all of these factors could further increase the costs and consequences of a cyber attack. --- ## Modified Risk: Investing activities **Key changes:** - Updated: "The Firm's investing activities predominantly include originating held-for-investment loans, and investing in the investment securities portfolio and other short-term instruments." - Removed: "•In 2023, cash provided resulted from net proceeds from investment securities, proceeds from sales and securitizations of loans held-for-investment, and lower securities purchased under resale agreements, largely offset by net originations of loans and net cash used in the First Republic Bank acquisition." **Prior (2025):** The Firm's investing activities predominantly include originating held-for-investment loans, investing in the investment securities portfolio and other short-term instruments. •In 2024, cash used resulted from net purchases of investment securities, net loan originations and higher securities purchased under resale agreements, partially offset by proceeds from sales and securitizations of loans held-for-investment. •In 2023, cash provided resulted from net proceeds from investment securities, proceeds from sales and securitizations of loans held-for-investment, and lower securities purchased under resale agreements, largely offset by net originations of loans and net cash used in the First Republic Bank acquisition. **Current (2026):** The Firm's investing activities predominantly include originating held-for-investment loans, and investing in the investment securities portfolio and other short-term instruments. •In 2025, cash used resulted from net loan originations, net purchases of investment securities and higher securities purchased under resale agreements. •In 2024, cash used resulted from net purchases of investment securities, net loan originations and higher securities purchased under resale agreements, partially offset by proceeds from sales and securitizations of loans held-for-investment. --- ## Modified Risk: Advanced Tier 2 capital **Key changes:** - Updated: "(b)As of December 31, 2025 and 2024, included a net reduction for certain deferred tax assets related to tax attribute carryforwards of $1.8 billion and $125 million, respectively, and a net benefit associated with cash flow hedges and debit valuation adjustments ("DVA") related to structured notes recorded in AOCI of $2.6 billion and $5.2 billion, respectively." - Updated: "Refer to page 132 for additional information on principal investment risk." - Updated: "(e)Represents an adjustment to qualifying allowance for credit losses for the excess of eligible credit reserves over expected credit losses up to 0.6% of credit risk RWA." **Prior (2025):** (a)Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in nontaxable transactions, which are netted against goodwill and other intangibles when calculating CET1 capital. (b)As of December 31, 2024 and 2023, included a net benefit associated with cash flow hedges and debit valuation adjustments ("DVA") related to structured notes recorded in AOCI of $5.2 billion and $4.3 billion and the benefit from the CECL capital transition provisions of $720 million and $1.4 billion, respectively. (c)Goodwill deducted from capital includes goodwill associated with equity method investments in nonconsolidated financial institutions based on regulatory requirements. Refer to page 140 for additional information on principal investment risk. (d)Represents the allowance for credit losses eligible for inclusion in Tier 2 capital up to 1.25% of credit risk RWA, including the impact of the CECL capital transition provision with any excess deducted from RWA. Refer to Note 27 for additional information on the CECL capital transition. (e)Represents an adjustment to qualifying allowance for credit losses for the excess of eligible credit reserves over expected credit losses up to 0.6% of credit risk RWA, including the impact of the CECL capital transition provision with any excess deducted from RWA. (f)As of December 31, 2024 and 2023, included an incremental $541 million and $655 million allowance for credit losses, respectively, on certain assets associated with First Republic to which the Standardized approach has been applied, as permitted by the transition provisions in the U.S. capital rules. Capital rollforward The following table presents the changes in Basel III CET1 capital, Tier 1 capital and Tier 2 capital for the year ended December 31, 2024.Year ended December 31, (in millions)2024Standardized/Advanced CET1 capital at December 31, 2023$250,585 Net income applicable to common equity57,212 Dividends declared on common stock(13,786)Net purchase of treasury stock(17,801)Changes in additional paid-in capital783 Changes related to AOCI applicable to capital:Unrealized gains/(losses) on investment securities(87)Translation adjustments, net of hedges(a)(858)Fair value hedges(87)Defined benefit pension and other postretirement employee benefit ("OPEB") plans(63)Changes related to other CET1 capital adjustments(b)(385)Change in Standardized/Advanced CET1 capital24,928 Standardized/Advanced CET1 capital at December 31, 2024$275,513 Standardized/Advanced Tier 1 capital at December 31, 2023$277,306 Change in CET1 capital(b)24,928 Net redemptions of noncumulative perpetual preferred stock(7,354)Other1 Change in Standardized/Advanced Tier 1 capital17,575 Standardized/Advanced Tier 1 capital at December 31, 2024$294,881 Standardized Tier 2 capital at December 31, 2023$31,191 Change in long-term debt and other instruments qualifying as Tier 2(1,467)Change in qualifying allowance for credit losses(b)890 Other94 Change in Standardized Tier 2 capital(483)Standardized Tier 2 capital at December 31, 2024$30,708 Standardized Total capital at December 31, 2024$325,589 Advanced Tier 2 capital at December 31, 2023$18,111 Change in long-term debt and other instruments qualifying as Tier 2(1,467)Change in qualifying allowance for credit losses(b)(c)279 Other94 Change in Advanced Tier 2 capital(1,094)Advanced Tier 2 capital at December 31, 2024$17,017 Advanced Total capital at December 31, 2024$311,898 (a)Includes foreign currency translation adjustments and the impact of related derivatives.(b)Includes the impact of the CECL capital transition provisions and the cumulative effect of changes in accounting principles. Refer to Note 1 for additional information on changes in accounting principles and Note 27 for additional information on the CECL capital transition provisions.(c)As of December 31, 2024 and 2023, included an incremental $541 million and $655 million allowance for credit losses, respectively, on certain assets associated with First Republic to which the Standardized approach has been applied, as permitted by the transition provisions in the U.S. capital rules. Capital rollforward The following table presents the changes in Basel III CET1 capital, Tier 1 capital and Tier 2 capital for the year ended December 31, 2024. Year ended December 31, (in millions)2024Standardized/Advanced CET1 capital at December 31, 2023$250,585 Net income applicable to common equity57,212 Dividends declared on common stock(13,786)Net purchase of treasury stock(17,801)Changes in additional paid-in capital783 Changes related to AOCI applicable to capital:Unrealized gains/(losses) on investment securities(87)Translation adjustments, net of hedges(a)(858)Fair value hedges(87)Defined benefit pension and other postretirement employee benefit ("OPEB") plans(63)Changes related to other CET1 capital adjustments(b)(385)Change in Standardized/Advanced CET1 capital24,928 Standardized/Advanced CET1 capital at December 31, 2024$275,513 Standardized/Advanced Tier 1 capital at December 31, 2023$277,306 Change in CET1 capital(b)24,928 Net redemptions of noncumulative perpetual preferred stock(7,354)Other1 Change in Standardized/Advanced Tier 1 capital17,575 Standardized/Advanced Tier 1 capital at December 31, 2024$294,881 Standardized Tier 2 capital at December 31, 2023$31,191 Change in long-term debt and other instruments qualifying as Tier 2(1,467)Change in qualifying allowance for credit losses(b)890 Other94 Change in Standardized Tier 2 capital(483)Standardized Tier 2 capital at December 31, 2024$30,708 Standardized Total capital at December 31, 2024$325,589 Advanced Tier 2 capital at December 31, 2023$18,111 Change in long-term debt and other instruments qualifying as Tier 2(1,467)Change in qualifying allowance for credit losses(b)(c)279 Other94 Change in Advanced Tier 2 capital(1,094)Advanced Tier 2 capital at December 31, 2024$17,017 Advanced Total capital at December 31, 2024$311,898 Standardized/Advanced CET1 capital at December 31, 2023 Net purchase of treasury stock Changes in additional paid-in capital Translation adjustments, net of hedges(a) Changes related to other CET1 capital adjustments(b) **Current (2026):** (a)Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in nontaxable transactions, which are netted against goodwill and other intangibles when calculating CET1 capital. (b)As of December 31, 2025 and 2024, included a net reduction for certain deferred tax assets related to tax attribute carryforwards of $1.8 billion and $125 million, respectively, and a net benefit associated with cash flow hedges and debit valuation adjustments ("DVA") related to structured notes recorded in AOCI of $2.6 billion and $5.2 billion, respectively. As of January 1, 2025, the benefit from the CECL capital transition provision had been fully phased out. The year ended December 31, 2024 included benefit from the CECL capital transitions of $720 million. (c)Goodwill deducted from capital includes goodwill associated with equity method investments in nonconsolidated financial institutions based on regulatory requirements. Refer to page 132 for additional information on principal investment risk. (d)Represents the allowance for credit losses eligible for inclusion in Tier 2 capital up to 1.25% of credit risk RWA. As of January 1, 2025, the benefit from the CECL capital transition provision had been fully phased out. The year ended December 31, 2024 included the impact of the CECL capital transition provision with any excess deducted from RWA. Refer to Note 27 for additional information on the CECL capital transition. (e)Represents an adjustment to qualifying allowance for credit losses for the excess of eligible credit reserves over expected credit losses up to 0.6% of credit risk RWA. As of January 1, 2025, the benefit from the CECL capital transition provision had been fully phased out. The year ended December 31, 2024 included the impact of the CECL capital transition provision with any excess deducted from RWA. (f)As of December 31, 2025 and 2024, included an incremental $468 million and $541 million allowance for credit losses, respectively, on certain assets associated with First Republic to which the Standardized approach has been applied, as permitted by the transition provisions in the U.S. capital rules. Capital rollforwardThe following table presents the changes in CET1 capital, Tier 1 capital and Tier 2 capital for the year ended December 31, 2025.Year ended December 31, (in millions)2025Standardized/Advanced CET1 capital at December 31, 2024$275,513 Net income applicable to common equity55,949 Dividends declared on common stock(16,060)Net purchase of treasury stock(30,573)Changes in additional paid-in capital203 Changes related to AOCI applicable to capital:Unrealized gains/(losses) on investment securities3,569 Translation adjustments, net of hedges(a)1,339 Fair value hedges64 Defined benefit pension and other postretirement employee benefit ("OPEB") plans579 Changes related to other CET1 capital adjustments(b)(2,114)Change in Standardized/Advanced CET1 capital12,956 Standardized/Advanced CET1 capital at December 31, 2025$288,469 Standardized/Advanced Tier 1 capital at December 31, 2024$294,881 Change in CET1 capital(b)12,956 Net redemptions of noncumulative perpetual preferred stock(5)Other(202)Change in Standardized/Advanced Tier 1 capital12,749 Standardized/Advanced Tier 1 capital at December 31, 2025$307,630 Standardized Tier 2 capital at December 31, 2024$30,708 Change in long-term debt and other instruments qualifying as Tier 2(c)3,227 Change in qualifying allowance for credit losses(b)2,741 Other(463)Change in Standardized Tier 2 capital5,505 Standardized Tier 2 capital at December 31, 2025$36,213 Standardized Total capital at December 31, 2025$343,843 Advanced Tier 2 capital at December 31, 2024$17,017 Change in long-term debt and other instruments qualifying as Tier 2(c)3,227 Change in qualifying allowance for credit losses(b)(d)1,551 Other(463)Change in Advanced Tier 2 capital4,315 Advanced Tier 2 capital at December 31, 2025$21,332 Advanced Total capital at December 31, 2025$328,962 (a)Includes foreign currency translation adjustments and the impact of related derivatives.(b)Reflects the final phase out of the CECL benefit as well as deductions for certain deferred tax assets related to tax attribute carryforwards. Refer to Note 27 for additional information on the CECL capital transition.(c)Includes issuance of $4.0 billion of subordinated notes due 2036. Refer to Long-term funding on page 106 and Note 20 for additional information on the Firm's subordinated debt.(d)As of December 31, 2025 and 2024, included an incremental $468 million and $541 million allowance for credit losses, respectively, on certain assets associated with First Republic to which the Standardized approach has been applied, as permitted by the transition provisions in the U.S. capital rules. Capital rollforward The following table presents the changes in CET1 capital, Tier 1 capital and Tier 2 capital for the year ended December 31, 2025. Year ended December 31, (in millions)2025Standardized/Advanced CET1 capital at December 31, 2024$275,513 Net income applicable to common equity55,949 Dividends declared on common stock(16,060)Net purchase of treasury stock(30,573)Changes in additional paid-in capital203 Changes related to AOCI applicable to capital:Unrealized gains/(losses) on investment securities3,569 Translation adjustments, net of hedges(a)1,339 Fair value hedges64 Defined benefit pension and other postretirement employee benefit ("OPEB") plans579 Changes related to other CET1 capital adjustments(b)(2,114)Change in Standardized/Advanced CET1 capital12,956 Standardized/Advanced CET1 capital at December 31, 2025$288,469 Standardized/Advanced Tier 1 capital at December 31, 2024$294,881 Change in CET1 capital(b)12,956 Net redemptions of noncumulative perpetual preferred stock(5)Other(202)Change in Standardized/Advanced Tier 1 capital12,749 Standardized/Advanced Tier 1 capital at December 31, 2025$307,630 Standardized Tier 2 capital at December 31, 2024$30,708 Change in long-term debt and other instruments qualifying as Tier 2(c)3,227 Change in qualifying allowance for credit losses(b)2,741 Other(463)Change in Standardized Tier 2 capital5,505 Standardized Tier 2 capital at December 31, 2025$36,213 Standardized Total capital at December 31, 2025$343,843 Advanced Tier 2 capital at December 31, 2024$17,017 Change in long-term debt and other instruments qualifying as Tier 2(c)3,227 Change in qualifying allowance for credit losses(b)(d)1,551 Other(463)Change in Advanced Tier 2 capital4,315 Advanced Tier 2 capital at December 31, 2025$21,332 Advanced Total capital at December 31, 2025$328,962 Standardized/Advanced CET1 capital at December 31, 2024 Net purchase of treasury stock Changes in additional paid-in capital Translation adjustments, net of hedges(a) Changes related to other CET1 capital adjustments(b) --- ## Modified Risk: Changes in the requirements for the regulatory evaluation of JPMorganChase's resolution plan could increase its funding or operational costs or require restructuring or curtailment of its businesses. **Key changes:** - Updated: "JPMorganChase must periodically submit a detailed resolution plan to the Federal Reserve and the FDIC for its rapid and orderly resolution in bankruptcy, without extraordinary government support, in the event of material financial distress or failure." - Updated: "Claims of the Parent Company's shareholders and unsecured creditors would have a junior position to the claims of creditors of JPMorganChase's subsidiaries and to the claims of priority (as determined by statute) and secured creditors of the Parent Company.Accordingly, in a resolution of the Parent Company in bankruptcy, unsecured creditors of the Parent Company, including holders of eligible LTD of the Parent Company, would realize value only to the extent available to the Parent Company as a shareholder of JPMorgan Chase Bank, N.A." **Prior (2025):** Federal Reserve rules require that JPMorgan Chase & Co. (the "Parent Company") maintain minimum levels of unsecured external long-term debt and other loss-absorbing capacity with specific terms ("eligible LTD") for purposes of recapitalizing JPMorganChase's operating subsidiaries if the Parent Company were to enter into a resolution either: •in a bankruptcy proceeding under Chapter 11 of the U.S. Bankruptcy Code, or •in a receivership administered by the FDIC under Title II of the Dodd-Frank Act ("Title II"). 14 14 14 14 If the Parent Company were to enter into a resolution, holders of eligible LTD, other unsecured creditors and holders of equity securities of the Parent Company will absorb the losses of the Parent Company and its subsidiaries. The preferred "single point of entry" strategy under JPMorganChase's resolution plan contemplates that the Parent Company would enter bankruptcy proceedings and JPMorganChase's material subsidiaries would be recapitalized, as needed, so that they could continue normal operations or subsequently be divested or wound down in an orderly manner. As a result, the Parent Company's losses and any losses incurred by its subsidiaries would be imposed first on holders of the Parent Company's equity securities and thereafter on its unsecured creditors, including holders of eligible LTD. Claims of the Parent Company's shareholders and unsecured creditors would have a junior position to the claims of creditors of JPMorganChase's subsidiaries and to the claims of priority (as determined by statute) and secured creditors of the Parent Company. Accordingly, in a resolution of the Parent Company in bankruptcy, unsecured creditors of the Parent Company, including holders of eligible LTD of the Parent Company, would realize value only to the extent available to the Parent Company as a shareholder of JPMorgan Chase Bank, N.A. and its other subsidiaries, and only after any claims of priority and secured creditors of the Parent Company have been fully repaid. The FDIC has similarly indicated that a single point of entry recapitalization model would be its expected strategy to resolve a systemically important financial institution, such as the Parent Company, under Title II. However, the FDIC has not formally adopted or committed to any specific resolution strategy. If the Parent Company were to approach, or enter into, a resolution, none of the Parent Company, the Federal Reserve or the FDIC is obligated to follow JPMorganChase's preferred resolution strategy, and losses to unsecured creditors of the Parent Company, including holders of eligible LTD, and to holders of equity securities of the Parent Company, under whatever strategy is ultimately followed, could be greater than they might have been under JPMorganChase's preferred strategy. PoliticalEconomic uncertainty or instability caused by political and geopolitical developments can negatively impact JPMorganChase's businesses.Political developments in the U.S. and other countries can cause uncertainty in the economic environment and market conditions in which JPMorganChase operates its businesses. Certain governmental policy initiatives, as well as heightened geopolitical tensions, could significantly affect U.S. and global economic growth and cause higher volatility in the financial markets, including:•monetary policies and actions taken by the Federal Reserve and other central banks or governmental authorities, including changes in interest rate levels and any sustained large-scale asset purchases or any suspension or reversal of those actions•fiscal policies, including with respect to taxation and spending•isolationist foreign policies•economic or financial sanctions•the implementation of tariffs and other protectionist trade policies•changes to immigration policies, or•actions that the government takes or fails to take in response to the effects of health emergencies, the spread of infectious diseases, epidemics or pandemics.These types of political developments, and uncertainty about the possible outcomes of these developments, could:•erode investor or consumer confidence in the U.S. economy and financial markets, which could potentially undermine the status of the U.S. dollar as a safe haven currency•provoke retaliatory countermeasures by other countries and otherwise heighten tensions in regulatory, enforcement or diplomatic relations•increase the risk of targeted cyber attacks•increase concerns about whether the U.S. government will be funded, and its outstanding debt serviced, at any particular time•result in periodic shutdowns of the U.S. government •influence investor perceptions concerning government support of certain sectors of the economy or the economy as a whole•influence monetary policy actions of the Federal Reserve to moderate the economic impact of political developments, including decisions on interest rate levels and asset purchases and sales•adversely affect the financial condition or credit ratings of clients and counterparties with which JPMorganChase does business, or•cause JPMorganChase to refrain from engaging in business opportunities that it might otherwise pursue.These factors could lead to:•slower growth rates, rising inflation or recession•disruptions in labor markets•greater market volatility If the Parent Company were to enter into a resolution, holders of eligible LTD, other unsecured creditors and holders of equity securities of the Parent Company will absorb the losses of the Parent Company and its subsidiaries. The preferred "single point of entry" strategy under JPMorganChase's resolution plan contemplates that the Parent Company would enter bankruptcy proceedings and JPMorganChase's material subsidiaries would be recapitalized, as needed, so that they could continue normal operations or subsequently be divested or wound down in an orderly manner. As a result, the Parent Company's losses and any losses incurred by its subsidiaries would be imposed first on holders of the Parent Company's equity securities and thereafter on its unsecured creditors, including holders of eligible LTD. Claims of the Parent Company's shareholders and unsecured creditors would have a junior position to the claims of creditors of JPMorganChase's subsidiaries and to the claims of priority (as determined by statute) and secured creditors of the Parent Company. Accordingly, in a resolution of the Parent Company in bankruptcy, unsecured creditors of the Parent Company, including holders of eligible LTD of the Parent Company, would realize value only to the extent available to the Parent Company as a shareholder of JPMorgan Chase Bank, N.A. and its other subsidiaries, and only after any claims of priority and secured creditors of the Parent Company have been fully repaid. The FDIC has similarly indicated that a single point of entry recapitalization model would be its expected strategy to resolve a systemically important financial institution, such as the Parent Company, under Title II. However, the FDIC has not formally adopted or committed to any specific resolution strategy. If the Parent Company were to approach, or enter into, a resolution, none of the Parent Company, the Federal Reserve or the FDIC is obligated to follow JPMorganChase's preferred resolution strategy, and losses to unsecured creditors of the Parent Company, including holders of eligible LTD, and to holders of equity securities of the Parent Company, under whatever strategy is ultimately followed, could be greater than they might have been under JPMorganChase's preferred strategy. PoliticalEconomic uncertainty or instability caused by political and geopolitical developments can negatively impact JPMorganChase's businesses.Political developments in the U.S. and other countries can cause uncertainty in the economic environment and market conditions in which JPMorganChase operates its businesses. Certain governmental policy initiatives, as well as heightened geopolitical tensions, If the Parent Company were to enter into a resolution, holders of eligible LTD, other unsecured creditors and holders of equity securities of the Parent Company will absorb the losses of the Parent Company and its subsidiaries. The preferred "single point of entry" strategy under JPMorganChase's resolution plan contemplates that the Parent Company would enter bankruptcy proceedings and JPMorganChase's material subsidiaries would be recapitalized, as needed, so that they could continue normal operations or subsequently be divested or wound down in an orderly manner. As a result, the Parent Company's losses and any losses incurred by its subsidiaries would be imposed first on holders of the Parent Company's equity securities and thereafter on its unsecured creditors, including holders of eligible LTD. Claims of the Parent Company's shareholders and unsecured creditors would have a junior position to the claims of creditors of JPMorganChase's subsidiaries and to the claims of priority (as determined by statute) and secured creditors of the Parent Company. Accordingly, in a resolution of the Parent Company in bankruptcy, unsecured creditors of the Parent Company, including holders of eligible LTD of the Parent Company, would realize value only to the extent available to the Parent Company as a shareholder of JPMorgan Chase Bank, N.A. and its other subsidiaries, and only after any claims of priority and secured creditors of the Parent Company have been fully repaid. The FDIC has similarly indicated that a single point of entry recapitalization model would be its expected strategy to resolve a systemically important financial institution, such as the Parent Company, under Title II. However, the FDIC has not formally adopted or committed to any specific resolution strategy. If the Parent Company were to approach, or enter into, a resolution, none of the Parent Company, the Federal Reserve or the FDIC is obligated to follow JPMorganChase's preferred resolution strategy, and losses to unsecured creditors of the Parent Company, including holders of eligible LTD, and to holders of equity securities of the Parent Company, under whatever strategy is ultimately followed, could be greater than they might have been under JPMorganChase's preferred strategy. Political **Current (2026):** JPMorganChase must periodically submit a detailed resolution plan to the Federal Reserve and the FDIC for its rapid and orderly resolution in bankruptcy, without extraordinary government support, in the event of material financial distress or failure. The regulatory requirements concerning resolution plans and the evaluation of JPMorganChase's resolution plan by the banking regulators could change over time. Any such changes could result in JPMorganChase making changes to its legal entity structure or to certain of its internal or external activities, which could increase its funding or operational costs, or hamper its ability to serve clients and customers. If the Federal Reserve and the FDIC were both to determine that a resolution plan submitted by JPMorganChase has deficiencies, they could jointly impose more stringent capital, leverage or liquidity requirements, or restrictions on JPMorganChase's growth, activities or operations. The banking regulators could also require that JPMorganChase restructure, reorganize or divest assets or businesses in ways that could materially and adversely affect JPMorganChase's operations and strategy. Holders of JPMorgan Chase & Co.'s debt and equity securities will absorb losses if it were to enter into a resolution.Federal Reserve rules require JPMorgan Chase & Co. (the "Parent Company") to maintain minimum levels of unsecured external long-term debt and other loss-absorbing capacity with specific terms ("eligible LTD") to recapitalize JPMorganChase's operating subsidiaries if the Parent Company were to enter into a resolution either in a bankruptcy proceeding under Chapter 11 of the U.S. Bankruptcy Code, or in a receivership administered by the FDIC under Title II of the Dodd-Frank Act ("Title II"). If the Parent Company were to enter into a resolution, holders of eligible LTD, other unsecured creditors and holders of equity securities of the Parent Company will absorb the losses of the Parent Company and its subsidiaries.The preferred "single point of entry" strategy under JPMorganChase's resolution plan contemplates that the Parent Company would enter bankruptcy proceedings and JPMorganChase's material subsidiaries would be recapitalized, as needed, so that they could continue normal operations or subsequently be divested or wound down in an orderly manner. As a result, the Parent Company's losses and any losses incurred by its subsidiaries would be imposed first on holders of the Parent Company's equity securities and thereafter on its unsecured creditors, including holders of eligible LTD. Claims of the Parent Company's shareholders and unsecured creditors would have a junior position to the claims of creditors of JPMorganChase's subsidiaries and to the claims of priority (as determined by statute) and secured creditors of the Parent Company.Accordingly, in a resolution of the Parent Company in bankruptcy, unsecured creditors of the Parent Company, including holders of eligible LTD of the Parent Company, would realize value only to the extent available to the Parent Company as a shareholder of JPMorgan Chase Bank, N.A. and its other subsidiaries, and only after any claims of priority and secured creditors of the Parent Company have been fully repaid.The FDIC has similarly indicated that a single point of entry recapitalization model would be its expected strategy to resolve a systemically important financial institution, such as the Parent Company, under Title II. However, the FDIC has not formally adopted or committed to any specific resolution strategy.If the Parent Company were to approach, or enter into, a resolution, none of the Parent Company, the Federal Reserve or the FDIC is obligated to follow JPMorganChase's preferred resolution strategy, and losses to unsecured creditors of the Parent Company, including holders of eligible LTD, and to holders of equity securities of the Parent Company, under whatever strategy is ultimately followed, could be --- ## Modified Risk: Portfolio analysis **Key changes:** - Updated: "Loans increased compared to December 31, 2024, primarily driven by higher residential real estate loans at fair value." - Updated: "Retained loans decreased compared to December 31, 2024, driven by paydowns, predominantly offset by originations." - Updated: "The carrying value of retained home equity lines of credit outstanding was $13.2 billion at December 31, 2025, including $3.3 billion of HELOCs that have recast from interest-only to fully amortizing payments or have been modified, and $3.2 billion of interest-only balloon HELOCs, which primarily mature after 2030." - Updated: "(in millions)December 31, 2025December 31, 2024Current$840 $462 30-89 days past due121 72 90 or more days past due198 121 Total government guaranteed loans$1,159 $655 Geographic composition and current estimated loan-to-value ratio of residential real estate loansAt December 31, 2025, $213.1 billion, or 70%, of the total retained residential real estate loan portfolio, was concentrated in California, New York, Florida, Texas and Massachusetts, compared to $217.7 billion, or 70%, at December 31, 2024.Average current estimated loan-to-value ("LTV") ratios were relatively flat compared to December 31, 2024.Refer to Note 12 for information on the geographic composition and current estimated LTVs of the Firm's residential real estate loans." - Updated: "(in millions)December 31, 2025December 31, 2024Current$840 $462 30-89 days past due121 72 90 or more days past due198 121 Total government guaranteed loans$1,159 $655" **Prior (2025):** Loans decreased from December 31, 2023 driven by residential real estate loans and scored auto loans. The following discussions provide information concerning individual loan products. Refer to Note 12 for further information about this portfolio, including information about delinquencies, loan modifications and other credit quality indicators. Residential real estate: The residential real estate portfolio, including loans held-for-sale and loans at fair value, predominantly consists of prime mortgage loans and home equity lines of credit. Retained loans decreased compared to December 31, 2023, predominantly driven by paydowns and loan sales, net of originations. Retained nonaccrual loans decreased compared to December 31, 2023, predominantly driven by loan sales. Net recoveries were higher for the year ended December 31, 2024 compared to the prior year, driven by loan sales. Loans held-for-sale and nonaccrual loans held-for-sale increased from December 31, 2023, predominantly driven by transfers of certain retained loans in anticipation of securitization and loan sales, respectively. Loans at fair value increased from December 31, 2023, predominantly driven by higher Home Lending loans, as originations outpaced warehouse loan sales. Nonaccrual loans at fair value increased compared to December 31, 2023, driven by CIB. At December 31, 2024 and 2023, the carrying values of retained interest-only residential mortgage loans were $88.9 billion and $90.6 billion, respectively. These loans have an interest-only payment period generally followed by an adjustable-rate or fixed-rate fully amortizing payment period to maturity and are typically originated as higher-balance loans to higher-income borrowers. The credit performance of this portfolio is comparable to the performance of the broader prime mortgage portfolio. The carrying value of retained home equity lines of credit outstanding was $14.5 billion at December 31, 2024, including $3.8 billion of HELOCs that have recast from interest-only to fully amortizing payments or have been modified, and $3.6 billion of interest-only balloon HELOCs, which primarily mature after 2030. The Firm manages the risk of HELOCs during their revolving period by reducing or canceling the undrawn line in accordance with the contract or to the extent otherwise permitted by law, including when there has been a demonstrable decline in the creditworthiness of the borrower or significant decrease in the value of the underlying property. The following table provides a summary of the Firm'sresidential mortgage portfolio insured and/or guaranteed by U.S. government agencies, predominantly loans held-for-sale and loans at fair value. The Firm monitors its exposure to certain potential unrecoverable claim payments related to government-insured loans and considers this exposure in estimating the allowance for loan losses. (in millions)December 31, 2024December 31, 2023Current$462 $446 30-89 days past due72 102 90 or more days past due121 182 Total government guaranteed loans$655 $730 Geographic composition and current estimated loan-to-value ratio of residential real estate loansAt December 31, 2024, $217.7 billion, or 70% of the total retained residential real estate loan portfolio, was concentrated in California, New York, Florida, Texas and Massachusetts, compared to $228.4 billion, or 70% at December 31, 2023.Average current estimated loan-to-value ("LTV") ratios have improved, reflecting an increase in home prices.Refer to Note 12 for information on the geographic composition and current estimated LTVs of the Firm's residential real estate loans. The following table provides a summary of the Firm's residential mortgage portfolio insured and/or guaranteed by U.S. government agencies, predominantly loans held-for-sale and loans at fair value. The Firm monitors its exposure to certain potential unrecoverable claim payments related to government-insured loans and considers this exposure in estimating the allowance for loan losses. (in millions)December 31, 2024December 31, 2023Current$462 $446 30-89 days past due72 102 90 or more days past due121 182 Total government guaranteed loans$655 $730 **Current (2026):** Loans increased compared to December 31, 2024, primarily driven by higher residential real estate loans at fair value. The following discussions provide information concerning individual loan products. Refer to Note 12 for further information about this portfolio, including information about delinquencies, loan modifications and other credit quality indicators. Residential real estate: The residential real estate portfolio, including loans held-for-sale and loans at fair value, predominantly consists of prime mortgage loans and home equity lines of credit. Retained loans decreased compared to December 31, 2024, driven by paydowns, predominantly offset by originations. Retained nonaccrual loans increased compared to December 31, 2024, primarily driven by forbearances granted to certain borrowers impacted by the wildfires in Los Angeles County, California in January 2025. Net recoveries were higher for the year ended December 31, 2025 compared to the prior year, driven by loan sales. Loans held-for-sale and nonaccrual loans held-for-sale decreased compared to December 31, 2024, reflecting loan sales. Loans at fair value increased compared to December 31, 2024, as purchases outpaced sales in CIB and originations outpaced warehouse loan sales in Home Lending. Nonaccrual loans at fair value increased compared to December 31, 2024, driven by CIB. At December 31, 2025 and 2024, the carrying values of retained interest-only residential mortgage loans were $88.8 billion and $88.9 billion, respectively. These loans have an interest-only payment period generally followed by an adjustable-rate or fixed-rate fully amortizing payment period to maturity and are typically originated as higher-balance loans to higher-income borrowers. The credit performance of this portfolio is comparable to the performance of the broader prime mortgage portfolio. The carrying value of retained home equity lines of credit outstanding was $13.2 billion at December 31, 2025, including $3.3 billion of HELOCs that have recast from interest-only to fully amortizing payments or have been modified, and $3.2 billion of interest-only balloon HELOCs, which primarily mature after 2030. The Firm manages the risk of HELOCs during their revolving period by reducing or canceling the undrawn line in accordance with the contract or to the extent otherwise permitted by law, including when there has been a demonstrable decline in the creditworthiness of the borrower or significant decrease in the value of the underlying property. The following table provides a summary of the Firm'sresidential mortgage portfolio insured and/or guaranteed by U.S. government agencies, predominantly loans held-for-sale and loans at fair value. The Firm monitors its exposure to certain potential unrecoverable claim payments related to government-insured loans and considers this exposure in estimating the allowance for loan losses. (in millions)December 31, 2025December 31, 2024Current$840 $462 30-89 days past due121 72 90 or more days past due198 121 Total government guaranteed loans$1,159 $655 Geographic composition and current estimated loan-to-value ratio of residential real estate loansAt December 31, 2025, $213.1 billion, or 70%, of the total retained residential real estate loan portfolio, was concentrated in California, New York, Florida, Texas and Massachusetts, compared to $217.7 billion, or 70%, at December 31, 2024.Average current estimated loan-to-value ("LTV") ratios were relatively flat compared to December 31, 2024.Refer to Note 12 for information on the geographic composition and current estimated LTVs of the Firm's residential real estate loans. The following table provides a summary of the Firm's residential mortgage portfolio insured and/or guaranteed by U.S. government agencies, predominantly loans held-for-sale and loans at fair value. The Firm monitors its exposure to certain potential unrecoverable claim payments related to government-insured loans and considers this exposure in estimating the allowance for loan losses. (in millions)December 31, 2025December 31, 2024Current$840 $462 30-89 days past due121 72 90 or more days past due198 121 Total government guaranteed loans$1,159 $655 --- ## Modified Risk: Operating activities **Key changes:** - Updated: "•In 2025, cash used resulted from higher trading assets, higher securities borrowed, net originations and purchases of loans held-for-sale, higher other assets and higher accrued interest and accounts receivable, partially offset by net income excluding non-cash adjustments, and higher trading liabilities." **Prior (2025):** JPMorganChase's operating assets and liabilities primarily support the Firm's lending and capital markets activities. These assets and liabilities can vary significantly in the normal course of business due to the amount and timing of cash flows, which are affected by client-driven and risk management activities and market conditions. The Firm believes that cash flows from operations, available cash and other liquidity sources, and its capacity to generate cash through secured and unsecured sources, are sufficient to meet its operating liquidity needs. •In 2024, cash used resulted from higher trading assets and higher securities borrowed, largely offset by net income. •In 2023, cash provided primarily reflected net income, lower other assets, and accrued interest and accounts receivable, predominantly offset by higher trading assets, lower accounts payable and other liabilities, and higher securities borrowed. Investing activitiesThe Firm's investing activities predominantly include originating held-for-investment loans, investing in the investment securities portfolio and other short-term instruments.•In 2024, cash used resulted from net purchases of investment securities, net loan originations and higher securities purchased under resale agreements, partially offset by proceeds from sales and securitizations of loans held-for-investment. •In 2023, cash provided resulted from net proceeds from investment securities, proceeds from sales and securitizations of loans held-for-investment, and lower securities purchased under resale agreements, largely offset by net originations of loans and net cash used in the First Republic Bank acquisition.Financing activitiesThe Firm's financing activities include acquiring customer deposits and issuing long-term debt and preferred stock.•In 2024, cash provided primarily reflected higher securities loaned or sold under repurchase agreements and net proceeds from long- and short-term borrowings, partially offset by net redemption of preferred stock.•In 2023, cash used reflected lower deposits, which included the impact of the repayment of the deposits provided to First Republic Bank by the consortium of large U.S. banks that the Firm assumed as part of the First Republic acquisition, partially offset by higher securities loaned under repurchase agreements and net proceeds from long- and short-term borrowings.•For both periods, cash was used for repurchases of common stock and cash dividends on common and preferred stock.* * *Refer to Consolidated Balance Sheets Analysis on pages 63-65, Capital Risk Management on pages 97-107, and Liquidity Risk Management on pages 108-115, and the Consolidated Statements of Cash Flows on page 176 for a further discussion of the activities affecting the Firm's cash flows. **Current (2026):** JPMorganChase's operating assets and liabilities primarily support the Firm's lending and capital markets activities. These assets and liabilities can vary significantly in the normal course of business due to the amount and timing of cash flows, which are affected by client-driven and risk management activities and market conditions. The Firm believes that cash flows from operations, available cash and other liquidity sources, and its capacity to generate cash through secured and unsecured sources, are sufficient to meet its operating liquidity needs. •In 2025, cash used resulted from higher trading assets, higher securities borrowed, net originations and purchases of loans held-for-sale, higher other assets and higher accrued interest and accounts receivable, partially offset by net income excluding non-cash adjustments, and higher trading liabilities. •In 2024, cash used resulted from higher trading assets and higher securities borrowed, largely offset by net income excluding non-cash adjustments. Investing activitiesThe Firm's investing activities predominantly include originating held-for-investment loans, and investing in the investment securities portfolio and other short-term instruments.•In 2025, cash used resulted from net loan originations, net purchases of investment securities and higher securities purchased under resale agreements. •In 2024, cash used resulted from net purchases of investment securities, net loan originations and higher securities purchased under resale agreements, partially offset by proceeds from sales and securitizations of loans held-for-investment.Financing activitiesThe Firm's financing activities include acquiring customer deposits and issuing long-term debt and preferred stock.•In 2025, cash provided primarily reflected higher deposits, higher securities loaned or sold under repurchase agreements and net proceeds from long- and short-term borrowings, •In 2024, cash provided primarily reflected higher securities loaned or sold under repurchase agreements and net proceeds from long- and short-term borrowings, partially offset by net redemption of preferred stock.•For both periods, cash was used for repurchases of common stock and cash dividends on common and preferred stock.* * *Refer to Consolidated Balance Sheets Analysis on pages 55-57, Capital Risk Management on pages 89-99, and Liquidity Risk Management on pages 100-107, and the Consolidated Statements of Cash Flows on page 169 for a further discussion of the activities affecting the Firm's cash flows. --- ## Modified Risk: Equity Method and Joint Ventures: Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method **Key changes:** - Updated: "The adoption of this guidance under the modified retrospective method on January 1, 2024 resulted in a change to the classification and timing of the amortization associated with certain of the Firm's alternative energy tax-oriented investments." - Removed: "The guidance requires additional disclosure for all investments that generate income tax credits and other income tax benefits from a tax-oriented investment program for which the Firm has elected to apply the proportional amortization method." - Removed: "The guidance also requires a reevaluation of eligible investments when significant modifications or events occur that result in a change in the nature of the investment or a change in the Firm's relationship with the underlying project." **Prior (2025):** The guidance expanded the types of tax-oriented investments, beyond affordable housing tax credit investments, that the Firm can elect on a program by program basis, to be accounted for using the proportional amortization method. This method requires the cost of eligible investments, within an elected program, to be amortized in proportion to the tax benefits received with the resulting amortization reported directly in income tax expense, which aligns with the associated tax credits and other tax benefits. Eligible investments must meet certain criteria, including that substantially all of the return is from income tax credits and other income tax benefits. This guidance was adopted on January 1, 2024 under the modified retrospective method. The adoption of this guidance resulted in a change to the classification and timing of the amortization associated with certain of the Firm's alternative energy tax-oriented investments. As a result of the adoption, the amortization of these investments that was previously recognized in other income is now recognized in income tax expense. The change in accounting resulted in a decrease to retained earnings of $161 million and increased the Firm's income tax expense and the effective tax rate by approximately $450 million and two percentage points, respectively, in the first quarter of 2024, with no material impact to net income. The guidance requires additional disclosure for all investments that generate income tax credits and other income tax benefits from a tax-oriented investment program for which the Firm has elected to apply the proportional amortization method. The guidance also requires a reevaluation of eligible investments when significant modifications or events occur that result in a change in the nature of the investment or a change in the Firm's relationship with the underlying project. Refer to Notes 6, 14 and 25 for additional information. **Current (2026):** The guidance expanded the types of tax-oriented investments, beyond affordable housing tax credit investments, that the Firm can elect on a program by program basis, to be accounted for using the proportional amortization method. The adoption of this guidance under the modified retrospective method on January 1, 2024 resulted in a change to the classification and timing of the amortization associated with certain of the Firm's alternative energy tax-oriented investments. As a result of the adoption, the amortization of these investments that was previously recognized in other income became recognized in income tax expense. The change in accounting resulted in a decrease to retained earnings of $161 million and increased the Firm's income tax expense and the effective tax rate by approximately $450 million and two percentage points, respectively, in the first quarter of 2024, with no material impact to net income. Refer to Notes 6, 14 and 25 for additional information. --- ## Modified Risk: Equity securities without readily determinable fair values **Key changes:** - Updated: "The following table presents the carrying value of equity securities without readily determinable fair values held as of December 31, 2025 and 2024, that are measured under the measurement alternative and the related adjustments recorded during the periods presented for those securities with observable price changes." - Updated: "As of or for the year ended December 31,(in millions)20252024Other assetsCarrying value(a)$4,873 $3,737 Upward carrying value changes(b)224 89 Downward carrying value changes/impairment(c)(102)(286) Carrying value(a) Upward carrying value changes(b) Downward carrying value changes/impairment(c) (a)The period-end carrying values reflect cumulative purchases and sales in addition to upward and downward carrying value changes." - Updated: "The conversion rate of Visa B-2 shares to Visa A shares was 1.5108 at December 31, 2025 and may be adjusted by Visa depending on developments related to the litigation matters." - Updated: "Accordingly, as of December 31, 2025, there is significant uncertainty regarding when the transfer restrictions on Visa B-2 shares may be terminated and what the final conversion rate for the Visa B-2 shares will be." - Added: "On February 13, 2026, Visa Inc." **Prior (2025):** The Firm measures certain equity securities without readily determinable fair values at cost less impairment (if any), plus or minus observable price changes from an identical or similar investment of the same issuer (i.e., measurement alternative), with such changes recognized in other income. In its determination of the new carrying values upon observable price changes, the Firm may adjust the prices if deemed necessary to arrive at the Firm's estimated fair values. Such adjustments may include adjustments to reflect the different rights and obligations of similar securities, and other adjustments that are consistent with the Firm's valuation techniques for private equity direct investments. The following table presents the carrying value of equity securities without readily determinable fair values held as of December 31, 2024 and 2023, that are measured under the measurement alternative and the related adjustments recorded during the periods presented for those securities with observable price changes. These securities are included in the nonrecurring fair value tables when applicable price changes are observable. As of or for the year ended December 31,(in millions)20242023Other assetsCarrying value(a)$3,737 $4,457 Upward carrying value changes(b)89 93 Downward carrying value changes/impairment(c)(286)(325) Carrying value(a) Upward carrying value changes(b) Downward carrying value changes/impairment(c) (a)The period-end carrying values reflect cumulative purchases and sales in addition to upward and downward carrying value changes. (b)The cumulative upward carrying value changes between January 1, 2018 and December 31, 2024 were $1.1 billion. (c)The cumulative downward carrying value changes/impairment between January 1, 2018 and December 31, 2024 were $(1.5) billion. (c) The cumulative downward carrying value changes/impairment between January 1, 2018 and December 31, 2024 were $(1.5) billion Included in other assets above is the Firm's interest in approximately 18.6 million Visa Class B-2 common shares ("Visa B-2 shares") and 37.2 million Visa Class B common shares ("Visa B shares") reflected in the Firm's principal investment portfolio as of December 31, 2024 and 2023, respectively. The Visa B shares were redenominated to Visa Class B-1 common shares ("Visa B-1 shares") on January 24, 2024. On April 8, 2024, Visa commenced an initial exchange offer for any and all outstanding Visa B-1 shares. On May 6, 2024, the Firm announced that Visa had accepted the Firm's tender of its 37.2 million Visa B-1 shares in exchange for a combination of Visa B-2 shares and Visa Class C common shares ("Visa C shares"), resulting in an initial gain of $8.0 billion based on the fair value of the Visa C shares. In addition, the second quarter of 2024 also reflected other Visa-related activity, including the fair value changes of the Visa C shares and derivative instruments, as well as dividends, resulting in the $7.9 billion net gain on Visa shares in the quarter. As of September 30, 2024, the Firm had disposed of all of its Visa C shares through sales in the second and third quarters of 2024 and through a $1.0 billion contribution to the Firm's Foundation in the second quarter of 2024. The Visa B-2 shares are subject to certain transfer restrictions and are convertible into Visa Class A common shares ("Visa A shares") at a specified conversion rate upon final resolution of certain litigation matters involving Visa. The conversion rate of Visa B-2 shares to Visa A shares was 1.5430 at December 31, 2024 and may be adjusted by Visa depending on developments related to the litigation matters. The outcome of those litigation matters, and the effect that the resolution of those matters may have on the conversion rate, is unknown. Accordingly, as of December 31, 2024, there is significant uncertainty regarding when the transfer restrictions on Visa B-2 shares may be terminated and what the final conversion rate for the Visa B-2 shares will be. As a result of these considerations, as well as differences in voting rights, Visa B-2 shares are not considered to be similar to Visa A shares, and are held at their nominal carryover basis. Separately, in connection with sales of Visa B shares prior to 2024, the Firm has entered into derivative instruments with the purchasers of the shares under which the Firm retains the risk associated with changes in the conversion rate. Under the terms of the derivative instruments, the Firm will (a) make or receive payments based on subsequent changes in the conversion rate and (b) make periodic interest payments to the purchasers of the Visa B shares. The payments under the derivative instruments will continue as long as the Visa B-2 shares associated with the previously sold Visa B shares remain subject to transfer restrictions. The derivative instruments are accounted for at fair value using a discounted cash flow methodology based upon the Firm's estimate of the timing and magnitude of final resolution of the litigation matters. The derivative instruments are recorded in trading liabilities, and changes in fair value are recognized in other income. The notional amount of shares associated with those derivative instruments has been adjusted as a result of the Visa exchange offer. As of December 31, 2024, the Firm held derivative instruments associated with 11.6 million Visa B-2 shares related to Visa B share sales prior to 2024, which are all subject to similar terms and conditions. 200JPMorgan Chase & Co./2024 Form 10-K 200JPMorgan Chase & Co./2024 Form 10-K 200JPMorgan Chase & Co./2024 Form 10-K 200 JPMorgan Chase & Co./2024 Form 10-K Additional disclosures about the fair value of financial instruments that are not carried on the Consolidated balance sheets at fair value U.S. GAAP requires disclosure of the estimated fair value of certain financial instruments, which are included in the following table. However, this table does not include other items, such as nonfinancial assets, intangible assets, certain financial instruments, and customer relationships. In the opinion of management, these items, in the aggregate, add significant value to JPMorganChase.Financial instruments for which carrying value approximates fair value Certain financial instruments that are not carried at fair value on the Consolidated balance sheets are carried at amounts that approximate fair value, due to their short-term nature and generally negligible credit risk. These instruments include cash and due from banks, deposits with banks, federal funds sold, securities purchased under resale agreements and securities borrowed, short-term receivables and accrued interest receivable, short-term borrowings, federal funds purchased, securities loaned and sold under repurchase agreements, accounts payable, and accrued liabilities. In addition, U.S. GAAP requires that the fair value of deposit liabilities with no stated maturity (i.e., demand, savings and certain money market deposits) be equal to their carrying value; recognition of the inherent funding value of these instruments is not permitted. Additional disclosures about the fair value of financial instruments that are not carried on the Consolidated balance sheets at fair value U.S. GAAP requires disclosure of the estimated fair value of certain financial instruments, which are included in the following table. However, this table does not include other items, such as nonfinancial assets, intangible assets, certain financial instruments, and customer relationships. In the opinion of management, these items, in the aggregate, add significant value to JPMorganChase.Financial instruments for which carrying value approximates fair value Certain financial instruments that are not carried at fair value on the Consolidated balance sheets are carried **Current (2026):** The Firm measures certain equity securities without readily determinable fair values at cost less impairment (if any), plus or minus observable price changes from an identical or similar investment of the same issuer (i.e., measurement alternative), with such changes recognized in other income. In its determination of the new carrying values upon observable price changes, the Firm may adjust the prices if deemed necessary to arrive at the Firm's estimated fair values. Such adjustments may include adjustments to reflect the different rights and obligations of similar securities, and other adjustments that are consistent with the Firm's valuation techniques for private equity direct investments. The following table presents the carrying value of equity securities without readily determinable fair values held as of December 31, 2025 and 2024, that are measured under the measurement alternative and the related adjustments recorded during the periods presented for those securities with observable price changes. These securities are included in the nonrecurring fair value tables when applicable price changes are observable. As of or for the year ended December 31,(in millions)20252024Other assetsCarrying value(a)$4,873 $3,737 Upward carrying value changes(b)224 89 Downward carrying value changes/impairment(c)(102)(286) Carrying value(a) Upward carrying value changes(b) Downward carrying value changes/impairment(c) (a)The period-end carrying values reflect cumulative purchases and sales in addition to upward and downward carrying value changes. (b)The cumulative upward carrying value changes between January 1, 2018 and December 31, 2025 were $1.3 billion. (c)The cumulative downward carrying value changes/impairment between January 1, 2018 and December 31, 2025 were $(1.5) billion. (c) The cumulative downward carrying value changes/impairment between January 1, 2018 and December 31, 2025 were $(1.5) billion Included in other assets above is the Firm's interest in approximately 18.6 million Visa Class B-2 common shares ("Visa B-2 shares") reflected in the Firm's principal investment portfolio at both December 31, 2025 and 2024. The Visa B-2 shares are subject to certain transfer restrictions and are convertible into Visa Class A common shares ("Visa A shares") at a specified conversion rate upon final resolution of certain litigation matters involving Visa. The conversion rate of Visa B-2 shares to Visa A shares was 1.5108 at December 31, 2025 and may be adjusted by Visa depending on developments related to the litigation matters. The outcome of those litigation matters, and the effect that the resolution of those matters may have on the conversion rate, is unknown. Accordingly, as of December 31, 2025, there is significant uncertainty regarding when the transfer restrictions on Visa B-2 shares may be terminated and what the final conversion rate for the Visa B-2 shares will be. As a result of these considerations, as well as differences in voting rights, Visa B-2 shares are not considered to be similar to Visa A shares, and are held at their nominal carryover basis. On February 13, 2026, Visa Inc. ("Visa") announced that its Board of Directors has authorized Visa to proceed with a successive exchange offer in respect of Visa's outstanding Class B common stock with timing, terms, and conditions as discussed in Visa's disclosure. The timing and likelihood of any future exchange offer is dependent upon actions taken by Visa and other factors that are outside of the Firm's control. Separately, in connection with sales of Visa B shares prior to 2024, the Firm has entered into derivative instruments with the purchasers of the shares under which the Firm retains the risk associated with changes in the conversion rate. Under the terms of the derivative instruments, the Firm will (a) make or receive payments based on subsequent changes in the conversion rate and (b) make periodic interest payments to the purchasers of the Visa B shares. The payments under the derivative instruments will continue as long as the Visa B-2 shares associated with the previously sold Visa B shares remain subject to transfer restrictions. The derivative instruments are accounted for at fair value using a discounted cash flow methodology based upon the Firm's estimate of the timing and magnitude of final resolution of the litigation matters. The derivative instruments are recorded in trading liabilities, and changes in fair value are recognized in other income. The notional amount of shares associated with those derivative instruments has been adjusted as a result of the 2024 Visa exchange offer. As of December 31, 2025, the Firm held derivative instruments associated with 11.6 million Visa B-2 shares related to Visa B share sales prior to 2024, which are all subject to similar terms and conditions. JPMorgan Chase & Co./2025 Form 10-K193 JPMorgan Chase & Co./2025 Form 10-K193 JPMorgan Chase & Co./2025 Form 10-K193 JPMorgan Chase & Co./2025 Form 10-K 193 --- ## Modified Risk: Consolidated VIE assets and liabilities **Key changes:** - Updated: "The following table presents information on assets and liabilities related to VIEs consolidated by the Firm as of December 31, 2025 and 2024." - Updated: "(c)Includes assets classified as cash and other asset line items on the Consolidated balance sheets." - Updated: "(e)The interest-bearing beneficial interest liabilities issued by consolidated VIEs are classified on the Consolidated balance sheets as "Beneficial interests issued by consolidated VIEs." The holders of these beneficial interests generally do not have recourse to the general credit of JPMorganChase." - Updated: "JPMorgan Chase & Co./2025 Form 10-K267 JPMorgan Chase & Co./2025 Form 10-K267 JPMorgan Chase & Co./2025 Form 10-K267 JPMorgan Chase & Co./2025 Form 10-K 267" **Prior (2025):** The following table presents information on assets and liabilities related to VIEs consolidated by the Firm as of December 31, 2024 and 2023. AssetsLiabilitiesDecember 31, 2024(in millions)Trading assetsLoansOther(c) Total assets(d)Beneficial interests in VIE assets(e)Other(f)Total liabilitiesVIE program typeFirm-sponsored credit card trusts$ - $13,531 $168 $13,699 $5,312 $10 $5,322 Firm-administered multi-seller conduits1 20,383 133 20,517 18,228 26 18,254 Municipal bond vehicles3,388 - 22 3,410 3,617 15 3,632 Mortgage securitization entities(a) - 630 8 638 115 48 163 Other496 1,966 (b)350 2,812 51 355 406 Total$3,885 $36,510 $681 $41,076 $27,323 $454 $27,777 AssetsLiabilitiesDecember 31, 2023(in millions)Trading assetsLoansOther(c) Total assets(d)Beneficial interests in VIE assets(e)Other(f)Total liabilitiesVIE program typeFirm-sponsored credit card trusts$ - $9,460 $117 $9,577 $2,998 $6 $3,004 Firm-administered multi-seller conduits1 27,372 194 27,567 17,781 30 17,811 Municipal bond vehicles 2,056 - 22 2,078 2,116 11 2,127 Mortgage securitization entities(a) - 693 8 701 125 57 182 Other113 86 250 449 - 159 159 Total$2,170 $37,611 $591 $40,372 $23,020 $263 $23,283 Other(c) Total assets(d) Beneficial interests in VIE assets(e) Other(f) Mortgage securitization entities(a) (b) Other(c) Total assets(d) Beneficial interests in VIE assets(e) Other(f) Mortgage securitization entities(a) (a)Includes residential mortgage securitizations. (b)Primarily includes consumer loans in CIB. (c)Includes assets classified as cash and other assets on the Consolidated balance sheets. (d)The assets of the consolidated VIEs included in the program types above are used to settle the liabilities of those entities. The assets and liabilities include third-party assets and liabilities of consolidated VIEs and exclude intercompany balances that eliminate in consolidation. (e)The interest-bearing beneficial interest liabilities issued by consolidated VIEs are classified on the Consolidated balance sheets as "Beneficial interests issued by consolidated VIEs". The holders of these beneficial interests generally do not have recourse to the general credit of JPMorganChase. Included in beneficial interests in VIE assets are long-term beneficial interests of $5.5 billion and $3.1 billion at December 31, 2024 and 2023, respectively. (f)Includes liabilities classified as accounts payable and other liabilities on the Consolidated balance sheets. JPMorgan Chase & Co./2024 Form 10-K275 JPMorgan Chase & Co./2024 Form 10-K275 JPMorgan Chase & Co./2024 Form 10-K275 JPMorgan Chase & Co./2024 Form 10-K 275 **Current (2026):** The following table presents information on assets and liabilities related to VIEs consolidated by the Firm as of December 31, 2025 and 2024. AssetsLiabilitiesDecember 31, 2025(in millions)Trading assetsLoansOther(c) Total assets(d)Beneficial interests in VIE assets(e)Other(f)Total liabilitiesVIE program typeFirm-sponsored credit card trusts$ - $12,872 $170 $13,042 $5,884 $11 $5,895 Firm-administered multi-seller conduits - 20,140 115 20,255 18,174 24 18,198 Municipal bond vehicles3,367 - 29 3,396 3,760 17 3,777 Mortgage securitization entities(a)2 566 9 577 105 40 145 Other1,466 4,199 (b)360 6,025 28 599 627 Total$4,835 $37,777 $683 $43,295 $27,951 $691 $28,642 AssetsLiabilitiesDecember 31, 2024(in millions)Trading assetsLoansOther(c) Total assets(d)Beneficial interests in VIE assets(e)Other(f)Total liabilitiesVIE program typeFirm-sponsored credit card trusts$ - $13,531 $168 $13,699 $5,312 $10 $5,322 Firm-administered multi-seller conduits1 20,383 133 20,517 18,228 26 18,254 Municipal bond vehicles 3,388 - 22 3,410 3,617 15 3,632 Mortgage securitization entities(a) - 630 8 638 115 48 163 Other496 1,966 350 2,812 51 355 406 Total$3,885 $36,510 $681 $41,076 $27,323 $454 $27,777 Other(c) Total assets(d) Beneficial interests in VIE assets(e) Other(f) Mortgage securitization entities(a) (b) Other(c) Total assets(d) Beneficial interests in VIE assets(e) Other(f) Mortgage securitization entities(a) (a)Includes residential mortgage securitizations. (b)Primarily includes consumer loans in CIB. (c)Includes assets classified as cash and other asset line items on the Consolidated balance sheets. (d)The assets of the consolidated VIEs included in the program types above are used to settle the liabilities of those entities. The assets and liabilities include third-party assets and liabilities of consolidated VIEs and exclude intercompany balances that eliminate in consolidation. (e)The interest-bearing beneficial interest liabilities issued by consolidated VIEs are classified on the Consolidated balance sheets as "Beneficial interests issued by consolidated VIEs." The holders of these beneficial interests generally do not have recourse to the general credit of JPMorganChase. Included in beneficial interests in VIE assets are long-term beneficial interests of $6.0 billion and $5.5 billion at December 31, 2025 and 2024, respectively. (f)Includes liabilities classified as accounts payable and other liabilities on the Consolidated balance sheets. JPMorgan Chase & Co./2025 Form 10-K267 JPMorgan Chase & Co./2025 Form 10-K267 JPMorgan Chase & Co./2025 Form 10-K267 JPMorgan Chase & Co./2025 Form 10-K 267 --- ## Modified Risk: Additional disclosures about the fair value of financial instruments that are not carried on the Consolidated balance sheets at fair value **Key changes:** - Updated: "The following table presents, by fair value hierarchy classification, the carrying values and estimated fair values at December 31, 2025 and 2024, of financial assets and liabilities, excluding financial instruments that are carried at fair value on a recurring basis, and their classification within the fair value hierarchy." - Updated: "(b) 194JPMorgan Chase & Co./2025 Form 10-K 194JPMorgan Chase & Co./2025 Form 10-K 194JPMorgan Chase & Co./2025 Form 10-K 194 JPMorgan Chase & Co./2025 Form 10-K The majority of the Firm's lending-related commitments are not carried at fair value on a recurring basis on the Consolidated balance sheets." **Prior (2025):** U.S. GAAP requires disclosure of the estimated fair value of certain financial instruments, which are included in the following table. However, this table does not include other items, such as nonfinancial assets, intangible assets, certain financial instruments, and customer relationships. In the opinion of management, these items, in the aggregate, add significant value to JPMorganChase. Financial instruments for which carrying value approximates fair value Certain financial instruments that are not carried at fair value on the Consolidated balance sheets are carried at amounts that approximate fair value, due to their short-term nature and generally negligible credit risk. These instruments include cash and due from banks, deposits with banks, federal funds sold, securities purchased under resale agreements and securities borrowed, short-term receivables and accrued interest receivable, short-term borrowings, federal funds purchased, securities loaned and sold under repurchase agreements, accounts payable, and accrued liabilities. In addition, U.S. GAAP requires that the fair value of deposit liabilities with no stated maturity (i.e., demand, savings and certain money market deposits) be equal to their carrying value; recognition of the inherent funding value of these instruments is not permitted. at amounts that approximate fair value, due to their short-term nature and generally negligible credit risk. These instruments include cash and due from banks, deposits with banks, federal funds sold, securities purchased under resale agreements and securities borrowed, short-term receivables and accrued interest receivable, short-term borrowings, federal funds purchased, securities loaned and sold under repurchase agreements, accounts payable, and accrued liabilities. In addition, U.S. GAAP requires that the fair value of deposit liabilities with no stated maturity (i.e., demand, savings and certain money market deposits) be equal to their carrying value; recognition of the inherent funding value of these instruments is not permitted. The following table presents, by fair value hierarchy classification, the carrying values and estimated fair values at December 31, 2024 and 2023, of financial assets and liabilities, excluding financial instruments that are carried at fair value on a recurring basis, and their classification within the fair value hierarchy. December 31, 2024December 31, 2023Estimated fair value hierarchyEstimated fair value hierarchy(in billions)Carrying valueLevel 1Level 2Level 3Total estimated fair valueCarrying valueLevel 1Level 2Level 3Total estimated fair valueFinancial assetsCash and due from banks$23.4 $23.4 $ - $ - $23.4 $29.1 $29.1 $ - $ - $29.1 Deposits with banks445.9 445.8 0.1 - 445.9 595.1 594.6 0.5 - 595.1 Accrued interest and accounts receivable101.1 - 101.0 0.1 101.1 107.1 - 107.0 0.1 107.1 Federal funds sold and securities purchased under resale agreements8.2 - 8.2 - 8.2 16.3 - 16.3 - 16.3 Securities borrowed135.6 - 135.6 - 135.6 130.3 - 130.3 - 130.3 Investment securities, held-to-maturity274.5 97.4 150.5 - 247.9 369.8 160.6 182.2 - 342.8 Loans, net of allowance for loan losses(a)1,282.3 - 268.7 1,007.8 1,276.5 1,262.5 - 285.6 964.6 1,250.2 Other82.7 - 81.3 1.6 82.9 76.1 - 74.9 1.4 76.3 Financial liabilitiesDeposits$2,372.3 $ - $2,372.5 $ - $2,372.5 $2,322.3 $ - $2,322.6 $ - $2,322.6 Federal funds purchased and securities loaned or sold under repurchase agreements70.5 - 70.5 - 70.5 47.5 - 47.5 - 47.5 Short-term borrowings26.4 - 26.3 - 26.3 24.7 - 24.7 - 24.7 Accounts payable and other liabilities(b)232.8 - 219.6 12.6 232.2 241.8 - 233.3 8.1 241.4 Beneficial interests issued by consolidated VIEs27.3 - 27.4 - 27.4 23.0 - 23.0 - 23.0 Long-term debt300.6 - 251.2 50.7 301.9 303.9 - 252.2 51.3 303.5 Accrued interest and accounts receivable Federal funds sold and securities purchased under resale agreements Securities borrowed Investment securities, held-to-maturity Loans, net of allowance for loan losses(a) Federal funds purchased and securities loaned or sold under repurchase agreements Accounts payable and other liabilities(b) Beneficial interests issued by consolidated VIEs (a)Fair value is typically estimated using a discounted cash flow model that incorporates the characteristics of the underlying loans (including principal, contractual interest rate and contractual fees) and other key inputs, including expected lifetime credit losses, interest rates, prepayment rates, and primary origination or secondary market spreads. For certain loans, the fair value is measured based on the value of the underlying collateral. Carrying value of the loan takes into account the loan's allowance for loan losses, which represents the loan's expected credit losses over its remaining expected life. The difference between the estimated fair value and carrying value of a loan is generally attributable to changes in market interest rates, including credit spreads, market liquidity premiums and other factors that affect the fair value of a loan but do not affect its carrying value. (b)Excludes lending-related commitments disclosed in the table below. (b) JPMorgan Chase & Co./2024 Form 10-K201 JPMorgan Chase & Co./2024 Form 10-K201 JPMorgan Chase & Co./2024 Form 10-K201 JPMorgan Chase & Co./2024 Form 10-K 201 **Current (2026):** U.S. GAAP requires disclosure of the estimated fair value of certain financial instruments, which are included in the following table. However, this table does not include other items, such as nonfinancial assets, intangible assets, certain financial instruments, and customer relationships. In the opinion of management, these items, in the aggregate, add significant value to JPMorganChase. Financial instruments for which carrying value approximates fair value Certain financial instruments that are not carried at fair value on the Consolidated balance sheets are carried at amounts that approximate fair value, due to their short-term nature and generally negligible credit risk. These instruments include cash and due from banks, deposits with banks, federal funds sold, securities purchased under resale agreements and securities borrowed, short-term receivables and accrued interest receivable, short-term borrowings, federal funds purchased, securities loaned and sold under repurchase agreements, accounts payable, and accrued liabilities. In addition, U.S. GAAP requires that the fair value of deposit liabilities with no stated maturity (i.e., demand, savings and certain money market deposits) be equal to their carrying value; recognition of the inherent funding value of these instruments is not permitted. at amounts that approximate fair value, due to their short-term nature and generally negligible credit risk. These instruments include cash and due from banks, deposits with banks, federal funds sold, securities purchased under resale agreements and securities borrowed, short-term receivables and accrued interest receivable, short-term borrowings, federal funds purchased, securities loaned and sold under repurchase agreements, accounts payable, and accrued liabilities. In addition, U.S. GAAP requires that the fair value of deposit liabilities with no stated maturity (i.e., demand, savings and certain money market deposits) be equal to their carrying value; recognition of the inherent funding value of these instruments is not permitted. The following table presents, by fair value hierarchy classification, the carrying values and estimated fair values at December 31, 2025 and 2024, of financial assets and liabilities, excluding financial instruments that are carried at fair value on a recurring basis, and their classification within the fair value hierarchy. December 31, 2025December 31, 2024Estimated fair value hierarchyEstimated fair value hierarchy(in billions)Carrying valueLevel 1Level 2Level 3Total estimated fair valueCarrying valueLevel 1Level 2Level 3Total estimated fair valueFinancial assetsCash and due from banks$21.7 $21.7 $ - $ - $21.7 $23.4 $23.4 $ - $ - $23.4 Deposits with banks321.6 321.6 - - 321.6 445.9 445.8 0.1 - 445.9 Accrued interest and accounts receivable111.1 - 111.0 0.1 111.1 101.1 - 101.0 0.1 101.1 Federal funds sold and securities purchased under resale agreements9.4 - 9.4 - 9.4 8.2 - 8.2 - 8.2 Securities borrowed188.1 - 188.1 - 188.1 135.6 - 135.6 - 135.6 Investment securities, held-to-maturity270.1 126.4 126.9 - 253.3 274.5 97.4 150.5 - 247.9 Loans, net of allowance for loan losses(a)1,397.0 - 314.6 1,089.2 1,403.8 1,282.3 - 268.7 1,007.8 1,276.5 Other93.0 - 91.7 1.5 93.2 82.7 - 81.3 1.6 82.9 Financial liabilitiesDeposits$2,538.4 $ - $2,538.8 $ - $2,538.8 $2,372.3 $ - $2,372.5 $ - $2,372.5 Federal funds purchased and securities loaned or sold under repurchase agreements82.2 - 82.2 - 82.2 70.5 - 70.5 - 70.5 Short-term borrowings32.3 - 32.3 - 32.3 26.4 - 26.3 - 26.3 Accounts payable and other liabilities(b)262.6 - 248.7 13.0 261.7 232.8 - 219.6 12.6 232.2 Beneficial interests issued by consolidated VIEs27.9 - 28.0 - 28.0 27.3 - 27.4 - 27.4 Long-term debt300.6 - 253.0 52.1 305.1 300.6 - 251.2 50.7 301.9 Accrued interest and accounts receivable Federal funds sold and securities purchased under resale agreements Securities borrowed Investment securities, held-to-maturity Loans, net of allowance for loan losses(a) Federal funds purchased and securities loaned or sold under repurchase agreements Accounts payable and other liabilities(b) Beneficial interests issued by consolidated VIEs (a)Fair value is typically estimated using a discounted cash flow model that incorporates the characteristics of the underlying loans (including principal, contractual interest rate and contractual fees) and other key inputs, including expected lifetime credit losses, interest rates, prepayment rates, and primary origination or secondary market spreads. For certain loans, the fair value is measured based on the value of the underlying collateral. Carrying value of the loan takes into account the loan's allowance for loan losses, which represents the loan's expected credit losses over its remaining expected life. The difference between the estimated fair value and carrying value of a loan is generally attributable to changes in market interest rates, including credit spreads, market liquidity premiums and other factors that affect the fair value of a loan but do not affect its carrying value. (b)Excludes lending-related commitments disclosed in the table below. (b) 194JPMorgan Chase & Co./2025 Form 10-K 194JPMorgan Chase & Co./2025 Form 10-K 194JPMorgan Chase & Co./2025 Form 10-K 194 JPMorgan Chase & Co./2025 Form 10-K The majority of the Firm's lending-related commitments are not carried at fair value on a recurring basis on the Consolidated balance sheets. The carrying value and the estimated fair value of these wholesale lending-related commitments were as follows for the periods indicated. December 31, 2025December 31, 2024Estimated fair value hierarchyEstimated fair value hierarchy(in billions)Carrying value(a)(b)Level 1Level 2Level 3Total estimated fair valueCarrying value(a)(b)Level 1Level 2Level 3Total estimated fair valueWholesale lending-related commitments$3.2 $ - $ - $4.5 $4.5 $2.7 $ - $ - $4.4 $4.4 Carrying value(a)(b) Carrying value(a)(b) Wholesale lending-related commitments (a)Excludes the current carrying values of the guarantee liability and the offsetting asset, each of which is recognized at fair value at the inception of the guarantees. (b)Includes the wholesale allowance for lending-related commitments. The Firm does not estimate the fair value of consumer off-balance sheet lending-related commitments. In many cases, the Firm can reduce or cancel these commitments with or without notice to the borrower, as permitted by law, or in accordance with the contract. Refer to page 176 of this Note for a further discussion of the valuation of lending-related commitments. JPMorgan Chase & Co./2025 Form 10-K195 JPMorgan Chase & Co./2025 Form 10-K195 JPMorgan Chase & Co./2025 Form 10-K195 JPMorgan Chase & Co./2025 Form 10-K 195 --- ## Modified Risk: Operational Risk Management Framework **Key changes:** - Updated: "The Firm's Compliance, Conduct, and Operational Risk ("CCOR") Management Framework is designed to enable the Firm to govern, identify, measure, monitor and test, manage and report on the Firm's operational risk." - Updated: "Refer to pages 150, 151, 152 and 153, respectively for more information on Compliance, Conduct, Legal, and Estimations and Model risk." - Updated: "conducted under the CCOR organization's Monitoring and Testing Program ("M&T Program") and:•are based upon the Firm's compliance, conduct and operational risk assessments;•are designed to identify control gaps or deficiencies, including potential non-compliance with applicable laws, rules and regulations; and•assess whether the procedures, processes and controls used by the Firm to mitigate compliance, conduct and operational risk are well-designed and functioning as intended." - Updated: "Insurance may also be conducted under the CCOR organization's Monitoring and Testing Program ("M&T Program") and: •are based upon the Firm's compliance, conduct and operational risk assessments; •are designed to identify control gaps or deficiencies, including potential non-compliance with applicable laws, rules and regulations; and •assess whether the procedures, processes and controls used by the Firm to mitigate compliance, conduct and operational risk are well-designed and functioning as intended." - Updated: "Insurance may also be required by third parties with whom the Firm does business.Subcategories and examples of operational risksOperational risk can manifest itself in various ways." **Prior (2025):** laws, rules and regulations. Through monitoring and testing, Operational Risk and Compliance independently identify areas of heightened operational risk and tests the effectiveness of controls within the LOBs and Corporate. Management of Operational RiskThe operational risk areas or issues identified through monitoring and testing are escalated to the LOBs and Corporate to be remediated through action plans, as needed, to mitigate operational risk. Operational Risk and Compliance may advise the LOBs and Corporate in the development and implementation of action plans.Operational Risk ReportingAll employees of the Firm are expected to escalate risks appropriately. Risks identified by Operational Risk and Compliance are escalated to the appropriate LOB and Corporate Control Committees, as needed. Operational Risk and Compliance has established standards designed to ensure that consistent operational risk reporting and operational risk reports are produced on a Firmwide basis as well as by the LOBs and Corporate. Reporting includes the evaluation of key risk and performance indicators against established thresholds as well as the assessment of different types of operational risk against stated risk appetite. The standards establish escalation protocols to senior management and to the Board of Directors.InsuranceOne of the ways in which operational risk may be mitigated is through insurance maintained by the Firm. The Firm purchases insurance from commercial insurers and maintains a wholly-owned captive insurer, Park Assurance Company. Insurance may also be required by third parties with whom the Firm does business.Subcategories and examples of operational risksOperational risk can manifest itself in various ways. Operational risk subcategories include Compliance risk, Conduct risk, Legal risk, and Estimations and Model risk. Refer to pages 157, 158, 159 and 160, respectively for more information on Compliance, Conduct, Legal, and Estimations and Model risk. Details on other select examples of operational risks such as business and technology resiliency, payment fraud and third-party outsourcing, as well as cybersecurity, are provided below. Firmwide resiliency risk Disruptions of the Firm's business and operations can occur due to forces beyond the Firm's control such as the spread of infectious diseases or pandemics, severe weather, natural disasters, the effects of climate change, power or telecommunications loss, failure of a third party to provide expected services, cyberattacks, civil or political unrest or terrorism. The Firm's resiliency framework is intended to enable the Firm to prepare for and adapt to changing conditions and withstand and recover from, and address adverse effects on its operations caused by, disruptions that may impact critical business functions and supporting assets, including its staff, technology, data and facilities, as well as those of third-party service providers. The framework includes governance, awareness training, planning and testing of recovery strategies, as well as strategic and tactical initiatives to identify, assess, and manage resiliency risks. The framework operates in accordance with the Firm's overall approach to Operational Risk Management, including alignment with technology, cybersecurity, data, physical security, crisis management, real estate and outsourcing programs.Payment fraud riskPayment fraud risk is the risk of external and internal parties unlawfully obtaining personal monetary benefit through misdirected or otherwise improper payment. The Firm employs various controls for managing payment fraud risk as well as providing employee and client education and awareness trainings.Third-party outsourcing riskThe Firm's Third-Party Oversight ("TPO") and Inter-affiliates Oversight ("IAO") frameworks assist the LOBs and Corporate in selecting, documenting, onboarding, monitoring and managing their supplier relationships including services provided by affiliates. The objectives of the TPO framework are to hold suppliers and other third parties to an appropriate standard of operational performance and to mitigate key risks, including data loss and business disruptions. The Corporate Third-Party Oversight group is responsible for Firmwide training, monitoring, reporting and standards with respect to third-party outsourcing risks. laws, rules and regulations. Through monitoring and testing, Operational Risk and Compliance independently identify areas of heightened operational risk and tests the effectiveness of controls within the LOBs and Corporate. Management of Operational RiskThe operational risk areas or issues identified through monitoring and testing are escalated to the LOBs and Corporate to be remediated through action plans, as needed, to mitigate operational risk. Operational Risk and Compliance may advise the LOBs and Corporate in the development and implementation of action plans.Operational Risk ReportingAll employees of the Firm are expected to escalate risks appropriately. Risks identified by Operational Risk and Compliance are escalated to the appropriate LOB and Corporate Control Committees, as needed. Operational Risk and Compliance has established standards designed to ensure that consistent operational risk reporting and operational risk reports are produced on a Firmwide basis as well as by the LOBs and Corporate. Reporting includes the evaluation of key risk and performance indicators against established thresholds as well as the assessment of different types of operational risk against stated risk appetite. The standards establish escalation protocols to senior management and to the Board of Directors.InsuranceOne of the ways in which operational risk may be mitigated is through insurance maintained by the Firm. The Firm purchases insurance from commercial insurers and maintains a wholly-owned captive insurer, Park Assurance Company. Insurance may also be required by third parties with whom the Firm does business.Subcategories and examples of operational risksOperational risk can manifest itself in various ways. Operational risk subcategories include Compliance risk, Conduct risk, Legal risk, and Estimations and Model risk. Refer to pages 157, 158, 159 and 160, respectively for more information on Compliance, Conduct, Legal, and Estimations and Model risk. Details on other select examples of operational risks such as business and technology resiliency, payment fraud and third-party outsourcing, as well as cybersecurity, are provided below. laws, rules and regulations. Through monitoring and testing, Operational Risk and Compliance independently identify areas of heightened operational risk and tests the effectiveness of controls within the LOBs and Corporate. Management of Operational Risk The operational risk areas or issues identified through monitoring and testing are escalated to the LOBs and Corporate to be remediated through action plans, as needed, to mitigate operational risk. Operational Risk and Compliance may advise the LOBs and Corporate in the development and implementation of action plans. Operational Risk Reporting All employees of the Firm are expected to escalate risks appropriately. Risks identified by Operational Risk and Compliance are escalated to the appropriate LOB and Corporate Control Committees, as needed. Operational Risk and Compliance has established standards designed to ensure that consistent operational risk reporting and operational risk reports are produced on a Firmwide basis as well as by the LOBs and Corporate. Reporting includes the evaluation of key risk and performance indicators against established thresholds as well as the assessment of different types of operational risk against stated risk appetite. The standards establish escalation protocols to senior management and to the Board of Directors. Insurance One of the ways in which operational risk may be mitigated is through insurance maintained by the Firm. The Firm purchases insurance from commercial insurers and maintains a wholly-owned captive insurer, Park Assurance Company. Insurance may also be required by third parties with whom the Firm does business. **Current (2026):** The Firm's Compliance, Conduct, and Operational Risk ("CCOR") Management Framework is designed to enable the Firm to govern, identify, measure, monitor and test, manage and report on the Firm's operational risk. Operational Risk Governance The LOBs and Corporate are responsible for the management of operational risk. The Control Management Organization, which consists of control managers within each LOB and Corporate, is responsible for the day-to-day execution of the CCOR Management Framework. The Firm's Global Chief Compliance Officer ("CCO") and FRE for Operational Risk and Qualitative Risk Appetite is responsible for defining the CCOR Management Framework and establishing the minimum standards for its execution. The LOB and Corporate aligned officers of the CCOR organization oversee activity performed by their aligned LOB and Corporate. These officers report to the Global CCO and FRE for Operational Risk and Qualitative Risk Appetite and are independent of the respective businesses or functions that they oversee. The CCOR Management Framework is included in the Risk Governance and Oversight Policy that is reviewed and approved by the Board Risk Committee periodically. Operational Risk Identification The Firm utilizes a structured risk and control self-assessment process that is executed by the LOBs and Corporate. As part of this process, the LOBs and Corporate evaluate the effectiveness of their respective control environment to assess circumstances in which controls have failed, and to determine where remediation efforts may be required. The Firm's Operational Risk and Compliance organization ("Operational Risk and Compliance") provides oversight of and challenge to these evaluations and may also perform independent assessments of significant operational risk events and areas of concentrated or emerging risk.Operational Risk MeasurementThe CCOR organization is responsible for providing independent, risk-based review and oversight of assessments conducted by the LOBs and Corporate with respect to compliance, conduct and operational risks. This includes oversight of the LOBs' and Corporate's assessments of the design, execution, and evaluation of associated controls, against standards established by the CCOR organization.In addition, Operational Risk and Compliance assesses operational risks through quantitative means, including operational risk-based capital and estimation of operational risk losses under both baseline and stressed conditions. The primary component of the operational risk-based capital estimate is the Loss Distribution Approach ("LDA") statistical model, which simulates the projected frequency and severity of operational risk losses based on historical data. The LDA model is used to estimate an aggregate operational risk loss over a one-year time horizon, at a 99.9% confidence level. The LDA model incorporates actual internal operational risk losses in the quarter following the period in which those losses were realized, and the calculation generally continues to reflect such losses even after the issues or business activities giving rise to the losses have been remediated or reduced.As required under the Basel III capital framework, the Firm's operational risk capital methodology, which uses the Advanced Measurement Approach ("AMA"), incorporates internal and external losses as well as management's view of tail risk captured through operational risk scenario analysis, and evaluation of key business environment and internal control metrics. The Firm does not reflect the impact of insurance in its AMA estimate of operational risk capital. The Firm considers the impact of stressed economic conditions on operational risk losses and develops a forward looking view of material operational risk events that may occur in a stressed environment. The Firm's operational risk stress testing framework is utilized in calculating results for the Firm's CCAR and other stress testing processes. Refer to Capital Risk Management on pages 89-99 for information related to operational risk RWA, and CCAR.Operational Risk Monitoring and TestingIndependent testing and monitoring of controls are integral components of the CCOR Management Framework. These testing and monitoring activities are ("Operational Risk and Compliance") provides oversight of and challenge to these evaluations and may also perform independent assessments of significant operational risk events and areas of concentrated or emerging risk. Operational Risk Measurement The CCOR organization is responsible for providing independent, risk-based review and oversight of assessments conducted by the LOBs and Corporate with respect to compliance, conduct and operational risks. This includes oversight of the LOBs' and Corporate's assessments of the design, execution, and evaluation of associated controls, against standards established by the CCOR organization. In addition, Operational Risk and Compliance assesses operational risks through quantitative means, including operational risk-based capital and estimation of operational risk losses under both baseline and stressed conditions. The primary component of the operational risk-based capital estimate is the Loss Distribution Approach ("LDA") statistical model, which simulates the projected frequency and severity of operational risk losses based on historical data. The LDA model is used to estimate an aggregate operational risk loss over a one-year time horizon, at a 99.9% confidence level. The LDA model incorporates actual internal operational risk losses in the quarter following the period in which those losses were realized, and the calculation generally continues to reflect such losses even after the issues or business activities giving rise to the losses have been remediated or reduced. As required under the Basel III capital framework, the Firm's operational risk capital methodology, which uses the Advanced Measurement Approach ("AMA"), incorporates internal and external losses as well as management's view of tail risk captured through operational risk scenario analysis, and evaluation of key business environment and internal control metrics. The Firm does not reflect the impact of insurance in its AMA estimate of operational risk capital. The Firm considers the impact of stressed economic conditions on operational risk losses and develops a forward looking view of material operational risk events that may occur in a stressed environment. The Firm's operational risk stress testing framework is utilized in calculating results for the Firm's CCAR and other stress testing processes. Refer to Capital Risk Management on pages 89-99 for information related to operational risk RWA, and CCAR. Operational Risk Monitoring and Testing Independent testing and monitoring of controls are integral components of the CCOR Management Framework. These testing and monitoring activities are 146JPMorgan Chase & Co./2025 Form 10-K 146JPMorgan Chase & Co./2025 Form 10-K 146JPMorgan Chase & Co./2025 Form 10-K 146 JPMorgan Chase & Co./2025 Form 10-K conducted under the CCOR organization's Monitoring and Testing Program ("M&T Program") and:•are based upon the Firm's compliance, conduct and operational risk assessments;•are designed to identify control gaps or deficiencies, including potential non-compliance with applicable laws, rules and regulations; and•assess whether the procedures, processes and controls used by the Firm to mitigate compliance, conduct and operational risk are well-designed and functioning as intended. The Testing Center of Excellence ("TCoE"), reporting to the Control Management Organization, is responsible for executing testing activities outlined under the M&T Program, and the CCOR organization Testing Program Governance and Oversight team provides independent governance and oversight of both the M&T Program and the TCoE testing activities through defined processes and responsibilities. The results of risk assessments performed by Operational Risk and Compliance are used in connection with their independent monitoring and testing compliance of the LOBs and Corporate with laws, rules and regulations. Through monitoring and testing, Operational Risk and Compliance independently identify areas of heightened operational risk and tests the effectiveness of controls within the LOBs and Corporate. Management of Operational RiskThe operational risk areas or issues identified through monitoring and testing are escalated to the LOBs and Corporate to be remediated through action plans, as needed, to mitigate operational risk. Operational Risk and Compliance may advise the LOBs and Corporate in the development and implementation of action plans.Operational Risk ReportingAll employees of the Firm are expected to escalate risks appropriately. Risks identified by Operational Risk and Compliance are escalated to the appropriate LOB and Corporate Control Committees, as needed. Operational Risk and Compliance has established standards designed to ensure that consistent operational risk reporting and operational risk reports are produced on a Firmwide basis as well as by the LOBs and Corporate. Reporting includes the evaluation of key risk and performance indicators against established thresholds as well as the assessment of different types of operational risk against stated risk appetite. The standards establish escalation protocols to senior management and to the Board of Directors.InsuranceOne of the ways in which operational risk may be mitigated is through insurance maintained by the Firm. The Firm purchases insurance from commercial insurers and maintains a wholly-owned captive insurer, Park Assurance Company. Insurance may also be required by third parties with whom the Firm does business.Subcategories and examples of operational risksOperational risk can manifest itself in various ways. Operational risk subcategories include Compliance risk, Conduct risk, Legal risk, and Estimations and Model risk. Refer to pages 150, 151, 152 and 153, respectively for more information on Compliance, Conduct, Legal, and Estimations and Model risk. Details on other select examples of operational risks such as firmwide resiliency, payment fraud and third-party outsourcing, as well as cybersecurity, are provided below. Firmwide resiliency risk Disruptions of the Firm's business and operations can occur due to forces beyond the Firm's control such as health emergencies, severe weather, natural disasters, the effects of climate change, utility or telecommunications failures, interruption of service from third-party service providers, cyberattacks, civil unrest or terrorism. The Firm's resiliency framework is intended to enable the Firm to prepare for and adapt to changing conditions and withstand and recover from, and address adverse effects on its operations caused by, disruptions that may impact critical business functions and supporting assets, including its staff, technology, data and facilities, as well as those of third-party service providers. The framework includes governance, awareness training, planning and testing of recovery strategies, as well as strategic and tactical initiatives to identify, assess, and manage resiliency risks. The framework operates in accordance with the Firm's overall approach to Operational Risk Management, including alignment with technology, cybersecurity, data, physical security, crisis management, real estate and outsourcing programs.Payment fraud riskPayment fraud risk is the risk of external and internal parties unlawfully obtaining personal monetary benefit through misdirected or otherwise improper payment. The Firm employs various controls for managing payment fraud risk as well as providing employee and client education and awareness trainings.Third-party outsourcing riskThe Firm's Third-Party Oversight ("TPO") and Inter-affiliates Oversight ("IAO") frameworks assist the LOBs and Corporate in selecting, documenting, onboarding, monitoring and managing their supplier relationships including services provided by affiliates. The objectives of the TPO framework are to hold suppliers and other third parties to an appropriate standard of operational performance and to mitigate key risks, including data loss and business disruptions. The Corporate Third-Party Oversight group is responsible for Firmwide training, monitoring, reporting and standards with respect to third-party outsourcing risks. conducted under the CCOR organization's Monitoring and Testing Program ("M&T Program") and:•are based upon the Firm's compliance, conduct and operational risk assessments;•are designed to identify control gaps or deficiencies, including potential non-compliance with applicable laws, rules and regulations; and•assess whether the procedures, processes and controls used by the Firm to mitigate compliance, conduct and operational risk are well-designed and functioning as intended. The Testing Center of Excellence ("TCoE"), reporting to the Control Management Organization, is responsible for executing testing activities outlined under the M&T Program, and the CCOR organization Testing Program Governance and Oversight team provides independent governance and oversight of both the M&T Program and the TCoE testing activities through defined processes and responsibilities. The results of risk assessments performed by Operational Risk and Compliance are used in connection with their independent monitoring and testing compliance of the LOBs and Corporate with laws, rules and regulations. Through monitoring and testing, Operational Risk and Compliance independently identify areas of heightened operational risk and tests the effectiveness of controls within the LOBs and Corporate. Management of Operational RiskThe operational risk areas or issues identified through monitoring and testing are escalated to the LOBs and Corporate to be remediated through action plans, as needed, to mitigate operational risk. Operational Risk and Compliance may advise the LOBs and Corporate in the development and implementation of action plans.Operational Risk ReportingAll employees of the Firm are expected to escalate risks appropriately. Risks identified by Operational Risk and Compliance are escalated to the appropriate LOB and Corporate Control Committees, as needed. Operational Risk and Compliance has established standards designed to ensure that consistent operational risk reporting and operational risk reports are produced on a Firmwide basis as well as by the LOBs and Corporate. Reporting includes the evaluation of key risk and performance indicators against established thresholds as well as the assessment of different types of operational risk against stated risk appetite. The standards establish escalation protocols to senior management and to the Board of Directors.InsuranceOne of the ways in which operational risk may be mitigated is through insurance maintained by the Firm. The Firm purchases insurance from commercial insurers and maintains a wholly-owned captive insurer, Park Assurance Company. Insurance may also be conducted under the CCOR organization's Monitoring and Testing Program ("M&T Program") and: •are based upon the Firm's compliance, conduct and operational risk assessments; •are designed to identify control gaps or deficiencies, including potential non-compliance with applicable laws, rules and regulations; and •assess whether the procedures, processes and controls used by the Firm to mitigate compliance, conduct and operational risk are well-designed and functioning as intended. The Testing Center of Excellence ("TCoE"), reporting to the Control Management Organization, is responsible for executing testing activities outlined under the M&T Program, and the CCOR organization Testing Program Governance and Oversight team provides independent governance and oversight of both the M&T Program and the TCoE testing activities through defined processes and responsibilities. The results of risk assessments performed by Operational Risk and Compliance are used in connection with their independent monitoring and testing compliance of the LOBs and Corporate with laws, rules and regulations. Through monitoring and testing, Operational Risk and Compliance independently identify areas of heightened operational risk and tests the effectiveness of controls within the LOBs and Corporate. Management of Operational Risk The operational risk areas or issues identified through monitoring and testing are escalated to the LOBs and Corporate to be remediated through action plans, as needed, to mitigate operational risk. Operational Risk and Compliance may advise the LOBs and Corporate in the development and implementation of action plans. Operational Risk Reporting All employees of the Firm are expected to escalate risks appropriately. Risks identified by Operational Risk and Compliance are escalated to the appropriate LOB and Corporate Control Committees, as needed. Operational Risk and Compliance has established standards designed to ensure that consistent operational risk reporting and operational risk reports are produced on a Firmwide basis as well as by the LOBs and Corporate. Reporting includes the evaluation of key risk and performance indicators against established thresholds as well as the assessment of different types of operational risk against stated risk appetite. The standards establish escalation protocols to senior management and to the Board of Directors. Insurance One of the ways in which operational risk may be mitigated is through insurance maintained by the Firm. The Firm purchases insurance from commercial insurers and maintains a wholly-owned captive insurer, Park Assurance Company. Insurance may also be required by third parties with whom the Firm does business.Subcategories and examples of operational risksOperational risk can manifest itself in various ways. Operational risk subcategories include Compliance risk, Conduct risk, Legal risk, and Estimations and Model risk. Refer to pages 150, 151, 152 and 153, respectively for more information on Compliance, Conduct, Legal, and Estimations and Model risk. Details on other select examples of operational risks such as firmwide resiliency, payment fraud and third-party outsourcing, as well as cybersecurity, are provided below. Firmwide resiliency risk Disruptions of the Firm's business and operations can occur due to forces beyond the Firm's control such as health emergencies, severe weather, natural disasters, the effects of climate change, utility or telecommunications failures, interruption of service from third-party service providers, cyberattacks, civil unrest or terrorism. The Firm's resiliency framework is intended to enable the Firm to prepare for and adapt to changing conditions and withstand and recover from, and address adverse effects on its operations caused by, disruptions that may impact critical business functions and supporting assets, including its staff, technology, data and facilities, as well as those of third-party service providers. The framework includes governance, awareness training, planning and testing of recovery strategies, as well as strategic and tactical initiatives to identify, assess, and manage resiliency risks. The framework operates in accordance with the Firm's overall approach to Operational Risk Management, including alignment with technology, cybersecurity, data, physical security, crisis management, real estate and outsourcing programs.Payment fraud riskPayment fraud risk is the risk of external and internal parties unlawfully obtaining personal monetary benefit through misdirected or otherwise improper payment. The Firm employs various controls for managing payment fraud risk as well as providing employee and client education and awareness trainings.Third-party outsourcing riskThe Firm's Third-Party Oversight ("TPO") and Inter-affiliates Oversight ("IAO") frameworks assist the LOBs and Corporate in selecting, documenting, onboarding, monitoring and managing their supplier relationships including services provided by affiliates. The objectives of the TPO framework are to hold suppliers and other third parties to an appropriate standard of operational performance and to mitigate key risks, including data loss and business disruptions. The Corporate Third-Party Oversight group is responsible for Firmwide training, monitoring, reporting and standards with respect to third-party outsourcing risks. required by third parties with whom the Firm does business. --- ## Modified Risk: Level 3 analysis **Key changes:** - Updated: "Consolidated balance sheets changes The following describes significant changes to level 3 assets since December 31, 2024, for those items measured at fair value on a recurring basis." **Prior (2025):** Consolidated balance sheets changes The following describes significant changes to level 3 assets since December 31, 2023, for those items measured at fair value on a recurring basis. Refer to Assets and liabilities measured at fair value on a nonrecurring basis on page 199 for further information on changes impacting items measured at fair value on a nonrecurring basis. For the year ended December 31, 2024Level 3 assets were $23.8 billion at December 31, 2024, reflecting an increase of $127 million from December 31, 2023.The increase for the year ended December 31, 2024 was driven by:•$599 million increase in MSRs.•$586 million increase in other assets primarily due to purchases,offset by:•$472 million decrease in gross derivative receivables due to sales and settlements predominantly offset by gains, purchases and net transfers.•$663 million decrease in non-trading loans due to sales and settlements largely offset by gains, purchases and net transfers.Refer to Note 15 for information on MSRs.Refer to the sections below for additional information.Transfers between levels for instruments carried at fair value on a recurring basisDuring the year ended December 31, 2024, significant transfers from level 2 into level 3 included the following:•$1.0 billion of total debt and equity instruments, predominantly trading loans, driven by a decrease in observability.•$959 million of gross interest rate derivative receivables and $1.1 billion of gross interest rate derivative payables as a result of a decrease in observability and an increase in the significance of unobservable inputs.•$1.6 billion of gross equity derivative receivables and $1.7 billion of gross equity derivative payables as a result of a decrease in observability and an increase in the significance of unobservable inputs.•$816 million of non-trading loans driven by a decrease in observability.During the year ended December 31, 2024, significant transfers from level 3 into level 2 included the following:•$880 million of total debt and equity instruments, predominantly trading loans and equity securities, driven by an increase in observability.•$1.4 billion of gross equity derivative receivables and $2.0 billion of gross equity derivative payables as a result of an increase in observability and a decrease in the significance of unobservable inputs.•$863 million of long-term debt as a result of an increase in observability and a decrease in the significance of unobservable inputs.During the year ended December 31, 2023, significant transfers from level 2 into level 3 included the following:•$951 million of gross interest rate derivative receivables as a result of a decrease in observability and an increase in the significance of unobservable inputs and $2.1 billion of gross interest rate derivative payables as a result of transition to term SOFR for certain interest rate options.•$1.5 billion of gross equity derivative receivables and $829 million of gross equity derivative payables as a result of a decrease in observability and an increase in the significance of unobservable inputs.•$1.3 billion of non-trading loans driven by a decrease in observability. Consolidated balance sheets changes The following describes significant changes to level 3 assets since December 31, 2023, for those items measured at fair value on a recurring basis. Refer to Assets and liabilities measured at fair value on a nonrecurring basis on page 199 for further information on changes impacting items measured at fair value on a nonrecurring basis. For the year ended December 31, 2024Level 3 assets were $23.8 billion at December 31, 2024, reflecting an increase of $127 million from December 31, 2023.The increase for the year ended December 31, 2024 was driven by:•$599 million increase in MSRs.•$586 million increase in other assets primarily due to purchases,offset by:•$472 million decrease in gross derivative receivables due to sales and settlements predominantly offset by gains, purchases and net transfers.•$663 million decrease in non-trading loans due to sales and settlements largely offset by gains, purchases and net transfers.Refer to Note 15 for information on MSRs.Refer to the sections below for additional information.Transfers between levels for instruments carried at fair value on a recurring basisDuring the year ended December 31, 2024, significant transfers from level 2 into level 3 included the following:•$1.0 billion of total debt and equity instruments, predominantly trading loans, driven by a decrease in observability.•$959 million of gross interest rate derivative receivables and $1.1 billion of gross interest rate derivative payables as a result of a decrease in observability and an increase in the significance of unobservable inputs.•$1.6 billion of gross equity derivative receivables and $1.7 billion of gross equity derivative payables as a Consolidated balance sheets changes The following describes significant changes to level 3 assets since December 31, 2023, for those items measured at fair value on a recurring basis. Refer to Assets and liabilities measured at fair value on a nonrecurring basis on page 199 for further information on changes impacting items measured at fair value on a nonrecurring basis. For the year ended December 31, 2024 Level 3 assets were $23.8 billion at December 31, 2024, reflecting an increase of $127 million from December 31, 2023. The increase for the year ended December 31, 2024 was driven by: •$599 million increase in MSRs. •$586 million increase in other assets primarily due to purchases, offset by: •$472 million decrease in gross derivative receivables due to sales and settlements predominantly offset by gains, purchases and net transfers. •$663 million decrease in non-trading loans due to sales and settlements largely offset by gains, purchases and net transfers. Refer to Note 15 for information on MSRs. Refer to the sections below for additional information. **Current (2026):** Consolidated balance sheets changes The following describes significant changes to level 3 assets since December 31, 2024, for those items measured at fair value on a recurring basis. Refer to Assets and liabilities measured at fair value on a nonrecurring basis on page 192 for further information on changes impacting items measured at fair value on a nonrecurring basis. For the year ended December 31, 2025Level 3 assets were $25.1 billion at December 31, 2025, reflecting an increase of $1.3 billion from December 31, 2024.The increase for the year ended December 31, 2025 was predominantly driven by:•Gross derivative receivables of $474 million due to gains and purchases predominantly offset by settlements and net transfers.•Non-trading loans of $646 million due to purchases and net transfers largely offset by settlements.Refer to the sections below for additional information.Transfers between levels for instruments carried at fair value on a recurring basisDuring the year ended December 31, 2025, significant transfers from level 2 into level 3 included the following:•$1.2 billion of total debt and equity instruments, predominantly trading loans and equity securities, driven by a decrease in observability.•$904 million of gross interest rate derivative payables as a result of a decrease in observability and an increase in the significance of unobservable inputs.•$1.6 billion of both gross equity derivative receivables and payables as a result of a decrease in observability and an increase in the significance of unobservable inputs.•$1.3 billion of non-trading loans driven by a decrease in observability.During the year ended December 31, 2025, significant transfers from level 3 into level 2 included the following:•$1.3 billion of total debt and equity instruments, predominantly trading loans, driven by an increase in observability.•$1.3 billion of gross interest rate derivative receivables and $1.2 billion of gross interest rate derivative payables as a result of an increase in observability and a decrease in the significance of unobservable inputs.•$2.1 billion of gross equity derivative receivables and $2.7 billion of gross equity derivative payables as a result of an increase in observability and a decrease in the significance of unobservable inputs.•$2.9 billion of long-term debt as a result of an increase in observability and a decrease in the significance of unobservable inputs.During the year ended December 31, 2024, significant transfers from level 2 into level 3 included the following:•$1.0 billion of total debt and equity instruments, predominantly trading loans, driven by a decrease in observability.•$959 million of gross interest rate derivative receivables and $1.1 billion of gross interest rate derivative payables as a result of a decrease in observability and an increase in the significance of unobservable inputs.•$1.6 billion of gross equity derivative receivables and $1.7 billion of gross equity derivative payables as a result of a decrease in observability and an increase in the significance of unobservable inputs.•$816 million of non-trading loans driven by a decrease in observability. Consolidated balance sheets changes The following describes significant changes to level 3 assets since December 31, 2024, for those items measured at fair value on a recurring basis. Refer to Assets and liabilities measured at fair value on a nonrecurring basis on page 192 for further information on changes impacting items measured at fair value on a nonrecurring basis. For the year ended December 31, 2025Level 3 assets were $25.1 billion at December 31, 2025, reflecting an increase of $1.3 billion from December 31, 2024.The increase for the year ended December 31, 2025 was predominantly driven by:•Gross derivative receivables of $474 million due to gains and purchases predominantly offset by settlements and net transfers.•Non-trading loans of $646 million due to purchases and net transfers largely offset by settlements.Refer to the sections below for additional information.Transfers between levels for instruments carried at fair value on a recurring basisDuring the year ended December 31, 2025, significant transfers from level 2 into level 3 included the following:•$1.2 billion of total debt and equity instruments, predominantly trading loans and equity securities, driven by a decrease in observability.•$904 million of gross interest rate derivative payables as a result of a decrease in observability and an increase in the significance of unobservable inputs.•$1.6 billion of both gross equity derivative receivables and payables as a result of a decrease in observability and an increase in the significance of unobservable inputs.•$1.3 billion of non-trading loans driven by a decrease in observability.During the year ended December 31, 2025, significant transfers from level 3 into level 2 included the following: Consolidated balance sheets changes The following describes significant changes to level 3 assets since December 31, 2024, for those items measured at fair value on a recurring basis. Refer to Assets and liabilities measured at fair value on a nonrecurring basis on page 192 for further information on changes impacting items measured at fair value on a nonrecurring basis. For the year ended December 31, 2025 Level 3 assets were $25.1 billion at December 31, 2025, reflecting an increase of $1.3 billion from December 31, 2024. The increase for the year ended December 31, 2025 was predominantly driven by: •Gross derivative receivables of $474 million due to gains and purchases predominantly offset by settlements and net transfers. •Non-trading loans of $646 million due to purchases and net transfers largely offset by settlements. Refer to the sections below for additional information. --- ## Modified Risk: Allowance for credit losses on investment securities **Key changes:** - Updated: "The allowance for credit losses on investment securities as of December 31, 2025 was $106 million, which included the impact of a $17 million reduction in allowance related to a sale of a corporate debt security." **Prior (2025):** The allowance for credit losses on investment securities was $152 million, $128 million and $96 million as of December 31, 2024, 2023 and 2022, respectively, which included a cumulative-effect adjustment to retained earnings related to the transfer of HTM securities to AFS for the year ended December 31, 2023. **Current (2026):** The allowance for credit losses on investment securities as of December 31, 2025 was $106 million, which included the impact of a $17 million reduction in allowance related to a sale of a corporate debt security. As of December 31, 2024 and 2023, the allowance for credit losses in investment securities was $152 million and $128 million, respectively, which included a cumulative-effect adjustment to retained earnings related to the transfer of HTM securities to AFS for the year ended December 31, 2023. --- ## Modified Risk: Note 7 - Interest income and interest expense **Key changes:** - Updated: "These amounts are deferred in loans and investment securities, respectively, and recognized on a level-yield basis.Refer to Notes 5, 10, 11, 12, and 20 for further information on accounting for interest income and interest expense related to hedge accounting, investment securities, securities financing activities (i.e., securities purchased or sold under resale or repurchase agreements; securities borrowed; and securities loaned), loans and long-term debt, respectively.The following table presents the components of interest income and interest expense: Year ended December 31, (in millions)202520242023Interest incomeLoans(a)$93,843 $92,353 $83,384 Taxable securities26,903 21,947 17,390 Non-taxable securities(b)1,129 1,197 1,336 Total investment securities(a)28,032 23,144 18,726 Trading assets - debt instruments24,895 20,327 15,950 Federal funds sold and securities purchased under resale agreements16,706 18,299 15,079 Securities borrowed9,027 9,208 7,983 Deposits with banks13,099 22,297 21,797 All other interest-earning assets(c)7,739 8,305 7,669 Total interest income$193,341 $193,933 $170,588 Interest expenseInterest bearing deposits$45,112 $49,559 $40,016 Federal funds purchased and securities loaned or sold under repurchase agreements22,411 19,149 13,259 Short-term borrowings2,298 2,101 1,894 Trading liabilities - debt and all other interest-bearing liabilities(d)8,965 10,238 9,396 Long-term debt17,894 18,920 15,803 Beneficial interest issued by consolidated VIEs1,218 1,383 953 Total interest expense$97,898 $101,350 $81,321 Net interest income$95,443 $92,583 $89,267 Provision for credit losses14,212 10,678 9,320 Net interest income after provision for credit losses$81,231 $81,905 $79,947 (a)Includes the accretion of the purchase discount on certain acquired loans and investment securities associated with First Republic." - Added: "(b)Represents securities that are tax-exempt for U.S." - Added: "federal income tax purposes.(c)Includes interest earned on brokerage-related held-for-investment customer receivables, which are classified in accrued interest and accounts receivable, and all other interest-earning assets, which are classified in other assets on the Consolidated balance sheets.(d)All other interest-bearing liabilities includes interest expense on brokerage-related customer payables." - Updated: "The following table presents the components of interest income and interest expense: Year ended December 31, (in millions)202520242023Interest incomeLoans(a)$93,843 $92,353 $83,384 Taxable securities26,903 21,947 17,390 Non-taxable securities(b)1,129 1,197 1,336 Total investment securities(a)28,032 23,144 18,726 Trading assets - debt instruments24,895 20,327 15,950 Federal funds sold and securities purchased under resale agreements16,706 18,299 15,079 Securities borrowed9,027 9,208 7,983 Deposits with banks13,099 22,297 21,797 All other interest-earning assets(c)7,739 8,305 7,669 Total interest income$193,341 $193,933 $170,588 Interest expenseInterest bearing deposits$45,112 $49,559 $40,016 Federal funds purchased and securities loaned or sold under repurchase agreements22,411 19,149 13,259 Short-term borrowings2,298 2,101 1,894 Trading liabilities - debt and all other interest-bearing liabilities(d)8,965 10,238 9,396 Long-term debt17,894 18,920 15,803 Beneficial interest issued by consolidated VIEs1,218 1,383 953 Total interest expense$97,898 $101,350 $81,321 Net interest income$95,443 $92,583 $89,267 Provision for credit losses14,212 10,678 9,320 Net interest income after provision for credit losses$81,231 $81,905 $79,947 (a)Includes the accretion of the purchase discount on certain acquired loans and investment securities associated with First Republic." - Updated: "(b)Represents securities that are tax-exempt for U.S." **Prior (2025):** Interest income and interest expense are recorded in the Consolidated statements of income and classified based on the nature of the underlying asset or liability.Interest income and interest expense includes the current-period interest accruals for financial instruments measured at fair value, except for derivatives and certain financial instruments containing embedded derivatives; for those instruments, all changes in fair value including any interest elements, are primarily reported in principal transactions revenue. For financial instruments that are not measured at fair value, the related interest is included within interest income or interest expense, as applicable. Interest income and interest expense also includes the effect of derivatives that qualify for hedge accounting where applicable.Interest income on loans and securities include the amortization and accretion of purchase premiums and discounts, as well as net deferred fees and costs on loans. These amounts are deferred in loans and investment securities, respectively, and recognized on a level-yield basis.Refer to Notes 5, 10, 11, 12, and 20 for further information on accounting for interest income and interest expense related to hedge accounting, investment securities, securities financing activities (i.e., securities purchased or sold under resale or repurchase agreements; securities borrowed; and securities loaned), loans and long-term debt, respectively.The following table presents the components of interest income and interest expense: Year ended December 31, (in millions)202420232022Interest incomeLoans$92,353 (d)$83,384 (d)$52,736 Taxable securities21,947 17,390 10,372 Non-taxable securities(a)1,197 1,336 975 Total investment securities23,144 (d)18,726 (d)11,347 Trading assets - debt instruments20,327 15,950 9,053 Federal funds sold and securities purchased under resale agreements18,299 15,079 4,632 Securities borrowed9,208 7,983 2,237 Deposits with banks22,297 21,797 9,039 All other interest-earning assets(b)8,305 7,669 3,763 Total interest income$193,933 $170,588 $92,807 Interest expenseInterest bearing deposits$49,559 $40,016 $10,082 Federal funds purchased and securities loaned or sold under repurchase agreements19,149 13,259 3,721 Short-term borrowings2,101 1,894 747 Trading liabilities - debt and all other interest-bearing liabilities(c)10,238 9,396 3,246 Long-term debt18,920 15,803 8,075 Beneficial interest issued by consolidated VIEs1,383 953 226 Total interest expense$101,350 $81,321 $26,097 Net interest income$92,583 $89,267 $66,710 Provision for credit losses10,678 9,320 6,389 Net interest income after provision for credit losses$81,905 $79,947 $60,321 (a)Represents securities that are tax-exempt for U.S. federal income tax purposes.(b)Includes interest earned on brokerage-related held-for-investment customer receivables, which are classified in accrued interest and accounts receivable, and all other interest-earning assets, which are classified in other assets on the Consolidated balance sheets.(c)All other interest-bearing liabilities includes interest expense on brokerage-related customer payables.(d)Includes the accretion of the purchase discount on certain acquired loans and investment securities associated with First Republic. Refer to Note 34 for additional information. Interest income and interest expense are recorded in the Consolidated statements of income and classified based on the nature of the underlying asset or liability.Interest income and interest expense includes the current-period interest accruals for financial instruments measured at fair value, except for derivatives and certain financial instruments containing embedded derivatives; for those instruments, all changes in fair value including any interest elements, are primarily reported in principal transactions revenue. For financial instruments that are not measured at fair value, the related interest is included within interest income or interest expense, as applicable. Interest income and interest expense also includes the effect of derivatives that qualify for hedge accounting where applicable.Interest income on loans and securities include the amortization and accretion of purchase premiums and discounts, as well as net deferred fees and costs on loans. These amounts are deferred in loans and investment securities, respectively, and recognized on a level-yield basis.Refer to Notes 5, 10, 11, 12, and 20 for further information on accounting for interest income and interest expense related to hedge accounting, investment securities, securities financing activities (i.e., securities purchased or sold under resale or repurchase agreements; securities borrowed; and securities loaned), loans and long-term debt, respectively. Interest income and interest expense are recorded in the Consolidated statements of income and classified based on the nature of the underlying asset or liability. Interest income and interest expense includes the current-period interest accruals for financial instruments measured at fair value, except for derivatives and certain financial instruments containing embedded derivatives; for those instruments, all changes in fair value including any interest elements, are primarily reported in principal transactions revenue. For financial instruments that are not measured at fair value, the related interest is included within interest income or interest expense, as applicable. Interest income and interest expense also includes the effect of derivatives that qualify for hedge accounting where applicable. Interest income on loans and securities include the amortization and accretion of purchase premiums and discounts, as well as net deferred fees and costs on loans. These amounts are deferred in loans and investment securities, respectively, and recognized on a level-yield basis. Refer to Notes 5, 10, 11, 12, and 20 for further information on accounting for interest income and interest expense related to hedge accounting, investment securities, securities financing activities (i.e., securities purchased or sold under resale or repurchase agreements; securities borrowed; and securities loaned), loans and long-term debt, respectively. The following table presents the components of interest income and interest expense: Year ended December 31, (in millions)202420232022Interest incomeLoans$92,353 (d)$83,384 (d)$52,736 Taxable securities21,947 17,390 10,372 Non-taxable securities(a)1,197 1,336 975 Total investment securities23,144 (d)18,726 (d)11,347 Trading assets - debt instruments20,327 15,950 9,053 Federal funds sold and securities purchased under resale agreements18,299 15,079 4,632 Securities borrowed9,208 7,983 2,237 Deposits with banks22,297 21,797 9,039 All other interest-earning assets(b)8,305 7,669 3,763 Total interest income$193,933 $170,588 $92,807 Interest expenseInterest bearing deposits$49,559 $40,016 $10,082 Federal funds purchased and securities loaned or sold under repurchase agreements19,149 13,259 3,721 Short-term borrowings2,101 1,894 747 Trading liabilities - debt and all other interest-bearing liabilities(c)10,238 9,396 3,246 Long-term debt18,920 15,803 8,075 Beneficial interest issued by consolidated VIEs1,383 953 226 Total interest expense$101,350 $81,321 $26,097 Net interest income$92,583 $89,267 $66,710 Provision for credit losses10,678 9,320 6,389 Net interest income after provision for credit losses$81,905 $79,947 $60,321 (a)Represents securities that are tax-exempt for U.S. federal income tax purposes.(b)Includes interest earned on brokerage-related held-for-investment customer receivables, which are classified in accrued interest and accounts receivable, and all other interest-earning assets, which are classified in other assets on the Consolidated balance sheets.(c)All other interest-bearing liabilities includes interest expense on brokerage-related customer payables.(d)Includes the accretion of the purchase discount on certain acquired loans and investment securities associated with First Republic. Refer to Note 34 for additional information. The following table presents the components of interest income and interest expense: Year ended December 31, (in millions)202420232022Interest incomeLoans$92,353 (d)$83,384 (d)$52,736 Taxable securities21,947 17,390 10,372 Non-taxable securities(a)1,197 1,336 975 Total investment securities23,144 (d)18,726 (d)11,347 Trading assets - debt instruments20,327 15,950 9,053 Federal funds sold and securities purchased under resale agreements18,299 15,079 4,632 Securities borrowed9,208 7,983 2,237 Deposits with banks22,297 21,797 9,039 All other interest-earning assets(b)8,305 7,669 3,763 Total interest income$193,933 $170,588 $92,807 Interest expenseInterest bearing deposits$49,559 $40,016 $10,082 Federal funds purchased and securities loaned or sold under repurchase agreements19,149 13,259 3,721 Short-term borrowings2,101 1,894 747 Trading liabilities - debt and all other interest-bearing liabilities(c)10,238 9,396 3,246 Long-term debt18,920 15,803 8,075 Beneficial interest issued by consolidated VIEs1,383 953 226 Total interest expense$101,350 $81,321 $26,097 Net interest income$92,583 $89,267 $66,710 Provision for credit losses10,678 9,320 6,389 Net interest income after provision for credit losses$81,905 $79,947 $60,321 Loans (d) (d) Non-taxable securities(a) Total investment securities (d) (d) Federal funds sold and securities purchased under resale agreements All other interest-earning assets(b) Federal funds purchased and securities loaned or sold under repurchase agreements Short-term borrowings Trading liabilities - debt and all other interest-bearing liabilities(c) Beneficial interest issued by consolidated VIEs **Current (2026):** Interest income and interest expense are recorded in the Consolidated statements of income and classified based on the nature of the underlying asset or liability.Interest income and interest expense includes the current-period interest accruals for financial instruments measured at fair value, except for derivatives and certain financial instruments containing embedded derivatives; for those instruments, all changes in fair value including any interest elements, are primarily reported in principal transactions revenue. For financial instruments that are not measured at fair value, the related interest is included within interest income or interest expense, as applicable. Interest income and interest expense also includes the effect of derivatives that qualify for hedge accounting where applicable.Interest income on loans and securities include the amortization and accretion of purchase premiums and discounts, as well as net deferred fees and costs on loans. These amounts are deferred in loans and investment securities, respectively, and recognized on a level-yield basis.Refer to Notes 5, 10, 11, 12, and 20 for further information on accounting for interest income and interest expense related to hedge accounting, investment securities, securities financing activities (i.e., securities purchased or sold under resale or repurchase agreements; securities borrowed; and securities loaned), loans and long-term debt, respectively.The following table presents the components of interest income and interest expense: Year ended December 31, (in millions)202520242023Interest incomeLoans(a)$93,843 $92,353 $83,384 Taxable securities26,903 21,947 17,390 Non-taxable securities(b)1,129 1,197 1,336 Total investment securities(a)28,032 23,144 18,726 Trading assets - debt instruments24,895 20,327 15,950 Federal funds sold and securities purchased under resale agreements16,706 18,299 15,079 Securities borrowed9,027 9,208 7,983 Deposits with banks13,099 22,297 21,797 All other interest-earning assets(c)7,739 8,305 7,669 Total interest income$193,341 $193,933 $170,588 Interest expenseInterest bearing deposits$45,112 $49,559 $40,016 Federal funds purchased and securities loaned or sold under repurchase agreements22,411 19,149 13,259 Short-term borrowings2,298 2,101 1,894 Trading liabilities - debt and all other interest-bearing liabilities(d)8,965 10,238 9,396 Long-term debt17,894 18,920 15,803 Beneficial interest issued by consolidated VIEs1,218 1,383 953 Total interest expense$97,898 $101,350 $81,321 Net interest income$95,443 $92,583 $89,267 Provision for credit losses14,212 10,678 9,320 Net interest income after provision for credit losses$81,231 $81,905 $79,947 (a)Includes the accretion of the purchase discount on certain acquired loans and investment securities associated with First Republic. Refer to Note 34 for additional information. (b)Represents securities that are tax-exempt for U.S. federal income tax purposes.(c)Includes interest earned on brokerage-related held-for-investment customer receivables, which are classified in accrued interest and accounts receivable, and all other interest-earning assets, which are classified in other assets on the Consolidated balance sheets.(d)All other interest-bearing liabilities includes interest expense on brokerage-related customer payables. Interest income and interest expense are recorded in the Consolidated statements of income and classified based on the nature of the underlying asset or liability.Interest income and interest expense includes the current-period interest accruals for financial instruments measured at fair value, except for derivatives and certain financial instruments containing embedded derivatives; for those instruments, all changes in fair value including any interest elements, are primarily reported in principal transactions revenue. For financial instruments that are not measured at fair value, the related interest is included within interest income or interest expense, as applicable. Interest income and interest expense also includes the effect of derivatives that qualify for hedge accounting where applicable.Interest income on loans and securities include the amortization and accretion of purchase premiums and discounts, as well as net deferred fees and costs on loans. These amounts are deferred in loans and investment securities, respectively, and recognized on a level-yield basis.Refer to Notes 5, 10, 11, 12, and 20 for further information on accounting for interest income and interest expense related to hedge accounting, investment securities, securities financing activities (i.e., securities purchased or sold under resale or repurchase agreements; securities borrowed; and securities loaned), loans and long-term debt, respectively. Interest income and interest expense are recorded in the Consolidated statements of income and classified based on the nature of the underlying asset or liability. Interest income and interest expense includes the current-period interest accruals for financial instruments measured at fair value, except for derivatives and certain financial instruments containing embedded derivatives; for those instruments, all changes in fair value including any interest elements, are primarily reported in principal transactions revenue. For financial instruments that are not measured at fair value, the related interest is included within interest income or interest expense, as applicable. Interest income and interest expense also includes the effect of derivatives that qualify for hedge accounting where applicable. Interest income on loans and securities include the amortization and accretion of purchase premiums and discounts, as well as net deferred fees and costs on loans. These amounts are deferred in loans and investment securities, respectively, and recognized on a level-yield basis. Refer to Notes 5, 10, 11, 12, and 20 for further information on accounting for interest income and interest expense related to hedge accounting, investment securities, securities financing activities (i.e., securities purchased or sold under resale or repurchase agreements; securities borrowed; and securities loaned), loans and long-term debt, respectively. The following table presents the components of interest income and interest expense: Year ended December 31, (in millions)202520242023Interest incomeLoans(a)$93,843 $92,353 $83,384 Taxable securities26,903 21,947 17,390 Non-taxable securities(b)1,129 1,197 1,336 Total investment securities(a)28,032 23,144 18,726 Trading assets - debt instruments24,895 20,327 15,950 Federal funds sold and securities purchased under resale agreements16,706 18,299 15,079 Securities borrowed9,027 9,208 7,983 Deposits with banks13,099 22,297 21,797 All other interest-earning assets(c)7,739 8,305 7,669 Total interest income$193,341 $193,933 $170,588 Interest expenseInterest bearing deposits$45,112 $49,559 $40,016 Federal funds purchased and securities loaned or sold under repurchase agreements22,411 19,149 13,259 Short-term borrowings2,298 2,101 1,894 Trading liabilities - debt and all other interest-bearing liabilities(d)8,965 10,238 9,396 Long-term debt17,894 18,920 15,803 Beneficial interest issued by consolidated VIEs1,218 1,383 953 Total interest expense$97,898 $101,350 $81,321 Net interest income$95,443 $92,583 $89,267 Provision for credit losses14,212 10,678 9,320 Net interest income after provision for credit losses$81,231 $81,905 $79,947 (a)Includes the accretion of the purchase discount on certain acquired loans and investment securities associated with First Republic. Refer to Note 34 for additional information. (b)Represents securities that are tax-exempt for U.S. federal income tax purposes.(c)Includes interest earned on brokerage-related held-for-investment customer receivables, which are classified in accrued interest and accounts receivable, and all other interest-earning assets, which are classified in other assets on the Consolidated balance sheets.(d)All other interest-bearing liabilities includes interest expense on brokerage-related customer payables. The following table presents the components of interest income and interest expense: Year ended December 31, (in millions)202520242023Interest incomeLoans(a)$93,843 $92,353 $83,384 Taxable securities26,903 21,947 17,390 Non-taxable securities(b)1,129 1,197 1,336 Total investment securities(a)28,032 23,144 18,726 Trading assets - debt instruments24,895 20,327 15,950 Federal funds sold and securities purchased under resale agreements16,706 18,299 15,079 Securities borrowed9,027 9,208 7,983 Deposits with banks13,099 22,297 21,797 All other interest-earning assets(c)7,739 8,305 7,669 Total interest income$193,341 $193,933 $170,588 Interest expenseInterest bearing deposits$45,112 $49,559 $40,016 Federal funds purchased and securities loaned or sold under repurchase agreements22,411 19,149 13,259 Short-term borrowings2,298 2,101 1,894 Trading liabilities - debt and all other interest-bearing liabilities(d)8,965 10,238 9,396 Long-term debt17,894 18,920 15,803 Beneficial interest issued by consolidated VIEs1,218 1,383 953 Total interest expense$97,898 $101,350 $81,321 Net interest income$95,443 $92,583 $89,267 Provision for credit losses14,212 10,678 9,320 Net interest income after provision for credit losses$81,231 $81,905 $79,947 Loans(a) Non-taxable securities(b) Total investment securities(a) Federal funds sold and securities purchased under resale agreements All other interest-earning assets(c) Federal funds purchased and securities loaned or sold under repurchase agreements Short-term borrowings Trading liabilities - debt and all other interest-bearing liabilities(d) Beneficial interest issued by consolidated VIEs --- ## Modified Risk: Notes to consolidated financial statements **Key changes:** - Removed: "(a)Includes collateral-dependent residential real estate loans that are charged down to the fair value of the underlying collateral less costs to sell." - Removed: "The Firm reports, in accordance with regulatory guidance, residential real estate loans that have been discharged under Chapter 7 bankruptcy and not reaffirmed by the borrower ("Chapter 7 loans") as collateral-dependent nonaccrual loans, regardless of their delinquency status." - Removed: "At December 31, 2024, approximately 8% of Chapter 7 residential real estate loans were 30 days or more past due." - Removed: "(b)Mortgage loans insured by U.S." - Removed: "government agencies excluded from nonaccrual loans were not material at December 31, 2024 and 2023." **Prior (2025):** (a)Includes collateral-dependent residential real estate loans that are charged down to the fair value of the underlying collateral less costs to sell. The Firm reports, in accordance with regulatory guidance, residential real estate loans that have been discharged under Chapter 7 bankruptcy and not reaffirmed by the borrower ("Chapter 7 loans") as collateral-dependent nonaccrual loans, regardless of their delinquency status. At December 31, 2024, approximately 8% of Chapter 7 residential real estate loans were 30 days or more past due. (b)Mortgage loans insured by U.S. government agencies excluded from nonaccrual loans were not material at December 31, 2024 and 2023. (c)Generally, all consumer nonaccrual loans have an allowance. In accordance with regulatory guidance, certain nonaccrual loans that are considered collateral-dependent have been charged down to the lower of amortized cost or the fair value of their underlying collateral less costs to sell. If the value of the underlying collateral improves subsequent to charge down, the related allowance may be negative. (d)Interest income on nonaccrual loans recognized on a cash basis was $160 million and $180 million for the years ended December 31, 2024 and 2023, respectively. (e)Represents the aggregate unpaid principal balance of loans divided by the estimated current property value. Current property values are estimated, at a minimum, quarterly, based on home valuation models using nationally recognized home price index valuation estimates incorporating actual data to the extent available and forecasted data where actual data is not available. Current estimated combined LTV for junior lien home equity loans considers all available lien positions, as well as unused lines, related to the property. (f)Refreshed FICO scores represent each borrower's most recent credit score, which is obtained by the Firm on at least a quarterly basis. (g)Includes residential real estate loans, primarily held in LLCs in AWM that did not have a refreshed FICO score. These loans have been included in a FICO band based on management's estimation of the borrower's credit quality. (h)Included U.S. government-guaranteed loans as of December 31, 2024 and 2023. (i)Excludes loans with no FICO and/or LTV data available. (j)The geographic regions presented in the table are ordered based on the magnitude of the corresponding loan balances at December 31, 2024. 250JPMorgan Chase & Co./2024 Form 10-K 250JPMorgan Chase & Co./2024 Form 10-K 250JPMorgan Chase & Co./2024 Form 10-K 250 JPMorgan Chase & Co./2024 Form 10-K Loan modifications The Firm grants certain modifications of residential real estate loans to borrowers experiencing financial difficulty. The Firm's proprietary modification programs as well as government programs, including U.S. GSE programs, that generally provide various modifications to borrowers experiencing financial difficulty including, but not limited to, interest rate reductions, term extensions, other-than-insignificant payment deferral and principal forgiveness that would otherwise have been required under the terms of the original agreement, are considered FDMs. In addition, the Firm offers trial modifications of residential real estate loans, which generally include a three-month trial payment period during which the borrower makes monthly payments under the proposed modified loan terms. Loans in a trial payment period continue to age and accrue interest in accordance with the original contractual terms. At the completion of a trial period, the loan modification is considered permanent.Financial effects of FDMsFor the year ended December 31, 2024, retained residential real estate FDMs were $206 million. The financial effects of the FDMs, which were predominantly in the form of term extensions and interest rate reductions, included extending the weighted-average life of the loans by 15 years, and reducing the weighted-average contractual interest rate from 7.53% to 5.44% for the year ended December 31, 2024. For the year ended December 31, 2023, retained residential real estate FDMs were $136 million. The financial effects of the FDMs, which were predominantly in the form of term extensions and interest rate reductions, included extending the weighted-average life of the loans by 20 years, and reducing the weighted-average contractual interest rate from 7.21% to 4.44% for the year ended December 31, 2023. As of December 31, 2024 and 2023, there were no additional commitments to lend to borrowers experiencing financial difficulty whose loans have been modified as FDMs.For the years ended December 31, 2024 and 2023, loans subject to a trial modification, where the terms of the loans have not been permanently modified, and Chapter 7 loans were not material.Payment status of FDMsThe following table provides information on the payment status of retained residential real estate FDMs during the years ended December 31, 2024 and 2023.Year ended December 31,(in millions)Amortized cost basis20242023Current$139 $107 30-149 days past due47 13 150 or more days past due20 16 Total $206 $136 Defaults of FDMsRetained residential real estate FDMs that defaulted during the year ended December 31, 2024 and that were reported as FDMs in the twelve months prior to the default were $93 million. Retained residential real estate FDMs that defaulted during the year ended December 31, 2023 and that were reported as FDMs on or after January 1, 2023, the date that the Firm adopted the changes to the TDR accounting guidance were not material. Refer to Note 1 for further information. Loan modifications The Firm grants certain modifications of residential real estate loans to borrowers experiencing financial difficulty. The Firm's proprietary modification programs as well as government programs, including U.S. GSE programs, that generally provide various modifications to borrowers experiencing financial difficulty including, but not limited to, interest rate reductions, term extensions, other-than-insignificant payment deferral and principal forgiveness that would otherwise have been required under the terms of the original agreement, are considered FDMs. In addition, the Firm offers trial modifications of residential real estate loans, which generally include a three-month trial payment period during which the borrower makes monthly payments under the proposed modified loan terms. Loans in a trial payment period continue to age and accrue interest in accordance with the original contractual terms. At the completion of a trial period, the loan modification is considered permanent.Financial effects of FDMsFor the year ended December 31, 2024, retained residential real estate FDMs were $206 million. The financial effects of the FDMs, which were predominantly in the form of term extensions and interest rate reductions, included extending the weighted-average life of the loans by 15 years, and reducing the weighted-average contractual interest rate from 7.53% to 5.44% for the year ended December 31, 2024. For the year ended December 31, 2023, retained residential real estate FDMs were $136 million. The financial effects of the FDMs, which were predominantly in the form of term extensions and interest rate reductions, included extending the weighted-average life of the loans by 20 years, and reducing the weighted-average contractual interest rate from 7.21% to 4.44% for the year ended December 31, 2023. As of December 31, 2024 and 2023, there were no additional commitments to lend to borrowers experiencing financial difficulty whose loans have been modified as FDMs.For the years ended December 31, 2024 and 2023, loans subject to a trial modification, where the terms of the loans have not been permanently modified, and Chapter 7 loans were not material. **Current (2026):** Loan modifications The Firm grants certain modifications of residential real estate loans to borrowers experiencing financial difficulty. The Firm's proprietary modification programs as well as government programs, including U.S. GSE programs, that generally provide various modifications to borrowers experiencing financial difficulty including, but not limited to, interest rate reductions, term extensions, other-than-insignificant payment deferral and principal forgiveness that would otherwise have been required under the terms of the original agreement, are considered FDMs. In addition, the Firm offers trial modifications of residential real estate loans, which generally include a three-month trial payment period during which the borrower makes monthly payments under the proposed modified loan terms. Loans in a trial payment period continue to age and accrue interest in accordance with the original contractual terms. At the completion of a trial period, the loan modification is considered permanent.Financial effects of FDMsFor the year ended December 31, 2025, retained residential real estate FDMs were $1.0 billion, which included $882 million of FDMs in the form of other-than-insignificant payment deferrals. These other-than-insignificant payment deferrals were driven by forbearances granted to certain borrowers impacted by the wildfires in Los Angeles County, California in January 2025 who were granted a second 90-day forbearance arrangement. The financial effects of the remaining FDMs, which were largely in the form of term extensions and interest rate reductions, included extending the weighted-average life of the loans by 19 years, and reducing the weighted-average contractual interest rate from 6.94% to 6.08% for the year ended December 31, 2025. For the year ended December 31, 2024, retained residential real estate FDMs were $206 million. The financial effects of the FDMs, which were predominantly in the form of term extensions and interest rate reductions, included extending the weighted-average life of the loans by 15 years, and reducing the weighted-average contractual interest rate from 7.53% to 5.44% for the year ended December 31, 2024.For the year ended December 31, 2023, retained residential real estate FDMs were $136 million. The financial effects of the FDMs, which were predominantly in the form of term extensions and interest rate reductions, included extending the weighted-average life of the loans by 20 years, and reducing the weighted-average contractual interest rate from 7.21% to 4.44% for the year ended December 31, 2023.As of December 31, 2025, additional unfunded commitments to lend to borrowers experiencing financial difficulty whose loans have been modified as FDMs were not material, while there were no additional unfunded commitments as of December 31, 2024.For the years ended December 31, 2025, 2024 and 2023, loans subject to a trial modification, where the terms of the loans have not been permanently modified, and Chapter 7 loans were not material.Payment status of FDMsThe following table provides information on the payment status of retained residential real estate FDMs during the years ended December 31, 2025, 2024 and 2023.Year ended December 31,(in millions)Amortized cost basis202520242023Current$408 $139 $107 30-149 days past due45 47 13 150 or more days past due571 20 16 Total $1,024 $206 $136 Defaults of FDMsDuring the years ended December 31, 2025, 2024 and 2023, defaults of retained residential real estate FDMs that had been modified within twelve months were $83 million, $93 million and not material, respectively. Active and suspended foreclosure At December 31, 2025 and 2024, the Firm had retained residential real estate loans, excluding those insured by U.S. government agencies, with a carrying value of $575 million and $576 million, respectively, that were not included in REO, but were in the process of active or suspended foreclosure. Loan modifications The Firm grants certain modifications of residential real estate loans to borrowers experiencing financial difficulty. The Firm's proprietary modification programs as well as government programs, including U.S. GSE programs, that generally provide various modifications to borrowers experiencing financial difficulty including, but not limited to, interest rate reductions, term extensions, other-than-insignificant payment deferral and principal forgiveness that would otherwise have been required under the terms of the original agreement, are considered FDMs. In addition, the Firm offers trial modifications of residential real estate loans, which generally include a three-month trial payment period during which the borrower makes monthly payments under the proposed modified loan terms. Loans in a trial payment period continue to age and accrue interest in accordance with the original contractual terms. At the completion of a trial period, the loan modification is considered permanent.Financial effects of FDMsFor the year ended December 31, 2025, retained residential real estate FDMs were $1.0 billion, which included $882 million of FDMs in the form of other-than-insignificant payment deferrals. These other-than-insignificant payment deferrals were driven by forbearances granted to certain borrowers impacted by the wildfires in Los Angeles County, California in January 2025 who were granted a second 90-day forbearance arrangement. The financial effects of the remaining FDMs, which were largely in the form of term extensions and interest rate reductions, included extending the weighted-average life of the loans by 19 years, and reducing the weighted-average contractual interest rate from 6.94% to 6.08% for the year ended December 31, 2025. For the year ended December 31, 2024, retained residential real estate FDMs were $206 million. The financial effects of the FDMs, which were predominantly in the form of term extensions and interest rate reductions, included extending the weighted-average life of the loans by 15 years, and reducing the weighted-average contractual interest rate from 7.53% to 5.44% for the year ended December 31, 2024.For the year ended December 31, 2023, retained residential real estate FDMs were $136 million. The financial effects of the FDMs, which were predominantly in the form of term extensions and interest rate reductions, included extending the weighted-average life of the loans by 20 years, and reducing the weighted-average contractual interest rate from 7.21% to 4.44% for the year ended December 31, 2023. --- ## Modified Risk: Repurchases under the common share repurchase program **Key changes:** - Updated: "Refer to Capital actions in the Capital Risk Management section of Management's discussion and analysis on page 97 for information regarding repurchases under the Firm's common share repurchase program." - Updated: "Management's discussion and analysis of financial condition and results of operations, entitled "Management's discussion and analysis," appears on pages 46-160." - Updated: "Refer to the Market Risk Management section of Management's discussion and analysis on pages 133-142 for a discussion of quantitative and qualitative disclosures about market risk." **Prior (2025):** Refer to Capital actions in the Capital Risk Management section of Management's discussion and analysis on page 105 for information regarding repurchases under the Firm's common share repurchase program. On June 28, 2024, the Firm announced that its Board of Directors had authorized a new $30 billion common share repurchase program, effective July 1, 2024. Through June 30, 2024, the Firm was authorized to purchase up to $30 billion of common shares under its previously-approved common share repurchase program that was announced on April 13, 2022. Shares repurchased pursuant to the common share repurchase programs during 2024 were as follows: Year ended December 31, 2024Total number of shares of common stock repurchasedAverage price paid per share of common stock(a)Aggregate purchase price of common stock repurchases (in millions)(a)Dollar valueof remainingauthorizedrepurchase(in millions)(a)(b)First quarter15,869,936 $179.50 $2,849 $16,886 Second quarter27,019,730 196.83 5,318 11,568 (c)Third quarter30,343,933 209.61 6,361 23,639 October6,173,254 218.00 1,345 22,294 November5,142,243 241.03 1,240 21,054 December7,170,130 241.10 1,728 19,326 Fourth quarter18,485,627 233.37 4,313 19,326 Full year91,719,226 $205.43 $18,841 $19,326 Total number of shares of common stock repurchased Average price paid per share of common stock(a) Aggregate purchase price of common stock repurchases (in millions)(a) Dollar value of remaining authorized repurchase (in millions)(a)(b) (c) Full year (a)Excludes excise tax and commissions. As part of the Inflation Reduction Act of 2022, a 1% excise tax is imposed on net share repurchases commencing January 1, 2023. (b)Represents the amount remaining under the $30 billion repurchase program. (c)The remaining $11.6 billion of share repurchase capacity under the prior Board authorization was canceled when the new $30 billion repurchase program was authorized by the Board of Directors effective July 1, 2024. Item 6. ReservedItem 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.Management's discussion and analysis of financial condition and results of operations, entitled "Management's discussion and analysis," appears on pages 52-167. Such information should be read in conjunction with the Consolidated Financial Statements and Notes thereto, which appear on pages 172-321.Item 7A. Quantitative and Qualitative Disclosures About Market Risk.Refer to the Market Risk Management section of Management's discussion and analysis on pages 141-149 for a discussion of quantitative and qualitative disclosures about market risk. Item 6. ReservedItem 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.Management's discussion and analysis of financial condition and results of operations, entitled "Management's discussion and analysis," appears on pages 52-167. Such information should be read in conjunction with the Consolidated Financial Statements and Notes thereto, which appear on pages 172-321. Item 6. Reserved Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations. Management's discussion and analysis of financial condition and results of operations, entitled "Management's discussion and analysis," appears on pages 52-167. Such information should be read in conjunction with the Consolidated Financial Statements and Notes thereto, which appear on pages 172-321. Item 7A. Quantitative and Qualitative Disclosures About Market Risk.Refer to the Market Risk Management section of Management's discussion and analysis on pages 141-149 for a discussion of quantitative and qualitative disclosures about market risk. Item 7A. Quantitative and Qualitative Disclosures About Market Risk. Refer to the Market Risk Management section of Management's discussion and analysis on pages 141-149 for a discussion of quantitative and qualitative disclosures about market risk. 39 39 39 39 **Current (2026):** Refer to Capital actions in the Capital Risk Management section of Management's discussion and analysis on page 97 for information regarding repurchases under the Firm's common share repurchase program. On July 1, 2025, the Firm announced that its Board of Directors had authorized a new $50 billion common share repurchase program, effective July 1, 2025. Through June 30, 2025, the Firm was authorized to purchase up to $30 billion of common shares under its previously-approved common share repurchase program that was announced on June 28, 2024. Shares repurchased pursuant to the common share repurchase programs during 2025 were as follows: Year ended December 31, 2025Total number of shares of common stock repurchasedAverage price paid per share of common stock(a)Aggregate purchase price of common stock repurchases (in millions)(a)Dollar valueof remainingauthorizedrepurchase(in millions)(a)First quarter29,953,620 $252.50 $7,563 $11,763 Second quarter29,800,960 251.67 7,500 4,263 (b)Third quarter27,987,016 297.10 8,315 41,685 October9,814,682 304.63 2,990 38,695 November7,923,457 307.82 2,439 36,256 December8,928,561 317.28 2,833 33,423 (c)Fourth quarter26,666,700 309.81 8,262 33,423 (c)Full year114,408,296 $276.55 $31,640 $33,423 (c) Total number of shares of common stock repurchased Average price paid per share of common stock(a) Aggregate purchase price of common stock repurchases (in millions)(a) Dollar value of remaining authorized repurchase (in millions)(a) (b) (c) (c) (c) (a)Excludes excise tax and commissions. (b)The $4.3 billion remaining under the prior Board authorization was canceled when the $50 billion repurchase program was authorized by the Board of Directors effective July 1, 2025. (c)Represents the amount remaining under the $50 billion repurchase program. Item 6. ReservedItem 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.Management's discussion and analysis of financial condition and results of operations, entitled "Management's discussion and analysis," appears on pages 46-160. Such information should be read in conjunction with the Consolidated Financial Statements and Notes thereto, which appear on pages 165-314.Item 7A. Quantitative and Qualitative Disclosures About Market Risk.Refer to the Market Risk Management section of Management's discussion and analysis on pages 133-142 for a discussion of quantitative and qualitative disclosures about market risk. Item 6. ReservedItem 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.Management's discussion and analysis of financial condition and results of operations, entitled "Management's discussion and analysis," appears on pages 46-160. Such information should be read in conjunction with the Consolidated Financial Statements and Notes thereto, which appear on pages 165-314. Item 6. Reserved Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations. Management's discussion and analysis of financial condition and results of operations, entitled "Management's discussion and analysis," appears on pages 46-160. Such information should be read in conjunction with the Consolidated Financial Statements and Notes thereto, which appear on pages 165-314. Item 7A. Quantitative and Qualitative Disclosures About Market Risk.Refer to the Market Risk Management section of Management's discussion and analysis on pages 133-142 for a discussion of quantitative and qualitative disclosures about market risk. Item 7A. Quantitative and Qualitative Disclosures About Market Risk. Refer to the Market Risk Management section of Management's discussion and analysis on pages 133-142 for a discussion of quantitative and qualitative disclosures about market risk. 33 33 33 33 --- ## Modified Risk: JPMorganChase could recognize unexpected losses, its capital levels could be reduced and it could face greater regulatory scrutiny if its models, estimations or judgments, including those used in its financial statements, are inadequate or incorrect. **Key changes:** - Updated: "JPMorganChase uses various models and other analytical and judgment-based estimations to measure, monitor and implement controls related to its market, credit, capital, liquidity, operational and other risks, as well as to prepare its financial statements under U.S." - Updated: "These models and estimations are based on historical trends and other assumptions that are periodically reviewed and modified." - Updated: "In addition, the reliability of JPMorganChase's models and estimations could become more uncertain if assets differ from those used to develop those models and estimations, which could also result in unexpected losses.Similarly, JPMorganChase establishes an allowance for expected losses related to its credit exposures which requires significant judgments, including forecasts of how macroeconomic conditions might impair the ability of JPMorganChase's clients and customers to repay their loans or other obligations." - Updated: "In addition, the reliability of JPMorganChase's models and estimations could become more uncertain if assets differ from those used to develop those models and estimations, which could also result in unexpected losses." **Prior (2025):** JPMorganChase has developed and uses a variety of models and other analytical and judgment-based estimations to measure, monitor and implement controls over its market, credit, capital, liquidity, operational and other risks. JPMorganChase also uses internal models and estimations as a basis for its stress testing and in connection with the preparation of its financial statements under U.S. generally accepted accounting principles ("U.S. GAAP"). These models and estimations are based on a variety of assumptions and historical trends, and are periodically reviewed and modified as necessary. The models and estimations that JPMorganChase uses, including those that use machine learning or artificial intelligence, may not be effective in all cases to identify, observe and mitigate risk due to a variety of factors, such as: •reliance on historical trends that may not persist in the future, including assumptions underlying the models and estimations such as correlations among certain market indicators or asset prices •inherent limitations associated with forecasting uncertain economic and financial outcomes •historical trend information may be incomplete, or may not be indicative of severely negative market conditions such as extreme volatility, dislocation or lack of liquidity •sudden illiquidity in markets or declines in prices of certain loans and securities may make it more difficult to value certain financial instruments •technology that is introduced to run models or estimations may not perform as expected, or may not be well understood by the personnel using the technology •models and estimations may contain erroneous data, valuations, formulas or algorithms •review processes may fail to detect flaws in models and estimations, and 29 29 29 29 Part I Part I •models may inadvertently incorporate biases present in data used in the models.JPMorganChase may experience unexpected losses if models, estimates or judgments used or applied in connection with its risk management activities or the preparation of its financial statements are inadequate or incorrect. For example, where quoted market prices are not available for certain financial instruments that require a determination of their fair value, JPMorganChase may make fair value determinations based on internally developed models or other means which ultimately rely to some degree on management estimates and judgment. In addition, JPMorganChase may experience increased uncertainty in its estimates if assets acquired differ from those used to develop those models, which may lead to unexpected losses.Similarly, JPMorganChase establishes an allowance for expected credit losses related to its credit exposures which requires significant judgments, including forecasts of how macroeconomic conditions might impair the ability of JPMorganChase's clients and customers to repay their loans or other obligations. These types of estimates and judgments may not prove to be accurate due to a variety of factors, including when the current and forecasted environments are significantly different from the historical environments upon which the models were developed. The increased uncertainty may necessitate a greater degree of judgment and analytics to inform any adjustments that JPMorganChase may make to model outputs than would otherwise be the case.Some of the models and other analytical and judgment-based estimations used by JPMorganChase in managing risks are subject to review by, and require the approval of, JPMorganChase's regulators. These reviews are required before JPMorganChase may use those models and estimations for calculating market risk RWA, credit risk RWA and operational risk RWA under Basel III. If JPMorganChase's models or estimations are not approved by its regulators, it may be subject to higher capital charges, which could adversely affect its financial results or limit the ability to expand its businesses. Lapses, weaknesses or deficiencies in controls over disclosure or financial reporting could materially affect JPMorganChase's profitability or reputation.JPMorganChase's businesses and operations are subject to complex and evolving laws, rules and regulations, both within and outside the U.S., requiring continuous enhancements to various disclosures in its financial statements and regulatory reports.There can be no assurance that JPMorganChase's disclosure controls and procedures will be effective in every circumstance, or that a material weakness or significant deficiency in internal control over financial reporting will not occur. Any such lapse, weakness or deficiency could result in inaccurate financial reporting which, in turn, could:•materially and adversely affect JPMorganChase's business and results of operations or financial condition•restrict its ability to access the capital markets •require it to expend significant resources to correct the lapse, weakness or deficiency•expose it to litigation or regulatory fines, penalties or other sanctions•harm its reputation, or •otherwise diminish investor confidence in JPMorganChase. StrategicJPMorganChase's results or competitive standing could suffer if its management fails to develop and execute effective business strategies, and to anticipate changes affecting those strategies.The development and execution of effective business strategies by JPMorganChase's management, along with the ability to anticipate and respond to shifts in the competitive environment, are critical to JPMorganChase's competitive standing and to achieving its strategic objectives. These strategies relate to:•the products and services that JPMorganChase offers•the geographies in which it operates•the types of clients and customers that it serves•the businesses that it acquires or in which it invests•the counterparties with which it does business•the technologies that it adopts or in which it invests, which may include new and currently unproven technologies, and•the methods, distribution channels and third party service providers by or through which it offers products and services. If management makes choices about these strategies and goals that prove to be incorrect, are based on incomplete, inaccurate or fraudulent information, do not accurately assess the competitive landscape and industry trends, or fail to address changing regulatory and market environments or the expectations of clients, customers, investors, employees and other stakeholders, then the franchise values and growth prospects of JPMorganChase's businesses may suffer and its earnings could decline.JPMorganChase's growth prospects also depend on management's ability to develop and execute effective business plans to address these strategic priorities, both in the near term and over longer time horizons. Management's effectiveness in this regard will affect •models may inadvertently incorporate biases present in data used in the models.JPMorganChase may experience unexpected losses if models, estimates or judgments used or applied in connection with its risk management activities or the preparation of its financial statements are inadequate or incorrect. For example, where quoted market prices are not available for certain financial instruments that require a determination of their fair value, JPMorganChase may make fair value determinations based on internally developed models or other means which ultimately rely to some degree on management estimates and judgment. In addition, JPMorganChase may experience increased uncertainty in its estimates if assets acquired differ from those used to develop those models, which may lead to unexpected losses.Similarly, JPMorganChase establishes an allowance for expected credit losses related to its credit exposures which requires significant judgments, including forecasts of how macroeconomic conditions might impair the ability of JPMorganChase's clients and customers to repay their loans or other obligations. These types of estimates and judgments may not prove to be accurate due to a variety of factors, including when the current and forecasted environments are significantly different from the historical environments upon which the models were developed. The increased uncertainty may necessitate a greater degree of judgment and analytics to inform any adjustments that JPMorganChase may make to model outputs than would otherwise be the case.Some of the models and other analytical and judgment-based estimations used by JPMorganChase in managing risks are subject to review by, and require the approval of, JPMorganChase's regulators. These reviews are required before JPMorganChase may use those models and estimations for calculating market risk RWA, credit risk RWA and operational risk RWA under Basel III. If JPMorganChase's models or estimations are not approved by its regulators, it may be subject to higher capital charges, which could adversely affect its financial results or limit the ability to expand its businesses. Lapses, weaknesses or deficiencies in controls over disclosure or financial reporting could materially affect JPMorganChase's profitability or reputation.JPMorganChase's businesses and operations are subject to complex and evolving laws, rules and regulations, both within and outside the U.S., requiring continuous enhancements to various disclosures in its financial statements and regulatory reports.There can be no assurance that JPMorganChase's disclosure controls and procedures will be effective in every circumstance, or that a material weakness or significant deficiency in internal control over financial reporting will not occur. Any such lapse, weakness or •models may inadvertently incorporate biases present in data used in the models. JPMorganChase may experience unexpected losses if models, estimates or judgments used or applied in connection with its risk management activities or the preparation of its financial statements are inadequate or incorrect. For example, where quoted market prices are not available for certain financial instruments that require a determination of their fair value, JPMorganChase may make fair value determinations based on internally developed models or other means which ultimately rely to some degree on management estimates and judgment. In addition, JPMorganChase may experience increased uncertainty in its estimates if assets acquired differ from those used to develop those models, which may lead to unexpected losses. Similarly, JPMorganChase establishes an allowance for expected credit losses related to its credit exposures which requires significant judgments, including forecasts of how macroeconomic conditions might impair the ability of JPMorganChase's clients and customers to repay their loans or other obligations. These types of estimates and judgments may not prove to be accurate due to a variety of factors, including when the current and forecasted environments are significantly different from the historical environments upon which the models were developed. The increased uncertainty may necessitate a greater degree of judgment and analytics to inform any adjustments that JPMorganChase may make to model outputs than would otherwise be the case. Some of the models and other analytical and judgment-based estimations used by JPMorganChase in managing risks are subject to review by, and require the approval of, JPMorganChase's regulators. These reviews are required before JPMorganChase may use those models and estimations for calculating market risk RWA, credit risk RWA and operational risk RWA under Basel III. If JPMorganChase's models or estimations are not approved by its regulators, it may be subject to higher capital charges, which could adversely affect its financial results or limit the ability to expand its businesses. **Current (2026):** JPMorganChase uses various models and other analytical and judgment-based estimations to measure, monitor and implement controls related to its market, credit, capital, liquidity, operational and other risks, as well as to prepare its financial statements under U.S. generally accepted accounting principles ("U.S. GAAP"). These models and estimations are based on historical trends and other assumptions that are periodically reviewed and modified. The models and estimations that JPMorganChase uses may not be effective in all cases to identify, observe and mitigate risk because of factors such as:•their reliance on historical trends that may not persist, including assumptions underlying the models and estimations such as correlations among certain market indicators or asset prices•inherent limitations associated with forecasting uncertain economic and financial outcomes•historical trend information may be incomplete, or may not be indicative of severely negative market conditions such as extreme volatility, dislocation or lack of liquidity•sudden illiquidity in markets or declines in prices of certain loans and securities could make it more difficult to value certain financial instruments•technology that is introduced to run models or estimations may not perform as expected, or may not be well understood by the personnel using the technology•models and estimations may contain erroneous data, valuations, formulas or algorithms•review processes may fail to detect flaws in models and estimations, and•models may inadvertently incorporate biases present in data used in the models.JPMorganChase could incur unexpected losses if models and estimations used in connection with its risk management activities or the preparation of its financial statements are inadequate or incorrect. For example, where quoted market prices are not available for certain financial instruments that require a determination of their fair value, JPMorganChase may make fair value determinations based on internally developed models or other means which ultimately rely to some degree on management estimates and judgment. In addition, the reliability of JPMorganChase's models and estimations could become more uncertain if assets differ from those used to develop those models and estimations, which could also result in unexpected losses.Similarly, JPMorganChase establishes an allowance for expected losses related to its credit exposures which requires significant judgments, including forecasts of how macroeconomic conditions might impair the ability of JPMorganChase's clients and customers to repay their loans or other obligations. These types of estimates and judgments may be inaccurate due to a variety of factors, including if the current and forecasted environments are significantly different market, credit, capital, liquidity, operational and other risks, as well as to prepare its financial statements under U.S. generally accepted accounting principles ("U.S. GAAP"). These models and estimations are based on historical trends and other assumptions that are periodically reviewed and modified. The models and estimations that JPMorganChase uses may not be effective in all cases to identify, observe and mitigate risk because of factors such as: •their reliance on historical trends that may not persist, including assumptions underlying the models and estimations such as correlations among certain market indicators or asset prices •inherent limitations associated with forecasting uncertain economic and financial outcomes •historical trend information may be incomplete, or may not be indicative of severely negative market conditions such as extreme volatility, dislocation or lack of liquidity •sudden illiquidity in markets or declines in prices of certain loans and securities could make it more difficult to value certain financial instruments •technology that is introduced to run models or estimations may not perform as expected, or may not be well understood by the personnel using the technology •models and estimations may contain erroneous data, valuations, formulas or algorithms •review processes may fail to detect flaws in models and estimations, and •models may inadvertently incorporate biases present in data used in the models. JPMorganChase could incur unexpected losses if models and estimations used in connection with its risk management activities or the preparation of its financial statements are inadequate or incorrect. For example, where quoted market prices are not available for certain financial instruments that require a determination of their fair value, JPMorganChase may make fair value determinations based on internally developed models or other means which ultimately rely to some degree on management estimates and judgment. In addition, the reliability of JPMorganChase's models and estimations could become more uncertain if assets differ from those used to develop those models and estimations, which could also result in unexpected losses. Similarly, JPMorganChase establishes an allowance for expected losses related to its credit exposures which requires significant judgments, including forecasts of how macroeconomic conditions might impair the ability of JPMorganChase's clients and customers to repay their loans or other obligations. These types of estimates and judgments may be inaccurate due to a variety of factors, including if the current and forecasted environments are significantly different 26 26 26 26 from the historical environments upon which the models were developed. Any heightened uncertainty associated with these estimates may necessitate a greater degree of judgment and analytics to inform any adjustments that JPMorganChase may make to model outputs.Some models and estimations used by JPMorganChase for managing risks require regulatory review and approval before JPMorganChase may use the models and estimations for calculating market risk RWA, credit risk RWA and operational risk RWA under Basel III. If JPMorganChase's models and estimations are not approved by its regulators, it could be subject to higher capital charges, which could adversely affect its financial results or limit its ability to expand its businesses.A significant inadequacy in disclosure or financial reporting controls could negatively affect JPMorganChase's business, operations and reputation.JPMorganChase is subject to complex global financial reporting obligations that require continuous enhancements to disclosures in its financial statements and regulatory reports. JPMorganChase's disclosure and financial reporting controls may not always be effective, and a material weakness or significant deficiency in internal control over financial reporting could occur. Any such significant lapse, weakness or deficiency could result in inaccurate financial reporting which, in turn, could:•materially and adversely affect JPMorganChase's business and results of operations or financial condition•restrict its ability to access the capital markets•require it to expend significant resources to correct the lapse, weakness or deficiency•expose it to litigation and penalties, and •cause reputational harm.StrategicJPMorganChase's results or competitive standing could suffer if its management fails to develop and execute effective business strategies and to anticipate changes affecting those strategies.The ability of JPMorganChase's management to develop and execute effective business strategies, and the ability to anticipate and respond to shifts in the competitive environment, are critical to JPMorganChase's competitive standing and to achieving its strategic objectives. These strategies relate to:•the products and services that JPMorganChase offers•the geographies in which it operates•the types of clients and customers that it serves•the businesses that it acquires or in which it invests•the counterparties with which it does business•the technologies that it adopts or in which it invests, and•the methods, distribution channels and third-party service providers by or through which it offers products and services.The values and growth prospects of JPMorganChase's businesses could suffer and its earnings could decline if management makes strategic choices that prove to be incorrect, are based on incomplete, inaccurate or fraudulent information, do not accurately assess the competitive landscape and industry trends, or fail to address changing regulatory and market environments or the expectations of clients, customers, investors, employees and other stakeholders. JPMorganChase's growth prospects also depend on management's ability to develop and execute effective business plans to address these strategic priorities, both over near term and longer time horizons. Management's effectiveness in this regard will affect JPMorganChase's ability to develop its resources, control expenses and return capital to shareholders. Each of these objectives could be adversely affected by any failure by management to:•devise effective business plans and strategies•offer products and services that meet expectations of clients and customers•allocate capital in a manner that promotes long-term stability to enable JPMorganChase to build and invest in market-leading businesses•appropriately assess and monitor principal investments •conduct appropriate due diligence on prospective business acquisitions or investments, or effectively integrate newly-acquired businesses•appropriately address concerns of clients, customers, investors, employees, regulators and other stakeholders•maintain an effective risk management framework•react quickly to changes in market conditions or structures•appropriately balance workforce planning and training as new technologies, such as AI, are adopted and integrated, or•develop the operational, technology, risk, financial and managerial capabilities necessary to grow and manage JPMorganChase's businesses.Furthermore, any expenses that JPMorganChase may incur in connection with disposing of assets, including excess properties, or exiting businesses or products could be material to its results of operations. from the historical environments upon which the models were developed. Any heightened uncertainty associated with these estimates may necessitate a greater degree of judgment and analytics to inform any adjustments that JPMorganChase may make to model outputs.Some models and estimations used by JPMorganChase for managing risks require regulatory review and approval before JPMorganChase may use the models and estimations for calculating market risk RWA, credit risk RWA and operational risk RWA under Basel III. If JPMorganChase's models and estimations are not approved by its regulators, it could be subject to higher capital charges, which could adversely affect its financial results or limit its ability to expand its businesses.A significant inadequacy in disclosure or financial reporting controls could negatively affect JPMorganChase's business, operations and reputation.JPMorganChase is subject to complex global financial reporting obligations that require continuous enhancements to disclosures in its financial statements and regulatory reports. JPMorganChase's disclosure and financial reporting controls may not always be effective, and a material weakness or significant deficiency in internal control over financial reporting could occur. Any such significant lapse, weakness or deficiency could result in inaccurate financial reporting which, in turn, could:•materially and adversely affect JPMorganChase's business and results of operations or financial condition•restrict its ability to access the capital markets•require it to expend significant resources to correct the lapse, weakness or deficiency•expose it to litigation and penalties, and •cause reputational harm.StrategicJPMorganChase's results or competitive standing could suffer if its management fails to develop and execute effective business strategies and to anticipate changes affecting those strategies.The ability of JPMorganChase's management to develop and execute effective business strategies, and the ability to anticipate and respond to shifts in the competitive environment, are critical to JPMorganChase's competitive standing and to achieving its strategic objectives. These strategies relate to:•the products and services that JPMorganChase offers•the geographies in which it operates•the types of clients and customers that it serves from the historical environments upon which the models were developed. Any heightened uncertainty associated with these estimates may necessitate a greater degree of judgment and analytics to inform any adjustments that JPMorganChase may make to model outputs. Some models and estimations used by JPMorganChase for managing risks require regulatory review and approval before JPMorganChase may use the models and estimations for calculating market risk RWA, credit risk RWA and operational risk RWA under Basel III. If JPMorganChase's models and estimations are not approved by its regulators, it could be subject to higher capital charges, which could adversely affect its financial results or limit its ability to expand its businesses. --- ## Modified Risk: Total investment banking fees **Key changes:** - Updated: "League table results - wallet share202520242023Year ended December 31,RankShareRankShareRankShareBased on fees(a)M&A(b)Global#2 8.3 %#1 9.2 %#2 8.9 %U.S.2 8.9 2 11.1 2 10.8 Equity and equity-related(c)Global1 9.3 1 10.9 1 7.7 U.S.1 12.6 1 14.6 1 14.4 Long-term debt(d)Global1 7.1 1 7.5 1 7.0 U.S.1 10.2 1 11.4 1 10.8 Loan syndicationsGlobal2 10.1 1 10.2 1 12.0 U.S.2 11.3 1 11.7 1 15.1 Global investment banking fees(e)#1 8.4 %#1 9.1 %#1 8.6 % Based on fees(a) M&A(b) Global U.S." **Prior (2025):** (a)Represents long-term debt and loan syndications. League table results - wallet share202420232022Year ended December 31,RankShareRankShareRankShareBased on fees(a)M&A(b)Global#1 9.6 %#2 9.0 %#2 7.9 %U.S.1 11.4 2 10.9 2 8.9 Equity and equity-related(c)Global1 11.0 1 7.7 2 5.7 U.S.1 14.7 1 14.4 1 14.0 Long-term debt(d)Global1 7.6 1 7.0 1 6.9 U.S.1 11.4 1 10.9 1 12.1 Loan syndicationsGlobal1 10.2 1 11.9 1 11.0 U.S.1 11.8 1 15.1 1 12.9 Global investment banking fees(e)#1 9.3 %#1 8.6 %#1 7.8 % Based on fees(a) M&A(b) Global U.S. **Current (2026):** (a)Represents long-term debt and loan syndications. League table results - wallet share202520242023Year ended December 31,RankShareRankShareRankShareBased on fees(a)M&A(b)Global#2 8.3 %#1 9.2 %#2 8.9 %U.S.2 8.9 2 11.1 2 10.8 Equity and equity-related(c)Global1 9.3 1 10.9 1 7.7 U.S.1 12.6 1 14.6 1 14.4 Long-term debt(d)Global1 7.1 1 7.5 1 7.0 U.S.1 10.2 1 11.4 1 10.8 Loan syndicationsGlobal2 10.1 1 10.2 1 12.0 U.S.2 11.3 1 11.7 1 15.1 Global investment banking fees(e)#1 8.4 %#1 9.1 %#1 8.6 % Based on fees(a) M&A(b) Global U.S. --- ## Modified Risk: Gains and losses **Key changes:** - Added: "For the year ended December 31, 2025, the net gain was attributable to higher than expected returns on plan assets, partially offset by projected benefit obligation net losses primarily related to changes in the discount rate." - Removed: "For the year ended December 31, 2023, the net gain was attributable to market-driven increases in the fair value of plan assets, partially offset by changes in the discount rate and interest crediting rate." - Added: "For the year ended December 31, 2025, the net gain was attributable to higher than expected returns on plan assets, partially offset by projected benefit obligation net losses primarily related to changes in the discount rate." - Updated: "December 31, 2025, the net gain was attributable to higher than expected returns on plan assets, partially offset by projected benefit obligation net losses primarily related to changes in the discount rate." - Updated: "Year ended December 31, (in millions)202520242023Total net periodic defined benefit plan credit(a)$(184)(b)$(462)$(393)Total defined contribution plans1,925 1,733 1,609 Total pension and OPEB cost included in noninterest expense$1,741 $1,271 $1,216 Total recognized in other comprehensive (income)/loss$(691)$131 $(421) Total net periodic defined benefit plan credit(a) (b) (a)The service cost component of net periodic defined benefit cost is reported in compensation expense; all other components of net periodic defined benefit costs are reported in other expense in the Consolidated statements of income." **Prior (2025):** Gains or losses resulting from changes in the benefit obligation and the fair value of plan assets are recorded in OCI. Amortization of net gains or losses are recognized as part of the net periodic benefit cost over subsequent periods, if, as of the beginning of the year, the net gain or loss exceeds 10% of the greater of the projected benefit obligation or the fair value of the plan assets. Amortization is generally over the average expected remaining lifetime of plan participants, given the frozen status of most plans. For the year ended December 31, 2024, the net loss was attributable to lower than expected returns on plan assets, partially offset by projected benefit obligation net gains primarily related to changes in the discount rate. For the year ended December 31, 2023, the net gain was attributable to market-driven increases in the fair value of plan assets, partially offset by changes in the discount rate and interest crediting rate. Gains or losses resulting from changes in the benefit obligation and the fair value of plan assets are recorded in OCI. Amortization of net gains or losses are recognized as part of the net periodic benefit cost over subsequent periods, if, as of the beginning of the year, the net gain or loss exceeds 10% of the greater of the projected benefit obligation or the fair value of the plan assets. Amortization is generally over the average expected remaining lifetime of plan participants, given the frozen status of most plans. For the year ended Gains or losses resulting from changes in the benefit obligation and the fair value of plan assets are recorded in OCI. Amortization of net gains or losses are recognized as part of the net periodic benefit cost over subsequent periods, if, as of the beginning of the year, the net gain or loss exceeds 10% of the greater of the projected benefit obligation or the fair value of the plan assets. Amortization is generally over the average expected remaining lifetime of plan participants, given the frozen status of most plans. For the year ended December 31, 2024, the net loss was attributable to lower than expected returns on plan assets, partially offset by projected benefit obligation net gains primarily related to changes in the discount rate. For the year ended December 31, 2023, the net gain was attributable to market-driven increases in the fair value of plan assets, partially offset by changes in the discount rate and interest crediting rate. December 31, 2024, the net loss was attributable to lower than expected returns on plan assets, partially offset by projected benefit obligation net gains primarily related to changes in the discount rate. For the year ended December 31, 2023, the net gain was attributable to market-driven increases in the fair value of plan assets, partially offset by changes in the discount rate and interest crediting rate. The following table presents the net periodic benefit costs reported in the Consolidated statements of income for the Firm's defined benefit pension, defined contribution and OPEB plans, and in other comprehensive income for the defined benefit pension and OPEB plans. Year ended December 31, (in millions)202420232022Total net periodic defined benefit plan cost/(credit)(a)$(462)$(393)$(192)(b)Total defined contribution plans1,733 1,609 1,408 Total pension and OPEB cost included in noninterest expense$1,271 $1,216 $1,216 Total recognized in other comprehensive (income)/loss$131 $(421)$1,459 Total net periodic defined benefit plan cost/(credit)(a) (b) (a)The service cost component of net periodic defined benefit cost is reported in compensation expense; all other components of net periodic defined benefit costs are reported in other expense in the Consolidated statements of income. (b)Includes pension settlement losses of $92 million for the year ended December 31, 2022. (b) 230JPMorgan Chase & Co./2024 Form 10-K 230JPMorgan Chase & Co./2024 Form 10-K 230JPMorgan Chase & Co./2024 Form 10-K 230 JPMorgan Chase & Co./2024 Form 10-K The following table presents the weighted-average actuarial assumptions used to determine the net periodic benefit costs for the defined benefit pension and OPEB plans. Year ended December 31,202420232022Discount rate5.16 %5.14 %2.54 %Expected long-term rate of return on plan assets6.15 %5.74 %3.68 % Plan assumptionsThe Firm's expected long-term rate of return is a blended weighted average, by asset allocation of the projected long-term returns for the various asset classes, taking into consideration local market conditions and the specific allocation of plan assets. Returns on asset classes are developed using a forward-looking approach and are not strictly based on historical returns, with consideration given to current market conditions and the portfolio mix of each plan. The discount rates used in determining the benefit obligations are generally provided by the Firm's actuaries, with the Firm's principal defined benefit pension plan using a rate that was selected by reference to the yields on portfolios of bonds with maturity dates and coupons that closely match the plan's projected annual cash flows. Investment strategy and asset allocationThe assets of the Firm's defined benefit pension plans are held in various trusts and are invested in well-diversified portfolios of equity and fixed income securities, cash and cash equivalents, and alternative investments. The Firm regularly reviews the asset allocations and asset managers, as well as other factors that could impact the portfolios, which are rebalanced when deemed necessary. As of December 31, 2024, the approved asset allocation ranges by asset class for the Firm's principal defined benefit plan are 41-100% debt securities, 0-40% equity securities, 0-1% real estate, and 0-8% alternatives.Assets held by the Firm's defined benefit pension and OPEB plans do not include securities issued by JPMorganChase or its affiliates, except through indirect exposures through investments in exchange traded funds, mutual funds and collective investment funds managed by third-parties. The defined benefit pension and OPEB plans hold investments that are sponsored or managed by affiliates of JPMorganChase in the amount of $1.8 billion as of both December 31, 2024 and 2023. Plan assumptionsThe Firm's expected long-term rate of return is a blended weighted average, by asset allocation of the projected long-term returns for the various asset classes, taking into consideration local market conditions and the specific allocation of plan assets. Returns on asset classes are developed using a forward-looking approach and are not strictly based on historical returns, with consideration given to current market conditions and the portfolio mix of each plan. The discount rates used in determining the benefit obligations are generally provided by the Firm's actuaries, with the Firm's principal defined benefit pension plan using a rate that was selected by reference to the yields on portfolios of bonds with maturity dates and coupons that closely match the plan's projected annual cash flows. **Current (2026):** Gains or losses resulting from changes in the benefit obligation and the fair value of plan assets are recorded in OCI. Amortization of net gains or losses are recognized as part of the net periodic benefit cost over subsequent periods, if, as of the beginning of the year, the net gain or loss exceeds 10% of the greater of the projected benefit obligation or the fair value of the plan assets. Amortization is generally over the average expected remaining lifetime of plan participants, given the frozen status of most plans. For the year ended December 31, 2025, the net gain was attributable to higher than expected returns on plan assets, partially offset by projected benefit obligation net losses primarily related to changes in the discount rate. For the year ended December 31, 2024, the net loss was attributable to lower than expected returns on plan assets, partially offset by projected benefit obligation net gains primarily related to changes in the discount rate. Gains or losses resulting from changes in the benefit obligation and the fair value of plan assets are recorded in OCI. Amortization of net gains or losses are recognized as part of the net periodic benefit cost over subsequent periods, if, as of the beginning of the year, the net gain or loss exceeds 10% of the greater of the projected benefit obligation or the fair value of the plan assets. Amortization is generally over the average expected remaining lifetime of plan participants, given the frozen status of most plans. For the year ended Gains or losses resulting from changes in the benefit obligation and the fair value of plan assets are recorded in OCI. Amortization of net gains or losses are recognized as part of the net periodic benefit cost over subsequent periods, if, as of the beginning of the year, the net gain or loss exceeds 10% of the greater of the projected benefit obligation or the fair value of the plan assets. Amortization is generally over the average expected remaining lifetime of plan participants, given the frozen status of most plans. For the year ended December 31, 2025, the net gain was attributable to higher than expected returns on plan assets, partially offset by projected benefit obligation net losses primarily related to changes in the discount rate. For the year ended December 31, 2024, the net loss was attributable to lower than expected returns on plan assets, partially offset by projected benefit obligation net gains primarily related to changes in the discount rate. December 31, 2025, the net gain was attributable to higher than expected returns on plan assets, partially offset by projected benefit obligation net losses primarily related to changes in the discount rate. For the year ended December 31, 2024, the net loss was attributable to lower than expected returns on plan assets, partially offset by projected benefit obligation net gains primarily related to changes in the discount rate. The following table presents the net periodic benefit costs reported in the Consolidated statements of income for the Firm's defined benefit pension, defined contribution and OPEB plans, and in other comprehensive income for the defined benefit pension and OPEB plans. Year ended December 31, (in millions)202520242023Total net periodic defined benefit plan credit(a)$(184)(b)$(462)$(393)Total defined contribution plans1,925 1,733 1,609 Total pension and OPEB cost included in noninterest expense$1,741 $1,271 $1,216 Total recognized in other comprehensive (income)/loss$(691)$131 $(421) Total net periodic defined benefit plan credit(a) (b) (a)The service cost component of net periodic defined benefit cost is reported in compensation expense; all other components of net periodic defined benefit costs are reported in other expense in the Consolidated statements of income. (b)Includes pension settlement losses of $78 million for the year ended December 31, 2025. (b) JPMorgan Chase & Co./2025 Form 10-K223 JPMorgan Chase & Co./2025 Form 10-K223 JPMorgan Chase & Co./2025 Form 10-K223 JPMorgan Chase & Co./2025 Form 10-K 223 --- ## Modified Risk: TCE, ROTCE and TBVPS **Key changes:** - Updated: "Period-endAverageDec 31,2025Dec 31,2024Year ended December 31,(in millions, except per share and ratio data)202520242023Common stockholders' equity$342,393 $324,708 $332,754 $312,370 $282,056 Less: Goodwill52,731 52,565 52,677 52,627 52,258 Less: Other intangible assets2,560 2,874 2,706 3,042 2,572 Add: Certain deferred tax liabilities(a)2,916 2,943 2,921 2,970 2,883 Tangible common equity$290,018 $272,212 $280,292 $259,671 $230,109 Return on tangible common equityNANA20 %22 %21 %Tangible book value per share$107.56 $97.30 NANANA Common stockholders' equity Less: Other intangible assets Add: Certain deferred tax liabilities(a) (a)Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in nontaxable transactions, which are netted against goodwill and other intangibles when calculating TCE." - Updated: "Refer to Explanation and Reconciliation of the Firm's Use of Non-GAAP Financial Measures, on pages 59-61 for a definition of managed basis." **Prior (2025):** TCE, ROTCE and TBVPS are each non-GAAP financial measures. TCE represents the Firm's common stockholders' equity (i.e., total stockholders' equity less preferred stock) less goodwill and identifiable intangible assets (other than MSRs), net of related deferred tax liabilities. ROTCE measures the Firm's net income applicable to common equity as a percentage of average TCE. TBVPS represents the Firm's TCE at period-end divided by common shares at period-end. TCE, ROTCE and TBVPS are utilized by the Firm, as well as investors and analysts, in assessing the Firm's use of equity. The following summary table provides a reconciliation from the Firm's common stockholders' equity to TCE. Period-endAverageDec 31,2024Dec 31,2023Year ended December 31,(in millions, except per share and ratio data)202420232022Common stockholders' equity$324,708 $300,474 $312,370 $282,056 $253,068 Less: Goodwill52,565 52,634 52,627 52,258 50,952 Less: Other intangible assets2,874 3,225 3,042 2,572 1,112 Add: Certain deferred tax liabilities(a)2,943 2,996 2,970 2,883 2,505 Tangible common equity$272,212 $247,611 $259,671 $230,109 $203,509 Return on tangible common equityNANA22 %21 %18 %Tangible book value per share$97.30 $86.08 NANANA Common stockholders' equity Less: Other intangible assets Add: Certain deferred tax liabilities(a) (a)Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in nontaxable transactions, which are netted against goodwill and other intangibles when calculating TCE. JPMorgan Chase & Co./2024 Form 10-K69 JPMorgan Chase & Co./2024 Form 10-K69 JPMorgan Chase & Co./2024 Form 10-K69 JPMorgan Chase & Co./2024 Form 10-K 69 BUSINESS SEGMENT & CORPORATE RESULTS The Firm is managed on an LOB basis. Effective in the second quarter of 2024, the Firm reorganized its reportable business segments by combining the former Corporate & Investment Bank and Commercial Banking business segments to form one reportable segment, the Commercial & Investment Bank ("CIB"). As a result of the reorganization, the Firm has three reportable business segments - Consumer & Community Banking, Commercial & Investment Bank, and Asset & Wealth Management - with the remaining activities in Corporate. The business segments are determined based on the products and services provided, or the type of customer served, and they reflect the manner in which financial information is evaluated by the Firm's Operating Committee, whose members act collectively as the Firm's chief operating decision maker. Segment results are presented on a managed basis. Refer to Explanation and Reconciliation of the Firm's use of Non-GAAP Financial Measures, on pages 67-69 for a definition of managed basis. The following table depicts the Firm's reportable business segments. **Current (2026):** TCE, ROTCE and TBVPS are each non-GAAP financial measures. TCE represents the Firm's common stockholders' equity (i.e., total stockholders' equity less preferred stock) less goodwill and identifiable intangible assets (other than MSRs), net of related deferred tax liabilities. ROTCE measures the Firm's net income applicable to common equity as a percentage of average TCE. TBVPS represents the Firm's TCE at period-end divided by common shares at period-end. TCE, ROTCE and TBVPS are utilized by the Firm, as well as investors and analysts, in assessing the Firm's use of equity. The following summary table provides a reconciliation from the Firm's common stockholders' equity to TCE. Period-endAverageDec 31,2025Dec 31,2024Year ended December 31,(in millions, except per share and ratio data)202520242023Common stockholders' equity$342,393 $324,708 $332,754 $312,370 $282,056 Less: Goodwill52,731 52,565 52,677 52,627 52,258 Less: Other intangible assets2,560 2,874 2,706 3,042 2,572 Add: Certain deferred tax liabilities(a)2,916 2,943 2,921 2,970 2,883 Tangible common equity$290,018 $272,212 $280,292 $259,671 $230,109 Return on tangible common equityNANA20 %22 %21 %Tangible book value per share$107.56 $97.30 NANANA Common stockholders' equity Less: Other intangible assets Add: Certain deferred tax liabilities(a) (a)Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in nontaxable transactions, which are netted against goodwill and other intangibles when calculating TCE. JPMorgan Chase & Co./2025 Form 10-K61 JPMorgan Chase & Co./2025 Form 10-K61 JPMorgan Chase & Co./2025 Form 10-K61 JPMorgan Chase & Co./2025 Form 10-K 61 BUSINESS SEGMENT & CORPORATE RESULTS The Firm is managed on an LOB basis. The Firm has three reportable business segments - Consumer & Community Banking, Commercial & Investment Bank, and Asset & Wealth Management - with the remaining activities in Corporate. The business segments are determined based on the products and services provided, or the type of customers and clients 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 59-61 for a definition of managed basis. The following table depicts the Firm's reportable business segments. --- ## Modified Risk: Firm as lessor **Key changes:** - Updated: "December 31,(in millions)20252024Carrying value of assets subject to operating leases, net of accumulated depreciation$20,130 $12,988 Accumulated depreciation3,177 2,509 Carrying value of assets subject to operating leases, net of accumulated depreciation Accumulated depreciation The following table presents the Firm's operating lease income and the related depreciation expense on the Consolidated statements of income." **Prior (2025):** The Firm provides auto and equipment lease financing to its customers through lease arrangements with lease terms that may contain renewal, termination and/or purchase options. The Firm's lease financings are predominantly auto operating leases. These assets subject to operating leases are recognized in other assets on the Firm's Consolidated balance sheets and are depreciated on a straight-line basis over the lease term to reduce the asset to its estimated residual value. Depreciation expense is included in technology, communications and equipment expense in the Consolidated statements of income. The Firm's lease income is generally recognized on a straight-line basis over the lease term and is included in other income in the Consolidated statements of income. On a periodic basis, the Firm assesses leased assets for impairment, and if the carrying amount of the leased asset exceeds the undiscounted cash flows from the lease payments and the estimated residual value upon disposition of the leased asset, an impairment is recognized. The risk of loss on auto and equipment leased assets relating to the residual value of the leased assets is monitored through projections of the asset residual values at lease origination and periodic review of residual values, and is mitigated through arrangements with certain manufacturers or lessees. The following table presents the carrying value of assets subject to leases reported on the Consolidated balance sheets. December 31,(in millions)20242023Carrying value of assets subject to operating leases, net of accumulated depreciation$12,988 $10,663 Accumulated depreciation2,509 3,288 Carrying value of assets subject to operating leases, net of accumulated depreciation Accumulated depreciation The following table presents the Firm's operating lease income and the related depreciation expense on the Consolidated statements of income. Year ended December 31, (in millions)202420232022Operating lease income$2,795 $2,843 $3,654 Depreciation expense1,685 1,778 2,475 Operating lease income Operating lease income Operating lease income The following table presents future receipts under operating leases as of December 31, 2024. Year ended December 31, (in millions)2025$2,381 20261,707 2027704 202847 20295 After 20294 Total future minimum lease receipts$4,848 The following table presents future receipts under operating leases as of December 31, 2024. Year ended December 31, (in millions)2025$2,381 20261,707 2027704 202847 20295 After 20294 Total future minimum lease receipts$4,848 JPMorgan Chase & Co./2024 Form 10-K287 JPMorgan Chase & Co./2024 Form 10-K287 JPMorgan Chase & Co./2024 Form 10-K287 JPMorgan Chase & Co./2024 Form 10-K 287 **Current (2026):** The Firm provides auto and equipment lease financing to its customers through lease arrangements with lease terms that may contain renewal, termination and/or purchase options. The Firm's lease financings are predominantly auto operating leases. These assets subject to operating leases are recognized in other assets on the Firm's Consolidated balance sheets and are depreciated on a straight-line basis over the lease term to reduce the asset to its estimated residual value. Depreciation expense is included in technology, communications and equipment expense in the Consolidated statements of income. The Firm's lease income is generally recognized on a straight-line basis over the lease term and is included in other income in the Consolidated statements of income. On a periodic basis, the Firm assesses leased assets for impairment, and if the carrying amount of the leased asset exceeds the undiscounted cash flows from the lease payments and the estimated residual value upon disposition of the leased asset, an impairment is recognized. The risk of loss on auto and equipment leased assets relating to the residual value of the leased assets is monitored through projections of the asset residual values at lease origination and periodic review of residual values, and is mitigated through arrangements with certain manufacturers or lessees. The following table presents the carrying value of assets subject to leases reported on the Consolidated balance sheets. December 31,(in millions)20252024Carrying value of assets subject to operating leases, net of accumulated depreciation$20,130 $12,988 Accumulated depreciation3,177 2,509 Carrying value of assets subject to operating leases, net of accumulated depreciation Accumulated depreciation The following table presents the Firm's operating lease income and the related depreciation expense on the Consolidated statements of income. Year ended December 31, (in millions)202520242023Operating lease income$3,803 $2,795 $2,843 Depreciation expense2,418 1,685 1,778 Operating lease income Operating lease income Operating lease income The following table presents future receipts under operating leases as of December 31, 2025. Year ended December 31, (in millions)2026$3,637 20272,645 20281,023 202944 20304 After 2030 - Total future minimum lease receipts$7,353 The following table presents future receipts under operating leases as of December 31, 2025. Year ended December 31, (in millions)2026$3,637 20272,645 20281,023 202944 20304 After 2030 - Total future minimum lease receipts$7,353 JPMorgan Chase & Co./2025 Form 10-K279 JPMorgan Chase & Co./2025 Form 10-K279 JPMorgan Chase & Co./2025 Form 10-K279 JPMorgan Chase & Co./2025 Form 10-K 279 --- ## Modified Risk: Note 25 - Income taxes **Key changes:** - Updated: "Thus, the Firm's final tax-related assets and liabilities may ultimately be different from those currently reported.For the year ended December 31, 2025, the Firm adopted the Income Taxes: Improvement to Income Tax Disclosures accounting standard, under the retrospective method." - Added: "federal income tax return." - Added: "JPMorganChase uses the asset and liability method to provide for income taxes on all transactions recorded in the Consolidated Financial Statements." - Added: "This method requires that income taxes reflect the expected future tax consequences of temporary differences between the carrying amounts of assets or liabilities for book and tax purposes." - Added: "Accordingly, a deferred tax asset or liability for each temporary difference is determined based on the tax rates that the Firm expects to be in effect when the underlying items of income and expense are realized." **Prior (2025):** JPMorganChase and its eligible subsidiaries file a consolidated U.S. federal income tax return. JPMorganChase uses the asset and liability method to provide for income taxes on all transactions recorded in the Consolidated Financial Statements. This method requires that income taxes reflect the expected future tax consequences of temporary differences between the carrying amounts of assets or liabilities for book and tax purposes. Accordingly, a deferred tax asset or liability for each temporary difference is determined based on the tax rates that the Firm expects to be in effect when the underlying items of income and expense are realized. JPMorganChase's expense for income taxes includes the current and deferred portions of that expense. A valuation allowance is established to reduce deferred tax assets to the amount the Firm expects to realize. Due to the inherent complexities arising from the nature of the Firm's businesses, and from conducting business and being taxed in a substantial number of jurisdictions, significant judgments and estimates are required to be made. Agreement of tax liabilities between JPMorganChase and the many tax jurisdictions in which the Firm files tax returns may not be finalized for several years. Thus, the Firm's final tax-related assets and liabilities may ultimately be different from those currently reported.Effective January 1, 2024, the Firm adopted updates to the Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method guidance, under the modified retrospective method. Refer to Notes 1, 6 and 14 for additional information.Effective tax rate and expenseThe following table presents a reconciliation of the applicable statutory U.S. federal income tax rate to the effective tax rate. Effective tax rateYear ended December 31,202420232022Statutory U.S. federal tax rate21.0 %21.0 %21.0 %Increase/(decrease) in tax rate resulting from:U.S. state and local income taxes, net of U.S. federal income tax benefit3.1 2.8 3.5 Tax-exempt income(0.7)(0.9)(0.9)Non-U.S. earnings1.4 1.5 0.4 Business tax credits(2.4)(4.4)(5.4)Other, net(0.3)(0.4)(0.2)Effective tax rate22.1 %19.6 %(a)18.4 %(a)Income tax expense associated with the First Republic acquisition was reflected in the estimated bargain purchase gain, which resulted in a reduction in the Firm's effective tax rate.The following table reflects the components of income tax expense/(benefit) included in the Consolidated statements of income. Income tax expense/(benefit)Year ended December 31, (in millions)202420232022Current income tax expense/(benefit)U.S. federal$7,091 $8,973 $5,606 Non-U.S.4,753 4,355 2,992 U.S. state and local2,762 3,266 2,630 Total current income tax expense/(benefit)14,606 16,594 11,228 Deferred income tax expense/(benefit)U.S. federal1,771 (3,475)(2,004)Non-U.S.72 35 (154)U.S. state and local161 (1,094)(580)Total deferred income tax expense/(benefit)2,004 (4,534)(2,738)Total income tax expense$16,610 $12,060 $8,490 Total income tax expense includes $314 million, $68 million and $331 million of tax benefits in 2024, 2023, and 2022, respectively, resulting from the resolution of tax audits.Tax effect of items recorded in stockholders' equityThe preceding table does not reflect the tax effect of certain items that are recorded each period directly in stockholders' equity, which are predominantly reflected in OCI as disclosed in Note 24. For the year ended December 31, 2024, stockholders' equity reflected the tax effect associated with the Firm's adoption of the Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method guidance. For the year ended December 31, 2023, stockholders' equity reflected the tax effect associated with the Firm's adoption of the TDR accounting guidance. Both of the respective adoptions were recognized in retained earnings. Refer to Note 1, 6 and 14 for further information.Results from U.S. and non-U.S. earningsThe following table presents the U.S. and non-U.S. components of income before income tax expense. Year ended December 31, (in millions)202420232022U.S.$59,472 $46,868 $34,626 Non-U.S.(a)15,609 14,744 11,540 Income before income tax expense$75,081 $61,612 $46,166 (a)For purposes of this table, non-U.S. income is defined as income generated from operations located outside the U.S.The Firm will recognize any U.S. income tax expense it may incur on global intangible low tax income as income tax expense in the period in which the tax is incurred. JPMorganChase and its eligible subsidiaries file a consolidated U.S. federal income tax return. JPMorganChase uses the asset and liability method to provide for income taxes on all transactions recorded in the Consolidated Financial Statements. This method requires that income taxes reflect the expected future tax consequences of temporary differences between the carrying amounts of assets or liabilities for book and tax purposes. Accordingly, a deferred tax asset or liability for each temporary difference is determined based on the tax rates that the Firm expects to be in effect when the underlying items of income and expense are realized. JPMorganChase's expense for income taxes includes the current and deferred portions of that expense. A valuation allowance is established to reduce deferred tax assets to the amount the Firm expects to realize. Due to the inherent complexities arising from the nature of the Firm's businesses, and from conducting business and being taxed in a substantial number of jurisdictions, significant judgments and estimates are required to be made. Agreement of tax liabilities between JPMorganChase and the many tax jurisdictions in which the Firm files tax returns may not be finalized for several years. Thus, the Firm's final tax-related assets and liabilities may ultimately be different from those currently reported.Effective January 1, 2024, the Firm adopted updates to the Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method guidance, under the modified retrospective method. Refer to Notes 1, 6 and 14 for additional information.Effective tax rate and expenseThe following table presents a reconciliation of the applicable statutory U.S. federal income tax rate to the effective tax rate. Effective tax rateYear ended December 31,202420232022Statutory U.S. federal tax rate21.0 %21.0 %21.0 %Increase/(decrease) in tax rate resulting from:U.S. state and local income taxes, net of U.S. federal income tax benefit3.1 2.8 3.5 Tax-exempt income(0.7)(0.9)(0.9)Non-U.S. earnings1.4 1.5 0.4 Business tax credits(2.4)(4.4)(5.4)Other, net(0.3)(0.4)(0.2)Effective tax rate22.1 %19.6 %(a)18.4 %(a)Income tax expense associated with the First Republic acquisition was reflected in the estimated bargain purchase gain, which resulted in a reduction in the Firm's effective tax rate. JPMorganChase and its eligible subsidiaries file a consolidated U.S. federal income tax return. JPMorganChase uses the asset and liability method to provide for income taxes on all transactions recorded in the Consolidated Financial Statements. This method requires that income taxes reflect the expected future tax consequences of temporary differences between the carrying amounts of assets or liabilities for book and tax purposes. Accordingly, a deferred tax asset or liability for each temporary difference is determined based on the tax rates that the Firm expects to be in effect when the underlying items of income and expense are realized. JPMorganChase's expense for income taxes includes the current and deferred portions of that expense. A valuation allowance is established to reduce deferred tax assets to the amount the Firm expects to realize. Due to the inherent complexities arising from the nature of the Firm's businesses, and from conducting business and being taxed in a substantial number of jurisdictions, significant judgments and estimates are required to be made. Agreement of tax liabilities between JPMorganChase and the many tax jurisdictions in which the Firm files tax returns may not be finalized for several years. Thus, the Firm's final tax-related assets and liabilities may ultimately be different from those currently reported. Effective January 1, 2024, the Firm adopted updates to the Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method guidance, under the modified retrospective method. Refer to Notes 1, 6 and 14 for additional information. **Current (2026):** JPMorganChase and its eligible subsidiaries file a consolidated U.S. federal income tax return. JPMorganChase uses the asset and liability method to provide for income taxes on all transactions recorded in the Consolidated Financial Statements. This method requires that income taxes reflect the expected future tax consequences of temporary differences between the carrying amounts of assets or liabilities for book and tax purposes. Accordingly, a deferred tax asset or liability for each temporary difference is determined based on the tax rates that the Firm expects to be in effect when the underlying items of income and expense are realized. JPMorganChase's expense for income taxes includes the current and deferred portions of that expense. A valuation allowance is established to reduce deferred tax assets to the amount the Firm expects to realize. Due to the inherent complexities arising from the nature of the Firm's businesses, and from conducting business and being taxed in a substantial number of jurisdictions, significant judgments and estimates are required to be made. Agreement of tax liabilities between JPMorganChase and the many tax jurisdictions in which the Firm files tax returns may not be finalized for several years. Thus, the Firm's final tax-related assets and liabilities may ultimately be different from those currently reported.For the year ended December 31, 2025, the Firm adopted the Income Taxes: Improvement to Income Tax Disclosures accounting standard, under the retrospective method. The adoption of this guidance resulted in expanded disclosures in certain tables below.Effective January 1, 2024, the Firm adopted updates to the Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method guidance, under the modified retrospective method. Refer to Notes 1, 6 and 14 for additional information. JPMorganChase and its eligible subsidiaries file a consolidated U.S. federal income tax return. JPMorganChase uses the asset and liability method to provide for income taxes on all transactions recorded in the Consolidated Financial Statements. This method requires that income taxes reflect the expected future tax consequences of temporary differences between the carrying amounts of assets or liabilities for book and tax purposes. Accordingly, a deferred tax asset or liability for each temporary difference is determined based on the tax rates that the Firm expects to be in effect when the underlying items of income and expense are realized. JPMorganChase's expense for income taxes includes the current and deferred portions of that expense. A valuation allowance is established to reduce deferred tax assets to the amount the Firm expects to realize. Due to the inherent complexities arising from the nature of the Firm's businesses, and from conducting business and being taxed in a substantial number of JPMorganChase and its eligible subsidiaries file a consolidated U.S. federal income tax return. JPMorganChase uses the asset and liability method to provide for income taxes on all transactions recorded in the Consolidated Financial Statements. This method requires that income taxes reflect the expected future tax consequences of temporary differences between the carrying amounts of assets or liabilities for book and tax purposes. Accordingly, a deferred tax asset or liability for each temporary difference is determined based on the tax rates that the Firm expects to be in effect when the underlying items of income and expense are realized. JPMorganChase's expense for income taxes includes the current and deferred portions of that expense. A valuation allowance is established to reduce deferred tax assets to the amount the Firm expects to realize. Due to the inherent complexities arising from the nature of the Firm's businesses, and from conducting business and being taxed in a substantial number of jurisdictions, significant judgments and estimates are required to be made. Agreement of tax liabilities between JPMorganChase and the many tax jurisdictions in which the Firm files tax returns may not be finalized for several years. Thus, the Firm's final tax-related assets and liabilities may ultimately be different from those currently reported.For the year ended December 31, 2025, the Firm adopted the Income Taxes: Improvement to Income Tax Disclosures accounting standard, under the retrospective method. The adoption of this guidance resulted in expanded disclosures in certain tables below.Effective January 1, 2024, the Firm adopted updates to the Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method guidance, under the modified retrospective method. Refer to Notes 1, 6 and 14 for additional information. jurisdictions, significant judgments and estimates are required to be made. Agreement of tax liabilities between JPMorganChase and the many tax jurisdictions in which the Firm files tax returns may not be finalized for several years. Thus, the Firm's final tax-related assets and liabilities may ultimately be different from those currently reported. For the year ended December 31, 2025, the Firm adopted the Income Taxes: Improvement to Income Tax Disclosures accounting standard, under the retrospective method. The adoption of this guidance resulted in expanded disclosures in certain tables below. Effective January 1, 2024, the Firm adopted updates to the Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method guidance, under the modified retrospective method. Refer to Notes 1, 6 and 14 for additional information. --- ## Modified Risk: Liabilities:(a) **Key changes:** - Updated: "(c)(f) (c)(f) (c)(f) (c)(f) Trading liabilities - debt and equity instruments (c) Accounts payable and other liabilities (c) (c) (c)(f) (c)(f) 188JPMorgan Chase & Co./2025 Form 10-K 188JPMorgan Chase & Co./2025 Form 10-K 188JPMorgan Chase & Co./2025 Form 10-K 188 JPMorgan Chase & Co./2025 Form 10-K (a)Level 3 assets at fair value as a percentage of total Firm assets at fair value (including assets measured at fair value on a nonrecurring basis) were 1% at December 31, 2025 and 2% at both December 31, 2024 and 2023." - Updated: "Realized and unrealized gains/(losses) recorded on level 3 AFS securities were not material for the years ended December 31, 2025, 2024 and 2023." - Updated: "(f)Realized (gains)/losses due to DVA for fair value option elected liabilities are reported in principal transactions revenue, and were not material for the years ended December 31, 2025, 2024 and 2023." **Prior (2025):** (a)Level 3 assets at fair value as a percentage of total Firm assets at fair value (including assets measured at fair value on a nonrecurring basis) were 2% at December 31, 2024, 2023 and 2022. Level 3 liabilities at fair value as a percentage of total Firm liabilities at fair value (including liabilities measured at fair value on a nonrecurring basis) were 9% at December 31, 2024, and 8% at both December 31, 2023 and 2022. (b)All level 3 derivatives are presented on a net basis, irrespective of the underlying counterparty. (c)Primarily reported in principal transactions revenue, except for changes in fair value for CCB mortgage loans and lending-related commitments originated with the intent to sell, and mortgage loan purchase commitments, which are reported in mortgage fees and related income. (d)Realized gains/(losses) on AFS securities are reported in investment securities gains/(losses). Unrealized gains/(losses) are reported in OCI. Realized and unrealized gains/(losses) recorded on level 3 AFS securities were not material for the years ended December 31, 2024, 2023 and 2022. (e)Changes in fair value for MSRs are reported in mortgage fees and related income. (f)Realized (gains)/losses due to DVA for fair value option elected liabilities are reported in principal transactions revenue, and were not material for the years ended December 31, 2024, 2023 and 2022. Unrealized (gains)/losses are reported in OCI, and were $(50) million, $(158) million and $(529) million for the years ended December 31, 2024, 2023 and 2022, respectively. (g)Loan originations are included in purchases. (h)Includes financial assets and liabilities that have matured, been partially or fully repaid, impacts of modifications, deconsolidations associated with beneficial interests in VIEs and other items. **Current (2026):** (c)(f) (c)(f) (c)(f) (c)(f) Trading liabilities - debt and equity instruments (c) Accounts payable and other liabilities (c) (c) (c)(f) (c)(f) 188JPMorgan Chase & Co./2025 Form 10-K 188JPMorgan Chase & Co./2025 Form 10-K 188JPMorgan Chase & Co./2025 Form 10-K 188 JPMorgan Chase & Co./2025 Form 10-K (a)Level 3 assets at fair value as a percentage of total Firm assets at fair value (including assets measured at fair value on a nonrecurring basis) were 1% at December 31, 2025 and 2% at both December 31, 2024 and 2023. Level 3 liabilities at fair value as a percentage of total Firm liabilities at fair value (including liabilities measured at fair value on a nonrecurring basis) were 9% at both December 31, 2025 and 2024 and 8% at December 31, 2023. (b)All level 3 derivatives are presented on a net basis, irrespective of the underlying counterparty. (c)Primarily reported in principal transactions revenue, except for changes in fair value for CCB mortgage loans and lending-related commitments originated with the intent to sell, and mortgage loan purchase commitments, which are reported in mortgage fees and related income. (d)Realized gains/(losses) on AFS securities are reported in investment securities gains/(losses). Unrealized gains/(losses) are reported in OCI. Realized and unrealized gains/(losses) recorded on level 3 AFS securities were not material for the years ended December 31, 2025, 2024 and 2023. (e)Changes in fair value for MSRs are reported in mortgage fees and related income. (f)Realized (gains)/losses due to DVA for fair value option elected liabilities are reported in principal transactions revenue, and were not material for the years ended December 31, 2025, 2024 and 2023. Unrealized (gains)/losses are reported in OCI, and were $235 million, $(50) million and $(158) million for the years ended December 31, 2025, 2024 and 2023, respectively. (g)Loan originations are included in purchases. (h)Includes financial assets and liabilities that have matured, been partially or fully repaid, impacts of modifications, deconsolidations associated with beneficial interests in VIEs and other items. --- ## Modified Risk: JPMorganChase's ability to operate its businesses could be impaired if its liquidity is constrained. **Key changes:** - Updated: "JPMorganChase's liquidity could be impacted by factors such as: •market-wide illiquidity or disruption •actions by governmental authorities, including changes in regulatory requirements relating to liquidity or capital •actions taken by the Federal Reserve to reduce its balance sheet, which could reduce deposits held by JPMorganChase and other financial institutions •inability to sell assets, or to sell at favorable times or prices •default by a CCP or other significant market participant •unanticipated outflows of cash or collateral •unexpected loss of deposits, including due to deposit pricing or migration to other investment products •higher than anticipated draws on lending-related commitments, and •lack of market or customer confidence in JPMorganChase or financial institutions in general." - Updated: "In addition to holding the stock of other JPMorganChase subsidiaries, the IHC owns other assets and provides intercompany lending to the Parent Company." - Updated: "is subject to regulatory restrictions and requirements relating to the dividends that it can pay to the Parent Company, and the IHC is prohibited from paying dividends or extending credit to the Parent Company if certain capital or liquidity thresholds are breached, or if limits are otherwise imposed by the Parent Company's management or Board of Directors.As a result of these arrangements, the Parent Company is generally dependent on receiving dividends from JPMorgan Chase Bank, N.A." - Updated: "and its subsidiaries.CapitalJPMorganChase's ability to distribute capital to shareholders, and to support its business activities could be limited if it does not satisfy applicable regulatory capital requirements.JPMorganChase is subject to various regulatory capital requirements, and the amount of capital that it is required to hold under those requirements could increase at any given time due to factors such as: limited during periods of market stress, low investor confidence or significant market illiquidity.JPMorganChase may need to raise funding from alternative sources if its access to stable and lower-cost funding, such as deposits and borrowings from Federal Home Loan Banks, is reduced." - Updated: "In addition to holding the stock of other JPMorganChase subsidiaries, the IHC owns other assets and provides intercompany lending to the Parent Company." **Prior (2025):** JPMorganChase's liquidity can be impacted at any given time as a result of factors such as: •market-wide illiquidity or disruption •changes in liquidity or capital requirements resulting from changes in laws, rules and regulations, including those in response to economic effects of systemic events •actions taken by the U.S. government or by the Federal Reserve to reduce its balance sheet, which may reduce deposits held by JPMorganChase and other financial institutions •inability to sell assets, or to sell assets at favorable times or prices •default by a CCP or other significant market participant •unanticipated outflows of cash or collateral •unexpected loss of deposits or higher than anticipated draws on lending-related commitments, and •lack of market or customer confidence in JPMorganChase or financial institutions in general. A reduction in JPMorganChase's liquidity may be caused by events over which it has little or no control. For example, periods of market stress, low investor confidence and significant market illiquidity could result in higher funding costs for JPMorganChase and could limit its access to some of its traditional sources of liquidity. JPMorganChase may need to raise funding from alternative sources if its access to stable and lower-cost sources of funding, such as deposits and borrowings from Federal Home Loan Banks, is reduced. Alternative sources of funding could be more expensive or limited in availability. JPMorganChase's funding costs could also be negatively affected by actions that JPMorganChase may take in order to: •satisfy applicable liquidity coverage ratio and net stable funding ratio requirements •address obligations under its resolution plan, or •satisfy regulatory requirements in jurisdictions outside the U.S. relating to the pre-positioning of liquidity in subsidiaries that are material legal entities. More generally, if JPMorganChase fails to effectively manage its liquidity, this could constrain its ability to fund or invest in its businesses and subsidiaries, and thereby adversely affect its results of operations. 20 20 20 20 JPMorgan Chase & Co. is a holding company and depends on the cash flows of its subsidiaries to make payments on its outstanding securities.JPMorgan Chase & Co. is a holding company that holds the stock of JPMorgan Chase Bank, N.A. and an intermediate holding company, JPMorgan Chase Holdings LLC (the "IHC"). The IHC in turn generally holds the stock of JPMorganChase's subsidiaries other than JPMorgan Chase Bank, N.A. and its subsidiaries. The IHC also owns other assets and provides intercompany lending to the Parent Company. The Parent Company is obligated to contribute to the IHC substantially all the net proceeds received from securities issuances (including issuances of senior and subordinated debt securities and of preferred and common stock).The ability of JPMorgan Chase Bank, N.A. and the IHC to make payments to the Parent Company is also limited. JPMorgan Chase Bank, N.A. is subject to regulatory restrictions on its dividend distributions, as well as capital adequacy requirements, such as the Supplementary Leverage Ratio ("SLR"), and liquidity requirements and other regulatory restrictions on its ability to make payments to the Parent Company. The IHC is prohibited from paying dividends or extending credit to the Parent Company if certain capital or liquidity thresholds are breached, or if limits are otherwise imposed by the Parent Company's management or Board of Directors. As a result of these arrangements, the ability of the Parent Company to make various payments is dependent on its receiving dividends from JPMorgan Chase Bank, N.A. and dividends and borrowings from the IHC. These limitations could affect the Parent Company's ability to:•pay interest on its debt securities•pay dividends on its equity securities•redeem or repurchase outstanding securities, and•fulfill its other payment obligations.These arrangements could also result in the Parent Company seeking protection under bankruptcy laws or otherwise entering into resolution proceedings at a time earlier than would have been the case absent the existence of the capital and liquidity thresholds to which JPMorgan Chase Bank, N.A. and the IHC are subject.Reductions in JPMorganChase's credit ratings may adversely affect its liquidity and cost of funding.JPMorgan Chase & Co. and certain of its principal subsidiaries are rated by credit rating agencies. Rating agencies evaluate general, firm-specific and industry-specific factors when determining credit ratings for a particular financial institution, including:•expected future profitability •risk management practices•legal expenses•ratings differentials between bank holding companies and their bank and non-bank subsidiaries•regulatory developments •assumptions about government support, and •economic and geopolitical developments. JPMorganChase closely monitors and manages, to the extent that it is able, factors that could influence its credit ratings. However, there is no assurance that JPMorganChase's credit ratings will not be downgraded in the future. Furthermore, any such downgrade could occur at times of broader market instability when JPMorganChase's options for responding to events may be more limited and general investor confidence is low.A reduction in JPMorganChase's credit ratings could curtail JPMorganChase's business activities and reduce its profitability in a number of ways, including:•reducing its access to capital markets •materially increasing its cost of issuing and servicing securities •triggering additional collateral or funding requirements, and •decreasing the number of investors and counterparties that are willing or permitted to do business with or lend to JPMorganChase.Any rating reduction could also increase the credit spreads charged by the market for taking credit risk on JPMorgan Chase & Co. and its subsidiaries. This could, in turn, adversely affect the value of debt and other obligations of JPMorgan Chase & Co. and its subsidiaries.CapitalMaintaining the required level and composition of capital may impact JPMorganChase's ability to support business activities, meet evolving regulatory requirements and distribute capital to shareholders.JPMorganChase is subject to various regulatory capital requirements, including leverage- and risk-based capital requirements. In addition, as a Global Systemically Important Bank ("GSIB"), JPMorganChase is required to hold additional capital buffers, including a GSIB surcharge, a Stress Capital Buffer ("SCB"), and a countercyclical buffer, each of which is reassessed at least annually. The amount of capital that JPMorganChase is required to hold in order to satisfy these leverage- and risk-based requirements could increase at any given time due to factors such as:•actions by banking regulators, including changes in laws, rules and regulations JPMorgan Chase & Co. is a holding company and depends on the cash flows of its subsidiaries to make payments on its outstanding securities.JPMorgan Chase & Co. is a holding company that holds the stock of JPMorgan Chase Bank, N.A. and an intermediate holding company, JPMorgan Chase Holdings LLC (the "IHC"). The IHC in turn generally holds the stock of JPMorganChase's subsidiaries other than JPMorgan Chase Bank, N.A. and its subsidiaries. The IHC also owns other assets and provides intercompany lending to the Parent Company. The Parent Company is obligated to contribute to the IHC substantially all the net proceeds received from securities issuances (including issuances of senior and subordinated debt securities and of preferred and common stock).The ability of JPMorgan Chase Bank, N.A. and the IHC to make payments to the Parent Company is also limited. JPMorgan Chase Bank, N.A. is subject to regulatory restrictions on its dividend distributions, as well as capital adequacy requirements, such as the Supplementary Leverage Ratio ("SLR"), and liquidity requirements and other regulatory restrictions on its ability to make payments to the Parent Company. The IHC is prohibited from paying dividends or extending credit to the Parent Company if certain capital or liquidity thresholds are breached, or if limits are otherwise imposed by the Parent Company's management or Board of Directors. As a result of these arrangements, the ability of the Parent Company to make various payments is dependent on its receiving dividends from JPMorgan Chase Bank, N.A. and dividends and borrowings from the IHC. These limitations could affect the Parent Company's ability to:•pay interest on its debt securities•pay dividends on its equity securities•redeem or repurchase outstanding securities, and•fulfill its other payment obligations.These arrangements could also result in the Parent Company seeking protection under bankruptcy laws or otherwise entering into resolution proceedings at a time earlier than would have been the case absent the existence of the capital and liquidity thresholds to which JPMorgan Chase Bank, N.A. and the IHC are subject.Reductions in JPMorganChase's credit ratings may adversely affect its liquidity and cost of funding.JPMorgan Chase & Co. and certain of its principal subsidiaries are rated by credit rating agencies. Rating agencies evaluate general, firm-specific and industry-specific factors when determining credit ratings for a particular financial institution, including:•expected future profitability **Current (2026):** JPMorganChase's liquidity could be impacted by factors such as: •market-wide illiquidity or disruption •actions by governmental authorities, including changes in regulatory requirements relating to liquidity or capital •actions taken by the Federal Reserve to reduce its balance sheet, which could reduce deposits held by JPMorganChase and other financial institutions •inability to sell assets, or to sell at favorable times or prices •default by a CCP or other significant market participant •unanticipated outflows of cash or collateral •unexpected loss of deposits, including due to deposit pricing or migration to other investment products •higher than anticipated draws on lending-related commitments, and •lack of market or customer confidence in JPMorganChase or financial institutions in general. A reduction in JPMorganChase's liquidity could be caused by events beyond its control. For example, JPMorganChase's funding costs could increase and its access to traditional sources of liquidity could be 18 18 18 18 limited during periods of market stress, low investor confidence or significant market illiquidity.JPMorganChase may need to raise funding from alternative sources if its access to stable and lower-cost funding, such as deposits and borrowings from Federal Home Loan Banks, is reduced. Alternative funding could be more expensive or limited. JPMorganChase's funding costs could also be negatively affected by actions that it may take in order to satisfy regulatory requirements, including those relating to:•liquidity and funding•its resolution plan, or•the pre-positioning of liquidity in certain subsidiaries outside the U.S.More generally, if JPMorganChase fails to effectively manage its liquidity, this could constrain its ability to fund or invest in its businesses and subsidiaries, and thereby adversely affect its results of operations.JPMorgan Chase & Co. is a holding company and depends on its subsidiaries for funding to make payments on its outstanding securities.The Parent Company, JPMorgan Chase & Co., is a holding company that holds the stock of JPMorgan Chase Bank, N.A. and an intermediate holding company, JPMorgan Chase Holdings LLC (the "IHC"). In addition to holding the stock of other JPMorganChase subsidiaries, the IHC owns other assets and provides intercompany lending to the Parent Company. The Parent Company must contribute to the IHC substantially all the net proceeds that it receives from securities issuances.The ability of JPMorgan Chase Bank, N.A. and the IHC to make payments to the Parent Company is limited. JPMorgan Chase Bank, N.A. is subject to regulatory restrictions and requirements relating to the dividends that it can pay to the Parent Company, and the IHC is prohibited from paying dividends or extending credit to the Parent Company if certain capital or liquidity thresholds are breached, or if limits are otherwise imposed by the Parent Company's management or Board of Directors.As a result of these arrangements, the Parent Company is generally dependent on receiving dividends from JPMorgan Chase Bank, N.A. and dividends and borrowings from the IHC in order to:•pay interest on its debt securities•pay dividends on its equity securities•redeem or repurchase outstanding securities, and•fulfill its other payment obligations.The capital and liquidity thresholds to which JPMorgan Chase Bank, N.A. and the IHC are subject could result in the Parent Company seeking protection under bankruptcy laws or otherwise entering into resolution proceedings sooner than if such limitations did not exist.JPMorganChase's liquidity and cost of funding could be adversely affected by downgrades in its credit ratings.JPMorgan Chase & Co. and certain of its principal subsidiaries are rated by credit rating agencies, which evaluate general, firm-specific and industry-specific factors when determining credit ratings, including:•expected future profitability •risk management practices•legal expenses•regulatory developments•ratings differentials between bank holding companies and their bank and non-bank subsidiaries•assumptions about government support, and•economic and geopolitical developments.JPMorganChase has experienced credit ratings downgrades in the past, and there is no assurance that JPMorganChase's credit ratings will not be downgraded in the future. Furthermore, any such downgrade could occur at a time of broader market instability, limiting JPMorganChase's options for responding.A downgrade in JPMorganChase's credit ratings could curtail its business activities and its profitability, including by:•reducing its access to capital markets•materially increasing its cost of issuing and servicing securities•triggering additional collateral or funding requirements, and•decreasing the number of investors and counterparties that are willing or permitted to do business with or lend to JPMorganChase.Any rating downgrade could also increase the credit spreads charged by market participants for taking credit risk on JPMorgan Chase & Co. and its subsidiaries. This could, in turn, adversely affect the value of debt and other obligations of JPMorgan Chase & Co. and its subsidiaries.CapitalJPMorganChase's ability to distribute capital to shareholders, and to support its business activities could be limited if it does not satisfy applicable regulatory capital requirements.JPMorganChase is subject to various regulatory capital requirements, and the amount of capital that it is required to hold under those requirements could increase at any given time due to factors such as: limited during periods of market stress, low investor confidence or significant market illiquidity.JPMorganChase may need to raise funding from alternative sources if its access to stable and lower-cost funding, such as deposits and borrowings from Federal Home Loan Banks, is reduced. Alternative funding could be more expensive or limited. JPMorganChase's funding costs could also be negatively affected by actions that it may take in order to satisfy regulatory requirements, including those relating to:•liquidity and funding•its resolution plan, or•the pre-positioning of liquidity in certain subsidiaries outside the U.S.More generally, if JPMorganChase fails to effectively manage its liquidity, this could constrain its ability to fund or invest in its businesses and subsidiaries, and thereby adversely affect its results of operations.JPMorgan Chase & Co. is a holding company and depends on its subsidiaries for funding to make payments on its outstanding securities.The Parent Company, JPMorgan Chase & Co., is a holding company that holds the stock of JPMorgan Chase Bank, N.A. and an intermediate holding company, JPMorgan Chase Holdings LLC (the "IHC"). In addition to holding the stock of other JPMorganChase subsidiaries, the IHC owns other assets and provides intercompany lending to the Parent Company. The Parent Company must contribute to the IHC substantially all the net proceeds that it receives from securities issuances.The ability of JPMorgan Chase Bank, N.A. and the IHC to make payments to the Parent Company is limited. JPMorgan Chase Bank, N.A. is subject to regulatory restrictions and requirements relating to the dividends that it can pay to the Parent Company, and the IHC is prohibited from paying dividends or extending credit to the Parent Company if certain capital or liquidity thresholds are breached, or if limits are otherwise imposed by the Parent Company's management or Board of Directors.As a result of these arrangements, the Parent Company is generally dependent on receiving dividends from JPMorgan Chase Bank, N.A. and dividends and borrowings from the IHC in order to:•pay interest on its debt securities•pay dividends on its equity securities•redeem or repurchase outstanding securities, and•fulfill its other payment obligations.The capital and liquidity thresholds to which JPMorgan Chase Bank, N.A. and the IHC are subject could result in the Parent Company seeking protection under bankruptcy laws or otherwise entering into resolution limited during periods of market stress, low investor confidence or significant market illiquidity. JPMorganChase may need to raise funding from alternative sources if its access to stable and lower-cost funding, such as deposits and borrowings from Federal Home Loan Banks, is reduced. Alternative funding could be more expensive or limited. JPMorganChase's funding costs could also be negatively affected by actions that it may take in order to satisfy regulatory requirements, including those relating to: •liquidity and funding •its resolution plan, or •the pre-positioning of liquidity in certain subsidiaries outside the U.S. More generally, if JPMorganChase fails to effectively manage its liquidity, this could constrain its ability to fund or invest in its businesses and subsidiaries, and thereby adversely affect its results of operations. --- ## Modified Risk: Changes in level 3 fair value measurements using significant unobservable inputs **Key changes:** - Updated: "Investments classified in level 3 of the fair value hierarchy increased in 2025 to $4.2 billion, due to $361 million in unrealized gains, partially offset by $58 million in sales, $52 million of transfers out, and $46 million in settlements." **Prior (2025):** Investments classified in level 3 of the fair value hierarchy increased in 2024 to $4.0 billion, due to $536 million of transfers in and $415 million in unrealized gains, partially offset by $123 million in settlements. The net increase in 2023 was due to $400 million in unrealized gains and $173 million of transfers in, partially offset by $59 million in settlements. Estimated future benefit payments The following table presents benefit payments expected to be paid for the defined benefit pension and OPEB plans for the years indicated.Year ended December 31,(in millions)2025$1,186 20261,155 20271,134 20281,095 20291,093 Years 2030-20345,229 **Current (2026):** Investments classified in level 3 of the fair value hierarchy increased in 2025 to $4.2 billion, due to $361 million in unrealized gains, partially offset by $58 million in sales, $52 million of transfers out, and $46 million in settlements. The net increase in 2024 was due to $536 million of transfers in and $415 million in unrealized gains, partially offset by $123 million in settlements. Estimated future benefit payments The following table presents benefit payments expected to be paid for the defined benefit pension and OPEB plans for the years indicated.Year ended December 31,(in millions)2026$2,253 20271,074 20281,061 20291,031 20301,017 Years 2031-20354,834 --- ## Modified Risk: Other Corporate includes staff functions and expense that is centrally managed as well as certain Firm initiatives and activities not solely aligned to a specific LOB. The major Other Corporate functions include Real Estate, Technology, Legal, Corporate Finance, Human Resources, Internal Audit, Risk Management, Compliance, Control Management, Corporate Responsibility and various Other Corporate groups. **Key changes:** - Updated: "Selected income statement and balance sheet dataAs of or for the year ended December 31,(in millions, except employees)202520242023RevenuePrincipal transactions$(339)$152 $302 Investment securities losses(58)(1,020)(3,180)All other income1,308 8,476 (f)3,010 (h)Noninterest revenue911 7,608 132 Net interest income6,114 9,786 7,906 Total net revenue(a)7,025 17,394 8,038 Provision for credit losses7 10 171 Noninterest expense(b)1,825 3,994 (g)5,601 Income before income tax expense5,193 13,390 2,266 Income tax expense/(benefit)673 (d)2,789 (555)(i)Net income$4,520 $10,601 $2,821 Total net revenueTreasury and CIO6,501 9,638 6,072 Other Corporate524 7,756 1,966 Total net revenue$7,025 $17,394 $8,038 Net income/(loss)Treasury and CIO4,565 7,013 4,206 Other Corporate(b)(45)3,588 (1,385)Total net income$4,520 $10,601 $2,821 Total assets (period-end)$1,329,632 $1,323,967 $1,348,437 Loans (period-end)2,941 1,964 1,924 Deposits(c)35,874 27,581 21,826 Employees50,031 (e)49,610 47,530 As of or for the year ended December 31, (in millions, except employees) Investment securities losses (f) (h)" **Prior (2025):** Selected income statement and balance sheet dataYear ended December 31,(in millions, except employees)202420232022RevenuePrincipal transactions$152 $302 $(227)Investment securities losses(1,020)(3,180)(2,380)All other income8,476 (c)3,010 (f)809 Noninterest revenue7,608 132 (1,798)Net interest income9,786 7,906 1,878 Total net revenue(a)17,394 8,038 80 Provision for credit losses10 171 22 Noninterest expense3,994 (d)(e)5,601 (e)(g)1,034 Income/(loss) before income tax expense/(benefit)13,390 2,266 (976)Income tax expense/(benefit)2,789 (555)(h)(233)Net income/(loss)$10,601 $2,821 $(743)Total net revenueTreasury and CIO9,638 6,072 (439)Other Corporate7,756 1,966 519 Total net revenue$17,394 $8,038 $80 Net income/(loss)Treasury and CIO7,013 4,206 (197)Other Corporate3,588 (e)(1,385)(e)(546)Total net income/(loss)$10,601 $2,821 $(743)Total assets (period-end)$1,323,967 $1,348,437 $1,328,219 Loans (period-end)1,964 1,924 2,181 Deposits(b)27,581 21,826 14,203 Employees49,610 47,530 44,196 Year ended December 31, (in millions, except employees) Investment securities losses (c) (f) **Current (2026):** Selected income statement and balance sheet dataAs of or for the year ended December 31,(in millions, except employees)202520242023RevenuePrincipal transactions$(339)$152 $302 Investment securities losses(58)(1,020)(3,180)All other income1,308 8,476 (f)3,010 (h)Noninterest revenue911 7,608 132 Net interest income6,114 9,786 7,906 Total net revenue(a)7,025 17,394 8,038 Provision for credit losses7 10 171 Noninterest expense(b)1,825 3,994 (g)5,601 Income before income tax expense5,193 13,390 2,266 Income tax expense/(benefit)673 (d)2,789 (555)(i)Net income$4,520 $10,601 $2,821 Total net revenueTreasury and CIO6,501 9,638 6,072 Other Corporate524 7,756 1,966 Total net revenue$7,025 $17,394 $8,038 Net income/(loss)Treasury and CIO4,565 7,013 4,206 Other Corporate(b)(45)3,588 (1,385)Total net income$4,520 $10,601 $2,821 Total assets (period-end)$1,329,632 $1,323,967 $1,348,437 Loans (period-end)2,941 1,964 1,924 Deposits(c)35,874 27,581 21,826 Employees50,031 (e)49,610 47,530 As of or for the year ended December 31, (in millions, except employees) Investment securities losses (f) (h) --- ## Modified Risk: Note 22 - Common stock **Key changes:** - Updated: "At December 31, 2025 and 2024, JPMorganChase was authorized to issue 9.0 billion shares of common stock with a par value of $1 per share.Common shares issued which were reissued from treasury by the Firm during the years ended December 31, 2025, 2024 and 2023 were as follows.Year ended December 31, (in millions)202520242023Total issued - balance at January 14,104.9 4,104.9 4,104.9 Treasury - balance at January 1(1,307.3)(1,228.3)(1,170.7)Repurchase(114.4)(91.7)(69.5)Reissuance:Employee benefits and compensation plans12.3 11.9 10.9 Employee stock purchase plans0.7 0.8 1.0 Total reissuance13.0 12.7 11.9 Total treasury - balance at December 31(1,408.7)(1,307.3)(1,228.3)Outstanding at December 312,696.2 2,797.6 2,876.6 On July 1, 2025, the Firm announced that its Board of Directors had authorized a new $50 billion common share repurchase program, effective July 1, 2025." - Updated: "The Firm's common share repurchases may be suspended by management at any time; and may be executed through open market purchases or privately negotiated transactions, or utilizing Rule 10b5-1 plans, which are written trading plans that the Firm may enter into from time to time under Rule 10b5-1 of the Securities Exchange Act of 1934 and which allow the Firm to repurchase its common shares during periods when it may otherwise not be repurchasing common shares - for example, during internal trading blackout periods.As of December 31, 2025, approximately 50.0 million shares of common stock were reserved for issuance under various employee incentive, compensation, option and stock purchase plans, and directors' compensation plans." **Prior (2025):** At December 31, 2024 and 2023, JPMorganChase was authorized to issue 9.0 billion shares of common stock with a par value of $1 per share.Common shares issued which were reissued from treasury by the Firm during the years ended December 31, 2024, 2023 and 2022 were as follows.Year ended December 31, (in millions)202420232022Total issued - balance at January 14,104.9 4,104.9 4,104.9 Treasury - balance at January 1(1,228.3)(1,170.7)(1,160.8)Repurchase(91.7)(69.5)(23.1)Reissuance:Employee benefits and compensation plans11.9 10.9 12.0 Employee stock purchase plans0.8 1.0 1.2 Total reissuance12.7 11.9 13.2 Total treasury - balance at December 31(1,307.3)(1,228.3)(1,170.7)Outstanding at December 312,797.6 2,876.6 2,934.2 On June 28, 2024, the Firm announced that its Board of Directors had authorized a new $30 billion common share repurchase program, effective July 1, 2024. Through June 30, 2024, the Firm was authorized to purchase up to $30 billion of common shares under its previously-approved common share repurchase program that was announced on April 13, 2022.The following table sets forth the Firm's repurchases of common stock for the years ended December 31, 2024, 2023 and 2022.Year ended December 31,(in millions)202420232022(b)Total number of shares of common stock repurchased91.7 69.5 23.1 Aggregate purchase price of common stock repurchases(a)$18,841 $9,898 $3,122 (a)Excludes excise tax and commissions. As part of the Inflation Reduction Act of 2022, a 1% excise tax is imposed on net share repurchases commencing January 1, 2023.(b)In the second half of 2022, the Firm temporarily suspended share repurchases, which it resumed in the first quarter of 2023 under its common share repurchase program.The Board of Directors' authorization to repurchase common shares is utilized at management's discretion. The $30 billion common share repurchase program approved by the Board of Directors does not establish specific price targets or timetables. Management determines the amount and timing of common share repurchases based on various factors, including market conditions; legal and regulatory considerations affecting the amount and timing of repurchase activity; the Firm's capital position (taking into account goodwill and intangibles); organic capital generation; current and proposed future capital requirements; and other investment opportunities. The amount of common shares that the Firm repurchases in any period may be substantially more or less than the amounts estimated or actually repurchased in prior periods, reflecting the dynamic nature of the decision-making process. The Firm's common share repurchases may be suspended by management at any time; and may be executed through open market purchases or privately negotiated transactions, or utilizing Rule 10b5-1 plans, which are written trading plans that the Firm may enter into from time to time under Rule 10b5-1 of the Securities Exchange Act of 1934 and which allow the Firm to repurchase its common shares during periods when it may otherwise not be repurchasing common shares - for example, during internal trading blackout periods.As of December 31, 2024, approximately 58.8 million shares of common stock were reserved for issuance under various employee incentive, compensation, option and stock purchase plans, and directors' compensation plans. At December 31, 2024 and 2023, JPMorganChase was authorized to issue 9.0 billion shares of common stock with a par value of $1 per share.Common shares issued which were reissued from treasury by the Firm during the years ended December 31, 2024, 2023 and 2022 were as follows.Year ended December 31, (in millions)202420232022Total issued - balance at January 14,104.9 4,104.9 4,104.9 Treasury - balance at January 1(1,228.3)(1,170.7)(1,160.8)Repurchase(91.7)(69.5)(23.1)Reissuance:Employee benefits and compensation plans11.9 10.9 12.0 Employee stock purchase plans0.8 1.0 1.2 Total reissuance12.7 11.9 13.2 Total treasury - balance at December 31(1,307.3)(1,228.3)(1,170.7)Outstanding at December 312,797.6 2,876.6 2,934.2 On June 28, 2024, the Firm announced that its Board of Directors had authorized a new $30 billion common share repurchase program, effective July 1, 2024. Through June 30, 2024, the Firm was authorized to purchase up to $30 billion of common shares under its previously-approved common share repurchase program that was announced on April 13, 2022. At December 31, 2024 and 2023, JPMorganChase was authorized to issue 9.0 billion shares of common stock with a par value of $1 per share. Common shares issued which were reissued from treasury by the Firm during the years ended December 31, 2024, 2023 and 2022 were as follows. Year ended December 31, (in millions)202420232022Total issued - balance at January 14,104.9 4,104.9 4,104.9 Treasury - balance at January 1(1,228.3)(1,170.7)(1,160.8)Repurchase(91.7)(69.5)(23.1)Reissuance:Employee benefits and compensation plans11.9 10.9 12.0 Employee stock purchase plans0.8 1.0 1.2 Total reissuance12.7 11.9 13.2 Total treasury - balance at December 31(1,307.3)(1,228.3)(1,170.7)Outstanding at December 312,797.6 2,876.6 2,934.2 **Current (2026):** At December 31, 2025 and 2024, JPMorganChase was authorized to issue 9.0 billion shares of common stock with a par value of $1 per share.Common shares issued which were reissued from treasury by the Firm during the years ended December 31, 2025, 2024 and 2023 were as follows.Year ended December 31, (in millions)202520242023Total issued - balance at January 14,104.9 4,104.9 4,104.9 Treasury - balance at January 1(1,307.3)(1,228.3)(1,170.7)Repurchase(114.4)(91.7)(69.5)Reissuance:Employee benefits and compensation plans12.3 11.9 10.9 Employee stock purchase plans0.7 0.8 1.0 Total reissuance13.0 12.7 11.9 Total treasury - balance at December 31(1,408.7)(1,307.3)(1,228.3)Outstanding at December 312,696.2 2,797.6 2,876.6 On July 1, 2025, the Firm announced that its Board of Directors had authorized a new $50 billion common share repurchase program, effective July 1, 2025. Through June 30, 2025, the Firm was authorized to purchase up to $30 billion of common shares under its previously-approved common share repurchase program that was announced on June 28, 2024.The following table sets forth the Firm's repurchases of common stock for the years ended December 31, 2025, 2024 and 2023.Year ended December 31,(in millions)202520242023Total number of shares of common stock repurchased114.4 91.7 69.5 Aggregate purchase price of common stock repurchases(a)$31,640 $18,841 $9,898 (a)Excludes excise tax and commissions.The Board of Directors' authorization to repurchase common shares is utilized at management's discretion. The common share repurchase program approved by the Board of Directors does not establish specific price targets or timetables. Management determines the amount and timing of common share repurchases based on various factors, including market conditions; legal and regulatory considerations affecting the amount and timing of repurchase activity; the Firm's capital position (taking into account goodwill and intangibles); organic capital generation; current and proposed future capital requirements; and other investment opportunities. The amount of common shares that the Firm repurchases in any period may be substantially more or less than the amounts estimated or actually repurchased in prior periods, reflecting the dynamic nature of the decision-making process. The Firm's common share repurchases may be suspended by management at any time; and may be executed through open market purchases or privately negotiated transactions, or utilizing Rule 10b5-1 plans, which are written trading plans that the Firm may enter into from time to time under Rule 10b5-1 of the Securities Exchange Act of 1934 and which allow the Firm to repurchase its common shares during periods when it may otherwise not be repurchasing common shares - for example, during internal trading blackout periods.As of December 31, 2025, approximately 50.0 million shares of common stock were reserved for issuance under various employee incentive, compensation, option and stock purchase plans, and directors' compensation plans. At December 31, 2025 and 2024, JPMorganChase was authorized to issue 9.0 billion shares of common stock with a par value of $1 per share.Common shares issued which were reissued from treasury by the Firm during the years ended December 31, 2025, 2024 and 2023 were as follows.Year ended December 31, (in millions)202520242023Total issued - balance at January 14,104.9 4,104.9 4,104.9 Treasury - balance at January 1(1,307.3)(1,228.3)(1,170.7)Repurchase(114.4)(91.7)(69.5)Reissuance:Employee benefits and compensation plans12.3 11.9 10.9 Employee stock purchase plans0.7 0.8 1.0 Total reissuance13.0 12.7 11.9 Total treasury - balance at December 31(1,408.7)(1,307.3)(1,228.3)Outstanding at December 312,696.2 2,797.6 2,876.6 On July 1, 2025, the Firm announced that its Board of Directors had authorized a new $50 billion common share repurchase program, effective July 1, 2025. Through June 30, 2025, the Firm was authorized to purchase up to $30 billion of common shares under its previously-approved common share repurchase program that was announced on June 28, 2024. At December 31, 2025 and 2024, JPMorganChase was authorized to issue 9.0 billion shares of common stock with a par value of $1 per share. Common shares issued which were reissued from treasury by the Firm during the years ended December 31, 2025, 2024 and 2023 were as follows. Year ended December 31, (in millions)202520242023Total issued - balance at January 14,104.9 4,104.9 4,104.9 Treasury - balance at January 1(1,307.3)(1,228.3)(1,170.7)Repurchase(114.4)(91.7)(69.5)Reissuance:Employee benefits and compensation plans12.3 11.9 10.9 Employee stock purchase plans0.7 0.8 1.0 Total reissuance13.0 12.7 11.9 Total treasury - balance at December 31(1,408.7)(1,307.3)(1,228.3)Outstanding at December 312,696.2 2,797.6 2,876.6 --- ## Modified Risk: Commercial & Investment Bank **Key changes:** - Updated: "The Commercial & Investment Bank is comprised of the Banking & Payments and Markets & Securities Services businesses." - Updated: "Asset & Wealth ManagementAsset & Wealth Management, with client assets of $7.1 trillion, is a global leader in investment and wealth management." - Added: "management solutions, lending, prime brokerage, clearing and research." - Added: "Markets & Securities Services also includes Securities Services, a leading global custodian that provides custody, fund services, liquidity and trading services, and data solutions products." **Prior (2025):** Consumer & Community Banking offers products and services to consumers and small businesses through bank branches, ATMs, digital (including mobile and online) and telephone banking. CCB is organized into Banking & Wealth Management (including Consumer Banking, Business Banking and J.P. Morgan Wealth Management), Home Lending (including Home Lending Production, Home Lending Servicing and Real Estate Portfolios) and Card Services & Auto. Banking & Wealth Management offers deposit, investment and lending products, cash management, payments and services. Home Lending includes mortgage origination and servicing activities, as well as portfolios consisting of residential mortgages and home equity loans. Card Services issues credit cards and offers travel services. Auto originates and services auto loans and leases. Commercial & Investment BankThe Commercial & Investment Bank is comprised of the Banking & Payments and Markets & Securities Services businesses. These businesses offer investment banking, lending, payments, market-making, financing, custody and securities products and services to a global base of corporate and institutional clients. Banking & Payments offers products and services in all major capital markets, including advising on corporate strategy and structure, capital-raising in equity and debt markets, and loan origination and syndication. Banking & Payments also provides services that enable clients to manage payments globally across liquidity and account solutions, commerce solutions, clearing, trade, and working capital. Markets & Securities Services includes Markets, which is a global market-maker across products, including cash and derivative instruments, and also offers sophisticated risk management solutions, lending, prime brokerage, clearing and research. Markets & Securities Services also includes Securities Services, a leading global custodian that provides custody, fund services, liquidity and trading services, and data solutions products. Asset & Wealth ManagementAsset & Wealth Management, with client assets of $5.9 trillion, is a global leader in investment and wealth management. Asset Management Offers multi-asset investment management solutions across equities, fixed income, alternatives and money market funds to institutional and retail investors providing for a broad range of clients' investment needs.Global Private BankProvides retirement products and services, brokerage, custody, estate planning, lending, deposits and investment management to high net worth clients.The majority of AWM's client assets are in actively managed portfolios.CorporateCorporate consists of Treasury and Chief Investment Office ("CIO") and Other Corporate. Treasury and CIO is predominantly responsible for measuring, monitoring, reporting and managing the Firm's liquidity, funding, capital, structural interest rate and foreign exchange risks. Other Corporate includes staff functions and expense that is centrally managed as well as certain Firm initiatives and activities not solely aligned to a specific LOB. The major Other Corporate functions include Real Estate, Technology, Legal, Corporate Finance, Human Resources, Internal Audit, Risk Management, Compliance, Control Management, Corporate Responsibility and various Other Corporate groups. **Current (2026):** The Commercial & Investment Bank is comprised of the Banking & Payments and Markets & Securities Services businesses. These businesses offer investment banking, lending, payments, market-making, financing, custody and securities products and services to a global base of corporate and institutional clients. Banking & Payments offers products and services in all major capital markets, including advising on corporate strategy and structure, capital-raising in equity and debt markets, and loan origination and syndication. Banking & Payments also provides services that enable clients to manage payments globally across liquidity and account solutions, commerce solutions, clearing, trade, and working capital. Markets & Securities Services includes Markets, which is a global market-maker across products, including cash and derivative instruments, and also offers sophisticated risk management solutions, lending, prime brokerage, clearing and research. Markets & Securities Services also includes Securities Services, a leading global custodian that provides custody, fund services, liquidity and trading services, and data solutions products. Asset & Wealth ManagementAsset & Wealth Management, with client assets of $7.1 trillion, is a global leader in investment and wealth management. Asset Management Offers multi-asset investment management solutions across equities, fixed income, alternatives and money market funds to institutional and retail investors providing for a broad range of clients' investment needs.Global Private BankProvides retirement products and services, brokerage, custody, estate planning, lending, deposits and investment management to high net worth clients.The majority of AWM's client assets are in actively managed portfolios.CorporateCorporate consists of Treasury and Chief Investment Office ("CIO") and Other Corporate. Treasury and CIO is predominantly responsible for measuring, monitoring, reporting and managing the Firm's liquidity, funding, capital, structural interest rate and foreign exchange risks. Other Corporate includes staff functions and expense that is centrally managed as well as certain Firm initiatives and activities not solely aligned to a specific LOB. The major Other Corporate functions include Real Estate, Technology, Legal, Corporate Finance, Human Resources, Internal Audit, Risk Management, Compliance, Control Management, Corporate Responsibility and various Other Corporate groups. management solutions, lending, prime brokerage, clearing and research. Markets & Securities Services also includes Securities Services, a leading global custodian that provides custody, fund services, liquidity and trading services, and data solutions products. --- ## Modified Risk: Total long-term unsecured funding - maturities/redemptions **Key changes:** - Updated: "The following table summarizes the credit card securitization and FHLB advances, as well as other long-term secured funding sources, with their respective maturities or redemptions, as applicable, for the years ended December 31, 2025 and 2024, respectively." **Prior (2025):** (a)Includes certain TLAC-eligible long-term unsecured debt issued by the Parent Company. Secured funding and issuance The Firm can also raise secured long-term funding through securitization of consumer credit card loans and FHLB advances. The following table summarizes the securitization issuance, the FHLB advances and their respective maturities or redemptions, as applicable for the years ended December 31, 2024 and 2023. Long-term secured fundingYear ended December 31,IssuanceMaturities/Redemptions(in millions)2024202320242023Credit card securitization$2,348 $1,998 $ - $1,000 FHLB advances6,000 39,775 (c)18,050 9,485 Purchase Money Note(a) - 50,000 - $ - Other long-term secured funding(b)1,578 991 1,049 432 Total long-term secured funding$9,926 $92,764 $19,099 $10,917 Credit card securitization (c) Purchase Money Note(a) Other long-term secured funding(b) **Current (2026):** (a)Includes certain TLAC-eligible long-term unsecured debt issued by the Parent Company. Secured funding and issuance The Firm can also raise secured long-term funding through securitization of consumer credit card loans and FHLB advances. The following table summarizes the credit card securitization and FHLB advances, as well as other long-term secured funding sources, with their respective maturities or redemptions, as applicable, for the years ended December 31, 2025 and 2024, respectively. Long-term secured fundingYear ended December 31,IssuanceMaturities/Redemptions(in millions)2025202420252024Credit card securitization$1,498 $2,348 $1,000 $ - FHLB advances12,500 6,000 23,644 18,050 Other long-term secured funding(a)2,376 1,578 1,632 1,049 Total long-term secured funding$16,374 $9,926 $26,276 $19,099 Credit card securitization Other long-term secured funding(a) --- ## Modified Risk: Effective tax rate and expense **Key changes:** - Updated: "202520242023Year ended December 31,(in millions, except rates)Income tax expense% of income before income tax expenseIncome tax expense% of income before income tax expenseIncome tax expense% of income before income tax expenseStatutory U.S." - Updated: "federal income tax benefit(a)2,688 3.7 2,373 3.2 1,729 2.8 Foreign tax effects1,386 1.9 1,670 2.2 1,411 2.3 Effect of changes in tax laws or rates enacted in the current period(134)(0.2) - - - - Effect of cross border tax laws, net(342)(0.5)(509)(0.7)(325)(0.5)Tax credits, net(2,144)(3.0)(1,985)(2.6)(2,802)(4.5)Alternative energy credits(1,135)(1.6)(1,125)(1.5)(2,170)(3.5)All other(1,009)(1.4)(860)(1.1)(632)(1.0)Change in valuation allowances248 0.3 - - - - Nontaxable or nondeductible items(246)(0.3)(369)(0.5)29 - Changes in unrecognized tax benefits(387)(0.5)(3) - 56 0.1 Other, net(767)(1.0)(334)(0.5)(976)(1.6)Total income tax expense and effective tax rate$15,547 21.4 %$16,610 22.1 %$12,060 (b)19.6 %(b) Year ended December 31, (in millions, except rates) % of income before income tax expense U.S." - Updated: "Year ended December 31, (in millions)202520242023U.S.$56,184 $59,472 $46,868 Non-U.S.(a)16,411 15,609 14,744 Income before income tax expense$72,595 $75,081 $61,612 (a)For purposes of this table, non-U.S." - Updated: "Income tax expense/(benefit)Year ended December 31, (in millions)202520242023Current income tax expense/(benefit)U.S." **Prior (2025):** The following table presents a reconciliation of the applicable statutory U.S. federal income tax rate to the effective tax rate. Effective tax rateYear ended December 31,202420232022Statutory U.S. federal tax rate21.0 %21.0 %21.0 %Increase/(decrease) in tax rate resulting from:U.S. state and local income taxes, net of U.S. federal income tax benefit3.1 2.8 3.5 Tax-exempt income(0.7)(0.9)(0.9)Non-U.S. earnings1.4 1.5 0.4 Business tax credits(2.4)(4.4)(5.4)Other, net(0.3)(0.4)(0.2)Effective tax rate22.1 %19.6 %(a)18.4 % Tax-exempt income Non-U.S. earnings Business tax credits Other, net (a) (a)Income tax expense associated with the First Republic acquisition was reflected in the estimated bargain purchase gain, which resulted in a reduction in the Firm's effective tax rate. The following table reflects the components of income tax expense/(benefit) included in the Consolidated statements of income. Income tax expense/(benefit)Year ended December 31, (in millions)202420232022Current income tax expense/(benefit)U.S. federal$7,091 $8,973 $5,606 Non-U.S.4,753 4,355 2,992 U.S. state and local2,762 3,266 2,630 Total current income tax expense/(benefit)14,606 16,594 11,228 Deferred income tax expense/(benefit)U.S. federal1,771 (3,475)(2,004)Non-U.S.72 35 (154)U.S. state and local161 (1,094)(580)Total deferred income tax expense/(benefit)2,004 (4,534)(2,738)Total income tax expense$16,610 $12,060 $8,490 Total income tax expense includes $314 million, $68 million and $331 million of tax benefits in 2024, 2023, and 2022, respectively, resulting from the resolution of tax audits.Tax effect of items recorded in stockholders' equityThe preceding table does not reflect the tax effect of certain items that are recorded each period directly in stockholders' equity, which are predominantly reflected in OCI as disclosed in Note 24. For the year ended December 31, 2024, stockholders' equity reflected the tax effect associated with the Firm's adoption of the Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method guidance. For the year ended December 31, 2023, stockholders' equity reflected the tax effect associated with the Firm's adoption of the TDR accounting guidance. Both of the respective adoptions were recognized in retained earnings. Refer to Note 1, 6 and 14 for further information.Results from U.S. and non-U.S. earningsThe following table presents the U.S. and non-U.S. components of income before income tax expense. Year ended December 31, (in millions)202420232022U.S.$59,472 $46,868 $34,626 Non-U.S.(a)15,609 14,744 11,540 Income before income tax expense$75,081 $61,612 $46,166 (a)For purposes of this table, non-U.S. income is defined as income generated from operations located outside the U.S.The Firm will recognize any U.S. income tax expense it may incur on global intangible low tax income as income tax expense in the period in which the tax is incurred. The following table reflects the components of income tax expense/(benefit) included in the Consolidated statements of income. Income tax expense/(benefit)Year ended December 31, (in millions)202420232022Current income tax expense/(benefit)U.S. federal$7,091 $8,973 $5,606 Non-U.S.4,753 4,355 2,992 U.S. state and local2,762 3,266 2,630 Total current income tax expense/(benefit)14,606 16,594 11,228 Deferred income tax expense/(benefit)U.S. federal1,771 (3,475)(2,004)Non-U.S.72 35 (154)U.S. state and local161 (1,094)(580)Total deferred income tax expense/(benefit)2,004 (4,534)(2,738)Total income tax expense$16,610 $12,060 $8,490 Total income tax expense includes $314 million, $68 million and $331 million of tax benefits in 2024, 2023, and 2022, respectively, resulting from the resolution of tax audits. Tax effect of items recorded in stockholders' equity The preceding table does not reflect the tax effect of certain items that are recorded each period directly in stockholders' equity, which are predominantly reflected in OCI as disclosed in Note 24. For the year ended December 31, 2024, stockholders' equity reflected the tax effect associated with the Firm's adoption of the Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method guidance. For the year ended December 31, 2023, stockholders' equity reflected the tax effect associated with the Firm's adoption of the TDR accounting guidance. Both of the respective adoptions were recognized in retained earnings. Refer to Note 1, 6 and 14 for further information. **Current (2026):** The following table presents a reconciliation of the applicable statutory U.S. federal income tax rate to the effective tax rate. 202520242023Year ended December 31,(in millions, except rates)Income tax expense% of income before income tax expenseIncome tax expense% of income before income tax expenseIncome tax expense% of income before income tax expenseStatutory U.S. federal tax rate$15,245 21.0 %$15,767 21.0 %$12,938 21.0 %Increase/(decrease) in tax rate resulting from:U.S. state and local income taxes, net of U.S. federal income tax benefit(a)2,688 3.7 2,373 3.2 1,729 2.8 Foreign tax effects1,386 1.9 1,670 2.2 1,411 2.3 Effect of changes in tax laws or rates enacted in the current period(134)(0.2) - - - - Effect of cross border tax laws, net(342)(0.5)(509)(0.7)(325)(0.5)Tax credits, net(2,144)(3.0)(1,985)(2.6)(2,802)(4.5)Alternative energy credits(1,135)(1.6)(1,125)(1.5)(2,170)(3.5)All other(1,009)(1.4)(860)(1.1)(632)(1.0)Change in valuation allowances248 0.3 - - - - Nontaxable or nondeductible items(246)(0.3)(369)(0.5)29 - Changes in unrecognized tax benefits(387)(0.5)(3) - 56 0.1 Other, net(767)(1.0)(334)(0.5)(976)(1.6)Total income tax expense and effective tax rate$15,547 21.4 %$16,610 22.1 %$12,060 (b)19.6 %(b) Year ended December 31, (in millions, except rates) % of income before income tax expense U.S. state and local income taxes, net of U.S. federal income tax benefit(a) Alternative energy credits All other (b) (b) (a)For the years ended December 31, 2025 and 2024, California, New York City, and New York State made up greater than 50% of the effect of the U.S. state and local income taxes category. For the year ended December 31, 2023, New York City and California made up greater than 50% of the effect of the U.S. state and local income taxes category. (b)Income tax expense associated with the First Republic acquisition was reflected in the estimated bargain purchase gain, which resulted in a reduction in the Firm's effective tax rate. 288JPMorgan Chase & Co./2025 Form 10-K 288JPMorgan Chase & Co./2025 Form 10-K 288JPMorgan Chase & Co./2025 Form 10-K 288 JPMorgan Chase & Co./2025 Form 10-K The following table reflects the components of income tax expense/(benefit) included in the Consolidated statements of income. Income tax expense/(benefit)Year ended December 31, (in millions)202520242023Current income tax expense/(benefit)U.S. federal$3,109 $7,091 $8,973 U.S. state and local2,559 2,762 3,266 Non-U.S.4,268 4,753 4,355 Total current income tax expense9,936 14,606 16,594 Deferred income tax expense/(benefit)U.S. federal4,447 1,771 (3,475)U.S. state and local906 161 (1,094)Non-U.S.258 72 35 Total deferred income tax expense/(benefit)5,611 2,004 (4,534)Total income tax expense$15,547 $16,610 $12,060 Total income tax expense includes $629 million, $314 million and $68 million of tax benefits for the years ended December 31, 2025, 2024 and 2023, respectively, resulting from the resolution of tax audits.Tax effect of items recorded in stockholders' equityThe preceding table does not reflect the tax effect of certain items that are recorded each period directly in stockholders' equity, which are predominantly reflected in OCI as disclosed in Note 24. For the year ended December 31, 2024, stockholders' equity reflected the tax effect associated with the Firm's adoption of the Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method guidance. For the year ended December 31, 2023, stockholders' equity reflected the tax effect associated with the Firm's adoption of the TDR accounting guidance. Both of the respective adoptions were recognized in retained earnings. Refer to Note 1, 6 and 14 for further information.Results from U.S. and non-U.S. earningsThe following table presents the U.S. and non-U.S. components of income before income tax expense. Year ended December 31, (in millions)202520242023U.S.$56,184 $59,472 $46,868 Non-U.S.(a)16,411 15,609 14,744 Income before income tax expense$72,595 $75,081 $61,612 (a)For purposes of this table, non-U.S. income is defined as income generated from operations located outside the U.S.The Firm will recognize any U.S. income tax expense it may incur on global intangible low tax income as income tax expense in the period in which the tax is incurred.Income taxes paidCash paid for income taxes, net of refunds, was $5.3 billion, $11.7 billion, and $9.9 billion for the years ended December 31, 2025, 2024 and 2023, respectively.The following table presents income taxes paid by respective jurisdiction in excess of 5% of total income taxes paid, net of refunds received.Year ended December 31, (in millions)202520242023U.S. federal$(1,099)$3,465 $2,797 U.S. state and localNew York State538 NM590 California465 810 721 New York City270 NMNMAll other459 2,065 1,432 Total U.S. state and local1,732 2,875 2,743 Non-U.S.United Kingdom987 1,254 1,254 India582 599 NMFrance459 NMNMLuxembourg272 NMNMGermanyNM647 NMAll other2,376 2,875 3,114 Total Non-U.S.4,676 5,375 4,368 Total cash income taxes paid, net $5,309 $11,715 $9,908 NM refers to not meaningful, which reflects the amount of income taxes paid during the year that does not meet the 5% disaggregation threshold. The following table reflects the components of income tax expense/(benefit) included in the Consolidated statements of income. Income tax expense/(benefit)Year ended December 31, (in millions)202520242023Current income tax expense/(benefit)U.S. federal$3,109 $7,091 $8,973 U.S. state and local2,559 2,762 3,266 Non-U.S.4,268 4,753 4,355 Total current income tax expense9,936 14,606 16,594 Deferred income tax expense/(benefit)U.S. federal4,447 1,771 (3,475)U.S. state and local906 161 (1,094)Non-U.S.258 72 35 Total deferred income tax expense/(benefit)5,611 2,004 (4,534)Total income tax expense$15,547 $16,610 $12,060 Total income tax expense includes $629 million, $314 million and $68 million of tax benefits for the years ended December 31, 2025, 2024 and 2023, respectively, resulting from the resolution of tax audits.Tax effect of items recorded in stockholders' equityThe preceding table does not reflect the tax effect of certain items that are recorded each period directly in stockholders' equity, which are predominantly reflected in OCI as disclosed in Note 24. For the year ended December 31, 2024, stockholders' equity reflected the tax effect associated with the Firm's adoption of the Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method guidance. For the year ended December 31, 2023, stockholders' equity reflected the tax effect associated with the Firm's adoption of the TDR accounting guidance. Both of the respective adoptions were recognized in retained earnings. Refer to Note 1, 6 and 14 for further information.Results from U.S. and non-U.S. earningsThe following table presents the U.S. and non-U.S. components of income before income tax expense. Year ended December 31, (in millions)202520242023U.S.$56,184 $59,472 $46,868 Non-U.S.(a)16,411 15,609 14,744 Income before income tax expense$72,595 $75,081 $61,612 (a)For purposes of this table, non-U.S. income is defined as income generated from operations located outside the U.S.The Firm will recognize any U.S. income tax expense it may incur on global intangible low tax income as income tax expense in the period in which the tax is incurred. The following table reflects the components of income tax expense/(benefit) included in the Consolidated statements of income. Income tax expense/(benefit)Year ended December 31, (in millions)202520242023Current income tax expense/(benefit)U.S. federal$3,109 $7,091 $8,973 U.S. state and local2,559 2,762 3,266 Non-U.S.4,268 4,753 4,355 Total current income tax expense9,936 14,606 16,594 Deferred income tax expense/(benefit)U.S. federal4,447 1,771 (3,475)U.S. state and local906 161 (1,094)Non-U.S.258 72 35 Total deferred income tax expense/(benefit)5,611 2,004 (4,534)Total income tax expense$15,547 $16,610 $12,060 --- ## Modified Risk: Loan delinquency(a) **Key changes:** - Updated: "% of 30+ days past due to total retained loans(b) Gross charge-offs As of or for the year ended December 31, 2024 (in millions, except ratios)Term loans by origination year(c)Revolving loansTotal20242023202220212020Prior to 2020Within the revolving periodConverted to term loansLoan delinquency(a)Current$12,301 $17,280 $61,337 $79,760 $52,289 $70,270 $6,974 $7,088 $307,299 30-149 days past due13 54 139 110 59 747 53 204 1,379 150 or more days past due - 11 71 68 49 501 8 127 835 Total retained loans$12,314 $17,345 $61,547 $79,938 $52,397 $71,518 $7,035 $7,419 $309,513 % of 30+ days past due to total retained loans(b)0.11 %0.37 %0.34 %0.22 %0.21 %1.72 %0.87 %4.46 %0.71 %Gross charge-offs$ - $ - $1 $1 $ - $176 $21 $7 $206 As of or for the year ended December 31, 2024 (in millions, except ratios) Term loans by origination year(c)" **Prior (2025):** Delinquency is the primary credit quality indicator for retained residential real estate loans. The following tables provide information on delinquency and gross charge-offs. (in millions, except ratios)December 31, 2024Term loans by origination year(c)Revolving loansTotal20242023202220212020Prior to 2020Within the revolving periodConverted to term loansLoan delinquency(a)Current$12,301 $17,280 $61,337 $79,760 $52,289 $70,270 $6,974 $7,088 $307,299 30-149 days past due13 54 139 110 59 747 53 204 1,379 150 or more days past due - 11 71 68 49 501 8 127 835 Total retained loans$12,314 $17,345 $61,547 $79,938 $52,397 $71,518 $7,035 $7,419 $309,513 % of 30+ days past due to total retained loans(b)0.11 %0.37 %0.34 %0.22 %0.21 %1.72 %0.87 %4.46 %0.71 %Gross charge-offs$ - $ - $1 $1 $ - $176 $21 $7 $206 Term loans by origination year(c) **Current (2026):** % of 30+ days past due to total retained loans(b) Gross charge-offs As of or for the year ended December 31, 2024 (in millions, except ratios)Term loans by origination year(c)Revolving loansTotal20242023202220212020Prior to 2020Within the revolving periodConverted to term loansLoan delinquency(a)Current$12,301 $17,280 $61,337 $79,760 $52,289 $70,270 $6,974 $7,088 $307,299 30-149 days past due13 54 139 110 59 747 53 204 1,379 150 or more days past due - 11 71 68 49 501 8 127 835 Total retained loans$12,314 $17,345 $61,547 $79,938 $52,397 $71,518 $7,035 $7,419 $309,513 % of 30+ days past due to total retained loans(b)0.11 %0.37 %0.34 %0.22 %0.21 %1.72 %0.87 %4.46 %0.71 %Gross charge-offs$ - $ - $1 $1 $ - $176 $21 $7 $206 As of or for the year ended December 31, 2024 (in millions, except ratios) Term loans by origination year(c) --- ## Modified Risk: Recent events **Key changes:** - Updated: "•On December 8, 2025, JPMorganChase announced that Todd A." - Updated: "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.The Firm provided the following outlook information on January 13, 2026 in connection with announcing its results for the year and quarter ended December 31, 2025:Full-year 2026•Management expects net interest income to be approximately $103 billion and net interest income excluding Markets to be approximately $95 billion, market dependent." - Added: "The Firm provided the following outlook information on January 13, 2026 in connection with announcing its results for the year and quarter ended December 31, 2025:" **Prior (2025):** •On January 14, 2025, JPMorganChase announced new responsibilities for several of its senior executives: -Daniel Pinto, President and Chief Operating Officer ("COO"), will retire at the end of 2026. Mr. Pinto will relinquish his responsibilities as President and COO as of June 30, 2025. He will continue to serve the Firm as Vice Chairman through the end of 2026. -Jennifer Piepszak, Co-Chief Executive Officer of the Commercial & Investment Bank ("CIB"), was named a COO of the Firm, effective January 14, 2025. -Doug Petno, Co-head of Global Banking, succeeded Ms. Piepszak as Co-Chief Executive Officer of CIB. •On December 12, 2024, the Firm announced that Michele G. Buck, 63, had been elected as a director of the Firm, effective March 17, 2025. Ms. Buck is Chairman of the Board, President and CEO of The Hershey Company. OutlookThese current expectations are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the current beliefs and expectations of JPMorganChase's management, speak only as of the date of this Form 10-K, and are subject to significant risks and uncertainties. Refer to Forward-Looking Statements on page 167 and Part I, Item 1A: Risk Factors on pages 10-37 of this Form 10-K for a further discussion of certain of those risks and uncertainties and the other factors that could cause JPMorganChase's actual results to differ materially because of those risks and uncertainties. There is no assurance that actual results in 2025 will be in line with the outlook information set forth below, and the Firm does not undertake to update any forward-looking statements.JPMorganChase's current outlook for full-year 2025 should be viewed against the backdrop of the global and U.S. economies, financial markets activity, the geopolitical environment, the competitive environment, client and customer activity levels, and regulatory and legislative developments in the U.S. and other countries where the Firm does business. Each of these factors will affect the performance of the Firm. The Firm will continue to make appropriate adjustments to its businesses and operations in response to ongoing developments in the business, economic, regulatory and legal environments in which it operates.Full-year 2025•Management expects net interest income to be approximately $94.0 billion and net interest income excluding Markets to be approximately $90.0 billion, market dependent. •Management expects adjusted expense to be approximately $95.0 billion, market dependent.•Management expects the net charge-off rate in Card Services to be approximately 3.60%.Net interest income excluding Markets and adjusted expense are non-GAAP financial measures. Refer to Explanation and Reconciliation of the Firm's Use of Non-GAAP Financial Measures on pages 67-69. Outlook These current expectations are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the current beliefs and expectations of JPMorganChase's management, speak only as of the date of this Form 10-K, and are subject to significant risks and uncertainties. Refer to Forward-Looking Statements on page 167 and Part I, Item 1A: Risk Factors on pages 10-37 of this Form 10-K for a further discussion of certain of those risks and uncertainties and the other factors that could cause JPMorganChase's actual results to differ materially because of those risks and uncertainties. There is no assurance that actual results in 2025 will be in line with the outlook information set forth below, and the Firm does not undertake to update any forward-looking statements. JPMorganChase's current outlook for full-year 2025 should be viewed against the backdrop of the global and U.S. economies, financial markets activity, the geopolitical environment, the competitive environment, client and customer activity levels, and regulatory and legislative developments in the U.S. and other countries where the Firm does business. Each of these factors will affect the performance of the Firm. The Firm will continue to make appropriate adjustments to its businesses and operations in response to ongoing developments in the business, economic, regulatory and legal environments in which it operates. **Current (2026):** •On December 8, 2025, JPMorganChase announced that Todd A. Combs had resigned from the Firm's Board of Directors and would join the Firm as the head of the Strategic Investment Group within the Firm's Security and Resiliency Initiative. OutlookThe statements set forth below are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the beliefs and expectations of JPMorganChase's management, speak only as of the date on which they were made, and are subject to significant risks and uncertainties. Refer to Forward-Looking Statements on page 160 and Part I, Item 1A: Risk Factors on pages 9-31 of this Form 10-K for a further discussion of certain of those risks and uncertainties and the other factors that could cause JPMorganChase's actual results to differ materially because of those risks and uncertainties. There is no assurance that actual results in 2026 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 outlook for full-year 2026 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.The Firm provided the following outlook information on January 13, 2026 in connection with announcing its results for the year and quarter ended December 31, 2025:Full-year 2026•Management expects net interest income to be approximately $103 billion and net interest income excluding Markets to be approximately $95 billion, market dependent. •Management expects adjusted expense to be approximately $105 billion, market dependent.•Management expects the net charge-off rate in Card Services to be approximately 3.4%.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 59-61. Outlook The statements set forth below are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the beliefs and expectations of JPMorganChase's management, speak only as of the date on which they were made, and are subject to significant risks and uncertainties. Refer to Forward-Looking Statements on page 160 and Part I, Item 1A: Risk Factors on pages 9-31 of this Form 10-K for a further discussion of certain of those risks and uncertainties and the other factors that could cause JPMorganChase's actual results to differ materially because of those risks and uncertainties. There is no assurance that actual results in 2026 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 outlook for full-year 2026 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. The Firm provided the following outlook information on January 13, 2026 in connection with announcing its results for the year and quarter ended December 31, 2025: --- ## Modified Risk: Nonaccrual loans **Key changes:** - Updated: "The following table presents changes in consumer, excluding credit card, nonaccrual loans for the years ended December 31, 2025 and 2024." - Updated: "Geographic and FICO composition of credit card loansAt December 31, 2025, $116.3 billion, or 47% of the total retained credit card loan portfolio, was concentrated in California, Texas, New York, Florida and Illinois, compared to $109.0 billion, or 47%, at December 31, 2024." - Updated: "Credit cardTotal credit card loans increased compared to December 31, 2024, reflecting growth from new accounts and revolving balances." - Updated: "Geographic and FICO composition of credit card loansAt December 31, 2025, $116.3 billion, or 47% of the total retained credit card loan portfolio, was concentrated in California, Texas, New York, Florida and Illinois, compared to $109.0 billion, or 47%, at December 31, 2024." **Prior (2025):** The following table presents changes in consumer, excluding credit card, nonaccrual loans for the years ended December 31, 2024 and 2023. Nonaccrual loan activityYear ended December 31,(in millions)20242023Beginning balance$4,203 $4,325 Additions:3,225 2,894 Reductions:Principal payments and other894 1,030 Sales803 276 Charge-offs665 472 Returned to performing status963 1,052 Foreclosures and other liquidations177 186 Total reductions3,502 3,016 Net changes(277)(122)Ending balance$3,926 $4,203 Refer to Note 12 for further information about the consumer credit portfolio, including information about delinquencies, other credit quality indicators and loans that were in the process of active or suspended foreclosure. 124JPMorgan Chase & Co./2024 Form 10-K 124JPMorgan Chase & Co./2024 Form 10-K 124JPMorgan Chase & Co./2024 Form 10-K 124 JPMorgan Chase & Co./2024 Form 10-K Credit cardTotal credit card loans increased from December 31, 2023 reflecting growth from new accounts and revolving balances. The December 31, 2024 30+ and 90+ day delinquency rates of 2.17% and 1.14%, respectively, increased compared to the December 31, 2023 30+ and 90+ day delinquency rates of 2.14% and 1.05%, respectively, in line with the Firm's expectations. Net charge-offs increased for the year ended December 31, 2024 compared to the prior year reflecting the seasoning of vintages originated in recent years, credit normalization and balance growth.Consistent with the Firm's policy, all credit card loans typically remain on accrual status until charged off. However, the Firm's allowance for loan losses includes the estimated uncollectible portion of accrued and billed interest and fee income. Geographic and FICO composition of credit card loansAt December 31, 2024, $109.0 billion, or 47% of the total retained credit card loan portfolio, was concentrated in California, Texas, New York, Florida and Illinois, compared to $98.1 billion, or 46%, at December 31, 2023. Refer to Note 12 for further information about this portfolio, including information about delinquencies, geographic and FICO composition. Credit cardTotal credit card loans increased from December 31, 2023 reflecting growth from new accounts and revolving balances. The December 31, 2024 30+ and 90+ day delinquency rates of 2.17% and 1.14%, respectively, increased compared to the December 31, 2023 30+ and 90+ day delinquency rates of 2.14% and 1.05%, respectively, in line with the Firm's expectations. Net charge-offs increased for the year ended December 31, 2024 compared to the prior year reflecting the seasoning of vintages originated in recent years, credit normalization and balance growth.Consistent with the Firm's policy, all credit card loans typically remain on accrual status until charged off. However, the Firm's allowance for loan losses includes the estimated uncollectible portion of accrued and billed interest and fee income. Geographic and FICO composition of credit card loansAt December 31, 2024, $109.0 billion, or 47% of the total retained credit card loan portfolio, was concentrated in California, Texas, New York, Florida and Illinois, compared to $98.1 billion, or 46%, at December 31, 2023. Refer to Note 12 for further information about this portfolio, including information about delinquencies, geographic and FICO composition. **Current (2026):** The following table presents changes in consumer, excluding credit card, nonaccrual loans for the years ended December 31, 2025 and 2024. Nonaccrual loan activityYear ended December 31, (in millions)20252024Beginning balance$3,926 $4,203 Additions:4,506 3,225 Reductions:Principal payments and other962 894 Sales760 803 Charge-offs643 665 Returned to performing status1,200 963 Foreclosures and other liquidations194 177 Total reductions3,759 3,502 Net changes747 (277)Ending balance$4,673 $3,926 Year ended December 31, (in millions) Refer to Note 12 for further information about the consumer credit portfolio, including information about delinquencies, other credit quality indicators and loans that were in the process of active or suspended foreclosure. 116JPMorgan Chase & Co./2025 Form 10-K 116JPMorgan Chase & Co./2025 Form 10-K 116JPMorgan Chase & Co./2025 Form 10-K 116 JPMorgan Chase & Co./2025 Form 10-K Credit cardTotal credit card loans increased compared to December 31, 2024, reflecting growth from new accounts and revolving balances. The December 31, 2025 30+ and 90+ day delinquency rates of 2.16% and 1.10%, respectively, decreased compared to the December 31, 2024 30+ and 90+ day delinquency rates of 2.17% and 1.14%, respectively, in line with the Firm's expectations. Net charge-offs increased for the year ended December 31, 2025 compared to the prior year, reflecting loan growth.Consistent with the Firm's policy, all credit card loans typically remain on accrual status until charged off. However, the Firm's allowance for loan losses includes the estimated uncollectible portion of accrued and billed interest and fee income. Geographic and FICO composition of credit card loansAt December 31, 2025, $116.3 billion, or 47% of the total retained credit card loan portfolio, was concentrated in California, Texas, New York, Florida and Illinois, compared to $109.0 billion, or 47%, at December 31, 2024. Refer to Note 12 for further information about this portfolio, including information about delinquencies, geographic and FICO composition. Credit cardTotal credit card loans increased compared to December 31, 2024, reflecting growth from new accounts and revolving balances. The December 31, 2025 30+ and 90+ day delinquency rates of 2.16% and 1.10%, respectively, decreased compared to the December 31, 2024 30+ and 90+ day delinquency rates of 2.17% and 1.14%, respectively, in line with the Firm's expectations. Net charge-offs increased for the year ended December 31, 2025 compared to the prior year, reflecting loan growth.Consistent with the Firm's policy, all credit card loans typically remain on accrual status until charged off. However, the Firm's allowance for loan losses includes the estimated uncollectible portion of accrued and billed interest and fee income. Geographic and FICO composition of credit card loansAt December 31, 2025, $116.3 billion, or 47% of the total retained credit card loan portfolio, was concentrated in California, Texas, New York, Florida and Illinois, compared to $109.0 billion, or 47%, at December 31, 2024. Refer to Note 12 for further information about this portfolio, including information about delinquencies, geographic and FICO composition. --- ## Modified Risk: An outbreak or escalation of hostilities between countries or within a country or region could have a material adverse effect on the global economy and on JPMorganChase's businesses within the affected region or globally. **Key changes:** - Updated: "Conflicts and hostilities between countries or other antagonists could expand in unpredictable ways, including: •intensified cyber attacks •drawing in other adversaries•armed conflict, or •escalation into full-scale war, which could have catastrophic consequences." - Removed: "JPMorganChase could also experience more numerous and aggressive cyber attacks launched by or under the sponsorship of one or more of the adversaries in such a conflict.JPMorganChase's business and operations in certain countries can be adversely affected by local economic, political, regulatory and social factors.Some of the countries in which JPMorganChase conducts business have economies or markets that are less developed and more volatile or may have political, legal and regulatory regimes that are less established or predictable than other countries in which JPMorganChase operates." - Removed: "In addition, in some jurisdictions in which JPMorganChase conducts business, the local economy and business activities are subject to substantial government influence or control." - Removed: "Some of these countries have in the past experienced economic disruptions, including:•extreme currency fluctuations•high inflation•low or negative growth•defaults or reduced ability to service sovereign debt and•increased fraud or other misrepresentation of value.The governments in these countries have sometimes reacted to these developments by imposing restrictive policies that adversely affect the local and regional business environment, such as:•price, capital or exchange controls, including imposition of punitive transfer and convertibility restrictions or forced currency exchange•expropriation or nationalization of assets, including client assets, or confiscation of property, including intellectual property, and•changes in laws, rules and regulations." - Removed: "The impact of these actions could be accentuated in trading markets that are smaller, less liquid and more volatile than more-developed markets." **Prior (2025):** Aggressive actions by hostile governments or groups, including armed conflict or intensified cyber attacks, could expand in unpredictable ways by drawing in other countries or escalating into full-scale war with potentially catastrophic consequences, particularly if one or more of the combatants possess nuclear weapons. Depending on the scope of the conflict, the hostilities could result in: •worldwide economic disruption •heightened volatility in financial markets •severe declines in asset values, accompanied by widespread sell-offs of investments •sudden increases in prices in the energy and commodity markets or for certain safe haven currencies •substantial depreciation of local currencies, potentially leading to defaults by borrowers and counterparties in the affected region •disruption of global trade •diminished consumer, business and investor confidence •refugee and humanitarian crises, and •new economic sanctions or other regulatory requirements, including those that introduce exceptional compliance challenges for multinational companies such as JPMorganChase. Any of the above consequences could have significant negative effects on JPMorganChase's operations and earnings, both in the countries or regions directly affected by the hostilities or globally. Further, if the U.S. were to become directly involved in such a conflict, this could lead to a curtailment of any operations that JPMorganChase may have in the affected countries or region, as well as in any nation that is aligned against the U.S. in the hostilities. JPMorganChase could also experience more numerous and aggressive cyber attacks launched by or under the sponsorship of one or more of the adversaries in such a conflict.JPMorganChase's business and operations in certain countries can be adversely affected by local economic, political, regulatory and social factors.Some of the countries in which JPMorganChase conducts business have economies or markets that are less developed and more volatile or may have political, legal and regulatory regimes that are less established or predictable than other countries in which JPMorganChase operates. In addition, in some jurisdictions in which JPMorganChase conducts business, the local economy and business activities are subject to substantial government influence or control. Some of these countries have in the past experienced economic disruptions, including:•extreme currency fluctuations•high inflation•low or negative growth•defaults or reduced ability to service sovereign debt and•increased fraud or other misrepresentation of value.The governments in these countries have sometimes reacted to these developments by imposing restrictive policies that adversely affect the local and regional business environment, such as:•price, capital or exchange controls, including imposition of punitive transfer and convertibility restrictions or forced currency exchange•expropriation or nationalization of assets, including client assets, or confiscation of property, including intellectual property, and•changes in laws, rules and regulations. The impact of these actions could be accentuated in trading markets that are smaller, less liquid and more volatile than more-developed markets. These types of government actions can negatively affect JPMorganChase's operations in the relevant country, either directly or by suppressing the business activities of local clients or multi-national clients that conduct business in the jurisdiction. In addition, emerging markets countries, as well as more developed countries, have been susceptible to Any of the above consequences could have significant negative effects on JPMorganChase's operations and earnings, both in the countries or regions directly affected by the hostilities or globally. Further, if the U.S. were to become directly involved in such a conflict, this could lead to a curtailment of any operations that JPMorganChase may have in the affected countries or region, as well as in any nation that is aligned against the U.S. in the hostilities. JPMorganChase could also experience more numerous and aggressive cyber attacks launched by or under the sponsorship of one or more of the adversaries in such a conflict. **Current (2026):** Conflicts and hostilities between countries or other antagonists could expand in unpredictable ways, including: •intensified cyber attacks •drawing in other adversaries•armed conflict, or •escalation into full-scale war, which could have catastrophic consequences. Depending on the scope of the conflict, the hostilities could result in:•worldwide economic disruption•heightened volatility in financial markets•severe declines in asset values, accompanied by widespread sell-offs of investments•sudden increases in prices in the energy and commodity markets or for certain safe haven currencies•substantial depreciation of local currencies, potentially leading to defaults by borrowers and counterparties in the affected region•sustained disruption to or destruction of infrastructure, including energy and power facilities and undersea cables•disruption of global trade, including retaliatory countermeasures•changes in economic alliances or treaties, including the potential fragmentation of trade and economic activity that may result from the formation or hardening of national or regional alliances•diminished consumer, business and investor confidence•refugee and humanitarian crises, and•economic sanctions or other regulatory requirements.Any of the above consequences could have significant negative effects on JPMorganChase's operations and earnings, both in the countries or regions directly affected by the hostilities or globally. Further, if the U.S. were to become directly involved in such a conflict, this could lead to a curtailment of any operations that JPMorganChase may have in the affected countries or region, as well as in any nation that is aligned against the U.S. in the hostilities. JPMorganChase could also experience more numerous and aggressive cyber attacks launched by or under the sponsorship of one or more of the adversaries in such a conflict.JPMorganChase's business and operations in certain countries could be adversely affected by local economic, political, regulatory and social factors.Some of the countries where JPMorganChase conducts business have economies or markets that are less developed and more volatile or have political, legal and regulatory regimes that are unpredictable or less established. In addition, in some places where JPMorganChase conducts business, the local economy and business activities are subject to substantial government influence or control. Some of these •drawing in other adversaries •armed conflict, or •escalation into full-scale war, which could have catastrophic consequences. Depending on the scope of the conflict, the hostilities could result in: •worldwide economic disruption •heightened volatility in financial markets •severe declines in asset values, accompanied by widespread sell-offs of investments •sudden increases in prices in the energy and commodity markets or for certain safe haven currencies •substantial depreciation of local currencies, potentially leading to defaults by borrowers and counterparties in the affected region •sustained disruption to or destruction of infrastructure, including energy and power facilities and undersea cables •disruption of global trade, including retaliatory countermeasures •changes in economic alliances or treaties, including the potential fragmentation of trade and economic activity that may result from the formation or hardening of national or regional alliances •diminished consumer, business and investor confidence •refugee and humanitarian crises, and •economic sanctions or other regulatory requirements. Any of the above consequences could have significant negative effects on JPMorganChase's operations and earnings, both in the countries or regions directly affected by the hostilities or globally. Further, if the U.S. were to become directly involved in such a conflict, this could lead to a curtailment of any operations that JPMorganChase may have in the affected countries or region, as well as in any nation that is aligned against the U.S. in the hostilities. JPMorganChase could also experience more numerous and aggressive cyber attacks launched by or under the sponsorship of one or more of the adversaries in such a conflict. --- ## Modified Risk: Valuation process **Key changes:** - Updated: "Risk-taking functions are responsible for providing fair value estimates for assets and liabilities carried on the Consolidated balance sheets at fair value." - Updated: "Refer to Credit and funding adjustments on page 191 of this Note for more information on such adjustments.Valuation model review and approval If prices or quotes are not available for an instrument or a similar instrument, fair value is generally determined using valuation models that consider relevant transaction terms such as maturity and use as inputs market-based or independently sourced parameters." - Updated: "would consider in the transfer of the net open risk position, including the size of the adverse market move that is likely to occur during the period required to sufficiently reduce the net open risk position." - Updated: "Refer to Credit and funding adjustments on page 191 of this Note for more information on such adjustments.Valuation model review and approval If prices or quotes are not available for an instrument or a similar instrument, fair value is generally determined using valuation models that consider relevant transaction terms such as maturity and use as inputs market-based or independently sourced parameters." - Updated: "would consider in the transfer of the net open risk position, including the size of the adverse market move that is likely to occur during the period required to sufficiently reduce the net open risk position." **Prior (2025):** based on factors that a relevant market participant would consider in the transfer of the net open risk position, including the size of the adverse market move that is likely to occur during the period required to sufficiently reduce the net open risk position. •Uncertainty adjustments related to unobservable parameters may be made when positions are valued using prices or input parameters to valuation models that are unobservable due to a lack of market activity or because they cannot be implied from observable market data. Such prices or parameters must be estimated and are, therefore, subject to management judgment. Adjustments are made to reflect the uncertainty inherent in the resulting valuation estimate. •Where appropriate, the Firm also applies adjustments to its estimates of fair value in order to appropriately reflect counterparty credit quality (CVA), the Firm's own creditworthiness (DVA) and the impact of funding (FVA), using a consistent framework across the Firm. Refer to Credit and funding adjustments on page 198 of this Note for more information on such adjustments.Valuation model review and approval If prices or quotes are not available for an instrument or a similar instrument, fair value is generally determined using valuation models that consider relevant transaction terms such as maturity and use as inputs market-based or independently sourced parameters. Where this is the case the price verification process described above is applied to the inputs in those models. Under the Firm's Estimations and Model Risk Management Policy, MRGR reviews and approves new models, as well as material changes to existing models, prior to implementation in the operating environment. In certain circumstances exceptions may be granted to the Firm's policy to allow a model to be used prior to review or approval. MRGR may also require the user to take appropriate actions to mitigate the model risk if it is to be used in the interim. These actions will depend on the model and may include, for example, limitation of trading activity. Fair value hierarchy A three-level fair value hierarchy has been established under U.S. GAAP for disclosure of fair value measurements. The fair value hierarchy is based on the observability of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows. •Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. •Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.•Level 3 - one or more inputs to the valuation methodology are unobservable and significant to the fair value measurement. A financial instrument's categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. based on factors that a relevant market participant would consider in the transfer of the net open risk position, including the size of the adverse market move that is likely to occur during the period required to sufficiently reduce the net open risk position. •Uncertainty adjustments related to unobservable parameters may be made when positions are valued using prices or input parameters to valuation models that are unobservable due to a lack of market activity or because they cannot be implied from observable market data. Such prices or parameters must be estimated and are, therefore, subject to management judgment. Adjustments are made to reflect the uncertainty inherent in the resulting valuation estimate. •Where appropriate, the Firm also applies adjustments to its estimates of fair value in order to appropriately reflect counterparty credit quality (CVA), the Firm's own creditworthiness (DVA) and the impact of funding (FVA), using a consistent framework across the Firm. Refer to Credit and funding adjustments on page 198 of this Note for more information on such adjustments.Valuation model review and approval If prices or quotes are not available for an instrument or a similar instrument, fair value is generally determined using valuation models that consider relevant transaction terms such as maturity and use as inputs market-based or independently sourced parameters. Where this is the case the price verification process described above is applied to the inputs in those models. Under the Firm's Estimations and Model Risk Management Policy, MRGR reviews and approves new models, as well as material changes to existing models, prior to implementation in the operating environment. In certain circumstances exceptions may be granted to the Firm's policy to allow a model to be used prior to review or approval. MRGR may also require the user to take appropriate actions to mitigate the model risk if it is to be used in the interim. These actions will depend on the model and may include, for example, limitation of trading activity. based on factors that a relevant market participant would consider in the transfer of the net open risk position, including the size of the adverse market move that is likely to occur during the period required to sufficiently reduce the net open risk position. •Uncertainty adjustments related to unobservable parameters may be made when positions are valued using prices or input parameters to valuation models that are unobservable due to a lack of market activity or because they cannot be implied from observable market data. Such prices or parameters must be estimated and are, therefore, subject to management judgment. Adjustments are made to reflect the uncertainty inherent in the resulting valuation estimate. •Where appropriate, the Firm also applies adjustments to its estimates of fair value in order to appropriately reflect counterparty credit quality (CVA), the Firm's own creditworthiness (DVA) and the impact of funding (FVA), using a consistent framework across the Firm. Refer to Credit and funding adjustments on page 198 of this Note for more information on such adjustments. **Current (2026):** Risk-taking functions are responsible for providing fair value estimates for assets and liabilities carried on the Consolidated balance sheets at fair value. The Firm's Valuation Control Group ("VCG"), which is part of the Firm's Finance function and independent of the risk-taking functions, is responsible for verifying these estimates and determining any fair value adjustments that may be required to ensure that the Firm's positions are recorded at fair value. In addition, the Firm's Valuation Governance Forum ("VGF"), which is composed of senior finance and risk executives, is responsible for overseeing the management of risks arising from valuation activities conducted across the Firm. The Firmwide VGF is chaired by the Firmwide head of the VCG (under the direction of the Firm's Controller), and includes sub-forums covering the CIB, CCB, AWM and certain corporate functions including Treasury and CIO. Price verification process The VCG verifies fair value estimates provided by the risk-taking functions by leveraging independently derived prices, valuation inputs and other market data, where available. Where independent prices or inputs are not available, the VCG performs additional review to ensure the reasonableness of the estimates. The additional review may include evaluating the limited market activity including client unwinds, benchmarking valuation inputs to those used for similar instruments, decomposing the valuation of structured instruments into individual components, comparing expected to actual cash flows, reviewing profit and loss trends, and reviewing trends in collateral valuation. There are also additional levels of management review for more significant or complex positions.The VCG determines any valuation adjustments that may be required to the estimates provided by the risk-taking functions. No adjustments to quoted prices are applied for instruments classified within level 1 of the fair value hierarchy (refer to the discussion of the fair value hierarchy on page 175 for further information). For other positions, judgment is required to assess the need for valuation adjustments to appropriately reflect liquidity considerations, unobservable parameters, and, for certain portfolios that meet specified criteria, the size of the net open risk position. The determination of such adjustments follows a consistent framework across the Firm:•Liquidity valuation adjustments are considered where an observable external price or valuation parameter exists but is of lower reliability, potentially due to lower market activity. Liquidity valuation adjustments are made based on current market conditions. Factors that may be considered in determining the liquidity adjustment include analysis of: (1) the estimated bid-offer spread for the instrument being traded; (2) alternative pricing points for similar instruments in active markets; and (3) the range of reasonable values that the price or parameter could take. •The Firm manages certain portfolios of financial instruments on the basis of net open risk exposure and, as permitted by U.S. GAAP, has elected to estimate the fair value of such portfolios on the basis of a transfer of the entire net open risk position in an orderly transaction. Where this is the case, valuation adjustments may be necessary to reflect the cost of exiting a larger-than-normal market-size net open risk position. Where applied, such adjustments are based on factors that a relevant market participant head of the VCG (under the direction of the Firm's Controller), and includes sub-forums covering the CIB, CCB, AWM and certain corporate functions including Treasury and CIO. Price verification process The VCG verifies fair value estimates provided by the risk-taking functions by leveraging independently derived prices, valuation inputs and other market data, where available. Where independent prices or inputs are not available, the VCG performs additional review to ensure the reasonableness of the estimates. The additional review may include evaluating the limited market activity including client unwinds, benchmarking valuation inputs to those used for similar instruments, decomposing the valuation of structured instruments into individual components, comparing expected to actual cash flows, reviewing profit and loss trends, and reviewing trends in collateral valuation. There are also additional levels of management review for more significant or complex positions. The VCG determines any valuation adjustments that may be required to the estimates provided by the risk-taking functions. No adjustments to quoted prices are applied for instruments classified within level 1 of the fair value hierarchy (refer to the discussion of the fair value hierarchy on page 175 for further information). For other positions, judgment is required to assess the need for valuation adjustments to appropriately reflect liquidity considerations, unobservable parameters, and, for certain portfolios that meet specified criteria, the size of the net open risk position. The determination of such adjustments follows a consistent framework across the Firm: •Liquidity valuation adjustments are considered where an observable external price or valuation parameter exists but is of lower reliability, potentially due to lower market activity. Liquidity valuation adjustments are made based on current market conditions. Factors that may be considered in determining the liquidity adjustment include analysis of: (1) the estimated bid-offer spread for the instrument being traded; (2) alternative pricing points for similar instruments in active markets; and (3) the range of reasonable values that the price or parameter could take. •The Firm manages certain portfolios of financial instruments on the basis of net open risk exposure and, as permitted by U.S. GAAP, has elected to estimate the fair value of such portfolios on the basis of a transfer of the entire net open risk position in an orderly transaction. Where this is the case, valuation adjustments may be necessary to reflect the cost of exiting a larger-than-normal market-size net open risk position. Where applied, such adjustments are based on factors that a relevant market participant 174JPMorgan Chase & Co./2025 Form 10-K 174JPMorgan Chase & Co./2025 Form 10-K 174JPMorgan Chase & Co./2025 Form 10-K 174 JPMorgan Chase & Co./2025 Form 10-K would consider in the transfer of the net open risk position, including the size of the adverse market move that is likely to occur during the period required to sufficiently reduce the net open risk position. •Uncertainty adjustments related to unobservable parameters may be made when positions are valued using prices or input parameters to valuation models that are unobservable due to a lack of market activity or because they cannot be implied from observable market data. Such prices or parameters must be estimated and are, therefore, subject to management judgment. Adjustments are made to reflect the uncertainty inherent in the resulting valuation estimate. •Where appropriate, the Firm also applies adjustments to its estimates of fair value in order to appropriately reflect counterparty credit quality (CVA), the Firm's own creditworthiness (DVA) and the impact of funding (FVA), using a consistent framework across the Firm. Refer to Credit and funding adjustments on page 191 of this Note for more information on such adjustments.Valuation model review and approval If prices or quotes are not available for an instrument or a similar instrument, fair value is generally determined using valuation models that consider relevant transaction terms such as maturity and use as inputs market-based or independently sourced parameters. Where this is the case the price verification process described above is applied to the inputs in those models. Under the Firm's Estimations and Model Risk Management Policy, MRGR reviews and approves new models, as well as material changes to existing models, prior to implementation in the operating environment. In certain circumstances exceptions may be granted to the Firm's policy to allow a model to be used prior to review or approval. MRGR may also require the user to take appropriate actions to mitigate the model risk if it is to be used in the interim. These actions will depend on the model and may include, for example, limitation of trading activity. Fair value hierarchy A three-level fair value hierarchy has been established under U.S. GAAP for disclosure of fair value measurements. The fair value hierarchy is based on the observability of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows. •Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. •Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.•Level 3 - one or more inputs to the valuation methodology are unobservable and significant to the fair value measurement. A financial instrument's categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. would consider in the transfer of the net open risk position, including the size of the adverse market move that is likely to occur during the period required to sufficiently reduce the net open risk position. •Uncertainty adjustments related to unobservable parameters may be made when positions are valued using prices or input parameters to valuation models that are unobservable due to a lack of market activity or because they cannot be implied from observable market data. Such prices or parameters must be estimated and are, therefore, subject to management judgment. Adjustments are made to reflect the uncertainty inherent in the resulting valuation estimate. •Where appropriate, the Firm also applies adjustments to its estimates of fair value in order to appropriately reflect counterparty credit quality (CVA), the Firm's own creditworthiness (DVA) and the impact of funding (FVA), using a consistent framework across the Firm. Refer to Credit and funding adjustments on page 191 of this Note for more information on such adjustments.Valuation model review and approval If prices or quotes are not available for an instrument or a similar instrument, fair value is generally determined using valuation models that consider relevant transaction terms such as maturity and use as inputs market-based or independently sourced parameters. Where this is the case the price verification process described above is applied to the inputs in those models. Under the Firm's Estimations and Model Risk Management Policy, MRGR reviews and approves new models, as well as material changes to existing models, prior to implementation in the operating environment. In certain circumstances exceptions may be granted to the Firm's policy to allow a model to be used prior to review or approval. MRGR may also require the user to take appropriate actions to mitigate the model risk if it is to be used in the interim. These actions will depend on the model and may include, for example, limitation of trading activity. would consider in the transfer of the net open risk position, including the size of the adverse market move that is likely to occur during the period required to sufficiently reduce the net open risk position. •Uncertainty adjustments related to unobservable parameters may be made when positions are valued using prices or input parameters to valuation models that are unobservable due to a lack of market activity or because they cannot be implied from observable market data. Such prices or parameters must be estimated and are, therefore, subject to management judgment. Adjustments are made to reflect the uncertainty inherent in the resulting valuation estimate. •Where appropriate, the Firm also applies adjustments to its estimates of fair value in order to appropriately reflect counterparty credit quality (CVA), the Firm's own creditworthiness (DVA) and the impact of funding (FVA), using a consistent framework across the Firm. Refer to Credit and funding adjustments on page 191 of this Note for more information on such adjustments. --- ## Modified Risk: Geographic region(c) **Key changes:** - Updated: "(b)Interest income on nonaccrual loans recognized on a cash basis was not material for the years ended December 31, 2025 and 2024." **Prior (2025):** (a)Generally, all consumer nonaccrual loans have an allowance. In accordance with regulatory guidance, certain nonaccrual loans that are considered collateral-dependent have been charged down to the lower of amortized cost or the fair value of their underlying collateral less costs to sell. If the value of the underlying collateral improves subsequent to charge down, the related allowance may be negative. (b)Interest income on nonaccrual loans recognized on a cash basis was not material for the years ended December 31, 2024 and 2023. (c)The geographic regions presented in this table are ordered based on the magnitude of the corresponding loan balances at December 31, 2024. Loan modifications The Firm grants certain modifications of auto and other loans to borrowers experiencing financial difficulty.For the years ended December 31, 2024 and 2023, retained auto and other FDMs were not material. As of December 31, 2024 and 2023, there were no additional commitments to lend to borrowers modified as FDMs.For periods ending prior to January 1, 2023, modifications of auto and other loans where the Firm granted concessions to borrowers who were experiencing financial difficulty were generally accounted for and reported as TDRs. Loans with short-term or other insignificant modifications that were not considered concessions were not TDRs. For the year ended December 31, 2022, auto and other TDRs were not material. **Current (2026):** (a)Generally, all consumer nonaccrual loans have an allowance. In accordance with regulatory guidance, certain nonaccrual loans that are considered collateral-dependent have been charged down to the lower of amortized cost or the fair value of their underlying collateral less costs to sell. If the value of the underlying collateral improves subsequent to charge down, the related allowance may be negative. (b)Interest income on nonaccrual loans recognized on a cash basis was not material for the years ended December 31, 2025 and 2024. (c)The geographic regions presented in this table are ordered based on the magnitude of the corresponding loan balances at December 31, 2025. Loan modifications The Firm grants certain modifications of auto and other loans to borrowers experiencing financial difficulty.For the years ended December 31, 2025, 2024 and 2023 retained auto and other FDMs were not material.As of December 31, 2025 and 2024, there were no additional unfunded commitments to lend to borrowers experiencing financial difficulty whose loans have been modified as FDMs. --- ## Modified Risk: Stress testing **Key changes:** - Updated: "Stress testing is important in assessing, measuring and monitoring credit risk in the Firm's credit portfolio." - Updated: "JPMorgan Chase & Co./2025 Form 10-K109 JPMorgan Chase & Co./2025 Form 10-K109 JPMorgan Chase & Co./2025 Form 10-K109 JPMorgan Chase & Co./2025 Form 10-K 109" **Prior (2025):** Stress testing is important in measuring and managing credit risk in the Firm's credit portfolio. The stress testing process assesses the potential impact of alternative economic and business scenarios on estimated credit losses for the Firm. Economic scenarios and the underlying parameters are defined centrally, articulated in terms of macroeconomic factors and applied across the businesses. The stress test results may indicate credit migration, changes in delinquency trends and potential losses in the credit portfolio. In addition to the periodic stress testing processes, management also considers additional stresses outside these scenarios, including industry and country- specific stress scenarios, as appropriate. The Firm uses stress testing to inform decisions on setting risk appetite both at a Firm and LOB level, as well as to assess the impact of stress on individual counterparties. JPMorgan Chase & Co./2024 Form 10-K117 JPMorgan Chase & Co./2024 Form 10-K117 JPMorgan Chase & Co./2024 Form 10-K117 JPMorgan Chase & Co./2024 Form 10-K 117 **Current (2026):** Stress testing is important in assessing, measuring and monitoring credit risk in the Firm's credit portfolio. The stress testing process assesses the potential impact of alternative economic and business scenarios on estimated credit losses for the Firm. Economic scenarios and the underlying parameters are defined centrally, articulated in terms of macroeconomic factors and applied across the businesses. The stress test results may indicate credit migration, changes in delinquency trends and potential losses in the credit portfolio. In addition to the periodic stress testing processes, management also considers additional stresses outside these scenarios, including industry and country- specific stress scenarios, as appropriate. The Firm uses stress testing to inform decisions on setting risk appetite both at a Firm and LOB level, as well as to assess the impact of stress on individual counterparties. JPMorgan Chase & Co./2025 Form 10-K109 JPMorgan Chase & Co./2025 Form 10-K109 JPMorgan Chase & Co./2025 Form 10-K109 JPMorgan Chase & Co./2025 Form 10-K 109 --- ## Modified Risk: Loan modifications **Key changes:** - Updated: "Financial effects of FDMs The following tables provide information on retained credit card FDMs." **Prior (2025):** The Firm grants certain modifications of credit card loans to borrowers experiencing financial difficulty. These modifications may involve placing the customer's credit card account on a fixed payment plan, generally for 60 months, which typically includes reducing the interest rate on the credit card account. If the borrower does not make the contractual payments when due under the modified payment terms, the credit card loan continues to age and will be charged-off in accordance with the Firm's standard charge-off policy. In most cases, the Firm does not reinstate the borrower's line of credit. Financial effects of FDMs The following table provides information on retained credit card FDMs. Year ended December 31,(in millions)Loan modifications20242023Term extension and interest rate reduction(a)(b)Amortized cost basis$926 $648 % of total modifications to total retained credit card loans0.40 %0.31 %Financial effect of loan modificationsTerm extension with a reduction in the weighted average contractual interest rate from 23.64% to 3.20%Term extension with a reduction in the weighted average contractual interest rate from 23.19% to 3.64% Year ended December 31, (in millions) Loan modifications **Current (2026):** The Firm grants certain modifications of credit card loans to borrowers experiencing financial difficulty. These modifications may involve placing the customer's credit card account on a fixed payment plan, generally for 60 months, which typically includes reducing the interest rate on the credit card account. If the borrower does not make the contractual payments when due under the modified payment terms, the credit card loan continues to age and will be charged-off in accordance with the Firm's standard charge-off policy. In most cases, the Firm does not reinstate the borrower's line of credit. Financial effects of FDMs The following tables provide information on retained credit card FDMs. Loan modificationsYear ended December 31, 2025(in millions, except ratios)Amortized cost basis% of loan modifications to total retained credit card loansFinancial effect of loan modificationsTerm extension and interest rate reduction(a)(b)$1,800 0.73 %Term extension with a reduction in the weighted average contractual interest rate from 22.88% to 3.48%Other(b)(c)284 0.11 Reduced weighted-average contractual interest rate from 22.75% to 8.09%Total$2,084 --- ## Modified Risk: Overhead ratio **Key changes:** - Updated: "60JPMorgan Chase & Co./2025 Form 10-K 60JPMorgan Chase & Co./2025 Form 10-K 60JPMorgan Chase & Co./2025 Form 10-K 60 JPMorgan Chase & Co./2025 Form 10-K" **Prior (2025):** Total noninterest expense / Total net revenue ROA Reported net income / Total average assets ROE Net income* / Average common stockholders' equity ROTCE Net income* / Average tangible common equity TBVPS Tangible common equity at period-end / Common shares at period-end * Represents net income applicable to common equity In addition, the Firm reviews other non-GAAP measures such as: •Adjusted expense, which represents noninterest expense excluding Firmwide legal expense, and •Pre-provision profit, which represents total net revenue less total noninterest expense. Management believes that these measures help investors to understand the effect of these items on reported results and provide an alternative presentation of the Firm's performance. 68JPMorgan Chase & Co./2024 Form 10-K 68JPMorgan Chase & Co./2024 Form 10-K 68JPMorgan Chase & Co./2024 Form 10-K 68 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** Total noninterest expense / Total net revenue ROA Reported net income / Total average assets ROE Net income* / Average common stockholders' equity ROTCE Net income* / Average tangible common equity TBVPS Tangible common equity at period-end / Common shares at period-end * Represents net income applicable to common equity In addition, the Firm reviews other non-GAAP measures such as: •Adjusted expense, which represents noninterest expense excluding Firmwide legal expense, and •Pre-provision profit, which represents total net revenue less total noninterest expense. Management believes that these measures help investors to understand the effect of these items on reported results and provide an alternative presentation of the Firm's performance. 60JPMorgan Chase & Co./2025 Form 10-K 60JPMorgan Chase & Co./2025 Form 10-K 60JPMorgan Chase & Co./2025 Form 10-K 60 JPMorgan Chase & Co./2025 Form 10-K --- ## Modified Risk: LCR and HQLA **Key changes:** - Updated: "The following table summarizes the Firm and JPMorgan Chase Bank, N.A.'s average LCR for the three months ended December 31, 2025, September 30, 2025 and December 31, 2024 based on the Firm's interpretation of the LCR framework.Three months endedAverage amount(in millions)December 31, 2025September 30, 2025December 31, 2024JPMorgan Chase & Co.:HQLAEligible cash(a)$281,117 $308,298 $396,123 Eligible securities(b)(c)680,862 638,020 464,877 Total HQLA(d)$961,979 $946,318 $861,000 Net cash outflows$868,500 $858,157 $763,648 LCR111 %110 %113 %Net excess eligible HQLA(d)$93,479 $88,161 $97,352 JPMorgan Chase Bank, N.A.:LCR115 %117 %124 %Net excess eligible HQLA$138,052 $152,886 $193,682 (a)Represents cash on deposit at central banks, including the Federal Reserve Banks." - Updated: "The Firm's average LCR for the three months ended December 31, 2025 decreased, compared with the three months ended December 31, 2024, primarily driven by repurchases of and dividends on common stock, predominantly offset by dividend payments from JPMorgan Chase Bank, N.A." **Prior (2025):** The LCR rule requires that the Firm and JPMorgan Chase Bank, N.A. maintain an amount of eligible HQLA that is sufficient to meet their respective estimated total net cash outflows over a prospective 30 calendar-day period of significant stress. Eligible HQLA, for purposes of calculating the LCR, is the amount of unencumbered HQLA that satisfy certain operational considerations as defined in the LCR rule. HQLA primarily consist of cash and certain high-quality liquid securities as defined in the LCR rule. Under the LCR rule, the amount of eligible HQLA held by JPMorgan Chase Bank, N.A. that is in excess of its stand-alone 100% minimum LCR requirement, and that is not transferable to non-bank affiliates, must be excluded from the Firm's reported eligible HQLA. Estimated net cash outflows are based on standardized stress outflow and inflow rates prescribed in the LCR rule, which are applied to the balances of the Firm's assets, sources of funds, and obligations. The LCR for both the Firm and JPMorgan Chase Bank, N.A. is required to be a minimum of 100%. The following table summarizes the Firm and JPMorgan Chase Bank, N.A.'s average LCR for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023 based on the Firm's interpretation of the LCR framework.Three months endedAverage amount(in millions)December 31, 2024September 30, 2024December 31, 2023JPMorgan Chase & Co.:HQLAEligible cash(a)$396,123 $412,389 $485,263 Eligible securities(b)(c)464,877 453,899 313,365 Total HQLA(d)$861,000 $866,288 $798,628 Net cash outflows$763,648 $762,072 $704,857 LCR113 %114 %113 %Net excess eligible HQLA(d)$97,352 $104,216 $93,771 JPMorgan Chase Bank, N.A.:LCR124 %121 %129 %Net excess eligible HQLA$193,682 $168,137 $215,190 (a)Represents cash on deposit at central banks, primarily the Federal Reserve Banks. (b)Eligible HQLA securities may be reported in securities borrowed or purchased under resale agreements, trading assets, or investment securities on the Firm's Consolidated balance sheets. For purposes of calculating the LCR, HQLA securities are included at fair value, which may differ from the accounting treatment under U.S. GAAP.(c)Predominantly U.S. Treasuries, U.S. GSE and government agency MBS, and sovereign bonds net of regulatory haircuts under the LCR rule.(d)Excludes average excess eligible HQLA at JPMorgan Chase Bank, N.A. that are not transferable to non-bank affiliates. JPMorgan Chase Bank, N.A.'s average LCR increased during the three months ended December 31, 2024, compared with the three months ended September 30, 2024, driven by activities in CIB Markets, partially offset by lower market values of HQLA-eligible investment securities and funding maturities.JPMorgan Chase Bank, N.A.'s average LCR for the three months ended December 31, 2024 decreased compared with the three months ended December 31, 2023, driven by dividend payments to the Parent Company and lending activity, largely offset by higher market values of HQLA-eligible investment securities, a reduction in unencumbered non-HQLA AFS securities, activities in CIB Markets, and long-term debt issuances. The following table summarizes the Firm and JPMorgan Chase Bank, N.A.'s average LCR for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023 based on the Firm's interpretation of the LCR framework. Three months endedAverage amount(in millions)December 31, 2024September 30, 2024December 31, 2023JPMorgan Chase & Co.:HQLAEligible cash(a)$396,123 $412,389 $485,263 Eligible securities(b)(c)464,877 453,899 313,365 Total HQLA(d)$861,000 $866,288 $798,628 Net cash outflows$763,648 $762,072 $704,857 LCR113 %114 %113 %Net excess eligible HQLA(d)$97,352 $104,216 $93,771 JPMorgan Chase Bank, N.A.:LCR124 %121 %129 %Net excess eligible HQLA$193,682 $168,137 $215,190 **Current (2026):** The LCR rule requires that the Firm and JPMorgan Chase Bank, N.A. maintain an amount of eligible HQLA that is sufficient to meet their respective estimated total net cash outflows over a prospective 30 calendar-day period of significant stress. Eligible HQLA, for purposes of calculating the LCR, is the amount of unencumbered HQLA that satisfy certain operational considerations as defined in the LCR rule. HQLA primarily consist of cash and certain high-quality liquid securities as defined in the LCR rule. Under the LCR rule, the amount of eligible HQLA held by JPMorgan Chase Bank, N.A. that is in excess of its stand-alone 100% minimum LCR requirement, and that is not transferable to non-bank affiliates, must be excluded from the Firm's reported eligible HQLA. Estimated net cash outflows are based on standardized stress outflow and inflow rates prescribed in the LCR rule, which are applied to the balances of the Firm's assets, sources of funds, and obligations. The LCR for both the Firm and JPMorgan Chase Bank, N.A. is required to be a minimum of 100%. The following table summarizes the Firm and JPMorgan Chase Bank, N.A.'s average LCR for the three months ended December 31, 2025, September 30, 2025 and December 31, 2024 based on the Firm's interpretation of the LCR framework.Three months endedAverage amount(in millions)December 31, 2025September 30, 2025December 31, 2024JPMorgan Chase & Co.:HQLAEligible cash(a)$281,117 $308,298 $396,123 Eligible securities(b)(c)680,862 638,020 464,877 Total HQLA(d)$961,979 $946,318 $861,000 Net cash outflows$868,500 $858,157 $763,648 LCR111 %110 %113 %Net excess eligible HQLA(d)$93,479 $88,161 $97,352 JPMorgan Chase Bank, N.A.:LCR115 %117 %124 %Net excess eligible HQLA$138,052 $152,886 $193,682 (a)Represents cash on deposit at central banks, including the Federal Reserve Banks. (b)Eligible HQLA securities may be reported in securities borrowed or purchased under resale agreements, trading assets, or investment securities on the Firm's Consolidated balance sheets. For purposes of calculating the LCR, HQLA securities are included at fair value, which may differ from the accounting treatment under U.S. GAAP.(c)Predominantly U.S. Treasuries, U.S. GSE and government agency MBS, and sovereign bonds net of regulatory haircuts under the LCR rule.(d)Excludes average excess eligible HQLA at JPMorgan Chase Bank, N.A. that are not transferable to non-bank affiliates. The Firm's average LCR for the three months ended December 31, 2025 decreased, compared with the three months ended December 31, 2024, primarily driven by repurchases of and dividends on common stock, predominantly offset by dividend payments from JPMorgan Chase Bank, N.A. to the Parent Company and activities in CIB Markets.JPMorgan Chase Bank, N.A.'s average LCR for the three months ended December 31, 2025 decreased, compared with the three months ended September 30, 2025, primarily due to higher lending levels, largely offset by higher deposits, higher market values of HQLA-eligible investment securities and long-term debt issuance.JPMorgan Chase Bank, N.A.'s average LCR for the three months ended December 31, 2025 decreased, compared with the three months ended December 31, 2024, driven by higher lending levels and dividend payments to the Parent Company, largely offset by higher deposits and higher market values of HQLA-eligible investment securities. The following table summarizes the Firm and JPMorgan Chase Bank, N.A.'s average LCR for the three months ended December 31, 2025, September 30, 2025 and December 31, 2024 based on the Firm's interpretation of the LCR framework. Three months endedAverage amount(in millions)December 31, 2025September 30, 2025December 31, 2024JPMorgan Chase & Co.:HQLAEligible cash(a)$281,117 $308,298 $396,123 Eligible securities(b)(c)680,862 638,020 464,877 Total HQLA(d)$961,979 $946,318 $861,000 Net cash outflows$868,500 $858,157 $763,648 LCR111 %110 %113 %Net excess eligible HQLA(d)$93,479 $88,161 $97,352 JPMorgan Chase Bank, N.A.:LCR115 %117 %124 %Net excess eligible HQLA$138,052 $152,886 $193,682 --- ## Modified Risk: Allowance for credit losses **Key changes:** - Updated: "The Firm's allowance for credit losses represents management's estimate of expected credit losses over the remaining expected life of the Firm's financial assets measured at amortized cost and certain off-balance sheet lending-related commitments." - Updated: "Refer to Note 2 for further information.December 31, 2025(in millions, except ratios)Total assets at fair valueTotal level 3 assetsFederal funds sold and securities purchased under resale agreements$327,018 $ - Securities borrowed98,111 - Trading assets: Trading-debt and equity instruments745,096 2,794 Derivative receivables(a)57,777 8,926 Total trading assets802,873 11,720 AFS securities507,198 111 Loans70,684 3,062 MSRs9,167 9,167 Other14,801 1,047 Total assets measured at fair value on a recurring basis1,829,852 25,107 Total assets measured at fair value on a nonrecurring basis2,018 1,392 Total assets measured at fair value $1,831,870 $26,499 Total Firm assets$4,424,900 Level 3 assets at fair value as a percentage of total Firm assets(a)1%Level 3 assets at fair value as a percentage of total Firm assets at fair value(a)1%(a)For purposes of the table above, the derivative receivables total reflects the impact of netting adjustments; however, the $8.9 billion of derivative receivables classified as level 3 does not reflect the netting adjustment as such netting is not relevant to a presentation based on the transparency of inputs to the valuation of an asset." - Updated: "analysis cannot be simply extrapolated for more severe changes in macroeconomic variables." - Updated: "To demonstrate the sensitivity of credit loss estimates to macroeconomic forecasts as of December 31, 2025, the Firm compared the modeled estimates under its relative adverse scenario to its central scenario." - Updated: "The majority of such assets and liabilities are measured at fair value on a recurring basis, including trading assets and liabilities, AFS securities, structured note products and certain securities financing agreements." **Prior (2025):** unemployment rate, averaging approximately 2.1% higher over the eight-quarter forecast, with a peak difference of approximately 3.0% in the fourth quarter of 2025.This analysis is not intended to estimate expected future changes in the allowance for credit losses, for a number of reasons, including:•The allowance as of December 31, 2024, reflects credit losses beyond those estimated under the central scenario due to the weight placed on the adverse scenarios.•The impacts of changes in many MEVs are both interrelated and nonlinear, so the results of this analysis cannot be simply extrapolated for more severe changes in macroeconomic variables. •Expectations of future changes in portfolio composition and borrower behavior can significantly affect the allowance for credit losses.To demonstrate the sensitivity of credit loss estimates to macroeconomic forecasts as of December 31, 2024, the Firm compared the modeled estimates under its relative adverse scenario to its central scenario. Without considering offsetting or correlated effects in other qualitative components of the Firm's allowance for credit losses, the comparison between these two scenarios for the exposures below reflect the following differences:•An increase of approximately $850 million for residential real estate loans and lending-related commitments•An increase of approximately $3.7 billion for credit card loans•An increase of approximately $4.1 billion for wholesale loans and lending-related commitmentsThis analysis relates only to the modeled credit loss estimates and is not intended to estimate changes in the overall allowance for credit losses as it does not reflect any potential changes in other adjustments to the quantitative calculation, which would also be influenced by the judgment management applies to the modeled lifetime loss estimates to reflect the uncertainty and imprecision of these modeled lifetime loss estimates based on then-current circumstances and conditions.Recognizing that forecasts of macroeconomic conditions are inherently uncertain, the Firm believes that its process to consider the available information and associated risks and uncertainties is appropriately governed and that its estimates of expected credit losses were reasonable and appropriate for the period ended December 31, 2024.Fair valueJPMorganChase carries a portion of its assets and liabilities at fair value. The majority of such assets and liabilities are measured at fair value on a recurring basis, including derivatives, structured note products and certain securities financing agreements. Certain assets and liabilities are measured at fair value on a nonrecurring basis, including certain mortgage, home equity and other loans, where the carrying value is based on the fair value of the underlying collateral.Assets measured at fair value The following table includes the Firm's assets measured at fair value and the portion of such assets that are classified within level 3 of the fair value hierarchy. Refer to Note 2 for further information.December 31, 2024(in millions, except ratios)Total assets at fair valueTotal level 3 assetsFederal funds sold and securities purchased under resale agreements$286,771 $ - Securities borrowed83,962 - Trading assets: Trading-debt and equity instruments576,817 2,442 Derivative receivables(a)60,967 8,452 Total trading assets637,784 10,894 AFS securities406,852 8 Loans41,350 2,416 MSRs9,121 9,121 Other14,073 1,344 Total assets measured at fair value on a recurring basis1,479,913 23,783 Total assets measured at fair value on a nonrecurring basis2,489 1,742 Total assets measured at fair value $1,482,402 $25,525 Total Firm assets$4,002,814 Level 3 assets at fair value as a percentage of total Firm assets(a)1 %Level 3 assets at fair value as a percentage of total Firm assets at fair value(a)2 %(a)For purposes of the table above, the derivative receivables total reflects the impact of netting adjustments; however, the $8.5 billion of derivative receivables classified as level 3 does not reflect the netting adjustment as such netting is not relevant to a presentation based on the transparency of inputs to the valuation of an asset. The level 3 balances would be reduced if netting were applied, including the netting benefit associated with cash collateral. unemployment rate, averaging approximately 2.1% higher over the eight-quarter forecast, with a peak difference of approximately 3.0% in the fourth quarter of 2025.This analysis is not intended to estimate expected future changes in the allowance for credit losses, for a number of reasons, including:•The allowance as of December 31, 2024, reflects credit losses beyond those estimated under the central scenario due to the weight placed on the adverse scenarios.•The impacts of changes in many MEVs are both interrelated and nonlinear, so the results of this analysis cannot be simply extrapolated for more severe changes in macroeconomic variables. •Expectations of future changes in portfolio composition and borrower behavior can significantly affect the allowance for credit losses.To demonstrate the sensitivity of credit loss estimates to macroeconomic forecasts as of December 31, 2024, the Firm compared the modeled estimates under its relative adverse scenario to its central scenario. Without considering offsetting or correlated effects in other qualitative components of the Firm's allowance for credit losses, the comparison between these two scenarios for the exposures below reflect the following differences:•An increase of approximately $850 million for residential real estate loans and lending-related commitments•An increase of approximately $3.7 billion for credit card loans•An increase of approximately $4.1 billion for wholesale loans and lending-related commitmentsThis analysis relates only to the modeled credit loss estimates and is not intended to estimate changes in the overall allowance for credit losses as it does not reflect any potential changes in other adjustments to the quantitative calculation, which would also be influenced by the judgment management applies to the modeled lifetime loss estimates to reflect the uncertainty and imprecision of these modeled lifetime loss estimates based on then-current circumstances and conditions.Recognizing that forecasts of macroeconomic conditions are inherently uncertain, the Firm believes that its process to consider the available information and associated risks and uncertainties is appropriately governed and that its estimates of expected credit losses were reasonable and appropriate for the period ended December 31, 2024. unemployment rate, averaging approximately 2.1% higher over the eight-quarter forecast, with a peak difference of approximately 3.0% in the fourth quarter of 2025. This analysis is not intended to estimate expected future changes in the allowance for credit losses, for a number of reasons, including: •The allowance as of December 31, 2024, reflects credit losses beyond those estimated under the central scenario due to the weight placed on the adverse scenarios. •The impacts of changes in many MEVs are both interrelated and nonlinear, so the results of this analysis cannot be simply extrapolated for more severe changes in macroeconomic variables. •Expectations of future changes in portfolio composition and borrower behavior can significantly affect the allowance for credit losses. To demonstrate the sensitivity of credit loss estimates to macroeconomic forecasts as of December 31, 2024, the Firm compared the modeled estimates under its relative adverse scenario to its central scenario. Without considering offsetting or correlated effects in other qualitative components of the Firm's allowance for credit losses, the comparison between these two scenarios for the exposures below reflect the following differences: •An increase of approximately $850 million for residential real estate loans and lending-related commitments •An increase of approximately $3.7 billion for credit card loans •An increase of approximately $4.1 billion for wholesale loans and lending-related commitments This analysis relates only to the modeled credit loss estimates and is not intended to estimate changes in the overall allowance for credit losses as it does not reflect any potential changes in other adjustments to the quantitative calculation, which would also be influenced by the judgment management applies to the modeled lifetime loss estimates to reflect the uncertainty and imprecision of these modeled lifetime loss estimates based on then-current circumstances and conditions. Recognizing that forecasts of macroeconomic conditions are inherently uncertain, the Firm believes that its process to consider the available information and associated risks and uncertainties is appropriately governed and that its estimates of expected credit losses were reasonable and appropriate for the period ended December 31, 2024. Fair valueJPMorganChase carries a portion of its assets and liabilities at fair value. The majority of such assets and liabilities are measured at fair value on a recurring basis, including derivatives, structured note products and certain securities financing agreements. Certain assets and liabilities are measured at fair value on a nonrecurring basis, including certain mortgage, home equity and other loans, where the carrying value is based on the fair value of the underlying collateral.Assets measured at fair value The following table includes the Firm's assets measured at fair value and the portion of such assets that are classified within level 3 of the fair value hierarchy. Refer to Note 2 for further information.December 31, 2024(in millions, except ratios)Total assets at fair valueTotal level 3 assetsFederal funds sold and securities purchased under resale agreements$286,771 $ - Securities borrowed83,962 - Trading assets: Trading-debt and equity instruments576,817 2,442 Derivative receivables(a)60,967 8,452 Total trading assets637,784 10,894 AFS securities406,852 8 Loans41,350 2,416 MSRs9,121 9,121 Other14,073 1,344 Total assets measured at fair value on a recurring basis1,479,913 23,783 Total assets measured at fair value on a nonrecurring basis2,489 1,742 Total assets measured at fair value $1,482,402 $25,525 Total Firm assets$4,002,814 Level 3 assets at fair value as a percentage of total Firm assets(a)1 %Level 3 assets at fair value as a percentage of total Firm assets at fair value(a)2 %(a)For purposes of the table above, the derivative receivables total reflects the impact of netting adjustments; however, the $8.5 billion of derivative receivables classified as level 3 does not reflect the netting adjustment as such netting is not relevant to a presentation based on the transparency of inputs to the valuation of an asset. The level 3 balances would be reduced if netting were applied, including the netting benefit associated with cash collateral. Fair value JPMorganChase carries a portion of its assets and liabilities at fair value. The majority of such assets and liabilities are measured at fair value on a recurring basis, including derivatives, structured note products and certain securities financing agreements. Certain assets and liabilities are measured at fair value on a nonrecurring basis, including certain mortgage, home equity and other loans, where the carrying value is based on the fair value of the underlying collateral. Assets measured at fair value The following table includes the Firm's assets measured at fair value and the portion of such assets that are classified within level 3 of the fair value hierarchy. Refer to Note 2 for further information. December 31, 2024(in millions, except ratios)Total assets at fair valueTotal level 3 assetsFederal funds sold and securities purchased under resale agreements$286,771 $ - Securities borrowed83,962 - Trading assets: Trading-debt and equity instruments576,817 2,442 Derivative receivables(a)60,967 8,452 Total trading assets637,784 10,894 AFS securities406,852 8 Loans41,350 2,416 MSRs9,121 9,121 Other14,073 1,344 Total assets measured at fair value on a recurring basis1,479,913 23,783 Total assets measured at fair value on a nonrecurring basis2,489 1,742 Total assets measured at fair value $1,482,402 $25,525 Total Firm assets$4,002,814 Level 3 assets at fair value as a percentage of total Firm assets(a)1 %Level 3 assets at fair value as a percentage of total Firm assets at fair value(a)2 % Derivative receivables(a) **Current (2026):** The Firm's allowance for credit losses represents management's estimate of expected credit losses over the remaining expected life of the Firm's financial assets measured at amortized cost and certain off-balance sheet lending-related commitments. The allowance for credit losses generally comprises: •The allowance for loan losses, which covers the Firm's retained loan portfolios (scored and risk-rated), •The allowance for lending-related commitments, and •The allowance for credit losses on investment securities. The allowance for credit losses involves significant judgment on a number of matters including development and weighting of macroeconomic forecasts, incorporation of historical loss experience, assessment of risk characteristics, assignment of risk ratings, valuation of collateral, and the determination of remaining expected life. Refer to Notes 10 and 13 for further information on these judgments as well as the Firm's policies and methodologies used to determine the Firm's allowance for credit losses. One of the most significant judgments involved in estimating the Firm's allowance for credit losses relates to the macroeconomic forecasts used to estimate credit losses over the eight-quarter forecast period within the Firm's methodology. The eight-quarter forecast incorporates hundreds of macroeconomic variables ("MEVs") that are relevant for exposures across the Firm, with modeled credit losses being driven primarily by a subset of less than twenty variables. The specific variables that have the greatest effect on the modeled losses vary by portfolio and geography.•Key MEVs for the consumer portfolio include regional U.S. unemployment rates and U.S. HPI.•Key MEVs for the wholesale portfolio include U.S. unemployment, U.S. real GDP growth rate, U.S. equity prices, U.S. interest rates, U.S. corporate credit spreads, oil prices, U.S. commercial real estate prices and U.S. HPI.Changes in the Firm's assumptions and forecasts of economic conditions could significantly affect its estimate of expected credit losses in the portfolio at the balance sheet date or lead to significant changes in the estimate from one reporting period to the next.It is difficult to estimate how potential changes in any one factor or input might affect the overall allowance for credit losses because management considers a wide variety of factors and inputs in estimating the allowance for credit losses. Changes in the factors and inputs considered may not occur at the same rate and may not be consistent across all geographies or product types, and changes in factors and inputs may be directionally inconsistent, such that improvement in one factor or input may offset deterioration in others.To consider the impact of a hypothetical alternate macroeconomic forecast, the Firm compared the modeled credit losses determined using its central and relative adverse macroeconomic scenarios, which are two of the five scenarios considered in estimating the allowances for loan losses and lending-related commitments. The central and relative adverse scenarios each included a full suite of MEVs, but differed in the levels, paths and peaks/troughs of those variables over the eight-quarter forecast period. For example, compared to the Firm's central scenario shown on page 129 and in Note 13, the Firm's relative adverse scenario assumes an elevated U.S. unemployment rate, averaging approximately 2.0% higher over the eight-quarter forecast, with a peak difference of approximately 2.8% in the fourth quarter of 2026.This analysis is not intended to estimate expected future changes in the allowance for credit losses, for a number of reasons, including:•The allowance as of December 31, 2025, reflects credit losses beyond those estimated under the central scenario due to the weight placed on the adverse scenarios.•The impacts of changes in many MEVs are both interrelated and nonlinear, so the results of this losses being driven primarily by a subset of less than twenty variables. The specific variables that have the greatest effect on the modeled losses vary by portfolio and geography. •Key MEVs for the consumer portfolio include regional U.S. unemployment rates and U.S. HPI. •Key MEVs for the wholesale portfolio include U.S. unemployment, U.S. real GDP growth rate, U.S. equity prices, U.S. interest rates, U.S. corporate credit spreads, oil prices, U.S. commercial real estate prices and U.S. HPI. Changes in the Firm's assumptions and forecasts of economic conditions could significantly affect its estimate of expected credit losses in the portfolio at the balance sheet date or lead to significant changes in the estimate from one reporting period to the next. It is difficult to estimate how potential changes in any one factor or input might affect the overall allowance for credit losses because management considers a wide variety of factors and inputs in estimating the allowance for credit losses. Changes in the factors and inputs considered may not occur at the same rate and may not be consistent across all geographies or product types, and changes in factors and inputs may be directionally inconsistent, such that improvement in one factor or input may offset deterioration in others. To consider the impact of a hypothetical alternate macroeconomic forecast, the Firm compared the modeled credit losses determined using its central and relative adverse macroeconomic scenarios, which are two of the five scenarios considered in estimating the allowances for loan losses and lending-related commitments. The central and relative adverse scenarios each included a full suite of MEVs, but differed in the levels, paths and peaks/troughs of those variables over the eight-quarter forecast period. For example, compared to the Firm's central scenario shown on page 129 and in Note 13, the Firm's relative adverse scenario assumes an elevated U.S. unemployment rate, averaging approximately 2.0% higher over the eight-quarter forecast, with a peak difference of approximately 2.8% in the fourth quarter of 2026. This analysis is not intended to estimate expected future changes in the allowance for credit losses, for a number of reasons, including: •The allowance as of December 31, 2025, reflects credit losses beyond those estimated under the central scenario due to the weight placed on the adverse scenarios. •The impacts of changes in many MEVs are both interrelated and nonlinear, so the results of this 154JPMorgan Chase & Co./2025 Form 10-K 154JPMorgan Chase & Co./2025 Form 10-K 154JPMorgan Chase & Co./2025 Form 10-K 154 JPMorgan Chase & Co./2025 Form 10-K analysis cannot be simply extrapolated for more severe changes in macroeconomic variables. •Expectations of future changes in portfolio composition and borrower behavior can significantly affect the allowance for credit losses.To demonstrate the sensitivity of credit loss estimates to macroeconomic forecasts as of December 31, 2025, the Firm compared the modeled estimates under its relative adverse scenario to its central scenario. Without considering offsetting or correlated effects in other qualitative components of the Firm's allowance for credit losses, the comparison between these two scenarios for the exposures below reflect the following differences:•An increase of approximately $1.2 billion for residential real estate loans and lending-related commitments•An increase of approximately $4.4 billion for credit card loans•An increase of approximately $5.1 billion for wholesale loans and lending-related commitmentsThis analysis relates only to the modeled credit loss estimates and is not intended to estimate changes in the overall allowance for credit losses as it does not reflect any potential changes in other adjustments to the quantitative calculation, which would also be influenced by the judgment management applies to the modeled lifetime loss estimates to reflect the uncertainty and imprecision of these modeled lifetime loss estimates based on then-current circumstances and conditions.In the fourth quarter of 2025, the Firm recorded an allowance related to the Apple Card transaction, estimated based on certain forward-looking assumptions of the portfolio's risk characteristics and expected credit losses at the time of closing. The forecasted Apple credit card portfolio is excluded from the modeled estimates sensitivity analysis above while the Firm integrates the Apple Card transaction into its allowance model. Recognizing that forecasts of macroeconomic conditions are inherently uncertain, the Firm believes that its process to consider the available information and associated risks and uncertainties is appropriately governed and that its estimates of expected credit losses were reasonable and appropriate for the year ended December 31, 2025.Fair valueJPMorganChase carries a portion of its assets and liabilities at fair value. The majority of such assets and liabilities are measured at fair value on a recurring basis, including trading assets and liabilities, AFS securities, structured note products and certain securities financing agreements. Certain assets and liabilities are measured at fair value on a nonrecurring basis, including certain mortgage, home equity and other loans, where the carrying value is based on the fair value of the underlying collateral.Assets measured at fair value The following table includes the Firm's assets measured at fair value and the portion of such assets that are classified within level 3 of the fair value hierarchy. Refer to Note 2 for further information.December 31, 2025(in millions, except ratios)Total assets at fair valueTotal level 3 assetsFederal funds sold and securities purchased under resale agreements$327,018 $ - Securities borrowed98,111 - Trading assets: Trading-debt and equity instruments745,096 2,794 Derivative receivables(a)57,777 8,926 Total trading assets802,873 11,720 AFS securities507,198 111 Loans70,684 3,062 MSRs9,167 9,167 Other14,801 1,047 Total assets measured at fair value on a recurring basis1,829,852 25,107 Total assets measured at fair value on a nonrecurring basis2,018 1,392 Total assets measured at fair value $1,831,870 $26,499 Total Firm assets$4,424,900 Level 3 assets at fair value as a percentage of total Firm assets(a)1%Level 3 assets at fair value as a percentage of total Firm assets at fair value(a)1%(a)For purposes of the table above, the derivative receivables total reflects the impact of netting adjustments; however, the $8.9 billion of derivative receivables classified as level 3 does not reflect the netting adjustment as such netting is not relevant to a presentation based on the transparency of inputs to the valuation of an asset. The level 3 balances would be reduced if netting were applied, including the netting benefit associated with cash collateral. analysis cannot be simply extrapolated for more severe changes in macroeconomic variables. •Expectations of future changes in portfolio composition and borrower behavior can significantly affect the allowance for credit losses.To demonstrate the sensitivity of credit loss estimates to macroeconomic forecasts as of December 31, 2025, the Firm compared the modeled estimates under its relative adverse scenario to its central scenario. Without considering offsetting or correlated effects in other qualitative components of the Firm's allowance for credit losses, the comparison between these two scenarios for the exposures below reflect the following differences:•An increase of approximately $1.2 billion for residential real estate loans and lending-related commitments•An increase of approximately $4.4 billion for credit card loans•An increase of approximately $5.1 billion for wholesale loans and lending-related commitmentsThis analysis relates only to the modeled credit loss estimates and is not intended to estimate changes in the overall allowance for credit losses as it does not reflect any potential changes in other adjustments to the quantitative calculation, which would also be influenced by the judgment management applies to the modeled lifetime loss estimates to reflect the uncertainty and imprecision of these modeled lifetime loss estimates based on then-current circumstances and conditions.In the fourth quarter of 2025, the Firm recorded an allowance related to the Apple Card transaction, estimated based on certain forward-looking assumptions of the portfolio's risk characteristics and expected credit losses at the time of closing. The forecasted Apple credit card portfolio is excluded from the modeled estimates sensitivity analysis above while the Firm integrates the Apple Card transaction into its allowance model. Recognizing that forecasts of macroeconomic conditions are inherently uncertain, the Firm believes that its process to consider the available information and associated risks and uncertainties is appropriately governed and that its estimates of expected credit losses were reasonable and appropriate for the year ended December 31, 2025. analysis cannot be simply extrapolated for more severe changes in macroeconomic variables. •Expectations of future changes in portfolio composition and borrower behavior can significantly affect the allowance for credit losses. To demonstrate the sensitivity of credit loss estimates to macroeconomic forecasts as of December 31, 2025, the Firm compared the modeled estimates under its relative adverse scenario to its central scenario. Without considering offsetting or correlated effects in other qualitative components of the Firm's allowance for credit losses, the comparison between these two scenarios for the exposures below reflect the following differences: •An increase of approximately $1.2 billion for residential real estate loans and lending-related commitments •An increase of approximately $4.4 billion for credit card loans •An increase of approximately $5.1 billion for wholesale loans and lending-related commitments This analysis relates only to the modeled credit loss estimates and is not intended to estimate changes in the overall allowance for credit losses as it does not reflect any potential changes in other adjustments to the quantitative calculation, which would also be influenced by the judgment management applies to the modeled lifetime loss estimates to reflect the uncertainty and imprecision of these modeled lifetime loss estimates based on then-current circumstances and conditions. In the fourth quarter of 2025, the Firm recorded an allowance related to the Apple Card transaction, estimated based on certain forward-looking assumptions of the portfolio's risk characteristics and expected credit losses at the time of closing. The forecasted Apple credit card portfolio is excluded from the modeled estimates sensitivity analysis above while the Firm integrates the Apple Card transaction into its allowance model. Recognizing that forecasts of macroeconomic conditions are inherently uncertain, the Firm believes that its process to consider the available information and associated risks and uncertainties is appropriately governed and that its estimates of expected credit losses were reasonable and appropriate for the year ended December 31, 2025. Fair valueJPMorganChase carries a portion of its assets and liabilities at fair value. The majority of such assets and liabilities are measured at fair value on a recurring basis, including trading assets and liabilities, AFS securities, structured note products and certain securities financing agreements. Certain assets and liabilities are measured at fair value on a nonrecurring basis, including certain mortgage, home equity and other loans, where the carrying value is based on the fair value of the underlying collateral.Assets measured at fair value The following table includes the Firm's assets measured at fair value and the portion of such assets that are classified within level 3 of the fair value hierarchy. Refer to Note 2 for further information.December 31, 2025(in millions, except ratios)Total assets at fair valueTotal level 3 assetsFederal funds sold and securities purchased under resale agreements$327,018 $ - Securities borrowed98,111 - Trading assets: Trading-debt and equity instruments745,096 2,794 Derivative receivables(a)57,777 8,926 Total trading assets802,873 11,720 AFS securities507,198 111 Loans70,684 3,062 MSRs9,167 9,167 Other14,801 1,047 Total assets measured at fair value on a recurring basis1,829,852 25,107 Total assets measured at fair value on a nonrecurring basis2,018 1,392 Total assets measured at fair value $1,831,870 $26,499 Total Firm assets$4,424,900 Level 3 assets at fair value as a percentage of total Firm assets(a)1%Level 3 assets at fair value as a percentage of total Firm assets at fair value(a)1%(a)For purposes of the table above, the derivative receivables total reflects the impact of netting adjustments; however, the $8.9 billion of derivative receivables classified as level 3 does not reflect the netting adjustment as such netting is not relevant to a presentation based on the transparency of inputs to the valuation of an asset. The level 3 balances would be reduced if netting were applied, including the netting benefit associated with cash collateral. Fair value JPMorganChase carries a portion of its assets and liabilities at fair value. The majority of such assets and liabilities are measured at fair value on a recurring basis, including trading assets and liabilities, AFS securities, structured note products and certain securities financing agreements. Certain assets and liabilities are measured at fair value on a nonrecurring basis, including certain mortgage, home equity and other loans, where the carrying value is based on the fair value of the underlying collateral. Assets measured at fair value The following table includes the Firm's assets measured at fair value and the portion of such assets that are classified within level 3 of the fair value hierarchy. Refer to Note 2 for further information. December 31, 2025(in millions, except ratios)Total assets at fair valueTotal level 3 assetsFederal funds sold and securities purchased under resale agreements$327,018 $ - Securities borrowed98,111 - Trading assets: Trading-debt and equity instruments745,096 2,794 Derivative receivables(a)57,777 8,926 Total trading assets802,873 11,720 AFS securities507,198 111 Loans70,684 3,062 MSRs9,167 9,167 Other14,801 1,047 Total assets measured at fair value on a recurring basis1,829,852 25,107 Total assets measured at fair value on a nonrecurring basis2,018 1,392 Total assets measured at fair value $1,831,870 $26,499 Total Firm assets$4,424,900 Level 3 assets at fair value as a percentage of total Firm assets(a)1%Level 3 assets at fair value as a percentage of total Firm assets at fair value(a)1% December 31, 2025 (in millions, except ratios) Derivative receivables(a) --- ## Modified Risk: Parts I and II **Key changes:** - Updated: "Cybersecurity.Refer to the Operational Risk Management section of Management's discussion and analysis on pages 146-149 for a discussion of cybersecurity risk.Item 2." - Updated: "Refer to the Consolidated Results of Operations on pages 51-54 for information on occupancy expense.Item 3." - Updated: "Cybersecurity.Refer to the Operational Risk Management section of Management's discussion and analysis on pages 146-149 for a discussion of cybersecurity risk.Item 2." - Updated: "Refer to the Operational Risk Management section of Management's discussion and analysis on pages 146-149 for a discussion of cybersecurity risk." **Prior (2025):** Item 1B. Unresolved Staff Comments.None.Item 1C. Cybersecurity.Refer to the Operational Risk Management section of Management's discussion and analysis on pages 153-156 for a discussion of cybersecurity risk.Item 2. Properties.JPMorganChase's headquarters is located in New York City at 383 Madison Avenue, a 47-story office building that it owns. The demolition of the Firm's former headquarters at 270 Park Avenue in New York City was completed in 2021, and construction of a new headquarters on the same site is nearing completion.The Firm owned or leased facilities in the following locations at December 31, 2024.December 31, 2024(in millions)Approximate square footageUnited States(a)New York City, New York383 Madison Avenue, New York, New York1.1 All other New York City locations6.0 Total New York City, New York7.1 Other U.S. locationsColumbus/Westerville, Ohio3.5 Chicago, Illinois2.7 Dallas/Plano/Fort Worth, Texas2.5 Wilmington/Newark, Delaware2.1 Houston, Texas1.6 Jersey City, New Jersey1.4 Phoenix/Tempe, Arizona1.3 All other U.S. locations33.8 Total United States56.0 Europe, the Middle East and Africa ("EMEA")25 Bank Street, London, U.K.1.4 All other U.K. locations2.3 All other EMEA locations1.5 Total EMEA5.2 Asia-Pacific, Latin America and CanadaIndia6.4 Philippines1.8 All other locations2.8 Total Asia-Pacific, Latin America and Canada11.0 Total72.2 (a)At December 31, 2024, the Firm owned or leased 4,966 branches in 48 states and Washington D.C.The premises and facilities occupied by JPMorganChase are collectively used across all of the Firm's business segments and for corporate purposes. JPMorganChase continues to evaluate its current and projected space requirements and may determine from time to time that certain of its properties (including the premises and facilities noted above) are no longer necessary for its operations. There is no assurance that the Firm will be able to dispose of any such excess properties, premises or facilities, or that it will not incur costs in connection with such dispositions. Such disposition costs may be material to the Firm's results of operations in a given period. Refer to the Consolidated Results of Operations on pages 59-62 for information on occupancy expense.Item 3. Legal Proceedings.Refer to Note 30 for a description of the Firm's material legal proceedings.Item 4. Mine Safety Disclosures.Not applicable. Item 1B. Unresolved Staff Comments.None.Item 1C. Cybersecurity.Refer to the Operational Risk Management section of Management's discussion and analysis on pages 153-156 for a discussion of cybersecurity risk.Item 2. Properties.JPMorganChase's headquarters is located in New York City at 383 Madison Avenue, a 47-story office building that it owns. The demolition of the Firm's former headquarters at 270 Park Avenue in New York City was completed in 2021, and construction of a new headquarters on the same site is nearing completion.The Firm owned or leased facilities in the following locations at December 31, 2024.December 31, 2024(in millions)Approximate square footageUnited States(a)New York City, New York383 Madison Avenue, New York, New York1.1 All other New York City locations6.0 Total New York City, New York7.1 Other U.S. locationsColumbus/Westerville, Ohio3.5 Chicago, Illinois2.7 Dallas/Plano/Fort Worth, Texas2.5 Wilmington/Newark, Delaware2.1 Houston, Texas1.6 Jersey City, New Jersey1.4 Phoenix/Tempe, Arizona1.3 All other U.S. locations33.8 Total United States56.0 Europe, the Middle East and Africa ("EMEA")25 Bank Street, London, U.K.1.4 All other U.K. locations2.3 All other EMEA locations1.5 Total EMEA5.2 Asia-Pacific, Latin America and CanadaIndia6.4 Philippines1.8 All other locations2.8 Total Asia-Pacific, Latin America and Canada11.0 Total72.2 (a)At December 31, 2024, the Firm owned or leased 4,966 branches in 48 states and Washington D.C. Item 1B. Unresolved Staff Comments. None. Item 1C. Cybersecurity. Refer to the Operational Risk Management section of Management's discussion and analysis on pages 153-156 for a discussion of cybersecurity risk. Item 2. Properties. JPMorganChase's headquarters is located in New York City at 383 Madison Avenue, a 47-story office building that it owns. The demolition of the Firm's former headquarters at 270 Park Avenue in New York City was completed in 2021, and construction of a new headquarters on the same site is nearing completion. The Firm owned or leased facilities in the following locations at December 31, 2024. December 31, 2024(in millions)Approximate square footageUnited States(a)New York City, New York383 Madison Avenue, New York, New York1.1 All other New York City locations6.0 Total New York City, New York7.1 Other U.S. locationsColumbus/Westerville, Ohio3.5 Chicago, Illinois2.7 Dallas/Plano/Fort Worth, Texas2.5 Wilmington/Newark, Delaware2.1 Houston, Texas1.6 Jersey City, New Jersey1.4 Phoenix/Tempe, Arizona1.3 All other U.S. locations33.8 Total United States56.0 Europe, the Middle East and Africa ("EMEA")25 Bank Street, London, U.K.1.4 All other U.K. locations2.3 All other EMEA locations1.5 Total EMEA5.2 Asia-Pacific, Latin America and CanadaIndia6.4 Philippines1.8 All other locations2.8 Total Asia-Pacific, Latin America and Canada11.0 Total72.2 **Current (2026):** Item 1B. Unresolved Staff Comments.None.Item 1C. Cybersecurity.Refer to the Operational Risk Management section of Management's discussion and analysis on pages 146-149 for a discussion of cybersecurity risk.Item 2. Properties.JPMorganChase's headquarters is located in New York City at 270 Park Avenue, a 60-story office building owned by the Firm. As of December 31, 2025, the building was fully occupied, including by senior management.The Firm owned or leased facilities in the following locations at December 31, 2025.December 31, 2025(in millions)Approximate square footageUnited States(a)New York City, New York270 Park Avenue, New York, New York2.0 All other New York City locations(b)7.1 Total New York City, New York9.1 Other U.S. locationsColumbus/Westerville, Ohio3.3 Chicago, Illinois2.8 Dallas/Plano/Fort Worth, Texas2.5 Wilmington/Newark, Delaware2.1 Houston, Texas1.5 Jersey City, New Jersey1.5 Phoenix/Tempe, Arizona1.3 All other U.S. locations33.4 Total United States57.5 Europe, the Middle East and Africa ("EMEA")25 Bank Street, London, U.K.1.4 All other U.K. locations2.1 All other EMEA locations1.6 Total EMEA5.1 Asia-Pacific, Latin America and CanadaIndia6.6 Philippines1.7 All other locations3.3 Total Asia-Pacific, Latin America and Canada11.6 Total74.2 (a)At December 31, 2025, the Firm owned or leased 5,083 branches in 48 states and Washington D.C.(b)Includes a 1.1 million square foot office building owned by the Firm that is vacant and undergoing a significant remodeling.The premises and facilities occupied by JPMorganChase are collectively used across all of the Firm's business segments and for corporate purposes. JPMorganChase continues to evaluate its current and projected space requirements and may determine from time to time that certain of its properties (including the premises and facilities noted above) are no longer necessary for its operations. There is no assurance that the Firm will be able to dispose of any such excess properties, premises or facilities, or that it will not incur costs in connection with such dispositions. Such disposition costs may be material to the Firm's results of operations in a given period. Refer to the Consolidated Results of Operations on pages 51-54 for information on occupancy expense.Item 3. Legal Proceedings.Refer to Note 30 for a description of the Firm's material legal proceedings.Item 4. Mine Safety Disclosures.Not applicable. Item 1B. Unresolved Staff Comments.None.Item 1C. Cybersecurity.Refer to the Operational Risk Management section of Management's discussion and analysis on pages 146-149 for a discussion of cybersecurity risk.Item 2. Properties.JPMorganChase's headquarters is located in New York City at 270 Park Avenue, a 60-story office building owned by the Firm. As of December 31, 2025, the building was fully occupied, including by senior management.The Firm owned or leased facilities in the following locations at December 31, 2025.December 31, 2025(in millions)Approximate square footageUnited States(a)New York City, New York270 Park Avenue, New York, New York2.0 All other New York City locations(b)7.1 Total New York City, New York9.1 Other U.S. locationsColumbus/Westerville, Ohio3.3 Chicago, Illinois2.8 Dallas/Plano/Fort Worth, Texas2.5 Wilmington/Newark, Delaware2.1 Houston, Texas1.5 Jersey City, New Jersey1.5 Phoenix/Tempe, Arizona1.3 All other U.S. locations33.4 Total United States57.5 Europe, the Middle East and Africa ("EMEA")25 Bank Street, London, U.K.1.4 All other U.K. locations2.1 All other EMEA locations1.6 Total EMEA5.1 Asia-Pacific, Latin America and CanadaIndia6.6 Philippines1.7 All other locations3.3 Total Asia-Pacific, Latin America and Canada11.6 Total74.2 (a)At December 31, 2025, the Firm owned or leased 5,083 branches in 48 states and Washington D.C.(b)Includes a 1.1 million square foot office building owned by the Firm that is vacant and undergoing a significant remodeling. Item 1B. Unresolved Staff Comments. None. Item 1C. Cybersecurity. Refer to the Operational Risk Management section of Management's discussion and analysis on pages 146-149 for a discussion of cybersecurity risk. Item 2. Properties. JPMorganChase's headquarters is located in New York City at 270 Park Avenue, a 60-story office building owned by the Firm. As of December 31, 2025, the building was fully occupied, including by senior management. The Firm owned or leased facilities in the following locations at December 31, 2025. December 31, 2025(in millions)Approximate square footageUnited States(a)New York City, New York270 Park Avenue, New York, New York2.0 All other New York City locations(b)7.1 Total New York City, New York9.1 Other U.S. locationsColumbus/Westerville, Ohio3.3 Chicago, Illinois2.8 Dallas/Plano/Fort Worth, Texas2.5 Wilmington/Newark, Delaware2.1 Houston, Texas1.5 Jersey City, New Jersey1.5 Phoenix/Tempe, Arizona1.3 All other U.S. locations33.4 Total United States57.5 Europe, the Middle East and Africa ("EMEA")25 Bank Street, London, U.K.1.4 All other U.K. locations2.1 All other EMEA locations1.6 Total EMEA5.1 Asia-Pacific, Latin America and CanadaIndia6.6 Philippines1.7 All other locations3.3 Total Asia-Pacific, Latin America and Canada11.6 Total74.2 --- ## Modified Risk: Geographic composition and current estimated loan-to-value ratio of residential real estate loans **Key changes:** - Updated: "At December 31, 2025, $213.1 billion, or 70%, of the total retained residential real estate loan portfolio, was concentrated in California, New York, Florida, Texas and Massachusetts, compared to $217.7 billion, or 70%, at December 31, 2024." - Updated: "JPMorgan Chase & Co./2025 Form 10-K115 JPMorgan Chase & Co./2025 Form 10-K115 JPMorgan Chase & Co./2025 Form 10-K115 JPMorgan Chase & Co./2025 Form 10-K 115" **Prior (2025):** At December 31, 2024, $217.7 billion, or 70% of the total retained residential real estate loan portfolio, was concentrated in California, New York, Florida, Texas and Massachusetts, compared to $228.4 billion, or 70% at December 31, 2023. Average current estimated loan-to-value ("LTV") ratios have improved, reflecting an increase in home prices. Refer to Note 12 for information on the geographic composition and current estimated LTVs of the Firm's residential real estate loans. JPMorgan Chase & Co./2024 Form 10-K123 JPMorgan Chase & Co./2024 Form 10-K123 JPMorgan Chase & Co./2024 Form 10-K123 JPMorgan Chase & Co./2024 Form 10-K 123 **Current (2026):** At December 31, 2025, $213.1 billion, or 70%, of the total retained residential real estate loan portfolio, was concentrated in California, New York, Florida, Texas and Massachusetts, compared to $217.7 billion, or 70%, at December 31, 2024. Average current estimated loan-to-value ("LTV") ratios were relatively flat compared to December 31, 2024. Refer to Note 12 for information on the geographic composition and current estimated LTVs of the Firm's residential real estate loans. JPMorgan Chase & Co./2025 Form 10-K115 JPMorgan Chase & Co./2025 Form 10-K115 JPMorgan Chase & Co./2025 Form 10-K115 JPMorgan Chase & Co./2025 Form 10-K 115 --- ## Modified Risk: Net amounts **Key changes:** - Updated: "(d)Net derivatives receivable included cash collateral netted of $54.7 billion and $51.9 billion at December 31, 2025 and 2024, respectively." - Updated: "JPMorgan Chase & Co./2025 Form 10-K209 JPMorgan Chase & Co./2025 Form 10-K209 JPMorgan Chase & Co./2025 Form 10-K209 JPMorgan Chase & Co./2025 Form 10-K 209" **Prior (2025):** (a)Exchange-traded derivative balances that relate to futures contracts are settled daily. (b)Includes liquid securities and other cash collateral held at third-party custodians related to derivative instruments where an appropriate legal opinion has been obtained. For some counterparties, the collateral amounts of financial instruments may exceed the derivative receivables and derivative payables balances. Where this is the case, the total amount reported is limited to the net derivative receivables and net derivative payables balances with that counterparty. (c)Derivative collateral relates only to OTC and OTC-cleared derivative instruments. (d)Net derivatives receivable included cash collateral netted of $51.9 billion and $48.3 billion at December 31, 2024 and 2023, respectively. Net derivatives payable included cash collateral netted of $60.8 billion and $70.0 billion at December 31, 2024 and 2023, respectively. Derivative cash collateral relates to OTC and OTC-cleared derivative instruments. 216JPMorgan Chase & Co./2024 Form 10-K 216JPMorgan Chase & Co./2024 Form 10-K 216JPMorgan Chase & Co./2024 Form 10-K 216 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** (a)Exchange-traded derivative balances that relate to futures contracts are settled daily. (b)Includes liquid securities and other cash collateral held at third-party custodians related to derivative instruments where an appropriate legal opinion has been obtained. For some counterparties, the collateral amounts of financial instruments may exceed the derivative receivables and derivative payables balances. Where this is the case, the total amount reported is limited to the net derivative receivables and net derivative payables balances with that counterparty. (c)Derivative collateral relates only to OTC and OTC-cleared derivative instruments. (d)Net derivatives receivable included cash collateral netted of $54.7 billion and $51.9 billion at December 31, 2025 and 2024, respectively. Net derivatives payable included cash collateral netted of $56.5 billion and $60.8 billion at December 31, 2025 and 2024, respectively. Derivative cash collateral relates to OTC and OTC-cleared derivative instruments. JPMorgan Chase & Co./2025 Form 10-K209 JPMorgan Chase & Co./2025 Form 10-K209 JPMorgan Chase & Co./2025 Form 10-K209 JPMorgan Chase & Co./2025 Form 10-K 209 --- ## Modified Risk: Note 24 - Accumulated other comprehensive income/(loss) **Key changes:** - Updated: "Year ended December 31, (in millions)Unrealized gains/(losses) on investment securitiesTranslation adjustments, net of hedgesFair valuehedgesCash flow hedgesDefined benefit pension and OPEB plansDVA on fair value option elected liabilitiesAccumulated other comprehensive income/(loss)Balance at December 31, 2022$(9,124)$(1,545)$(33)$(5,656)$(1,451)$468 $(17,341)Net change5,381 329 (101)1,724 373 (808)6,898 Balance at December 31, 2023$(3,743)(a)$(1,216)$(134)$(3,932)$(1,078)$(340)$(10,443)Net change(87)(858)(87)(882)(63)(36)(2,013)Balance at December 31, 2024$(3,830)(a)$(2,074)$(221)$(4,814)$(1,141)$(376)$(12,456)Net change3,569 1,339 64 3,388 579 (773)8,166 Balance at December 31, 2025$(261)(a)$(735)$(157)$(1,426)$(562)$(1,149)$(4,290) (a) (a) (a) (a)Included after-tax net unamortized unrealized losses of $(240) million, $(651) million, and $(895) million for the years ended 2025, 2024 and 2023, respectively, related to AFS securities that have been transferred to HTM." - Updated: "202520242023Year ended December 31, (in millions)Pre-taxTax effectAfter-taxPre-taxTax effectAfter-taxPre-taxTax effectAfter-taxUnrealized gains/(losses) on investment securities:Net unrealized gains/(losses) arising during the period$4,646 $(1,120)$3,526 $(1,135)$274 $(861)$3,891 $(922)$2,969 Reclassification adjustment for realized (gains)/losses included in net income(a)57 (14)43 1,021 (247)774 3,180 (768)2,412 Net change4,703 (1,134)3,569 (114)27 (87)7,071 (1,690)5,381 Translation adjustments:(b)Translation6,123 (218)5,905 (4,385)250 (4,135)1,714 (95)1,619 Hedges(6,042)1,476 (4,566)4,322 (1,045)3,277 (1,697)407 (1,290)Net change81 1,258 1,339 (63)(795)(858)17 312 329 Fair value hedges, net change(c)84 (20)64 (115)28 (87)(134)33 (101)Cash flow hedges:Net unrealized gains/(losses) arising during the period2,057 (500)1,557 (3,742)904 (2,838)483 (114)369 Reclassification adjustment for realized (gains)/losses included in net income(d)2,406 (575)1,831 2,579 (623)1,956 1,775 (420)1,355 Net change4,463 (1,075)3,388 (1,163)281 (882)2,258 (534)1,724 Defined benefit pension and OPEB plans, net change691 (112)579 (131)68 (63)421 (48)373 DVA on fair value option elected liabilities, net change(1,025)252 (773)(45)9 (36)(1,066)258 (808)Total other comprehensive income/(loss)$8,997 $(831)$8,166 $(1,631)$(382)$(2,013)$8,567 $(1,669)$6,898" **Prior (2025):** AOCI includes the after-tax change in unrealized gains and losses on investment securities, foreign currency translation adjustments (including the impact of related derivatives), fair value changes of excluded components on fair value hedges, cash flow hedging activities, net gain/(loss) related to the Firm's defined benefit pension and OPEB plans, and fair value option-elected liabilities arising from changes in the Firm's own credit risk (DVA). Year ended December 31, (in millions)Unrealized gains/(losses) on investment securitiesTranslation adjustments, net of hedgesFair valuehedgesCash flow hedgesDefined benefit pension and OPEB plansDVA on fair value option elected liabilitiesAccumulated other comprehensive income/(loss)Balance at December 31, 2021$2,640 $(934)$(131)$(296)$(210)$(1,153)$(84)Net change(11,764)(611)98 (5,360)(1,241)1,621 (17,257)Balance at December 31, 2022$(9,124)(a)$(1,545)$(33)$(5,656)$(1,451)$468 $(17,341)Net change5,381 329 (101)1,724 373 (808)6,898 Balance at December 31, 2023$(3,743)(a)$(1,216)$(134)$(3,932)$(1,078)$(340)$(10,443)Net change(87)(858)(87)(882)(63)(36)(2,013)Balance at December 31, 2024$(3,830)(a)$(2,074)$(221)$(4,814)$(1,141)$(376)$(12,456) (a) (a) (a) (a)Included after-tax net unamortized unrealized gains/(losses) of $(651) million, $(895) million, and $(1.3) billion for the years ended 2024, 2023 and 2022, respectively, related to AFS securities that have been transferred to HTM. As of December 31, 2023 included after-tax net unamortized unrealized gains/(losses) of $(29) million related to HTM securities that have been transferred to AFS as permitted by the new hedge accounting guidance adopted on January 1, 2023. Refer to Note 10 for further information. The following table presents the pre-tax and after-tax changes in the components of OCI. 202420232022Year ended December 31, (in millions)Pre-taxTax effectAfter-taxPre-taxTax effectAfter-taxPre-taxTax effectAfter-taxUnrealized gains/(losses) on investment securities:Net unrealized gains/(losses) arising during the period$(1,135)$274 $(861)$3,891 $(922)$2,969 $(17,862)$4,290 $(13,572)Reclassification adjustment for realized (gains)/losses included in net income(a)1,021 (247)774 3,180 (768)2,412 2,380 (572)1,808 Net change(114)27 (87)7,071 (1,690)5,381 (15,482)3,718 (11,764)Translation adjustments(b):Translation(4,385)250 (4,135)1,714 (95)1,619 (3,574)265 (3,309)Hedges4,322 (1,045)3,277 (1,697)407 (1,290)3,553 (855)2,698 Net change(63)(795)(858)17 312 329 (21)(590)(611)Fair value hedges, net change(c)(115)28 (87)(134)33 (101)130 (32)98 Cash flow hedges:Net unrealized gains/(losses) arising during the period(3,742)904 (2,838)483 (114)369 (7,473)1,794 (5,679)Reclassification adjustment for realized (gains)/losses included in net income(d)2,579 (623)1,956 1,775 (420)1,355 420 (101)319 Net change(1,163)281 (882)2,258 (534)1,724 (7,053)1,693 (5,360)Defined benefit pension and OPEB plans, net change(e)(131)68 (63)421 (48)373 (1,459)218 (1,241)DVA on fair value option elected liabilities, net change(45)9 (36)(1,066)258 (808)2,141 (520)1,621 Total other comprehensive income/(loss)$(1,631)$(382)$(2,013)$8,567 $(1,669)$6,898 $(21,744)$4,487 $(17,257) **Current (2026):** AOCI includes the after-tax change in unrealized gains and losses on investment securities, foreign currency translation adjustments (including the impact of related derivatives), fair value changes of excluded components on fair value hedges, cash flow hedging activities, net gain/(loss) related to the Firm's defined benefit pension and OPEB plans, and fair value option-elected liabilities arising from changes in the Firm's own credit risk (DVA). Year ended December 31, (in millions)Unrealized gains/(losses) on investment securitiesTranslation adjustments, net of hedgesFair valuehedgesCash flow hedgesDefined benefit pension and OPEB plansDVA on fair value option elected liabilitiesAccumulated other comprehensive income/(loss)Balance at December 31, 2022$(9,124)$(1,545)$(33)$(5,656)$(1,451)$468 $(17,341)Net change5,381 329 (101)1,724 373 (808)6,898 Balance at December 31, 2023$(3,743)(a)$(1,216)$(134)$(3,932)$(1,078)$(340)$(10,443)Net change(87)(858)(87)(882)(63)(36)(2,013)Balance at December 31, 2024$(3,830)(a)$(2,074)$(221)$(4,814)$(1,141)$(376)$(12,456)Net change3,569 1,339 64 3,388 579 (773)8,166 Balance at December 31, 2025$(261)(a)$(735)$(157)$(1,426)$(562)$(1,149)$(4,290) (a) (a) (a) (a)Included after-tax net unamortized unrealized losses of $(240) million, $(651) million, and $(895) million for the years ended 2025, 2024 and 2023, respectively, related to AFS securities that have been transferred to HTM. As of December 31, 2023, included after-tax net unamortized unrealized losses of $(29) million related to HTM securities that have been transferred to AFS as permitted by the new hedge accounting guidance adopted on January 1, 2023. Refer to Note 10 for further information. The following table presents the pre-tax and after-tax changes in the components of OCI. 202520242023Year ended December 31, (in millions)Pre-taxTax effectAfter-taxPre-taxTax effectAfter-taxPre-taxTax effectAfter-taxUnrealized gains/(losses) on investment securities:Net unrealized gains/(losses) arising during the period$4,646 $(1,120)$3,526 $(1,135)$274 $(861)$3,891 $(922)$2,969 Reclassification adjustment for realized (gains)/losses included in net income(a)57 (14)43 1,021 (247)774 3,180 (768)2,412 Net change4,703 (1,134)3,569 (114)27 (87)7,071 (1,690)5,381 Translation adjustments:(b)Translation6,123 (218)5,905 (4,385)250 (4,135)1,714 (95)1,619 Hedges(6,042)1,476 (4,566)4,322 (1,045)3,277 (1,697)407 (1,290)Net change81 1,258 1,339 (63)(795)(858)17 312 329 Fair value hedges, net change(c)84 (20)64 (115)28 (87)(134)33 (101)Cash flow hedges:Net unrealized gains/(losses) arising during the period2,057 (500)1,557 (3,742)904 (2,838)483 (114)369 Reclassification adjustment for realized (gains)/losses included in net income(d)2,406 (575)1,831 2,579 (623)1,956 1,775 (420)1,355 Net change4,463 (1,075)3,388 (1,163)281 (882)2,258 (534)1,724 Defined benefit pension and OPEB plans, net change691 (112)579 (131)68 (63)421 (48)373 DVA on fair value option elected liabilities, net change(1,025)252 (773)(45)9 (36)(1,066)258 (808)Total other comprehensive income/(loss)$8,997 $(831)$8,166 $(1,631)$(382)$(2,013)$8,567 $(1,669)$6,898 --- ## Modified Risk: Loan modifications **Key changes:** - Updated: "Financial effects of FDMs For the year ended December 31, 2025, retained residential real estate FDMs were $1.0 billion, which included $882 million of FDMs in the form of other-than-insignificant payment deferrals." - Updated: "As of December 31, 2025, additional unfunded commitments to lend to borrowers experiencing financial difficulty whose loans have been modified as FDMs were not material, while there were no additional unfunded commitments as of December 31, 2024.For the years ended December 31, 2025, 2024 and 2023, loans subject to a trial modification, where the terms of the loans have not been permanently modified, and Chapter 7 loans were not material.Payment status of FDMsThe following table provides information on the payment status of retained residential real estate FDMs during the years ended December 31, 2025, 2024 and 2023.Year ended December 31,(in millions)Amortized cost basis202520242023Current$408 $139 $107 30-149 days past due45 47 13 150 or more days past due571 20 16 Total $1,024 $206 $136 Defaults of FDMsDuring the years ended December 31, 2025, 2024 and 2023, defaults of retained residential real estate FDMs that had been modified within twelve months were $83 million, $93 million and not material, respectively." **Prior (2025):** The Firm grants certain modifications of residential real estate loans to borrowers experiencing financial difficulty. The Firm's proprietary modification programs as well as government programs, including U.S. GSE programs, that generally provide various modifications to borrowers experiencing financial difficulty including, but not limited to, interest rate reductions, term extensions, other-than-insignificant payment deferral and principal forgiveness that would otherwise have been required under the terms of the original agreement, are considered FDMs. In addition, the Firm offers trial modifications of residential real estate loans, which generally include a three-month trial payment period during which the borrower makes monthly payments under the proposed modified loan terms. Loans in a trial payment period continue to age and accrue interest in accordance with the original contractual terms. At the completion of a trial period, the loan modification is considered permanent. Financial effects of FDMs For the year ended December 31, 2024, retained residential real estate FDMs were $206 million. The financial effects of the FDMs, which were predominantly in the form of term extensions and interest rate reductions, included extending the weighted-average life of the loans by 15 years, and reducing the weighted-average contractual interest rate from 7.53% to 5.44% for the year ended December 31, 2024. For the year ended December 31, 2023, retained residential real estate FDMs were $136 million. The financial effects of the FDMs, which were predominantly in the form of term extensions and interest rate reductions, included extending the weighted-average life of the loans by 20 years, and reducing the weighted-average contractual interest rate from 7.21% to 4.44% for the year ended December 31, 2023. As of December 31, 2024 and 2023, there were no additional commitments to lend to borrowers experiencing financial difficulty whose loans have been modified as FDMs. For the years ended December 31, 2024 and 2023, loans subject to a trial modification, where the terms of the loans have not been permanently modified, and Chapter 7 loans were not material. Payment status of FDMsThe following table provides information on the payment status of retained residential real estate FDMs during the years ended December 31, 2024 and 2023.Year ended December 31,(in millions)Amortized cost basis20242023Current$139 $107 30-149 days past due47 13 150 or more days past due20 16 Total $206 $136 Defaults of FDMsRetained residential real estate FDMs that defaulted during the year ended December 31, 2024 and that were reported as FDMs in the twelve months prior to the default were $93 million. Retained residential real estate FDMs that defaulted during the year ended December 31, 2023 and that were reported as FDMs on or after January 1, 2023, the date that the Firm adopted the changes to the TDR accounting guidance were not material. Refer to Note 1 for further information. Payment status of FDMs The following table provides information on the payment status of retained residential real estate FDMs during the years ended December 31, 2024 and 2023. Year ended December 31,(in millions)Amortized cost basis20242023Current$139 $107 30-149 days past due47 13 150 or more days past due20 16 Total $206 $136 Year ended December 31, (in millions) Current 30-149 days past due 150 or more days past due Defaults of FDMs Retained residential real estate FDMs that defaulted during the year ended December 31, 2024 and that were reported as FDMs in the twelve months prior to the default were $93 million. Retained residential real estate FDMs that defaulted during the year ended December 31, 2023 and that were reported as FDMs on or after January 1, 2023, the date that the Firm adopted the changes to the TDR accounting guidance were not material. Refer to Note 1 for further information. JPMorgan Chase & Co./2024 Form 10-K251 JPMorgan Chase & Co./2024 Form 10-K251 JPMorgan Chase & Co./2024 Form 10-K251 JPMorgan Chase & Co./2024 Form 10-K 251 **Current (2026):** The Firm grants certain modifications of residential real estate loans to borrowers experiencing financial difficulty. The Firm's proprietary modification programs as well as government programs, including U.S. GSE programs, that generally provide various modifications to borrowers experiencing financial difficulty including, but not limited to, interest rate reductions, term extensions, other-than-insignificant payment deferral and principal forgiveness that would otherwise have been required under the terms of the original agreement, are considered FDMs. In addition, the Firm offers trial modifications of residential real estate loans, which generally include a three-month trial payment period during which the borrower makes monthly payments under the proposed modified loan terms. Loans in a trial payment period continue to age and accrue interest in accordance with the original contractual terms. At the completion of a trial period, the loan modification is considered permanent. Financial effects of FDMs For the year ended December 31, 2025, retained residential real estate FDMs were $1.0 billion, which included $882 million of FDMs in the form of other-than-insignificant payment deferrals. These other-than-insignificant payment deferrals were driven by forbearances granted to certain borrowers impacted by the wildfires in Los Angeles County, California in January 2025 who were granted a second 90-day forbearance arrangement. The financial effects of the remaining FDMs, which were largely in the form of term extensions and interest rate reductions, included extending the weighted-average life of the loans by 19 years, and reducing the weighted-average contractual interest rate from 6.94% to 6.08% for the year ended December 31, 2025. For the year ended December 31, 2024, retained residential real estate FDMs were $206 million. The financial effects of the FDMs, which were predominantly in the form of term extensions and interest rate reductions, included extending the weighted-average life of the loans by 15 years, and reducing the weighted-average contractual interest rate from 7.53% to 5.44% for the year ended December 31, 2024. For the year ended December 31, 2023, retained residential real estate FDMs were $136 million. The financial effects of the FDMs, which were predominantly in the form of term extensions and interest rate reductions, included extending the weighted-average life of the loans by 20 years, and reducing the weighted-average contractual interest rate from 7.21% to 4.44% for the year ended December 31, 2023. As of December 31, 2025, additional unfunded commitments to lend to borrowers experiencing financial difficulty whose loans have been modified as FDMs were not material, while there were no additional unfunded commitments as of December 31, 2024.For the years ended December 31, 2025, 2024 and 2023, loans subject to a trial modification, where the terms of the loans have not been permanently modified, and Chapter 7 loans were not material.Payment status of FDMsThe following table provides information on the payment status of retained residential real estate FDMs during the years ended December 31, 2025, 2024 and 2023.Year ended December 31,(in millions)Amortized cost basis202520242023Current$408 $139 $107 30-149 days past due45 47 13 150 or more days past due571 20 16 Total $1,024 $206 $136 Defaults of FDMsDuring the years ended December 31, 2025, 2024 and 2023, defaults of retained residential real estate FDMs that had been modified within twelve months were $83 million, $93 million and not material, respectively. Active and suspended foreclosure At December 31, 2025 and 2024, the Firm had retained residential real estate loans, excluding those insured by U.S. government agencies, with a carrying value of $575 million and $576 million, respectively, that were not included in REO, but were in the process of active or suspended foreclosure. As of December 31, 2025, additional unfunded commitments to lend to borrowers experiencing financial difficulty whose loans have been modified as FDMs were not material, while there were no additional unfunded commitments as of December 31, 2024. For the years ended December 31, 2025, 2024 and 2023, loans subject to a trial modification, where the terms of the loans have not been permanently modified, and Chapter 7 loans were not material. Payment status of FDMs The following table provides information on the payment status of retained residential real estate FDMs during the years ended December 31, 2025, 2024 and 2023. Year ended December 31,(in millions)Amortized cost basis202520242023Current$408 $139 $107 30-149 days past due45 47 13 150 or more days past due571 20 16 Total $1,024 $206 $136 Year ended December 31, (in millions) Current 30-149 days past due 150 or more days past due Defaults of FDMs During the years ended December 31, 2025, 2024 and 2023, defaults of retained residential real estate FDMs that had been modified within twelve months were $83 million, $93 million and not material, respectively. --- ## Modified Risk: Valuation adjustments on fair value option elected liabilities **Key changes:** - Updated: "Refer to page 189 in this Note and Note 24 for further information." **Prior (2025):** The valuation of the Firm's liabilities for which the fair value option has been elected requires consideration of the Firm's own credit risk. DVA on fair value option elected liabilities reflects changes (subsequent to the issuance of the liability) in the Firm's probability of default and LGD, which are estimated based on changes in the Firm's credit spread observed in the bond market. Realized (gains)/losses due to DVA for fair value option elected liabilities are reported in principal transactions revenue. Unrealized (gains)/losses are reported in OCI. Refer to page 196 in this Note and Note 24 for further information. 198JPMorgan Chase & Co./2024 Form 10-K 198JPMorgan Chase & Co./2024 Form 10-K 198JPMorgan Chase & Co./2024 Form 10-K 198 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** The valuation of the Firm's liabilities for which the fair value option has been elected requires consideration of the Firm's own credit risk. DVA on fair value option elected liabilities reflects changes (subsequent to the issuance of the liability) in the Firm's probability of default and LGD, which are estimated based on changes in the Firm's credit spread observed in the bond market. Realized (gains)/losses due to DVA for fair value option elected liabilities are reported in principal transactions revenue. Unrealized (gains)/losses are reported in OCI. Refer to page 189 in this Note and Note 24 for further information. JPMorgan Chase & Co./2025 Form 10-K191 JPMorgan Chase & Co./2025 Form 10-K191 JPMorgan Chase & Co./2025 Form 10-K191 JPMorgan Chase & Co./2025 Form 10-K 191 --- ## Modified Risk: Management's discussion and analysis **Key changes:** - Updated: "RWA rollforward RWA rollforward RWA rollforward The following table presents changes in the components of RWA under Standardized and Advanced approaches for the year ended December 31, 2025." - Updated: "StandardizedAdvancedYear ended December 31, 2025(in millions)Credit risk RWA(c)Market risk RWATotal RWACredit risk RWA(c)(d)Market risk RWAOperational risk RWATotal RWADecember 31, 2024$1,672,763 $84,697 $1,757,460 $1,218,005 $85,132 $437,292 $1,740,429 Model & data changes(a)(3,505)(4,128)(7,633)(2,862)(4,128) - (6,990)Movement in portfolio levels(b)220,151 11,714 231,865 278,662 11,994 21,154 311,810 Changes in RWA216,646 7,586 224,232 275,800 7,866 21,154 304,820 December 31, 2025$1,889,409 $92,283 $1,981,692 $1,493,805 $92,998 $458,446 $2,045,249 Credit risk RWA(c) Credit risk RWA(c)(d) Model & data changes(a) Movement in portfolio levels(b) (a)Model & data changes refer to material movements in levels of RWA as a result of revised methodologies and/or treatment per regulatory guidance (exclusive of rule changes)." - Updated: "Supplementary leverage ratio The following table presents the components of the Firm's SLR.Three months ended(in millions, except ratio)December 31,2025December 31,2024Tier 1 capital$307,630 $294,881 Total average assets4,529,418 4,125,167 Less: Regulatory capital adjustments(a)57,024 54,668 Total adjusted average assets(b)4,472,394 4,070,499 Add: Off-balance sheet exposures(c)829,607 767,069 Total leverage exposure$5,302,001 $4,837,568 SLR5.8 %6.1 %(a)For purposes of calculating the SLR, includes quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 capital, predominantly goodwill (inclusive of estimated equity method goodwill) and other intangible assets." - Updated: "The Firm's current equity allocation methodology incorporates Standardized RWA and the GSIB surcharge, both under rules currently in effect, as well as a simulation of capital depletion in a severe stress environment." - Updated: "As of January 1, 2026, changes to the Firm's capital allocations are primarily a result of updates to the Firm's current capital requirements and changes in RWA for each LOB under rules currently in effect." **Prior (2025):** RWA rollforward RWA rollforward RWA rollforward The following table presents changes in the components of RWA under Basel III Standardized and Advanced approaches for the year ended December 31, 2024. The amounts in the rollforward categories are estimates, based on the predominant driver of the change. StandardizedAdvancedYear ended December 31, 2024(in millions)Credit risk RWA(c)Market risk RWATotal RWACredit risk RWA(c)(d)Market risk RWAOperational risk RWATotal RWADecember 31, 2023$1,603,851 $68,144 $1,671,995 $1,155,261 $68,603 $445,292 $1,669,156 Model & data changes(a)4,743 (366)4,377 4,811 (366) - 4,445 Movement in portfolio levels(b)64,169 16,919 81,088 57,933 16,895 (8,000)66,828 Changes in RWA68,912 16,553 85,465 62,744 16,529 (8,000)71,273 December 31, 2024$1,672,763 $84,697 $1,757,460 $1,218,005 $85,132 $437,292 $1,740,429 Credit risk RWA(c) Credit risk RWA(c)(d) Model & data changes(a) Movement in portfolio levels(b) (a)Model & data changes refer to material movements in levels of RWA as a result of revised methodologies and/or treatment per regulatory guidance (exclusive of rule changes). (b)Movement in portfolio levels (inclusive of rule changes) refers to: for Credit risk RWA, changes in book size, changes in composition and credit quality, market movements, and deductions for excess eligible allowances for credit losses not eligible for inclusion in Tier 2 capital; for Market risk RWA, changes in position and market movements; and for Operational risk RWA, updates to cumulative losses and macroeconomic model inputs. (c)As of December 31, 2024 and 2023, the Basel III Standardized Credit risk RWA included wholesale and retail off balance-sheet RWA of $208.0 billion and $208.5 billion, respectively; and the Basel III Advanced Credit risk RWA included wholesale and retail off balance-sheet RWA of $192.1 billion and $188.5 billion, respectively. (d)As of December 31, 2024 and 2023, Credit risk RWA reflected approximately $43.3 billion and $52.4 billion, respectively, of RWA calculated under the Standardized approach for certain assets associated with First Republic as permitted by the transition provisions in the U.S. capital rules. Refer to the Firm's Pillar 3 Regulatory Capital Disclosures reports, which are available on the Firm's website, for further information on Credit risk RWA, Market risk RWA and Operational risk RWA. Supplementary leverage ratio The following table presents the components of the Firm's SLR.Three months ended(in millions, except ratio)December 31,2024December 31,2023Tier 1 capital$294,881 $277,306 Total average assets4,125,167 3,885,632 Less: Regulatory capital adjustments(a)54,668 54,432 Total adjusted average assets(b)4,070,499 3,831,200 Add: Off-balance sheet exposures(c)767,069 709,265 Total leverage exposure$4,837,568 $4,540,465 SLR6.1 %6.1 %(a)For purposes of calculating the SLR, includes quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 capital, predominantly goodwill, inclusive of estimated equity method goodwill, other intangible assets and adjustments for the CECL capital transition provisions. Refer to Note 27 for additional information on the CECL capital transition.(b)Adjusted average assets used for the calculation of Tier 1 leverage ratio. (c)Off-balance sheet exposures are calculated as the average of the three month-end spot balances on applicable regulatory exposures during the reporting quarter. Refer to the Firm's Pillar 3 Regulatory Capital Disclosures reports for additional information.Line of business and Corporate equity Each LOB and Corporate is allocated capital by taking into consideration a variety of factors including capital levels of similarly rated peers and applicable regulatory capital requirements. ROE is measured and internal targets for expected returns are established as key measures of an LOB's performance. The Firm's current equity allocation methodology incorporates Basel III Standardized RWA and the GSIB surcharge, both under rules currently in effect, as well as a simulation of capital depletion in a severe stress environment. At least annually, the assumptions, judgments and methodologies used to allocate capital are reassessed and, as a result, the capital allocated to the LOBs and Corporate may change. As of January 1, 2025, changes to the Firm's capital allocations are primarily a result of updates to the Firm's current capital requirements and changes in RWA for each LOB under rules currently in effect. Any capital that the Firm has accumulated in excess of these current requirements, including the capital required to meet the potential increased requirements of the U.S. Basel III proposal, has been retained in Corporate in addition to its allocated balance. The following table presents the capital allocated to each LOB and Corporate. December 31,(in billions)January 1, 202520242023Consumer & Community Banking$56.0 $54.5 $55.5 Commercial & Investment Bank149.5 132.0 138.0 Asset & Wealth Management16.0 15.5 17.0 Corporate103.2 122.7 90.0 Total common stockholders' equity$324.7 $324.7 $300.5 Supplementary leverage ratio The following table presents the components of the Firm's SLR.Three months ended(in millions, except ratio)December 31,2024December 31,2023Tier 1 capital$294,881 $277,306 Total average assets4,125,167 3,885,632 Less: Regulatory capital adjustments(a)54,668 54,432 Total adjusted average assets(b)4,070,499 3,831,200 Add: Off-balance sheet exposures(c)767,069 709,265 Total leverage exposure$4,837,568 $4,540,465 SLR6.1 %6.1 %(a)For purposes of calculating the SLR, includes quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 capital, predominantly goodwill, inclusive of estimated equity method goodwill, other intangible assets and adjustments for the CECL capital transition provisions. Refer to Note 27 for additional information on the CECL capital transition.(b)Adjusted average assets used for the calculation of Tier 1 leverage ratio. (c)Off-balance sheet exposures are calculated as the average of the three month-end spot balances on applicable regulatory exposures during the reporting quarter. Refer to the Firm's Pillar 3 Regulatory Capital Disclosures reports for additional information.Line of business and Corporate equity Each LOB and Corporate is allocated capital by taking into consideration a variety of factors including capital levels of similarly rated peers and applicable regulatory capital requirements. ROE is measured and internal targets for expected returns are established as key measures of an LOB's performance. Supplementary leverage ratio The following table presents the components of the Firm's SLR. Three months ended(in millions, except ratio)December 31,2024December 31,2023Tier 1 capital$294,881 $277,306 Total average assets4,125,167 3,885,632 Less: Regulatory capital adjustments(a)54,668 54,432 Total adjusted average assets(b)4,070,499 3,831,200 Add: Off-balance sheet exposures(c)767,069 709,265 Total leverage exposure$4,837,568 $4,540,465 SLR6.1 %6.1 % Three months ended (in millions, except ratio) **Current (2026):** RWA rollforward RWA rollforward RWA rollforward The following table presents changes in the components of RWA under Standardized and Advanced approaches for the year ended December 31, 2025. The amounts in the rollforward categories are estimates, based on the predominant driver of the change. StandardizedAdvancedYear ended December 31, 2025(in millions)Credit risk RWA(c)Market risk RWATotal RWACredit risk RWA(c)(d)Market risk RWAOperational risk RWATotal RWADecember 31, 2024$1,672,763 $84,697 $1,757,460 $1,218,005 $85,132 $437,292 $1,740,429 Model & data changes(a)(3,505)(4,128)(7,633)(2,862)(4,128) - (6,990)Movement in portfolio levels(b)220,151 11,714 231,865 278,662 11,994 21,154 311,810 Changes in RWA216,646 7,586 224,232 275,800 7,866 21,154 304,820 December 31, 2025$1,889,409 $92,283 $1,981,692 $1,493,805 $92,998 $458,446 $2,045,249 Credit risk RWA(c) Credit risk RWA(c)(d) Model & data changes(a) Movement in portfolio levels(b) (a)Model & data changes refer to material movements in levels of RWA as a result of revised methodologies and/or treatment per regulatory guidance (exclusive of rule changes). (b)Movement in portfolio levels (inclusive of rule changes) refers to: for Credit risk RWA, changes in book size, including the impact of the Apple Card transaction, changes in composition and credit quality, market movements, and deductions for excess eligible allowances for credit losses not eligible for inclusion in Tier 2 capital; for Market risk RWA, changes in position and market movements; and for Operational risk RWA, updates to cumulative losses, macroeconomic model inputs, and other model parameters. (c)As of December 31, 2025 and 2024, the Standardized Credit risk RWA included wholesale and retail off balance-sheet RWA of $268.5 billion and $208.0 billion, respectively; and the Advanced Credit risk RWA included wholesale and retail off balance-sheet RWA of $223.0 billion and $192.1 billion, respectively. (d)As of December 31, 2025 and 2024, Credit risk RWA reflected approximately $37.4 billion and $43.3 billion, respectively, of RWA calculated under the Standardized approach for certain assets associated with First Republic as permitted by the transition provisions in the U.S. capital rules. Refer to the Firm's Pillar 3 Regulatory Capital Disclosures reports, which are available on the Firm's website, for further information on Credit risk RWA, Market risk RWA and Operational risk RWA. Supplementary leverage ratio The following table presents the components of the Firm's SLR.Three months ended(in millions, except ratio)December 31,2025December 31,2024Tier 1 capital$307,630 $294,881 Total average assets4,529,418 4,125,167 Less: Regulatory capital adjustments(a)57,024 54,668 Total adjusted average assets(b)4,472,394 4,070,499 Add: Off-balance sheet exposures(c)829,607 767,069 Total leverage exposure$5,302,001 $4,837,568 SLR5.8 %6.1 %(a)For purposes of calculating the SLR, includes quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 capital, predominantly goodwill (inclusive of estimated equity method goodwill) and other intangible assets. As of January 1, 2025, the benefit from the CECL capital transition provision had been fully phased out. The year ended December 31, 2024 included adjustments for the CECL capital transition provisions. Refer to Note 27 for additional information on the CECL capital transition.(b)Adjusted average assets used for the calculation of Tier 1 leverage ratio. (c)Off-balance sheet exposures are calculated as the average of the three month-end spot balances on applicable regulatory exposures during the reporting quarter. Refer to the Firm's Pillar 3 Regulatory Capital Disclosures reports for additional information.Line of business and Corporate equity Each LOB and Corporate is allocated capital by taking into consideration a variety of factors including capital levels of similarly rated peers and applicable regulatory capital requirements. ROE is measured and internal targets for expected returns are established as key measures of an LOB's performance. The Firm's current equity allocation methodology incorporates Standardized RWA and the GSIB surcharge, both under rules currently in effect, as well as a simulation of capital depletion in a severe stress environment. At least annually, the assumptions, judgments and methodologies used to allocate capital are reassessed and, as a result, the capital allocated to the LOBs and Corporate may change. As of January 1, 2026, changes to the Firm's capital allocations are primarily a result of updates to the Firm's current capital requirements and changes in RWA for each LOB under rules currently in effect. Any capital that the Firm has accumulated in excess of these current requirements, including the capital required to meet the potential increased requirements of the U.S. Basel III proposal, has been retained in Corporate in addition to its allocated balance. The following table presents the capital allocated to each LOB and Corporate. December 31,(in billions)January 1, 202620252024Consumer & Community Banking$61.5 $56.0 $54.5 Commercial & Investment Bank166.5 149.5 132.0 Asset & Wealth Management16.0 16.0 15.5 Corporate98.4 120.9 122.7 Total common stockholders' equity$342.4 $342.4 $324.7 Supplementary leverage ratio The following table presents the components of the Firm's SLR.Three months ended(in millions, except ratio)December 31,2025December 31,2024Tier 1 capital$307,630 $294,881 Total average assets4,529,418 4,125,167 Less: Regulatory capital adjustments(a)57,024 54,668 Total adjusted average assets(b)4,472,394 4,070,499 Add: Off-balance sheet exposures(c)829,607 767,069 Total leverage exposure$5,302,001 $4,837,568 SLR5.8 %6.1 %(a)For purposes of calculating the SLR, includes quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 capital, predominantly goodwill (inclusive of estimated equity method goodwill) and other intangible assets. As of January 1, 2025, the benefit from the CECL capital transition provision had been fully phased out. The year ended December 31, 2024 included adjustments for the CECL capital transition provisions. Refer to Note 27 for additional information on the CECL capital transition.(b)Adjusted average assets used for the calculation of Tier 1 leverage ratio. (c)Off-balance sheet exposures are calculated as the average of the three month-end spot balances on applicable regulatory exposures during the reporting quarter. Refer to the Firm's Pillar 3 Regulatory Capital Disclosures reports for additional information.Line of business and Corporate equity Each LOB and Corporate is allocated capital by taking into consideration a variety of factors including capital levels of similarly rated peers and applicable regulatory capital requirements. ROE is measured and Supplementary leverage ratio The following table presents the components of the Firm's SLR. Three months ended(in millions, except ratio)December 31,2025December 31,2024Tier 1 capital$307,630 $294,881 Total average assets4,529,418 4,125,167 Less: Regulatory capital adjustments(a)57,024 54,668 Total adjusted average assets(b)4,472,394 4,070,499 Add: Off-balance sheet exposures(c)829,607 767,069 Total leverage exposure$5,302,001 $4,837,568 SLR5.8 %6.1 % Less: Regulatory capital adjustments(a) Total adjusted average assets(b) Add: Off-balance sheet exposures(c) (a)For purposes of calculating the SLR, includes quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 capital, predominantly goodwill (inclusive of estimated equity method goodwill) and other intangible assets. As of January 1, 2025, the benefit from the CECL capital transition provision had been fully phased out. The year ended December 31, 2024 included adjustments for the CECL capital transition provisions. Refer to Note 27 for additional information on the CECL capital transition. (b)Adjusted average assets used for the calculation of Tier 1 leverage ratio. (c)Off-balance sheet exposures are calculated as the average of the three month-end spot balances on applicable regulatory exposures during the reporting quarter. Refer to the Firm's Pillar 3 Regulatory Capital Disclosures reports for additional information. --- ## Modified Risk: Total liabilities(a) **Key changes:** - Updated: "Preferred stock ($1 par value; authorized 200,000,000 shares: issued 2,005,375 and 2,005,375 shares) Common stock ($1 par value; authorized 9,000,000,000 shares; issued 4,104,933,895 shares) Treasury stock, at cost (1,408,661,319 and 1,307,313,494 shares) (a)The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at December 31, 2025 and 2024." - Updated: "The holders of the beneficial interests generally do not have recourse to the general credit of JPMorganChase." - Updated: "The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at December 31, 2025 and 2024." - Updated: "The holders of the beneficial interests generally do not have recourse to the general credit of JPMorganChase." - Updated: "December 31, (in millions)20252024AssetsTrading assets$4,835 $3,885 Loans37,777 36,510 All other assets683 681 Total assets$43,295 $41,076 LiabilitiesBeneficial interests issued by consolidated VIEs$27,951 $27,323 All other liabilities691 454 Total liabilities$28,642 $27,777 The Notes to Consolidated Financial Statements are an integral part of these statements." **Prior (2025):** Preferred stock ($1 par value; authorized 200,000,000 shares: issued 2,005,375 and 2,740,375 shares) Common stock ($1 par value; authorized 9,000,000,000 shares; issued 4,104,933,895 shares) Treasury stock, at cost (1,307,313,494 and 1,228,275,301 shares) (a)The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at December 31, 2024 and 2023. The assets of the consolidated VIEs are used to settle the liabilities of those entities. The holders of the beneficial interests do not have recourse to the general credit of JPMorganChase. The assets and liabilities in the table below include third-party assets and liabilities of consolidated VIEs and exclude intercompany balances that eliminate in consolidation. Refer to Note 14 for a further discussion. The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at December 31, 2024 and 2023. The assets of the consolidated VIEs are used to settle the liabilities of those entities. The holders of the beneficial interests do not have recourse to the general credit of JPMorganChase. The assets and liabilities in the table below include third-party assets and liabilities of consolidated VIEs and exclude intercompany balances that eliminate in consolidation. Refer to Note 14 for a further discussion. December 31, (in millions)20242023AssetsTrading assets$3,885 $2,170 Loans36,510 37,611 All other assets681 591 Total assets$41,076 $40,372 LiabilitiesBeneficial interests issued by consolidated VIEs$27,323 $23,020 All other liabilities454 263 Total liabilities$27,777 $23,283 The Notes to Consolidated Financial Statements are an integral part of these statements. 174JPMorgan Chase & Co./2024 Form 10-K 174JPMorgan Chase & Co./2024 Form 10-K 174JPMorgan Chase & Co./2024 Form 10-K 174 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** Preferred stock ($1 par value; authorized 200,000,000 shares: issued 2,005,375 and 2,005,375 shares) Common stock ($1 par value; authorized 9,000,000,000 shares; issued 4,104,933,895 shares) Treasury stock, at cost (1,408,661,319 and 1,307,313,494 shares) (a)The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at December 31, 2025 and 2024. The assets of the consolidated VIEs are used to settle the liabilities of those entities. The holders of the beneficial interests generally do not have recourse to the general credit of JPMorganChase. The assets and liabilities in the table below include third-party assets and liabilities of consolidated VIEs and exclude intercompany balances that eliminate in consolidation. Refer to Note 14 for a further discussion. The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at December 31, 2025 and 2024. The assets of the consolidated VIEs are used to settle the liabilities of those entities. The holders of the beneficial interests generally do not have recourse to the general credit of JPMorganChase. The assets and liabilities in the table below include third-party assets and liabilities of consolidated VIEs and exclude intercompany balances that eliminate in consolidation. Refer to Note 14 for a further discussion. December 31, (in millions)20252024AssetsTrading assets$4,835 $3,885 Loans37,777 36,510 All other assets683 681 Total assets$43,295 $41,076 LiabilitiesBeneficial interests issued by consolidated VIEs$27,951 $27,323 All other liabilities691 454 Total liabilities$28,642 $27,777 The Notes to Consolidated Financial Statements are an integral part of these statements. JPMorgan Chase & Co./2025 Form 10-K167 JPMorgan Chase & Co./2025 Form 10-K167 JPMorgan Chase & Co./2025 Form 10-K167 JPMorgan Chase & Co./2025 Form 10-K 167 --- ## Modified Risk: Consolidated cash flows analysis **Key changes:** - Updated: "The following is a discussion of cash flow activities during the years ended December 31, 2025 and 2024." **Prior (2025):** The following is a discussion of cash flow activities during the years ended December 31, 2024 and 2023. Refer to Consolidated cash flows analysis on page 61 of the Firm's 2023 Form 10-K for a discussion of the 2022 activities. (in millions)Year ended December 31,202420232022Net cash provided by/(used in)Operating activities$(42,012)$12,974 $107,119 Investing activities(163,403)67,643 (137,819)Financing activities63,447 (25,571)(126,257)Effect of exchange rate changes on cash(12,866)1,871 (16,643)Net increase/(decrease) in cash and due from banks and deposits with banks$(154,834)$56,917 $(173,600) Net cash provided by/ (used in) Financing activities Effect of exchange rate changes on cash Net increase/(decrease) in cash and due from banks and deposits with banks **Current (2026):** The following is a discussion of cash flow activities during the years ended December 31, 2025 and 2024. Refer to Consolidated cash flows analysis on page 66 of the Firm's 2024 Form 10-K for a discussion of the 2023 activities. (in millions)Year ended December 31,202520242023Net cash provided by/(used in)Operating activities$(147,782)$(42,012)$12,974 Investing activities(265,565)(163,403)67,643 Financing activities269,533 63,447 (25,571)Effect of exchange rate changes on cash17,835 (12,866)1,871 Net increase/(decrease) in cash and due from banks and deposits with banks$(125,979)$(154,834)$56,917 Net cash provided by/ (used in) Financing activities Effect of exchange rate changes on cash Net increase/(decrease) in cash and due from banks and deposits with banks --- ## Modified Risk: Net yield on average interest-earning assets excluding Markets **Key changes:** - Updated: "Noninterest revenue - reported$87,004 $84,973 (c)$68,837 Fully taxable-equivalent adjustments2,709 2,560 (c)3,782 Noninterest revenue - managed basis$89,713 $87,533 $72,619 Less: Markets noninterest revenue(b)32,505 29,366 28,258 Noninterest revenue excluding Markets$57,208 $58,167 $44,361 Memo: Total Markets net revenue(b)$35,782 $30,007 $27,964 (c) Fully taxable-equivalent adjustments (c) Less: Markets noninterest revenue(b)" **Prior (2025):** Noninterest revenue - reported(c)$84,973 $68,837 $61,985 Fully taxable-equivalent adjustments(c)2,560 3,782 3,148 Noninterest revenue - managed basis$87,533 $72,619 $65,133 Less: Markets noninterest revenue(b)(d)29,366 28,258 24,373 Noninterest revenue excluding Markets$58,167 $44,361 $40,760 Memo: Total Markets net revenue(b)$30,007 $27,964 $29,162 **Current (2026):** Noninterest revenue - reported$87,004 $84,973 (c)$68,837 Fully taxable-equivalent adjustments2,709 2,560 (c)3,782 Noninterest revenue - managed basis$89,713 $87,533 $72,619 Less: Markets noninterest revenue(b)32,505 29,366 28,258 Noninterest revenue excluding Markets$57,208 $58,167 $44,361 Memo: Total Markets net revenue(b)$35,782 $30,007 $27,964 (c) Fully taxable-equivalent adjustments (c) Less: Markets noninterest revenue(b) --- ## Modified Risk: Contractual maturities and yields **Key changes:** - Updated: "The following table presents the amortized cost and estimated fair value at December 31, 2025, of JPMorganChase's investment securities portfolio by contractual maturity." - Updated: "(b)For purposes of this table, the amortized cost of available-for-sale securities excludes the allowance for credit losses of $41 million and the portfolio layer fair value hedge basis adjustments of $641 million at December 31, 2025." - Updated: "The estimated weighted-average life, which reflects anticipated future prepayments, is approximately seven years for agency residential MBS, six years for agency residential collateralized mortgage obligations, and four years for nonagency residential collateralized mortgage obligations." **Prior (2025):** The following table presents the amortized cost and estimated fair value at December 31, 2024, of JPMorganChase's investment securities portfolio by contractual maturity. By remaining maturityDecember 31, 2024 (in millions)Due in one year or lessDue after one year through five yearsDue after five years through 10 yearsDue after 10 years(c)TotalAvailable-for-sale securitiesMortgage-backed securitiesAmortized cost$132 $9,410 $4,059 $91,027 $104,628 Fair value130 9,345 4,041 87,253 100,769 Average yield(a)3.32 %4.58 %5.25 %4.75 %4.75 %U.S. Treasury and government agenciesAmortized cost$20,685 $169,162 $38,667 $6,981 $235,495 Fair value20,730 169,145 38,619 6,285 234,779 Average yield(a)4.50 %4.57 %4.96 %5.53 %4.65 %Obligations of U.S. states and municipalitiesAmortized cost$4 $16 $92 $18,225 $18,337 Fair value4 16 90 17,803 17,913 Average yield(a)1.59 %3.95 %4.46 %5.32 %5.32 %Non-U.S. government debt securitiesAmortized cost$13,331 $11,769 $7,609 $3,946 $36,655 Fair value13,327 11,701 7,403 3,814 36,245 Average yield(a)4.24 %4.32 %2.82 %4.15 %3.96 %Corporate debt securitiesAmortized cost$106 $9 $5 $ - $120 Fair value57 9 4 - 70 Average yield(a)14.09 %4.06 %4.19 % - %12.92 %Asset-backed securitiesAmortized cost$ - $368 $1,609 $15,035 $17,012 Fair value - 370 1,619 15,087 17,076 Average yield(a) - %6.14 %6.04 %5.96 %5.97 %Total available-for-sale securitiesAmortized cost(b)$34,258 $190,734 $52,041 $135,214 $412,247 Fair value34,248 190,586 51,776 130,242 406,852 Average yield(a)4.42 %4.56 %4.70 %4.98 %4.70 %Held-to-maturity securitiesMortgage-backed securitiesAmortized cost$104 $7,994 $6,077 $100,495 $114,670 Fair value101 7,453 5,352 86,903 99,809 Average yield(a)0.97 %2.63 %2.67 %2.95 %2.92 %U.S. Treasury and government agenciesAmortized cost$20,083 $40,497 $48,052 $ - $108,632 Fair value19,500 37,715 40,205 - 97,420 Average yield(a)0.43 %1.23 %1.25 % - %1.09 %Obligations of U.S. states and municipalitiesAmortized cost$ - $9 $307 $9,026 $9,342 Fair value - 9 276 8,426 8,711 Average yield(a) - %4.76 %3.25 %3.97 %3.95 %Asset-backed securitiesAmortized cost$ - $134 $22,433 $19,360 $41,927 Fair value - 134 22,466 19,360 41,960 Average yield(a) - %5.94 %5.57 %5.73 %5.65 %Total held-to-maturity securitiesAmortized cost(b)$20,187 $48,634 $76,869 $128,881 $274,571 Fair value19,601 45,311 68,299 114,689 247,900 Average yield(a)0.43 %1.47 %2.63 %3.44 %2.64 % Due after 10 years(c) Average yield(a) Average yield(a) Average yield(a) Average yield(a) Average yield(a) Average yield(a) Amortized cost(b) Average yield(a) Average yield(a) Average yield(a) Average yield(a) Average yield(a) Amortized cost(b) Average yield(a) (a)Average yield is computed using the effective yield of each security owned at the end of the period, weighted based on the amortized cost of each security. The effective yield considers the contractual coupon, amortization of premiums and accretion of discounts, and the effect of related hedging derivatives, including closed portfolio hedges. Taxable-equivalent amounts are used where applicable. The effective yield excludes unscheduled principal prepayments; and accordingly, actual maturities of securities may differ from their contractual or expected maturities as certain securities may be prepaid. However, for certain callable debt securities, the average yield is calculated to the earliest call date. (b)For purposes of this table, the amortized cost of available-for-sale securities excludes the allowance for credit losses of $49 million and the portfolio layer fair value hedge basis adjustments of $(1.2) billion at December 31, 2024. The amortized cost of held-to-maturity securities also excludes the allowance for credit losses of $103 million at December 31, 2024. (c)Substantially all of the Firm's U.S. residential MBS and collateralized mortgage obligations are due in 10 years or more, based on contractual maturity. The estimated weighted-average life, which reflects anticipated future prepayments, is approximately eight years for agency residential MBS, six years for agency residential collateralized mortgage obligations, and five years for nonagency residential collateralized mortgage obligations. JPMorgan Chase & Co./2024 Form 10-K239 JPMorgan Chase & Co./2024 Form 10-K239 JPMorgan Chase & Co./2024 Form 10-K239 JPMorgan Chase & Co./2024 Form 10-K 239 **Current (2026):** The following table presents the amortized cost and estimated fair value at December 31, 2025, of JPMorganChase's investment securities portfolio by contractual maturity. By remaining maturityDecember 31, 2025 (in millions)Due in one year or lessDue after one year through five yearsDue after five years through 10 yearsDue after 10 years(c)TotalAvailable-for-sale securitiesMortgage-backed securitiesAmortized cost$986 $12,032 $5,186 $84,351 $102,555 Fair value978 12,215 5,258 82,996 101,447 Average yield(a)2.79 %4.58 %4.62 %4.56 %4.55 %U.S. Treasury and government agenciesAmortized cost$37,727 $224,284 $45,128 $6,331 $313,470 Fair value37,869 225,962 45,529 6,462 315,822 Average yield(a)4.17 %4.04 %4.20 %4.58 %4.09 %Obligations of U.S. states and municipalitiesAmortized cost$ - $21 $138 $20,756 $20,915 Fair value - 21 133 20,086 20,240 Average yield(a) - %3.95 %3.89 %5.11 %5.10 %Non-U.S. government debt securitiesAmortized cost$10,838 $21,233 $11,769 $1,836 $45,676 Fair value10,848 21,305 11,719 1,783 45,655 Average yield(a)3.51 %4.03 %3.53 %3.21 %3.75 %Corporate debt securitiesAmortized cost$49 $123 $ - $ - $172 Fair value13 115 - - 128 Average yield(a)17.50 %15.66 % - % - %16.18 %Asset-backed securitiesAmortized cost$3 $327 $1,291 $22,217 $23,838 Fair value3 329 1,296 22,278 23,906 Average yield(a)5.30 %5.62 %5.71 %5.04 %5.08 %Total available-for-sale securitiesAmortized cost(b)$49,603 $258,020 $63,512 $135,491 $506,626 Fair value49,711 259,947 63,935 133,605 507,198 Average yield(a)4.01 %4.07 %4.14 %4.71 %4.24 %Held-to-maturity securitiesMortgage-backed securitiesAmortized cost$1,161 $8,780 $5,314 $87,891 $103,146 Fair value1,147 8,319 4,908 78,812 93,186 Average yield(a)1.90 %2.47 %3.21 %2.90 %2.87 %U.S. Treasury and government agenciesAmortized cost$17,328 $91,142 $24,257 $ - $132,727 Fair value17,155 87,552 21,740 - 126,447 Average yield(a)1.23 %2.69 %1.48 % - %2.28 %Obligations of U.S. states and municipalitiesAmortized cost$ - $53 $286 $8,288 $8,627 Fair value - 50 265 7,693 8,008 Average yield(a) - %4.72 %3.14 %3.91 %3.89 %Asset-backed securitiesAmortized cost$ - $399 $12,811 $12,489 $25,699 Fair value - 398 12,815 12,490 25,703 Average yield(a) - %2.94 %4.47 %4.62 %4.52 %Total held-to-maturity securitiesAmortized cost(b)$18,489 $100,374 $42,668 $108,668 $270,199 Fair value18,302 96,319 39,728 98,995 253,344 Average yield(a)1.27 %2.67 %2.60 %3.17 %2.77 % Due after 10 years(c) Average yield(a) Average yield(a) Average yield(a) Average yield(a) Average yield(a) Average yield(a) Amortized cost(b) Average yield(a) Average yield(a) Average yield(a) Average yield(a) Average yield(a) Amortized cost(b) Average yield(a) (a)Average yield is computed using the effective yield of each security owned at the end of the period, weighted based on the amortized cost of each security. The effective yield considers the contractual coupon, amortization of premiums and accretion of discounts, and the effect of related hedging derivatives, including closed portfolio hedges. Taxable-equivalent amounts are used where applicable. The effective yield excludes unscheduled principal prepayments; and accordingly, actual maturities of securities may differ from their contractual or expected maturities as certain securities may be prepaid. However, for certain callable debt securities, the average yield is calculated to the earliest call date. (b)For purposes of this table, the amortized cost of available-for-sale securities excludes the allowance for credit losses of $41 million and the portfolio layer fair value hedge basis adjustments of $641 million at December 31, 2025. The amortized cost of held-to-maturity securities also excludes the allowance for credit losses of $65 million at December 31, 2025. (c)Substantially all of the Firm's U.S. residential MBS and collateralized mortgage obligations are due in 10 years or more, based on contractual maturity. The estimated weighted-average life, which reflects anticipated future prepayments, is approximately seven years for agency residential MBS, six years for agency residential collateralized mortgage obligations, and four years for nonagency residential collateralized mortgage obligations. 232JPMorgan Chase & Co./2025 Form 10-K 232JPMorgan Chase & Co./2025 Form 10-K 232JPMorgan Chase & Co./2025 Form 10-K 232 JPMorgan Chase & Co./2025 Form 10-K --- ## Modified Risk: Notes to consolidated financial statements **Key changes:** - Updated: "Indemnification assets - Shared-loss agreementsThe indemnification assets represent forecasted recoveries from the FDIC associated with the shared-loss assets over the respective shared-loss recovery periods." - Updated: "The FHLB advances assumed in the acquisition were recorded in short-term borrowings and in long-term debt." **Prior (2025):** Core deposit and certain wealth management customer relationship intangibles were acquired as part of the First Republic acquisition. The core deposit intangible of $1.3 billion was valued by discounting estimated after-tax cost savings over the remaining useful life of the deposits using the favorable source of funds method. The after-tax cost savings were estimated based on the difference between the cost of maintaining the core deposit base relative to the cost of next best alternative funding sources available to market participants. The customer relationship intangibles of $180 million were valued by discounting estimated after-tax earnings over their remaining useful lives using the multi-period excess earnings method. Both intangible asset valuations utilized assumptions that the Firm believes a market participant would use to estimate fair values, such as growth and attrition rates, projected fee income as well as related costs to service the relationships, and discount rates. The core deposit and customer relationship intangibles are amortized over a projected period of future cash flows of approximately 7 years. Refer to Note 15 for further discussion on other intangible assets. method. Both intangible asset valuations utilized assumptions that the Firm believes a market participant would use to estimate fair values, such as growth and attrition rates, projected fee income as well as related costs to service the relationships, and discount rates. The core deposit and customer relationship intangibles are amortized over a projected period of future cash flows of approximately 7 years. Refer to Note 15 for further discussion on other intangible assets. 320JPMorgan Chase & Co./2024 Form 10-K 320JPMorgan Chase & Co./2024 Form 10-K 320JPMorgan Chase & Co./2024 Form 10-K 320 JPMorgan Chase & Co./2024 Form 10-K Indemnification assets - Shared-loss agreementsThe indemnification assets represent forecasted recoveries from the FDIC associated with the shared-loss assets over the respective shared-loss recovery periods. The indemnification assets were recorded at fair value in other assets on the Consolidated balance sheets on the acquisition date. The fair values of the indemnification assets were estimated based on the timing of the forecasted losses underlying the related allowance for credit losses. The subsequent quarterly remeasurement of the indemnification assets is based on changes in the amount and timing of forecasted losses in the allowance for credit losses associated with the shared-loss assets and is recorded in other income. Under certain circumstances, the Firm may be required to make a payment to the FDIC upon termination of the shared-loss agreements based on the level of actual losses and recoveries on the shared-loss assets. The estimated potential future payment is reflected as contingent consideration as part of the purchase price consideration.Purchase Money Note and FHLB advancesThe Purchase Money Note is recorded in long-term debt on the Consolidated balance sheets. The fair value of the Purchase Money Note was estimated based on a discounted cash flow methodology and incorporated estimated market discount rates. The FHLB advances assumed in the acquisition are recorded in short-term borrowings and in long-term debt. The fair values of the FHLB advances were based on a discounted cash flow methodology and considered the observed FHLB advance issuance rates. Indemnification assets - Shared-loss agreementsThe indemnification assets represent forecasted recoveries from the FDIC associated with the shared-loss assets over the respective shared-loss recovery periods. The indemnification assets were recorded at fair value in other assets on the Consolidated balance sheets on the acquisition date. The fair values of the indemnification assets were estimated based on the timing of the forecasted losses underlying the related allowance for credit losses. The subsequent quarterly remeasurement of the indemnification assets is based on changes in the amount and timing of forecasted losses in the allowance for credit losses associated with the shared-loss assets and is recorded in other income. Under certain circumstances, the Firm may be required to make a payment to the FDIC upon termination of the shared-loss agreements based on the level of actual losses and recoveries on the shared-loss assets. The estimated potential future payment is reflected as contingent consideration as part of the purchase price consideration. **Current (2026):** Indemnification assets - Shared-loss agreementsThe indemnification assets represent forecasted recoveries from the FDIC associated with the shared-loss assets over the respective shared-loss recovery periods. The indemnification assets were recorded at fair value in other assets on the Consolidated balance sheets on the acquisition date. The fair values of the indemnification assets were estimated based on the timing of the forecasted losses underlying the related allowance for credit losses. The subsequent quarterly remeasurement of the indemnification assets is based on changes in the amount and timing of forecasted losses in the allowance for credit losses associated with the shared-loss assets and is recorded in other income. Under certain circumstances, the Firm may be required to make a payment to the FDIC upon termination of the shared-loss agreements based on the level of actual losses and recoveries on the shared-loss assets. The estimated potential future payment is reflected as contingent consideration as part of the purchase price consideration.Purchase Money Note and FHLB advancesThe Purchase Money Note is recorded in long-term debt on the Consolidated balance sheets. The fair value of the Purchase Money Note was estimated based on a discounted cash flow methodology and incorporated estimated market discount rates. The FHLB advances assumed in the acquisition were recorded in short-term borrowings and in long-term debt. The fair values of the FHLB advances were based on a discounted cash flow methodology and considered the observed FHLB advance issuance rates. Indemnification assets - Shared-loss agreementsThe indemnification assets represent forecasted recoveries from the FDIC associated with the shared-loss assets over the respective shared-loss recovery periods. The indemnification assets were recorded at fair value in other assets on the Consolidated balance sheets on the acquisition date. The fair values of the indemnification assets were estimated based on the timing of the forecasted losses underlying the related allowance for credit losses. The subsequent quarterly remeasurement of the indemnification assets is based on changes in the amount and timing of forecasted losses in the allowance for credit losses associated with the shared-loss assets and is recorded in other income. Under certain circumstances, the Firm may be required to make a payment to the FDIC upon termination of the shared-loss agreements based on the level of actual losses and recoveries on the shared-loss assets. The estimated potential future payment is reflected as contingent consideration as part of the purchase price consideration. --- ## Modified Risk: Liabilities:(a) **Key changes:** - Updated: "(c)(f) (c)(f) (c)(f) (c)(f) Trading liabilities - debt and equity instruments (c) (c) Accounts payable and other liabilities (c) (c) (c)(f) (c)(f) 186JPMorgan Chase & Co./2025 Form 10-K 186JPMorgan Chase & Co./2025 Form 10-K 186JPMorgan Chase & Co./2025 Form 10-K 186 JPMorgan Chase & Co./2025 Form 10-K Fair value measurements using significant unobservable inputsYear endedDecember 31, 2024(in millions)Fair value at Jan." - Updated: "31, 2024Purchases(g)SalesSettlements(h)Transfers into level 3Assets:(a)Trading assets:Debt instruments:Mortgage-backed securities:U.S." - Updated: "government debt securities179 (6)175 (183) - 17 (30)152 (10)Corporate debt securities484 36 459 (354)(181)13 (67)390 45 Loans684 63 800 (642)(74)839 (582)1,088 29 Asset-backed securities6 - 9 (5)(8)8 - 10 - Total debt instruments2,138 116 1,489 (1,449)(349)888 (689)2,144 60 Equity securities127 (21)138 (123)(1)85 (143)62 (308)Physical commodities7 17 3 - (1) - - 26 16 Other101 144 53 - (68)28 (48)210 108 Total trading assets - debt and equity instruments2,373 256 (c)1,683 (1,572)(419)1,001 (880)2,442 (124)(c)Net derivative receivables:(b)Interest rate502 745 387 (197)(608)(172)(356)301 (362)Credit265 (208)(2)(17)(333)(61)(7)(363)(265)Foreign exchange62 248 178 (538)(30)128 (28)20 353 Equity(2,402)(321)904 (2,488)953 (91)579 (2,866)783 Commodity(279)64 32 (215)310 15 - (73)102 Total net derivative receivables(1,852)528 (c)1,499 (3,455)292 (181)188 (2,981)611 (c)Available-for-sale securities:Mortgage-backed securities:Commercial - nonagency - - - - - 8 - 8 - Corporate debt securities - - - - - - - - - Total available-for-sale securities - - (d) - - - 8 - 8 - (d)Loans3,079 266 (c)431 (756)(993)816 (427)2,416 251 (c)Mortgage servicing rights8,522 762 (e)926 (21)(1,068) - - 9,121 762 (e)Other assets758 105 (c)623 (62)(58)5 (27)1,344 88 (c)Fair value measurements using significant unobservable inputsYear endedDecember 31, 2024(in millions)Fair value at Jan." - Updated: "31, 2024PurchasesSalesIssuancesSettlements(h)Transfers into level 3Liabilities:(a)Deposits$1,833 $(14)(c)(f)$ - $ - $2,006 $(1,522)$34 $(152)$2,185 $(44)(c)(f)Short-term borrowings1,758 180 (c)(f) - - 7,752 (6,230)23 (7)3,476 58 (c)(f)Trading liabilities - debt and equity instruments37 (47)(c)(45)70 - - 48 (17)46 18 (c)Accounts payable and other liabilities52 (6)(c)(35)63 - - 5 (3)76 (6)(c)Long-term debt27,726 1,475 (c)(f) - - 23,920 (18,432)738 (863)34,564 1,212 (c)(f) Purchases(g) Settlements(h)" **Prior (2025):** The following tables include a rollforward of the Consolidated balance sheets amounts (including changes in fair value) for financial instruments classified by the Firm within level 3 of the fair value hierarchy for the years ended December 31, 2024, 2023 and 2022. When a determination is made to classify a financial instrument within level 3, the determination is based on the significance of the unobservable inputs to the overall fair value measurement. However, level 3 financial instruments typically include, in addition to the unobservable or level 3 components, observable components (that is, components that are actively quoted and can be validated to external sources); accordingly, the gains and losses in the table below include changes in fair value due in part to observable factors that are part of the valuation methodology. The Firm risk-manages the observable components of level 3 financial instruments using securities and derivative positions that are classified within level 1 or 2 of the fair value hierarchy; as these level 1 and level 2 risk management instruments are not included below, the gains or losses in the following tables do not reflect the effect of the Firm's risk management activities related to such level 3 instruments. 192JPMorgan Chase & Co./2024 Form 10-K 192JPMorgan Chase & Co./2024 Form 10-K 192JPMorgan Chase & Co./2024 Form 10-K 192 JPMorgan Chase & Co./2024 Form 10-K Fair value measurements using significant unobservable inputsYear endedDecember 31, 2024(in millions)Fair value at Jan. 1, 2024Total realized/unrealized gains/(losses)Transfers into level 3Transfers (out of) level 3Fair value at Dec. 31, 2024Change in unrealized gains/(losses) related to financial instruments held at Dec. 31, 2024Purchases(g)SalesSettlements(h)Assets:(a)Federal funds sold and securities purchased under resale agreements$ - $ - $ - $ - $ - $ - $ - $ - $ - Trading assets:Debt instruments:Mortgage-backed securities: U.S. GSEs and government agencies758 18 46 (260) (81)7 - 488 (3)Residential - nonagency5 7 - (5) (2)4 (4)5 - Commercial - nonagency12 (2) - - - - - 10 (1)Total mortgage-backed securities775 23 46 (265)(83)11 (4)503 (4)Obligations of U.S. states and municipalities10 - - - (3) - (6)1 - Non-U.S. government debt securities179 (6)175 (183) - 17 (30)152 (10)Corporate debt securities484 36 459 (354) (181)13 (67)390 45 Loans684 63 800 (642) (74)839 (582)1,088 29 Asset-backed securities6 - 9 (5) (8)8 - 10 - Total debt instruments2,138 116 1,489 (1,449)(349)888 (689)2,144 60 Equity securities127 (21)138 (123) (1)85 (143)62 (308)Physical commodities7 17 3 - (1) - - 26 16 Other101 144 53 - (68)28 (48)210 108 Total trading assets - debt and equity instruments2,373 256 (c)1,683 (1,572)(419)1,001 (880)2,442 (124)(c)Net derivative receivables:(b) Interest rate502 745 387 (197) (608)(172)(356)301 (362)Credit265 (208)(2)(17) (333)(61)(7)(363)(265)Foreign exchange62 248 178 (538) (30)128 (28)20 353 Equity(2,402)(321)904 (2,488) 953 (91)579 (2,866)783 Commodity(279)64 32 (215) 310 15 - (73)102 Total net derivative receivables(1,852)528 (c)1,499 (3,455)292 (181)188 (2,981)611 (c)Available-for-sale securities:Mortgage-backed securities:Commercial - nonagency - - - - - 8 - 8 - Corporate debt securities - - - - - - - - - Total available-for-sale securities - - (d) - - - 8 - 8 - (d)Loans3,079 266 (c)431 (756) (993)816 (427)2,416 251 (c)Mortgage servicing rights8,522 762 (e)926 (21) (1,068) - - 9,121 762 (e)Other assets758 105 (c)623 (62)(58)5 (27)1,344 88 (c)Fair value measurements using significant unobservable inputsYear endedDecember 31, 2024(in millions)Fair value at Jan. 1, 2024Total realized/unrealized (gains)/lossesTransfers (out of) level 3Fair value at Dec. 31, 2024Change in unrealized (gains)/losses related to financial instruments held at Dec. 31, 2024PurchasesSalesIssuancesSettlements(h)Transfers into level 3Liabilities:(a)Deposits$1,833 $(14)(c)(f)$ - $ - $2,006 $(1,522)$34 $(152)$2,185 $(44)(c)(f)Short-term borrowings1,758 180 (c)(f) - - 7,752 (6,230)23 (7)3,476 58 (c)(f)Trading liabilities - debt and equity instruments37 (47)(c)(45)70 - - 48 (17)46 18 (c)Accounts payable and other liabilities52 (6)(c)(35)63 - - 5 (3)76 (6)(c)Long-term debt27,726 1,475 (c)(f) - - 23,920 (18,432)738 (863)34,564 1,212 (c)(f) Fair value at Jan. 1, 2024 Purchases(g) Settlements(h) **Current (2026):** (c)(f) (c)(f) (c)(f) (c)(f) Trading liabilities - debt and equity instruments (c) (c) Accounts payable and other liabilities (c) (c) (c)(f) (c)(f) 186JPMorgan Chase & Co./2025 Form 10-K 186JPMorgan Chase & Co./2025 Form 10-K 186JPMorgan Chase & Co./2025 Form 10-K 186 JPMorgan Chase & Co./2025 Form 10-K Fair value measurements using significant unobservable inputsYear endedDecember 31, 2024(in millions)Fair value at Jan. 1, 2024Total realized/unrealized gains/(losses)Transfers (out of) level 3Fair value at Dec. 31, 2024Change in unrealized gains/(losses) related to financial instruments held at Dec. 31, 2024Purchases(g)SalesSettlements(h)Transfers into level 3Assets:(a)Trading assets:Debt instruments:Mortgage-backed securities:U.S. GSEs and government agencies$758 $18 $46 $(260)$(81)$7 $ - $488 $(3)Residential - nonagency5 7 - (5)(2)4 (4)5 - Commercial - nonagency12 (2) - - - - - 10 (1)Total mortgage-backed securities775 23 46 (265)(83)11 (4)503 (4)Obligations of U.S. states and municipalities10 - - - (3) - (6)1 - Non-U.S. government debt securities179 (6)175 (183) - 17 (30)152 (10)Corporate debt securities484 36 459 (354)(181)13 (67)390 45 Loans684 63 800 (642)(74)839 (582)1,088 29 Asset-backed securities6 - 9 (5)(8)8 - 10 - Total debt instruments2,138 116 1,489 (1,449)(349)888 (689)2,144 60 Equity securities127 (21)138 (123)(1)85 (143)62 (308)Physical commodities7 17 3 - (1) - - 26 16 Other101 144 53 - (68)28 (48)210 108 Total trading assets - debt and equity instruments2,373 256 (c)1,683 (1,572)(419)1,001 (880)2,442 (124)(c)Net derivative receivables:(b)Interest rate502 745 387 (197)(608)(172)(356)301 (362)Credit265 (208)(2)(17)(333)(61)(7)(363)(265)Foreign exchange62 248 178 (538)(30)128 (28)20 353 Equity(2,402)(321)904 (2,488)953 (91)579 (2,866)783 Commodity(279)64 32 (215)310 15 - (73)102 Total net derivative receivables(1,852)528 (c)1,499 (3,455)292 (181)188 (2,981)611 (c)Available-for-sale securities:Mortgage-backed securities:Commercial - nonagency - - - - - 8 - 8 - Corporate debt securities - - - - - - - - - Total available-for-sale securities - - (d) - - - 8 - 8 - (d)Loans3,079 266 (c)431 (756)(993)816 (427)2,416 251 (c)Mortgage servicing rights8,522 762 (e)926 (21)(1,068) - - 9,121 762 (e)Other assets758 105 (c)623 (62)(58)5 (27)1,344 88 (c)Fair value measurements using significant unobservable inputsYear endedDecember 31, 2024(in millions)Fair value at Jan. 1, 2024Total realized/unrealized (gains)/losses Transfers (out of) level 3Fair value at Dec. 31, 2024Change in unrealized (gains)/losses related to financial instruments held at Dec. 31, 2024PurchasesSalesIssuancesSettlements(h)Transfers into level 3Liabilities:(a)Deposits$1,833 $(14)(c)(f)$ - $ - $2,006 $(1,522)$34 $(152)$2,185 $(44)(c)(f)Short-term borrowings1,758 180 (c)(f) - - 7,752 (6,230)23 (7)3,476 58 (c)(f)Trading liabilities - debt and equity instruments37 (47)(c)(45)70 - - 48 (17)46 18 (c)Accounts payable and other liabilities52 (6)(c)(35)63 - - 5 (3)76 (6)(c)Long-term debt27,726 1,475 (c)(f) - - 23,920 (18,432)738 (863)34,564 1,212 (c)(f) Purchases(g) Settlements(h) --- ## Modified Risk: Results from U.S. and non-U.S. earnings **Key changes:** - Updated: "Year ended December 31, (in millions)202520242023U.S.$56,184 $59,472 $46,868 Non-U.S.(a)16,411 15,609 14,744 Income before income tax expense$72,595 $75,081 $61,612 Non-U.S.(a)" **Prior (2025):** The following table presents the U.S. and non-U.S. components of income before income tax expense. Year ended December 31, (in millions)202420232022U.S.$59,472 $46,868 $34,626 Non-U.S.(a)15,609 14,744 11,540 Income before income tax expense$75,081 $61,612 $46,166 Non-U.S.(a) **Current (2026):** The following table presents the U.S. and non-U.S. components of income before income tax expense. Year ended December 31, (in millions)202520242023U.S.$56,184 $59,472 $46,868 Non-U.S.(a)16,411 15,609 14,744 Income before income tax expense$72,595 $75,081 $61,612 Non-U.S.(a) --- ## Modified Risk: Unfavorable market and economic conditions could adversely affect JPMorganChase's wholesale businesses. **Key changes:** - Updated: "Market and economic factors can affect the volume of transactions and advisory engagements for which JPMorganChase is engaged and the related revenue from those activities." - Updated: "For example, higher interest rates or a market downturn could affect the valuation of client assets that JPMorganChase manages or holds under custody, resulting in lower revenue from fees that are based on the amount of assets under management or custody." - Updated: "Substantial and unexpected withdrawals from a JPMorganChase fund could also hamper the investment performance of the fund, particularly if the outflows create the need for the fund to dispose of fund assets at disadvantageous times or 15 15 15 15 Part I Part I prices, and could lead to further withdrawals based on the weaker investment performance.An adverse change in market conditions in particular segments of the economy, or sustained changes in consumer behavior that affect specific economic sectors, could have a material adverse effect on clients of JPMorganChase whose operations or financial condition are significantly impacted by the health or stability of those segments or economic sectors, as well as clients that are engaged in related businesses." **Prior (2025):** In JPMorganChase's wholesale businesses, market and economic factors can affect the volume of transactions that JPMorganChase executes for its clients or for which it advises clients, and, therefore, the revenue that JPMorganChase receives from those transactions. These factors can also influence the willingness of other financial institutions and investors to participate in capital markets transactions that JPMorganChase manages, such as loan syndications or securities underwriting. Furthermore, if a significant and sustained deterioration in market conditions were to occur, the profitability of JPMorganChase's businesses engaged in capital markets activities, including loan syndication, securities underwriting and leveraged lending activities, could be reduced to the extent that those businesses: •earn less fee revenue due to lower transaction volumes, including when clients are unwilling or unable to refinance their outstanding debt obligations in unfavorable market conditions, or •dispose of portions of credit commitments at a loss, or hold larger residual positions in credit commitments that cannot be sold at favorable prices. The fees that JPMorganChase earns from managing client assets or holding assets under custody for clients could be diminished by declining asset values or other adverse macroeconomic conditions. For example, higher interest rates or a downturn in financial markets could affect the valuation of client assets that JPMorganChase manages or holds under custody, which, in turn, could affect JPMorganChase's revenue from fees that are based on the amount of assets under management or custody. Similarly, adverse macroeconomic or market conditions could prompt outflows from JPMorganChase funds or accounts, or cause clients to invest in products that generate lower revenue. Substantial and unexpected withdrawals from a JPMorganChase fund can also hamper the investment performance of the fund, particularly if the outflows create the need for the fund to dispose of fund assets at disadvantageous times or prices, and could lead to further withdrawals based on the weaker investment performance.An adverse change in market conditions in particular segments of the economy, such as a sudden and severe downturn in oil and gas prices or an increase in commodity prices, severe declines in commercial real estate values, or sustained changes in consumer behavior that affect specific economic sectors, could have a material adverse effect on clients of JPMorganChase whose operations or financial condition are directly or indirectly dependent on the health or stability of those market segments or economic sectors, as well as clients that are engaged in related businesses. JPMorganChase could incur credit losses on its loans and other commitments to clients that operate in, or are dependent on, any sector of the economy that is or comes under stress.An economic downturn or sustained changes in consumer behavior that results in shifts in consumer and business spending could also have a negative impact on certain of JPMorganChase's wholesale clients, and thereby diminish JPMorganChase's earnings from its wholesale operations. For example, the businesses of certain of JPMorganChase's wholesale clients are dependent on consistent streams of rental income from commercial real estate properties, including offices, which are owned or being built by those clients. Sustained adverse economic conditions or hybrid work models could result in reductions in the rental cash flows that owners or developers receive from their tenants which, in turn, could depress the values of the properties, impair the ability of borrowers to service or refinance their commercial real estate loans and lead to an increase in foreclosures. These consequences could result in JPMorganChase experiencing increases in the allowance for credit losses, higher delinquencies, defaults and charge-offs within its commercial real estate loan portfolio and incurring higher costs for servicing a larger volume of delinquent loans in that portfolio. An increase in foreclosures could result in higher operational risk associated with JPMorganChase owning and managing real property, or other adverse macroeconomic conditions. For example, higher interest rates or a downturn in financial markets could affect the valuation of client assets that JPMorganChase manages or holds under custody, which, in turn, could affect JPMorganChase's revenue from fees that are based on the amount of assets under management or custody. Similarly, adverse macroeconomic or market conditions could prompt outflows from JPMorganChase funds or accounts, or cause clients to invest in products that generate lower revenue. Substantial and unexpected withdrawals from a JPMorganChase fund can also hamper the investment performance of the fund, particularly if the outflows create the need for the fund to dispose of fund assets at disadvantageous times or prices, and could lead to further withdrawals based on the weaker investment performance. An adverse change in market conditions in particular segments of the economy, such as a sudden and severe downturn in oil and gas prices or an increase in commodity prices, severe declines in commercial real estate values, or sustained changes in consumer behavior that affect specific economic sectors, could have a material adverse effect on clients of JPMorganChase whose operations or financial condition are directly or indirectly dependent on the health or stability of those market segments or economic sectors, as well as clients that are engaged in related businesses. JPMorganChase could incur credit losses on its loans and other commitments to clients that operate in, or are dependent on, any sector of the economy that is or comes under stress. An economic downturn or sustained changes in consumer behavior that results in shifts in consumer and business spending could also have a negative impact on certain of JPMorganChase's wholesale clients, and thereby diminish JPMorganChase's earnings from its wholesale operations. For example, the businesses of certain of JPMorganChase's wholesale clients are dependent on consistent streams of rental income from commercial real estate properties, including offices, which are owned or being built by those clients. Sustained adverse economic conditions or hybrid work models could result in reductions in the rental cash flows that owners or developers receive from their tenants which, in turn, could depress the values of the properties, impair the ability of borrowers to service or refinance their commercial real estate loans and lead to an increase in foreclosures. These consequences could result in JPMorganChase experiencing increases in the allowance for credit losses, higher delinquencies, defaults and charge-offs within its commercial real estate loan portfolio and incurring higher costs for servicing a larger volume of delinquent loans in that portfolio. An increase in foreclosures could result in higher operational risk associated with JPMorganChase owning and managing real property, 17 17 17 17 Part I Part I and any inadequacy in governance or control over the foreclosed properties could result in regulatory scrutiny and reputational harm.Changes in interest rates and credit spreads can adversely affect JPMorganChase's earnings, its liquidity or its capital levels. When interest rates are high or increasing, JPMorganChase can generally be expected to earn higher net interest income. However, higher interest rates can also lead to:•fewer originations of commercial and residential real estate loans •losses on underwriting exposures or incremental client-specific downgrades, or increases in the allowance for credit losses and net charge-offs due to higher financing costs for clients•the loss of deposits, particularly if customers withdraw deposits because they believe that interest rates offered by JPMorganChase are lower than those of competitors or if JPMorganChase makes incorrect assumptions about depositor behavior•losses on available-for-sale ("AFS") securities held in the investment securities portfolio•lower net interest income if central banks introduce interest rate increases more quickly than anticipated and this results in a misalignment in the pricing of short-term and long-term borrowings•less liquidity in the financial markets, and•higher funding costs.All of these outcomes could adversely affect JPMorganChase's earnings or its liquidity and capital levels, and any negative outcomes could be more severe in a prolonged period of high interest rates. Higher interest rates can also negatively affect the payment performance on loans within JPMorganChase's consumer and wholesale loan portfolios that are linked to variable interest rates. If borrowers of variable rate loans are unable to afford higher interest payments, those borrowers may reduce or stop making payments, thereby causing JPMorganChase to incur losses and increased operational costs related to servicing a higher volume of delinquent loans. On the other hand, a low or negative interest rate environment may cause:•net interest margins to be compressed, which could reduce the amounts that JPMorganChase earns on its investment securities portfolio to the extent that it is unable to reinvest contemporaneously in higher-yielding instruments•unanticipated or adverse changes in depositor behavior, which could negatively affect JPMorganChase's broader asset and liability management strategy, and•a reduction in the value of JPMorganChase's mortgage servicing rights ("MSRs") asset, resulting in decreased revenues.When credit spreads widen, it becomes more expensive for JPMorganChase to borrow. JPMorganChase's credit spreads may widen or narrow not only in response to events and circumstances that are specific to JPMorganChase but also as a result of general economic and geopolitical events and conditions. Changes in JPMorganChase's credit spreads will affect, positively or negatively, JPMorganChase's earnings on certain liabilities, such as derivatives, that are recorded at fair value. JPMorganChase's results may be materially affected by market fluctuations and significant changes in the valuation of financial instruments.The value of securities, derivatives and other financial instruments which JPMorganChase owns or in which it makes markets can be materially affected by market fluctuations. Market volatility, illiquid market conditions and other disruptions in the financial markets may make it extremely difficult to value certain financial instruments. Subsequent valuations of financial instruments in future periods, in light of factors then prevailing, may result in significant changes in the value of these instruments. In addition, at the time of any disposition of these financial instruments, the price that JPMorganChase ultimately realizes will depend on the demand and liquidity in the market at that time and may be materially lower than their current fair value. Any of these factors could cause a decline in the value of financial instruments that JPMorganChase owns or in which it makes markets, which may have an adverse effect on JPMorganChase's results of operations.JPMorganChase's risk management and monitoring processes, including its stress testing framework, seek to quantify and manage JPMorganChase's exposure to more extreme market moves. However, JPMorganChase's hedging and other risk management strategies may not be effective, and it could incur significant losses, if extreme market events were to occur.CreditJPMorganChase can be negatively affected by adverse changes in the financial condition of clients, counterparties, custodians and CCPs.JPMorganChase routinely executes transactions with clients and counterparties such as corporations, financial institutions, asset managers, hedge funds, securities exchanges and government entities within and outside the U.S. Many of these transactions expose JPMorganChase to the credit risk of its clients and counterparties, and can involve JPMorganChase in disputes and litigation if a client or counterparty defaults. JPMorganChase can also be subject to losses and any inadequacy in governance or control over the foreclosed properties could result in regulatory scrutiny and reputational harm.Changes in interest rates and credit spreads can adversely affect JPMorganChase's earnings, its liquidity or its capital levels. When interest rates are high or increasing, JPMorganChase can generally be expected to earn higher net interest income. However, higher interest rates can also lead to:•fewer originations of commercial and residential real estate loans •losses on underwriting exposures or incremental client-specific downgrades, or increases in the allowance for credit losses and net charge-offs due to higher financing costs for clients•the loss of deposits, particularly if customers withdraw deposits because they believe that interest rates offered by JPMorganChase are lower than those of competitors or if JPMorganChase makes incorrect assumptions about depositor behavior•losses on available-for-sale ("AFS") securities held in the investment securities portfolio•lower net interest income if central banks introduce interest rate increases more quickly than anticipated and this results in a misalignment in the pricing of short-term and long-term borrowings•less liquidity in the financial markets, and•higher funding costs.All of these outcomes could adversely affect JPMorganChase's earnings or its liquidity and capital levels, and any negative outcomes could be more severe in a prolonged period of high interest rates. Higher interest rates can also negatively affect the payment performance on loans within JPMorganChase's consumer and wholesale loan portfolios that are linked to variable interest rates. If borrowers of variable rate loans are unable to afford higher interest payments, those borrowers may reduce or stop making payments, thereby causing JPMorganChase to incur losses and increased operational costs related to servicing a higher volume of delinquent loans. On the other hand, a low or negative interest rate environment may cause:•net interest margins to be compressed, which could reduce the amounts that JPMorganChase earns on its investment securities portfolio to the extent that it is unable to reinvest contemporaneously in higher-yielding instruments•unanticipated or adverse changes in depositor behavior, which could negatively affect JPMorganChase's broader asset and liability management strategy, and and any inadequacy in governance or control over the foreclosed properties could result in regulatory scrutiny and reputational harm. **Current (2026):** Market and economic factors can affect the volume of transactions and advisory engagements for which JPMorganChase is engaged and the related revenue from those activities. These factors could also influence the willingness of other financial institutions and investors to participate in capital markets transactions that JPMorganChase manages. Furthermore, any significant and sustained deterioration in market conditions could reduce fee revenue due to lower transaction volumes, including when clients are unwilling or unable to refinance their outstanding debt obligations. Additionally, the profitability of JPMorganChase's capital markets activities could be impacted if it needs to dispose of portions of credit commitments at a loss or hold larger residual positions in credit commitments that cannot be sold at favorable prices. The fees that JPMorganChase earns from managing client assets or holding assets under custody for clients could be diminished by declining asset values or other adverse macroeconomic conditions. For example, higher interest rates or a market downturn could affect the valuation of client assets that JPMorganChase manages or holds under custody, resulting in lower revenue from fees that are based on the amount of assets under management or custody. Similarly, adverse macroeconomic or market conditions could prompt outflows from JPMorganChase funds or accounts, or cause clients to invest in products that generate lower revenue. Substantial and unexpected withdrawals from a JPMorganChase fund could also hamper the investment performance of the fund, particularly if the outflows create the need for the fund to dispose of fund assets at disadvantageous times or 15 15 15 15 Part I Part I prices, and could lead to further withdrawals based on the weaker investment performance.An adverse change in market conditions in particular segments of the economy, or sustained changes in consumer behavior that affect specific economic sectors, could have a material adverse effect on clients of JPMorganChase whose operations or financial condition are significantly impacted by the health or stability of those segments or economic sectors, as well as clients that are engaged in related businesses. JPMorganChase could incur credit losses on its loans and other commitments to clients that operate in, or are significantly impacted by, any sector of the economy under stress.An economic downturn or sustained changes in consumer behavior that result in shifts in consumer and business spending could also have a negative impact on certain of JPMorganChase's wholesale clients, and thereby diminish JPMorganChase's earnings from its wholesale operations. For example, clients that rely on rental income from commercial real estate properties could be negatively affected by sustained adverse economic conditions or circumstances (such as hybrid work models) that reduce tenancies. These types of developments could depress property values, impair the ability of clients to service or refinance their loans and lead to an increase in foreclosures. These consequences could result in JPMorganChase experiencing an increase in the allowance for credit losses, higher delinquencies, defaults and charge-offs within its commercial real estate loan portfolio and incurring higher costs for servicing a larger volume of delinquent loans in that portfolio. An increase in foreclosures could also result in higher operational risk associated with JPMorganChase owning and managing real property, and any inadequacy in governance or control over the foreclosed properties could result in regulatory scrutiny and reputational harm. Changes in interest rates and credit spreads could adversely affect JPMorganChase's earnings or its liquidity and capital levels. JPMorganChase may generally be expected to earn higher net interest income when interest rates are high or increasing. However, higher interest rates could also result in:•fewer originations of commercial and residential real estate loans•losses on underwriting exposures or increases in client-specific downgrades•increased financing costs for clients, which could lead to an increase in the allowance for credit losses and higher net charge-offs•the loss of deposits, including where customers transition to higher-yielding products•losses on available-for-sale ("AFS") securities held in the investment securities portfolio•less liquidity in the financial markets, and•higher funding costs.All of these outcomes could adversely affect JPMorganChase's earnings or its liquidity and capital levels, with more severe impacts in a prolonged period of high interest rates.Higher interest rates could also negatively affect the payment performance on loans within JPMorganChase's consumer and wholesale loan portfolios that are linked to variable interest rates. If borrowers of variable rate loans reduce or stop making payments at higher interest rates, JPMorganChase could incur losses as well as increased operational costs related to servicing a higher volume of delinquent loans. On the other hand, a low or negative interest rate environment could cause:•compressed net interest margins, which could result in lower earnings on JPMorganChase's investment securities portfolio•adverse or unanticipated changes in depositor behavior, which could negatively affect JPMorganChase's broader asset and liability management strategies, and•a reduction in the value of JPMorganChase's mortgage servicing rights ("MSRs") asset, resulting in decreased revenues.When credit spreads widen, it becomes more expensive for JPMorganChase to borrow.JPMorganChase's credit spreads could widen or narrow not only due to events and circumstances that are specific to JPMorganChase but also as a result of general economic and geopolitical events and conditions. Changes in JPMorganChase's credit spreads could negatively affect its earnings on certain liabilities, such as derivatives, that are recorded at fair value.JPMorganChase's results could be materially affected by market fluctuations and significant changes in the valuation of financial instruments.The value of securities, derivatives and other financial instruments that JPMorganChase owns or in which it makes markets could be materially affected by market fluctuations. Market volatility, illiquid market conditions and other fluctuations in the financial markets could make it extremely difficult to value certain financial instruments. Subsequent valuations of financial instruments in future periods, in light of factors then prevailing, could result in significant changes in the value of these instruments. In addition, when JPMorganChase disposes of a financial instrument, the price that it realizes will depend on demand and liquidity in the market at the time of disposition, and that price could be materially lower than the current fair prices, and could lead to further withdrawals based on the weaker investment performance.An adverse change in market conditions in particular segments of the economy, or sustained changes in consumer behavior that affect specific economic sectors, could have a material adverse effect on clients of JPMorganChase whose operations or financial condition are significantly impacted by the health or stability of those segments or economic sectors, as well as clients that are engaged in related businesses. JPMorganChase could incur credit losses on its loans and other commitments to clients that operate in, or are significantly impacted by, any sector of the economy under stress.An economic downturn or sustained changes in consumer behavior that result in shifts in consumer and business spending could also have a negative impact on certain of JPMorganChase's wholesale clients, and thereby diminish JPMorganChase's earnings from its wholesale operations. For example, clients that rely on rental income from commercial real estate properties could be negatively affected by sustained adverse economic conditions or circumstances (such as hybrid work models) that reduce tenancies. These types of developments could depress property values, impair the ability of clients to service or refinance their loans and lead to an increase in foreclosures. These consequences could result in JPMorganChase experiencing an increase in the allowance for credit losses, higher delinquencies, defaults and charge-offs within its commercial real estate loan portfolio and incurring higher costs for servicing a larger volume of delinquent loans in that portfolio. An increase in foreclosures could also result in higher operational risk associated with JPMorganChase owning and managing real property, and any inadequacy in governance or control over the foreclosed properties could result in regulatory scrutiny and reputational harm. Changes in interest rates and credit spreads could adversely affect JPMorganChase's earnings or its liquidity and capital levels. JPMorganChase may generally be expected to earn higher net interest income when interest rates are high or increasing. However, higher interest rates could also result in:•fewer originations of commercial and residential real estate loans•losses on underwriting exposures or increases in client-specific downgrades•increased financing costs for clients, which could lead to an increase in the allowance for credit losses and higher net charge-offs•the loss of deposits, including where customers transition to higher-yielding products prices, and could lead to further withdrawals based on the weaker investment performance. An adverse change in market conditions in particular segments of the economy, or sustained changes in consumer behavior that affect specific economic sectors, could have a material adverse effect on clients of JPMorganChase whose operations or financial condition are significantly impacted by the health or stability of those segments or economic sectors, as well as clients that are engaged in related businesses. JPMorganChase could incur credit losses on its loans and other commitments to clients that operate in, or are significantly impacted by, any sector of the economy under stress. An economic downturn or sustained changes in consumer behavior that result in shifts in consumer and business spending could also have a negative impact on certain of JPMorganChase's wholesale clients, and thereby diminish JPMorganChase's earnings from its wholesale operations. For example, clients that rely on rental income from commercial real estate properties could be negatively affected by sustained adverse economic conditions or circumstances (such as hybrid work models) that reduce tenancies. These types of developments could depress property values, impair the ability of clients to service or refinance their loans and lead to an increase in foreclosures. These consequences could result in JPMorganChase experiencing an increase in the allowance for credit losses, higher delinquencies, defaults and charge-offs within its commercial real estate loan portfolio and incurring higher costs for servicing a larger volume of delinquent loans in that portfolio. An increase in foreclosures could also result in higher operational risk associated with JPMorganChase owning and managing real property, and any inadequacy in governance or control over the foreclosed properties could result in regulatory scrutiny and reputational harm. --- ## Modified Risk: Notes to consolidated financial statements **Key changes:** - Updated: "Discussion of changes in the allowance The allowance for credit losses as of December 31, 2025 was $31.2 billion, reflecting a net addition of $4.4 billion from December 31, 2024.The net addition to the allowance for credit losses included:•$3.3 billion in consumer, driven by $2.2 billion related to the Apple Card transaction, loan growth in Card Services and the impact of changes in the Firm's weighted-average macroeconomic outlook, partially offset by reduced borrower uncertainty, and •$1.1 billion in wholesale, driven by net increases in the loan and lending-related commitment portfolios, an update to loss assumptions on certain leveraged loans, and net changes in credit quality of client-specific exposures, partially offset by the impact of changes in the Firm's weighted-average macroeconomic outlook and a reduction due to the impact of charge-offs." - Updated: "real GDP(b)2.0 %1.9 %1.8 %(a)Reflects quarterly average of forecasted U.S." - Updated: "real GDP levels from the prior year.Subsequent changes to this forecast and related estimates will be reflected in the provision for credit losses in future periods.Refer to Note 12 for additional information on the consumer and wholesale credit portfolios." - Updated: "The adverse scenarios incorporate more punitive macroeconomic factors than the central case assumptions provided in the following table, resulting in: •a weighted average U.S." - Updated: "real GDP(b)2.0 %1.9 %1.8 %(a)Reflects quarterly average of forecasted U.S." **Prior (2025):** Discussion of changes in the allowance The allowance for credit losses as of December 31, 2024 was $26.9 billion, reflecting a net addition of $2.1 billion from December 31, 2023.The net addition to the allowance for credit losses included:•$2.1 billion in consumer, reflecting: -a $2.2 billion net addition in Card Services, predominantly driven by loan growth, reflecting higher revolving balances, including the seasoning of vintages originated in recent years, partially offset by -a $125 million net reduction in Home Lending in the first quarter of 2024, and •a net reduction of $30 million in wholesale, reflecting: -changes in certain macroeconomic variables, an update to loss assumptions on certain loans in Markets, and a reduction due to charge-offs largely from collateral-dependent loans, predominantly offset by -net downgrade activity, primarily in Real Estate, and the impact of incorporating the First Republic portfolio into the Firm's modeled credit loss estimates in the second quarter of 2024.The Firm's qualitative adjustments continued to include additional weight placed on the adverse scenarios to reflect ongoing uncertainties and downside risks related to the geopolitical and macroeconomic environment.The Firm's allowance for credit losses is estimated using a weighted average of five internally developed macroeconomic scenarios. The adverse scenarios incorporate more punitive macroeconomic factors than the central case assumptions provided in the table below, resulting in:•a weighted average U.S. unemployment rate peaking at 5.5% in the fourth quarter of 2025, and•a weighted average U.S. real GDP level that is 1.9% lower than the central case at the end of the second quarter of 2026.The following table presents the Firm's central case assumptions for the periods presented:Central case assumptions at December 31, 20242Q254Q252Q26U.S. unemployment rate(a)4.5 %4.3 %4.3 %YoY growth in U.S. real GDP(b)2.0 %1.9 %1.8 %Central case assumptions at December 31, 20232Q244Q242Q25U.S. unemployment rate(a)4.1 %4.4 %4.1 %YoY growth in U.S. real GDP(b)1.8 %0.7 %1.0 %(a)Reflects quarterly average of forecasted U.S. unemployment rate.(b)The year over year growth in U.S. real GDP in the forecast horizon of the central scenario is calculated as the percentage change in U.S. real GDP levels from the prior year.Subsequent changes to this forecast and related estimates will be reflected in the provision for credit losses in future periods.Refer to Note 12 for additional information on the consumer and wholesale credit portfolios.Refer to Critical Accounting Estimates Used by the Firm on pages 161-164 for further information on the allowance for credit losses and related management judgments. The allowance for credit losses as of December 31, 2024 was $26.9 billion, reflecting a net addition of $2.1 billion from December 31, 2023.The net addition to the allowance for credit losses included:•$2.1 billion in consumer, reflecting: -a $2.2 billion net addition in Card Services, predominantly driven by loan growth, reflecting higher revolving balances, including the seasoning of vintages originated in recent years, partially offset by -a $125 million net reduction in Home Lending in the first quarter of 2024, and •a net reduction of $30 million in wholesale, reflecting: -changes in certain macroeconomic variables, an update to loss assumptions on certain loans in Markets, and a reduction due to charge-offs largely from collateral-dependent loans, predominantly offset by -net downgrade activity, primarily in Real Estate, and the impact of incorporating the First Republic portfolio into the Firm's modeled credit loss estimates in the second quarter of 2024.The Firm's qualitative adjustments continued to include additional weight placed on the adverse scenarios to reflect ongoing uncertainties and downside risks related to the geopolitical and macroeconomic environment.The Firm's allowance for credit losses is estimated using a weighted average of five internally developed macroeconomic scenarios. The adverse scenarios incorporate more punitive macroeconomic factors than the central case assumptions provided in the table below, resulting in:•a weighted average U.S. unemployment rate peaking at 5.5% in the fourth quarter of 2025, and•a weighted average U.S. real GDP level that is 1.9% lower than the central case at the end of the second quarter of 2026. The allowance for credit losses as of December 31, 2024 was $26.9 billion, reflecting a net addition of $2.1 billion from December 31, 2023. The net addition to the allowance for credit losses included: •$2.1 billion in consumer, reflecting: -a $2.2 billion net addition in Card Services, predominantly driven by loan growth, reflecting higher revolving balances, including the seasoning of vintages originated in recent years, partially offset by -a $125 million net reduction in Home Lending in the first quarter of 2024, and •a net reduction of $30 million in wholesale, reflecting: -changes in certain macroeconomic variables, an update to loss assumptions on certain loans in Markets, and a reduction due to charge-offs largely from collateral-dependent loans, predominantly offset by -net downgrade activity, primarily in Real Estate, and the impact of incorporating the First Republic portfolio into the Firm's modeled credit loss estimates in the second quarter of 2024. The Firm's qualitative adjustments continued to include additional weight placed on the adverse scenarios to reflect ongoing uncertainties and downside risks related to the geopolitical and macroeconomic environment. The Firm's allowance for credit losses is estimated using a weighted average of five internally developed macroeconomic scenarios. The adverse scenarios incorporate more punitive macroeconomic factors than the central case assumptions provided in the table below, resulting in: •a weighted average U.S. unemployment rate peaking at 5.5% in the fourth quarter of 2025, and •a weighted average U.S. real GDP level that is 1.9% lower than the central case at the end of the second quarter of 2026. The following table presents the Firm's central case assumptions for the periods presented:Central case assumptions at December 31, 20242Q254Q252Q26U.S. unemployment rate(a)4.5 %4.3 %4.3 %YoY growth in U.S. real GDP(b)2.0 %1.9 %1.8 %Central case assumptions at December 31, 20232Q244Q242Q25U.S. unemployment rate(a)4.1 %4.4 %4.1 %YoY growth in U.S. real GDP(b)1.8 %0.7 %1.0 %(a)Reflects quarterly average of forecasted U.S. unemployment rate.(b)The year over year growth in U.S. real GDP in the forecast horizon of the central scenario is calculated as the percentage change in U.S. real GDP levels from the prior year.Subsequent changes to this forecast and related estimates will be reflected in the provision for credit losses in future periods.Refer to Note 12 for additional information on the consumer and wholesale credit portfolios.Refer to Critical Accounting Estimates Used by the Firm on pages 161-164 for further information on the allowance for credit losses and related management judgments. The following table presents the Firm's central case assumptions for the periods presented: Central case assumptions at December 31, 20242Q254Q252Q26U.S. unemployment rate(a)4.5 %4.3 %4.3 %YoY growth in U.S. real GDP(b)2.0 %1.9 %1.8 % U.S. unemployment rate(a) YoY growth in U.S. real GDP(b) Central case assumptions at December 31, 20232Q244Q242Q25U.S. unemployment rate(a)4.1 %4.4 %4.1 %YoY growth in U.S. real GDP(b)1.8 %0.7 %1.0 % U.S. unemployment rate(a) YoY growth in U.S. real GDP(b) (a)Reflects quarterly average of forecasted U.S. unemployment rate. (b)The year over year growth in U.S. real GDP in the forecast horizon of the central scenario is calculated as the percentage change in U.S. real GDP levels from the prior year. Subsequent changes to this forecast and related estimates will be reflected in the provision for credit losses in future periods. Refer to Note 12 for additional information on the consumer and wholesale credit portfolios. Refer to Critical Accounting Estimates Used by the Firm on pages 161-164 for further information on the allowance for credit losses and related management judgments. 270JPMorgan Chase & Co./2024 Form 10-K 270JPMorgan Chase & Co./2024 Form 10-K 270JPMorgan Chase & Co./2024 Form 10-K 270 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** Discussion of changes in the allowance The allowance for credit losses as of December 31, 2025 was $31.2 billion, reflecting a net addition of $4.4 billion from December 31, 2024.The net addition to the allowance for credit losses included:•$3.3 billion in consumer, driven by $2.2 billion related to the Apple Card transaction, loan growth in Card Services and the impact of changes in the Firm's weighted-average macroeconomic outlook, partially offset by reduced borrower uncertainty, and •$1.1 billion in wholesale, driven by net increases in the loan and lending-related commitment portfolios, an update to loss assumptions on certain leveraged loans, and net changes in credit quality of client-specific exposures, partially offset by the impact of changes in the Firm's weighted-average macroeconomic outlook and a reduction due to the impact of charge-offs. The Firm's qualitative adjustments and its weighted-average macroeconomic outlook continued to include additional weight placed on the adverse scenarios to reflect ongoing uncertainties and downside risks related to the geopolitical and macroeconomic environment. During 2025, the Firm further increased the weight placed on the adverse scenarios. The Firm's allowance for credit losses is estimated using a weighted average of five internally developed macroeconomic scenarios. The adverse scenarios incorporate more punitive macroeconomic factors than the central case assumptions provided in the following table, resulting in: •a weighted average U.S. unemployment rate peaking at 5.8% in the fourth quarter of 2026, and•a weighted average U.S. real GDP level that is 2.1% lower than the central case at the end of the second quarter of 2027.The following table presents the Firm's central case assumptions for the periods presented:Central case assumptions at December 31, 20252Q264Q262Q27U.S. unemployment rate(a)4.6 %4.4 %4.2 %YoY growth in U.S. real GDP(b)2.0 %1.8 %1.9 %Central case assumptions at December 31, 20242Q254Q252Q26U.S. unemployment rate(a)4.5 %4.3 %4.3 %YoY growth in U.S. real GDP(b)2.0 %1.9 %1.8 %(a)Reflects quarterly average of forecasted U.S. unemployment rate.(b)The year over year growth in U.S. real GDP in the forecast horizon of the central scenario is calculated as the percentage change in U.S. real GDP levels from the prior year.Subsequent changes to this forecast and related estimates will be reflected in the provision for credit losses in future periods.Refer to Note 12 for additional information on the consumer and wholesale credit portfolios. The allowance for credit losses as of December 31, 2025 was $31.2 billion, reflecting a net addition of $4.4 billion from December 31, 2024.The net addition to the allowance for credit losses included:•$3.3 billion in consumer, driven by $2.2 billion related to the Apple Card transaction, loan growth in Card Services and the impact of changes in the Firm's weighted-average macroeconomic outlook, partially offset by reduced borrower uncertainty, and •$1.1 billion in wholesale, driven by net increases in the loan and lending-related commitment portfolios, an update to loss assumptions on certain leveraged loans, and net changes in credit quality of client-specific exposures, partially offset by the impact of changes in the Firm's weighted-average macroeconomic outlook and a reduction due to the impact of charge-offs. The Firm's qualitative adjustments and its weighted-average macroeconomic outlook continued to include additional weight placed on the adverse scenarios to reflect ongoing uncertainties and downside risks related to the geopolitical and macroeconomic environment. During 2025, the Firm further increased the weight placed on the adverse scenarios. The Firm's allowance for credit losses is estimated using a weighted average of five internally developed macroeconomic scenarios. The adverse scenarios incorporate more punitive macroeconomic factors than the central case assumptions provided in the following table, resulting in: •a weighted average U.S. unemployment rate peaking at 5.8% in the fourth quarter of 2026, and•a weighted average U.S. real GDP level that is 2.1% lower than the central case at the end of the second quarter of 2027. The allowance for credit losses as of December 31, 2025 was $31.2 billion, reflecting a net addition of $4.4 billion from December 31, 2024. The net addition to the allowance for credit losses included: •$3.3 billion in consumer, driven by $2.2 billion related to the Apple Card transaction, loan growth in Card Services and the impact of changes in the Firm's weighted-average macroeconomic outlook, partially offset by reduced borrower uncertainty, and •$1.1 billion in wholesale, driven by net increases in the loan and lending-related commitment portfolios, an update to loss assumptions on certain leveraged loans, and net changes in credit quality of client-specific exposures, partially offset by the impact of changes in the Firm's weighted-average macroeconomic outlook and a reduction due to the impact of charge-offs. The Firm's qualitative adjustments and its weighted-average macroeconomic outlook continued to include additional weight placed on the adverse scenarios to reflect ongoing uncertainties and downside risks related to the geopolitical and macroeconomic environment. During 2025, the Firm further increased the weight placed on the adverse scenarios. The Firm's allowance for credit losses is estimated using a weighted average of five internally developed macroeconomic scenarios. The adverse scenarios incorporate more punitive macroeconomic factors than the central case assumptions provided in the following table, resulting in: •a weighted average U.S. unemployment rate peaking at 5.8% in the fourth quarter of 2026, and •a weighted average U.S. real GDP level that is 2.1% lower than the central case at the end of the second quarter of 2027. The following table presents the Firm's central case assumptions for the periods presented:Central case assumptions at December 31, 20252Q264Q262Q27U.S. unemployment rate(a)4.6 %4.4 %4.2 %YoY growth in U.S. real GDP(b)2.0 %1.8 %1.9 %Central case assumptions at December 31, 20242Q254Q252Q26U.S. unemployment rate(a)4.5 %4.3 %4.3 %YoY growth in U.S. real GDP(b)2.0 %1.9 %1.8 %(a)Reflects quarterly average of forecasted U.S. unemployment rate.(b)The year over year growth in U.S. real GDP in the forecast horizon of the central scenario is calculated as the percentage change in U.S. real GDP levels from the prior year.Subsequent changes to this forecast and related estimates will be reflected in the provision for credit losses in future periods.Refer to Note 12 for additional information on the consumer and wholesale credit portfolios. The following table presents the Firm's central case assumptions for the periods presented: Central case assumptions at December 31, 20252Q264Q262Q27U.S. unemployment rate(a)4.6 %4.4 %4.2 %YoY growth in U.S. real GDP(b)2.0 %1.8 %1.9 % --- ## Modified Risk: Long-term funding **Key changes:** - Updated: "The Firm's long-term funding plan is driven primarily by expected client activity, liquidity considerations and regulatory requirements." - Updated: "The increase in structured notes at December 31, 2025 from December 31, 2024, and for the average year ended December 31, 2025, compared to the prior year, was primarily driven by net issuances of structured notes in Markets due to client demand and an increase in the fair value of such instruments." - Updated: "Long-term unsecured fundingYear ended December 31,2025202420252024(Notional in millions)Parent CompanySubsidiariesIssuanceSenior notes issued in the U.S." **Prior (2025):** Long-term funding provides an additional source of stable funding and liquidity for the Firm. The Firm's long-term funding plan is driven primarily by expected client activity, liquidity considerations and regulatory requirements, including TLAC. Long-term funding objectives include maintaining diversification, maximizing market access and optimizing funding costs. The Firm evaluates various funding markets, tenors and currencies in creating its optimal long-term funding plan. Unsecured funding and issuance The significant majority of the Firm's total outstanding long-term debt has been issued by the Parent Company to provide flexibility in support of the funding needs of both bank and non-bank subsidiaries. The Parent Company advances substantially all net funding proceeds to its subsidiary, the IHC. The IHC does not issue debt to external counterparties. The increase in structured notes at December 31, 2024 from December 31, 2023, and for the average year ended December 31, 2024, compared to the prior year period, was primarily driven by net issuances of structured notes in Markets due to client demand. The following table summarizes long-term unsecured issuance and maturities or redemptions for the years ended December 31, 2024 and 2023. Refer to Note 20 for additional information on the IHC and long-term debt. Long-term unsecured fundingYear ended December 31,2024202320242023(Notional in millions)Parent CompanySubsidiariesIssuanceSenior notes issued in the U.S. market$37,000 $14,256 $ - $3,750 Senior notes issued in non-U.S. markets4,079 2,141 - - Total senior notes41,079 16,397 - 3,750 Structured notes(a)3,944 3,013 54,993 35,281 Total long-term unsecured funding - issuance$45,023 $19,410 $54,993 $39,031 Maturities/redemptionsSenior notes$25,765 $21,483 $65 $67 Subordinated debt3,097 2,090 250 - Structured notes892 1,532 47,425 28,777 Total long-term unsecured funding - maturities/redemptions$29,754 $25,105 $47,740 $28,844 Structured notes(a) **Current (2026):** Long-term funding provides an additional source of stable funding and liquidity for the Firm. The Firm's long-term funding plan is driven primarily by expected client activity, liquidity considerations and regulatory requirements. Long-term funding objectives include maintaining diversification, maximizing market access and optimizing funding costs through various funding markets, tenors and currencies. Unsecured funding and issuance The significant majority of the Firm's total outstanding long-term debt has been issued by the Parent Company to provide flexibility in support of the funding needs of both bank and non-bank subsidiaries. The Parent Company advances substantially all net funding proceeds to its subsidiary, the IHC. The IHC does not issue debt to external counterparties. The increase in structured notes at December 31, 2025 from December 31, 2024, and for the average year ended December 31, 2025, compared to the prior year, was primarily driven by net issuances of structured notes in Markets due to client demand and an increase in the fair value of such instruments. The following table summarizes long-term unsecured issuance and maturities or redemptions for the years ended December 31, 2025 and 2024. Refer to Note 20 for additional information on the IHC and long-term debt. Long-term unsecured fundingYear ended December 31,2025202420252024(Notional in millions)Parent CompanySubsidiariesIssuanceSenior notes issued in the U.S. market$19,000 $37,000 $ - $ - Senior notes issued in non-U.S. markets2,084 4,079 - - Total senior notes21,084 41,079 - - Subordinated debt4,000 - - - Structured notes(a)4,975 3,944 74,346 54,993 Total long-term unsecured funding - issuance$30,059 $45,023 $74,346 $54,993 Maturities/redemptionsSenior notes$22,457 $25,765 $65 $65 Subordinated debt317 3,097 - 250 Structured notes2,929 892 56,047 47,425 Total long-term unsecured funding - maturities/redemptions$25,703 $29,754 $56,112 $47,740 Structured notes(a) --- ## Modified Risk: Total premises and equipment **Key changes:** - Updated: "(a)Excluded $477 million and $564 million of right-of-use assets that were recorded in Other assets at December 31, 2025 and 2024, respectively." - Updated: "Note 17 - DepositsAs of December 31, 2025 and 2024, noninterest-bearing and interest-bearing deposits were as follows: December 31, (in millions)20252024U.S." - Updated: "As of December 31, 2025, the remaining maturities of interest-bearing time deposits were as follows:December 31,(in millions) U.S.Non-U.S.Total2026$223,575 $85,868 $309,443 2027746 - 746 2028195 - 195 2029612 - 612 2030156 - 156 After 5 years130 118 248 Total$225,414 $85,986 $311,400" **Prior (2025):** (a)Excluded $564 million and $514 million of right-of-use assets that were recorded in Other assets at December 31, 2024 and 2023, respectively. (b)Other premises and equipment is comprised of internal-use software and furniture and equipment. JPMorganChase computes depreciation using the straight-line method over the estimated useful life for buildings and furniture and equipment. The Firm depreciates leasehold improvements over the lesser of the remainder of the lease term or the estimated useful life. The Firm also capitalizes certain costs associated with the acquisition or development of internal-use software. Once the software is ready for its intended use, these costs are amortized on a straight-line basis over the software's expected useful life. The estimated useful lives range from 10 to 50 years for buildings and leasehold improvements, and 3 to 10 years for internal-use software and furniture and equipment. Impairment is assessed when events or changes in circumstances indicate that the carrying value of an asset may not be fully recoverable. Note 17 - Deposits As of December 31, 2024 and 2023, noninterest-bearing and interest-bearing deposits were as follows: December 31, (in millions)20242023U.S. officesNoninterest-bearing (included $28,904 and $75,393 at fair value)(a)$592,500 $643,748 Interest-bearing (included $1,101 and $573 at fair value)(a)1,345,914 1,303,100 Total deposits in U.S. offices1,938,414 1,946,848 Non-U.S. officesNoninterest-bearing (included $2,255 and $1,737 at fair value)(a)26,806 23,097 Interest-bearing (included $1,508 and $681 at fair value)(a)440,812 430,743 Total deposits in non-U.S. offices467,618 453,840 Total deposits$2,406,032 $2,400,688 (a)Includes structured notes classified as deposits for which the fair value option has been elected. Refer to Note 3 for further discussion.As of December 31, 2024 and 2023, time deposits in denominations that met or exceeded the insured limit were as follows:December 31, (in millions)20242023U.S. offices $149,239 $132,654 Non-U.S. offices(a)92,639 90,187 Total$241,878 $222,841 (a)Represents all time deposits in non-U.S. offices as these deposits typically exceed the insured limit. As of December 31, 2024, the remaining maturities of interest-bearing time deposits were as follows:December 31,(in millions) U.S.Non-U.S.Total2025$222,676 $89,427 $312,103 2026749 87 836 2027482 2 484 2028149 18 167 2029314 721 1,035 After 5 years162 129 291 Total$224,532 $90,384 $314,916 **Current (2026):** (a)Excluded $477 million and $564 million of right-of-use assets that were recorded in Other assets at December 31, 2025 and 2024, respectively. (b)Other premises and equipment is comprised of internal-use software and furniture and equipment. JPMorganChase computes depreciation using the straight-line method over the estimated useful life for buildings and furniture and equipment. The Firm depreciates leasehold improvements over the lesser of the remainder of the lease term or the estimated useful life. The Firm also capitalizes certain costs associated with the acquisition or development of internal-use software. Once the software is ready for its intended use, these costs are amortized on a straight-line basis over the software's expected useful life. The estimated useful lives range from 10 to 50 years for buildings and leasehold improvements, and 3 to 10 years for internal-use software and furniture and equipment. Impairment is assessed when events or changes in circumstances indicate that the carrying value of an asset may not be fully recoverable. Note 17 - DepositsAs of December 31, 2025 and 2024, noninterest-bearing and interest-bearing deposits were as follows: December 31, (in millions)20252024U.S. officesNoninterest-bearing (included $16,610 and $28,904 at fair value)(a)$583,342 $592,500 Interest-bearing (included $1,085 and $1,101 at fair value)(a)1,452,729 1,345,914 Total deposits in U.S. offices2,036,071 1,938,414 Non-U.S. officesNoninterest-bearing (included $3,099 and $2,255 at fair value)(a)37,057 26,806 Interest-bearing (included $136 and $1,508 at fair value)(a)486,192 440,812 Total deposits in non-U.S. offices523,249 467,618 Total deposits$2,559,320 $2,406,032 (a)Includes structured notes classified as deposits for which the fair value option has been elected. Refer to Note 3 for further discussion.As of December 31, 2025 and 2024, time deposits in denominations that met or exceeded the insured limit were as follows:December 31, (in millions)20252024U.S. offices $155,114 $149,239 Non-U.S. offices(a)89,085 92,639 Total$244,199 $241,878 (a)Represents all time deposits in non-U.S. offices as these deposits typically exceed the insured limit. As of December 31, 2025, the remaining maturities of interest-bearing time deposits were as follows:December 31,(in millions) U.S.Non-U.S.Total2026$223,575 $85,868 $309,443 2027746 - 746 2028195 - 195 2029612 - 612 2030156 - 156 After 5 years130 118 248 Total$225,414 $85,986 $311,400 --- ## Modified Risk: Short-term funding **Key changes:** - Updated: "Securities sold under agreements to repurchase increased at December 31, 2025, compared with December 31, 2024, driven by Markets, primarily reflecting higher secured financing of trading assets.The increases in secured other borrowed funds at December 31, 2025 from December 31, 2024, and for the average year ended December 31, 2025, compared to the prior year, were primarily due to higher financing requirements in Markets.The balances associated with securities loaned or sold under agreements to repurchase fluctuate over time due to investment and financing activities of clients, the Firm's demand for financing, the ongoing management of the mix of the Firm's liabilities, including with respect to liquidity and capital considerations, as well as other market and portfolio factors.The Firm's primary sources of short-term unsecured funding consist of issuances of wholesale commercial paper and other borrowed funds." - Updated: "Securities sold under agreements to repurchase increased at December 31, 2025, compared with December 31, 2024, driven by Markets, primarily reflecting higher secured financing of trading assets.The increases in secured other borrowed funds at December 31, 2025 from December 31, 2024, and for the average year ended December 31, 2025, compared to the prior year, were primarily due to higher financing requirements in Markets." - Updated: "Securities sold under agreements to repurchase increased at December 31, 2025, compared with December 31, 2024, driven by Markets, primarily reflecting higher secured financing of trading assets." - Updated: "The decrease in commercial paper for the year ended December 31, 2025, compared to the prior year, was primarily driven by strategic short-term liquidity management." **Prior (2025):** The Firm's primary source of short-term secured funding is securities sold under agreements to repurchase. These instruments are secured predominantly by high-quality securities collateral, including government-issued debt and U.S. GSE and government agency MBS. Securities sold under agreements to repurchase increased at December 31, 2024, compared with December 31, 2023, driven by Markets, reflecting higher client-driven market-making activities and higher secured financing of trading assets.The increase in secured other borrowed funds at December 31, 2024 from December 31, 2023, as well as the increase for the average year ended December 31, 2024, compared to the prior year period, were both due to higher financing requirements in Markets, partially offset by FHLB maturities in Treasury and CIO.The balances associated with securities loaned or sold under agreements to repurchase fluctuate over time due to investment and financing activities of clients, the Firm's demand for financing, the ongoing management of the mix of the Firm's liabilities, including its secured and unsecured financing (for both the investment securities and market-making portfolios), and other market and portfolio factors.The Firm's primary sources of short-term unsecured funding consist of issuances of wholesale commercial paper and other borrowed funds. The decrease in average commercial paper for the year ended December 31, 2024 compared to the prior year period was due to lower issuances primarily as a result of short-term liquidity management.The increase in unsecured other borrowed funds at December 31, 2024 from December 31, 2023, was predominantly driven by net issuances of structured notes in Markets. The Firm's primary source of short-term secured funding is securities sold under agreements to repurchase. These instruments are secured predominantly by high-quality securities collateral, including government-issued debt and U.S. GSE and government agency MBS. Securities sold under agreements to repurchase increased at December 31, 2024, compared with December 31, 2023, driven by Markets, reflecting higher client-driven market-making activities and higher secured financing of trading assets.The increase in secured other borrowed funds at December 31, 2024 from December 31, 2023, as well as the increase for the average year ended December 31, 2024, compared to the prior year period, were both due to higher financing requirements in Markets, partially offset by FHLB maturities in Treasury and CIO.The balances associated with securities loaned or sold under agreements to repurchase fluctuate over time due to investment and financing activities of clients, The Firm's primary source of short-term secured funding is securities sold under agreements to repurchase. These instruments are secured predominantly by high-quality securities collateral, including government-issued debt and U.S. GSE and government agency MBS. Securities sold under agreements to repurchase increased at December 31, 2024, compared with December 31, 2023, driven by Markets, reflecting higher client-driven market-making activities and higher secured financing of trading assets. The increase in secured other borrowed funds at December 31, 2024 from December 31, 2023, as well as the increase for the average year ended December 31, 2024, compared to the prior year period, were both due to higher financing requirements in Markets, partially offset by FHLB maturities in Treasury and CIO. The balances associated with securities loaned or sold under agreements to repurchase fluctuate over time due to investment and financing activities of clients, the Firm's demand for financing, the ongoing management of the mix of the Firm's liabilities, including its secured and unsecured financing (for both the investment securities and market-making portfolios), and other market and portfolio factors.The Firm's primary sources of short-term unsecured funding consist of issuances of wholesale commercial paper and other borrowed funds. The decrease in average commercial paper for the year ended December 31, 2024 compared to the prior year period was due to lower issuances primarily as a result of short-term liquidity management.The increase in unsecured other borrowed funds at December 31, 2024 from December 31, 2023, was predominantly driven by net issuances of structured notes in Markets. the Firm's demand for financing, the ongoing management of the mix of the Firm's liabilities, including its secured and unsecured financing (for both the investment securities and market-making portfolios), and other market and portfolio factors. The Firm's primary sources of short-term unsecured funding consist of issuances of wholesale commercial paper and other borrowed funds. The decrease in average commercial paper for the year ended December 31, 2024 compared to the prior year period was due to lower issuances primarily as a result of short-term liquidity management. The increase in unsecured other borrowed funds at December 31, 2024 from December 31, 2023, was predominantly driven by net issuances of structured notes in Markets. JPMorgan Chase & Co./2024 Form 10-K113 JPMorgan Chase & Co./2024 Form 10-K113 JPMorgan Chase & Co./2024 Form 10-K113 JPMorgan Chase & Co./2024 Form 10-K 113 **Current (2026):** The Firm's primary source of short-term secured funding is securities sold under agreements to repurchase. These instruments are secured predominantly by high-quality securities collateral, including government-issued debt and U.S. GSE and government agency MBS. Securities sold under agreements to repurchase increased at December 31, 2025, compared with December 31, 2024, driven by Markets, primarily reflecting higher secured financing of trading assets.The increases in secured other borrowed funds at December 31, 2025 from December 31, 2024, and for the average year ended December 31, 2025, compared to the prior year, were primarily due to higher financing requirements in Markets.The balances associated with securities loaned or sold under agreements to repurchase fluctuate over time due to investment and financing activities of clients, the Firm's demand for financing, the ongoing management of the mix of the Firm's liabilities, including with respect to liquidity and capital considerations, as well as other market and portfolio factors.The Firm's primary sources of short-term unsecured funding consist of issuances of wholesale commercial paper and other borrowed funds. The decrease in commercial paper for the year ended December 31, 2025, compared to the prior year, was primarily driven by strategic short-term liquidity management.The increase in unsecured other borrowed funds for the average year ended December 31, 2025, compared to the prior year, was primarily due to net issuances of structured notes in Markets due to client demand and an increase in the fair value of such instruments. The Firm's primary source of short-term secured funding is securities sold under agreements to repurchase. These instruments are secured predominantly by high-quality securities collateral, including government-issued debt and U.S. GSE and government agency MBS. Securities sold under agreements to repurchase increased at December 31, 2025, compared with December 31, 2024, driven by Markets, primarily reflecting higher secured financing of trading assets.The increases in secured other borrowed funds at December 31, 2025 from December 31, 2024, and for the average year ended December 31, 2025, compared to the prior year, were primarily due to higher financing requirements in Markets. The Firm's primary source of short-term secured funding is securities sold under agreements to repurchase. These instruments are secured predominantly by high-quality securities collateral, including government-issued debt and U.S. GSE and government agency MBS. Securities sold under agreements to repurchase increased at December 31, 2025, compared with December 31, 2024, driven by Markets, primarily reflecting higher secured financing of trading assets. The increases in secured other borrowed funds at December 31, 2025 from December 31, 2024, and for the average year ended December 31, 2025, compared to the prior year, were primarily due to higher financing requirements in Markets. The balances associated with securities loaned or sold under agreements to repurchase fluctuate over time due to investment and financing activities of clients, the Firm's demand for financing, the ongoing management of the mix of the Firm's liabilities, including with respect to liquidity and capital considerations, as well as other market and portfolio factors.The Firm's primary sources of short-term unsecured funding consist of issuances of wholesale commercial paper and other borrowed funds. The decrease in commercial paper for the year ended December 31, 2025, compared to the prior year, was primarily driven by strategic short-term liquidity management.The increase in unsecured other borrowed funds for the average year ended December 31, 2025, compared to the prior year, was primarily due to net issuances of structured notes in Markets due to client demand and an increase in the fair value of such instruments. The balances associated with securities loaned or sold under agreements to repurchase fluctuate over time due to investment and financing activities of clients, the Firm's demand for financing, the ongoing management of the mix of the Firm's liabilities, including with respect to liquidity and capital considerations, as well as other market and portfolio factors. The Firm's primary sources of short-term unsecured funding consist of issuances of wholesale commercial paper and other borrowed funds. The decrease in commercial paper for the year ended December 31, 2025, compared to the prior year, was primarily driven by strategic short-term liquidity management. The increase in unsecured other borrowed funds for the average year ended December 31, 2025, compared to the prior year, was primarily due to net issuances of structured notes in Markets due to client demand and an increase in the fair value of such instruments. JPMorgan Chase & Co./2025 Form 10-K105 JPMorgan Chase & Co./2025 Form 10-K105 JPMorgan Chase & Co./2025 Form 10-K105 JPMorgan Chase & Co./2025 Form 10-K 105 --- ## Modified Risk: Total mortgage origination volume(e) **Key changes:** - Updated: "MSR carrying value (period-end) Net yield on average loans New credit card accounts opened (in millions) Cards in force (in millions)(f) Loan and lease origination volume Average auto operating lease assets (a)Users of all web and/or mobile platforms who have logged in within the past 90 days." - Updated: "Refer to AWM segment results on pages 76-79 for additional information.(e)Firmwide mortgage origination volume was $63.4 billion, $47.4 billion and $41.4 billion for the years ended December 31, 2025, 2024 and 2023, respectively.(f)Represents the total number of open credit cards, inclusive of primary cardholders and authorized users." - Updated: "Markets & Securities Services also includes Securities Services, a leading global custodian that provides custody, fund services, liquidity and trading services, and data solutions products.Selected income statement dataYear ended December 31,(in millions)202520242023RevenueInvestment banking fees$9,735 $9,116 $6,631 Principal transactions27,226 24,382 23,794 Lending- and deposit-related fees5,177 3,914 3,423 Commissions and other fees5,985 5,278 4,879 Card income2,436 2,310 2,213 All other income3,207 3,253 2,869 Noninterest revenue53,766 48,253 43,809 Net interest income24,688 21,861 20,544 Total net revenue(a)78,454 70,114 64,353 Provision for credit losses2,615 762 2,091 Noninterest expenseCompensation expense19,345 18,191 17,105 Noncompensation expense18,871 17,162 16,867 Total noninterest expense38,216 35,353 33,972 Income before income tax expense37,623 33,999 28,290 Income tax expense9,862 9,153 8,018 Net income$27,761 $24,846 $20,272 (a)Included taxable-equivalent adjustments primarily from income tax credits from investments in alternative energy, affordable housing and new markets, income from tax-exempt securities and loans, and the related amortization and other tax benefits of the investments in alternative energy and affordable housing of $2.9 billion, $2.8 billion and $4.0 billion for the years ended December 31, 2025, 2024 and 2023, respectively." - Updated: "Refer to Notes 1, 6, 14 and 25 for additional information.Selected income statement dataYear ended December 31,(in millions, except ratios)202520242023Financial ratiosReturn on equity18 %18 %14 %Overhead ratio49 50 53 Compensation expense aspercentage of total net revenue25 26 27 Revenue by businessInvestment Banking$10,198$9,636$7,076Payments19,33118,08517,818Lending7,6017,4706,896Other676107Total Banking & Payments37,13635,26731,897Fixed Income Markets22,53220,06619,180Equity Markets13,2509,9418,784Securities Services5,5995,0844,772Credit Adjustments & Other(a)(63)(244)(280)Total Markets & Securities Services41,31834,84732,456Total net revenue$78,454 $70,114$64,353 (a)Consists primarily of centrally-managed credit valuation adjustments ("CVA"), funding valuation adjustments ("FVA") on derivatives, other valuation adjustments, and certain components of fair value option elected liabilities, which are primarily reported in principal transactions revenue." - Updated: "Markets & Securities Services also includes Securities Services, a leading global custodian that provides custody, fund services, liquidity and trading services, and data solutions products.Selected income statement dataYear ended December 31,(in millions)202520242023RevenueInvestment banking fees$9,735 $9,116 $6,631 Principal transactions27,226 24,382 23,794 Lending- and deposit-related fees5,177 3,914 3,423 Commissions and other fees5,985 5,278 4,879 Card income2,436 2,310 2,213 All other income3,207 3,253 2,869 Noninterest revenue53,766 48,253 43,809 Net interest income24,688 21,861 20,544 Total net revenue(a)78,454 70,114 64,353 Provision for credit losses2,615 762 2,091 Noninterest expenseCompensation expense19,345 18,191 17,105 Noncompensation expense18,871 17,162 16,867 Total noninterest expense38,216 35,353 33,972 Income before income tax expense37,623 33,999 28,290 Income tax expense9,862 9,153 8,018 Net income$27,761 $24,846 $20,272 The Commercial & Investment Bank is comprised of the Banking & Payments and Markets & Securities Services businesses." **Prior (2025):** MSR carrying value (period-end) Net yield on average loans New credit card accounts opened (in millions) Loan and lease origination volume Average auto operating lease assets (a)Users of all web and/or mobile platforms who have logged in within the past 90 days.(b)Users of all mobile platforms who have logged in within the past 90 days.(c)Total payments transaction volume includes debit and credit card sales volume and gross outflows of ACH, ATM, teller, wires, BillPay, PayChase, Zelle, person-to-person and checks. (d)Includes assets invested in managed accounts and J.P. Morgan mutual funds where AWM is the investment manager. Refer to AWM segment results on pages 84-87 for additional information.(e)Firmwide mortgage origination volume was $47.4 billion, $41.4 billion and $81.8 billion for the years ended December 31, 2024, 2023 and 2022, respectively. (a)Users of all web and/or mobile platforms who have logged in within the past 90 days. (b)Users of all mobile platforms who have logged in within the past 90 days. (c)Total payments transaction volume includes debit and credit card sales volume and gross outflows of ACH, ATM, teller, wires, BillPay, PayChase, Zelle, person-to-person and checks. (d)Includes assets invested in managed accounts and J.P. Morgan mutual funds where AWM is the investment manager. Refer to AWM segment results on pages 84-87 for additional information. (e)Firmwide mortgage origination volume was $47.4 billion, $41.4 billion and $81.8 billion for the years ended December 31, 2024, 2023 and 2022, respectively. 76JPMorgan Chase & Co./2024 Form 10-K 76JPMorgan Chase & Co./2024 Form 10-K 76JPMorgan Chase & Co./2024 Form 10-K 76 JPMorgan Chase & Co./2024 Form 10-K COMMERCIAL & INVESTMENT BANK(a) COMMERCIAL & INVESTMENT BANK(a) The Commercial & Investment Bank is comprised of the Banking & Payments and Markets & Securities Services businesses. These businesses offer investment banking, lending, payments, market-making, financing, custody and securities products and services to a global base of corporate and institutional clients. Banking & Payments offers products and services in all major capital markets, including advising on corporate strategy and structure, capital-raising in equity and debt markets, and loan origination and syndication. Banking & Payments also provides services that enable clients to manage payments globally across liquidity and account solutions, commerce solutions, clearing, trade, and working capital. Markets & Securities Services includes Markets, which is a global market-maker across products, including cash and derivative instruments, and also offers sophisticated risk management solutions, lending, prime brokerage, clearing and research. Markets & Securities Services also includes Securities Services, a leading global custodian that provides custody, fund services, liquidity and trading services, and data solutions products.(a)Reflects the reorganization of the Firm's business segments in the second quarter of 2024. Refer to Business Segment & Corporate Results on pages 70-90 for additional information.Selected income statement dataYear ended December 31,(in millions)202420232022RevenueInvestment banking fees$9,116 $6,631 $6,977 Principal transactions24,382 23,794 19,792 Lending- and deposit-related fees3,914 3,423 3,662 Commissions and other fees5,278 4,879 5,113 Card income2,310 2,213 1,934 All other income3,253 2,869 2,060 Noninterest revenue48,253 43,809 39,538 Net interest income21,861 20,544 20,097 Total net revenue(a)70,114 64,353 59,635 Provision for credit losses762 2,091 2,426 Noninterest expenseCompensation expense18,191 17,105 16,214 Noncompensation expense17,162 16,867 15,855 Total noninterest expense35,353 33,972 32,069 Income before income tax expense33,999 28,290 25,140 Income tax expense9,153 8,018 6,002 Net income$24,846 $20,272 $19,138 (a)Included tax equivalent adjustments primarily from income tax credits from investments in alternative energy, affordable housing and new markets, income from tax-exempt securities and loans, and the related amortization and other tax benefits of the investments in alternative energy and affordable housing of $2.8 billion, $4.0 billion and $3.3 billion for the years ended December 31, 2024, 2023 and 2022, respectively. Effective January 1, 2024, the Firm adopted updates to the Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method guidance, under the modified retrospective method. Refer to Notes 1, 6, 14 and 25 for additional information.Selected income statement dataYear ended December 31,(in millions, except ratios)202420232022Financial ratiosReturn on equity18 %14 %14 %Overhead ratio50 53 54 Compensation expense aspercentage of total net revenue26 27 27 Revenue by businessInvestment Banking$9,636$7,076$7,205Payments18,08517,81813,490Lending7,4706,8965,882Other76107244Total Banking & Payments35,26731,89726,821Fixed Income Markets(a)20,06619,18019,074Equity Markets(a)9,9418,78410,088Securities Services5,0844,7724,488Credit Adjustments & Other(b)(244)(280)(836)Total Markets & Securities Services34,84732,45632,814Total net revenue$70,114 $64,353$59,635 (a)In the fourth quarter of 2024, certain net funding costs that were previously allocated to Fixed Income Markets were reclassified to Equity Markets. Prior-period amounts have been revised to conform with the current presentation.(b)Consists primarily of centrally-managed credit valuation adjustments ("CVA"), funding valuation adjustments ("FVA") on derivatives, other valuation adjustments, and certain components of fair value option elected liabilities, which are primarily reported in principal transactions revenue. Results are presented net of associated hedging activities and net of CVA and FVA amounts allocated to Fixed Income Markets and Equity Markets. Refer to Notes 2, 3 and 24 for additional information. The Commercial & Investment Bank is comprised of the Banking & Payments and Markets & Securities Services businesses. These businesses offer investment banking, lending, payments, market-making, financing, custody and securities products and services to a global base of corporate and institutional clients. Banking & Payments offers products and services in all major capital markets, including advising on corporate strategy and structure, capital-raising in equity and debt markets, and loan origination and syndication. Banking & Payments also provides services that enable clients to manage payments globally across liquidity and account solutions, commerce solutions, clearing, trade, and working capital. Markets & Securities Services includes Markets, which is a global market-maker across products, including cash and derivative instruments, and also offers sophisticated risk management solutions, lending, prime brokerage, clearing and research. Markets & Securities Services also includes Securities Services, a leading global custodian that provides custody, fund services, liquidity and trading services, and data solutions products.(a)Reflects the reorganization of the Firm's business segments in the second quarter of 2024. Refer to Business Segment & Corporate Results on pages 70-90 for additional information.Selected income statement dataYear ended December 31,(in millions)202420232022RevenueInvestment banking fees$9,116 $6,631 $6,977 Principal transactions24,382 23,794 19,792 Lending- and deposit-related fees3,914 3,423 3,662 Commissions and other fees5,278 4,879 5,113 Card income2,310 2,213 1,934 All other income3,253 2,869 2,060 Noninterest revenue48,253 43,809 39,538 Net interest income21,861 20,544 20,097 Total net revenue(a)70,114 64,353 59,635 Provision for credit losses762 2,091 2,426 Noninterest expenseCompensation expense18,191 17,105 16,214 Noncompensation expense17,162 16,867 15,855 Total noninterest expense35,353 33,972 32,069 Income before income tax expense33,999 28,290 25,140 Income tax expense9,153 8,018 6,002 Net income$24,846 $20,272 $19,138 The Commercial & Investment Bank is comprised of the Banking & Payments and Markets & Securities Services businesses. These businesses offer investment banking, lending, payments, market-making, financing, custody and securities products and services to a global base of corporate and institutional clients. Banking & Payments offers products and services in all major capital markets, including advising on corporate strategy and structure, capital-raising in equity and debt markets, and loan origination and syndication. Banking & Payments also provides services that enable clients to manage payments globally across liquidity and account solutions, commerce solutions, clearing, trade, and working capital. Markets & Securities Services includes Markets, which is a global market-maker across products, including cash and derivative instruments, and also offers sophisticated risk management solutions, lending, prime brokerage, clearing and research. Markets & Securities Services also includes Securities Services, a leading global custodian that provides custody, fund services, liquidity and trading services, and data solutions products. The Commercial & Investment Bank is comprised of the Banking & Payments and Markets & Securities Services businesses. These businesses offer investment banking, lending, payments, market-making, financing, custody and securities products and services to a global base of corporate and institutional clients. Banking & Payments offers products and services in all major capital markets, including advising on corporate strategy and structure, capital-raising in equity and debt markets, and loan origination and syndication. Banking & Payments also provides services that enable clients to manage payments globally across liquidity and account solutions, commerce solutions, clearing, trade, and working capital. Markets & Securities Services includes Markets, which is a global market-maker across products, including cash and derivative instruments, and also offers sophisticated risk management solutions, lending, prime brokerage, clearing and research. Markets & Securities Services also includes Securities Services, a leading global custodian that provides custody, fund services, liquidity and trading services, and data solutions products. (a)Reflects the reorganization of the Firm's business segments in the second quarter of 2024. Refer to Business Segment & Corporate Results on pages 70-90 for additional information. Selected income statement dataYear ended December 31,(in millions)202420232022RevenueInvestment banking fees$9,116 $6,631 $6,977 Principal transactions24,382 23,794 19,792 Lending- and deposit-related fees3,914 3,423 3,662 Commissions and other fees5,278 4,879 5,113 Card income2,310 2,213 1,934 All other income3,253 2,869 2,060 Noninterest revenue48,253 43,809 39,538 Net interest income21,861 20,544 20,097 Total net revenue(a)70,114 64,353 59,635 Provision for credit losses762 2,091 2,426 Noninterest expenseCompensation expense18,191 17,105 16,214 Noncompensation expense17,162 16,867 15,855 Total noninterest expense35,353 33,972 32,069 Income before income tax expense33,999 28,290 25,140 Income tax expense9,153 8,018 6,002 Net income$24,846 $20,272 $19,138 **Current (2026):** MSR carrying value (period-end) Net yield on average loans New credit card accounts opened (in millions) Cards in force (in millions)(f) Loan and lease origination volume Average auto operating lease assets (a)Users of all web and/or mobile platforms who have logged in within the past 90 days. (b)Users of all mobile platforms who have logged in within the past 90 days. (c)Total payments transaction volume includes debit and credit card sales volume and gross outflows of ACH, ATM, teller, wires, BillPay, PayChase, Zelle, person-to-person and checks. (d)Includes assets invested in managed accounts and J.P. Morgan mutual funds where AWM is the investment manager. Refer to AWM segment results on pages 76-79 for additional information.(e)Firmwide mortgage origination volume was $63.4 billion, $47.4 billion and $41.4 billion for the years ended December 31, 2025, 2024 and 2023, respectively.(f)Represents the total number of open credit cards, inclusive of primary cardholders and authorized users. (c)Total payments transaction volume includes debit and credit card sales volume and gross outflows of ACH, ATM, teller, wires, BillPay, PayChase, Zelle, person-to-person and checks. (d)Includes assets invested in managed accounts and J.P. Morgan mutual funds where AWM is the investment manager. Refer to AWM segment results on pages 76-79 for additional information. (e)Firmwide mortgage origination volume was $63.4 billion, $47.4 billion and $41.4 billion for the years ended December 31, 2025, 2024 and 2023, respectively. (f)Represents the total number of open credit cards, inclusive of primary cardholders and authorized users. 68JPMorgan Chase & Co./2025 Form 10-K 68JPMorgan Chase & Co./2025 Form 10-K 68JPMorgan Chase & Co./2025 Form 10-K 68 JPMorgan Chase & Co./2025 Form 10-K COMMERCIAL & INVESTMENT BANK COMMERCIAL & INVESTMENT BANK The Commercial & Investment Bank is comprised of the Banking & Payments and Markets & Securities Services businesses. These businesses offer investment banking, lending, payments, market-making, financing, custody and securities products and services to a global base of corporate and institutional clients. Banking & Payments offers products and services in all major capital markets, including advising on corporate strategy and structure, capital-raising in equity and debt markets, and loan origination and syndication. Banking & Payments also provides services that enable clients to manage payments globally across liquidity and account solutions, commerce solutions, clearing, trade, and working capital. Markets & Securities Services includes Markets, which is a global market-maker across products, including cash and derivative instruments, and also offers sophisticated risk management solutions, lending, prime brokerage, clearing and research. Markets & Securities Services also includes Securities Services, a leading global custodian that provides custody, fund services, liquidity and trading services, and data solutions products.Selected income statement dataYear ended December 31,(in millions)202520242023RevenueInvestment banking fees$9,735 $9,116 $6,631 Principal transactions27,226 24,382 23,794 Lending- and deposit-related fees5,177 3,914 3,423 Commissions and other fees5,985 5,278 4,879 Card income2,436 2,310 2,213 All other income3,207 3,253 2,869 Noninterest revenue53,766 48,253 43,809 Net interest income24,688 21,861 20,544 Total net revenue(a)78,454 70,114 64,353 Provision for credit losses2,615 762 2,091 Noninterest expenseCompensation expense19,345 18,191 17,105 Noncompensation expense18,871 17,162 16,867 Total noninterest expense38,216 35,353 33,972 Income before income tax expense37,623 33,999 28,290 Income tax expense9,862 9,153 8,018 Net income$27,761 $24,846 $20,272 (a)Included taxable-equivalent adjustments primarily from income tax credits from investments in alternative energy, affordable housing and new markets, income from tax-exempt securities and loans, and the related amortization and other tax benefits of the investments in alternative energy and affordable housing of $2.9 billion, $2.8 billion and $4.0 billion for the years ended December 31, 2025, 2024 and 2023, respectively. Effective January 1, 2024, the Firm adopted updates to the Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method guidance, under the modified retrospective method. Refer to Notes 1, 6, 14 and 25 for additional information.Selected income statement dataYear ended December 31,(in millions, except ratios)202520242023Financial ratiosReturn on equity18 %18 %14 %Overhead ratio49 50 53 Compensation expense aspercentage of total net revenue25 26 27 Revenue by businessInvestment Banking$10,198$9,636$7,076Payments19,33118,08517,818Lending7,6017,4706,896Other676107Total Banking & Payments37,13635,26731,897Fixed Income Markets22,53220,06619,180Equity Markets13,2509,9418,784Securities Services5,5995,0844,772Credit Adjustments & Other(a)(63)(244)(280)Total Markets & Securities Services41,31834,84732,456Total net revenue$78,454 $70,114$64,353 (a)Consists primarily of centrally-managed credit valuation adjustments ("CVA"), funding valuation adjustments ("FVA") on derivatives, other valuation adjustments, and certain components of fair value option elected liabilities, which are primarily reported in principal transactions revenue. Results are presented net of associated hedging activities and net of CVA and FVA amounts allocated to Fixed Income Markets and Equity Markets. Refer to Notes 2, 3 and 24 for additional information. The Commercial & Investment Bank is comprised of the Banking & Payments and Markets & Securities Services businesses. These businesses offer investment banking, lending, payments, market-making, financing, custody and securities products and services to a global base of corporate and institutional clients. Banking & Payments offers products and services in all major capital markets, including advising on corporate strategy and structure, capital-raising in equity and debt markets, and loan origination and syndication. Banking & Payments also provides services that enable clients to manage payments globally across liquidity and account solutions, commerce solutions, clearing, trade, and working capital. Markets & Securities Services includes Markets, which is a global market-maker across products, including cash and derivative instruments, and also offers sophisticated risk management solutions, lending, prime brokerage, clearing and research. Markets & Securities Services also includes Securities Services, a leading global custodian that provides custody, fund services, liquidity and trading services, and data solutions products.Selected income statement dataYear ended December 31,(in millions)202520242023RevenueInvestment banking fees$9,735 $9,116 $6,631 Principal transactions27,226 24,382 23,794 Lending- and deposit-related fees5,177 3,914 3,423 Commissions and other fees5,985 5,278 4,879 Card income2,436 2,310 2,213 All other income3,207 3,253 2,869 Noninterest revenue53,766 48,253 43,809 Net interest income24,688 21,861 20,544 Total net revenue(a)78,454 70,114 64,353 Provision for credit losses2,615 762 2,091 Noninterest expenseCompensation expense19,345 18,191 17,105 Noncompensation expense18,871 17,162 16,867 Total noninterest expense38,216 35,353 33,972 Income before income tax expense37,623 33,999 28,290 Income tax expense9,862 9,153 8,018 Net income$27,761 $24,846 $20,272 The Commercial & Investment Bank is comprised of the Banking & Payments and Markets & Securities Services businesses. These businesses offer investment banking, lending, payments, market-making, financing, custody and securities products and services to a global base of corporate and institutional clients. Banking & Payments offers products and services in all major capital markets, including advising on corporate strategy and structure, capital-raising in equity and debt markets, and loan origination and syndication. Banking & Payments also provides services that enable clients to manage payments globally across liquidity and account solutions, commerce solutions, clearing, trade, and working capital. Markets & Securities Services includes Markets, which is a global market-maker across products, including cash and derivative instruments, and also offers sophisticated risk management solutions, lending, prime brokerage, clearing and research. Markets & Securities Services also includes Securities Services, a leading global custodian that provides custody, fund services, liquidity and trading services, and data solutions products. The Commercial & Investment Bank is comprised of the Banking & Payments and Markets & Securities Services businesses. These businesses offer investment banking, lending, payments, market-making, financing, custody and securities products and services to a global base of corporate and institutional clients. Banking & Payments offers products and services in all major capital markets, including advising on corporate strategy and structure, capital-raising in equity and debt markets, and loan origination and syndication. Banking & Payments also provides services that enable clients to manage payments globally across liquidity and account solutions, commerce solutions, clearing, trade, and working capital. Markets & Securities Services includes Markets, which is a global market-maker across products, including cash and derivative instruments, and also offers sophisticated risk management solutions, lending, prime brokerage, clearing and research. Markets & Securities Services also includes Securities Services, a leading global custodian that provides custody, fund services, liquidity and trading services, and data solutions products. Selected income statement dataYear ended December 31,(in millions)202520242023RevenueInvestment banking fees$9,735 $9,116 $6,631 Principal transactions27,226 24,382 23,794 Lending- and deposit-related fees5,177 3,914 3,423 Commissions and other fees5,985 5,278 4,879 Card income2,436 2,310 2,213 All other income3,207 3,253 2,869 Noninterest revenue53,766 48,253 43,809 Net interest income24,688 21,861 20,544 Total net revenue(a)78,454 70,114 64,353 Provision for credit losses2,615 762 2,091 Noninterest expenseCompensation expense19,345 18,191 17,105 Noncompensation expense18,871 17,162 16,867 Total noninterest expense38,216 35,353 33,972 Income before income tax expense37,623 33,999 28,290 Income tax expense9,862 9,153 8,018 Net income$27,761 $24,846 $20,272 --- ## Modified Risk: Total liabilities and stockholders' equity **Key changes:** - Updated: "Deposits increased, reflecting:•an increase in CIB due to net inflows related to client-driven activities in Payments and Securities Services,•an increase in CCB primarily driven by new accounts, predominantly offset by increased customer spending, and •an increase in AWM primarily driven by growth in both new accounts and balances in existing accounts, including the impact of higher-yielding product offerings, largely offset by migration into other investment products.Federal funds purchased and securities loaned or sold under repurchase agreements increased driven by Markets, primarily reflecting higher secured financing of trading assets.Short-term borrowings increased driven by higher financing requirements in Markets.Refer to Liquidity Risk Management on pages 100-107 for additional information on deposits, federal funds purchased and securities loaned or sold under repurchase agreements, and short-term borrowings; Notes 2 and 17 for deposits; and Note 11 for federal funds purchased and securities loaned or sold under repurchase agreements.Trading liabilities increased due to client-driven market-making activities, which resulted in higher levels of short positions, as well as higher derivative payables, primarily as a result of market movements." - Updated: "Accounts payable and other liabilities increased predominantly due to higher brokerage payables related to client-driven activities in Markets." - Updated: "Accounts payable and other liabilities increased predominantly due to higher brokerage payables related to client-driven activities in Markets." - Updated: "Accounts payable and other liabilities increased predominantly due to higher brokerage payables related to client-driven activities in Markets." - Updated: "The Firm believes that cash flows from operations, available cash and other liquidity sources, and its capacity to generate cash through secured and unsecured sources, are sufficient to meet its operating liquidity needs.•In 2025, cash used resulted from higher trading assets, higher securities borrowed, net originations and purchases of loans held-for-sale, higher other assets and higher accrued interest and accounts receivable, partially offset by net income excluding non-cash adjustments, and higher trading liabilities." **Prior (2025):** Deposits increased, reflecting:•an increase in CIB due to net inflows predominantly in Payments, largely offset by net maturities of structured notes in Markets,•an increase in AWM as a result of growth in balances in new and existing client accounts, reflecting the impact of higher-yielding product offerings, largely offset by continued migration into other investments, and•a decline in CCB primarily driven by a decrease in balances in existing accounts due to increased customer spending and migration into higher-yielding investments, predominantly offset by new accounts.Federal funds purchased and securities loaned or sold under repurchase agreements increased driven by Markets, reflecting higher client-driven market-making activities and higher secured financing of trading assets.Short-term borrowings increased driven by Markets, reflecting net issuance of structured notes due to client demand, and higher financing requirements.Refer to Liquidity Risk Management on pages 108-115 for additional information on deposits, federal funds purchased and securities loaned or sold under repurchase agreements, and short-term borrowings; Notes 2 and 17 for deposits; and Note 11 for federal funds purchased and securities loaned or sold under repurchase agreements.Trading liabilities increased due to client-driven market-making activities primarily in Fixed Income Markets, which resulted in higher levels of short positions in debt instruments. Refer to Notes 2 and 5 for additional information. Deposits increased, reflecting:•an increase in CIB due to net inflows predominantly in Payments, largely offset by net maturities of structured notes in Markets,•an increase in AWM as a result of growth in balances in new and existing client accounts, reflecting the impact of higher-yielding product offerings, largely offset by continued migration into other investments, and•a decline in CCB primarily driven by a decrease in balances in existing accounts due to increased customer spending and migration into higher-yielding investments, predominantly offset by new accounts.Federal funds purchased and securities loaned or sold under repurchase agreements increased driven by Markets, reflecting higher client-driven market-making activities and higher secured financing of trading assets. Deposits increased, reflecting: •an increase in CIB due to net inflows predominantly in Payments, largely offset by net maturities of structured notes in Markets, •an increase in AWM as a result of growth in balances in new and existing client accounts, reflecting the impact of higher-yielding product offerings, largely offset by continued migration into other investments, and •a decline in CCB primarily driven by a decrease in balances in existing accounts due to increased customer spending and migration into higher-yielding investments, predominantly offset by new accounts. Federal funds purchased and securities loaned or sold under repurchase agreements increased driven by Markets, reflecting higher client-driven market-making activities and higher secured financing of trading assets. Short-term borrowings increased driven by Markets, reflecting net issuance of structured notes due to client demand, and higher financing requirements.Refer to Liquidity Risk Management on pages 108-115 for additional information on deposits, federal funds purchased and securities loaned or sold under repurchase agreements, and short-term borrowings; Notes 2 and 17 for deposits; and Note 11 for federal funds purchased and securities loaned or sold under repurchase agreements.Trading liabilities increased due to client-driven market-making activities primarily in Fixed Income Markets, which resulted in higher levels of short positions in debt instruments. Refer to Notes 2 and 5 for additional information. Short-term borrowings increased driven by Markets, reflecting net issuance of structured notes due to client demand, and higher financing requirements. Refer to Liquidity Risk Management on pages 108-115 for additional information on deposits, federal funds purchased and securities loaned or sold under repurchase agreements, and short-term borrowings; Notes 2 and 17 for deposits; and Note 11 for federal funds purchased and securities loaned or sold under repurchase agreements. Trading liabilities increased due to client-driven market-making activities primarily in Fixed Income Markets, which resulted in higher levels of short positions in debt instruments. Refer to Notes 2 and 5 for additional information. 64JPMorgan Chase & Co./2024 Form 10-K 64JPMorgan Chase & Co./2024 Form 10-K 64JPMorgan Chase & Co./2024 Form 10-K 64 JPMorgan Chase & Co./2024 Form 10-K Accounts payable and other liabilities decreased primarily driven by lower payables in Payments related to the timing of processing payment activities, due to December 31, 2023 falling on a weekend, as well as lower client payables related to client-driven activities in Markets, partially offset by the impact of the adoption of updates to the Accounting for Investments in Tax Credit Structures guidance effective January 1, 2024. Refer to Note 19 for additional information on accounts payable; and Notes 1, 6, 14 and 25 for additional information on updates to the accounting guidance.Beneficial interests issued by consolidated VIEs increased driven by the issuance of credit card securitizations in Treasury and CIO, and activity in municipal bond vehicles in CIB.Refer to Liquidity Risk Management on pages 108-115; and Notes 14 and 28 for additional information on Firm-sponsored VIEs and loan securitization trusts.Long-term debt increased, primarily driven by:•net issuances of structured notes in Markets due to client demand,partially offset by•a decline in Treasury and CIO, reflecting the net impact of lower FHLB advances and higher long-term debt from net issuances.Refer to Liquidity Risk Management on pages 108-115 and Note 34 for additional information on the First Republic acquisition.Stockholders' equity increased, reflecting:•net income,largely offset by •the impact of capital actions, including repurchases of common shares, the declaration of common and preferred stock dividends, and net redemption of preferred stock, and •net unrealized losses in AOCI, including the impact of higher interest rates on cash flow hedges in Treasury and CIO. Refer to Consolidated Statements of changes in stockholders' equity on page 175, Capital Actions on page 105, and Note 24 for additional information. Accounts payable and other liabilities decreased primarily driven by lower payables in Payments related to the timing of processing payment activities, due to December 31, 2023 falling on a weekend, as well as lower client payables related to client-driven activities in Markets, partially offset by the impact of the adoption of updates to the Accounting for Investments in Tax Credit Structures guidance effective January 1, 2024. Refer to Note 19 for additional information on accounts payable; and Notes 1, 6, 14 and 25 for additional information on updates to the accounting guidance.Beneficial interests issued by consolidated VIEs increased driven by the issuance of credit card securitizations in Treasury and CIO, and activity in municipal bond vehicles in CIB.Refer to Liquidity Risk Management on pages 108-115; and Notes 14 and 28 for additional information on Firm-sponsored VIEs and loan securitization trusts. Accounts payable and other liabilities decreased primarily driven by lower payables in Payments related to the timing of processing payment activities, due to December 31, 2023 falling on a weekend, as well as lower client payables related to client-driven activities in Markets, partially offset by the impact of the adoption of updates to the Accounting for Investments in Tax Credit Structures guidance effective January 1, 2024. Refer to Note 19 for additional information on accounts payable; and Notes 1, 6, 14 and 25 for additional information on updates to the accounting guidance. Beneficial interests issued by consolidated VIEs increased driven by the issuance of credit card securitizations in Treasury and CIO, and activity in municipal bond vehicles in CIB. Refer to Liquidity Risk Management on pages 108-115; and Notes 14 and 28 for additional information on Firm-sponsored VIEs and loan securitization trusts. Long-term debt increased, primarily driven by:•net issuances of structured notes in Markets due to client demand,partially offset by•a decline in Treasury and CIO, reflecting the net impact of lower FHLB advances and higher long-term debt from net issuances.Refer to Liquidity Risk Management on pages 108-115 and Note 34 for additional information on the First Republic acquisition.Stockholders' equity increased, reflecting:•net income,largely offset by •the impact of capital actions, including repurchases of common shares, the declaration of common and preferred stock dividends, and net redemption of preferred stock, and •net unrealized losses in AOCI, including the impact of higher interest rates on cash flow hedges in Treasury and CIO. Refer to Consolidated Statements of changes in stockholders' equity on page 175, Capital Actions on page 105, and Note 24 for additional information. Long-term debt increased, primarily driven by: •net issuances of structured notes in Markets due to client demand, partially offset by •a decline in Treasury and CIO, reflecting the net impact of lower FHLB advances and higher long-term debt from net issuances. Refer to Liquidity Risk Management on pages 108-115 and Note 34 for additional information on the First Republic acquisition. Stockholders' equity increased, reflecting: •net income, largely offset by •the impact of capital actions, including repurchases of common shares, the declaration of common and preferred stock dividends, and net redemption of preferred stock, and •net unrealized losses in AOCI, including the impact of higher interest rates on cash flow hedges in Treasury and CIO. Refer to Consolidated Statements of changes in stockholders' equity on page 175, Capital Actions on page 105, and Note 24 for additional information. JPMorgan Chase & Co./2024 Form 10-K65 JPMorgan Chase & Co./2024 Form 10-K65 JPMorgan Chase & Co./2024 Form 10-K65 JPMorgan Chase & Co./2024 Form 10-K 65 Consolidated cash flows analysisThe following is a discussion of cash flow activities during the years ended December 31, 2024 and 2023. Refer to Consolidated cash flows analysis on page 61 of the Firm's 2023 Form 10-K for a discussion of the 2022 activities.(in millions)Year ended December 31,202420232022Net cash provided by/(used in)Operating activities$(42,012)$12,974 $107,119 Investing activities(163,403)67,643 (137,819)Financing activities63,447 (25,571)(126,257)Effect of exchange rate changes on cash(12,866)1,871 (16,643)Net increase/(decrease) in cash and due from banks and deposits with banks$(154,834)$56,917 $(173,600)Operating activities JPMorganChase's operating assets and liabilities primarily support the Firm's lending and capital markets activities. These assets and liabilities can vary significantly in the normal course of business due to the amount and timing of cash flows, which are affected by client-driven and risk management activities and market conditions. The Firm believes that cash flows from operations, available cash and other liquidity sources, and its capacity to generate cash through secured and unsecured sources, are sufficient to meet its operating liquidity needs.•In 2024, cash used resulted from higher trading assets and higher securities borrowed, largely offset by net income. •In 2023, cash provided primarily reflected net income, lower other assets, and accrued interest and accounts receivable, predominantly offset by higher trading assets, lower accounts payable and other liabilities, and higher securities borrowed.Investing activitiesThe Firm's investing activities predominantly include originating held-for-investment loans, investing in the investment securities portfolio and other short-term instruments.•In 2024, cash used resulted from net purchases of investment securities, net loan originations and higher securities purchased under resale agreements, partially offset by proceeds from sales and securitizations of loans held-for-investment. •In 2023, cash provided resulted from net proceeds from investment securities, proceeds from sales and securitizations of loans held-for-investment, and lower securities purchased under resale agreements, largely offset by net originations of loans and net cash used in the First Republic Bank acquisition.Financing activitiesThe Firm's financing activities include acquiring customer deposits and issuing long-term debt and preferred stock.•In 2024, cash provided primarily reflected higher securities loaned or sold under repurchase agreements and net proceeds from long- and short-term borrowings, partially offset by net redemption of preferred stock.•In 2023, cash used reflected lower deposits, which included the impact of the repayment of the deposits provided to First Republic Bank by the consortium of large U.S. banks that the Firm assumed as part of the First Republic acquisition, partially offset by higher securities loaned under repurchase agreements and net proceeds from long- and short-term borrowings.•For both periods, cash was used for repurchases of common stock and cash dividends on common and preferred stock.* * *Refer to Consolidated Balance Sheets Analysis on pages 63-65, Capital Risk Management on pages 97-107, and Liquidity Risk Management on pages 108-115, and the Consolidated Statements of Cash Flows on page 176 for a further discussion of the activities affecting the Firm's cash flows. Consolidated cash flows analysisThe following is a discussion of cash flow activities during the years ended December 31, 2024 and 2023. Refer to Consolidated cash flows analysis on page 61 of the Firm's 2023 Form 10-K for a discussion of the 2022 activities.(in millions)Year ended December 31,202420232022Net cash provided by/(used in)Operating activities$(42,012)$12,974 $107,119 Investing activities(163,403)67,643 (137,819)Financing activities63,447 (25,571)(126,257)Effect of exchange rate changes on cash(12,866)1,871 (16,643)Net increase/(decrease) in cash and due from banks and deposits with banks$(154,834)$56,917 $(173,600)Operating activities JPMorganChase's operating assets and liabilities primarily support the Firm's lending and capital markets activities. These assets and liabilities can vary significantly in the normal course of business due to the amount and timing of cash flows, which are affected by client-driven and risk management activities and market conditions. The Firm believes that cash flows from operations, available cash and other liquidity sources, and its capacity to generate cash through secured and unsecured sources, are sufficient to meet its operating liquidity needs.•In 2024, cash used resulted from higher trading assets and higher securities borrowed, largely offset by net income. •In 2023, cash provided primarily reflected net income, lower other assets, and accrued interest and accounts receivable, predominantly offset by higher trading assets, lower accounts payable and other liabilities, and higher securities borrowed. **Current (2026):** Deposits increased, reflecting:•an increase in CIB due to net inflows related to client-driven activities in Payments and Securities Services,•an increase in CCB primarily driven by new accounts, predominantly offset by increased customer spending, and •an increase in AWM primarily driven by growth in both new accounts and balances in existing accounts, including the impact of higher-yielding product offerings, largely offset by migration into other investment products.Federal funds purchased and securities loaned or sold under repurchase agreements increased driven by Markets, primarily reflecting higher secured financing of trading assets.Short-term borrowings increased driven by higher financing requirements in Markets.Refer to Liquidity Risk Management on pages 100-107 for additional information on deposits, federal funds purchased and securities loaned or sold under repurchase agreements, and short-term borrowings; Notes 2 and 17 for deposits; and Note 11 for federal funds purchased and securities loaned or sold under repurchase agreements.Trading liabilities increased due to client-driven market-making activities, which resulted in higher levels of short positions, as well as higher derivative payables, primarily as a result of market movements. Refer to Notes 2 and 5 for additional information. Accounts payable and other liabilities increased predominantly due to higher brokerage payables related to client-driven activities in Markets. Refer to Note 19 for additional information on accounts payable. Deposits increased, reflecting:•an increase in CIB due to net inflows related to client-driven activities in Payments and Securities Services,•an increase in CCB primarily driven by new accounts, predominantly offset by increased customer spending, and •an increase in AWM primarily driven by growth in both new accounts and balances in existing accounts, including the impact of higher-yielding product offerings, largely offset by migration into other investment products.Federal funds purchased and securities loaned or sold under repurchase agreements increased driven by Markets, primarily reflecting higher secured financing of trading assets.Short-term borrowings increased driven by higher financing requirements in Markets. Deposits increased, reflecting: •an increase in CIB due to net inflows related to client-driven activities in Payments and Securities Services, •an increase in CCB primarily driven by new accounts, predominantly offset by increased customer spending, and •an increase in AWM primarily driven by growth in both new accounts and balances in existing accounts, including the impact of higher-yielding product offerings, largely offset by migration into other investment products. Federal funds purchased and securities loaned or sold under repurchase agreements increased driven by Markets, primarily reflecting higher secured financing of trading assets. Short-term borrowings increased driven by higher financing requirements in Markets. Refer to Liquidity Risk Management on pages 100-107 for additional information on deposits, federal funds purchased and securities loaned or sold under repurchase agreements, and short-term borrowings; Notes 2 and 17 for deposits; and Note 11 for federal funds purchased and securities loaned or sold under repurchase agreements.Trading liabilities increased due to client-driven market-making activities, which resulted in higher levels of short positions, as well as higher derivative payables, primarily as a result of market movements. Refer to Notes 2 and 5 for additional information. Accounts payable and other liabilities increased predominantly due to higher brokerage payables related to client-driven activities in Markets. Refer to Note 19 for additional information on accounts payable. Refer to Liquidity Risk Management on pages 100-107 for additional information on deposits, federal funds purchased and securities loaned or sold under repurchase agreements, and short-term borrowings; Notes 2 and 17 for deposits; and Note 11 for federal funds purchased and securities loaned or sold under repurchase agreements. Trading liabilities increased due to client-driven market-making activities, which resulted in higher levels of short positions, as well as higher derivative payables, primarily as a result of market movements. Refer to Notes 2 and 5 for additional information. Accounts payable and other liabilities increased predominantly due to higher brokerage payables related to client-driven activities in Markets. Refer to Note 19 for additional information on accounts payable. 56JPMorgan Chase & Co./2025 Form 10-K 56JPMorgan Chase & Co./2025 Form 10-K 56JPMorgan Chase & Co./2025 Form 10-K 56 JPMorgan Chase & Co./2025 Form 10-K Beneficial interests issued by consolidated VIEs: Refer to Liquidity Risk Management on pages 100-107; and Notes 14 and 28 for additional information related to Firm-sponsored VIEs and loan securitization trusts.Long-term debt increased driven by net issuances of structured notes in Markets due to client demand and an increase in the fair value of such instruments, as well as net issuances of long-term debt in Treasury and CIO, partially offset by a net reduction in Federal Home Loan Bank ("FHLB") advances. Refer to Liquidity Risk Management on pages 100-107 for additional information.Stockholders' equity increased, reflecting:•net income, and •net unrealized gains in AOCI in Treasury and CIO, driven by the impact of lower interest rates on AFS securities and cash flow hedges, and spreads tightening on AFS securities,largely offset by•the impact of capital actions, including net repurchases of common shares and dividend payments on common and preferred stock.Refer to Consolidated Statements of changes in stockholders' equity on page 168, Capital Actions on page 97, and Note 24 for additional information. Beneficial interests issued by consolidated VIEs: Refer to Liquidity Risk Management on pages 100-107; and Notes 14 and 28 for additional information related to Firm-sponsored VIEs and loan securitization trusts.Long-term debt increased driven by net issuances of structured notes in Markets due to client demand and an increase in the fair value of such instruments, as well as net issuances of long-term debt in Treasury and CIO, partially offset by a net reduction in Federal Home Loan Bank ("FHLB") advances. Refer to Liquidity Risk Management on pages 100-107 for additional information.Stockholders' equity increased, reflecting:•net income, and •net unrealized gains in AOCI in Treasury and CIO, driven by the impact of lower interest rates on AFS securities and cash flow hedges, and spreads tightening on AFS securities,largely offset by•the impact of capital actions, including net repurchases of common shares and dividend payments on common and preferred stock.Refer to Consolidated Statements of changes in stockholders' equity on page 168, Capital Actions on page 97, and Note 24 for additional information. Beneficial interests issued by consolidated VIEs: Refer to Liquidity Risk Management on pages 100-107; and Notes 14 and 28 for additional information related to Firm-sponsored VIEs and loan securitization trusts. Long-term debt increased driven by net issuances of structured notes in Markets due to client demand and an increase in the fair value of such instruments, as well as net issuances of long-term debt in Treasury and CIO, partially offset by a net reduction in Federal Home Loan Bank ("FHLB") advances. Refer to Liquidity Risk Management on pages 100-107 for additional information. Stockholders' equity increased, reflecting: •net income, and •net unrealized gains in AOCI in Treasury and CIO, driven by the impact of lower interest rates on AFS securities and cash flow hedges, and spreads tightening on AFS securities, largely offset by •the impact of capital actions, including net repurchases of common shares and dividend payments on common and preferred stock. Refer to Consolidated Statements of changes in stockholders' equity on page 168, Capital Actions on page 97, and Note 24 for additional information. JPMorgan Chase & Co./2025 Form 10-K57 JPMorgan Chase & Co./2025 Form 10-K57 JPMorgan Chase & Co./2025 Form 10-K57 JPMorgan Chase & Co./2025 Form 10-K 57 Consolidated cash flows analysisThe following is a discussion of cash flow activities during the years ended December 31, 2025 and 2024. Refer to Consolidated cash flows analysis on page 66 of the Firm's 2024 Form 10-K for a discussion of the 2023 activities.(in millions)Year ended December 31,202520242023Net cash provided by/(used in)Operating activities$(147,782)$(42,012)$12,974 Investing activities(265,565)(163,403)67,643 Financing activities269,533 63,447 (25,571)Effect of exchange rate changes on cash17,835 (12,866)1,871 Net increase/(decrease) in cash and due from banks and deposits with banks$(125,979)$(154,834)$56,917 Operating activities JPMorganChase's operating assets and liabilities primarily support the Firm's lending and capital markets activities. These assets and liabilities can vary significantly in the normal course of business due to the amount and timing of cash flows, which are affected by client-driven and risk management activities and market conditions. The Firm believes that cash flows from operations, available cash and other liquidity sources, and its capacity to generate cash through secured and unsecured sources, are sufficient to meet its operating liquidity needs.•In 2025, cash used resulted from higher trading assets, higher securities borrowed, net originations and purchases of loans held-for-sale, higher other assets and higher accrued interest and accounts receivable, partially offset by net income excluding non-cash adjustments, and higher trading liabilities. •In 2024, cash used resulted from higher trading assets and higher securities borrowed, largely offset by net income excluding non-cash adjustments.Investing activitiesThe Firm's investing activities predominantly include originating held-for-investment loans, and investing in the investment securities portfolio and other short-term instruments.•In 2025, cash used resulted from net loan originations, net purchases of investment securities and higher securities purchased under resale agreements. •In 2024, cash used resulted from net purchases of investment securities, net loan originations and higher securities purchased under resale agreements, partially offset by proceeds from sales and securitizations of loans held-for-investment.Financing activitiesThe Firm's financing activities include acquiring customer deposits and issuing long-term debt and preferred stock.•In 2025, cash provided primarily reflected higher deposits, higher securities loaned or sold under repurchase agreements and net proceeds from long- and short-term borrowings, •In 2024, cash provided primarily reflected higher securities loaned or sold under repurchase agreements and net proceeds from long- and short-term borrowings, partially offset by net redemption of preferred stock.•For both periods, cash was used for repurchases of common stock and cash dividends on common and preferred stock.* * *Refer to Consolidated Balance Sheets Analysis on pages 55-57, Capital Risk Management on pages 89-99, and Liquidity Risk Management on pages 100-107, and the Consolidated Statements of Cash Flows on page 169 for a further discussion of the activities affecting the Firm's cash flows. Consolidated cash flows analysisThe following is a discussion of cash flow activities during the years ended December 31, 2025 and 2024. Refer to Consolidated cash flows analysis on page 66 of the Firm's 2024 Form 10-K for a discussion of the 2023 activities.(in millions)Year ended December 31,202520242023Net cash provided by/(used in)Operating activities$(147,782)$(42,012)$12,974 Investing activities(265,565)(163,403)67,643 Financing activities269,533 63,447 (25,571)Effect of exchange rate changes on cash17,835 (12,866)1,871 Net increase/(decrease) in cash and due from banks and deposits with banks$(125,979)$(154,834)$56,917 Operating activities JPMorganChase's operating assets and liabilities primarily support the Firm's lending and capital markets activities. These assets and liabilities can vary significantly in the normal course of business due to the amount and timing of cash flows, which are affected by client-driven and risk management activities and market conditions. The Firm believes that cash flows from operations, available cash and other liquidity sources, and its capacity to generate cash through secured and unsecured sources, are sufficient to meet its operating liquidity needs.•In 2025, cash used resulted from higher trading assets, higher securities borrowed, net originations and purchases of loans held-for-sale, higher other assets and higher accrued interest and accounts receivable, partially offset by net income excluding non-cash adjustments, and higher trading liabilities. •In 2024, cash used resulted from higher trading assets and higher securities borrowed, largely offset by net income excluding non-cash adjustments. --- ## Modified Risk: Deferred taxes **Key changes:** - Updated: "December 31, (in millions)20252024Deferred tax assetsAllowance for loan losses$7,402 $6,117 Employee benefits1,079 1,165 Accrued expenses and other5,907 8,881 Depreciation and amortization - 386 Non-U.S." **Prior (2025):** Deferred income tax expense/(benefit) reflects the differences between assets and liabilities measured for financial reporting purposes versus income tax return purposes. Deferred tax assets are recognized if, in management's judgment, their realizability is determined to be more likely than not. If a deferred tax asset is determined to be unrealizable, a valuation allowance is established. The significant components of deferred tax assets and liabilities are reflected in the following table, the net deferred tax assets are reflected in other assets on the Firm's Consolidated balance sheets. December 31, (in millions)20242023Deferred tax assetsAllowance for loan losses$6,117 $5,809 Employee benefits1,165 1,247 Accrued expenses and other8,881 9,887 (a)Depreciation and amortization386 - Non-U.S. operations948 860 Tax attribute carryforwards352 290 Gross deferred tax assets17,849 18,093 Valuation allowance(249)(183)Deferred tax assets, net of valuation allowance$17,600 $17,910 Deferred tax liabilitiesDepreciation and amortization$ - $779 Mortgage servicing rights, net of hedges1,912 1,794 Leasing transactions2,249 2,254 Other, net1,264 2,935 Gross deferred tax liabilities5,425 7,762 Net deferred tax assets$12,175 $10,148 Accrued expenses and other (a) **Current (2026):** Deferred income tax expense/(benefit) reflects the differences between assets and liabilities measured for financial reporting purposes versus income tax return purposes. Deferred tax assets are recognized if, in management's judgment, their realizability is determined to be more likely than not. If a deferred tax asset is determined to be unrealizable, a valuation allowance is established. The significant components of deferred tax assets and liabilities are reflected in the following table, the net deferred tax assets are reflected in other assets on the Firm's Consolidated balance sheets. December 31, (in millions)20252024Deferred tax assetsAllowance for loan losses$7,402 $6,117 Employee benefits1,079 1,165 Accrued expenses and other5,907 8,881 Depreciation and amortization - 386 Non-U.S. operations1,027 948 Tax attribute carryforwards2,252 352 Gross deferred tax assets17,667 17,849 Valuation allowance(476)(249)Deferred tax assets, net of valuation allowance$17,191 $17,600 Deferred tax liabilitiesDepreciation and amortization$2,343 $ - Mortgage servicing rights, net of hedges1,950 1,912 Leasing transactions4,291 2,249 Other, net1,659 1,264 Gross deferred tax liabilities10,243 5,425 Net deferred tax assets$6,948 $12,175 December 31, (in millions) Accrued expenses and other --- ## Modified Risk: Difference between aggregate fair value and aggregate remaining contractual principal balance outstanding **Key changes:** - Updated: "The following table reflects the difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding as of December 31, 2025 and 2024, for loans, long-term debt and long-term beneficial interests for which the fair value option has been elected." **Prior (2025):** The following table reflects the difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding as of December 31, 2024 and 2023, for loans, long-term debt and long-term beneficial interests for which the fair value option has been elected. 20242023December 31, (in millions)Contractual principal outstandingFair valueFair value over/(under) contractual principal outstandingContractual principal outstandingFair valueFair value over/(under) contractual principal outstandingLoansNonaccrual loansLoans reported as trading assets$3,429 $464 $(2,965)$2,987 $588 $(2,399)Loans1,711 1,492 (219)838 732 (106)Subtotal5,140 1,956 (3,184)3,825 1,320 (2,505)90 or more days past due and government guaranteedLoans(a)50 45 (5)65 59 (6)All other performing loans(b)Loans reported as trading assets12,171 10,852 (1,319)9,547 7,968 (1,579)Loans(c)40,342 39,813 (529)38,948 38,060 (888)Subtotal52,513 50,665 (1,848)48,495 46,028 (2,467)Total loans$57,703 $52,666 $(5,037)$52,385 $47,407 $(4,978)Long-term debtPrincipal-protected debt$57,414 (e)$47,780 $(9,634)$47,768 (e)$38,882 $(8,886)Nonprincipal-protected debt(d)NA53,000 NANA49,042 NATotal long-term debtNA$100,780 NANA$87,924 NALong-term beneficial interestsNonprincipal-protected debt(d)NA$1 NANA$1 NATotal long-term beneficial interestsNA$1 NANA$1 NA Loans(a) **Current (2026):** The following table reflects the difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding as of December 31, 2025 and 2024, for loans, long-term debt and long-term beneficial interests for which the fair value option has been elected. 20252024December 31, (in millions)Contractual principal outstandingFair valueFair value over/(under) contractual principal outstandingContractual principal outstandingFair valueFair value over/(under) contractual principal outstandingLoansNonaccrual loansLoans reported as trading assets$3,443 $545 $(2,898)$3,429 $464 $(2,965)Loans1,994 1,518 (476)1,711 1,492 (219)Subtotal5,437 2,063 (3,374)5,140 1,956 (3,184)90 or more days past due and government guaranteedLoans(a)152 144 (8)50 45 (5)All other performing loans(b)Loans reported as trading assets14,852 12,380 (2,472)12,171 10,852 (1,319)Loans(c)68,802 69,022 220 40,342 39,813 (529)Subtotal83,654 81,402 (2,252)52,513 50,665 (1,848)Total loans$89,243 $83,609 $(5,634)$57,703 $52,666 $(5,037)Long-term debtPrincipal-protected debt$73,984 (e)$63,770 $(10,214)$57,414 (e)$47,780 $(9,634)Nonprincipal-protected debt(d)NA70,789 NANA53,000 NATotal long-term debtNA$134,559 NANA$100,780 NALong-term beneficial interestsNonprincipal-protected debt(d)NA$5 NANA$1 NATotal long-term beneficial interestsNA$5 NANA$1 NA Loans(a) --- ## Modified Risk: Total long-term beneficial interests(e) **Key changes:** - Updated: "(b)Included long-term debt of $70.0 billion and $80.9 billion secured by assets totaling $191.0 billion and $185.5 billion at December 31, 2025 and 2024, respectively." - Updated: "(c)Included $134.6 billion and $100.8 billion of long-term debt accounted for at fair value at December 31, 2025 and 2024, respectively." - Updated: "Also included amounts accounted for at fair value which were not material as of December 31, 2025 and 2024." - Updated: "(g)As of December 31, 2025, long-term debt in the aggregate of $320.4 billion was redeemable at the option of JPMorganChase, in whole or in part, prior to maturity, based on the terms specified in the respective instruments." **Prior (2025):** (a)Reflects the Purchase Money Note associated with First Republic. Refer to Note 34 for additional information. (b)Included long-term debt of $80.9 billion and $93.0 billion secured by assets totaling $185.5 billion and $218.5 billion at December 31, 2024 and 2023, respectively. The amount of long-term debt secured by assets does not include amounts related to hybrid instruments. (c)Included $100.8 billion and $87.9 billion of long-term debt accounted for at fair value at December 31, 2024 and 2023, respectively. (d)Included $13.5 billion and $12.5 billion of outstanding zero-coupon notes at December 31, 2024 and 2023, respectively. The aggregate principal amount of these notes at their respective maturities is $50.2 billion and $47.9 billion, respectively. The aggregate principal amount reflects the contractual principal payment at maturity, which may exceed the contractual principal payment at the Firm's next call date, if applicable. (e)Included on the Consolidated balance sheets in beneficial interests issued by consolidated VIEs. Also included amounts accounted for at fair value which were not material as of December 31, 2024 and 2023. Excluded short-term commercial paper and other short-term beneficial interests of $21.8 billion and $19.9 billion at December 31, 2024 and 2023, respectively. (f)The interest rates shown are the weighted average of contractual rates in effect at December 31, 2024 and 2023, respectively, including non-U.S. dollar fixed- and variable-rate issuances, which excludes the effects of the associated derivative instruments used in hedge accounting relationships, if applicable. The interest rates shown exclude structured notes accounted for at fair value. (g)As of December 31, 2024, long-term debt in the aggregate of $297.1 billion was redeemable at the option of JPMorganChase, in whole or in part, prior to maturity, based on the terms specified in the respective instruments. (h)The aggregate carrying values of debt that matures in each of the five years subsequent to 2024 is $41.0 billion in 2025, $64.5 billion in 2026, $32.7 billion in 2027, $93.4 billion in 2028 and $26.9 billion in 2029. JPMorgan Chase & Co./2024 Form 10-K289 JPMorgan Chase & Co./2024 Form 10-K289 JPMorgan Chase & Co./2024 Form 10-K289 JPMorgan Chase & Co./2024 Form 10-K 289 **Current (2026):** (a)Reflects the Purchase Money Note associated with First Republic. Refer to Note 34 for additional information. (b)Included long-term debt of $70.0 billion and $80.9 billion secured by assets totaling $191.0 billion and $185.5 billion at December 31, 2025 and 2024, respectively. The amount of long-term debt secured by assets does not include amounts related to hybrid instruments. (c)Included $134.6 billion and $100.8 billion of long-term debt accounted for at fair value at December 31, 2025 and 2024, respectively. (d)Included $18.1 billion and $13.5 billion of outstanding zero-coupon notes at December 31, 2025 and 2024, respectively. The aggregate principal amount of these notes at their respective maturities is $57.6 billion and $50.2 billion, respectively. The aggregate principal amount reflects the contractual principal payment at maturity, which may exceed the contractual principal payment at the Firm's next call date, if applicable. (e)Included on the Consolidated balance sheets in beneficial interests issued by consolidated VIEs. Also included amounts accounted for at fair value which were not material as of December 31, 2025 and 2024. Excluded short-term commercial paper and other short-term beneficial interests of $21.9 billion and $21.8 billion at December 31, 2025 and 2024, respectively. (f)The interest rates shown are the weighted average of contractual rates in effect at December 31, 2025 and 2024, respectively, including non-U.S. dollar fixed- and variable-rate issuances, which excludes the effects of the associated derivative instruments used in hedge accounting relationships, if applicable. The interest rates shown exclude structured notes accounted for at fair value. (g)As of December 31, 2025, long-term debt in the aggregate of $320.4 billion was redeemable at the option of JPMorganChase, in whole or in part, prior to maturity, based on the terms specified in the respective instruments. (h)The aggregate carrying values of debt that matures in each of the five years subsequent to 2025 is $42.6 billion in 2026, $55.8 billion in 2027, $105.4 billion in 2028, $31.4 billion in 2029 and $39.8 billion in 2030. JPMorgan Chase & Co./2025 Form 10-K281 JPMorgan Chase & Co./2025 Form 10-K281 JPMorgan Chase & Co./2025 Form 10-K281 JPMorgan Chase & Co./2025 Form 10-K 281 --- ## Modified Risk: Risk appetite **Key changes:** - Updated: "84JPMorgan Chase & Co./2025 Form 10-K 84JPMorgan Chase & Co./2025 Form 10-K 84JPMorgan Chase & Co./2025 Form 10-K 84 JPMorgan Chase & Co./2025 Form 10-K" **Prior (2025):** The Firm's overall appetite for risk is governed by Risk Appetite frameworks for quantitative and qualitative risks. The Firm's risk appetite is periodically set and approved by senior management (including the CEO and CRO) and approved by the Board Risk Committee. Quantitative and qualitative risks are assessed to monitor and measure the Firm's capacity to take risk consistent with its stated risk appetite. Risk appetite results are reported to the Board Risk Committee. 92JPMorgan Chase & Co./2024 Form 10-K 92JPMorgan Chase & Co./2024 Form 10-K 92JPMorgan Chase & Co./2024 Form 10-K 92 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** The Firm's overall appetite for risk is governed by Risk Appetite frameworks for quantitative and qualitative risks. The Firm's risk appetite is periodically set and approved by senior management (including the CEO and CRO) and approved by the Board Risk Committee. Quantitative and qualitative risks are assessed to monitor and measure the Firm's capacity to take risk consistent with its stated risk appetite. Risk appetite results are reported to the Board Risk Committee. 84JPMorgan Chase & Co./2025 Form 10-K 84JPMorgan Chase & Co./2025 Form 10-K 84JPMorgan Chase & Co./2025 Form 10-K 84 JPMorgan Chase & Co./2025 Form 10-K --- ## Modified Risk: Card income **Key changes:** - Updated: "The following table presents the components of card income: Year ended December 31, (in millions)202520242023Interchange and merchant processing income$36,222 $33,847 $31,021 Reward costs and partner payments(29,720)(26,784)(24,601)All other(a)(1,782)(1,566)(1,636)Total card income$4,720 $5,497 $4,784 (a)Predominantly represents the amortization of account origination costs and annual fees, which are deferred and recognized on a straight-line basis over a 12-month period." - Updated: "The following table presents the components of card income: Year ended December 31, (in millions)202520242023Interchange and merchant processing income$36,222 $33,847 $31,021 Reward costs and partner payments(29,720)(26,784)(24,601)All other(a)(1,782)(1,566)(1,636)Total card income$4,720 $5,497 $4,784 Interchange and merchant processing income All other(a) (a)Predominantly represents the amortization of account origination costs and annual fees, which are deferred and recognized on a straight-line basis over a 12-month period." - Updated: "220JPMorgan Chase & Co./2025 Form 10-K 220JPMorgan Chase & Co./2025 Form 10-K 220JPMorgan Chase & Co./2025 Form 10-K 220 JPMorgan Chase & Co./2025 Form 10-K Other incomeThis revenue category includes operating lease income, as well as losses associated with certain of the Firm's tax-oriented investments, predominantly alternative energy equity-method investments in CIB." **Prior (2025):** This revenue category includes interchange and other income from credit and debit card transactions; and fees earned from processing card transactions for merchants, both of which are recognized when purchases are made by a cardholder and presented net of certain transaction-related costs. Card income also includes account origination costs and annual fees, which are deferred and recognized on a straight-line basis over a 12-month period. Certain credit card products offer the cardholder the ability to earn points based on account activity, which the cardholder can choose to redeem for cash and non-cash rewards. The cost to the Firm related to these proprietary rewards programs varies based on multiple factors including the terms and conditions of the rewards programs, cardholder activity, cardholder reward redemption rates and cardholder reward selections. The Firm maintains a liability for its obligations under its rewards programs and reports the current-period cost as a reduction of card income. Credit card revenue sharing agreements The Firm has contractual agreements with numerous co-brand partners that grant the Firm exclusive rights to issue co-branded credit card products and market them to the customers of such partners. These partners endorse the co-brand credit card programs and provide their customer or member lists to the Firm. The partners may also conduct marketing activities and provide rewards redeemable under their own loyalty programs that the Firm will grant to co-brand credit cardholders based on account activity. The terms of these agreements generally range from five to ten years.The Firm typically makes payments to the co-brand credit card partners based on the cost of partners' marketing activities and loyalty program rewards provided to credit cardholders, new account originations and sales volumes. Payments to partners based on marketing efforts undertaken by the partners are expensed by the Firm as incurred and reported as marketing expense. Payments for partner loyalty program rewards are reported as a reduction of card income when incurred. Payments to partners based on new credit card account originations are accounted for as direct loan origination costs and are deferred and recognized as a reduction of card income on a straight-line basis over a 12-month period. Payments to partners based on sales volumes are reported as a reduction of card income when the related interchange income is earned. The following table presents the components of card income: Year ended December 31, (in millions)202420232022Interchange and merchant processing income$33,847 $31,021 $28,085 Reward costs and partner payments(26,784)(24,601)(22,162)All other(a)(1,566)(1,636)(1,503)Total card income$5,497 $4,784 $4,420 (a)Predominantly represents the amortization of account origination costs and annual fees, which are deferred and recognized on a straight-line basis over a 12-month period. Card income is earned primarily by CCB and CIB. Certain credit card products offer the cardholder the ability to earn points based on account activity, which the cardholder can choose to redeem for cash and non-cash rewards. The cost to the Firm related to these proprietary rewards programs varies based on multiple factors including the terms and conditions of the rewards programs, cardholder activity, cardholder reward redemption rates and cardholder reward selections. The Firm maintains a liability for its obligations under its rewards programs and reports the current-period cost as a reduction of card income. Credit card revenue sharing agreements The Firm has contractual agreements with numerous co-brand partners that grant the Firm exclusive rights to issue co-branded credit card products and market them to the customers of such partners. These partners endorse the co-brand credit card programs and provide their customer or member lists to the Firm. The partners may also conduct marketing activities and provide rewards redeemable under their own loyalty programs that the Firm will grant to co-brand credit cardholders based on account activity. The terms of these agreements generally range from five to ten years. five The Firm typically makes payments to the co-brand credit card partners based on the cost of partners' marketing activities and loyalty program rewards provided to credit cardholders, new account originations and sales volumes. Payments to partners based on marketing efforts undertaken by the partners are expensed by the Firm as incurred and reported as marketing expense. Payments for partner loyalty program rewards are reported as a reduction of card income when incurred. Payments to partners based on new credit card account originations are accounted for as direct loan origination costs and are deferred and recognized as a reduction of card income on a straight-line basis over a 12-month period. Payments to partners based on sales volumes are reported as a reduction of card income when the related interchange income is earned. The following table presents the components of card income: Year ended December 31, (in millions)202420232022Interchange and merchant processing income$33,847 $31,021 $28,085 Reward costs and partner payments(26,784)(24,601)(22,162)All other(a)(1,566)(1,636)(1,503)Total card income$5,497 $4,784 $4,420 Interchange and merchant processing income All other(a) (a)Predominantly represents the amortization of account origination costs and annual fees, which are deferred and recognized on a straight-line basis over a 12-month period. (a) Card income is earned primarily by CCB and CIB. JPMorgan Chase & Co./2024 Form 10-K227 JPMorgan Chase & Co./2024 Form 10-K227 JPMorgan Chase & Co./2024 Form 10-K227 JPMorgan Chase & Co./2024 Form 10-K 227 **Current (2026):** This revenue category includes interchange and other income from credit and debit card transactions; and fees earned from processing card transactions for merchants, both of which are recognized when purchases are made by a cardholder and presented net of certain transaction-related costs. Card income also includes account origination costs and annual fees, which are deferred and recognized on a straight-line basis over a 12-month period. Certain credit card products offer the cardholder the ability to earn points based on account activity, which the cardholder can choose to redeem for cash and non-cash rewards. The cost to the Firm related to these proprietary rewards programs varies based on multiple factors including the terms and conditions of the rewards programs, cardholder activity, cardholder reward redemption rates and cardholder reward selections. The Firm maintains a liability for its obligations under its rewards programs and reports the current-period cost as a reduction of card income. Credit card revenue sharing agreements The Firm has contractual agreements with numerous co-brand partners that grant the Firm exclusive rights to issue co-branded credit card products and market them to the customers of such partners. These partners endorse the co-brand credit card programs and provide their customer or member lists to the Firm. The partners may also conduct marketing activities and provide rewards redeemable under their own loyalty programs that the Firm will grant to co-brand credit cardholders based on account activity. The terms of these agreements generally range from five to ten years.The Firm typically makes payments to the co-brand credit card partners based on the cost of partners' marketing activities and loyalty program rewards provided to credit cardholders, new account originations and sales volumes. Payments to partners based on marketing efforts undertaken by the partners are expensed by the Firm as incurred and reported as marketing expense. Payments for partner loyalty program rewards are reported as a reduction of card income when incurred. Payments to partners based on new credit card account originations are accounted for as direct loan origination costs and are deferred and recognized as a reduction of card income on a straight-line basis over a 12-month period. Payments to partners based on sales volumes are reported as a reduction of card income when the related interchange income is earned. The following table presents the components of card income: Year ended December 31, (in millions)202520242023Interchange and merchant processing income$36,222 $33,847 $31,021 Reward costs and partner payments(29,720)(26,784)(24,601)All other(a)(1,782)(1,566)(1,636)Total card income$4,720 $5,497 $4,784 (a)Predominantly represents the amortization of account origination costs and annual fees, which are deferred and recognized on a straight-line basis over a 12-month period. Card income is earned primarily by CCB and CIB. Certain credit card products offer the cardholder the ability to earn points based on account activity, which the cardholder can choose to redeem for cash and non-cash rewards. The cost to the Firm related to these proprietary rewards programs varies based on multiple factors including the terms and conditions of the rewards programs, cardholder activity, cardholder reward redemption rates and cardholder reward selections. The Firm maintains a liability for its obligations under its rewards programs and reports the current-period cost as a reduction of card income. Credit card revenue sharing agreements The Firm has contractual agreements with numerous co-brand partners that grant the Firm exclusive rights to issue co-branded credit card products and market them to the customers of such partners. These partners endorse the co-brand credit card programs and provide their customer or member lists to the Firm. The partners may also conduct marketing activities and provide rewards redeemable under their own loyalty programs that the Firm will grant to co-brand credit cardholders based on account activity. The terms of these agreements generally range from five to ten years. five The Firm typically makes payments to the co-brand credit card partners based on the cost of partners' marketing activities and loyalty program rewards provided to credit cardholders, new account originations and sales volumes. Payments to partners based on marketing efforts undertaken by the partners are expensed by the Firm as incurred and reported as marketing expense. Payments for partner loyalty program rewards are reported as a reduction of card income when incurred. Payments to partners based on new credit card account originations are accounted for as direct loan origination costs and are deferred and recognized as a reduction of card income on a straight-line basis over a 12-month period. Payments to partners based on sales volumes are reported as a reduction of card income when the related interchange income is earned. The following table presents the components of card income: Year ended December 31, (in millions)202520242023Interchange and merchant processing income$36,222 $33,847 $31,021 Reward costs and partner payments(29,720)(26,784)(24,601)All other(a)(1,782)(1,566)(1,636)Total card income$4,720 $5,497 $4,784 Interchange and merchant processing income All other(a) (a)Predominantly represents the amortization of account origination costs and annual fees, which are deferred and recognized on a straight-line basis over a 12-month period. (a) Card income is earned primarily by CCB and CIB. 220JPMorgan Chase & Co./2025 Form 10-K 220JPMorgan Chase & Co./2025 Form 10-K 220JPMorgan Chase & Co./2025 Form 10-K 220 JPMorgan Chase & Co./2025 Form 10-K Other incomeThis revenue category includes operating lease income, as well as losses associated with certain of the Firm's tax-oriented investments, predominantly alternative energy equity-method investments in CIB. The losses associated with these tax-oriented investments are more than offset by lower income tax expense from the associated tax credits.The following table presents certain components of other income:Year ended December 31, (in millions)202520242023Operating lease income$3,803 $2,795 $2,843 Losses on tax-oriented investments(173)(97)(1,538)Gain on Visa shares - 7,990 (b) - First Republic-related gains(a)628 103 2,775 Gain related to the acquisition of CIFM - - 339 (c)(a) Relates to the settlement of outstanding items with the FDIC in 2025, and adjustments to the estimated bargain purchase gain associated with the acquisition in 2024 and 2023.(b) Relates to the initial gain recognized on May 6, 2024 on the Visa C shares. (c) Gain on the original minority interest in CIFM upon the Firm's acquisition of the remaining 51% of the entity.Refer to Note 18 for additional information on operating leases.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. In addition, as of June 30, 2025, all outstanding matters between the Firm and the FDIC related to the final settlement of the purchase price for the First Republic acquisition had been resolved. Refer to Note 34 for additional information.Proportional Amortization Method: Effective January 1, 2024, as a result of adopting updates to the Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method guidance, the amortization of certain of the Firm's alternative energy tax-oriented investments that was previously recognized in other income is now recognized in income tax expense, which aligns with the associated tax credits and other tax benefits. Refer to Notes 1, 14 and 25 for additional information.Noninterest expenseOther expense Other expense on the Firm's Consolidated statements of income included: Year ended December 31, (in millions)202520242023Legal expense$361 $740 $1,436 FDIC-related expense(a)531 1,893 4,203 Operating losses1,292 1,417 1,228 Contribution of Visa shares - 1,000 (b) - (a) Included FDIC special assessment accrual releases of $763 million and an accrual increase of $725 million for the years ended December 31, 2025 and 2024, respectively, which are adjustments to the initial $2.9 billion estimate recorded in the fourth quarter of 2023.(b) Represents the contribution of a portion of Visa C shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024. Refer to Note 32 for additional information on noninterest revenue and expense by segment. Other incomeThis revenue category includes operating lease income, as well as losses associated with certain of the Firm's tax-oriented investments, predominantly alternative energy equity-method investments in CIB. The losses associated with these tax-oriented investments are more than offset by lower income tax expense from the associated tax credits.The following table presents certain components of other income:Year ended December 31, (in millions)202520242023Operating lease income$3,803 $2,795 $2,843 Losses on tax-oriented investments(173)(97)(1,538)Gain on Visa shares - 7,990 (b) - First Republic-related gains(a)628 103 2,775 Gain related to the acquisition of CIFM - - 339 (c)(a) Relates to the settlement of outstanding items with the FDIC in 2025, and adjustments to the estimated bargain purchase gain associated with the acquisition in 2024 and 2023.(b) Relates to the initial gain recognized on May 6, 2024 on the Visa C shares. (c) Gain on the original minority interest in CIFM upon the Firm's acquisition of the remaining 51% of the entity.Refer to Note 18 for additional information on operating leases.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. In addition, as of June 30, 2025, all outstanding matters between the Firm and the FDIC related to the final settlement of the purchase price for the First Republic acquisition had been resolved. Refer to Note 34 for additional information.Proportional Amortization Method: Effective January 1, 2024, as a result of adopting updates to the Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method guidance, the amortization of certain of the Firm's alternative energy tax-oriented investments that was previously recognized in other income is now recognized in income tax expense, which aligns with the associated tax credits and other tax benefits. Refer to Notes 1, 14 and 25 for additional information. --- ## Modified Risk: PricewaterhouseCoopers LLP • 300 Madison Avenue • New York, NY 10017 **Key changes:** - Updated: "162JPMorgan Chase & Co./2025 Form 10-K 162JPMorgan Chase & Co./2025 Form 10-K 162JPMorgan Chase & Co./2025 Form 10-K 162 JPMorgan Chase & Co./2025 Form 10-K" **Prior (2025):** JPMorgan Chase & Co./2024 Form 10-K169 JPMorgan Chase & Co./2024 Form 10-K169 JPMorgan Chase & Co./2024 Form 10-K169 JPMorgan Chase & Co./2024 Form 10-K 169 **Current (2026):** 162JPMorgan Chase & Co./2025 Form 10-K 162JPMorgan Chase & Co./2025 Form 10-K 162JPMorgan Chase & Co./2025 Form 10-K 162 JPMorgan Chase & Co./2025 Form 10-K --- ## Modified Risk: Note 32 - Business segments & Corporate **Key changes:** - Removed: "Business segment reorganization: Effective in the second quarter of 2024, the Firm reorganized its reportable business segments by combining the former Corporate & Investment Bank and Commercial Banking business segments to form one reportable segment, the Commercial & Investment Bank." - Removed: "As a result of the reorganization, the Firm has three reportable business segments - Consumer & Community Banking, Commercial & Investment Bank, and Asset & Wealth Management - with the remaining activities in Corporate." - Removed: "Adoption of accounting standard - Segment Reporting - Improvements to Reportable Segment Disclosures: This guidance was adopted retrospectively for the Firm's annual Consolidated Financial Statements for the year ended December 31, 2024." - Removed: "The adoption of this guidance requires additional reportable segment disclosures, primarily relating to significant segment expenses and the chief operating decision maker ("CODM")." - Removed: "Adoption of this guidance did not result in changes to the identification of the Firm's reportable business segments, or of its CODM." **Prior (2025):** Business segment reorganization: Effective in the second quarter of 2024, the Firm reorganized its reportable business segments by combining the former Corporate & Investment Bank and Commercial Banking business segments to form one reportable segment, the Commercial & Investment Bank. As a result of the reorganization, the Firm has three reportable business segments - Consumer & Community Banking, Commercial & Investment Bank, and Asset & Wealth Management - with the remaining activities in Corporate. Adoption of accounting standard - Segment Reporting - Improvements to Reportable Segment Disclosures: This guidance was adopted retrospectively for the Firm's annual Consolidated Financial Statements for the year ended December 31, 2024. The adoption of this guidance requires additional reportable segment disclosures, primarily relating to significant segment expenses and the chief operating decision maker ("CODM"). Adoption of this guidance did not result in changes to the identification of the Firm's reportable business segments, or of its CODM. The Firm is managed on an LOB basis. The business segments are determined based on the products and services provided, or the type of customer served, and they reflect the manner in which financial information is evaluated by the Firm's Operating Committee, whose members act collectively as the Firm's CODM. Segment results are presented on a managed basis. Refer to Segment & Corporate results in this footnote for a further discussion of JPMorganChase's reportable business segments and Corporate.The following is a description of each of the Firm's reportable business segments, and the products and services that they provide to their respective client bases, as well as a description of Corporate activities.Consumer & Community Banking Consumer & Community Banking offers products and services to consumers and small businesses through bank branches, ATMs, digital (including mobile and online) and telephone banking. CCB is organized into Banking & Wealth Management (including Consumer Banking, Business Banking and J.P. Morgan Wealth Management), Home Lending (including Home Lending Production, Home Lending Servicing and Real Estate Portfolios) and Card Services & Auto. Banking & Wealth Management offers deposit, investment and lending products, cash management, payments and services. Home Lending includes mortgage origination and servicing activities, as well as portfolios consisting of residential mortgages and home equity loans. Card Services issues credit cards and offers travel services. Auto originates and services auto loans and leases. Commercial & Investment BankThe Commercial & Investment Bank is comprised of the Banking & Payments and Markets & Securities Services businesses. These businesses offer investment banking, lending, payments, market-making, financing, custody and securities products and services to a global base of corporate and institutional clients. Banking & Payments offers products and services in all major capital markets, including advising on corporate strategy and structure, capital-raising in equity and debt markets, and loan origination and syndication. Banking & Payments also provides services that enable clients to manage payments globally across liquidity and account solutions, commerce solutions, clearing, trade, and working capital. Markets & Securities Services includes Markets, which is a global market-maker across products, including cash and derivative instruments, and also offers sophisticated risk management solutions, lending, prime brokerage, clearing and research. Markets & Securities Services also includes Securities Services, a leading global custodian that provides custody, fund services, liquidity and trading services, and data solutions products. Asset & Wealth ManagementAsset & Wealth Management, with client assets of $5.9 trillion, is a global leader in investment and wealth management. Asset Management Offers multi-asset investment management solutions across equities, fixed income, alternatives and money market funds to institutional and retail investors providing for a broad range of clients' investment needs.Global Private BankProvides retirement products and services, brokerage, custody, estate planning, lending, deposits and investment management to high net worth clients.The majority of AWM's client assets are in actively managed portfolios.CorporateCorporate consists of Treasury and Chief Investment Office ("CIO") and Other Corporate. Treasury and CIO is predominantly responsible for measuring, monitoring, reporting and managing the Firm's liquidity, funding, capital, structural interest rate and foreign exchange risks. Other Corporate includes staff functions and expense that is centrally managed as well as certain Firm initiatives and activities not solely aligned to a specific LOB. The major Other Corporate functions include Real Estate, Technology, Legal, Corporate Finance, Human Resources, Internal Audit, Risk Management, Compliance, Control Management, Corporate Responsibility and various Other Corporate groups. Business segment reorganization: Effective in the second quarter of 2024, the Firm reorganized its reportable business segments by combining the former Corporate & Investment Bank and Commercial Banking business segments to form one reportable segment, the Commercial & Investment Bank. As a result of the reorganization, the Firm has three reportable business segments - Consumer & Community Banking, Commercial & Investment Bank, and Asset & Wealth Management - with the remaining activities in Corporate. Adoption of accounting standard - Segment Reporting - Improvements to Reportable Segment Disclosures: This guidance was adopted retrospectively for the Firm's annual Consolidated Financial Statements for the year ended December 31, 2024. The adoption of this guidance requires additional reportable segment disclosures, primarily relating to significant segment expenses and the chief operating decision maker ("CODM"). Adoption of this guidance did not result in changes to the identification of the Firm's reportable business segments, or of its CODM. The Firm is managed on an LOB basis. The business segments are determined based on the products and services provided, or the type of customer served, and they reflect the manner in which financial information is evaluated by the Firm's Operating Committee, whose members act collectively as the Firm's CODM. Segment results are presented on a managed basis. Refer to Segment & Corporate results in this footnote for a further discussion of JPMorganChase's reportable business segments and Corporate.The following is a description of each of the Firm's reportable business segments, and the products and services that they provide to their respective client bases, as well as a description of Corporate activities.Consumer & Community Banking Consumer & Community Banking offers products and services to consumers and small businesses through bank branches, ATMs, digital (including mobile and online) and telephone banking. CCB is organized into Banking & Wealth Management (including Consumer Banking, Business Banking and J.P. Morgan Wealth Management), Home Lending (including Home Lending Production, Home Lending Servicing and Real Estate Portfolios) and Card Services & Auto. Banking & Wealth Management offers deposit, investment and lending products, cash management, payments and services. Home Lending includes mortgage origination and servicing activities, as well as portfolios consisting of residential mortgages and home equity loans. Card Services issues credit cards and offers travel services. Auto originates and services auto loans and leases. Business segment reorganization: Effective in the second quarter of 2024, the Firm reorganized its reportable business segments by combining the former Corporate & Investment Bank and Commercial Banking business segments to form one reportable segment, the Commercial & Investment Bank. As a result of the reorganization, the Firm has three reportable business segments - Consumer & Community Banking, Commercial & Investment Bank, and Asset & Wealth Management - with the remaining activities in Corporate. Adoption of accounting standard - Segment Reporting - Improvements to Reportable Segment Disclosures: This guidance was adopted retrospectively for the Firm's annual Consolidated Financial Statements for the year ended December 31, 2024. The adoption of this guidance requires additional reportable segment disclosures, primarily relating to significant segment expenses and the chief operating decision maker ("CODM"). Adoption of this guidance did not result in changes to the identification of the Firm's reportable business segments, or of its CODM. The Firm is managed on an LOB basis. The business segments are determined based on the products and services provided, or the type of customer served, and they reflect the manner in which financial information is evaluated by the Firm's Operating Committee, whose members act collectively as the Firm's CODM. Segment results are presented on a managed basis. Refer to Segment & Corporate results in this footnote for a further discussion of JPMorganChase's reportable business segments and Corporate. The following is a description of each of the Firm's reportable business segments, and the products and services that they provide to their respective client bases, as well as a description of Corporate activities. **Current (2026):** The Firm is managed on an LOB basis. The Firm has three reportable business segments - Consumer & Community Banking, Commercial & Investment Bank, and Asset & Wealth Management - with the remaining activities in Corporate. The business segments are determined based on the products and services provided, or the type of customers and clients 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.The following is a description of each of the Firm's reportable business segments, and the products and services that they provide to their respective client bases, as well as a description of Corporate activities.Consumer & Community Banking Consumer & Community Banking offers products and services to consumers and small businesses through bank branches, ATMs, digital (including mobile and online) and telephone banking. CCB is organized into Banking & Wealth Management (including Consumer Banking, Business Banking and J.P. Morgan Wealth Management), Home Lending (including Home Lending Production, Home Lending Servicing and Real Estate Portfolios) and Card Services & Auto. Banking & Wealth Management offers deposit, investment and lending products, cash management, payments and services. Home Lending includes mortgage origination and servicing activities, as well as portfolios consisting of residential mortgages and home equity loans. Card Services issues credit cards and offers payment solutions, travel services, merchant offers and lifestyle benefits. Auto originates and services auto loans and leases. Commercial & Investment BankThe Commercial & Investment Bank is comprised of the Banking & Payments and Markets & Securities Services businesses. These businesses offer investment banking, lending, payments, market-making, financing, custody and securities products and services to a global base of corporate and institutional clients. Banking & Payments offers products and services in all major capital markets, including advising on corporate strategy and structure, capital-raising in equity and debt markets, and loan origination and syndication. Banking & Payments also provides services that enable clients to manage payments globally across liquidity and account solutions, commerce solutions, clearing, trade, and working capital. Markets & Securities Services includes Markets, which is a global market-maker across products, including cash and derivative instruments, and also offers sophisticated risk management solutions, lending, prime brokerage, clearing and research. Markets & Securities Services also includes Securities Services, a leading global custodian that provides custody, fund services, liquidity and trading services, and data solutions products. Asset & Wealth ManagementAsset & Wealth Management, with client assets of $7.1 trillion, is a global leader in investment and wealth management. Asset Management Offers multi-asset investment management solutions across equities, fixed income, alternatives and money market funds to institutional and retail investors providing for a broad range of clients' investment needs.Global Private BankProvides retirement products and services, brokerage, custody, estate planning, lending, deposits and investment management to high net worth clients.The majority of AWM's client assets are in actively managed portfolios.CorporateCorporate consists of Treasury and Chief Investment Office ("CIO") and Other Corporate. Treasury and CIO is predominantly responsible for measuring, monitoring, reporting and managing the Firm's liquidity, funding, capital, structural interest rate and foreign exchange risks. Other Corporate includes staff functions and expense that is centrally managed as well as certain Firm initiatives and activities not solely aligned to a specific LOB. The major Other Corporate functions include Real Estate, Technology, Legal, Corporate Finance, Human Resources, Internal Audit, Risk Management, Compliance, Control Management, Corporate Responsibility and various Other Corporate groups. The Firm is managed on an LOB basis. The Firm has three reportable business segments - Consumer & Community Banking, Commercial & Investment Bank, and Asset & Wealth Management - with the remaining activities in Corporate. The business segments are determined based on the products and services provided, or the type of customers and clients 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.The following is a description of each of the Firm's reportable business segments, and the products and services that they provide to their respective client bases, as well as a description of Corporate activities.Consumer & Community Banking Consumer & Community Banking offers products and services to consumers and small businesses through bank branches, ATMs, digital (including mobile and online) and telephone banking. CCB is organized into Banking & Wealth Management (including Consumer Banking, Business Banking and J.P. Morgan Wealth Management), Home Lending (including Home Lending Production, Home Lending Servicing and Real Estate Portfolios) and Card Services & Auto. Banking & Wealth Management offers deposit, investment and lending products, cash management, payments and services. Home Lending includes mortgage origination and servicing activities, as well as portfolios consisting of residential mortgages and home equity loans. Card Services issues credit cards and offers payment solutions, travel services, merchant offers and lifestyle benefits. Auto originates and services auto loans and leases. Commercial & Investment BankThe Commercial & Investment Bank is comprised of the Banking & Payments and Markets & Securities Services businesses. These businesses offer investment banking, lending, payments, market-making, financing, custody and securities products and services to a global base of corporate and institutional clients. Banking & Payments offers products and services in all major capital markets, including advising on corporate strategy and structure, capital-raising in equity and debt markets, and loan origination and syndication. Banking & Payments also provides services that enable clients to manage payments globally across liquidity and account solutions, commerce solutions, clearing, trade, and working capital. Markets & Securities Services includes Markets, which is a global market-maker across products, including cash and derivative instruments, and also offers sophisticated risk The Firm is managed on an LOB basis. The Firm has three reportable business segments - Consumer & Community Banking, Commercial & Investment Bank, and Asset & Wealth Management - with the remaining activities in Corporate. The business segments are determined based on the products and services provided, or the type of customers and clients 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. The following is a description of each of the Firm's reportable business segments, and the products and services that they provide to their respective client bases, as well as a description of Corporate activities. --- ## Modified Risk: Management oversight **Key changes:** - Updated: "The Control Committees for the LOBs and certain of the Corporate functions oversee the risk and control environment of their respective business or function, inclusive of Operational Risk, Compliance and Conduct Risks." - Added: "86JPMorgan Chase & Co./2025 Form 10-K 86JPMorgan Chase & Co./2025 Form 10-K 86JPMorgan Chase & Co./2025 Form 10-K 86 JPMorgan Chase & Co./2025 Form 10-K Risk governance and oversight functionsThe Firm monitors and measures its risk through risk governance and oversight functions." - Added: "The scope of a particular function or business activity may include one or more drivers, types and/or impacts of risk." - Added: "For example, Country Risk Management oversees country risk which may be a driver of risk or an aggregation of exposures that could give rise to multiple risk types such as credit or market risk." - Added: "The following sections discuss the risk governance and oversight functions that have been established to oversee the risks inherent in the Firm's business activities.Risk governance and oversight functionsPageStrategic Risk88Capital Risk89-99Liquidity Risk100-107Reputation Risk108Consumer Credit Risk112-117Wholesale Credit Risk118-128Investment Portfolio Risk132Market Risk133-142Country Risk143-144Climate Risk145Operational Risk146-149Compliance Risk150Conduct Risk151Legal Risk152Estimations and Model Risk153 Risk governance and oversight functionsThe Firm monitors and measures its risk through risk governance and oversight functions." **Prior (2025):** The Firm's senior management-level committees that are primarily responsible for key risk-related functions include: The Firmwide Risk Committee ("FRC") is the Firm's highest management-level risk committee. It oversees the risks inherent in the Firm's business and provides a forum for discussion of risk-related and other topics and issues that are raised or escalated by its members and other committees. The Firmwide Control Committee ("FCC") is an escalation committee for senior management to review and discuss the Firmwide compliance and operational risk environment, including identified issues, compliance and operational risk metrics and significant events that have been escalated. Line of Business and Regional Risk Committees are responsible for overseeing the governance, limits and controls that have been established within the scope of their respective activities. These committees review the ways in which the particular LOB or the businesses operating in a particular region could be exposed to adverse outcomes, with a focus on identifying, accepting, escalating and/or requiring remediation of matters brought to these committees. 94JPMorgan Chase & Co./2024 Form 10-K 94JPMorgan Chase & Co./2024 Form 10-K 94JPMorgan Chase & Co./2024 Form 10-K 94 JPMorgan Chase & Co./2024 Form 10-K Line of Business and Corporate Function Control Committees oversee the risk and control environment of their respective business or function, inclusive of Operational Risk, Compliance and Conduct Risks. As part of that mandate, they are responsible for reviewing indicators of elevated or emerging risks and other data that may impact the level of compliance and operational risk in a business or function, addressing key compliance and operational risk issues, with an emphasis on processes with control concerns, and overseeing control remediation. The Asset and Liability Committee ("ALCO") is responsible for overseeing the Firm's asset and liability management ("ALM"), including the activities and frameworks supporting management of the balance sheet, liquidity risk, interest rate risk and capital risk. The Firmwide Valuation Governance Forum ("VGF") is composed of senior finance and risk executives and is responsible for overseeing the management of risks arising from valuation activities conducted across the Firm.Risk governance and oversight functionsThe Firm monitors and measures its risk through risk governance and oversight functions. The scope of a particular function or business activity may include one or more drivers, types and/or impacts of risk. For example, Country Risk Management oversees country risk which may be a driver of risk or an aggregation of exposures that could give rise to multiple risk types such as credit or market risk. The following sections discuss the risk governance and oversight functions that have been established to oversee the risks inherent in the Firm's business activities.Risk governance and oversight functionsPageStrategic Risk96Capital Risk97-107Liquidity Risk108-115Reputation Risk116Consumer Credit Risk120-125Wholesale Credit Risk126-136Investment Portfolio Risk140Market Risk141-149Country Risk150-151Climate Risk152Operational Risk153-156Compliance Risk157Conduct Risk158Legal Risk159Estimations and Model Risk160 Line of Business and Corporate Function Control Committees oversee the risk and control environment of their respective business or function, inclusive of Operational Risk, Compliance and Conduct Risks. As part of that mandate, they are responsible for reviewing indicators of elevated or emerging risks and other data that may impact the level of compliance and operational risk in a business or function, addressing key compliance and operational risk issues, with an emphasis on processes with control concerns, and overseeing control remediation. The Asset and Liability Committee ("ALCO") is responsible for overseeing the Firm's asset and liability management ("ALM"), including the activities and frameworks supporting management of the balance sheet, liquidity risk, interest rate risk and capital risk. The Firmwide Valuation Governance Forum ("VGF") is composed of senior finance and risk executives and is responsible for overseeing the management of risks arising from valuation activities conducted across the Firm.Risk governance and oversight functionsThe Firm monitors and measures its risk through risk governance and oversight functions. The scope of a particular function or business activity may include one or more drivers, types and/or impacts of risk. For example, Country Risk Management oversees country risk which may be a driver of risk or an aggregation of exposures that could give rise to multiple risk types such as credit or market risk. The following sections discuss the risk governance and oversight functions that have been established to oversee the risks inherent in the Firm's business activities.Risk governance and oversight functionsPageStrategic Risk96Capital Risk97-107Liquidity Risk108-115Reputation Risk116Consumer Credit Risk120-125Wholesale Credit Risk126-136Investment Portfolio Risk140Market Risk141-149Country Risk150-151Climate Risk152Operational Risk153-156Compliance Risk157Conduct Risk158Legal Risk159Estimations and Model Risk160 Line of Business and Corporate Function Control Committees oversee the risk and control environment of their respective business or function, inclusive of Operational Risk, Compliance and Conduct Risks. As part of that mandate, they are responsible for reviewing indicators of elevated or emerging risks and other data that may impact the level of compliance and operational risk in a business or function, addressing key compliance and operational risk issues, with an emphasis on processes with control concerns, and overseeing control remediation. The Asset and Liability Committee ("ALCO") is responsible for overseeing the Firm's asset and liability management ("ALM"), including the activities and frameworks supporting management of the balance sheet, liquidity risk, interest rate risk and capital risk. The Firmwide Valuation Governance Forum ("VGF") is composed of senior finance and risk executives and is responsible for overseeing the management of risks arising from valuation activities conducted across the Firm. **Current (2026):** The Firm's senior management-level committees that are primarily responsible for key risk-related functions include: The Firmwide Risk Committee ("FRC") is the Firm's highest management-level risk committee. It oversees the risks inherent in the Firm's business and provides a forum for discussion of risk-related and other topics and issues that are raised or escalated by its members and other committees. The Firmwide Control Committee ("FCC") is an escalation committee for senior management to review and discuss the Firmwide compliance and operational risk environment, including identified issues, compliance and operational risk metrics and significant events that have been escalated. Line of Business and Regional Risk Committees are responsible for overseeing the governance, limits and controls that have been established within the scope of their respective activities. These committees review the ways in which the particular LOB or the businesses operating in a particular region could be exposed to adverse outcomes, with a focus on identifying, accepting, escalating and/or requiring remediation of matters brought to these committees. The Control Committees for the LOBs and certain of the Corporate functions oversee the risk and control environment of their respective business or function, inclusive of Operational Risk, Compliance and Conduct Risks. As part of that mandate, they are responsible for reviewing indicators of elevated or emerging risks and other data that may impact the level of compliance and operational risk in a business or function, addressing key compliance and operational risk issues, with an emphasis on processes with control concerns, and overseeing control remediation. The Asset and Liability Committee ("ALCO") is responsible for overseeing the Firm's asset and liability management ("ALM"), including the activities and frameworks supporting management of the balance sheet, liquidity risk, interest rate risk and capital risk. The Firmwide Valuation Governance Forum ("VGF") is composed of senior finance and risk executives and is responsible for overseeing the management of risks arising from valuation activities conducted across the Firm. 86JPMorgan Chase & Co./2025 Form 10-K 86JPMorgan Chase & Co./2025 Form 10-K 86JPMorgan Chase & Co./2025 Form 10-K 86 JPMorgan Chase & Co./2025 Form 10-K Risk governance and oversight functionsThe Firm monitors and measures its risk through risk governance and oversight functions. The scope of a particular function or business activity may include one or more drivers, types and/or impacts of risk. For example, Country Risk Management oversees country risk which may be a driver of risk or an aggregation of exposures that could give rise to multiple risk types such as credit or market risk. The following sections discuss the risk governance and oversight functions that have been established to oversee the risks inherent in the Firm's business activities.Risk governance and oversight functionsPageStrategic Risk88Capital Risk89-99Liquidity Risk100-107Reputation Risk108Consumer Credit Risk112-117Wholesale Credit Risk118-128Investment Portfolio Risk132Market Risk133-142Country Risk143-144Climate Risk145Operational Risk146-149Compliance Risk150Conduct Risk151Legal Risk152Estimations and Model Risk153 Risk governance and oversight functionsThe Firm monitors and measures its risk through risk governance and oversight functions. The scope of a particular function or business activity may include one or more drivers, types and/or impacts of risk. For example, Country Risk Management oversees country risk which may be a driver of risk or an aggregation of exposures that could give rise to multiple risk types such as credit or market risk. The following sections discuss the risk governance and oversight functions that have been established to oversee the risks inherent in the Firm's business activities.Risk governance and oversight functionsPageStrategic Risk88Capital Risk89-99Liquidity Risk100-107Reputation Risk108Consumer Credit Risk112-117Wholesale Credit Risk118-128Investment Portfolio Risk132Market Risk133-142Country Risk143-144Climate Risk145Operational Risk146-149Compliance Risk150Conduct Risk151Legal Risk152Estimations and Model Risk153 --- ## Modified Risk: Management's discussion and analysis **Key changes:** - Updated: "The following is Management's discussion and analysis of the financial condition and results of operations ("MD&A") of JPMorganChase for the year ended December 31, 2025." - Updated: "Refer to Forward-looking Statements on page 160 and Part 1, Item 1A: Risk Factors in this Form 10-K on pages 9-31 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." - Updated: "JPMorganChase had $4.4 trillion in assets and $362.4 billion in stockholders' equity as of December 31, 2025." - Updated: "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." - Updated: "JPMorganChase had $4.4 trillion in assets and $362.4 billion in stockholders' equity as of December 31, 2025." **Prior (2025):** The following is Management's discussion and analysis of the financial condition and results of operations ("MD&A") of JPMorganChase for the year ended December 31, 2024. The MD&A is included in both JPMorganChase's Annual Report for the year ended December 31, 2024 ("Annual Report") and its Annual Report on Form 10-K for the year ended December 31, 2024 ("2024 Form 10-K" or "Form 10-K") filed with the Securities and Exchange Commission ("SEC"). Refer to the Glossary of terms and acronyms on pages 327-333 for definitions of terms and acronyms used throughout the Annual Report and the 2024 Form 10-K. This Form 10-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the current beliefs and expectations of JPMorganChase's management, speak only as of the date of this Form 10-K and are subject to significant risks and uncertainties. Refer to Forward-looking Statements on page 167 and Part 1, Item 1A: Risk Factors in this Form 10-K on pages 10-37 for a discussion of certain of those risks and uncertainties and the factors that could cause JPMorganChase's actual results to differ materially because of those risks and uncertainties. There is no assurance that actual results will be in line with any outlook information set forth herein, and the Firm does not undertake to update any forward-looking statements. INTRODUCTION JPMorgan Chase & Co. (NYSE: JPM), a financial holding company incorporated under Delaware law in 1968, is a leading financial services firm based in the United States of America ("U.S."), with operations worldwide. JPMorganChase had $4.0 trillion in assets and $344.8 billion in stockholders' equity as of December 31, 2024. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Under the J.P. Morgan and Chase brands, the Firm serves millions of customers, predominantly in the U.S., and many of the world's most prominent corporate, institutional and government clients globally.JPMorganChase's principal bank subsidiary is JPMorgan Chase Bank, National Association ("JPMorgan Chase Bank, N.A."), a national banking association with U.S. branches in 48 states and Washington, D.C. JPMorganChase's principal non-bank subsidiary is J.P. Morgan Securities LLC ("J.P. Morgan Securities"), a U.S. broker-dealer. The bank and non-bank subsidiaries of JPMorganChase operate nationally as well as through overseas branches and subsidiaries, representative offices and subsidiary foreign banks. The Firm's principal operating subsidiaries outside the U.S. are J.P. Morgan Securities plc and J.P. Morgan SE ("JPMSE"), which are subsidiaries of JPMorgan Chase Bank, N.A. and are based in the United Kingdom ("U.K.") and Germany, respectively.Business segments & Corporate: Effective in the second quarter of 2024, the Firm reorganized its reportable business segments by combining the former Corporate & Investment Bank and Commercial Banking business segments to form one reportable segment, the Commercial & Investment Bank. As a result of the reorganization, the Firm has three reportable business segments - Consumer & Community Banking ("CCB"), Commercial & Investment Bank ("CIB") and Asset & Wealth Management ("AWM") - with the remaining activities in Corporate. The Firm's consumer business segment is CCB, and the Firm's wholesale business segments are CIB and AWM. A description of each of the Firm's reportable business segments, and the products and services that they provide to their respective client bases, as well as a description of Corporate activities, is provided in the Management's discussion and analysis of financial condition and results of operations section of this Form 10-K ("Management's discussion and analysis" or "MD&A") under the heading "Business Segment & Corporate Results," which begins on page 70, and in Note 32. First Republic: On May 1, 2023, JPMorganChase acquired certain assets and assumed certain liabilities of First Republic Bank (the "First Republic acquisition") from the Federal Deposit Insurance Corporation ("FDIC"). References in this Form 10-K to "associated with First Republic," "impact of First Republic" or similar expressions refer to the relevant effects of the First Republic acquisition, as well as subsequent related business and activities, as applicable. Refer to Note 34 for additional information. JPMorgan Chase & Co. (NYSE: JPM), a financial holding company incorporated under Delaware law in 1968, is a leading financial services firm based in the United States of America ("U.S."), with operations worldwide. JPMorganChase had $4.0 trillion in assets and $344.8 billion in stockholders' equity as of December 31, 2024. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Under the J.P. Morgan and Chase brands, the Firm serves millions of customers, predominantly in the U.S., and many of the world's most prominent corporate, institutional and government clients globally.JPMorganChase's principal bank subsidiary is JPMorgan Chase Bank, National Association ("JPMorgan Chase Bank, N.A."), a national banking association with U.S. branches in 48 states and Washington, D.C. JPMorganChase's principal non-bank subsidiary is J.P. Morgan Securities LLC ("J.P. Morgan Securities"), a U.S. broker-dealer. The bank and non-bank subsidiaries of JPMorganChase operate nationally as well as through overseas branches and subsidiaries, representative offices and subsidiary foreign banks. The Firm's principal operating subsidiaries outside the U.S. are J.P. Morgan Securities plc and J.P. Morgan SE ("JPMSE"), which are subsidiaries of JPMorgan Chase Bank, N.A. and are based in the United Kingdom ("U.K.") and Germany, respectively. JPMorgan Chase & Co. (NYSE: JPM), a financial holding company incorporated under Delaware law in 1968, is a leading financial services firm based in the United States of America ("U.S."), with operations worldwide. JPMorganChase had $4.0 trillion in assets and $344.8 billion in stockholders' equity as of December 31, 2024. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Under the J.P. Morgan and Chase brands, the Firm serves millions of customers, predominantly in the U.S., and many of the world's most prominent corporate, institutional and government clients globally. JPMorganChase's principal bank subsidiary is JPMorgan Chase Bank, National Association ("JPMorgan Chase Bank, N.A."), a national banking association with U.S. branches in 48 states and Washington, D.C. JPMorganChase's principal non-bank subsidiary is J.P. Morgan Securities LLC ("J.P. Morgan Securities"), a U.S. broker-dealer. The bank and non-bank subsidiaries of JPMorganChase operate nationally as well as through overseas branches and subsidiaries, representative offices and subsidiary foreign banks. The Firm's principal operating subsidiaries outside the U.S. are J.P. Morgan Securities plc and J.P. Morgan SE ("JPMSE"), which are subsidiaries of JPMorgan Chase Bank, N.A. and are based in the United Kingdom ("U.K.") and Germany, respectively. Business segments & Corporate: Effective in the second quarter of 2024, the Firm reorganized its reportable business segments by combining the former Corporate & Investment Bank and Commercial Banking business segments to form one reportable segment, the Commercial & Investment Bank. As a result of the reorganization, the Firm has three reportable business segments - Consumer & Community Banking ("CCB"), Commercial & Investment Bank ("CIB") and Asset & Wealth Management ("AWM") - with the remaining activities in Corporate. The Firm's consumer business segment is CCB, and the Firm's wholesale business segments are CIB and AWM. A description of each of the Firm's reportable business segments, and the products and services that they provide to their respective client bases, as well as a description of Corporate activities, is provided in the Management's discussion and analysis of financial condition and results of operations section of this Form 10-K ("Management's discussion and analysis" or "MD&A") under the heading "Business Segment & Corporate Results," which begins on page 70, and in Note 32. First Republic: On May 1, 2023, JPMorganChase acquired certain assets and assumed certain liabilities of First Republic Bank (the "First Republic acquisition") from the Federal Deposit Insurance Corporation ("FDIC"). References in this Form 10-K to "associated with First Republic," "impact of First Republic" or similar expressions refer to the relevant effects of the First Republic acquisition, as well as subsequent related business and activities, as applicable. Refer to Note 34 for additional information. Business segments & Corporate: Effective in the second quarter of 2024, the Firm reorganized its reportable business segments by combining the former Corporate & Investment Bank and Commercial Banking business segments to form one reportable segment, the Commercial & Investment Bank. As a result of the reorganization, the Firm has three reportable business segments - Consumer & Community Banking ("CCB"), Commercial & Investment Bank ("CIB") and Asset & Wealth Management ("AWM") - with the remaining activities in Corporate. The Firm's consumer business segment is CCB, and the Firm's wholesale business segments are CIB and AWM. A description of each of the Firm's reportable business segments, and the products and services that they provide to their respective client bases, as well as a description of Corporate activities, is provided in the Management's discussion and analysis of financial condition and results of operations section of this Form 10-K ("Management's discussion and analysis" or "MD&A") under the heading "Business Segment & Corporate Results," which begins on page 70, and in Note 32. First Republic: On May 1, 2023, JPMorganChase acquired certain assets and assumed certain liabilities of First Republic Bank (the "First Republic acquisition") from the Federal Deposit Insurance Corporation ("FDIC"). References in this Form 10-K to "associated with First Republic," "impact of First Republic" or similar expressions refer to the relevant effects of the First Republic acquisition, as well as subsequent related business and activities, as applicable. Refer to Note 34 for additional information. 52JPMorgan Chase & Co./2024 Form 10-K 52JPMorgan Chase & Co./2024 Form 10-K 52JPMorgan Chase & Co./2024 Form 10-K 52 JPMorgan Chase & Co./2024 Form 10-K The Firm's website is www.jpmorganchase.com. JPMorganChase makes available on its website, free of charge, annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as soon as reasonably practicable after it electronically files or furnishes such material to the U.S. Securities and Exchange Commission (the "SEC") at www.sec.gov. JPMorganChase makes new and important information about the Firm available on its website at https://www.jpmorganchase.com, including on the Investor Relations section of its website at https://www.jpmorganchase.com/ir. Information on the Firm's website, including documents on the website that are referenced in this Form 10-K, is not incorporated by reference into this 2024 Form 10-K or the Firm's other filings with the SEC. The Firm's website is www.jpmorganchase.com. JPMorganChase makes available on its website, free of charge, annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as soon as reasonably practicable after it electronically files or furnishes such material to the U.S. Securities and Exchange Commission (the "SEC") at www.sec.gov. JPMorganChase makes new and important information about the Firm available on its website at https://www.jpmorganchase.com, including on the Investor Relations section of its website at https://www.jpmorganchase.com/ir. Information on the Firm's website, including documents on the website that are referenced in this Form 10-K, is not incorporated by reference into this 2024 Form 10-K or the Firm's other filings with the SEC. The Firm's website is www.jpmorganchase.com. JPMorganChase makes available on its website, free of charge, annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as soon as reasonably practicable after it electronically files or furnishes such material to the U.S. Securities and Exchange Commission (the "SEC") at www.sec.gov. JPMorganChase makes new and important information about the Firm available on its website at https://www.jpmorganchase.com, including on the Investor Relations section of its website at https://www.jpmorganchase.com/ir. Information on the Firm's website, including documents on the website that are referenced in this Form 10-K, is not incorporated by reference into this 2024 Form 10-K or the Firm's other filings with the SEC. JPMorgan Chase & Co./2024 Form 10-K53 JPMorgan Chase & Co./2024 Form 10-K53 JPMorgan Chase & Co./2024 Form 10-K53 JPMorgan Chase & Co./2024 Form 10-K 53 EXECUTIVE OVERVIEW This executive overview of the MD&A highlights selected information and does not contain all of the information that is important to readers of the Firm's 2024 Form 10-K. For a complete description of the trends and uncertainties, as well as the risks and critical accounting estimates affecting the Firm, the 2024 Form 10-K should be read in its entirety.Financial performance of JPMorganChaseYear ended December 31,(in millions, except per share data and ratios)20242023ChangeSelected income statement dataNoninterest revenue$84,973 $68,837 23%Net interest income92,583 89,267 4Total net revenue177,556 158,104 12Total noninterest expense91,797 87,172 5Pre-provision profit85,759 70,932 21Provision for credit losses10,678 9,320 15Net income58,471 49,552 18Diluted earnings per share19.75 16.23 22Selected ratios and metricsReturn on common equity18 %17 %Return on tangible common equity22 21 Book value per share$116.07 $104.45 11Tangible book value per share97.3 86.08 13Capital ratios(a)(b)CET1 capital15.7 %15.0 %Tier 1 capital16.8 16.6 Total capital18.5 18.5 Memo:NII excluding Markets(c)$92,419 $90,041 3NIR excluding Markets(c)58,167 44,361 31Markets(c)30,007 27,964 7Total net revenue - managed basis$180,593 $162,366 11(a) The ratios reflect the CECL capital transition provisions. Refer to Note 27 for additional information. (b) Reflects the Firm's ratios under the Basel III Standardized approach. Refer to Capital Risk Management on pages 97-107 for additional information.(c) NII and NIR refer to net interest income and noninterest revenue, respectively. Markets consists of CIB's Fixed Income Markets and Equity Markets businesses. Visa shares: On April 8, 2024, Visa Inc. commenced an initial exchange offer for its Class B-1 common shares. On May 6, 2024, the Firm announced that Visa had accepted the Firm's tender of its 37.2 million Visa Class B-1 common shares in exchange for a combination of Visa Class B-2 common shares and Visa Class C common shares ("Visa C shares"), resulting in a $7.9 billion net gain related to Visa shares recorded in the second quarter of 2024. As of September 30, 2024, the Firm had disposed of all of its Visa C shares through sales and through a contribution to the Firm's Foundation. Refer to Market Risk Management on pages 141-149, and Notes 2 and 6 for additional information.First Republic: JPMorganChase acquired certain assets and assumed certain liabilities of First Republic Bank from the FDIC on May 1, 2023. As a result, the year-to-date results include the twelve-month impact of First Republic compared with eight months in the prior-year period. Where meaningful to the results, this is referred to in this Form 10-K as the "timing impact" of First Republic. Refer to Notes 6 and 34 for additional information.Comparisons noted in the sections below are for the full year of 2024 versus the full year of 2023, unless otherwise specified.Firmwide overviewJPMorganChase reported net income of $58.5 billion for 2024, up 18%, earnings per share of $19.75, ROE of 18% and ROTCE of 22%.•Total net revenue was $177.6 billion, up 12%, reflecting: -Net interest income ("NII") of $92.6 billion, up 4%, driven by the impact of balance sheet actions, primarily reinvestments in the investment securities portfolio, higher revolving balances in Card Services, the timing impact of First Republic, higher wholesale deposit balances, and higher Markets net interest income, largely offset by deposit margin compression across the lines of business and lower average deposit balances in CCB. NII excluding Markets was $92.4 billion, up 3%. -Noninterest revenue ("NIR") was $85.0 billion, up 23%, predominantly driven by a $7.9 billion net gain related to Visa shares recorded in the second quarter of 2024, higher asset management fees in AWM and CCB, higher investment banking fees, and lower net investment securities losses in Treasury and CIO.The prior year included the estimated bargain purchase gain of $2.8 billion associated with First Republic. This executive overview of the MD&A highlights selected information and does not contain all of the information that is important to readers of the Firm's 2024 Form 10-K. For a complete description of the trends and uncertainties, as well as the risks and critical accounting estimates affecting the Firm, the 2024 Form 10-K should be read in its entirety.Financial performance of JPMorganChaseYear ended December 31,(in millions, except per share data and ratios)20242023ChangeSelected income statement dataNoninterest revenue$84,973 $68,837 23%Net interest income92,583 89,267 4Total net revenue177,556 158,104 12Total noninterest expense91,797 87,172 5Pre-provision profit85,759 70,932 21Provision for credit losses10,678 9,320 15Net income58,471 49,552 18Diluted earnings per share19.75 16.23 22Selected ratios and metricsReturn on common equity18 %17 %Return on tangible common equity22 21 Book value per share$116.07 $104.45 11Tangible book value per share97.3 86.08 13Capital ratios(a)(b)CET1 capital15.7 %15.0 %Tier 1 capital16.8 16.6 Total capital18.5 18.5 Memo:NII excluding Markets(c)$92,419 $90,041 3NIR excluding Markets(c)58,167 44,361 31Markets(c)30,007 27,964 7Total net revenue - managed basis$180,593 $162,366 11(a) The ratios reflect the CECL capital transition provisions. Refer to Note 27 for additional information. (b) Reflects the Firm's ratios under the Basel III Standardized approach. Refer to Capital Risk Management on pages 97-107 for additional information.(c) NII and NIR refer to net interest income and noninterest revenue, respectively. Markets consists of CIB's Fixed Income Markets and Equity Markets businesses. This executive overview of the MD&A highlights selected information and does not contain all of the information that is important to readers of the Firm's 2024 Form 10-K. For a complete description of the trends and uncertainties, as well as the risks and critical accounting estimates affecting the Firm, the 2024 Form 10-K should be read in its entirety. Financial performance of JPMorganChaseYear ended December 31,(in millions, except per share data and ratios)20242023ChangeSelected income statement dataNoninterest revenue$84,973 $68,837 23%Net interest income92,583 89,267 4Total net revenue177,556 158,104 12Total noninterest expense91,797 87,172 5Pre-provision profit85,759 70,932 21Provision for credit losses10,678 9,320 15Net income58,471 49,552 18Diluted earnings per share19.75 16.23 22Selected ratios and metricsReturn on common equity18 %17 %Return on tangible common equity22 21 Book value per share$116.07 $104.45 11Tangible book value per share97.3 86.08 13Capital ratios(a)(b)CET1 capital15.7 %15.0 %Tier 1 capital16.8 16.6 Total capital18.5 18.5 Memo:NII excluding Markets(c)$92,419 $90,041 3NIR excluding Markets(c)58,167 44,361 31Markets(c)30,007 27,964 7Total net revenue - managed basis$180,593 $162,366 11 Return on tangible common equity **Current (2026):** The following is Management's discussion and analysis of the financial condition and results of operations ("MD&A") of JPMorganChase for the year ended December 31, 2025. The MD&A is included in both JPMorganChase's Annual Report for the year ended December 31, 2025 ("Annual Report") and its Annual Report on Form 10-K for the year ended December 31, 2025 ("2025 Form 10-K" or "Form 10-K") filed with the Securities and Exchange Commission ("SEC"). Refer to the Glossary of terms and acronyms on pages 320-327 for definitions of terms and acronyms used throughout the Annual Report and the 2025 Form 10-K. This Form 10-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the current beliefs and expectations of JPMorganChase's management, speak only as of the date of this Form 10-K and are subject to significant risks and uncertainties. Refer to Forward-looking Statements on page 160 and Part 1, Item 1A: Risk Factors in this Form 10-K on pages 9-31 for a discussion of certain of those risks and uncertainties and the factors that could cause JPMorganChase's actual results to differ materially because of those risks and uncertainties. There is no assurance that actual results will be in line with any outlook information set forth herein, and the Firm does not undertake to update any forward-looking statements. INTRODUCTION JPMorgan Chase & Co. (NYSE: JPM), a financial holding company incorporated under Delaware law in 1968, is a leading financial services firm based in the United States of America ("U.S."), with operations worldwide. JPMorganChase had $4.4 trillion in assets and $362.4 billion in stockholders' equity as of December 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 62-82 and Note 32 for a description of the Firm's reportable business segments and the products and services that they provide to their respective client bases, as well as a description of Corporate activities.The Firm's website is www.jpmorganchase.com. JPMorganChase makes available on its website, free of charge, annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as soon as reasonably practicable after it electronically files or furnishes such material to the U.S. Securities and Exchange Commission (the "SEC") at www.sec.gov. JPMorganChase makes new and important information about the Firm available on its website at https://www.jpmorganchase.com, including on the Investor Relations section of its website at https://www.jpmorganchase.com/ir. Information on the Firm's website, including documents on the website that are referenced in this Form 10-K, is not incorporated by reference into this 2025 Form 10-K or the Firm's other filings with the SEC. 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 $362.4 billion in stockholders' equity as of December 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. 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 $362.4 billion in stockholders' equity as of December 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 62-82 and Note 32 for a description of the Firm's reportable business segments and the products and services that they provide to their respective client bases, as well as a description of Corporate activities.The Firm's website is www.jpmorganchase.com. JPMorganChase makes available on its website, free of charge, annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as soon as reasonably practicable after it electronically files or furnishes such material to the U.S. Securities and Exchange Commission (the "SEC") at www.sec.gov. JPMorganChase makes new and important information about the Firm available on its website at https://www.jpmorganchase.com, including on the Investor Relations section of its website at https://www.jpmorganchase.com/ir. Information on the Firm's website, including documents on the website that are referenced in this Form 10-K, is not incorporated by reference into this 2025 Form 10-K or the Firm's other filings with the SEC. 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 62-82 and Note 32 for a description of the Firm's reportable business segments and the products and services that they provide to their respective client bases, as well as a description of Corporate activities. The Firm's website is www.jpmorganchase.com. JPMorganChase makes available on its website, free of charge, annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as soon as reasonably practicable after it electronically files or furnishes such material to the U.S. Securities and Exchange Commission (the "SEC") at www.sec.gov. JPMorganChase makes new and important information about the Firm available on its website at https://www.jpmorganchase.com, including on the Investor Relations section of its website at https://www.jpmorganchase.com/ir. Information on the Firm's website, including documents on the website that are referenced in this Form 10-K, is not incorporated by reference into this 2025 Form 10-K or the Firm's other filings with the SEC. 46JPMorgan Chase & Co./2025 Form 10-K 46JPMorgan Chase & Co./2025 Form 10-K 46JPMorgan Chase & Co./2025 Form 10-K 46 JPMorgan Chase & Co./2025 Form 10-K EXECUTIVE OVERVIEW This executive overview of the MD&A highlights selected information and does not contain all of the information that is important to readers of the Firm's 2025 Form 10-K. For a complete description of the trends and uncertainties, as well as the risks and critical accounting estimates affecting the Firm, the 2025 Form 10-K should be read in its entirety.Financial performance of JPMorganChaseYear ended December 31,(in millions, except per share data and ratios)20252024ChangeSelected income statement dataNoninterest revenue$87,004 $84,973 2%Net interest income95,443 92,583 3Total net revenue182,447 177,556 3Total noninterest expense95,640 91,797 4Pre-provision profit86,807 85,759 1Provision for credit losses14,212 10,678 33Net income57,048 58,471 (2)Diluted earnings per share20.02 19.75 1Selected ratios and metricsReturn on common equity17 %18 %Return on tangible common equity20 22 Book value per share$126.99 $116.07 9Tangible book value per share107.56 97.3 11Capital ratios - Standardized(a)(b)CET1 capital14.6 %15.7 %Tier 1 capital15.5 16.8 Total capital17.4 18.5 Memo:NII excluding Markets(c)$92,591 $92,419 - NIR excluding Markets(c)57,208 58,167 (2)Markets(d)35,782 30,007 19Total net revenue - managed basis$185,581 $180,593 3%(a) As of January 1, 2025, the benefit from the CECL capital transition provision had been fully phased out. For the year ended December 31, 2024, the ratios reflected the CECL capital transition provisions. Refer to Note 27 for additional information. (b) As of December 31, 2025, the Advanced risk-based ratios became more binding on the Firm than the Standardized risk-based ratios. Refer to Capital Risk Management on pages 89-99 for additional information.(c) NII and NIR refer to net interest income and noninterest revenue, respectively. (d) 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.Apple Card transaction: On January 7, 2026, JPMorganChase announced that Chase will become the new issuer of Apple Card. The Firm entered into a forward purchase commitment on December 30, 2025 to acquire the Apple credit card portfolio, with an expected closing in approximately 24 months (the "Apple Card transaction").Refer to CCB segment results on pages 65-68, Capital Risk Management on pages 89-99 and Notes 4, 13, 27 and 28 for additional information.Comparisons noted in the sections below are for the full year of 2025 versus the full year of 2024, unless otherwise specified.Firmwide overviewJPMorganChase reported net income of $57.0 billion for 2025, down 2%, earnings per share of $20.02, ROE of 17% and ROTCE of 20%.•Total net revenue was $182.4 billion, up 3%, reflecting: -Net interest income ("NII") of $95.4 billion, up 3%, driven by higher Markets net interest income, higher revolving balances in Card Services, higher wholesale deposit balances, and the impact of investment securities activity. These factors were largely offset by deposit margin compression and the impact of lower rates. NII excluding Markets was $92.6 billion, flat when compared with the prior year. -Noninterest revenue ("NIR") was $87.0 billion, up 2%, reflecting higher Markets noninterest revenue, higher asset management fees in AWM and CCB, higher auto operating lease income, lower net investment securities losses in Treasury and CIO, higher Payments fees, higher investment banking fees, and a $588 million First Republic-related gain recorded in the first quarter of 2025. These increases were predominantly offset by the absence of the $7.9 billion net gain related to Visa shares recorded in the second quarter of 2024, as well as lower card income in the current year.•Noninterest expense was $95.6 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, higher auto lease depreciation, and continued investments in technology and marketing, as well as higher occupancy expense. These factors were partially offset by FDIC special assessment accrual releases of $763 million compared with an increase of $725 million in the prior year, as well as the absence of a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024. This executive overview of the MD&A highlights selected information and does not contain all of the information that is important to readers of the Firm's 2025 Form 10-K. For a complete description of the trends and uncertainties, as well as the risks and critical accounting estimates affecting the Firm, the 2025 Form 10-K should be read in its entirety.Financial performance of JPMorganChaseYear ended December 31,(in millions, except per share data and ratios)20252024ChangeSelected income statement dataNoninterest revenue$87,004 $84,973 2%Net interest income95,443 92,583 3Total net revenue182,447 177,556 3Total noninterest expense95,640 91,797 4Pre-provision profit86,807 85,759 1Provision for credit losses14,212 10,678 33Net income57,048 58,471 (2)Diluted earnings per share20.02 19.75 1Selected ratios and metricsReturn on common equity17 %18 %Return on tangible common equity20 22 Book value per share$126.99 $116.07 9Tangible book value per share107.56 97.3 11Capital ratios - Standardized(a)(b)CET1 capital14.6 %15.7 %Tier 1 capital15.5 16.8 Total capital17.4 18.5 Memo:NII excluding Markets(c)$92,591 $92,419 - NIR excluding Markets(c)57,208 58,167 (2)Markets(d)35,782 30,007 19Total net revenue - managed basis$185,581 $180,593 3%(a) As of January 1, 2025, the benefit from the CECL capital transition provision had been fully phased out. For the year ended December 31, 2024, the ratios reflected the CECL capital transition provisions. Refer to Note 27 for additional information. (b) As of December 31, 2025, the Advanced risk-based ratios became more binding on the Firm than the Standardized risk-based ratios. Refer to Capital Risk Management on pages 89-99 for additional information.(c) NII and NIR refer to net interest income and noninterest revenue, respectively. (d) 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. This executive overview of the MD&A highlights selected information and does not contain all of the information that is important to readers of the Firm's 2025 Form 10-K. For a complete description of the trends and uncertainties, as well as the risks and critical accounting estimates affecting the Firm, the 2025 Form 10-K should be read in its entirety. Financial performance of JPMorganChaseYear ended December 31,(in millions, except per share data and ratios)20252024ChangeSelected income statement dataNoninterest revenue$87,004 $84,973 2%Net interest income95,443 92,583 3Total net revenue182,447 177,556 3Total noninterest expense95,640 91,797 4Pre-provision profit86,807 85,759 1Provision for credit losses14,212 10,678 33Net income57,048 58,471 (2)Diluted earnings per share20.02 19.75 1Selected ratios and metricsReturn on common equity17 %18 %Return on tangible common equity20 22 Book value per share$126.99 $116.07 9Tangible book value per share107.56 97.3 11Capital ratios - Standardized(a)(b)CET1 capital14.6 %15.7 %Tier 1 capital15.5 16.8 Total capital17.4 18.5 Memo:NII excluding Markets(c)$92,591 $92,419 - NIR excluding Markets(c)57,208 58,167 (2)Markets(d)35,782 30,007 19Total net revenue - managed basis$185,581 $180,593 3% Return on tangible common equity --- ## Modified Risk: Leverage-based capital metrics:(a) **Key changes:** - Updated: "Adjusted average assets(b) (a)As of January 1, 2025, the benefit from the CECL capital transition provision had been fully phased out." - Updated: "(b)Adjusted average assets, for purposes of calculating the leverage ratios, includes quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 capital, predominantly goodwill (inclusive of estimated equity method goodwill) and other intangible assets." - Updated: "94JPMorgan Chase & Co./2025 Form 10-K 94JPMorgan Chase & Co./2025 Form 10-K 94JPMorgan Chase & Co./2025 Form 10-K 94 JPMorgan Chase & Co./2025 Form 10-K Capital components The following table presents reconciliations of total stockholders' equity to CET1 capital, Tier 1 capital and Total capital as of December 31, 2025 and 2024.(in millions)December 31,2025December 31,2024Total stockholders' equity$362,438 $344,758 Less: Preferred stock20,045 20,050 Common stockholders' equity342,393 324,708 Add: Certain deferred tax liabilities(a)2,916 2,943 Other CET1 capital adjustments(b)(198)4,499 Less:Goodwill(c)54,082 53,763 Other intangible assets2,560 2,874 Standardized/Advanced CET1 capital288,469 275,513 Add: Preferred stock20,045 20,050 Less: Other Tier 1 adjustments884 682 Standardized/Advanced Tier 1 capital$307,630 $294,881 Long-term debt and other instruments qualifying as Tier 2 capital$13,539 $10,312 Qualifying allowance for credit losses(d)23,733 20,992 Other(1,059)(596)Standardized Tier 2 capital$36,213 $30,708 Standardized Total capital$343,843 $325,589 Adjustment in qualifying allowance for credit losses for Advanced Tier 2 capital(e)(f)(14,881)(13,691)Advanced Tier 2 capital$21,332 $17,017 Advanced Total capital$328,962 $311,898 (a)Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in nontaxable transactions, which are netted against goodwill and other intangibles when calculating CET1 capital.(b)As of December 31, 2025 and 2024, included a net reduction for certain deferred tax assets related to tax attribute carryforwards of $1.8 billion and $125 million, respectively, and a net benefit associated with cash flow hedges and debit valuation adjustments ("DVA") related to structured notes recorded in AOCI of $2.6 billion and $5.2 billion, respectively." **Prior (2025):** Adjusted average assets(b) (a)The capital metrics reflect the CECL capital transition provisions. Refer to Note 27 for additional information. (b)Adjusted average assets, for purposes of calculating the leverage ratios, includes quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 capital, predominantly goodwill, inclusive of estimated equity method goodwill, and other intangible assets. (c)Represents minimum requirements and regulatory buffers applicable to the Firm. Refer to Note 27 for additional information. 102JPMorgan Chase & Co./2024 Form 10-K 102JPMorgan Chase & Co./2024 Form 10-K 102JPMorgan Chase & Co./2024 Form 10-K 102 JPMorgan Chase & Co./2024 Form 10-K Capital components The following table presents reconciliations of total stockholders' equity to Basel III CET1 capital, Tier 1 capital and Total capital as of December 31, 2024 and 2023.(in millions)December 31,2024December 31,2023Total stockholders' equity$344,758 $327,878 Less: Preferred stock20,050 27,404 Common stockholders' equity324,708 300,474 Add: Certain deferred tax liabilities(a)2,943 2,996 Other CET1 capital adjustments(b)4,499 4,717 Less:Goodwill(c)53,763 54,377 Other intangible assets2,874 3,225 Standardized/Advanced CET1 capital275,513 250,585 Add: Preferred stock20,050 27,404 Less: Other Tier 1 adjustments682 683 Standardized/Advanced Tier 1 capital$294,881 $277,306 Long-term debt and other instruments qualifying as Tier 2 capital$10,312 $11,779 Qualifying allowance for credit losses(d)20,992 20,102 Other(596)(690)Standardized Tier 2 capital$30,708 $31,191 Standardized Total capital$325,589 $308,497 Adjustment in qualifying allowance for credit losses for Advanced Tier 2 capital(e)(f)(13,691)(13,080)Advanced Tier 2 capital$17,017 $18,111 Advanced Total capital$311,898 $295,417 (a)Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in nontaxable transactions, which are netted against goodwill and other intangibles when calculating CET1 capital.(b)As of December 31, 2024 and 2023, included a net benefit associated with cash flow hedges and debit valuation adjustments ("DVA") related to structured notes recorded in AOCI of $5.2 billion and $4.3 billion and the benefit from the CECL capital transition provisions of $720 million and $1.4 billion, respectively.(c)Goodwill deducted from capital includes goodwill associated with equity method investments in nonconsolidated financial institutions based on regulatory requirements. Refer to page 140 for additional information on principal investment risk.(d)Represents the allowance for credit losses eligible for inclusion in Tier 2 capital up to 1.25% of credit risk RWA, including the impact of the CECL capital transition provision with any excess deducted from RWA. Refer to Note 27 for additional information on the CECL capital transition.(e)Represents an adjustment to qualifying allowance for credit losses for the excess of eligible credit reserves over expected credit losses up to 0.6% of credit risk RWA, including the impact of the CECL capital transition provision with any excess deducted from RWA. (f)As of December 31, 2024 and 2023, included an incremental $541 million and $655 million allowance for credit losses, respectively, on certain assets associated with First Republic to which the Standardized approach has been applied, as permitted by the transition provisions in the U.S. capital rules.Capital rollforward The following table presents the changes in Basel III CET1 capital, Tier 1 capital and Tier 2 capital for the year ended December 31, 2024.Year ended December 31, (in millions)2024Standardized/Advanced CET1 capital at December 31, 2023$250,585 Net income applicable to common equity57,212 Dividends declared on common stock(13,786)Net purchase of treasury stock(17,801)Changes in additional paid-in capital783 Changes related to AOCI applicable to capital:Unrealized gains/(losses) on investment securities(87)Translation adjustments, net of hedges(a)(858)Fair value hedges(87)Defined benefit pension and other postretirement employee benefit ("OPEB") plans(63)Changes related to other CET1 capital adjustments(b)(385)Change in Standardized/Advanced CET1 capital24,928 Standardized/Advanced CET1 capital at December 31, 2024$275,513 Standardized/Advanced Tier 1 capital at December 31, 2023$277,306 Change in CET1 capital(b)24,928 Net redemptions of noncumulative perpetual preferred stock(7,354)Other1 Change in Standardized/Advanced Tier 1 capital17,575 Standardized/Advanced Tier 1 capital at December 31, 2024$294,881 Standardized Tier 2 capital at December 31, 2023$31,191 Change in long-term debt and other instruments qualifying as Tier 2(1,467)Change in qualifying allowance for credit losses(b)890 Other94 Change in Standardized Tier 2 capital(483)Standardized Tier 2 capital at December 31, 2024$30,708 Standardized Total capital at December 31, 2024$325,589 Advanced Tier 2 capital at December 31, 2023$18,111 Change in long-term debt and other instruments qualifying as Tier 2(1,467)Change in qualifying allowance for credit losses(b)(c)279 Other94 Change in Advanced Tier 2 capital(1,094)Advanced Tier 2 capital at December 31, 2024$17,017 Advanced Total capital at December 31, 2024$311,898 (a)Includes foreign currency translation adjustments and the impact of related derivatives.(b)Includes the impact of the CECL capital transition provisions and the cumulative effect of changes in accounting principles. Refer to Note 1 for additional information on changes in accounting principles and Note 27 for additional information on the CECL capital transition provisions.(c)As of December 31, 2024 and 2023, included an incremental $541 million and $655 million allowance for credit losses, respectively, on certain assets associated with First Republic to which the Standardized approach has been applied, as permitted by the transition provisions in the U.S. capital rules. Capital components The following table presents reconciliations of total stockholders' equity to Basel III CET1 capital, Tier 1 capital and Total capital as of December 31, 2024 and 2023.(in millions)December 31,2024December 31,2023Total stockholders' equity$344,758 $327,878 Less: Preferred stock20,050 27,404 Common stockholders' equity324,708 300,474 Add: Certain deferred tax liabilities(a)2,943 2,996 Other CET1 capital adjustments(b)4,499 4,717 Less:Goodwill(c)53,763 54,377 Other intangible assets2,874 3,225 Standardized/Advanced CET1 capital275,513 250,585 Add: Preferred stock20,050 27,404 Less: Other Tier 1 adjustments682 683 Standardized/Advanced Tier 1 capital$294,881 $277,306 Long-term debt and other instruments qualifying as Tier 2 capital$10,312 $11,779 Qualifying allowance for credit losses(d)20,992 20,102 Other(596)(690)Standardized Tier 2 capital$30,708 $31,191 Standardized Total capital$325,589 $308,497 Adjustment in qualifying allowance for credit losses for Advanced Tier 2 capital(e)(f)(13,691)(13,080)Advanced Tier 2 capital$17,017 $18,111 Advanced Total capital$311,898 $295,417 (a)Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in nontaxable transactions, which are netted against goodwill and other intangibles when calculating CET1 capital.(b)As of December 31, 2024 and 2023, included a net benefit associated with cash flow hedges and debit valuation adjustments ("DVA") related to structured notes recorded in AOCI of $5.2 billion and $4.3 billion and the benefit from the CECL capital transition provisions of $720 million and $1.4 billion, respectively.(c)Goodwill deducted from capital includes goodwill associated with equity method investments in nonconsolidated financial institutions based on regulatory requirements. Refer to page 140 for additional information on principal investment risk.(d)Represents the allowance for credit losses eligible for inclusion in Tier 2 capital up to 1.25% of credit risk RWA, including the impact of the CECL capital transition provision with any excess deducted from RWA. Refer to Note 27 for additional information on the CECL capital transition.(e)Represents an adjustment to qualifying allowance for credit losses for the excess of eligible credit reserves over expected credit losses up to 0.6% of credit risk RWA, including the impact of the CECL capital transition provision with any excess deducted from RWA. (f)As of December 31, 2024 and 2023, included an incremental $541 million and $655 million allowance for credit losses, respectively, on certain assets associated with First Republic to which the Standardized approach has been applied, as permitted by the transition provisions in the U.S. capital rules. Capital components The following table presents reconciliations of total stockholders' equity to Basel III CET1 capital, Tier 1 capital and Total capital as of December 31, 2024 and 2023. (in millions)December 31,2024December 31,2023Total stockholders' equity$344,758 $327,878 Less: Preferred stock20,050 27,404 Common stockholders' equity324,708 300,474 Add: Certain deferred tax liabilities(a)2,943 2,996 Other CET1 capital adjustments(b)4,499 4,717 Less:Goodwill(c)53,763 54,377 Other intangible assets2,874 3,225 Standardized/Advanced CET1 capital275,513 250,585 Add: Preferred stock20,050 27,404 Less: Other Tier 1 adjustments682 683 Standardized/Advanced Tier 1 capital$294,881 $277,306 Long-term debt and other instruments qualifying as Tier 2 capital$10,312 $11,779 Qualifying allowance for credit losses(d)20,992 20,102 Other(596)(690)Standardized Tier 2 capital$30,708 $31,191 Standardized Total capital$325,589 $308,497 Adjustment in qualifying allowance for credit losses for Advanced Tier 2 capital(e)(f)(13,691)(13,080)Advanced Tier 2 capital$17,017 $18,111 Advanced Total capital$311,898 $295,417 Certain deferred tax liabilities(a) Other CET1 capital adjustments(b) Goodwill(c) **Current (2026):** Adjusted average assets(b) (a)As of January 1, 2025, the benefit from the CECL capital transition provision had been fully phased out. The capital metrics for the year ended December 31, 2024 reflected the CECL capital transition provisions. Refer to Note 27 for additional information. (b)Adjusted average assets, for purposes of calculating the leverage ratios, includes quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 capital, predominantly goodwill (inclusive of estimated equity method goodwill) and other intangible assets. (c)Represents minimum requirements and regulatory buffers applicable to the Firm. Refer to Note 27 for additional information. 94JPMorgan Chase & Co./2025 Form 10-K 94JPMorgan Chase & Co./2025 Form 10-K 94JPMorgan Chase & Co./2025 Form 10-K 94 JPMorgan Chase & Co./2025 Form 10-K Capital components The following table presents reconciliations of total stockholders' equity to CET1 capital, Tier 1 capital and Total capital as of December 31, 2025 and 2024.(in millions)December 31,2025December 31,2024Total stockholders' equity$362,438 $344,758 Less: Preferred stock20,045 20,050 Common stockholders' equity342,393 324,708 Add: Certain deferred tax liabilities(a)2,916 2,943 Other CET1 capital adjustments(b)(198)4,499 Less:Goodwill(c)54,082 53,763 Other intangible assets2,560 2,874 Standardized/Advanced CET1 capital288,469 275,513 Add: Preferred stock20,045 20,050 Less: Other Tier 1 adjustments884 682 Standardized/Advanced Tier 1 capital$307,630 $294,881 Long-term debt and other instruments qualifying as Tier 2 capital$13,539 $10,312 Qualifying allowance for credit losses(d)23,733 20,992 Other(1,059)(596)Standardized Tier 2 capital$36,213 $30,708 Standardized Total capital$343,843 $325,589 Adjustment in qualifying allowance for credit losses for Advanced Tier 2 capital(e)(f)(14,881)(13,691)Advanced Tier 2 capital$21,332 $17,017 Advanced Total capital$328,962 $311,898 (a)Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in nontaxable transactions, which are netted against goodwill and other intangibles when calculating CET1 capital.(b)As of December 31, 2025 and 2024, included a net reduction for certain deferred tax assets related to tax attribute carryforwards of $1.8 billion and $125 million, respectively, and a net benefit associated with cash flow hedges and debit valuation adjustments ("DVA") related to structured notes recorded in AOCI of $2.6 billion and $5.2 billion, respectively. As of January 1, 2025, the benefit from the CECL capital transition provision had been fully phased out. The year ended December 31, 2024 included benefit from the CECL capital transitions of $720 million.(c)Goodwill deducted from capital includes goodwill associated with equity method investments in nonconsolidated financial institutions based on regulatory requirements. Refer to page 132 for additional information on principal investment risk.(d)Represents the allowance for credit losses eligible for inclusion in Tier 2 capital up to 1.25% of credit risk RWA. As of January 1, 2025, the benefit from the CECL capital transition provision had been fully phased out. The year ended December 31, 2024 included the impact of the CECL capital transition provision with any excess deducted from RWA. Refer to Note 27 for additional information on the CECL capital transition.(e)Represents an adjustment to qualifying allowance for credit losses for the excess of eligible credit reserves over expected credit losses up to 0.6% of credit risk RWA. As of January 1, 2025, the benefit from the CECL capital transition provision had been fully phased out. The year ended December 31, 2024 included the impact of the CECL capital transition provision with any excess deducted from RWA. (f)As of December 31, 2025 and 2024, included an incremental $468 million and $541 million allowance for credit losses, respectively, on certain assets associated with First Republic to which the Standardized approach has been applied, as permitted by the transition provisions in the U.S. capital rules.Capital rollforwardThe following table presents the changes in CET1 capital, Tier 1 capital and Tier 2 capital for the year ended December 31, 2025.Year ended December 31, (in millions)2025Standardized/Advanced CET1 capital at December 31, 2024$275,513 Net income applicable to common equity55,949 Dividends declared on common stock(16,060)Net purchase of treasury stock(30,573)Changes in additional paid-in capital203 Changes related to AOCI applicable to capital:Unrealized gains/(losses) on investment securities3,569 Translation adjustments, net of hedges(a)1,339 Fair value hedges64 Defined benefit pension and other postretirement employee benefit ("OPEB") plans579 Changes related to other CET1 capital adjustments(b)(2,114)Change in Standardized/Advanced CET1 capital12,956 Standardized/Advanced CET1 capital at December 31, 2025$288,469 Standardized/Advanced Tier 1 capital at December 31, 2024$294,881 Change in CET1 capital(b)12,956 Net redemptions of noncumulative perpetual preferred stock(5)Other(202)Change in Standardized/Advanced Tier 1 capital12,749 Standardized/Advanced Tier 1 capital at December 31, 2025$307,630 Standardized Tier 2 capital at December 31, 2024$30,708 Change in long-term debt and other instruments qualifying as Tier 2(c)3,227 Change in qualifying allowance for credit losses(b)2,741 Other(463)Change in Standardized Tier 2 capital5,505 Standardized Tier 2 capital at December 31, 2025$36,213 Standardized Total capital at December 31, 2025$343,843 Advanced Tier 2 capital at December 31, 2024$17,017 Change in long-term debt and other instruments qualifying as Tier 2(c)3,227 Change in qualifying allowance for credit losses(b)(d)1,551 Other(463)Change in Advanced Tier 2 capital4,315 Advanced Tier 2 capital at December 31, 2025$21,332 Advanced Total capital at December 31, 2025$328,962 (a)Includes foreign currency translation adjustments and the impact of related derivatives.(b)Reflects the final phase out of the CECL benefit as well as deductions for certain deferred tax assets related to tax attribute carryforwards. Refer to Note 27 for additional information on the CECL capital transition.(c)Includes issuance of $4.0 billion of subordinated notes due 2036. Refer to Long-term funding on page 106 and Note 20 for additional information on the Firm's subordinated debt.(d)As of December 31, 2025 and 2024, included an incremental $468 million and $541 million allowance for credit losses, respectively, on certain assets associated with First Republic to which the Standardized approach has been applied, as permitted by the transition provisions in the U.S. capital rules. Capital components The following table presents reconciliations of total stockholders' equity to CET1 capital, Tier 1 capital and Total capital as of December 31, 2025 and 2024.(in millions)December 31,2025December 31,2024Total stockholders' equity$362,438 $344,758 Less: Preferred stock20,045 20,050 Common stockholders' equity342,393 324,708 Add: Certain deferred tax liabilities(a)2,916 2,943 Other CET1 capital adjustments(b)(198)4,499 Less:Goodwill(c)54,082 53,763 Other intangible assets2,560 2,874 Standardized/Advanced CET1 capital288,469 275,513 Add: Preferred stock20,045 20,050 Less: Other Tier 1 adjustments884 682 Standardized/Advanced Tier 1 capital$307,630 $294,881 Long-term debt and other instruments qualifying as Tier 2 capital$13,539 $10,312 Qualifying allowance for credit losses(d)23,733 20,992 Other(1,059)(596)Standardized Tier 2 capital$36,213 $30,708 Standardized Total capital$343,843 $325,589 Adjustment in qualifying allowance for credit losses for Advanced Tier 2 capital(e)(f)(14,881)(13,691)Advanced Tier 2 capital$21,332 $17,017 Advanced Total capital$328,962 $311,898 (a)Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in nontaxable transactions, which are netted against goodwill and other intangibles when calculating CET1 capital.(b)As of December 31, 2025 and 2024, included a net reduction for certain deferred tax assets related to tax attribute carryforwards of $1.8 billion and $125 million, respectively, and a net benefit associated with cash flow hedges and debit valuation adjustments ("DVA") related to structured notes recorded in AOCI of $2.6 billion and $5.2 billion, respectively. As of January 1, 2025, the benefit from the CECL capital transition provision had been fully phased out. The year ended December 31, 2024 included benefit from the CECL capital transitions of $720 million.(c)Goodwill deducted from capital includes goodwill associated with equity method investments in nonconsolidated financial institutions based on regulatory requirements. Refer to page 132 for additional information on principal investment risk.(d)Represents the allowance for credit losses eligible for inclusion in Tier 2 capital up to 1.25% of credit risk RWA. As of January 1, 2025, the benefit from the CECL capital transition provision had been fully phased out. The year ended December 31, 2024 included the impact of the CECL capital transition provision with any excess deducted from RWA. Refer to Note 27 for additional information on the CECL capital transition.(e)Represents an adjustment to qualifying allowance for credit losses for the excess of eligible credit reserves over expected credit losses up to 0.6% of credit risk RWA. As of January 1, 2025, the benefit from the CECL capital transition provision had been fully phased out. The year ended December 31, 2024 included the impact of the CECL capital transition provision with any excess deducted from RWA. (f)As of December 31, 2025 and 2024, included an incremental $468 million and $541 million allowance for credit losses, respectively, on certain assets associated with First Republic to which the Standardized approach has been applied, as permitted by the transition provisions in the U.S. capital rules. Capital components The following table presents reconciliations of total stockholders' equity to CET1 capital, Tier 1 capital and Total capital as of December 31, 2025 and 2024. (in millions)December 31,2025December 31,2024Total stockholders' equity$362,438 $344,758 Less: Preferred stock20,045 20,050 Common stockholders' equity342,393 324,708 Add: Certain deferred tax liabilities(a)2,916 2,943 Other CET1 capital adjustments(b)(198)4,499 Less:Goodwill(c)54,082 53,763 Other intangible assets2,560 2,874 Standardized/Advanced CET1 capital288,469 275,513 Add: Preferred stock20,045 20,050 Less: Other Tier 1 adjustments884 682 Standardized/Advanced Tier 1 capital$307,630 $294,881 Long-term debt and other instruments qualifying as Tier 2 capital$13,539 $10,312 Qualifying allowance for credit losses(d)23,733 20,992 Other(1,059)(596)Standardized Tier 2 capital$36,213 $30,708 Standardized Total capital$343,843 $325,589 Adjustment in qualifying allowance for credit losses for Advanced Tier 2 capital(e)(f)(14,881)(13,691)Advanced Tier 2 capital$21,332 $17,017 Advanced Total capital$328,962 $311,898 Certain deferred tax liabilities(a) Other CET1 capital adjustments(b) Goodwill(c) --- ## Modified Risk: Total derivative notional amounts **Key changes:** - Updated: "(a)Refer to the Credit derivatives discussion on pages 215-217 for more information on volumes and types of credit derivative contracts." - Updated: "JPMorgan Chase & Co./2025 Form 10-K205 JPMorgan Chase & Co./2025 Form 10-K205 JPMorgan Chase & Co./2025 Form 10-K205 JPMorgan Chase & Co./2025 Form 10-K 205" **Prior (2025):** (a)Refer to the Credit derivatives discussion on pages 222-224 for more information on volumes and types of credit derivative contracts. (b)Represents the sum of gross long and gross short third-party notional derivative contracts. While the notional amounts disclosed above give an indication of the volume of the Firm's derivatives activity, the notional amounts significantly exceed, in the Firm's view, the possible losses that could arise from such transactions. For most derivative contracts, the notional amount is not exchanged; it is simply a reference amount used to calculate payments. 212JPMorgan Chase & Co./2024 Form 10-K 212JPMorgan Chase & Co./2024 Form 10-K 212JPMorgan Chase & Co./2024 Form 10-K 212 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** (a)Refer to the Credit derivatives discussion on pages 215-217 for more information on volumes and types of credit derivative contracts. (b)Represents the sum of gross long and gross short third-party notional derivative contracts. While the notional amounts disclosed above give an indication of the volume of the Firm's derivatives activity, the notional amounts significantly exceed, in the Firm's view, the possible losses that could arise from such transactions. For most derivative contracts, the notional amount is not exchanged; it is simply a reference amount used to calculate payments. JPMorgan Chase & Co./2025 Form 10-K205 JPMorgan Chase & Co./2025 Form 10-K205 JPMorgan Chase & Co./2025 Form 10-K205 JPMorgan Chase & Co./2025 Form 10-K 205 --- ## Modified Risk: tax expense/(benefit) **Key changes:** - Updated: "Income tax expense/(benefit) (f) Net income Average equity Return on equity (a)Segment results on a managed basis reflect revenue on a FTE basis with the corresponding income tax impact recorded within income tax expense/(benefit)." - Updated: "(e)Includes a provision for lending-related commitments of $2.2 billion related to the Apple Card transaction." **Prior (2025):** Income tax expense/(benefit) Average equity Return on equity (a)Segment results on a managed basis reflect revenue on a FTE basis with the corresponding income tax impact recorded within income tax expense/(benefit). These adjustments are eliminated in reconciling items to arrive at the Firm's reported U.S. GAAP results. In addition, effective January 1, 2024, the Firm adopted updates to the Accounting for Investments in Tax Credit Structures guidance, under the modified retrospective method. Refer to Notes 1, 6, 14 and 25 for additional information. (b)Excludes expense related to services provided by Corporate support units, which is allocated from Corporate to each respective reportable business segment, as applicable, through noncompensation expense. (c)Reflects occupancy; technology, communications and equipment; professional and outside services; marketing; and other expense. Refer to Note 6 for additional information on other expense. (d)Certain services are provided by Corporate and used by each of the reportable business segments. The costs of these services, including compensation-related costs, are allocated from Corporate to the respective reportable business segments, with the allocations recorded in noncompensation expense. (e)In the first quarter of 2023, the allocations of revenue and expense to CCB associated with a Merchant Services revenue sharing agreement were discontinued and are now retained in Payments in CIB. Prior-period amounts have been revised to conform with the current presentation. (f)Included a $7.9 billion net gain related to Visa shares recorded in the second quarter of 2024. Refer to Notes 2 and 6 for additional information. (g)Included a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024. Refer to Notes 2 and 6 for additional information. 316JPMorgan Chase & Co./2024 Form 10-K 316JPMorgan Chase & Co./2024 Form 10-K 316JPMorgan Chase & Co./2024 Form 10-K 316 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** Income tax expense/(benefit) (f) Net income Average equity Return on equity (a)Segment results on a managed basis reflect revenue on a FTE basis with the corresponding income tax impact recorded within income tax expense/(benefit). These adjustments are eliminated in reconciling items to arrive at the Firm's reported U.S. GAAP results. In addition, effective January 1, 2024, the Firm adopted updates to the Accounting for Investments in Tax Credit Structures guidance, under the modified retrospective method. Refer to Notes 1, 6, 14 and 25 for additional information. (b)Excludes expense related to services provided by Corporate support units, which is allocated from Corporate to each respective reportable business segment, as applicable, through noncompensation expense. (c)Reflects occupancy; technology, communications and equipment; professional and outside services; marketing; and other expense. Refer to Note 6 for additional information on other expense. (d)Certain services are provided by Corporate and used by each of the reportable business segments. The costs of these services, including compensation-related costs, are allocated from Corporate to the respective reportable business segments, with the allocations recorded in noncompensation expense. (e)Includes a provision for lending-related commitments of $2.2 billion related to the Apple Card transaction. (f)Included a $774 million income tax benefit recorded in the second quarter of 2025, driven by the resolution of certain tax audits and the impact of tax regulations related to foreign currency translation gains and losses finalized in 2024 and effective for 2025. (g)Included the net gain related to Visa shares of $7.9 billion recorded in the second quarter of 2024. Refer to Note 6 for additional information. (h)Included a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024. Refer to Note 6 for additional information. JPMorgan Chase & Co./2025 Form 10-K309 JPMorgan Chase & Co./2025 Form 10-K309 JPMorgan Chase & Co./2025 Form 10-K309 JPMorgan Chase & Co./2025 Form 10-K 309 --- ## Modified Risk: Notes to consolidated financial statements **Key changes:** - Updated: "Deferred taxes Deferred income tax expense/(benefit) reflects the differences between assets and liabilities measured for financial reporting purposes versus income tax return purposes." - Updated: "December 31, (in millions)20252024Deferred tax assetsAllowance for loan losses$7,402 $6,117 Employee benefits1,079 1,165 Accrued expenses and other5,907 8,881 Depreciation and amortization - 386 Non-U.S." - Updated: "NOL carryforwards will expire between 2028 and 2042 whereas others have an unlimited carryforward period." - Updated: "December 31, (in millions)20252024Deferred tax assetsAllowance for loan losses$7,402 $6,117 Employee benefits1,079 1,165 Accrued expenses and other5,907 8,881 Depreciation and amortization - 386 Non-U.S." **Prior (2025):** (a)For purposes of this table, non-U.S. income is defined as income generated from operations located outside the U.S. The Firm will recognize any U.S. income tax expense it may incur on global intangible low tax income as income tax expense in the period in which the tax is incurred. 296JPMorgan Chase & Co./2024 Form 10-K 296JPMorgan Chase & Co./2024 Form 10-K 296JPMorgan Chase & Co./2024 Form 10-K 296 JPMorgan Chase & Co./2024 Form 10-K Deferred taxes Deferred income tax expense/(benefit) reflects the differences between assets and liabilities measured for financial reporting purposes versus income tax return purposes. Deferred tax assets are recognized if, in management's judgment, their realizability is determined to be more likely than not. If a deferred tax asset is determined to be unrealizable, a valuation allowance is established. The significant components of deferred tax assets and liabilities are reflected in the following table, the net deferred tax assets are reflected in other assets on the Firm's Consolidated balance sheets. December 31, (in millions)20242023Deferred tax assetsAllowance for loan losses$6,117 $5,809 Employee benefits1,165 1,247 Accrued expenses and other8,881 9,887 (a)Depreciation and amortization386 - Non-U.S. operations948 860 Tax attribute carryforwards352 290 Gross deferred tax assets17,849 18,093 Valuation allowance(249)(183)Deferred tax assets, net of valuation allowance$17,600 $17,910 Deferred tax liabilitiesDepreciation and amortization$ - $779 Mortgage servicing rights, net of hedges1,912 1,794 Leasing transactions2,249 2,254 Other, net1,264 2,935 Gross deferred tax liabilities5,425 7,762 Net deferred tax assets$12,175 $10,148 (a)Includes the estimated net deferred tax asset associated with the First Republic acquisition.JPMorganChase has recorded deferred tax assets of $352 million at December 31, 2024 in connection with tax attribute carryforwards. State and local capital loss carryforwards were $914 million, U.S. federal NOL carryforwards were $496 million, non-U.S. NOL carryforwards were $958 million, and other U.S. federal tax attributes were $111 million. If not utilized, a portion of the U.S. federal NOL carryforwards and other U.S. federal tax attributes will expire between 2026 and 2036 whereas others have an unlimited carryforward period. Similarly, certain non-U.S. NOL carryforwards will expire between 2026 and 2041 whereas others have an unlimited carryforward period. The state and local capital loss carryforwards will expire in 2026. The valuation allowance at December 31, 2024, was predominantly driven by certain non-U.S. deferred tax assets, including NOL carryforwards. Deferred taxes Deferred income tax expense/(benefit) reflects the differences between assets and liabilities measured for financial reporting purposes versus income tax return purposes. Deferred tax assets are recognized if, in management's judgment, their realizability is determined to be more likely than not. If a deferred tax asset is determined to be unrealizable, a valuation allowance is established. The significant components of deferred tax assets and liabilities are reflected in the following table, the net deferred tax assets are reflected in other assets on the Firm's Consolidated balance sheets. December 31, (in millions)20242023Deferred tax assetsAllowance for loan losses$6,117 $5,809 Employee benefits1,165 1,247 Accrued expenses and other8,881 9,887 (a)Depreciation and amortization386 - Non-U.S. operations948 860 Tax attribute carryforwards352 290 Gross deferred tax assets17,849 18,093 Valuation allowance(249)(183)Deferred tax assets, net of valuation allowance$17,600 $17,910 Deferred tax liabilitiesDepreciation and amortization$ - $779 Mortgage servicing rights, net of hedges1,912 1,794 Leasing transactions2,249 2,254 Other, net1,264 2,935 Gross deferred tax liabilities5,425 7,762 Net deferred tax assets$12,175 $10,148 (a)Includes the estimated net deferred tax asset associated with the First Republic acquisition. **Current (2026):** Deferred taxes Deferred income tax expense/(benefit) reflects the differences between assets and liabilities measured for financial reporting purposes versus income tax return purposes. Deferred tax assets are recognized if, in management's judgment, their realizability is determined to be more likely than not. If a deferred tax asset is determined to be unrealizable, a valuation allowance is established. The significant components of deferred tax assets and liabilities are reflected in the following table, the net deferred tax assets are reflected in other assets on the Firm's Consolidated balance sheets. December 31, (in millions)20252024Deferred tax assetsAllowance for loan losses$7,402 $6,117 Employee benefits1,079 1,165 Accrued expenses and other5,907 8,881 Depreciation and amortization - 386 Non-U.S. operations1,027 948 Tax attribute carryforwards2,252 352 Gross deferred tax assets17,667 17,849 Valuation allowance(476)(249)Deferred tax assets, net of valuation allowance$17,191 $17,600 Deferred tax liabilitiesDepreciation and amortization$2,343 $ - Mortgage servicing rights, net of hedges1,950 1,912 Leasing transactions4,291 2,249 Other, net1,659 1,264 Gross deferred tax liabilities10,243 5,425 Net deferred tax assets$6,948 $12,175 JPMorganChase has recorded deferred tax assets of $2.3 billion at December 31, 2025 in connection with tax attribute carryforwards. GBC and FTC carryforwards were $1.7 billion and $257 million, respectively. State and local capital loss carryforwards were $1.2 billion, non-U.S. NOL carryforwards were $1.0 billion, U.S. federal NOL carryforwards were $193 million, and other U.S. federal tax attributes were $61 million. If not utilized, a portion of the U.S. federal NOL carryforwards and other U.S. federal tax attributes will expire between 2026 and 2036 whereas others have an unlimited carryforward period. Similarly, certain non-U.S. NOL carryforwards will expire between 2028 and 2042 whereas others have an unlimited carryforward period. The state and local capital loss carryforwards will expire between 2026 and 2029. GBC carryforwards will expire in 2045 and FTC carryforwards will expire between 2030 and 2035. The valuation allowance at December 31, 2025 was predominantly driven by deferred tax assets associated with FTCs and non-U.S. NOLs. Deferred taxes Deferred income tax expense/(benefit) reflects the differences between assets and liabilities measured for financial reporting purposes versus income tax return purposes. Deferred tax assets are recognized if, in management's judgment, their realizability is determined to be more likely than not. If a deferred tax asset is determined to be unrealizable, a valuation allowance is established. The significant components of deferred tax assets and liabilities are reflected in the following table, the net deferred tax assets are reflected in other assets on the Firm's Consolidated balance sheets. December 31, (in millions)20252024Deferred tax assetsAllowance for loan losses$7,402 $6,117 Employee benefits1,079 1,165 Accrued expenses and other5,907 8,881 Depreciation and amortization - 386 Non-U.S. operations1,027 948 Tax attribute carryforwards2,252 352 Gross deferred tax assets17,667 17,849 Valuation allowance(476)(249)Deferred tax assets, net of valuation allowance$17,191 $17,600 Deferred tax liabilitiesDepreciation and amortization$2,343 $ - Mortgage servicing rights, net of hedges1,950 1,912 Leasing transactions4,291 2,249 Other, net1,659 1,264 Gross deferred tax liabilities10,243 5,425 Net deferred tax assets$6,948 $12,175 --- ## Modified Risk: Other income **Key changes:** - Updated: "This revenue category includes operating lease income, as well as losses associated with certain of the Firm's tax-oriented investments, predominantly alternative energy equity-method investments in CIB." - Updated: "The following table presents certain components of other income: Year ended December 31, (in millions)202520242023Operating lease income$3,803 $2,795 $2,843 Losses on tax-oriented investments(173)(97)(1,538)Gain on Visa shares - 7,990 (b) - First Republic-related gains(a)628 103 2,775 Gain related to the acquisition of CIFM - - 339 (c) Gain on Visa shares (b) First Republic-related gains(a) First Republic-related gains(a) First Republic-related gains (a) Gain related to the acquisition of CIFM (c) (a) Relates to the settlement of outstanding items with the FDIC in 2025, and adjustments to the estimated bargain purchase gain associated with the acquisition in 2024 and 2023." - Updated: "(c) Gain on the original minority interest in CIFM upon the Firm's acquisition of the remaining 51% of the entity." - Added: "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." - Added: "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." **Prior (2025):** This revenue category includes operating lease income, as well as losses associated with the Firm's tax-oriented investments, predominantly alternative energy equity-method investments in CIB. The losses associated with these tax-oriented investments are more than offset by lower income tax expense from the associated tax credits. The following table presents certain components of other income: Year ended December 31, (in millions)202420232022Operating lease income$2,795 $2,843 $3,654 Losses on tax-oriented investments(97)(1,538)(1,491)Gain on Visa shares7,990 (b) - 914 (c)Estimated bargain purchase gain associated with the First Republic acquisition103 2,775 - Gain related to the acquisition of CIFM (a) - 339 - Losses on tax-oriented investments Gain on Visa shares (b) (c) Estimated bargain purchase gain associated with the First Republic acquisition Estimated bargain purchase gain associated with the First Republic acquisition Gain related to the acquisition of CIFM (a) (a) Gain on the original minority interest in CIFM upon the Firm's acquisition of the remaining 51% of the entity. (b) Relates to the initial gain recognized on May 6, 2024 on the Visa C shares. Refer to Note 2 for additional information. (c) Relates to the sale of Visa B shares. Refer to Note 18 for additional information on operating leases. Proportional Amortization Method: Effective January 1, 2024, as a result of adopting updates to the Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method guidance, the amortization of certain of the Firm's alternative energy tax-oriented investments that was previously recognized in other income is now recognized in income tax expense, which aligns with the associated tax credits and other tax benefits. Refer to Notes 1, 14 and 25 for additional information. Noninterest expenseOther expense Other expense on the Firm's Consolidated statements of income included: Year ended December 31, (in millions)202420232022Legal expense$740 $1,436 $266 FDIC-related expense 1,893 (c)4,203 (c)860 Operating losses1,417 1,228 1,101 Contribution of Visa shares(a)1,000 - - First Republic-related expense(b)777 1,060 - (a) Represents the contribution of a portion of Visa C shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024. Refer to Note 2 for additional information.(b) Reflects the expenses classified within other expense, including $488 million and $360 million of integration and restructuring costs associated with First Republic for the full years ended December 31, 2024 and 2023, respectively. Additionally, the second quarter of 2023 included payments to the FDIC for the First Republic individuals who were not employees of the Firm until July 2, 2023. Refer to Note 34 for additional information on the First Republic acquisition.(c) The first quarter of 2024 included an increase of $725 million to the FDIC special assessment reflecting the FDIC's revised estimate of Deposit Insurance Fund losses. The fourth quarter of 2023 included the $2.9 billion FDIC special assessment.Refer to Note 32 for additional information on noninterest revenue and expense by segment. **Current (2026):** This revenue category includes operating lease income, as well as losses associated with certain of the Firm's tax-oriented investments, predominantly alternative energy equity-method investments in CIB. The losses associated with these tax-oriented investments are more than offset by lower income tax expense from the associated tax credits. The following table presents certain components of other income: Year ended December 31, (in millions)202520242023Operating lease income$3,803 $2,795 $2,843 Losses on tax-oriented investments(173)(97)(1,538)Gain on Visa shares - 7,990 (b) - First Republic-related gains(a)628 103 2,775 Gain related to the acquisition of CIFM - - 339 (c) Gain on Visa shares (b) First Republic-related gains(a) First Republic-related gains(a) First Republic-related gains (a) Gain related to the acquisition of CIFM (c) (a) Relates to the settlement of outstanding items with the FDIC in 2025, and adjustments to the estimated bargain purchase gain associated with the acquisition in 2024 and 2023. (b) Relates to the initial gain recognized on May 6, 2024 on the Visa C shares. (c) Gain on the original minority interest in CIFM upon the Firm's acquisition of the remaining 51% of the entity. Refer to Note 18 for additional information on operating leases. 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. In addition, as of June 30, 2025, all outstanding matters between the Firm and the FDIC related to the final settlement of the purchase price for the First Republic acquisition had been resolved. Refer to Note 34 for additional information. Proportional Amortization Method: Effective January 1, 2024, as a result of adopting updates to the Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method guidance, the amortization of certain of the Firm's alternative energy tax-oriented investments that was previously recognized in other income is now recognized in income tax expense, which aligns with the associated tax credits and other tax benefits. Refer to Notes 1, 14 and 25 for additional information. Noninterest expenseOther expense Other expense on the Firm's Consolidated statements of income included: Year ended December 31, (in millions)202520242023Legal expense$361 $740 $1,436 FDIC-related expense(a)531 1,893 4,203 Operating losses1,292 1,417 1,228 Contribution of Visa shares - 1,000 (b) - (a) Included FDIC special assessment accrual releases of $763 million and an accrual increase of $725 million for the years ended December 31, 2025 and 2024, respectively, which are adjustments to the initial $2.9 billion estimate recorded in the fourth quarter of 2023.(b) Represents the contribution of a portion of Visa C shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024. Refer to Note 32 for additional information on noninterest revenue and expense by segment. --- ## Modified Risk: Impact of derivatives on the Consolidated balance sheets **Key changes:** - Updated: "The following table summarizes information on derivative receivables and payables (before and after netting adjustments) that are reflected on the Firm's Consolidated balance sheets as of December 31, 2025 and 2024, by accounting designation (e.g., whether the derivatives were designated in qualifying hedge accounting relationships or not) and contract type." **Prior (2025):** The following table summarizes information on derivative receivables and payables (before and after netting adjustments) that are reflected on the Firm's Consolidated balance sheets as of December 31, 2024 and 2023, by accounting designation (e.g., whether the derivatives were designated in qualifying hedge accounting relationships or not) and contract type. Free-standing derivative receivables and payables(a)Gross derivative receivablesGross derivative payablesDecember 31, 2024(in millions)Not designated as hedgesDesignated as hedgesTotal derivative receivablesNet derivative receivables(b)Not designated as hedgesDesignated as hedgesTotal derivative payablesNet derivative payables(b)Trading assets and liabilitiesInterest rate$290,734 $ - $290,734 $24,945 $274,226 $2 $274,228 $9,239 Credit11,087 - 11,087 814 13,796 - 13,796 1,898 Foreign exchange261,035 1,885 262,920 25,312 253,289 1,278 254,567 15,597 Equity85,220 - 85,220 5,285 96,139 - 96,139 8,648 Commodity15,490 136 15,626 4,611 14,415 73 14,488 4,279 Total fair value of trading assets and liabilities$663,566 $2,021 $665,587 $60,967 $651,865 $1,353 $653,218 $39,661 Gross derivative receivablesGross derivative payablesDecember 31, 2023(in millions)Not designated as hedgesDesignated as hedgesTotal derivative receivablesNet derivative receivables(b)Not designated as hedgesDesignated as hedgesTotal derivative payablesNetderivative payables(b)Trading assets and liabilitiesInterest rate$250,689 $2 $250,691 $26,324 $240,482 $ - $240,482 $11,896 Credit9,654 - 9,654 551 12,038 - 12,038 1,089 Foreign exchange205,010 765 205,775 18,019 210,623 1,640 212,263 12,620 Equity57,689 - 57,689 4,928 65,811 - 65,811 9,368 Commodity15,228 211 15,439 5,042 16,286 92 16,378 5,874 Total fair value of trading assets and liabilities$538,270 $978 $539,248 $54,864 $545,240 $1,732 $546,972 $40,847 Free-standing derivative receivables and payables(a) Net derivative receivables(b) Net derivative payables(b) **Current (2026):** The following table summarizes information on derivative receivables and payables (before and after netting adjustments) that are reflected on the Firm's Consolidated balance sheets as of December 31, 2025 and 2024, by accounting designation (e.g., whether the derivatives were designated in qualifying hedge accounting relationships or not) and contract type. Free-standing derivative receivables and payables(a)Gross derivative receivablesGross derivative payablesDecember 31, 2025(in millions)Not designated as hedgesDesignated as hedgesTotal derivative receivablesNet derivative receivables(b)Not designated as hedgesDesignated as hedgesTotal derivative payablesNet derivative payables(b)Trading assets and liabilitiesInterest rate$281,884 $ - $281,884 $25,401 $257,582 $1 $257,583 $7,461 Credit13,024 - 13,024 479 17,628 - 17,628 2,016 Foreign exchange182,887 349 183,236 19,355 177,158 983 178,141 14,833 Equity97,723 - 97,723 5,867 117,017 - 117,017 14,806 Commodity29,932 583 30,515 6,675 24,744 1,625 26,369 7,213 Total fair value of trading assets and liabilities$605,450 $932 $606,382 $57,777 $594,129 $2,609 $596,738 $46,329 Gross derivative receivablesGross derivative payablesDecember 31, 2024(in millions)Not designated as hedgesDesignated as hedgesTotal derivative receivablesNet derivative receivables(b)Not designated as hedgesDesignated as hedgesTotal derivative payablesNetderivative payables(b)Trading assets and liabilitiesInterest rate$290,734 $ - $290,734 $24,945 $274,226 $2 $274,228 $9,239 Credit11,087 - 11,087 814 13,796 - 13,796 1,898 Foreign exchange261,035 1,885 262,920 25,312 253,289 1,278 254,567 15,597 Equity85,220 - 85,220 5,285 96,139 - 96,139 8,648 Commodity15,490 136 15,626 4,611 14,415 73 14,488 4,279 Total fair value of trading assets and liabilities$663,566 $2,021 $665,587 $60,967 $651,865 $1,353 $653,218 $39,661 Free-standing derivative receivables and payables(a) Net derivative receivables(b) Net derivative payables(b) --- ## Modified Risk: Banking & Payments Revenue by Client Coverage Segment: (a) **Key changes:** - Updated: "Commercial Banking provides banking products and services to clients, including start-ups, small and mid-sized companies, local governments, municipalities, and nonprofits, as well as commercial real estate clients." - Updated: "Selected income statement dataYear ended December 31,(in millions)202520242023Banking & Payments revenue by client coverage segmentGlobal Corporate Banking & Global Investment Banking(a)$25,285 $23,780 $20,847 Commercial Banking11,851 11,487 11,050 Commercial & Specialized Industries(b)8,306 7,759 7,740 Commercial Real Estate Banking3,545 3,728 3,310 Total Banking & Payments revenue$37,136 $35,267 $31,897 Selected income statement dataYear ended December 31,(in millions)202520242023Banking & Payments revenue by client coverage segmentGlobal Corporate Banking & Global Investment Banking(a)$25,285 $23,780 $20,847 Commercial Banking11,851 11,487 11,050 Commercial & Specialized Industries(b)8,306 7,759 7,740 Commercial Real Estate Banking3,545 3,728 3,310 Total Banking & Payments revenue$37,136 $35,267 $31,897 Selected income statement dataYear ended December 31,(in millions)202520242023Banking & Payments revenue by client coverage segmentGlobal Corporate Banking & Global Investment Banking(a)$25,285 $23,780 $20,847 Commercial Banking11,851 11,487 11,050 Commercial & Specialized Industries(b)8,306 7,759 7,740 Commercial Real Estate Banking3,545 3,728 3,310 Total Banking & Payments revenue$37,136 $35,267 $31,897 Year ended December 31, (in millions) Global Corporate Banking & Global Investment Banking(a) Commercial Banking Commercial & Specialized Industries(b) (a)In the second quarter of 2025, amounts were reclassified from Other to Global Corporate Banking & Global Investment Banking reflecting the subsequent alignment of certain business activities after the Firm's business segment reorganization in the second quarter of 2024." **Prior (2025):** Global Corporate Banking & Global Investment Banking provides banking products and services generally to large corporations, financial institutions and merchants. Commercial Banking provides banking products and services generally to middle market clients, including start-ups, small and mid-sized companies, local governments, municipalities, and nonprofits, as well as to commercial real estate clients. Other includes amounts related to credit protection purchased against certain retained loans and lending-related commitments in Lending, the impact of equity investments in Payments and revenues not aligned with a primary client coverage segment. (a)Global Banking is a client coverage view within the Banking & Payments business and is comprised of the Global Corporate Banking, Global Investment Banking and Commercial Banking client coverage segments. Selected income statement dataYear ended December 31,(in millions)202420232022Banking & Payments revenue by client coverage segmentGlobal Corporate Banking & Global Investment Banking$24,549 $21,700 $19,325 Commercial Banking11,487 11,050 7,906 Middle Market Banking7,759 7,740 5,443 Commercial Real Estate Banking3,728 3,310 2,463 Other(769)(853)(410)Total Banking & Payments revenue$35,267 $31,897 $26,821 Selected income statement dataYear ended December 31,(in millions)202420232022Banking & Payments revenue by client coverage segmentGlobal Corporate Banking & Global Investment Banking$24,549 $21,700 $19,325 Commercial Banking11,487 11,050 7,906 Middle Market Banking7,759 7,740 5,443 Commercial Real Estate Banking3,728 3,310 2,463 Other(769)(853)(410)Total Banking & Payments revenue$35,267 $31,897 $26,821 Selected income statement dataYear ended December 31,(in millions)202420232022Banking & Payments revenue by client coverage segmentGlobal Corporate Banking & Global Investment Banking$24,549 $21,700 $19,325 Commercial Banking11,487 11,050 7,906 Middle Market Banking7,759 7,740 5,443 Commercial Real Estate Banking3,728 3,310 2,463 Other(769)(853)(410)Total Banking & Payments revenue$35,267 $31,897 $26,821 Year ended December 31, (in millions) Global Corporate Banking & Global Investment Banking Commercial Banking Other 78JPMorgan Chase & Co./2024 Form 10-K 78JPMorgan Chase & Co./2024 Form 10-K 78JPMorgan Chase & Co./2024 Form 10-K 78 JPMorgan Chase & Co./2024 Form 10-K 2024 compared with 2023Net income was $24.8 billion, up 23%.Net revenue was $70.1 billion, up 9%.Banking & Payments revenue was $35.3 billion, up 11%.•Investment Banking revenue was $9.6 billion, up 36%. Investment Banking fees were up 37%, driven by higher fees across products. The Firm ranked #1 for Global Investment Banking fees, according to Dealogic.-Debt underwriting fees were $4.1 billion, up 55%, predominantly driven by higher industry-wide issuances in leveraged loans, and in high-grade and high-yield bonds.-Equity underwriting fees were $1.7 billion, up 47%, driven by increased industry-wide fees and wallet share gains in IPOs, and in follow-on and convertible securities offerings.-Advisory fees were $3.3 billion, up 17%, driven by increased industry-wide M&A activity and wallet share gains.•Payments revenue was $18.1 billion, up 1%, driven by fee growth on higher volumes as well as higher average deposits, predominantly offset by deposit margin compression, reflecting higher rates paid, and higher deposit-related client credits. •Lending revenue was $7.5 billion, up 8%, predominantly driven by the impacts of higher rates and the First Republic acquisition.Markets & Securities Services revenue was $34.8 billion, up 7%. Markets revenue was $30.0 billion, up 7%.•Equity Markets revenue was $9.9 billion, up 13%, driven by higher revenue in Equity Derivatives and Prime Finance.•Fixed Income Markets revenue was $20.1 billion, up 5%, driven by higher revenue in the Securitized Products Group, Currencies & Emerging Markets, and Credit, largely offset by lower revenue in Rates and Commodities. •Securities Services revenue was $5.1 billion, up 7%, predominantly driven by fee growth on higher client activity and market levels.•Credit Adjustments & Other was a loss of $244 million, compared with a loss of $280 million in the prior year.Noninterest expense was $35.4 billion, up 4%, driven by higher compensation expense, including revenue-related compensation and an increase in the number of employees, as well as higher technology and brokerage expense partially offset by lower legal expense.The provision for credit losses was $762 million, reflecting: •net charge-offs of $617 million, primarily in Real Estate, largely concentrated in Office, and•a $145 million net addition to the allowance for credit losses, driven by-net downgrade activity, primarily in Real Estate, and the impact of incorporating the First Republic portfolio into the Firm's modeled credit loss estimates in the second quarter of 2024, predominantly offset by-changes in certain macroeconomic variables, an update to loss assumptions on certain loans in Markets, and a reduction due to charge-offs predominantly from collateral-dependent loans. The provision in the prior year was $2.1 billion, reflecting a $1.5 billion net addition to the allowance for credit losses, which included $608 million to establish the allowance for the First Republic loans and lending-related commitments in the second quarter of 2023, and net charge-offs of $588 million. 2024 compared with 2023Net income was $24.8 billion, up 23%.Net revenue was $70.1 billion, up 9%.Banking & Payments revenue was $35.3 billion, up 11%.•Investment Banking revenue was $9.6 billion, up 36%. Investment Banking fees were up 37%, driven by higher fees across products. The Firm ranked #1 for Global Investment Banking fees, according to Dealogic.-Debt underwriting fees were $4.1 billion, up 55%, predominantly driven by higher industry-wide issuances in leveraged loans, and in high-grade and high-yield bonds.-Equity underwriting fees were $1.7 billion, up 47%, driven by increased industry-wide fees and wallet share gains in IPOs, and in follow-on and convertible securities offerings.-Advisory fees were $3.3 billion, up 17%, driven by increased industry-wide M&A activity and wallet share gains.•Payments revenue was $18.1 billion, up 1%, driven by fee growth on higher volumes as well as higher average deposits, predominantly offset by deposit margin compression, reflecting higher rates paid, and higher deposit-related client credits. •Lending revenue was $7.5 billion, up 8%, predominantly driven by the impacts of higher rates and the First Republic acquisition.Markets & Securities Services revenue was $34.8 billion, up 7%. Markets revenue was $30.0 billion, up 7%.•Equity Markets revenue was $9.9 billion, up 13%, driven by higher revenue in Equity Derivatives and Prime Finance.•Fixed Income Markets revenue was $20.1 billion, up 5%, driven by higher revenue in the Securitized Products Group, Currencies & Emerging Markets, and Credit, largely offset by lower revenue in Rates and Commodities. •Securities Services revenue was $5.1 billion, up 7%, predominantly driven by fee growth on higher client activity and market levels.•Credit Adjustments & Other was a loss of $244 million, compared with a loss of $280 million in the prior year. **Current (2026):** Global Corporate Banking & Global Investment Banking provides banking products and services generally to large corporations, financial institutions and merchants. Commercial Banking provides banking products and services to clients, including start-ups, small and mid-sized companies, local governments, municipalities, and nonprofits, as well as commercial real estate clients. (a)Global Banking is a client coverage view within the Banking & Payments business and is comprised of the Global Corporate Banking, Global Investment Banking and Commercial Banking client coverage segments. Selected income statement dataYear ended December 31,(in millions)202520242023Banking & Payments revenue by client coverage segmentGlobal Corporate Banking & Global Investment Banking(a)$25,285 $23,780 $20,847 Commercial Banking11,851 11,487 11,050 Commercial & Specialized Industries(b)8,306 7,759 7,740 Commercial Real Estate Banking3,545 3,728 3,310 Total Banking & Payments revenue$37,136 $35,267 $31,897 Selected income statement dataYear ended December 31,(in millions)202520242023Banking & Payments revenue by client coverage segmentGlobal Corporate Banking & Global Investment Banking(a)$25,285 $23,780 $20,847 Commercial Banking11,851 11,487 11,050 Commercial & Specialized Industries(b)8,306 7,759 7,740 Commercial Real Estate Banking3,545 3,728 3,310 Total Banking & Payments revenue$37,136 $35,267 $31,897 Selected income statement dataYear ended December 31,(in millions)202520242023Banking & Payments revenue by client coverage segmentGlobal Corporate Banking & Global Investment Banking(a)$25,285 $23,780 $20,847 Commercial Banking11,851 11,487 11,050 Commercial & Specialized Industries(b)8,306 7,759 7,740 Commercial Real Estate Banking3,545 3,728 3,310 Total Banking & Payments revenue$37,136 $35,267 $31,897 Year ended December 31, (in millions) Global Corporate Banking & Global Investment Banking(a) Commercial Banking Commercial & Specialized Industries(b) (a)In the second quarter of 2025, amounts were reclassified from Other to Global Corporate Banking & Global Investment Banking reflecting the subsequent alignment of certain business activities after the Firm's business segment reorganization in the second quarter of 2024. Prior-period amounts have been revised to conform with the current presentation. (b)In the second quarter of 2025, the Middle Market Banking client coverage segment was renamed Commercial & Specialized Industries. 70JPMorgan Chase & Co./2025 Form 10-K 70JPMorgan Chase & Co./2025 Form 10-K 70JPMorgan Chase & Co./2025 Form 10-K 70 JPMorgan Chase & Co./2025 Form 10-K 2025 compared with 2024Net income was $27.8 billion, up 12%.Net revenue was $78.5 billion, up 12%.Banking & Payments revenue was $37.1 billion, up 5%.•Investment Banking revenue was $10.2 billion, up 6%. Investment Banking fees were up 7%, driven by higher fees across products. The Firm ranked #1 for Global Investment Banking fees, according to Dealogic.-Debt underwriting fees were $4.5 billion, up 9%, predominantly driven by non-investment grade loans and investment grade bonds.-Advisory fees were $3.5 billion, up 6%, driven by higher fees from deals in the Financial Institutions and Technology sectors, partially offset by lower fees from deals in the Media & Telecommunications sector.-Equity underwriting fees were $1.7 billion, up 2%, primarily driven by higher revenue from IPOs.•Payments revenue was $19.3 billion, up 7%. Excluding the net impact of equity investments, revenue was up 5%, driven by higher average deposits and fee growth, largely offset by deposit margin compression. •Lending revenue was $7.6 billion, up 2%, driven by higher lending-related fees and lower fair value losses on credit protection purchased against certain retained loans and lending-related commitments.Markets & Securities Services revenue was $41.3 billion, up 19%. Markets revenue was $35.8 billion, up 19%.•Equity Markets revenue was $13.3 billion, up 33%, driven by higher revenue across products, particularly in Equity Derivatives.•Fixed Income Markets revenue was $22.5 billion, up 12%, predominantly driven by higher revenue in Rates, Currencies & Emerging Markets, Commodities and Securitized Products, partially offset by lower revenue in Credit.•Securities Services revenue was $5.6 billion, up 10%, driven by higher average deposits as well as fee growth related to higher client activity and market levels, partially offset by deposit margin compression.•Credit Adjustments & Other was a loss of $63 million, compared with a loss of $244 million in the prior year.Noninterest expense was $38.2 billion, up 8%, predominantly driven by higher compensation, including higher revenue-related compensation, as well as higher brokerage, technology and regulatory expense.The provision for credit losses was $2.6 billion, driven by net increases in the loan and lending-related commitment portfolios, net changes in credit quality of client-specific exposures, an update to loss assumptions on certain leveraged loans, and estimated losses related to borrower fraud in certain secured lending facilities, partially offset by the impact of changes in the Firm's weighted-average macroeconomic outlook. Net charge-offs were $1.5 billion and the net addition to the allowance for credit losses was $1.1 billion. In the prior year, the provision was $762 million, net charge-offs were $617 million and the net addition to the allowance for credit losses was $145 million. 2025 compared with 2024Net income was $27.8 billion, up 12%.Net revenue was $78.5 billion, up 12%.Banking & Payments revenue was $37.1 billion, up 5%.•Investment Banking revenue was $10.2 billion, up 6%. Investment Banking fees were up 7%, driven by higher fees across products. The Firm ranked #1 for Global Investment Banking fees, according to Dealogic.-Debt underwriting fees were $4.5 billion, up 9%, predominantly driven by non-investment grade loans and investment grade bonds.-Advisory fees were $3.5 billion, up 6%, driven by higher fees from deals in the Financial Institutions and Technology sectors, partially offset by lower fees from deals in the Media & Telecommunications sector.-Equity underwriting fees were $1.7 billion, up 2%, primarily driven by higher revenue from IPOs.•Payments revenue was $19.3 billion, up 7%. Excluding the net impact of equity investments, revenue was up 5%, driven by higher average deposits and fee growth, largely offset by deposit margin compression. •Lending revenue was $7.6 billion, up 2%, driven by higher lending-related fees and lower fair value losses on credit protection purchased against certain retained loans and lending-related commitments.Markets & Securities Services revenue was $41.3 billion, up 19%. Markets revenue was $35.8 billion, up 19%.•Equity Markets revenue was $13.3 billion, up 33%, driven by higher revenue across products, particularly in Equity Derivatives.•Fixed Income Markets revenue was $22.5 billion, up 12%, predominantly driven by higher revenue in Rates, Currencies & Emerging Markets, Commodities and Securitized Products, partially offset by lower revenue in Credit.•Securities Services revenue was $5.6 billion, up 10%, driven by higher average deposits as well as fee growth related to higher client activity and market levels, partially offset by deposit margin compression.•Credit Adjustments & Other was a loss of $63 million, compared with a loss of $244 million in the prior year. --- ## Modified Risk: Total Real Estate Exposure **Key changes:** - Updated: "(a)Total Multifamily exposure is approximately 99% performing." - Updated: "(b)Other Income Producing Properties consists of clients with diversified property types or other property types, including data centers, outside of categories listed in the table above." - Updated: "122JPMorgan Chase & Co./2025 Form 10-K 122JPMorgan Chase & Co./2025 Form 10-K 122JPMorgan Chase & Co./2025 Form 10-K 122 JPMorgan Chase & Co./2025 Form 10-K" **Prior (2025):** % Drawn(d) Multifamily(a) Other Income Producing Properties(b) Office (a)Total Multifamily exposure is approximately 99% performing. Multifamily exposure is largely in California. (b)Other Income Producing Properties consists of clients with diversified property types or other property types outside of categories listed in the table above. (c)Real Estate exposure is approximately 84% secured; unsecured exposure is largely investment-grade primarily to Real Estate Investment Trusts ("REITs") and Real Estate Operating Companies ("REOCs") whose underlying assets are generally diversified. (d)Represents drawn exposure as a percentage of credit exposure. 130JPMorgan Chase & Co./2024 Form 10-K 130JPMorgan Chase & Co./2024 Form 10-K 130JPMorgan Chase & Co./2024 Form 10-K 130 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** (a)Total Multifamily exposure is approximately 99% performing. Multifamily exposure is largely in California. (b)Other Income Producing Properties consists of clients with diversified property types or other property types, including data centers, outside of categories listed in the table above. (c)Real Estate exposure is approximately 83% secured; unsecured exposure is largely investment-grade primarily to Real Estate Investment Trusts ("REITs") and Real Estate Operating Companies ("REOCs") whose underlying assets are generally diversified. (d)Represents drawn exposure as a percentage of credit exposure. 122JPMorgan Chase & Co./2025 Form 10-K 122JPMorgan Chase & Co./2025 Form 10-K 122JPMorgan Chase & Co./2025 Form 10-K 122 JPMorgan Chase & Co./2025 Form 10-K --- ## Modified Risk: Management's discussion and analysis **Key changes:** - Updated: "Stress testingStress testing is an important component of the Firm's country risk management framework, which aims to estimate and limit losses arising from a country crisis by measuring the impact of adverse asset price movements to a country based on market shocks combined with counterparty specific assumptions." - Updated: "These tailored stress results are used to inform potential risk reduction across the Firm, as necessary.Risk reportingCountry exposure and stress are measured and reported regularly, and used by Country Risk Management to identify trends and monitor high usages and breaches against limits.For country risk management purposes, the Firm may report exposure to jurisdictions that are not fully autonomous, including dependent territories and Special Administrative Regions ("SAR") such as Hong Kong SAR, separately from the independent sovereign states with which they are associated.The following table presents the Firm's top 20 exposures by country (excluding the U.S.) as of December 31, 2025, and their comparative exposures as of December 31, 2024." - Updated: "The increase in exposure to the United Kingdom when compared to December 31, 2024 was predominantly driven by higher holdings of government debt securities due to increased investment and market-making securities activities, as well as an increase in wholesale lending exposures.The Firm continues to monitor its exposure to Russia, which corresponds to cash placed with the central bank, but which excludes deposits placed on behalf of clients at the Deposit Insurance Agency of Russia." - Updated: "Refer to Note 30 on page 303 for information concerning Russian litigation.Top 20 country exposures (excluding the U.S.)(a)December 31, (in billions)20252024(f)Deposits with banks(b)Lending(c)Trading and investing(d)Other(e)Total exposureTotal exposureGermany$83.9 $15.7 $ - $0.7 $100.3 $103.9 United Kingdom26.1 27.0 36.9 3.2 93.2 76.1 Japan64.4 4.2 8.4 0.3 77.3 63.1 France0.7 14.6 8.3 1.3 24.9 18.0 Brazil10.0 5.0 5.9 - 20.9 14.7 Australia5.6 9.1 2.8 0.1 17.6 14.3 Canada2.0 11.9 2.1 0.2 16.2 15.1 Switzerland4.5 5.2 2.3 3.0 15.0 13.6 Mexico1.7 8.9 3.0 - 13.6 7.2 South Korea1.1 3.3 8.5 0.5 13.4 10.3 Mainland China2.7 6.6 3.9 - 13.2 13.4 India1.2 6.7 4.7 0.4 13.0 11.3 Saudi Arabia0.9 8.9 2.6 - 12.4 9.4 Italy0.1 8.5 2.7 0.3 11.6 10.4 Singapore2.0 2.5 4.4 0.4 9.3 7.4 Belgium4.5 1.6 0.5 - 6.6 5.4 Netherlands0.2 6.1 0.1 0.1 6.5 5.9 United Arab Emirates0.1 4.7 0.9 - 5.7 2.6 Chile3.0 1.6 0.5 - 5.1 1.7 Spain0.1 4.4 0.1 - 4.6 6.1 (a)Country exposures presented in the table reflect 87% and 88% of total Firmwide non-U.S." - Updated: "Market-making positions and hedging includes exposure from single reference entity ("single-name"), index and other multiple reference entity transactions for which one or more of the underlying reference entities is in a country listed in the above table.(e)Includes physical commodities inventory and clearing house guarantee funds.(f)The country rankings presented in the table as of December 31, 2024, are based on the country rankings of the corresponding exposures at December 31, 2025, not actual rankings of such exposures at December 31, 2024." **Prior (2025):** The Firm is exposed to country risk through its lending and deposits, investing, and market-making activities, whether cross-border or locally funded. Country exposure includes activity with both government and private-sector entities in a country. Under the Firm's internal country risk management approach, attribution of exposure to an individual country is based on the country where the largest proportion of the assets of the counterparty, issuer, obligor or guarantor are located or where the largest proportion of its revenue is derived, which may be different than the domicile (i.e. legal residence) or country of incorporation. Individual country exposures reflect an aggregation of the Firm's risk to an immediate default, with zero recovery, of the counterparties, issuers, obligors or guarantors attributed to that country. Activities which result in contingent or indirect exposure to a country are not included in the country exposure measure (for example, providing clearing services or secondary exposure to collateral on securities financing receivables).Assumptions are sometimes required in determining the measurement and allocation of country exposure, particularly in the case of certain non-linear or index products, or where the nature of the counterparty, issuer, obligor or guarantor is not suitable for attribution to an individual country. The use of different measurement approaches or assumptions could affect the amount of reported country exposure.Under the Firm's internal country risk measurement framework:•Deposits with banks are measured as the cash balances placed with central banks, commercial banks, and other financial institutions•Lending exposures are measured at the total committed amount (funded and unfunded), net of the allowance for credit losses and eligible cash and marketable securities collateral received•Securities financing exposures are measured at their receivable balance, net of eligible collateral received•Debt and equity securities are measured at the fair value of all positions, including both long and short positions•Counterparty exposure on derivative receivables is measured at the derivative's fair value, net of the fair value of the eligible collateral received•Credit derivatives exposure is measured at the net notional amount of protection purchased or sold for the same underlying reference entity, inclusive of the fair value of the derivative receivable or payable, reflecting the manner in which the Firm manages these exposuresThe Firm's internal country risk reporting differs from the reporting provided under the FFIEC bank regulatory requirements. Individual country exposures reflect an aggregation of the Firm's risk to an immediate default, with zero recovery, of the counterparties, issuers, obligors or guarantors attributed to that country. Activities which result in contingent or indirect exposure to a country are not included in the country exposure measure (for example, providing clearing services or secondary exposure to collateral on securities financing receivables). Assumptions are sometimes required in determining the measurement and allocation of country exposure, particularly in the case of certain non-linear or index products, or where the nature of the counterparty, issuer, obligor or guarantor is not suitable for attribution to an individual country. The use of different measurement approaches or assumptions could affect the amount of reported country exposure. Under the Firm's internal country risk measurement framework: •Deposits with banks are measured as the cash balances placed with central banks, commercial banks, and other financial institutions •Lending exposures are measured at the total committed amount (funded and unfunded), net of the allowance for credit losses and eligible cash and marketable securities collateral received •Securities financing exposures are measured at their receivable balance, net of eligible collateral received •Debt and equity securities are measured at the fair value of all positions, including both long and short positions •Counterparty exposure on derivative receivables is measured at the derivative's fair value, net of the fair value of the eligible collateral received •Credit derivatives exposure is measured at the net notional amount of protection purchased or sold for the same underlying reference entity, inclusive of the fair value of the derivative receivable or payable, reflecting the manner in which the Firm manages these exposures The Firm's internal country risk reporting differs from the reporting provided under the FFIEC bank regulatory requirements. 150JPMorgan Chase & Co./2024 Form 10-K 150JPMorgan Chase & Co./2024 Form 10-K 150JPMorgan Chase & Co./2024 Form 10-K 150 JPMorgan Chase & Co./2024 Form 10-K Stress testingStress testing is an important component of the Firm's country risk management framework, which aims to estimate and limit losses arising from a country crisis by measuring the impact of adverse asset price movements to a country based on market shocks combined with counterparty specific assumptions. Country Risk Management periodically designs and runs tailored stress scenarios to test vulnerabilities to individual countries or sets of countries in response to specific or potential market events, sector performance concerns, sovereign actions and geopolitical risks. These tailored stress results are used to inform potential risk reduction across the Firm, as necessary.Risk reportingCountry exposure and stress are measured and reported regularly, and used by Country Risk Management to identify trends and monitor high usages and breaches against limits. For country risk management purposes, the Firm may report exposure to jurisdictions that are not fully autonomous, including dependent territories and Special Administrative Regions ("SAR") such as Hong Kong SAR, separately from the independent sovereign states with which they are associated.The following table presents the Firm's top 20 exposures by country (excluding the U.S.) as of December 31, 2024, and their comparative exposures as of December 31, 2023. The top 20 country exposures represent the Firm's largest total exposures by individual country. Country exposures may fluctuate from period to period due to a variety of factors, including client activity, market flows and liquidity management activities undertaken by the Firm. The increase in exposure to Germany when compared to December 31, 2023, was driven by an increase in cash placed with the central bank of Germany, predominantly due to client-driven market-making activities and higher client deposits.The increase in exposure to Japan when compared to December 31, 2023, was driven by an increase in cash placed with the central bank of Japan as a result of client-driven market-making activities.The Firm continues to monitor its exposure to Russia, which corresponds to cash placed with the central bank, but which excludes deposits placed on behalf of clients at the Deposit Insurance Agency of Russia. The Firm currently believes that its remaining exposure to Russia is not material. Refer to Note 30 on pages 310-311 for information concerning Russian litigation.Top 20 country exposures (excluding the U.S.)(a)December 31, (in billions)20242023(f)Deposits with banks(b)Lending(c)Trading and investing(d)Other(e)Total exposureTotal exposureGermany$89.7 $12.6 $0.9 $0.7 $103.9 $84.8 United Kingdom24.6 22.4 27.7 1.4 76.1 77.1 Japan55.1 3.1 4.5 0.4 63.1 36.0 France0.6 12.3 4.2 0.9 18.0 10.1 Canada1.6 10.6 2.7 0.2 15.1 16.0 Brazil3.5 4.2 7.0 - 14.7 16.7 Australia5.0 7.4 1.9 - 14.3 18.3 Switzerland4.7 4.2 1.4 3.3 13.6 10.9 Mainland China3.1 6.2 4.1 - 13.4 14.0 India1.1 5.2 4.1 0.9 11.3 9.7 Italy0.1 8.2 1.8 0.3 10.4 6.0 South Korea0.6 2.9 6.3 0.5 10.3 7.8 Saudi Arabia0.8 5.7 2.9 - 9.4 7.7 Singapore1.5 2.0 3.5 0.4 7.4 9.8 Mexico1.3 4.4 1.5 - 7.2 8.2 Spain0.2 4.6 1.2 0.1 6.1 6.3 Netherlands - 6.6 (0.9)0.2 5.9 5.6 Belgium4.0 1.3 0.1 - 5.4 8.0 Malaysia2.1 0.2 1.0 0.3 3.6 4.2 Luxembourg0.9 1.7 1.0 - 3.6 4.0 (a)Country exposures presented in the table reflect 89% and 88% of total Firmwide non-U.S. exposure, where exposure is attributed to an individual country based on the Firm's internal country risk management approach, at December 31, 2024 and 2023, respectively.(b)Predominantly represents cash placed with central banks.(c)Includes loans and accrued interest receivable, lending-related commitments (net of eligible collateral and the allowance for credit losses). Excludes intra-day and operating exposures, such as those from settlement and clearing activities.(d)Includes market-making positions and hedging, investment securities, and counterparty exposure on derivative and securities financings net of eligible collateral. Market-making positions and hedging includes exposure from single reference entity ("single-name"), index and other multiple reference entity transactions for which one or more of the underlying reference entities is in a country listed in the above table.(e)Includes physical commodities inventory and clearing house guarantee funds.(f)The country rankings presented in the table as of December 31, 2023, are based on the country rankings of the corresponding exposures at December 31, 2024, not actual rankings of such exposures at December 31, 2023. Stress testingStress testing is an important component of the Firm's country risk management framework, which aims to estimate and limit losses arising from a country crisis by measuring the impact of adverse asset price movements to a country based on market shocks combined with counterparty specific assumptions. Country Risk Management periodically designs and runs tailored stress scenarios to test vulnerabilities to individual countries or sets of countries in response to specific or potential market events, sector performance concerns, sovereign actions and geopolitical risks. These tailored stress results are used to inform potential risk reduction across the Firm, as necessary.Risk reportingCountry exposure and stress are measured and reported regularly, and used by Country Risk Management to identify trends and monitor high usages and breaches against limits. For country risk management purposes, the Firm may report exposure to jurisdictions that are not fully autonomous, including dependent territories and Special Administrative Regions ("SAR") such as Hong Kong SAR, separately from the independent sovereign states with which they are associated.The following table presents the Firm's top 20 exposures by country (excluding the U.S.) as of December 31, 2024, and their comparative exposures as of December 31, 2023. The top 20 country exposures represent the Firm's largest total exposures by individual country. Country exposures may fluctuate from period to period due to a variety of factors, including client activity, market flows and liquidity management activities undertaken by the Firm. The increase in exposure to Germany when compared to December 31, 2023, was driven by an increase in cash placed with the central bank of Germany, predominantly due to client-driven market-making activities and higher client deposits.The increase in exposure to Japan when compared to December 31, 2023, was driven by an increase in cash placed with the central bank of Japan as a result of client-driven market-making activities.The Firm continues to monitor its exposure to Russia, which corresponds to cash placed with the central bank, but which excludes deposits placed on behalf of clients at the Deposit Insurance Agency of Russia. The Firm currently believes that its remaining exposure to Russia is not material. Refer to Note 30 on pages 310-311 for information concerning Russian litigation. **Current (2026):** Stress testingStress testing is an important component of the Firm's country risk management framework, which aims to estimate and limit losses arising from a country crisis by measuring the impact of adverse asset price movements to a country based on market shocks combined with counterparty specific assumptions. Country Risk Management periodically designs and runs tailored stress scenarios to test vulnerabilities to individual countries or sets of countries in response to specific or potential market events, sector performance concerns, sovereign actions and geopolitical risks. These tailored stress results are used to inform potential risk reduction across the Firm, as necessary.Risk reportingCountry exposure and stress are measured and reported regularly, and used by Country Risk Management to identify trends and monitor high usages and breaches against limits.For country risk management purposes, the Firm may report exposure to jurisdictions that are not fully autonomous, including dependent territories and Special Administrative Regions ("SAR") such as Hong Kong SAR, separately from the independent sovereign states with which they are associated.The following table presents the Firm's top 20 exposures by country (excluding the U.S.) as of December 31, 2025, and their comparative exposures as of December 31, 2024. The top 20 country exposures represent the Firm's largest total exposures by individual country. Country exposures may fluctuate from period to period due to a variety of factors, including client activity, market flows and liquidity management activities undertaken by the Firm. The increase in exposure to the United Kingdom when compared to December 31, 2024 was predominantly driven by higher holdings of government debt securities due to increased investment and market-making securities activities, as well as an increase in wholesale lending exposures.The Firm continues to monitor its exposure to Russia, which corresponds to cash placed with the central bank, but which excludes deposits placed on behalf of clients at the Deposit Insurance Agency of Russia. The Firm currently believes that its remaining exposure to Russia is not material. Refer to Note 30 on page 303 for information concerning Russian litigation.Top 20 country exposures (excluding the U.S.)(a)December 31, (in billions)20252024(f)Deposits with banks(b)Lending(c)Trading and investing(d)Other(e)Total exposureTotal exposureGermany$83.9 $15.7 $ - $0.7 $100.3 $103.9 United Kingdom26.1 27.0 36.9 3.2 93.2 76.1 Japan64.4 4.2 8.4 0.3 77.3 63.1 France0.7 14.6 8.3 1.3 24.9 18.0 Brazil10.0 5.0 5.9 - 20.9 14.7 Australia5.6 9.1 2.8 0.1 17.6 14.3 Canada2.0 11.9 2.1 0.2 16.2 15.1 Switzerland4.5 5.2 2.3 3.0 15.0 13.6 Mexico1.7 8.9 3.0 - 13.6 7.2 South Korea1.1 3.3 8.5 0.5 13.4 10.3 Mainland China2.7 6.6 3.9 - 13.2 13.4 India1.2 6.7 4.7 0.4 13.0 11.3 Saudi Arabia0.9 8.9 2.6 - 12.4 9.4 Italy0.1 8.5 2.7 0.3 11.6 10.4 Singapore2.0 2.5 4.4 0.4 9.3 7.4 Belgium4.5 1.6 0.5 - 6.6 5.4 Netherlands0.2 6.1 0.1 0.1 6.5 5.9 United Arab Emirates0.1 4.7 0.9 - 5.7 2.6 Chile3.0 1.6 0.5 - 5.1 1.7 Spain0.1 4.4 0.1 - 4.6 6.1 (a)Country exposures presented in the table reflect 87% and 88% of total Firmwide non-U.S. exposure, where exposure is attributed to an individual country based on the Firm's internal country risk management approach, at December 31, 2025 and 2024, respectively.(b)Predominantly represents cash placed with central banks.(c)Includes loans and accrued interest receivable, lending-related commitments (net of eligible collateral and the allowance for credit losses). Excludes intra-day and operating exposures, such as those from settlement and clearing activities.(d)Includes market-making positions and hedging, investment securities, and counterparty exposure on derivative and securities financings net of eligible collateral. Market-making positions and hedging includes exposure from single reference entity ("single-name"), index and other multiple reference entity transactions for which one or more of the underlying reference entities is in a country listed in the above table.(e)Includes physical commodities inventory and clearing house guarantee funds.(f)The country rankings presented in the table as of December 31, 2024, are based on the country rankings of the corresponding exposures at December 31, 2025, not actual rankings of such exposures at December 31, 2024. Stress testingStress testing is an important component of the Firm's country risk management framework, which aims to estimate and limit losses arising from a country crisis by measuring the impact of adverse asset price movements to a country based on market shocks combined with counterparty specific assumptions. Country Risk Management periodically designs and runs tailored stress scenarios to test vulnerabilities to individual countries or sets of countries in response to specific or potential market events, sector performance concerns, sovereign actions and geopolitical risks. These tailored stress results are used to inform potential risk reduction across the Firm, as necessary.Risk reportingCountry exposure and stress are measured and reported regularly, and used by Country Risk Management to identify trends and monitor high usages and breaches against limits.For country risk management purposes, the Firm may report exposure to jurisdictions that are not fully autonomous, including dependent territories and Special Administrative Regions ("SAR") such as Hong Kong SAR, separately from the independent sovereign states with which they are associated.The following table presents the Firm's top 20 exposures by country (excluding the U.S.) as of December 31, 2025, and their comparative exposures as of December 31, 2024. The top 20 country exposures represent the Firm's largest total exposures by individual country. Country exposures may fluctuate from period to period due to a variety of factors, including client activity, market flows and liquidity management activities undertaken by the Firm. The increase in exposure to the United Kingdom when compared to December 31, 2024 was predominantly driven by higher holdings of government debt securities due to increased investment and market-making securities activities, as well as an increase in wholesale lending exposures.The Firm continues to monitor its exposure to Russia, which corresponds to cash placed with the central bank, but which excludes deposits placed on behalf of clients at the Deposit Insurance Agency of Russia. The Firm currently believes that its remaining exposure to Russia is not material. Refer to Note 30 on page 303 for information concerning Russian litigation. --- ## Modified Risk: Sources of funds **Key changes:** - Updated: "Deposits The table below summarizes, by LOB and Corporate, the period-end and average deposit balances as of and for the years ended December 31, 2025 and 2024." - Updated: "Wholesale operating deposits are generally considered to be stable sources of liquidity because they are generated from clients that maintain operating service relationships with the Firm." - Updated: "However, during periods of market disruption, average deposit trends may be impacted.Average deposits increased for the year ended December 31, 2025 compared to the year ended December 31, 2024, reflecting the net impact of:•an increase in CIB due to net inflows related to client-driven activities in Payments and Securities Services, partially offset by net maturities of structured notes in Markets,•an increase in AWM primarily driven by growth in both new accounts and balances in existing accounts, including the impact of higher-yielding product offerings, and•a decrease in CCB primarily driven by increased customer spending, predominantly offset by new accounts." - Updated: "Wholesale operating deposits are generally considered to be stable sources of liquidity because they are generated from clients that maintain operating service relationships with the Firm." - Updated: "Average deposits increased for the year ended December 31, 2025 compared to the year ended December 31, 2024, reflecting the net impact of: •an increase in CIB due to net inflows related to client-driven activities in Payments and Securities Services, partially offset by net maturities of structured notes in Markets, •an increase in AWM primarily driven by growth in both new accounts and balances in existing accounts, including the impact of higher-yielding product offerings, and •a decrease in CCB primarily driven by increased customer spending, predominantly offset by new accounts." **Prior (2025):** Management believes that the Firm's unsecured and secured funding capacity is sufficient to meet its on- and off-balance sheet obligations, which includes both short- and long-term cash requirements.The Firm funds its global balance sheet through diverse sources of funding including deposits, secured and unsecured funding in the capital markets and stockholders' equity. Deposits are the primary funding source for JPMorgan Chase Bank, N.A. Additionally, JPMorgan Chase Bank, N.A. may access funding through short- or long-term secured borrowings, the issuance of unsecured long-term debt, or from borrowings from the IHC. The Firm's non-bank subsidiaries are primarily funded from long-term unsecured borrowings and short-term secured borrowings which are primarily securities loaned or sold under repurchase agreements. Excess funding is invested by Treasury and CIO in the Firm's investment securities portfolio or deployed in cash or other short-term liquid investments based on their interest rate and liquidity risk characteristics. Refer to Note 28 for additional information on off-balance sheet obligations. Management believes that the Firm's unsecured and secured funding capacity is sufficient to meet its on- and off-balance sheet obligations, which includes both short- and long-term cash requirements.The Firm funds its global balance sheet through diverse sources of funding including deposits, secured and unsecured funding in the capital markets and stockholders' equity. Deposits are the primary funding source for JPMorgan Chase Bank, N.A. Additionally, JPMorgan Chase Bank, N.A. may access funding through short- or long-term secured borrowings, the issuance of unsecured long-term debt, or from Management believes that the Firm's unsecured and secured funding capacity is sufficient to meet its on- and off-balance sheet obligations, which includes both short- and long-term cash requirements. The Firm funds its global balance sheet through diverse sources of funding including deposits, secured and unsecured funding in the capital markets and stockholders' equity. Deposits are the primary funding source for JPMorgan Chase Bank, N.A. Additionally, JPMorgan Chase Bank, N.A. may access funding through short- or long-term secured borrowings, the issuance of unsecured long-term debt, or from borrowings from the IHC. The Firm's non-bank subsidiaries are primarily funded from long-term unsecured borrowings and short-term secured borrowings which are primarily securities loaned or sold under repurchase agreements. Excess funding is invested by Treasury and CIO in the Firm's investment securities portfolio or deployed in cash or other short-term liquid investments based on their interest rate and liquidity risk characteristics. Refer to Note 28 for additional information on off-balance sheet obligations. borrowings from the IHC. The Firm's non-bank subsidiaries are primarily funded from long-term unsecured borrowings and short-term secured borrowings which are primarily securities loaned or sold under repurchase agreements. Excess funding is invested by Treasury and CIO in the Firm's investment securities portfolio or deployed in cash or other short-term liquid investments based on their interest rate and liquidity risk characteristics. Refer to Note 28 for additional information on off-balance sheet obligations. Deposits The table below summarizes, by LOB and Corporate, the period-end and average deposit balances as of and for the years ended December 31, 2024 and 2023. As of or for the year ended December 31,Average(in millions)2024202320242023Consumer & Community Banking(a)$1,056,652 $1,094,738 $1,064,215 $1,126,552 Commercial & Investment Bank(a)1,073,512 1,050,892 1,061,488 996,295 Asset & Wealth Management(a)248,287 233,232 235,146 216,178 Corporate27,581 21,826 25,793 20,042 Total Firm$2,406,032 $2,400,688 $2,386,642 $2,359,067 Consumer & Community Banking(a) Commercial & Investment Bank(a) Asset & Wealth Management(a) Corporate (a)In the fourth quarter of 2023, CCB transferred certain deposits associated with First Republic to AWM and CIB. The Firm believes that deposits provide a stable source of funding and reduce the Firm's reliance on the wholesale funding markets. A significant portion of the Firm's deposits are consumer deposits and wholesale operating deposits, which are both considered to be stable sources of liquidity. Wholesale operating deposits are generally considered to be stable sources of liquidity because they are generated from customers that maintain operating service relationships with the Firm. The Firm believes that average deposit balances are generally more representative of deposit trends than period-end deposit balances. However, during periods of market disruption, average deposit trends may be impacted.The following discussion excludes the impact of the transfer of certain First Republic deposits in the fourth quarter of 2023 from CCB to the other LOBs as the transfers had no net impact on Firmwide deposits.Average deposits increased for the year ended December 31, 2024 compared to the year ended December 31, 2023, reflecting:•an increase in CIB due to net inflows predominantly in Payments and net issuances of structured notes as a result of client demand in Markets, partially offset by deposit attrition, which included actions taken to reduce certain deposits,•the timing impact of First Republic,•an increase in AWM as a result of growth in balances in new and existing client accounts, reflecting the impact of higher-yielding product offerings, largely offset by continued migration into other investments, and•a decline in CCB primarily driven by a decrease in balances in existing accounts due to increased customer spending, largely offset by new accounts. Period-end deposits increased from December 31, 2023, reflecting:•an increase in CIB due to net inflows predominantly in Payments, largely offset by net maturities of structured notes in Markets,•an increase in AWM as a result of growth in balances in new and existing client accounts, reflecting the impact of higher-yielding product offerings, largely offset by continued migration into other investments, and•a decline in CCB primarily driven by a decrease in balances in existing accounts due to increased customer spending and migration into higher-yielding investments, predominantly offset by new accounts.Refer to the Firm's Consolidated Balance Sheets Analysis and the Business Segment & Corporate Results on pages 63-65 and pages 70-90, respectively, for further information on deposit and liability balance trends, as well as Executive Overview The Firm believes that deposits provide a stable source of funding and reduce the Firm's reliance on the wholesale funding markets. A significant portion of the Firm's deposits are consumer deposits and wholesale operating deposits, which are both considered to be stable sources of liquidity. Wholesale operating deposits are generally considered to be stable sources of liquidity because they are generated from customers that maintain operating service relationships with the Firm. The Firm believes that average deposit balances are generally more representative of deposit trends than period-end deposit balances. However, during periods of market disruption, average deposit trends may be impacted.The following discussion excludes the impact of the transfer of certain First Republic deposits in the fourth quarter of 2023 from CCB to the other LOBs as the transfers had no net impact on Firmwide deposits.Average deposits increased for the year ended December 31, 2024 compared to the year ended December 31, 2023, reflecting:•an increase in CIB due to net inflows predominantly in Payments and net issuances of structured notes as a result of client demand in Markets, partially offset by deposit attrition, which included actions taken to reduce certain deposits,•the timing impact of First Republic, The Firm believes that deposits provide a stable source of funding and reduce the Firm's reliance on the wholesale funding markets. A significant portion of the Firm's deposits are consumer deposits and wholesale operating deposits, which are both considered to be stable sources of liquidity. Wholesale operating deposits are generally considered to be stable sources of liquidity because they are generated from customers that maintain operating service relationships with the Firm. The Firm believes that average deposit balances are generally more representative of deposit trends than period-end deposit balances. However, during periods of market disruption, average deposit trends may be impacted. The following discussion excludes the impact of the transfer of certain First Republic deposits in the fourth quarter of 2023 from CCB to the other LOBs as the transfers had no net impact on Firmwide deposits. Average deposits increased for the year ended December 31, 2024 compared to the year ended December 31, 2023, reflecting: •an increase in CIB due to net inflows predominantly in Payments and net issuances of structured notes as a result of client demand in Markets, partially offset by deposit attrition, which included actions taken to reduce certain deposits, •the timing impact of First Republic, •an increase in AWM as a result of growth in balances in new and existing client accounts, reflecting the impact of higher-yielding product offerings, largely offset by continued migration into other investments, and•a decline in CCB primarily driven by a decrease in balances in existing accounts due to increased customer spending, largely offset by new accounts. Period-end deposits increased from December 31, 2023, reflecting:•an increase in CIB due to net inflows predominantly in Payments, largely offset by net maturities of structured notes in Markets,•an increase in AWM as a result of growth in balances in new and existing client accounts, reflecting the impact of higher-yielding product offerings, largely offset by continued migration into other investments, and•a decline in CCB primarily driven by a decrease in balances in existing accounts due to increased customer spending and migration into higher-yielding investments, predominantly offset by new accounts.Refer to the Firm's Consolidated Balance Sheets Analysis and the Business Segment & Corporate Results on pages 63-65 and pages 70-90, respectively, for further information on deposit and liability balance trends, as well as Executive Overview •an increase in AWM as a result of growth in balances in new and existing client accounts, reflecting the impact of higher-yielding product offerings, largely offset by continued migration into other investments, and •a decline in CCB primarily driven by a decrease in balances in existing accounts due to increased customer spending, largely offset by new accounts. Period-end deposits increased from December 31, 2023, reflecting: •an increase in CIB due to net inflows predominantly in Payments, largely offset by net maturities of structured notes in Markets, •an increase in AWM as a result of growth in balances in new and existing client accounts, reflecting the impact of higher-yielding product offerings, largely offset by continued migration into other investments, and •a decline in CCB primarily driven by a decrease in balances in existing accounts due to increased customer spending and migration into higher-yielding investments, predominantly offset by new accounts. Refer to the Firm's Consolidated Balance Sheets Analysis and the Business Segment & Corporate Results on pages 63-65 and pages 70-90, respectively, for further information on deposit and liability balance trends, as well as Executive Overview JPMorgan Chase & Co./2024 Form 10-K111 JPMorgan Chase & Co./2024 Form 10-K111 JPMorgan Chase & Co./2024 Form 10-K111 JPMorgan Chase & Co./2024 Form 10-K 111 **Current (2026):** Management believes that the Firm's unsecured and secured funding capacity is sufficient to meet its on- and off-balance sheet obligations, which includes both short- and long-term cash requirements.The Firm funds its global balance sheet through diverse sources of funding including deposits, secured and unsecured funding in the capital markets and stockholders' equity. Deposits are the primary funding source for JPMorgan Chase Bank, N.A. Additionally, JPMorgan Chase Bank, N.A. may access funding through short- or long-term secured borrowings, the issuance of unsecured long-term debt, or from borrowings from the IHC. The Firm's non-bank subsidiaries are primarily funded from long-term unsecured borrowings and short-term secured borrowings which are primarily securities loaned or sold under repurchase agreements. Excess funding is invested by Treasury and CIO in the Firm's investment securities portfolio or deployed in cash or other short-term liquid investments based on their interest rate and liquidity risk characteristics. Refer to Note 28 for additional information on off-balance sheet obligations. Management believes that the Firm's unsecured and secured funding capacity is sufficient to meet its on- and off-balance sheet obligations, which includes both short- and long-term cash requirements.The Firm funds its global balance sheet through diverse sources of funding including deposits, secured and unsecured funding in the capital markets and stockholders' equity. Deposits are the primary funding source for JPMorgan Chase Bank, N.A. Additionally, JPMorgan Chase Bank, N.A. may access funding through short- or long-term secured borrowings, the issuance of unsecured long-term debt, or from Management believes that the Firm's unsecured and secured funding capacity is sufficient to meet its on- and off-balance sheet obligations, which includes both short- and long-term cash requirements. The Firm funds its global balance sheet through diverse sources of funding including deposits, secured and unsecured funding in the capital markets and stockholders' equity. Deposits are the primary funding source for JPMorgan Chase Bank, N.A. Additionally, JPMorgan Chase Bank, N.A. may access funding through short- or long-term secured borrowings, the issuance of unsecured long-term debt, or from borrowings from the IHC. The Firm's non-bank subsidiaries are primarily funded from long-term unsecured borrowings and short-term secured borrowings which are primarily securities loaned or sold under repurchase agreements. Excess funding is invested by Treasury and CIO in the Firm's investment securities portfolio or deployed in cash or other short-term liquid investments based on their interest rate and liquidity risk characteristics. Refer to Note 28 for additional information on off-balance sheet obligations. borrowings from the IHC. The Firm's non-bank subsidiaries are primarily funded from long-term unsecured borrowings and short-term secured borrowings which are primarily securities loaned or sold under repurchase agreements. Excess funding is invested by Treasury and CIO in the Firm's investment securities portfolio or deployed in cash or other short-term liquid investments based on their interest rate and liquidity risk characteristics. Refer to Note 28 for additional information on off-balance sheet obligations. Deposits The table below summarizes, by LOB and Corporate, the period-end and average deposit balances as of and for the years ended December 31, 2025 and 2024. As of or for the year ended December 31,Average(in millions)2025202420252024Consumer & Community Banking$1,072,792 $1,056,652 $1,057,232 $1,064,215 Commercial & Investment Bank1,193,338 1,073,512 1,174,581 1,061,488 Asset & Wealth Management257,316 248,287 245,248 235,146 Corporate35,874 27,581 29,504 25,793 Total Firm$2,559,320 $2,406,032 $2,506,565 $2,386,642 Consumer & Community Banking Commercial & Investment Bank Asset & Wealth Management Corporate The Firm believes that deposits provide a stable source of funding and reduce the Firm's reliance on the wholesale funding markets. A significant portion of the Firm's deposits are consumer deposits and wholesale operating deposits, which are both considered to be stable sources of liquidity. Wholesale operating deposits are generally considered to be stable sources of liquidity because they are generated from clients that maintain operating service relationships with the Firm. The Firm believes that average deposit balances are generally more representative of deposit trends than period-end deposit balances. However, during periods of market disruption, average deposit trends may be impacted.Average deposits increased for the year ended December 31, 2025 compared to the year ended December 31, 2024, reflecting the net impact of:•an increase in CIB due to net inflows related to client-driven activities in Payments and Securities Services, partially offset by net maturities of structured notes in Markets,•an increase in AWM primarily driven by growth in both new accounts and balances in existing accounts, including the impact of higher-yielding product offerings, and•a decrease in CCB primarily driven by increased customer spending, predominantly offset by new accounts.Period-end deposits increased from December 31, 2024, reflecting:•an increase in CIB due to net inflows related to client-driven activities in Payments and Securities Services, •an increase in CCB primarily driven by new accounts, predominantly offset by increased customer spending, and •an increase in AWM primarily driven by growth in both new accounts and balances in existing accounts, including the impact of higher-yielding product offerings, largely offset by migration into other investment products.Refer to the Firm's Consolidated Balance Sheets Analysis and the Business Segment & Corporate Results on pages 55-57 and pages 62-82, respectively, for further information on deposit and liability balance trends. Refer to Note 3 for further information on structured notes. Certain deposits are covered by insurance protection that provides additional funding stability and results in a benefit to the LCR. Deposit insurance protection may be available to depositors in the countries in which the deposits are placed. For example, the FDIC provides deposit insurance protection for deposits placed in a U.S. depository institution. At December 31, 2025 and 2024, Firmwide estimated uninsured deposits were $1,558.6 billion and $1,414.0 billion, respectively, primarily reflecting wholesale operating deposits. The Firm believes that deposits provide a stable source of funding and reduce the Firm's reliance on the wholesale funding markets. A significant portion of the Firm's deposits are consumer deposits and wholesale operating deposits, which are both considered to be stable sources of liquidity. Wholesale operating deposits are generally considered to be stable sources of liquidity because they are generated from clients that maintain operating service relationships with the Firm. The Firm believes that average deposit balances are generally more representative of deposit trends than period-end deposit balances. However, during periods of market disruption, average deposit trends may be impacted.Average deposits increased for the year ended December 31, 2025 compared to the year ended December 31, 2024, reflecting the net impact of:•an increase in CIB due to net inflows related to client-driven activities in Payments and Securities Services, partially offset by net maturities of structured notes in Markets,•an increase in AWM primarily driven by growth in both new accounts and balances in existing accounts, including the impact of higher-yielding product offerings, and•a decrease in CCB primarily driven by increased customer spending, predominantly offset by new accounts. The Firm believes that deposits provide a stable source of funding and reduce the Firm's reliance on the wholesale funding markets. A significant portion of the Firm's deposits are consumer deposits and wholesale operating deposits, which are both considered to be stable sources of liquidity. Wholesale operating deposits are generally considered to be stable sources of liquidity because they are generated from clients that maintain operating service relationships with the Firm. The Firm believes that average deposit balances are generally more representative of deposit trends than period-end deposit balances. However, during periods of market disruption, average deposit trends may be impacted. Average deposits increased for the year ended December 31, 2025 compared to the year ended December 31, 2024, reflecting the net impact of: •an increase in CIB due to net inflows related to client-driven activities in Payments and Securities Services, partially offset by net maturities of structured notes in Markets, •an increase in AWM primarily driven by growth in both new accounts and balances in existing accounts, including the impact of higher-yielding product offerings, and •a decrease in CCB primarily driven by increased customer spending, predominantly offset by new accounts. Period-end deposits increased from December 31, 2024, reflecting:•an increase in CIB due to net inflows related to client-driven activities in Payments and Securities Services, •an increase in CCB primarily driven by new accounts, predominantly offset by increased customer spending, and •an increase in AWM primarily driven by growth in both new accounts and balances in existing accounts, including the impact of higher-yielding product offerings, largely offset by migration into other investment products.Refer to the Firm's Consolidated Balance Sheets Analysis and the Business Segment & Corporate Results on pages 55-57 and pages 62-82, respectively, for further information on deposit and liability balance trends. Refer to Note 3 for further information on structured notes. Certain deposits are covered by insurance protection that provides additional funding stability and results in a benefit to the LCR. Deposit insurance protection may be available to depositors in the countries in which the deposits are placed. For example, the FDIC provides deposit insurance protection for deposits placed in a U.S. depository institution. At December 31, 2025 and 2024, Firmwide estimated uninsured deposits were $1,558.6 billion and $1,414.0 billion, respectively, primarily reflecting wholesale operating deposits. Period-end deposits increased from December 31, 2024, reflecting: •an increase in CIB due to net inflows related to client-driven activities in Payments and Securities Services, •an increase in CCB primarily driven by new accounts, predominantly offset by increased customer spending, and •an increase in AWM primarily driven by growth in both new accounts and balances in existing accounts, including the impact of higher-yielding product offerings, largely offset by migration into other investment products. Refer to the Firm's Consolidated Balance Sheets Analysis and the Business Segment & Corporate Results on pages 55-57 and pages 62-82, respectively, for further information on deposit and liability balance trends. Refer to Note 3 for further information on structured notes. Certain deposits are covered by insurance protection that provides additional funding stability and results in a benefit to the LCR. Deposit insurance protection may be available to depositors in the countries in which the deposits are placed. For example, the FDIC provides deposit insurance protection for deposits placed in a U.S. depository institution. At December 31, 2025 and 2024, Firmwide estimated uninsured deposits were $1,558.6 billion and $1,414.0 billion, respectively, primarily reflecting wholesale operating deposits. JPMorgan Chase & Co./2025 Form 10-K103 JPMorgan Chase & Co./2025 Form 10-K103 JPMorgan Chase & Co./2025 Form 10-K103 JPMorgan Chase & Co./2025 Form 10-K 103 --- ## Modified Risk: JPMorganChase's businesses could be negatively affected by economic uncertainty resulting from political and geopolitical developments. **Key changes:** - Updated: "and other countries could cause uncertainty in the economic environment and market conditions in which JPMorganChase operates." - Updated: "dollar as a safe haven currency •provoke retaliatory countermeasures by other countries or otherwise heighten tensions in trade or diplomatic relations •increase the risk of targeted cyber attacks •increase concerns about whether the U.S." **Prior (2025):** Political developments in the U.S. and other countries can cause uncertainty in the economic environment and market conditions in which JPMorganChase operates its businesses. Certain governmental policy initiatives, as well as heightened geopolitical tensions, could significantly affect U.S. and global economic growth and cause higher volatility in the financial markets, including:•monetary policies and actions taken by the Federal Reserve and other central banks or governmental authorities, including changes in interest rate levels and any sustained large-scale asset purchases or any suspension or reversal of those actions•fiscal policies, including with respect to taxation and spending•isolationist foreign policies•economic or financial sanctions•the implementation of tariffs and other protectionist trade policies•changes to immigration policies, or•actions that the government takes or fails to take in response to the effects of health emergencies, the spread of infectious diseases, epidemics or pandemics.These types of political developments, and uncertainty about the possible outcomes of these developments, could:•erode investor or consumer confidence in the U.S. economy and financial markets, which could potentially undermine the status of the U.S. dollar as a safe haven currency•provoke retaliatory countermeasures by other countries and otherwise heighten tensions in regulatory, enforcement or diplomatic relations•increase the risk of targeted cyber attacks•increase concerns about whether the U.S. government will be funded, and its outstanding debt serviced, at any particular time•result in periodic shutdowns of the U.S. government •influence investor perceptions concerning government support of certain sectors of the economy or the economy as a whole•influence monetary policy actions of the Federal Reserve to moderate the economic impact of political developments, including decisions on interest rate levels and asset purchases and sales•adversely affect the financial condition or credit ratings of clients and counterparties with which JPMorganChase does business, or•cause JPMorganChase to refrain from engaging in business opportunities that it might otherwise pursue.These factors could lead to:•slower growth rates, rising inflation or recession•disruptions in labor markets•greater market volatility could significantly affect U.S. and global economic growth and cause higher volatility in the financial markets, including: •monetary policies and actions taken by the Federal Reserve and other central banks or governmental authorities, including changes in interest rate levels and any sustained large-scale asset purchases or any suspension or reversal of those actions •fiscal policies, including with respect to taxation and spending •isolationist foreign policies •economic or financial sanctions •the implementation of tariffs and other protectionist trade policies •changes to immigration policies, or •actions that the government takes or fails to take in response to the effects of health emergencies, the spread of infectious diseases, epidemics or pandemics. These types of political developments, and uncertainty about the possible outcomes of these developments, could: •erode investor or consumer confidence in the U.S. economy and financial markets, which could potentially undermine the status of the U.S. dollar as a safe haven currency •provoke retaliatory countermeasures by other countries and otherwise heighten tensions in regulatory, enforcement or diplomatic relations •increase the risk of targeted cyber attacks •increase concerns about whether the U.S. government will be funded, and its outstanding debt serviced, at any particular time •result in periodic shutdowns of the U.S. government •influence investor perceptions concerning government support of certain sectors of the economy or the economy as a whole •influence monetary policy actions of the Federal Reserve to moderate the economic impact of political developments, including decisions on interest rate levels and asset purchases and sales •adversely affect the financial condition or credit ratings of clients and counterparties with which JPMorganChase does business, or •cause JPMorganChase to refrain from engaging in business opportunities that it might otherwise pursue. These factors could lead to: •slower growth rates, rising inflation or recession •disruptions in labor markets •greater market volatility 15 15 15 15 Part I Part I •a contraction of available credit and the widening of credit spreads•U.S. dollar currency fluctuations•lower investments in a particular country or sector of the economy•large-scale sales of government debt and other debt and equity securities•reduced commercial activity among trading partners or disruptions to supply chains, or•the possible departure of a country from, or the dissolution or formation of, a political or economic alliance or treaty.Under certain circumstances, such as geopolitically challenging situations in regions like Russia, the Middle East and China, these various risks could become highly correlated or combine in unprecedented ways.Any of these potential outcomes could cause JPMorganChase to suffer losses on its market-making positions or in its investment portfolio, reduce its liquidity and capital levels, increase the allowance for credit losses or lead to higher net charge-offs, hamper its ability to deliver products and services to its clients and customers, and weaken its results of operations and financial condition or credit rating.MarketEconomic and market events and conditions can materially affect JPMorganChase's businesses and investment and market-making positions.JPMorganChase's results of operations can be negatively affected by adverse changes in any of the following:•investor, consumer and business sentiment•events that reduce confidence in the financial markets•inflation, deflation or recession•high unemployment or, conversely, a tightening labor market•the availability and cost of capital, liquidity and credit•levels and volatility of interest rates, credit spreads and market prices for currencies, debt and equity securities and commodities, as well as the duration of any such changes•the economic effects of an outbreak or escalation of war, hostilities, terrorism or other geopolitical instabilities, cyber attacks, climate change, natural disasters, severe weather conditions, health emergencies, the spread of infectious diseases, epidemics or pandemics or other extraordinary events beyond JPMorganChase's control, and•the state of the U.S. and global economies.All of these are affected by global economic, market and political events and conditions, including monetary policies and actions taken by central banks or other governmental authorities, as well as by the regulatory environment.In addition, JPMorganChase's investment portfolio and market-making businesses can suffer losses due to unanticipated market events, including:•severe declines in asset values•unexpected credit events•unforeseen events or conditions that may cause previously uncorrelated factors to become correlated (and vice versa)•the inability to effectively hedge risks related to market-making and investment portfolio positions, or•other market risks that may not have been appropriately taken into account in the development, structuring or pricing of a financial instrument.If JPMorganChase experiences significant losses in its investment portfolio or from market-making activities, this could reduce JPMorganChase's profitability and its liquidity and capital levels, and thereby constrain the growth of its businesses.JPMorganChase's consumer businesses can be negatively affected by adverse economic conditions and governmental policies.JPMorganChase's consumer businesses are particularly affected by U.S. and global economic conditions, including:•personal and household income distribution•unemployment or underemployment•prolonged periods of exceptionally high or low interest rates, or significant changes to interest rates•changes in the value of collateral such as residential real estate and vehicles•changes in housing prices•the level of inflation and its effect on prices for goods and services•consumer and small business confidence levels, and•changes in consumer spending or in the level of consumer debt.Heightened levels of unemployment or underemployment that result in reduced personal and household income could negatively affect consumer credit performance to the extent that consumers are less able to service their debts. In addition, sustained low growth, low or negative interest rates, inflationary pressures or recessionary conditions could diminish customer demand for the products and services offered by JPMorganChase's consumer businesses. •a contraction of available credit and the widening of credit spreads•U.S. dollar currency fluctuations•lower investments in a particular country or sector of the economy•large-scale sales of government debt and other debt and equity securities•reduced commercial activity among trading partners or disruptions to supply chains, or•the possible departure of a country from, or the dissolution or formation of, a political or economic alliance or treaty.Under certain circumstances, such as geopolitically challenging situations in regions like Russia, the Middle East and China, these various risks could become highly correlated or combine in unprecedented ways.Any of these potential outcomes could cause JPMorganChase to suffer losses on its market-making positions or in its investment portfolio, reduce its liquidity and capital levels, increase the allowance for credit losses or lead to higher net charge-offs, hamper its ability to deliver products and services to its clients and customers, and weaken its results of operations and financial condition or credit rating.MarketEconomic and market events and conditions can materially affect JPMorganChase's businesses and investment and market-making positions.JPMorganChase's results of operations can be negatively affected by adverse changes in any of the following:•investor, consumer and business sentiment•events that reduce confidence in the financial markets•inflation, deflation or recession•high unemployment or, conversely, a tightening labor market•the availability and cost of capital, liquidity and credit•levels and volatility of interest rates, credit spreads and market prices for currencies, debt and equity securities and commodities, as well as the duration of any such changes•the economic effects of an outbreak or escalation of war, hostilities, terrorism or other geopolitical instabilities, cyber attacks, climate change, natural disasters, severe weather conditions, health emergencies, the spread of infectious diseases, epidemics or pandemics or other extraordinary events beyond JPMorganChase's control, and•the state of the U.S. and global economies. •a contraction of available credit and the widening of credit spreads •U.S. dollar currency fluctuations •lower investments in a particular country or sector of the economy •large-scale sales of government debt and other debt and equity securities •reduced commercial activity among trading partners or disruptions to supply chains, or •the possible departure of a country from, or the dissolution or formation of, a political or economic alliance or treaty. Under certain circumstances, such as geopolitically challenging situations in regions like Russia, the Middle East and China, these various risks could become highly correlated or combine in unprecedented ways. Any of these potential outcomes could cause JPMorganChase to suffer losses on its market-making positions or in its investment portfolio, reduce its liquidity and capital levels, increase the allowance for credit losses or lead to higher net charge-offs, hamper its ability to deliver products and services to its clients and customers, and weaken its results of operations and financial condition or credit rating. Market **Current (2026):** Political developments in the U.S. and other countries could cause uncertainty in the economic environment and market conditions in which JPMorganChase operates. Certain governmental policies or actions could significantly affect U.S. and global economic growth and cause higher volatility in the financial markets, including: •monetary policies and actions taken by central banks, including any sustained large-scale asset purchases, any suspension or reversal of those actions, and changes in interest rate levels •fiscal policies, including with respect to taxation and spending •foreign policies that emphasize national interests •economic or financial sanctions •the implementation of tariffs and other trade policies •requirements to relocate business activities or operations •deployment of the military •changes to immigration policies, or •actions or inactions by a government related to emergencies. These types of political developments, as well as heightened geopolitical tensions, could: •erode investor or consumer confidence in the U.S. economy and financial markets, which could potentially undermine the status of the U.S. dollar as a safe haven currency •provoke retaliatory countermeasures by other countries or otherwise heighten tensions in trade or diplomatic relations •increase the risk of targeted cyber attacks •increase concerns about whether the U.S. government will be funded and will be able to service its outstanding debt •result in periodic shutdowns of the U.S. government •influence investor perceptions concerning government support of certain sectors of the economy or the economy as a whole •influence monetary policy actions of the Federal Reserve to moderate the economic impact of political developments, including decisions on interest rate levels and asset purchases and sales •adversely affect the financial condition or credit ratings of clients and counterparties with which JPMorganChase does business, or •cause JPMorganChase to forgo business opportunities that it might otherwise pursue.These factors could lead to:•slower growth rates, rising inflation or recession•disruptions in labor markets•greater market volatility•a contraction of available credit and the widening of credit spreads•U.S. dollar currency fluctuations•lower investments in a particular country or sector of the economy•large-scale sales of government debt and other debt and equity securities•reduced commercial activity among trading partners or disruptions to supply chains, or•the formation of or changes in political or economic alliances or treaties.These risks could become highly correlated or combine in unexpected ways under certain circumstances, including geopolitically challenging situations in regions such as Russia, the Middle East and China.Any of the foregoing potential outcomes could cause JPMorganChase to:•suffer losses on its market-making positions or in its investment portfolio•reduce its liquidity and capital levels•increase the allowance for credit losses or recognize higher net charge-offs•hamper its ability to deliver products and services to its clients and customers •weaken its results of operations and financial condition or credit ratings, or•become subject to prolonged litigation.MarketAdverse economic and market events and conditions could negatively affect JPMorganChase's results of operations and investment and market-making positions.JPMorganChase's results of operations could be negatively affected by the occurrence or persistence of adverse changes in any of the following:•the U.S. and global economies•investor, consumer and business sentiment, or confidence in the financial markets•inflation, deflation, recession or employment•the availability and cost of capital, liquidity and credit•levels and volatility of interest rates, credit spreads or market prices of currencies, securities and •cause JPMorganChase to forgo business opportunities that it might otherwise pursue. These factors could lead to: •slower growth rates, rising inflation or recession •disruptions in labor markets •greater market volatility •a contraction of available credit and the widening of credit spreads •U.S. dollar currency fluctuations •lower investments in a particular country or sector of the economy •large-scale sales of government debt and other debt and equity securities •reduced commercial activity among trading partners or disruptions to supply chains, or •the formation of or changes in political or economic alliances or treaties. These risks could become highly correlated or combine in unexpected ways under certain circumstances, including geopolitically challenging situations in regions such as Russia, the Middle East and China. Any of the foregoing potential outcomes could cause JPMorganChase to: •suffer losses on its market-making positions or in its investment portfolio •reduce its liquidity and capital levels •increase the allowance for credit losses or recognize higher net charge-offs •hamper its ability to deliver products and services to its clients and customers •weaken its results of operations and financial condition or credit ratings, or •become subject to prolonged litigation. Market --- ## Modified Risk: Glossary of Terms and Acronyms **Key changes:** - Updated: "JPMorgan Chase Bank, N.A.: JPMorgan Chase Bank, National Association JPMorgan Chase Foundation or the Firm's Foundation: A not-for-profit organization that makes contributions for charitable and educational purposes.J.P." - Updated: "Combined LTV ratio: The LTV ratio considering all available lien positions, as well as unused lines, related to the property." - Updated: "Macro businesses: The macro businesses include Rates, Currencies and Emerging Markets, Fixed Income Financing and Commodities in CIB's Fixed Income Markets.Managed basis: A non-GAAP presentation of Firmwide financial results that includes reclassifications to present revenue on a fully taxable-equivalent basis." - Updated: "Markets: Consists of CIB's Fixed Income Markets and Equity Markets businesses.Master netting agreement: A single agreement with a counterparty that permits multiple transactions governed by that agreement to be terminated or accelerated and settled through a single payment in a single currency in the event of a default (e.g., bankruptcy, failure to make a required payment or securities transfer or deliver collateral or margin when due).MBS: Mortgage-backed securities MD&A: Management's discussion and analysisMeasurement alternative: Measures equity securities without readily determinable fair values at cost less impairment (if any), plus or minus observable price changes from an identical or similar investment of the same issuer." - Updated: "Alt-A lending characteristics may include one or more of the following: (i) limited documentation; (ii) a high CLTV ratio; (iii) loans secured by non-owner occupied properties; or (iv) a debt-to-income ratio above normal JPMorgan Chase Bank, N.A.: JPMorgan Chase Bank, National Association JPMorgan Chase Foundation or the Firm's Foundation: A not-for-profit organization that makes contributions for charitable and educational purposes.J.P." **Prior (2025):** home price index measured at the metropolitan statistical area ("MSA") level. These MSA-level home price indices consist of actual data to the extent available and forecasted data where actual data is not available. As a result, the estimated collateral values used to calculate these ratios do not represent actual appraised loan-level collateral values; as such, the resulting LTV ratios are necessarily imprecise and should therefore be viewed as estimates. Combined LTV ratioThe LTV ratio considering all available lien positions, as well as unused lines, related to the property. Combined LTV ratios are used for junior lien home equity products. Macro businesses: the macro businesses include Rates, Currencies and Emerging Markets, Fixed Income Financing and Commodities in CIB's Fixed Income Markets.Managed basis: A non-GAAP presentation of Firmwide financial results that includes reclassifications to present revenue on a fully taxable-equivalent basis. Management also uses this financial measure at the segment level, because it believes this provides information to enable investors to understand the underlying operational performance and trends of the particular business segment and facilitates a comparison of the business segment with the performance of competitors. Markets: consists of CIB's Fixed Income Markets and Equity Markets businesses.Master netting agreement: A single agreement with a counterparty that permits multiple transactions governed by that agreement to be terminated or accelerated and settled through a single payment in a single currency in the event of a default (e.g., bankruptcy, failure to make a required payment or securities transfer or deliver collateral or margin when due).MBS: Mortgage-backed securities MD&A: Management's discussion and analysisMeasurement alternative: Measures equity securities without readily determinable fair values at cost less impairment (if any), plus or minus observable price changes from an identical or similar investment of the same issuer. Merchant Services: offers merchants payment processing capabilities, fraud and risk management, data and analytics, and other payments services. Through Merchant Services, merchants of all sizes can accept payments via credit and debit cards and payments in multiple currencies.MEV: Macroeconomic variableMoody's: Moody's Investor Services Mortgage origination channels:Retail - Borrowers who buy or refinance a home through direct contact with a mortgage banker employed by the Firm using a branch office, the Internet or by phone. Borrowers are frequently referred to a mortgage banker by a banker in a Chase branch, real estate brokers, home builders or other third parties.Correspondent - Banks, thrifts, other mortgage banks and other financial institutions that sell closed loans to the Firm.Mortgage product types: Alt-A Alt-A loans are generally higher in credit quality than subprime loans but have characteristics that would disqualify the borrower from a traditional prime loan. Alt-A lending characteristics may include one or more of the following: (i) limited documentation; (ii) a high CLTV ratio; (iii) loans secured by non-owner occupied properties; or (iv) a debt-to-income ratio above normal limits. A substantial proportion of the Firm's Alt-A loans are those where a borrower does not provide complete documentation of his or her assets or the amount or source of his or her income. Option ARMs The option ARM real estate loan product is an adjustable-rate mortgage loan that provides the borrower with the option each month to make a fully amortizing, interest-only or minimum payment. The minimum payment on an option ARM loan is based on the interest rate charged during the introductory period. This introductory rate is usually significantly below the fully indexed rate. The fully indexed rate is calculated using an index rate plus a margin. Once the introductory period ends, the contractual interest rate charged on the loan increases to the fully indexed rate and adjusts monthly to reflect movements in the index. The minimum payment is typically insufficient to cover interest accrued in the prior month, and any unpaid interest is deferred and added to the principal balance of the loan. Option ARM loans are subject to payment recast, which converts the loan to a variable-rate fully amortizing loan upon meeting specified loan balance and anniversary date triggers. Prime Prime mortgage loans are made to borrowers with good credit records who meet specific underwriting requirements, including prescriptive requirements related to income and overall debt levels. New prime mortgage borrowers provide full documentation and generally have reliable payment histories. Subprime Subprime loans are loans that, prior to mid-2008, were offered to certain customers with one or more high risk characteristics, including but not limited to: (i) unreliable or poor payment histories; (ii) a high LTV ratio of greater than 80% (without borrower-paid mortgage insurance); (iii) a high debt-to-income ratio; (iv) an occupancy type for the loan is other than the borrower's home price index measured at the metropolitan statistical area ("MSA") level. These MSA-level home price indices consist of actual data to the extent available and forecasted data where actual data is not available. As a result, the estimated collateral values used to calculate these ratios do not represent actual appraised loan-level collateral values; as such, the resulting LTV ratios are necessarily imprecise and should therefore be viewed as estimates. Combined LTV ratioThe LTV ratio considering all available lien positions, as well as unused lines, related to the property. Combined LTV ratios are used for junior lien home equity products. Macro businesses: the macro businesses include Rates, Currencies and Emerging Markets, Fixed Income Financing and Commodities in CIB's Fixed Income Markets.Managed basis: A non-GAAP presentation of Firmwide financial results that includes reclassifications to present revenue on a fully taxable-equivalent basis. Management also uses this financial measure at the segment level, because it believes this provides information to enable investors to understand the underlying operational performance and trends of the particular business segment and facilitates a comparison of the business segment with the performance of competitors. Markets: consists of CIB's Fixed Income Markets and Equity Markets businesses.Master netting agreement: A single agreement with a counterparty that permits multiple transactions governed by that agreement to be terminated or accelerated and settled through a single payment in a single currency in the event of a default (e.g., bankruptcy, failure to make a required payment or securities transfer or deliver collateral or margin when due).MBS: Mortgage-backed securities MD&A: Management's discussion and analysisMeasurement alternative: Measures equity securities without readily determinable fair values at cost less impairment (if any), plus or minus observable price changes from an identical or similar investment of the same issuer. Merchant Services: offers merchants payment processing capabilities, fraud and risk management, data and analytics, and other payments services. Through Merchant Services, merchants of all sizes can accept payments via credit and debit cards and payments in multiple currencies.MEV: Macroeconomic variableMoody's: Moody's Investor Services Mortgage origination channels: home price index measured at the metropolitan statistical area ("MSA") level. These MSA-level home price indices consist of actual data to the extent available and forecasted data where actual data is not available. As a result, the estimated collateral values used to calculate these ratios do not represent actual appraised loan-level collateral values; as such, the resulting LTV ratios are necessarily imprecise and should therefore be viewed as estimates. **Current (2026):** JPMorgan Chase Bank, N.A.: JPMorgan Chase Bank, National Association JPMorgan Chase Foundation or the Firm's Foundation: A not-for-profit organization that makes contributions for charitable and educational purposes.J.P. Morgan Securities: J.P. Morgan Securities LLCJPMSE: J.P. Morgan SELCR: Liquidity coverage ratio LDA: Loss Distribution ApproachLGD: Loss given default LIBOR: London Interbank Offered Rate LLC: Limited Liability Company LOB: Line of businessLOB CROs: Line of Business and CTC Chief Risk OfficersLTIP: Long-term incentive plan LTV "Loan-to-value": For residential real estate loans, the relationship, expressed as a percentage, between the principal amount of a loan and the appraised value of the collateral (i.e., residential real estate) securing the loan. Origination date LTV ratio: The LTV ratio at the origination date of the loan. Origination date LTV ratios are calculated based on the actual appraised values of collateral (i.e., loan-level data) at the origination date. Current estimated LTV ratio: An estimate of the LTV as of a certain date. The current estimated LTV ratios are calculated using estimated collateral values derived from a nationally recognized home price index measured at the metropolitan statistical area ("MSA") level. These MSA-level home price indices consist of actual data to the extent available and forecasted data where actual data is not available. As a result, the estimated collateral values used to calculate these ratios do not represent actual appraised loan-level collateral values; as such, the resulting LTV ratios are necessarily imprecise and should therefore be viewed as estimates. Combined LTV ratio: The LTV ratio considering all available lien positions, as well as unused lines, related to the property. Combined LTV ratios are used for junior lien home equity products. Macro businesses: The macro businesses include Rates, Currencies and Emerging Markets, Fixed Income Financing and Commodities in CIB's Fixed Income Markets.Managed basis: A non-GAAP presentation of Firmwide financial results that includes reclassifications to present revenue on a fully taxable-equivalent basis. Management also uses this financial measure at the segment level, because it believes this provides information to enable investors to understand the underlying operational performance and trends of the particular business segment and facilitates a comparison of the business segment with the performance of competitors. Markets: Consists of CIB's Fixed Income Markets and Equity Markets businesses.Master netting agreement: A single agreement with a counterparty that permits multiple transactions governed by that agreement to be terminated or accelerated and settled through a single payment in a single currency in the event of a default (e.g., bankruptcy, failure to make a required payment or securities transfer or deliver collateral or margin when due).MBS: Mortgage-backed securities MD&A: Management's discussion and analysisMeasurement alternative: Measures equity securities without readily determinable fair values at cost less impairment (if any), plus or minus observable price changes from an identical or similar investment of the same issuer. Merchant Services: Offers merchants payment processing capabilities, fraud and risk management, data and analytics, and other payments services. Through Merchant Services, merchants of all sizes can accept payments via credit and debit cards and payments in multiple currencies.MEVs "Macroeconomic variables": Refer to quantitative measures of current and forecasted macroeconomic conditions - such as the unemployment rates, gross domestic product growth rate and interest rates - used by the Firm in its models to estimate credit losses.Moody's: Moody's Investor Services Mortgage origination channels:Retail - Borrowers who buy or refinance a home through direct contact with a mortgage banker employed by the Firm using a branch office, the Internet or by phone. Borrowers are frequently referred to a mortgage banker by a banker in a Chase branch, real estate brokers, home builders or other third parties.Correspondent - Banks, thrifts, other mortgage banks and other financial institutions that sell closed loans to the Firm.Mortgage product types: Alt-A Alt-A loans are generally higher in credit quality than subprime loans but have characteristics that would disqualify the borrower from a traditional prime loan. Alt-A lending characteristics may include one or more of the following: (i) limited documentation; (ii) a high CLTV ratio; (iii) loans secured by non-owner occupied properties; or (iv) a debt-to-income ratio above normal JPMorgan Chase Bank, N.A.: JPMorgan Chase Bank, National Association JPMorgan Chase Foundation or the Firm's Foundation: A not-for-profit organization that makes contributions for charitable and educational purposes.J.P. Morgan Securities: J.P. Morgan Securities LLCJPMSE: J.P. Morgan SELCR: Liquidity coverage ratio LDA: Loss Distribution ApproachLGD: Loss given default LIBOR: London Interbank Offered Rate LLC: Limited Liability Company LOB: Line of businessLOB CROs: Line of Business and CTC Chief Risk OfficersLTIP: Long-term incentive plan LTV "Loan-to-value": For residential real estate loans, the relationship, expressed as a percentage, between the principal amount of a loan and the appraised value of the collateral (i.e., residential real estate) securing the loan. Origination date LTV ratio: The LTV ratio at the origination date of the loan. Origination date LTV ratios are calculated based on the actual appraised values of collateral (i.e., loan-level data) at the origination date. Current estimated LTV ratio: An estimate of the LTV as of a certain date. The current estimated LTV ratios are calculated using estimated collateral values derived from a nationally recognized home price index measured at the metropolitan statistical area ("MSA") level. These MSA-level home price indices consist of actual data to the extent available and forecasted data where actual data is not available. As a result, the estimated collateral values used to calculate these ratios do not represent actual appraised loan-level collateral values; as such, the resulting LTV ratios are necessarily imprecise and should therefore be viewed as estimates. Combined LTV ratio: The LTV ratio considering all available lien positions, as well as unused lines, related to the property. Combined LTV ratios are used for junior lien home equity products. Macro businesses: The macro businesses include Rates, Currencies and Emerging Markets, Fixed Income Financing and Commodities in CIB's Fixed Income Markets.Managed basis: A non-GAAP presentation of Firmwide financial results that includes reclassifications to present revenue on a fully taxable-equivalent basis. Management also uses this financial measure at the segment level, because it believes this provides information to enable investors to JPMorgan Chase Bank, N.A.: JPMorgan Chase Bank, National Association JPMorgan Chase Foundation or the Firm's Foundation: A not-for-profit organization that makes contributions for charitable and educational purposes. J.P. Morgan Securities: J.P. Morgan Securities LLC JPMSE: J.P. Morgan SE LCR: Liquidity coverage ratio LDA: Loss Distribution Approach LGD: Loss given default LIBOR: London Interbank Offered Rate LLC: Limited Liability Company LOB: Line of business LOB CROs: Line of Business and CTC Chief Risk Officers LTIP: Long-term incentive plan LTV "Loan-to-value": For residential real estate loans, the relationship, expressed as a percentage, between the principal amount of a loan and the appraised value of the collateral (i.e., residential real estate) securing the loan. Origination date LTV ratio: The LTV ratio at the origination date of the loan. Origination date LTV ratios are calculated based on the actual appraised values of collateral (i.e., loan-level data) at the origination date. Current estimated LTV ratio: An estimate of the LTV as of a certain date. The current estimated LTV ratios are calculated using estimated collateral values derived from a nationally recognized home price index measured at the metropolitan statistical area ("MSA") level. These MSA-level home price indices consist of actual data to the extent available and forecasted data where actual data is not available. As a result, the estimated collateral values used to calculate these ratios do not represent actual appraised loan-level collateral values; as such, the resulting LTV ratios are necessarily imprecise and should therefore be viewed as estimates. Combined LTV ratio: The LTV ratio considering all available lien positions, as well as unused lines, related to the property. Combined LTV ratios are used for junior lien home equity products. Macro businesses: The macro businesses include Rates, Currencies and Emerging Markets, Fixed Income Financing and Commodities in CIB's Fixed Income Markets. Managed basis: A non-GAAP presentation of Firmwide financial results that includes reclassifications to present revenue on a fully taxable-equivalent basis. Management also uses this financial measure at the segment level, because it believes this provides information to enable investors to understand the underlying operational performance and trends of the particular business segment and facilitates a comparison of the business segment with the performance of competitors. Markets: Consists of CIB's Fixed Income Markets and Equity Markets businesses.Master netting agreement: A single agreement with a counterparty that permits multiple transactions governed by that agreement to be terminated or accelerated and settled through a single payment in a single currency in the event of a default (e.g., bankruptcy, failure to make a required payment or securities transfer or deliver collateral or margin when due).MBS: Mortgage-backed securities MD&A: Management's discussion and analysisMeasurement alternative: Measures equity securities without readily determinable fair values at cost less impairment (if any), plus or minus observable price changes from an identical or similar investment of the same issuer. Merchant Services: Offers merchants payment processing capabilities, fraud and risk management, data and analytics, and other payments services. Through Merchant Services, merchants of all sizes can accept payments via credit and debit cards and payments in multiple currencies.MEVs "Macroeconomic variables": Refer to quantitative measures of current and forecasted macroeconomic conditions - such as the unemployment rates, gross domestic product growth rate and interest rates - used by the Firm in its models to estimate credit losses.Moody's: Moody's Investor Services Mortgage origination channels:Retail - Borrowers who buy or refinance a home through direct contact with a mortgage banker employed by the Firm using a branch office, the Internet or by phone. Borrowers are frequently referred to a mortgage banker by a banker in a Chase branch, real estate brokers, home builders or other third parties.Correspondent - Banks, thrifts, other mortgage banks and other financial institutions that sell closed loans to the Firm.Mortgage product types: Alt-A Alt-A loans are generally higher in credit quality than subprime loans but have characteristics that would disqualify the borrower from a traditional prime loan. Alt-A lending characteristics may include one or more of the following: (i) limited documentation; (ii) a high CLTV ratio; (iii) loans secured by non-owner occupied properties; or (iv) a debt-to-income ratio above normal understand the underlying operational performance and trends of the particular business segment and facilitates a comparison of the business segment with the performance of competitors. Markets: Consists of CIB's Fixed Income Markets and Equity Markets businesses. Master netting agreement: A single agreement with a counterparty that permits multiple transactions governed by that agreement to be terminated or accelerated and settled through a single payment in a single currency in the event of a default (e.g., bankruptcy, failure to make a required payment or securities transfer or deliver collateral or margin when due). MBS: Mortgage-backed securities MD&A: Management's discussion and analysis Measurement alternative: Measures equity securities without readily determinable fair values at cost less impairment (if any), plus or minus observable price changes from an identical or similar investment of the same issuer. Merchant Services: Offers merchants payment processing capabilities, fraud and risk management, data and analytics, and other payments services. Through Merchant Services, merchants of all sizes can accept payments via credit and debit cards and payments in multiple currencies. MEVs "Macroeconomic variables": Refer to quantitative measures of current and forecasted macroeconomic conditions - such as the unemployment rates, gross domestic product growth rate and interest rates - used by the Firm in its models to estimate credit losses. Moody's: Moody's Investor Services --- ## Modified Risk: Report of Independent Registered Public Accounting Firm **Key changes:** - Updated: "3 financial instruments; (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating audit evidence related to the aforementioned unobservable inputs; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements." - Updated: "These procedures included testing the effectiveness of controls relating to the fair value estimate of certain level 3 financial instruments, including controls over the aforementioned unobservable inputs." **Prior (2025):** equity prices, equity-to-foreign exchange and equity-to-interest rate.The principal considerations for our determination that performing procedures relating to the fair value of certain level 3 financial instruments is a critical audit matter are (i) the significant judgment and estimation by management in determining the inputs to estimate fair value, which in turn led to a high degree of auditor judgment, subjectivity, and effort in performing procedures and in evaluating audit evidence obtained related to the fair value of these financial instruments, and (ii) the audit effort involved the use of professionals with specialized skill and knowledge.Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the Firm's determination of the fair value, including controls over models, inputs, and data. These procedures also included, among others, the involvement of professionals with specialized skill and knowledge to assist in developing an independent estimate of fair value for a sample of these financial instruments and comparing management's estimate to the independently developed estimate of fair value. Developing the independent estimate involved testing the completeness and accuracy of data provided by management, developing independent inputs and, as appropriate, evaluating and utilizing management's aforementioned unobservable inputs. New York, New YorkFebruary 14, 2025We have served as the Firm's auditor since 1965. equity prices, equity-to-foreign exchange and equity-to-interest rate.The principal considerations for our determination that performing procedures relating to the fair value of certain level 3 financial instruments is a critical audit matter are (i) the significant judgment and estimation by management in determining the inputs to estimate fair value, which in turn led to a high degree of auditor judgment, subjectivity, and effort in performing procedures and in evaluating audit evidence obtained related to the fair value of these financial instruments, and (ii) the audit effort involved the use of professionals with specialized skill and knowledge.Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the Firm's determination of the fair value, including controls over models, inputs, and data. These procedures also included, among others, the involvement of professionals with specialized skill and knowledge to assist in developing an independent estimate of fair value for a sample of these financial instruments and comparing management's estimate to the independently developed estimate of fair value. Developing the independent estimate involved testing the completeness and accuracy of data provided by management, developing independent inputs and, as appropriate, evaluating and utilizing management's aforementioned unobservable inputs. New York, New YorkFebruary 14, 2025We have served as the Firm's auditor since 1965. equity prices, equity-to-foreign exchange and equity-to-interest rate. The principal considerations for our determination that performing procedures relating to the fair value of certain level 3 financial instruments is a critical audit matter are (i) the significant judgment and estimation by management in determining the inputs to estimate fair value, which in turn led to a high degree of auditor judgment, subjectivity, and effort in performing procedures and in evaluating audit evidence obtained related to the fair value of these financial instruments, and (ii) the audit effort involved the use of professionals with specialized skill and knowledge. Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the Firm's determination of the fair value, including controls over models, inputs, and data. These procedures also included, among others, the involvement of professionals with specialized skill and knowledge to assist in developing an independent estimate of fair value for a sample of these financial instruments and comparing management's estimate to the independently developed estimate of fair value. Developing the independent estimate involved testing the completeness and accuracy of data provided by management, developing independent inputs and, as appropriate, evaluating and utilizing management's aforementioned unobservable inputs. New York, New York February 14, 2025 We have served as the Firm's auditor since 1965. JPMorgan Chase & Co./2024 Form 10-K171 JPMorgan Chase & Co./2024 Form 10-K171 JPMorgan Chase & Co./2024 Form 10-K171 JPMorgan Chase & Co./2024 Form 10-K 171 **Current (2026):** 3 financial instruments; (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating audit evidence related to the aforementioned unobservable inputs; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the fair value estimate of certain level 3 financial instruments, including controls over the aforementioned unobservable inputs. These procedures also included, among others, (i) testing the completeness and accuracy of certain data provided by management and (ii) the involvement of professionals with specialized skill and knowledge to assist in evaluating the reasonableness of management's estimate by (a) developing an independent estimate of the fair value for a sample of certain level 3 financial instruments using independently developed unobservable inputs and (b) comparing the independent estimate of the fair value to management's estimate.New York, New YorkFebruary 13, 2026We have served as the Firm's auditor since 1965. 3 financial instruments; (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating audit evidence related to the aforementioned unobservable inputs; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the fair value estimate of certain level 3 financial instruments, including controls over the aforementioned unobservable inputs. These procedures also included, among others, (i) testing the completeness and accuracy of certain data provided by management and (ii) the involvement of professionals with specialized skill and knowledge to assist in evaluating the reasonableness of management's estimate by (a) developing an independent estimate of the fair value for a sample of certain level 3 financial instruments using independently developed unobservable inputs and (b) comparing the independent estimate of the fair value to management's estimate.New York, New YorkFebruary 13, 2026We have served as the Firm's auditor since 1965. 3 financial instruments; (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating audit evidence related to the aforementioned unobservable inputs; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge. Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the fair value estimate of certain level 3 financial instruments, including controls over the aforementioned unobservable inputs. These procedures also included, among others, (i) testing the completeness and accuracy of certain data provided by management and (ii) the involvement of professionals with specialized skill and knowledge to assist in evaluating the reasonableness of management's estimate by (a) developing an independent estimate of the fair value for a sample of certain level 3 financial instruments using independently developed unobservable inputs and (b) comparing the independent estimate of the fair value to management's estimate. New York, New York February 13, 2026 We have served as the Firm's auditor since 1965. 164JPMorgan Chase & Co./2025 Form 10-K 164JPMorgan Chase & Co./2025 Form 10-K 164JPMorgan Chase & Co./2025 Form 10-K 164 JPMorgan Chase & Co./2025 Form 10-K --- ## Modified Risk: Selected capital and other metrics **Key changes:** - Updated: "•CET1 capital was $288.5 billion, and the Standardized and Advanced CET1 ratios were 14.6% and 14.1%, respectively." **Prior (2025):** •CET1 capital was $275.5 billion, and the Standardized and Advanced CET1 ratios were 15.7% and 15.8%, respectively. •SLR was 6.1%. •TBVPS grew 13.0%, ending 2024 at $97.30. •As of December 31, 2024, the Firm had eligible end-of-period High Quality Liquid Assets ("HQLA") of approximately $834 billion and unencumbered marketable securities with a fair value of approximately $594 billion, resulting in approximately $1.4 trillion of liquidity sources. Refer to Liquidity Risk Management on pages 108-115 for additional information. Refer to Consolidated Results of Operations and Consolidated Balance Sheets Analysis on pages 59-62 and pages 63-65, respectively, for a further discussion of the Firm's results, including the provision for credit losses, and Note 34 for additional information on the First Republic acquisition. Pre-provision profit, ROTCE, TCE, TBVPS, NII and NIR excluding Markets, and total net revenue on a managed basis are non-GAAP financial measures. Refer to Explanation and Reconciliation of the Firm's Use of Non-GAAP Financial Measures on pages 67-69 for a further discussion of each of these measures. JPMorgan Chase & Co./2024 Form 10-K55 JPMorgan Chase & Co./2024 Form 10-K55 JPMorgan Chase & Co./2024 Form 10-K55 JPMorgan Chase & Co./2024 Form 10-K 55 Business segment highlightsSelected business metrics for each of the Firm's lines of business ("LOB") are presented below for the full year of 2024.CCBROE 32%•Average deposits down 6%; client investment assets up 14% •Average loans up 9%; Card Services net charge-off rate of 3.34% •Debit and credit card sales volume(a) up 8%•Active mobile customers(b) up 7%CIB(c)ROE 18%•Investment Banking fees up 37%; #1 ranking for Global Investment Banking fees with 9.3% wallet share for the year•Markets revenue up 7%, with Fixed Income Markets up 5% and Equity Markets up 13%•Average Banking & Payments loans up 2%; average client deposits(d) up 5%AWMROE 34%•Assets under management ("AUM") of $4.0 trillion, up 18%•Average loans up 3%; average deposits up 9% including the transfer of First Republic deposits to AWM in 4Q23(e)(a) Excludes Commercial Card.(b) Users of all mobile platforms who have logged in within the past 90 days.(c) Reflects the reorganization of the Firm's business segments. Refer to Business Segment & Corporate Results on pages 70-90 for additional information.(d) Represents client deposits and other third-party liabilities pertaining to the Payments and Securities Services businesses.(e) In the fourth quarter of 2023, CCB transferred certain deposits associated with First Republic to AWM and CIB. Refer to the Business Segment & Corporate Results on pages 70-90 for a detailed discussion of results by business segment.Credit provided and capital raisedJPMorganChase continues to support consumers, businesses and communities around the globe. The Firm provided new and renewed credit and raised capital for wholesale and consumer clients during 2024, consisting of approximately:$2.8 trillionTotal credit provided and capital raised (including loans and commitments)$250billionCredit for consumers$40billionCredit for U.S. small businesses$2.4 trillionCredit and capital for corporations and non-U.S. government entities(a)$65 billionCredit and capital for nonprofit and U.S. government entities(b)(a) Includes Individuals and Individual Entities primarily consisting of Global Private Bank clients within AWM.(b) Includes states, municipalities, hospitals and universities. Business segment highlightsSelected business metrics for each of the Firm's lines of business ("LOB") are presented below for the full year of 2024.CCBROE 32%•Average deposits down 6%; client investment assets up 14% •Average loans up 9%; Card Services net charge-off rate of 3.34% •Debit and credit card sales volume(a) up 8%•Active mobile customers(b) up 7%CIB(c)ROE 18%•Investment Banking fees up 37%; #1 ranking for Global Investment Banking fees with 9.3% wallet share for the year•Markets revenue up 7%, with Fixed Income Markets up 5% and Equity Markets up 13%•Average Banking & Payments loans up 2%; average client deposits(d) up 5%AWMROE 34%•Assets under management ("AUM") of $4.0 trillion, up 18%•Average loans up 3%; average deposits up 9% including the transfer of First Republic deposits to AWM in 4Q23(e)(a) Excludes Commercial Card.(b) Users of all mobile platforms who have logged in within the past 90 days.(c) Reflects the reorganization of the Firm's business segments. Refer to Business Segment & Corporate Results on pages 70-90 for additional information.(d) Represents client deposits and other third-party liabilities pertaining to the Payments and Securities Services businesses.(e) In the fourth quarter of 2023, CCB transferred certain deposits associated with First Republic to AWM and CIB. Refer to the Business Segment & Corporate Results on pages 70-90 for a detailed discussion of results by business segment. **Current (2026):** •CET1 capital was $288.5 billion, and the Standardized and Advanced CET1 ratios were 14.6% and 14.1%, respectively. •SLR was 5.8%. •TBVPS grew 10.5%, ending 2025 at $107.56. •As of December 31, 2025, the Firm had eligible end-of-period High Quality Liquid Assets ("HQLA") of approximately $915 billion and unencumbered marketable securities with a fair value of approximately $548 billion, resulting in approximately $1.5 trillion of liquidity sources. Refer to Capital Risk Management and Liquidity Risk Management on pages 89-99 and pages 100-107, respectively, for additional information. 48JPMorgan Chase & Co./2025 Form 10-K 48JPMorgan Chase & Co./2025 Form 10-K 48JPMorgan Chase & Co./2025 Form 10-K 48 JPMorgan Chase & Co./2025 Form 10-K Business segment highlightsSelected business metrics for each of the Firm's lines of business ("LOB") are presented below for the full year of 2025.CCBROE 32%•Average deposits down 1%; client investment assets up 17% •Average loans up 1%; Card Services net charge-off rate of 3.31% •Debit and credit card sales volume(a) up 7%•Active mobile customers(b) up 7%CIBROE 18%•Investment Banking fees up 7%; #1 ranking for Global Investment Banking fees with 8.4% wallet share for the year•Markets revenue up 19%, with Fixed Income Markets up 12% and Equity Markets up 33%•Average Banking & Payments loans(c) flat; average client deposits(d) up 14%AWMROE 40%•Assets under management ("AUM") of $4.8 trillion, up 18%•Average loans up 8%; average deposits up 4%(a)Excludes Commercial Card.(b)Users of all mobile platforms who have logged in within the past 90 days.(c)On January 1, 2025, $5.6 billion of loans were realigned from Global Corporate Banking to Fixed Income Markets.(d)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 62-82 for a detailed discussion of results by business segment.Credit provided and capital raisedJPMorganChase 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 2025, consisting of approximately:$3.3 trillionTotal credit provided and capital raised (including loans and commitments)$280billionCredit for consumers$33billionCredit for U.S. small businesses$2.9 trillionCredit and capital for corporations and non-U.S. government entities(a)$76 billionCredit and capital for nonprofit and U.S. government entities(b)(a)Includes Individuals and Individual Entities primarily consisting of Global Private Bank clients within AWM.(b)Includes states, municipalities, hospitals and universities. Business segment highlightsSelected business metrics for each of the Firm's lines of business ("LOB") are presented below for the full year of 2025.CCBROE 32%•Average deposits down 1%; client investment assets up 17% •Average loans up 1%; Card Services net charge-off rate of 3.31% •Debit and credit card sales volume(a) up 7%•Active mobile customers(b) up 7%CIBROE 18%•Investment Banking fees up 7%; #1 ranking for Global Investment Banking fees with 8.4% wallet share for the year•Markets revenue up 19%, with Fixed Income Markets up 12% and Equity Markets up 33%•Average Banking & Payments loans(c) flat; average client deposits(d) up 14%AWMROE 40%•Assets under management ("AUM") of $4.8 trillion, up 18%•Average loans up 8%; average deposits up 4%(a)Excludes Commercial Card.(b)Users of all mobile platforms who have logged in within the past 90 days.(c)On January 1, 2025, $5.6 billion of loans were realigned from Global Corporate Banking to Fixed Income Markets.(d)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 62-82 for a detailed discussion of results by business segment. --- ## Modified Risk: Total Markets & Securities **Key changes:** - Updated: "Services (a)Consists primarily of centrally-managed credit valuation adjustments ("CVA"), funding valuation adjustments ("FVA") on derivatives, other valuation adjustments, and certain components of fair value option elected liabilities, which are primarily reported in principal transactions revenue." - Updated: "JPMorgan Chase & Co./2025 Form 10-K69 JPMorgan Chase & Co./2025 Form 10-K69 JPMorgan Chase & Co./2025 Form 10-K69 JPMorgan Chase & Co./2025 Form 10-K 69 Banking & Payments Revenue by Client Coverage Segment: (a)Global Corporate Banking & Global Investment Banking provides banking products and services generally to large corporations, financial institutions and merchants." **Prior (2025):** Services (a)In the fourth quarter of 2024, certain net funding costs that were previously allocated to Fixed Income Markets were reclassified to Equity Markets. Prior-period amounts have been revised to conform with the current presentation. (b)Consists primarily of centrally-managed credit valuation adjustments ("CVA"), funding valuation adjustments ("FVA") on derivatives, other valuation adjustments, and certain components of fair value option elected liabilities, which are primarily reported in principal transactions revenue. Results are presented net of associated hedging activities and net of CVA and FVA amounts allocated to Fixed Income Markets and Equity Markets. Refer to Notes 2, 3 and 24 for additional information. JPMorgan Chase & Co./2024 Form 10-K77 JPMorgan Chase & Co./2024 Form 10-K77 JPMorgan Chase & Co./2024 Form 10-K77 JPMorgan Chase & Co./2024 Form 10-K 77 Banking & Payments Revenue by Client Coverage Segment: (a)Global Corporate Banking & Global Investment Banking provides banking products and services generally to large corporations, financial institutions and merchants. Commercial Banking provides banking products and services generally to middle market clients, including start-ups, small and mid-sized companies, local governments, municipalities, and nonprofits, as well as to commercial real estate clients. Other includes amounts related to credit protection purchased against certain retained loans and lending-related commitments in Lending, the impact of equity investments in Payments and revenues not aligned with a primary client coverage segment.(a)Global Banking is a client coverage view within the Banking & Payments business and is comprised of the Global Corporate Banking, Global Investment Banking and Commercial Banking client coverage segments. **Current (2026):** Services (a)Consists primarily of centrally-managed credit valuation adjustments ("CVA"), funding valuation adjustments ("FVA") on derivatives, other valuation adjustments, and certain components of fair value option elected liabilities, which are primarily reported in principal transactions revenue. Results are presented net of associated hedging activities and net of CVA and FVA amounts allocated to Fixed Income Markets and Equity Markets. Refer to Notes 2, 3 and 24 for additional information. JPMorgan Chase & Co./2025 Form 10-K69 JPMorgan Chase & Co./2025 Form 10-K69 JPMorgan Chase & Co./2025 Form 10-K69 JPMorgan Chase & Co./2025 Form 10-K 69 Banking & Payments Revenue by Client Coverage Segment: (a)Global Corporate Banking & Global Investment Banking provides banking products and services generally to large corporations, financial institutions and merchants. Commercial Banking provides banking products and services to clients, including start-ups, small and mid-sized companies, local governments, municipalities, and nonprofits, as well as commercial real estate clients. (a)Global Banking is a client coverage view within the Banking & Payments business and is comprised of the Global Corporate Banking, Global Investment Banking and Commercial Banking client coverage segments. --- ## Modified Risk: Board oversight **Key changes:** - Updated: "The JPMorgan Chase Bank, N.A." - Updated: "The Board Risk Committee's responsibilities include approval of applicable primary risk policies and review of certain associated frameworks, analysis and reporting established by management." - Updated: "The Board Risk Committee's responsibilities include approval of applicable primary risk policies and review of certain associated frameworks, analysis and reporting established by management." **Prior (2025):** The Firm's Board of Directors actively oversees the business and affairs of the Firm. This includes monitoring the Firm's financial performance and condition and reviewing the strategic objectives and plans of the Firm. The Board carries out a significant portion of its oversight responsibilities through its principal standing committees, each of which consists solely of independent members of the Board. The Board Risk Committee is the principal committee that oversees risk matters. The Audit Committee oversees the control environment, and the Compensation & Management Development Committee oversees compensation and other management-related matters. Each committee of the Board oversees reputation risks, conduct risks, and environmental, social and governance ("ESG") matters within its scope of responsibility.The JPMorgan Chase Bank, N.A. Board of Directors is responsible for the oversight of management of the bank, which it discharges both acting directly and through the principal standing committees of the Firm's Board of Directors. Risk and control oversight on behalf of JPMorgan Chase Bank N.A. is primarily the responsibility of the Board Risk Committee and the Audit Committee, respectively, and, with respect to compensation and other management-related matters, the Compensation & Management Development Committee.The Board Risk Committee assists the Board in its oversight of management's responsibility to implement a global risk management framework reasonably designed to identify, assess and manage the Firm's risks. The Board Risk Committee's responsibilities include approval of applicable primary risk policies and review of certain associated frameworks, analysis and reporting established by matters. Each committee of the Board oversees reputation risks, conduct risks, and environmental, social and governance ("ESG") matters within its scope of responsibility. The JPMorgan Chase Bank, N.A. Board of Directors is responsible for the oversight of management of the bank, which it discharges both acting directly and through the principal standing committees of the Firm's Board of Directors. Risk and control oversight on behalf of JPMorgan Chase Bank N.A. is primarily the responsibility of the Board Risk Committee and the Audit Committee, respectively, and, with respect to compensation and other management-related matters, the Compensation & Management Development Committee. The Board Risk Committee assists the Board in its oversight of management's responsibility to implement a global risk management framework reasonably designed to identify, assess and manage the Firm's risks. The Board Risk Committee's responsibilities include approval of applicable primary risk policies and review of certain associated frameworks, analysis and reporting established by JPMorgan Chase & Co./2024 Form 10-K93 JPMorgan Chase & Co./2024 Form 10-K93 JPMorgan Chase & Co./2024 Form 10-K93 JPMorgan Chase & Co./2024 Form 10-K 93 **Current (2026):** The Firm's Board of Directors actively oversees the business and affairs of the Firm. This includes monitoring the Firm's financial performance and condition and reviewing the strategic objectives and plans of the Firm. The Board carries out a significant portion of its oversight responsibilities through its principal standing committees, each of which consists solely of independent members of the Board. The JPMorgan Chase Bank, N.A. Board of Directors is responsible for the oversight of management of the bank, which it discharges both acting directly and through the principal standing committees of the Firm's Board of Directors. Risk and control oversight on behalf of JPMorgan Chase Bank N.A. is primarily the responsibility of the Board Risk Committee and the Audit Committee, respectively, and, with respect to compensation and other management-related matters, the Compensation & Management Development Committee.The Board Risk Committee assists the Board in its oversight of management's responsibility to implement a global risk management framework reasonably designed to identify, assess and manage the Firm's risks. The Board Risk Committee's responsibilities include approval of applicable primary risk policies and review of certain associated frameworks, analysis and reporting established by management. Breaches in risk appetite and parameters, issues that may have a material adverse impact on the Firm, including capital and liquidity issues, and other significant risk-related matters are escalated to the Board Risk Committee, as appropriate.The Audit Committee assists the Board in its oversight of management's responsibilities to ensure that there is an effective system of controls reasonably designed to safeguard the Firm's assets and income, ensure the integrity of the Firm's financial statements, and maintain compliance with the Firm's ethical standards, policies, plans and procedures, and with laws and Audit Committee, respectively, and, with respect to compensation and other management-related matters, the Compensation & Management Development Committee. The Board Risk Committee assists the Board in its oversight of management's responsibility to implement a global risk management framework reasonably designed to identify, assess and manage the Firm's risks. The Board Risk Committee's responsibilities include approval of applicable primary risk policies and review of certain associated frameworks, analysis and reporting established by management. Breaches in risk appetite and parameters, issues that may have a material adverse impact on the Firm, including capital and liquidity issues, and other significant risk-related matters are escalated to the Board Risk Committee, as appropriate. The Audit Committee assists the Board in its oversight of management's responsibilities to ensure that there is an effective system of controls reasonably designed to safeguard the Firm's assets and income, ensure the integrity of the Firm's financial statements, and maintain compliance with the Firm's ethical standards, policies, plans and procedures, and with laws and JPMorgan Chase & Co./2025 Form 10-K85 JPMorgan Chase & Co./2025 Form 10-K85 JPMorgan Chase & Co./2025 Form 10-K85 JPMorgan Chase & Co./2025 Form 10-K 85 --- ## Modified Risk: December 31, 2025(in millions)Fair value hierarchyTotal fair valueLevel 1Level 2Level 3Loans$ - $618 $529 $1,147 Other assets(a) - 8 863 871 Total assets measured at fair value on a nonrecurring basis$ - $626 $1,392 $2,018 Accounts payable and other liabilities - - 5 5 Total liabilities measured at fair value on a nonrecurring basis$ - $ - $5 $5 **Key changes:** - Updated: "Level 1 Level 2 Level 3 Other assets(a) December 31, 2024(in millions)Fair value hierarchyTotal fair valueLevel 1Level 2Level 3Loans$ - $738 $694 $1,432 Other assets - 9 1,048 1,057 Total assets measured at fair value on a nonrecurring basis$ - $747 $1,742 $2,489 Accounts payable and other liabilities - - - - Total liabilities measured at fair value on a nonrecurring basis$ - $ - $ - $ - Level 1 Level 2 Level 3 Accounts payable and other liabilities (a) Included equity securities without readily determinable fair values that were adjusted based on observable price changes in orderly transactions from an identical or similar investment of the same issuer (measurement alternative)." **Prior (2025):** The following tables present the assets held as of December 31, 2024 and 2023, for which nonrecurring fair value adjustments were recorded during the years ended December 31, 2024 and 2023, by major product category and fair value hierarchy. There were no liabilities measured at fair value on a nonrecurring basis at both December 31, 2024 and 2023. December 31, 2024(in millions)Fair value hierarchyTotal fair valueLevel 1Level 2Level 3Loans$ - $738 $694 $1,432 Other assets(a) - 9 1,048 1,057 Total assets measured at fair value on a nonrecurring basis$ - $747 $1,742 $2,489 Level 1 Level 2 Level 3 Other assets(a) December 31, 2023(in millions)Fair value hierarchyTotal fair valueLevel 1Level 2Level 3Loans$ - $599 $1,156 $1,755 Other assets - 52 1,334 1,386 Total assets measured at fair value on a nonrecurring basis$ - $651 $2,490 $3,141 Level 1 Level 2 Level 3 (a) Included equity securities without readily determinable fair values that were adjusted based on observable price changes in orderly transactions from an identical or similar investment of the same issuer (measurement alternative). Of the $1.0 billion in level 3 assets measured at fair value on a nonrecurring basis as of December 31, 2024, $668 million related to equity securities adjusted based on the measurement alternative. These equity securities are classified as level 3 due to the infrequency of the observable prices and/or the restrictions on the shares. Also, included impairments on certain equity method investments. **Current (2026):** Level 1 Level 2 Level 3 Other assets(a) December 31, 2024(in millions)Fair value hierarchyTotal fair valueLevel 1Level 2Level 3Loans$ - $738 $694 $1,432 Other assets - 9 1,048 1,057 Total assets measured at fair value on a nonrecurring basis$ - $747 $1,742 $2,489 Accounts payable and other liabilities - - - - Total liabilities measured at fair value on a nonrecurring basis$ - $ - $ - $ - Level 1 Level 2 Level 3 Accounts payable and other liabilities (a) Included equity securities without readily determinable fair values that were adjusted based on observable price changes in orderly transactions from an identical or similar investment of the same issuer (measurement alternative). Of the $863 million in level 3 assets measured at fair value on a nonrecurring basis as of December 31, 2025, $721 million related to equity securities adjusted based on the measurement alternative. These equity securities are classified as level 3 due to the infrequency of the observable prices and/or the restrictions on the shares. Also, included impairments on certain equity method investments. --- ## Modified Risk: Net interest income after provision for credit losses **Key changes:** - Updated: "(a)Includes the accretion of the purchase discount on certain acquired loans and investment securities associated with First Republic." - Updated: "(c)Includes interest earned on brokerage-related held-for-investment customer receivables, which are classified in accrued interest and accounts receivable, and all other interest-earning assets, which are classified in other assets on the Consolidated balance sheets." **Prior (2025):** (a)Represents securities that are tax-exempt for U.S. federal income tax purposes. (b)Includes interest earned on brokerage-related held-for-investment customer receivables, which are classified in accrued interest and accounts receivable, and all other interest-earning assets, which are classified in other assets on the Consolidated balance sheets. (c)All other interest-bearing liabilities includes interest expense on brokerage-related customer payables. (d)Includes the accretion of the purchase discount on certain acquired loans and investment securities associated with First Republic. Refer to Note 34 for additional information. (d) JPMorgan Chase & Co./2024 Form 10-K229 JPMorgan Chase & Co./2024 Form 10-K229 JPMorgan Chase & Co./2024 Form 10-K229 JPMorgan Chase & Co./2024 Form 10-K 229 **Current (2026):** (a)Includes the accretion of the purchase discount on certain acquired loans and investment securities associated with First Republic. Refer to Note 34 for additional information. (b)Represents securities that are tax-exempt for U.S. federal income tax purposes. (c)Includes interest earned on brokerage-related held-for-investment customer receivables, which are classified in accrued interest and accounts receivable, and all other interest-earning assets, which are classified in other assets on the Consolidated balance sheets. (d)All other interest-bearing liabilities includes interest expense on brokerage-related customer payables. 222JPMorgan Chase & Co./2025 Form 10-K 222JPMorgan Chase & Co./2025 Form 10-K 222JPMorgan Chase & Co./2025 Form 10-K 222 JPMorgan Chase & Co./2025 Form 10-K --- ## Modified Risk: JPMorganChase's business and operations in certain countries could be adversely affected by local economic, political, regulatory and social factors. **Key changes:** - Updated: "Some of the countries where JPMorganChase conducts business have economies or markets that are less developed and more volatile or have political, legal and regulatory regimes that are unpredictable or less established." - Updated: "These types of government actions can negatively affect JPMorganChase's operations in the relevant country, either directly or by suppressing the local business activities of clients." **Prior (2025):** Some of the countries in which JPMorganChase conducts business have economies or markets that are less developed and more volatile or may have political, legal and regulatory regimes that are less established or predictable than other countries in which JPMorganChase operates. In addition, in some jurisdictions in which JPMorganChase conducts business, the local economy and business activities are subject to substantial government influence or control. Some of these countries have in the past experienced economic disruptions, including: •extreme currency fluctuations •high inflation •low or negative growth •defaults or reduced ability to service sovereign debt and •increased fraud or other misrepresentation of value. The governments in these countries have sometimes reacted to these developments by imposing restrictive policies that adversely affect the local and regional business environment, such as: •price, capital or exchange controls, including imposition of punitive transfer and convertibility restrictions or forced currency exchange •expropriation or nationalization of assets, including client assets, or confiscation of property, including intellectual property, and •changes in laws, rules and regulations. The impact of these actions could be accentuated in trading markets that are smaller, less liquid and more volatile than more-developed markets. These types of government actions can negatively affect JPMorganChase's operations in the relevant country, either directly or by suppressing the business activities of local clients or multi-national clients that conduct business in the jurisdiction. In addition, emerging markets countries, as well as more developed countries, have been susceptible to 35 35 35 35 Part I Part I unfavorable social developments arising from poor economic conditions or governmental actions, including: •widespread demonstrations, civil unrest or general strikes •crime and corruption•security and personal safety issues•an outbreak or escalation of hostilities, or other geopolitical instabilities•overthrow of incumbent governments•terrorist attacks, and •other forms of internal discord. These economic, political, regulatory and social developments have in the past resulted in, and in the future could lead to, conditions that can adversely affect JPMorganChase's operations in those countries and impair the revenues, growth and profitability of those operations. In addition, any of these events or circumstances in one country can affect JPMorganChase's operations and investments in another country or countries, including in the U.S.PeopleJPMorganChase's ability to attract and retain qualified employees is critical to its success.JPMorganChase's employees are its most important resource, and in many areas of the financial services industry, competition for qualified personnel is intense. JPMorganChase endeavors to attract talented new employees from a variety of backgrounds and retain, develop and motivate its existing employees. JPMorganChase's efforts to hire and retain talented employees could be hindered by factors such as:•the emerging need for more-skilled workers in an evolving labor and workplace environment, including due to changes in technology•targeted recruitment of JPMorganChase employees by competitors, and•modifications to or discontinuation of JPMorganChase's hybrid work models.JPMorganChase's performance and competitive position could be materially and adversely affected if it is unable to attract or retain qualified employees for its workforce or to devise and execute effective succession planning for key leadership roles, such as the Chief Executive Officer, members of the Operating Committee and other senior leaders.In addition, advances in technology, such as automation and artificial intelligence, may lead to workforce displacement. This could require JPMorganChase to invest in additional employee training, manage impacts on morale and retention, and compete for employment candidates who possess more advanced technological skills, all of which could have a negative impact on JPMorganChase's business and operations. Unfavorable changes in immigration or travel policies could adversely affect JPMorganChase's businesses and operations.JPMorganChase relies on the skills, knowledge and expertise of employees located throughout the world. Changes in immigration or travel policies in the U.S. and other countries that unduly restrict or otherwise make it more difficult for employees or their family members to work in, or travel to or transfer between, jurisdictions in which JPMorganChase has operations or conducts its business could inhibit JPMorganChase's ability to attract and retain qualified employees, and thereby dilute the quality of its workforce, or could prompt JPMorganChase to make structural changes to its worldwide or regional operating models that cause its operations to be less efficient or more costly.LegalJPMorganChase faces significant legal risks from litigation and formal and informal regulatory and government investigations.JPMorganChase is named as a defendant or is otherwise involved in many legal proceedings, including class actions, derivative actions and other litigation or disputes with third parties, as well as criminal proceedings. Actions currently pending against JPMorganChase may result in judgments, settlements, fines, penalties or other sanctions adverse to JPMorganChase. Any of these matters could materially and adversely affect JPMorganChase's business, financial condition or results of operations, or cause serious reputational harm. As a participant in the financial services industry, it is likely that JPMorganChase will continue to experience a high level of litigation and regulatory and government investigations related to its businesses and operations.Regulators and other government agencies conduct examinations of JPMorganChase and its subsidiaries both on a routine basis and in targeted exams, and JPMorganChase's businesses and operations are subject to heightened regulatory oversight. This heightened regulatory scrutiny, or the results of such an investigation or examination, may lead to additional regulatory investigations or enforcement actions. There is no assurance that those actions will not result in resolutions or other enforcement actions against JPMorganChase. Furthermore, a single event involving a potential violation of law or regulation may give rise to numerous and overlapping investigations and proceedings, either by multiple federal, state or local agencies and officials in the U.S. or, in some instances, regulators and other governmental officials in non-U.S. jurisdictions. unfavorable social developments arising from poor economic conditions or governmental actions, including: •widespread demonstrations, civil unrest or general strikes •crime and corruption•security and personal safety issues•an outbreak or escalation of hostilities, or other geopolitical instabilities•overthrow of incumbent governments•terrorist attacks, and •other forms of internal discord. These economic, political, regulatory and social developments have in the past resulted in, and in the future could lead to, conditions that can adversely affect JPMorganChase's operations in those countries and impair the revenues, growth and profitability of those operations. In addition, any of these events or circumstances in one country can affect JPMorganChase's operations and investments in another country or countries, including in the U.S.PeopleJPMorganChase's ability to attract and retain qualified employees is critical to its success.JPMorganChase's employees are its most important resource, and in many areas of the financial services industry, competition for qualified personnel is intense. JPMorganChase endeavors to attract talented new employees from a variety of backgrounds and retain, develop and motivate its existing employees. JPMorganChase's efforts to hire and retain talented employees could be hindered by factors such as:•the emerging need for more-skilled workers in an evolving labor and workplace environment, including due to changes in technology•targeted recruitment of JPMorganChase employees by competitors, and•modifications to or discontinuation of JPMorganChase's hybrid work models.JPMorganChase's performance and competitive position could be materially and adversely affected if it is unable to attract or retain qualified employees for its workforce or to devise and execute effective succession planning for key leadership roles, such as the Chief Executive Officer, members of the Operating Committee and other senior leaders.In addition, advances in technology, such as automation and artificial intelligence, may lead to workforce displacement. This could require JPMorganChase to invest in additional employee training, manage impacts on morale and retention, and compete for employment candidates who possess more advanced technological skills, all of which could unfavorable social developments arising from poor economic conditions or governmental actions, including: •widespread demonstrations, civil unrest or general strikes •crime and corruption •security and personal safety issues •an outbreak or escalation of hostilities, or other geopolitical instabilities •overthrow of incumbent governments •terrorist attacks, and •other forms of internal discord. These economic, political, regulatory and social developments have in the past resulted in, and in the future could lead to, conditions that can adversely affect JPMorganChase's operations in those countries and impair the revenues, growth and profitability of those operations. In addition, any of these events or circumstances in one country can affect JPMorganChase's operations and investments in another country or countries, including in the U.S. People **Current (2026):** Some of the countries where JPMorganChase conducts business have economies or markets that are less developed and more volatile or have political, legal and regulatory regimes that are unpredictable or less established. In addition, in some places where JPMorganChase conducts business, the local economy and business activities are subject to substantial government influence or control. Some of these 30 30 30 30 countries have in the past experienced economic disruptions, including:•extreme currency fluctuations•high inflation•low or negative growth•defaults or reduced ability to service sovereign debt, and•increased fraud or other misrepresentation of value.The governments in these countries have sometimes reacted to these developments by imposing restrictive policies that adversely affect the local business environment, such as:•price, capital or exchange controls•confiscation, expropriation, nationalization or blocking access to property, including client assets and intellectual property, and•changes in applicable law.The impact of these actions could be accentuated in trading markets that are smaller, less liquid and more volatile than more-developed markets. These types of government actions can negatively affect JPMorganChase's operations in the relevant country, either directly or by suppressing the local business activities of clients.In addition, emerging markets countries, as well as more developed countries, have been susceptible to unfavorable social developments arising from poor economic conditions or governmental actions, including:•widespread demonstrations, civil unrest or general strikes•crime and corruption•security and personal safety issues•outbreaks or escalations of hostilities, or other geopolitical instabilities•overthrow of incumbent governments•terrorist attacks, and•other forms of internal discord.These types of developments have in the past resulted in, and in the future could lead to, conditions that could adversely affect JPMorganChase's operations in the affected countries and impair the revenues, growth and profitability of those operations. In addition, any of these events or circumstances in one country could affect JPMorganChase's operations and investments in another country, including in the U.S.PeopleVarious factors could impact JPMorganChase's workforce.JPMorganChase's efforts to hire and retain talented employees could be hindered by factors such as:•the emerging need for more-skilled workers in an evolving workplace environment, and •targeted recruitment of JPMorganChase employees by competitors.JPMorganChase's performance and competitive position could be materially and adversely affected if it is unable to attract or retain qualified employees or to effectively manage succession planning for key leadership roles, such as the Chief Executive Officer, members of the Operating Committee and other senior leaders. In addition, restrictive immigration or travel policies in the U.S. and other countries could inhibit JPMorganChase's ability to attract and retain qualified employees, or necessitate adjustments to operating models that could reduce operational efficiency or increase costs.Advances in technology, such as automation, AI and data science, could lead to workforce displacement. This could require JPMorganChase to invest in additional employee training, manage impacts on morale and retention, and compete for employment candidates who possess more advanced technological skills, all of which could have a negative impact on JPMorganChase's business and operations. countries have in the past experienced economic disruptions, including:•extreme currency fluctuations•high inflation•low or negative growth•defaults or reduced ability to service sovereign debt, and•increased fraud or other misrepresentation of value.The governments in these countries have sometimes reacted to these developments by imposing restrictive policies that adversely affect the local business environment, such as:•price, capital or exchange controls•confiscation, expropriation, nationalization or blocking access to property, including client assets and intellectual property, and•changes in applicable law.The impact of these actions could be accentuated in trading markets that are smaller, less liquid and more volatile than more-developed markets. These types of government actions can negatively affect JPMorganChase's operations in the relevant country, either directly or by suppressing the local business activities of clients.In addition, emerging markets countries, as well as more developed countries, have been susceptible to unfavorable social developments arising from poor economic conditions or governmental actions, including:•widespread demonstrations, civil unrest or general strikes•crime and corruption•security and personal safety issues•outbreaks or escalations of hostilities, or other geopolitical instabilities•overthrow of incumbent governments•terrorist attacks, and•other forms of internal discord.These types of developments have in the past resulted in, and in the future could lead to, conditions that could adversely affect JPMorganChase's operations in the affected countries and impair the revenues, growth and profitability of those operations. In addition, any of these events or circumstances in one country could affect JPMorganChase's operations and investments in another country, including in the U.S. countries have in the past experienced economic disruptions, including: •extreme currency fluctuations •high inflation •low or negative growth •defaults or reduced ability to service sovereign debt, and •increased fraud or other misrepresentation of value. The governments in these countries have sometimes reacted to these developments by imposing restrictive policies that adversely affect the local business environment, such as: •price, capital or exchange controls •confiscation, expropriation, nationalization or blocking access to property, including client assets and intellectual property, and •changes in applicable law. The impact of these actions could be accentuated in trading markets that are smaller, less liquid and more volatile than more-developed markets. These types of government actions can negatively affect JPMorganChase's operations in the relevant country, either directly or by suppressing the local business activities of clients. In addition, emerging markets countries, as well as more developed countries, have been susceptible to unfavorable social developments arising from poor economic conditions or governmental actions, including: •widespread demonstrations, civil unrest or general strikes •crime and corruption •security and personal safety issues •outbreaks or escalations of hostilities, or other geopolitical instabilities •overthrow of incumbent governments •terrorist attacks, and •other forms of internal discord. These types of developments have in the past resulted in, and in the future could lead to, conditions that could adversely affect JPMorganChase's operations in the affected countries and impair the revenues, growth and profitability of those operations. In addition, any of these events or circumstances in one country could affect JPMorganChase's operations and investments in another country, including in the U.S. PeopleVarious factors could impact JPMorganChase's workforce.JPMorganChase's efforts to hire and retain talented employees could be hindered by factors such as:•the emerging need for more-skilled workers in an evolving workplace environment, and •targeted recruitment of JPMorganChase employees by competitors.JPMorganChase's performance and competitive position could be materially and adversely affected if it is unable to attract or retain qualified employees or to effectively manage succession planning for key leadership roles, such as the Chief Executive Officer, members of the Operating Committee and other senior leaders. In addition, restrictive immigration or travel policies in the U.S. and other countries could inhibit JPMorganChase's ability to attract and retain qualified employees, or necessitate adjustments to operating models that could reduce operational efficiency or increase costs.Advances in technology, such as automation, AI and data science, could lead to workforce displacement. This could require JPMorganChase to invest in additional employee training, manage impacts on morale and retention, and compete for employment candidates who possess more advanced technological skills, all of which could have a negative impact on JPMorganChase's business and operations. People --- ## Modified Risk: JPMorgan Chase Bank, N.A.: **Key changes:** - Updated: "(a)Represents cash on deposit at central banks, including the Federal Reserve Banks." - Updated: "The Firm's average LCR for the three months ended December 31, 2025 decreased, compared with the three months ended December 31, 2024, primarily driven by repurchases of and dividends on common stock, predominantly offset by dividend payments from JPMorgan Chase Bank, N.A." **Prior (2025):** (a)Represents cash on deposit at central banks, primarily the Federal Reserve Banks. (b)Eligible HQLA securities may be reported in securities borrowed or purchased under resale agreements, trading assets, or investment securities on the Firm's Consolidated balance sheets. For purposes of calculating the LCR, HQLA securities are included at fair value, which may differ from the accounting treatment under U.S. GAAP. (c)Predominantly U.S. Treasuries, U.S. GSE and government agency MBS, and sovereign bonds net of regulatory haircuts under the LCR rule. (d)Excludes average excess eligible HQLA at JPMorgan Chase Bank, N.A. that are not transferable to non-bank affiliates. JPMorgan Chase Bank, N.A.'s average LCR increased during the three months ended December 31, 2024, compared with the three months ended September 30, 2024, driven by activities in CIB Markets, partially offset by lower market values of HQLA-eligible investment securities and funding maturities. JPMorgan Chase Bank, N.A.'s average LCR for the three months ended December 31, 2024 decreased compared with the three months ended December 31, 2023, driven by dividend payments to the Parent Company and lending activity, largely offset by higher market values of HQLA-eligible investment securities, a reduction in unencumbered non-HQLA AFS securities, activities in CIB Markets, and long-term debt issuances. JPMorgan Chase & Co./2024 Form 10-K109 JPMorgan Chase & Co./2024 Form 10-K109 JPMorgan Chase & Co./2024 Form 10-K109 JPMorgan Chase & Co./2024 Form 10-K 109 **Current (2026):** (a)Represents cash on deposit at central banks, including the Federal Reserve Banks. (b)Eligible HQLA securities may be reported in securities borrowed or purchased under resale agreements, trading assets, or investment securities on the Firm's Consolidated balance sheets. For purposes of calculating the LCR, HQLA securities are included at fair value, which may differ from the accounting treatment under U.S. GAAP. (c)Predominantly U.S. Treasuries, U.S. GSE and government agency MBS, and sovereign bonds net of regulatory haircuts under the LCR rule. (d)Excludes average excess eligible HQLA at JPMorgan Chase Bank, N.A. that are not transferable to non-bank affiliates. The Firm's average LCR for the three months ended December 31, 2025 decreased, compared with the three months ended December 31, 2024, primarily driven by repurchases of and dividends on common stock, predominantly offset by dividend payments from JPMorgan Chase Bank, N.A. to the Parent Company and activities in CIB Markets. JPMorgan Chase Bank, N.A.'s average LCR for the three months ended December 31, 2025 decreased, compared with the three months ended September 30, 2025, primarily due to higher lending levels, largely offset by higher deposits, higher market values of HQLA-eligible investment securities and long-term debt issuance. JPMorgan Chase Bank, N.A.'s average LCR for the three months ended December 31, 2025 decreased, compared with the three months ended December 31, 2024, driven by higher lending levels and dividend payments to the Parent Company, largely offset by higher deposits and higher market values of HQLA-eligible investment securities. JPMorgan Chase & Co./2025 Form 10-K101 JPMorgan Chase & Co./2025 Form 10-K101 JPMorgan Chase & Co./2025 Form 10-K101 JPMorgan Chase & Co./2025 Form 10-K 101 --- ## Modified Risk: Total accounts payable and other liabilities **Key changes:** - Updated: "(a) Includes credit card rewards liability of $16.0 billion and $14.4 billion at December 31, 2025 and 2024, respectively." - Updated: "Refer to Notes 7, 13, 18, 25 and 30 for additional information on accrued interest, allowance for credit losses on lending-related commitments, operating lease liabilities, income taxes and litigation reserves, respectively." **Prior (2025):** (a) Includes credit card rewards liability of $14.4 billion and $13.2 billion at December 31, 2024 and 2023, respectively. The credit card rewards liability represents the estimated cost of rewards points earned and expected to be redeemed by cardholders. The liability is accrued as the cardholder earns the benefit and is reduced when the cardholder redeems points. The redemption rate and cost per point assumptions are key assumptions to estimate the liability and the current period impact is recognized in Card Income. Refer to Notes 7, 18, 25 and 30 for additional information on accrued interest, operating lease liabilities, income taxes and litigation reserves, respectively. 288JPMorgan Chase & Co./2024 Form 10-K 288JPMorgan Chase & Co./2024 Form 10-K 288JPMorgan Chase & Co./2024 Form 10-K 288 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** (a) Includes credit card rewards liability of $16.0 billion and $14.4 billion at December 31, 2025 and 2024, respectively. The credit card rewards liability represents the estimated cost of rewards points earned and expected to be redeemed by cardholders. The liability is accrued as the cardholder earns the benefit and is reduced when the cardholder redeems points. The redemption rate and cost per point assumptions are key assumptions to estimate the liability and the current period impact is recognized in Card Income. Refer to Notes 7, 13, 18, 25 and 30 for additional information on accrued interest, allowance for credit losses on lending-related commitments, operating lease liabilities, income taxes and litigation reserves, respectively. 280JPMorgan Chase & Co./2025 Form 10-K 280JPMorgan Chase & Co./2025 Form 10-K 280JPMorgan Chase & Co./2025 Form 10-K 280 JPMorgan Chase & Co./2025 Form 10-K --- ## Modified Risk: Earnings-at-risk **Key changes:** - Updated: "One way that the Firm evaluates its structural interest rate risk is through earnings-at-risk." - Updated: "dollar sensitivities were insignificant.The change in the Firm's sensitivities as of December 31, 2025 compared to December 31, 2024, was primarily driven by the net impact of Treasury and CIO actual and forecasted actions, including an increase in cash flow hedges of floating rate loans and in investment securities, both of which add duration." - Updated: "Additional information on long-term debt and held to maturity investment securities is disclosed on page 194 in Note 2." - Updated: "December 31,(in billions)2025(a)2024(a)Parallel shift:+100 bps shift in rates$2.1 $2.3 -100 bps shift in rates(2.4)(2.5)+200 bps shift in rates3.7 4.6 -200 bps shift in rates(6.0)(4.9)Steeper yield curve:+100 bps shift in long-term rates1.4 1.0 -100 bps shift in short-term rates(1.0)(1.4)Flatter yield curve:+100 bps shift in short-term rates0.7 1.2 -100 bps shift in long-term rates(1.4)(1.1) 2025(a) 2024(a)" **Prior (2025):** The Firm's sensitivities are presented in the table below. December 31,(in billions)2024(a)2023(b)Parallel shift:+100 bps shift in rates$2.3 $3.1 -100 bps shift in rates(2.5)(2.8)+200 bps shift in rates4.6 6.2 -200 bps shift in rates(4.9)(6.1)Steeper yield curve:+100 bps shift in long-term rates1.0 0.6 -100 bps shift in short-term rates(1.4)(2.2)Flatter yield curve:+100 bps shift in short-term rates1.2 2.5 -100 bps shift in long-term rates(1.1)(0.6)(a)Reflects the simultaneous shift of U.S. dollar and non-U.S. dollar rates, and the inclusion of the hedges of non-U.S. dollar capital investments. This inclusion had no impact on total sensitivities but increased U.S. dollar and decreased non-U.S. dollar sensitivities. Subsequent to this change, non-U.S. dollar sensitivities were insignificant.(b)At December 31, 2023, represents the total of the Firm's U.S. dollar and non-U.S. dollar sensitivities as previously reported.The change in the Firm's sensitivities as of December 31, 2024, compared to December 31, 2023, were primarily driven by Treasury and CIO balance sheet actions where the Firm added duration through investment securities activity, cash flow hedges of retained loans and fair value hedges of Firm debt. The impact on the sensitivities of the Treasury and CIO balance sheet actions were largely offset by the impact of deposits, primarily from the second quarter of 2024 update of the deposit rates paid assumptions for certain consumer and wholesale deposit products. Additionally, the results as of December 31, 2024 reflected the update to include hedges of the Firm's non-U.S. dollar capital investments. Although total results were not impacted, these hedges increase U.S. dollar sensitivities and decrease non-U.S. dollar sensitivities. In the absence of these updates the Firm's sensitivities as of December 31, 2024, would have been different by the amounts reported in the following table:Amounts by which reported sensitivities would have been differentDecember 31, 2024(in billions)Impact from update in the second quarter of 2024Impact from update in the fourth quarter of 2024U.S. dollar:Parallel shift:+100 bps shift in rates$(1.0)$(0.6)-100 bps shift in rates0.9 0.6 +200 bps shift in rates(1.9)(1.3)-200 bps shift in rates1.5 1.3 Steeper yield curve:+100 bps shift in long-term rates - - -100 bps shift in short-term rates0.9 0.6 Flatter yield curve:+100 bps shift in short-term rates(1.0)(0.6)-100 bps shift in long-term rates - - Non-U.S. dollar:Parallel shift: +100 bps shift in rates - 0.6 -100 bps shift in rates - (0.6)Economic Value SensitivityIn addition to earnings-at-risk, which is measured as a sensitivity to a baseline of earnings over the next 12 months, the Firm also measures Economic Value Sensitivity ("EVS"). EVS stress tests the longer-term economic value of equity by measuring the sensitivity of the Firm's current balance sheet, primarily retained loans, deposits, debt and investment securities as well as related hedges, under various interest rate scenarios. The Firm's pricing and cash flow assumptions associated with deposits, as well as prepayment assumptions for loans and securities, are significant factors in the EVS measure. In accordance with the CTC interest rate risk management policy, the Firm has established limits on EVS as a percentage of TCE.Certain assumptions used in the EVS measure may differ from those required in the fair value measurement note to the Consolidated Financial Statements. For example, certain assets and liabilities with no stated maturity, such as credit card receivables and deposits, have longer assumed durations in the EVS measure. Additional information on long-term debt and held to maturity investment securities is disclosed on page 201 in Note 2. The Firm's sensitivities are presented in the table below. December 31,(in billions)2024(a)2023(b)Parallel shift:+100 bps shift in rates$2.3 $3.1 -100 bps shift in rates(2.5)(2.8)+200 bps shift in rates4.6 6.2 -200 bps shift in rates(4.9)(6.1)Steeper yield curve:+100 bps shift in long-term rates1.0 0.6 -100 bps shift in short-term rates(1.4)(2.2)Flatter yield curve:+100 bps shift in short-term rates1.2 2.5 -100 bps shift in long-term rates(1.1)(0.6)(a)Reflects the simultaneous shift of U.S. dollar and non-U.S. dollar rates, and the inclusion of the hedges of non-U.S. dollar capital investments. This inclusion had no impact on total sensitivities but increased U.S. dollar and decreased non-U.S. dollar sensitivities. Subsequent to this change, non-U.S. dollar sensitivities were insignificant.(b)At December 31, 2023, represents the total of the Firm's U.S. dollar and non-U.S. dollar sensitivities as previously reported.The change in the Firm's sensitivities as of December 31, 2024, compared to December 31, 2023, were primarily driven by Treasury and CIO balance sheet actions where the Firm added duration through investment securities activity, cash flow hedges of retained loans and fair value hedges of Firm debt. The impact on the sensitivities of the Treasury and CIO balance sheet actions were largely offset by the impact of deposits, primarily from the second quarter of 2024 update of the deposit rates paid assumptions for certain consumer and wholesale deposit products. Additionally, the results as of December 31, 2024 reflected the update to include hedges of the Firm's non-U.S. dollar capital investments. Although total results were not impacted, these hedges increase U.S. dollar sensitivities and decrease non-U.S. dollar sensitivities. In the absence of these updates the Firm's sensitivities as of December 31, 2024, would have been different by the amounts reported in the following table: The Firm's sensitivities are presented in the table below. December 31,(in billions)2024(a)2023(b)Parallel shift:+100 bps shift in rates$2.3 $3.1 -100 bps shift in rates(2.5)(2.8)+200 bps shift in rates4.6 6.2 -200 bps shift in rates(4.9)(6.1)Steeper yield curve:+100 bps shift in long-term rates1.0 0.6 -100 bps shift in short-term rates(1.4)(2.2)Flatter yield curve:+100 bps shift in short-term rates1.2 2.5 -100 bps shift in long-term rates(1.1)(0.6) 2024(a) 2023(b) **Current (2026):** One way that the Firm evaluates its structural interest rate risk is through earnings-at-risk. Earnings-at-risk estimates the Firm's interest rate exposure for a given interest rate scenario. It is presented as a sensitivity to a baseline, which includes net interest income and certain interest rate sensitive fees. The baseline uses market interest rates and, in the case of deposits, pricing assumptions. The Firm conducts simulations of changes to this baseline for interest rate-sensitive assets and liabilities denominated in U.S. dollars and other currencies ("non-U.S. dollar" currencies). These simulations primarily include retained and held-for-sale loans, deposits, deposits with banks and financing activities, investment securities, long-term debt, related interest rate hedges, and funds transfer pricing of other positions in risk management VaR and other sensitivity-based measures as described on page 134. These simulations also include hedges of non-U.S. dollar foreign exchange exposures arising from capital investments. Refer to non-U.S. dollar foreign exchange risk on page 142 for more information. Earnings-at-risk scenarios estimate the potential change to a baseline over the following 12 months utilizing multiple assumptions. These scenarios include a parallel shift involving changes to both short-term and long-term rates by an equal amount; a steeper yield curve involving holding short-term rates constant and increasing long-term rates; and a flatter yield curve involving increasing short-term rates and holding long-term rates constant or holding short-term rates constant and decreasing long-term rates. These scenarios consider many different factors, including: •The impact on exposures as a result of instantaneous changes in interest rates from baseline rates. •Forecasted balance sheet, as well as modeled prepayment and reinvestment behavior, but excluding assumptions about actions that could be taken by the Firm or its clients and customers in response to instantaneous rate changes. Mortgage prepayment assumptions are based on the interest rates used in the scenarios compared with underlying contractual rates, the time since origination, and other factors which are updated periodically based on historical experience. Deposit forecasts are a key assumption in the Firm's earnings-at-risk. The baseline reflects certain assumptions relating to the Federal Reserve's balance sheet policy (e.g., quantitative tightening and usage at the Reverse Repurchase Facility) that require management judgment. The amount of deposits that the Firm holds at any given time may be influenced by Federal Reserve actions, as well as broader monetary conditions and competition for deposits.•The pricing sensitivity of deposits, known as deposit betas, represent the amount by which deposit rates paid could change upon a given change in market interest rates. Actual deposit rates paid may differ from the modeled assumptions, primarily due to customer behavior and competition for deposits.The Firm performs sensitivity analyses of the assumptions used in earnings-at-risk scenarios, including with respect to deposit betas and forecasts of deposit balances, both of which are especially significant in the case of consumer deposits. The results of these sensitivity analyses are reported to the CTC Risk Committee and the Board Risk Committee.The Firm's earnings-at-risk scenarios are periodically evaluated and enhanced in response to changes in the composition of the Firm's balance sheet, changes in market conditions, improvements in the Firm's simulation and other factors. The Firm's earnings-at-risk sensitivities are measures of the Firm's interest rate exposure. The Firm's actual net interest income for the rate changes presented may differ as the earnings-at-risk scenarios are modelled as instantaneous changes and exclude any actions that could be taken by the Firm or its clients or customers in response to rate changes. Other significant assumptions in the earnings-at-risk scenarios, including mortgage prepayments and deposit rates paid, may also differ from actual results. The Firm's forecast for net interest income is included in the Firm's outlook on page 50. deposits that the Firm holds at any given time may be influenced by Federal Reserve actions, as well as broader monetary conditions and competition for deposits. •The pricing sensitivity of deposits, known as deposit betas, represent the amount by which deposit rates paid could change upon a given change in market interest rates. Actual deposit rates paid may differ from the modeled assumptions, primarily due to customer behavior and competition for deposits. The Firm performs sensitivity analyses of the assumptions used in earnings-at-risk scenarios, including with respect to deposit betas and forecasts of deposit balances, both of which are especially significant in the case of consumer deposits. The results of these sensitivity analyses are reported to the CTC Risk Committee and the Board Risk Committee. The Firm's earnings-at-risk scenarios are periodically evaluated and enhanced in response to changes in the composition of the Firm's balance sheet, changes in market conditions, improvements in the Firm's simulation and other factors. The Firm's earnings-at-risk sensitivities are measures of the Firm's interest rate exposure. The Firm's actual net interest income for the rate changes presented may differ as the earnings-at-risk scenarios are modelled as instantaneous changes and exclude any actions that could be taken by the Firm or its clients or customers in response to rate changes. Other significant assumptions in the earnings-at-risk scenarios, including mortgage prepayments and deposit rates paid, may also differ from actual results. The Firm's forecast for net interest income is included in the Firm's outlook on page 50. 140JPMorgan Chase & Co./2025 Form 10-K 140JPMorgan Chase & Co./2025 Form 10-K 140JPMorgan Chase & Co./2025 Form 10-K 140 JPMorgan Chase & Co./2025 Form 10-K The Firm's sensitivities are presented in the table below.December 31,(in billions)2025(a)2024(a)Parallel shift:+100 bps shift in rates$2.1 $2.3 -100 bps shift in rates(2.4)(2.5)+200 bps shift in rates3.7 4.6 -200 bps shift in rates(6.0)(4.9)Steeper yield curve:+100 bps shift in long-term rates1.4 1.0 -100 bps shift in short-term rates(1.0)(1.4)Flatter yield curve:+100 bps shift in short-term rates0.7 1.2 -100 bps shift in long-term rates(1.4)(1.1)(a)Reflects the simultaneous shift of U.S. dollar and non-U.S. dollar rates, including hedges of non-U.S. dollar capital investments. Non-U.S. dollar sensitivities were insignificant.The change in the Firm's sensitivities as of December 31, 2025 compared to December 31, 2024, was primarily driven by the net impact of Treasury and CIO actual and forecasted actions, including an increase in cash flow hedges of floating rate loans and in investment securities, both of which add duration. The net impact of these actions was largely offset, and more than offset for the -200 bps parallel shift in rates, by the effects from changes in Firmwide deposits.Economic value sensitivityIn addition to earnings-at-risk, which is measured as a sensitivity to a baseline of earnings over the next 12 months, the Firm also measures economic value sensitivity ("EVS"). EVS stress tests the longer-term economic value of equity by measuring the sensitivity of the Firm's current balance sheet, primarily retained loans, deposits, debt and investment securities as well as related hedges, under various interest rate scenarios. The Firm's pricing and cash flow assumptions associated with deposits, as well as prepayment assumptions for loans and securities, are significant factors in the EVS measure. In accordance with the CTC interest rate risk management policy, the Firm has established limits on EVS as a percentage of TCE.Certain assumptions used in the EVS measure may differ from those required in the fair value measurement note to the Consolidated Financial Statements. For example, certain assets and liabilities with no stated maturity, such as credit card receivables and deposits, have longer assumed durations in the EVS measure. Additional information on long-term debt and held to maturity investment securities is disclosed on page 194 in Note 2. The Firm's sensitivities are presented in the table below.December 31,(in billions)2025(a)2024(a)Parallel shift:+100 bps shift in rates$2.1 $2.3 -100 bps shift in rates(2.4)(2.5)+200 bps shift in rates3.7 4.6 -200 bps shift in rates(6.0)(4.9)Steeper yield curve:+100 bps shift in long-term rates1.4 1.0 -100 bps shift in short-term rates(1.0)(1.4)Flatter yield curve:+100 bps shift in short-term rates0.7 1.2 -100 bps shift in long-term rates(1.4)(1.1)(a)Reflects the simultaneous shift of U.S. dollar and non-U.S. dollar rates, including hedges of non-U.S. dollar capital investments. Non-U.S. dollar sensitivities were insignificant.The change in the Firm's sensitivities as of December 31, 2025 compared to December 31, 2024, was primarily driven by the net impact of Treasury and CIO actual and forecasted actions, including an increase in cash flow hedges of floating rate loans and in investment securities, both of which add duration. The net impact of these actions was largely offset, and more than offset for the -200 bps parallel shift in rates, by the effects from changes in Firmwide deposits. The Firm's sensitivities are presented in the table below. December 31,(in billions)2025(a)2024(a)Parallel shift:+100 bps shift in rates$2.1 $2.3 -100 bps shift in rates(2.4)(2.5)+200 bps shift in rates3.7 4.6 -200 bps shift in rates(6.0)(4.9)Steeper yield curve:+100 bps shift in long-term rates1.4 1.0 -100 bps shift in short-term rates(1.0)(1.4)Flatter yield curve:+100 bps shift in short-term rates0.7 1.2 -100 bps shift in long-term rates(1.4)(1.1) 2025(a) 2024(a) --- ## Modified Risk: Consolidated balance sheets analysis **Key changes:** - Updated: "The following is a discussion of the significant changes between December 31, 2025 and 2024." - Updated: "government debt securities, partially offset by maturities and paydowns; and•HTM securities decreased driven by maturities and paydowns.Refer to Corporate results on pages 80-82, Investment Portfolio Risk Management on page 132, and Notes 2 and 10 for additional information.Loans increased, reflecting:•higher wholesale loans, predominantly in Markets associated with higher client demand,•higher securities-based lending in AWM due to higher client demand, and•higher outstanding balances in Card Services driven by growth in new accounts and higher revolving balances,partially offset by•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 $1.4 billion, and consisted of: Cash and due from banks and deposits with banks decreased driven by Markets activities in CIB, higher investment securities, higher loans and cash deployment in Treasury and CIO, largely offset by the impact of higher deposits and higher long-term debt.Federal funds sold and securities purchased under resale agreements increased driven by Markets, reflecting the impact of lower levels of netting, higher collateral requirements and higher demand for securities to cover short positions.Securities borrowed increased driven by Markets, reflecting higher client-driven activities and higher demand for securities to cover short positions.Refer to Note 11 for additional information on securities purchased under resale agreements and securities borrowed.Trading assets increased predominantly driven by Markets, due to higher levels of debt instruments, partially offset by lower levels of equity instruments, both related to client-driven market-making activities." - Updated: "government debt securities, partially offset by maturities and paydowns; and•HTM securities decreased driven by maturities and paydowns.Refer to Corporate results on pages 80-82, Investment Portfolio Risk Management on page 132, and Notes 2 and 10 for additional information.Loans increased, reflecting:•higher wholesale loans, predominantly in Markets associated with higher client demand,•higher securities-based lending in AWM due to higher client demand, and•higher outstanding balances in Card Services driven by growth in new accounts and higher revolving balances,partially offset by•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 $1.4 billion, and consisted of: •AFS securities increased driven by net purchases, predominantly U.S." - Updated: "government debt securities, partially offset by maturities and paydowns; and •HTM securities decreased driven by maturities and paydowns." - Updated: "Other assets increased predominantly due to higher cash collateral placed with counterparties in Markets, and higher auto operating lease assets in CCB." **Prior (2025):** The following is a discussion of the significant changes between December 31, 2024 and 2023. Refer to pages 161-164 for a discussion of the Critical Accounting Estimates Used by the Firm that affect the Consolidated Balance Sheets. Selected Consolidated balance sheets dataDecember 31, (in millions)20242023ChangeAssetsCash and due from banks$23,372 $29,066 (20)%Deposits with banks445,945 595,085 (25)Federal funds sold and securities purchased under resale agreements295,001 276,152 7 Securities borrowed219,546 200,436 10 Trading assets637,784 540,607 18 Available-for-sale securities406,852 201,704 102 Held-to-maturity securities274,468 369,848 (26)Investment securities, net of allowance for credit losses681,320 571,552 19 Loans1,347,988 1,323,706 2 Allowance for loan losses(24,345)(22,420)9 Loans, net of allowance for loan losses1,323,643 1,301,286 2 Accrued interest and accounts receivable101,223 107,363 (6)Premises and equipment32,223 30,157 7 Goodwill, MSRs and other intangible assets64,560 64,381 - Other assets178,197 159,308 12 Total assets$4,002,814 $3,875,393 3 % Federal funds sold and securities purchased under resale agreements Accrued interest and accounts receivable Cash and due from banks and deposits with banks decreased driven by higher investment securities in Treasury and CIO, and Markets activities in CIB.Federal funds sold and securities purchased under resale agreements increased driven by Markets, reflecting higher client-driven market-making activities.Securities borrowed increased driven by Markets, reflecting a higher demand for securities to cover short positions.Refer to Note 11 for additional information on securities purchased under resale agreements and securities borrowed.Trading assets increased predominantly due to higher levels of debt and equity instruments in Markets related to client-driven market-making activities. Refer to Notes 2 and 5 for additional information.Investment securities increased due to:•higher available-for-sale ("AFS") securities, reflecting net purchases, primarily U.S. Treasuries and non-U.S. government debt securities, partially offset by maturities and paydowns, and•lower held to-maturity ("HTM") securities driven by maturities and paydowns.Refer to Corporate results on pages 88-90, Investment Portfolio Risk Management on page 140, and Notes 2 and 10 for additional information.Loans increased, reflecting:•higher outstanding balances in Card Services driven by growth in new accounts and normalization of revolving balances,•higher wholesale loans in CIB, and•higher securities-based lending in AWM due to higher client demand,partially offset by•a decline in Home Lending as paydowns and loan sales outpaced originations.The allowance for loan losses increased, reflecting a net addition to the allowance for loan losses of $1.9 billion, consisting of:•$2.1 billion net addition in consumer, primarily in Card Services, predominantly driven by loan growth, reflecting higher revolving balances, including the seasoning of vintages originated in recent years, partially offset by a net reduction in Home Lending in the first quarter of 2024, and•a net reduction of $176 million in wholesale, reflecting:-changes in certain macroeconomic variables, an update to loss assumptions on certain loans in Cash and due from banks and deposits with banks decreased driven by higher investment securities in Treasury and CIO, and Markets activities in CIB.Federal funds sold and securities purchased under resale agreements increased driven by Markets, reflecting higher client-driven market-making activities.Securities borrowed increased driven by Markets, reflecting a higher demand for securities to cover short positions.Refer to Note 11 for additional information on securities purchased under resale agreements and securities borrowed.Trading assets increased predominantly due to higher levels of debt and equity instruments in Markets related to client-driven market-making activities. Refer to Notes 2 and 5 for additional information.Investment securities increased due to:•higher available-for-sale ("AFS") securities, reflecting net purchases, primarily U.S. Treasuries and non-U.S. government debt securities, partially offset by maturities and paydowns, and•lower held to-maturity ("HTM") securities driven by maturities and paydowns.Refer to Corporate results on pages 88-90, Cash and due from banks and deposits with banks decreased driven by higher investment securities in Treasury and CIO, and Markets activities in CIB. Federal funds sold and securities purchased under resale agreements increased driven by Markets, reflecting higher client-driven market-making activities. Securities borrowed increased driven by Markets, reflecting a higher demand for securities to cover short positions. Refer to Note 11 for additional information on securities purchased under resale agreements and securities borrowed. Trading assets increased predominantly due to higher levels of debt and equity instruments in Markets related to client-driven market-making activities. Refer to Notes 2 and 5 for additional information. Investment securities increased due to: •higher available-for-sale ("AFS") securities, reflecting net purchases, primarily U.S. Treasuries and non-U.S. government debt securities, partially offset by maturities and paydowns, and •lower held to-maturity ("HTM") securities driven by maturities and paydowns. Refer to Corporate results on pages 88-90, Investment Portfolio Risk Management on page 140, and Notes 2 and 10 for additional information.Loans increased, reflecting:•higher outstanding balances in Card Services driven by growth in new accounts and normalization of revolving balances,•higher wholesale loans in CIB, and•higher securities-based lending in AWM due to higher client demand,partially offset by•a decline in Home Lending as paydowns and loan sales outpaced originations.The allowance for loan losses increased, reflecting a net addition to the allowance for loan losses of $1.9 billion, consisting of:•$2.1 billion net addition in consumer, primarily in Card Services, predominantly driven by loan growth, reflecting higher revolving balances, including the seasoning of vintages originated in recent years, partially offset by a net reduction in Home Lending in the first quarter of 2024, and•a net reduction of $176 million in wholesale, reflecting:-changes in certain macroeconomic variables, an update to loss assumptions on certain loans in Investment Portfolio Risk Management on page 140, and Notes 2 and 10 for additional information. Loans increased, reflecting: •higher outstanding balances in Card Services driven by growth in new accounts and normalization of revolving balances, •higher wholesale loans in CIB, and •higher securities-based lending in AWM due to higher client demand, partially offset by •a decline in Home Lending as paydowns and loan sales outpaced originations. The allowance for loan losses increased, reflecting a net addition to the allowance for loan losses of $1.9 billion, consisting of: •$2.1 billion net addition in consumer, primarily in Card Services, predominantly driven by loan growth, reflecting higher revolving balances, including the seasoning of vintages originated in recent years, partially offset by a net reduction in Home Lending in the first quarter of 2024, and •a net reduction of $176 million in wholesale, reflecting: -changes in certain macroeconomic variables, an update to loss assumptions on certain loans in JPMorgan Chase & Co./2024 Form 10-K63 JPMorgan Chase & Co./2024 Form 10-K63 JPMorgan Chase & Co./2024 Form 10-K63 JPMorgan Chase & Co./2024 Form 10-K 63 Markets, and a reduction due to charge-offs largely from collateral-dependent loans, predominantly offset by-net downgrade activity, primarily in Real Estate, and the impact of incorporating the First Republic portfolio into the Firm's modeled credit loss estimates in the second quarter of 2024.There was also a $128 million net addition to the allowance for lending-related commitments recognized in other liabilities on the Consolidated balance sheets. Refer to Consolidated Results of Operations and Credit and Investment Risk Management on pages 59-62 and pages 117-140, respectively, Critical Accounting Estimates Used by the Firm on pages 161-164, and Notes 2, 3, 12 and 13 for additional information on loans and the total allowance for credit losses. Accrued interest and accounts receivable decreased primarily driven by lower receivables in Payments related to the timing of processing payment activities, due to December 31, 2023 falling on a weekend, as well as lower client receivables related to client-driven activities in Markets. Premises and equipment increased primarily as a result of the construction-in-process associated with the Firm's headquarters, and purchases of properties. Refer to Notes 16 and 18 for additional information.Goodwill, MSRs and other intangibles: Refer to Note 15 for additional information.Other assets increased primarily due to higher cash collateral placed with central counterparties ("CCP") in Markets, the impact of the adoption of updates to the Accounting for Investments in Tax Credit Structures guidance effective January 1, 2024, and higher auto operating lease assets in CCB. Refer to Notes 1, 6, 14 and 25 for additional information on updates to the accounting guidance. Markets, and a reduction due to charge-offs largely from collateral-dependent loans, predominantly offset by-net downgrade activity, primarily in Real Estate, and the impact of incorporating the First Republic portfolio into the Firm's modeled credit loss estimates in the second quarter of 2024.There was also a $128 million net addition to the allowance for lending-related commitments recognized in other liabilities on the Consolidated balance sheets. Refer to Consolidated Results of Operations and Credit and Investment Risk Management on pages 59-62 and pages 117-140, respectively, Critical Accounting Estimates Used by the Firm on pages 161-164, and Notes 2, 3, 12 and 13 for additional information on loans and the total allowance for credit losses. Markets, and a reduction due to charge-offs largely from collateral-dependent loans, predominantly offset by -net downgrade activity, primarily in Real Estate, and the impact of incorporating the First Republic portfolio into the Firm's modeled credit loss estimates in the second quarter of 2024. There was also a $128 million net addition to the allowance for lending-related commitments recognized in other liabilities on the Consolidated balance sheets. Refer to Consolidated Results of Operations and Credit and Investment Risk Management on pages 59-62 and pages 117-140, respectively, Critical Accounting Estimates Used by the Firm on pages 161-164, and Notes 2, 3, 12 and 13 for additional information on loans and the total allowance for credit losses. Accrued interest and accounts receivable decreased primarily driven by lower receivables in Payments related to the timing of processing payment activities, due to December 31, 2023 falling on a weekend, as well as lower client receivables related to client-driven activities in Markets. Premises and equipment increased primarily as a result of the construction-in-process associated with the Firm's headquarters, and purchases of properties. Refer to Notes 16 and 18 for additional information.Goodwill, MSRs and other intangibles: Refer to Note 15 for additional information.Other assets increased primarily due to higher cash collateral placed with central counterparties ("CCP") in Markets, the impact of the adoption of updates to the Accounting for Investments in Tax Credit Structures guidance effective January 1, 2024, and higher auto operating lease assets in CCB. Refer to Notes 1, 6, 14 and 25 for additional information on updates to the accounting guidance. Accrued interest and accounts receivable decreased primarily driven by lower receivables in Payments related to the timing of processing payment activities, due to December 31, 2023 falling on a weekend, as well as lower client receivables related to client-driven activities in Markets. Premises and equipment increased primarily as a result of the construction-in-process associated with the Firm's headquarters, and purchases of properties. Refer to Notes 16 and 18 for additional information. Goodwill, MSRs and other intangibles: Refer to Note 15 for additional information. Other assets increased primarily due to higher cash collateral placed with central counterparties ("CCP") in Markets, the impact of the adoption of updates to the Accounting for Investments in Tax Credit Structures guidance effective January 1, 2024, and higher auto operating lease assets in CCB. Refer to Notes 1, 6, 14 and 25 for additional information on updates to the accounting guidance. Selected Consolidated balance sheets data (continued)December 31, (in millions)20242023ChangeLiabilitiesDeposits$2,406,032 $2,400,688 - Federal funds purchased and securities loaned or sold under repurchase agreements296,835 216,535 37 Short-term borrowings52,893 44,712 18 Trading liabilities192,883 180,428 7 Accounts payable and other liabilities280,672 290,307 (3)Beneficial interests issued by consolidated variable interest entities ("VIEs")27,323 23,020 19 Long-term debt401,418 391,825 2 Total liabilities3,658,056 3,547,515 3 Stockholders' equity344,758 327,878 5 Total liabilities and stockholders' equity$4,002,814 $3,875,393 3 % Federal funds purchased and securities loaned or sold under repurchase agreements Beneficial interests issued by consolidated variable interest entities ("VIEs") **Current (2026):** The following is a discussion of the significant changes between December 31, 2025 and 2024. Refer to pages 154-157 for a discussion of the Critical Accounting Estimates Used by the Firm that affect the Consolidated Balance Sheets. Selected Consolidated balance sheets dataDecember 31, (in millions)20252024ChangeAssetsCash and due from banks$21,742 $23,372 (7)%Deposits with banks321,596 445,945 (28)Federal funds sold and securities purchased under resale agreements336,426 295,001 14 Securities borrowed286,191 219,546 30 Trading assets802,873 637,784 26 Available-for-sale securities507,198 406,852 25 Held-to-maturity securities270,134 274,468 (2)Investment securities, net of allowance for credit losses777,332 681,320 14 Loans1,493,429 1,347,988 11 Allowance for loan losses(25,765)(24,345)6 Loans, net of allowance for loan losses1,467,664 1,323,643 11 Accrued interest and accounts receivable111,599 101,223 10 Premises and equipment36,244 32,223 12 Goodwill, MSRs and other intangible assets64,458 64,560 - Other assets198,775 178,197 12 Total assets$4,424,900 $4,002,814 11 % Federal funds sold and securities purchased under resale agreements Accrued interest and accounts receivable Cash and due from banks and deposits with banks decreased driven by Markets activities in CIB, higher investment securities, higher loans and cash deployment in Treasury and CIO, largely offset by the impact of higher deposits and higher long-term debt.Federal funds sold and securities purchased under resale agreements increased driven by Markets, reflecting the impact of lower levels of netting, higher collateral requirements and higher demand for securities to cover short positions.Securities borrowed increased driven by Markets, reflecting higher client-driven activities and higher demand for securities to cover short positions.Refer to Note 11 for additional information on securities purchased under resale agreements and securities borrowed.Trading assets increased predominantly driven by Markets, due to higher levels of debt instruments, partially offset by lower levels of equity instruments, both related to client-driven market-making activities. Refer to Notes 2 and 5 for additional information.Investment securities increased. Excluding a non-cash transfer in the third quarter of 2025 of $44.1 billion of securities from available-for-sale ("AFS") to held-to-maturity ("HTM") for asset-liability management purposes,•AFS securities increased driven by net purchases, predominantly U.S. Treasuries and non-U.S. government debt securities, partially offset by maturities and paydowns; and•HTM securities decreased driven by maturities and paydowns.Refer to Corporate results on pages 80-82, Investment Portfolio Risk Management on page 132, and Notes 2 and 10 for additional information.Loans increased, reflecting:•higher wholesale loans, predominantly in Markets associated with higher client demand,•higher securities-based lending in AWM due to higher client demand, and•higher outstanding balances in Card Services driven by growth in new accounts and higher revolving balances,partially offset by•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 $1.4 billion, and consisted of: Cash and due from banks and deposits with banks decreased driven by Markets activities in CIB, higher investment securities, higher loans and cash deployment in Treasury and CIO, largely offset by the impact of higher deposits and higher long-term debt.Federal funds sold and securities purchased under resale agreements increased driven by Markets, reflecting the impact of lower levels of netting, higher collateral requirements and higher demand for securities to cover short positions.Securities borrowed increased driven by Markets, reflecting higher client-driven activities and higher demand for securities to cover short positions.Refer to Note 11 for additional information on securities purchased under resale agreements and securities borrowed.Trading assets increased predominantly driven by Markets, due to higher levels of debt instruments, partially offset by lower levels of equity instruments, both related to client-driven market-making activities. Refer to Notes 2 and 5 for additional information.Investment securities increased. Excluding a non-cash transfer in the third quarter of 2025 of $44.1 billion of securities from available-for-sale ("AFS") to held-to-maturity ("HTM") for asset-liability management purposes, Cash and due from banks and deposits with banks decreased driven by Markets activities in CIB, higher investment securities, higher loans and cash deployment in Treasury and CIO, largely offset by the impact of higher deposits and higher long-term debt. Federal funds sold and securities purchased under resale agreements increased driven by Markets, reflecting the impact of lower levels of netting, higher collateral requirements and higher demand for securities to cover short positions. Securities borrowed increased driven by Markets, reflecting higher client-driven activities and higher demand for securities to cover short positions. Refer to Note 11 for additional information on securities purchased under resale agreements and securities borrowed. Trading assets increased predominantly driven by Markets, due to higher levels of debt instruments, partially offset by lower levels of equity instruments, both related to client-driven market-making activities. Refer to Notes 2 and 5 for additional information. Investment securities increased. Excluding a non-cash transfer in the third quarter of 2025 of $44.1 billion of securities from available-for-sale ("AFS") to held-to-maturity ("HTM") for asset-liability management purposes, •AFS securities increased driven by net purchases, predominantly U.S. Treasuries and non-U.S. government debt securities, partially offset by maturities and paydowns; and•HTM securities decreased driven by maturities and paydowns.Refer to Corporate results on pages 80-82, Investment Portfolio Risk Management on page 132, and Notes 2 and 10 for additional information.Loans increased, reflecting:•higher wholesale loans, predominantly in Markets associated with higher client demand,•higher securities-based lending in AWM due to higher client demand, and•higher outstanding balances in Card Services driven by growth in new accounts and higher revolving balances,partially offset by•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 $1.4 billion, and consisted of: •AFS securities increased driven by net purchases, predominantly U.S. Treasuries and non-U.S. government debt securities, partially offset by maturities and paydowns; and •HTM securities decreased driven by maturities and paydowns. Refer to Corporate results on pages 80-82, Investment Portfolio Risk Management on page 132, and Notes 2 and 10 for additional information. Loans increased, reflecting: •higher wholesale loans, predominantly in Markets associated with higher client demand, •higher securities-based lending in AWM due to higher client demand, and •higher outstanding balances in Card Services driven by growth in new accounts and higher revolving balances, partially offset by •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 $1.4 billion, and consisted of: JPMorgan Chase & Co./2025 Form 10-K55 JPMorgan Chase & Co./2025 Form 10-K55 JPMorgan Chase & Co./2025 Form 10-K55 JPMorgan Chase & Co./2025 Form 10-K 55 •$1.1 billion in consumer, driven by loan growth in Card Services and the impact of changes in the Firm's weighted-average macroeconomic outlook, partially offset by reduced borrower uncertainty, and•$350 million in wholesale, driven by a net increase in the loan portfolio, an update to loss assumptions on certain leveraged loans, and net changes in credit quality of client-specific exposures, partially offset by a reduction due to the impact of charge-offs and changes in the Firm's weighted-average macroeconomic outlook.There was also a $3.0 billion net addition to the allowance for lending-related commitments recognized in other liabilities on the Consolidated balance sheets. The net addition was predominantly driven by $2.2 billion related to the Apple Card transaction and the impact of new lending-related commitments.Refer to Consolidated Results of Operations and Credit and Investment Risk Management on pages 51-54 and pages 109-132, respectively, Critical Accounting Estimates Used by the Firm on pages 154-157, and Notes 2, 3, 12 and 13 for additional information on loans and the total allowance for credit losses. Accrued interest and accounts receivable increased predominantly due to higher client-driven activities in Markets.Premises and equipment increased, reflecting the impact of net additions and improvements to the Firm's properties, including its new headquarters, bank branches and other corporate offices. Refer to Notes 16 and 18 for additional information.Goodwill, MSRs and other intangibles: Refer to Note 15 for additional information.Other assets increased predominantly due to higher cash collateral placed with counterparties in Markets, and higher auto operating lease assets in CCB. •$1.1 billion in consumer, driven by loan growth in Card Services and the impact of changes in the Firm's weighted-average macroeconomic outlook, partially offset by reduced borrower uncertainty, and•$350 million in wholesale, driven by a net increase in the loan portfolio, an update to loss assumptions on certain leveraged loans, and net changes in credit quality of client-specific exposures, partially offset by a reduction due to the impact of charge-offs and changes in the Firm's weighted-average macroeconomic outlook.There was also a $3.0 billion net addition to the allowance for lending-related commitments recognized in other liabilities on the Consolidated balance sheets. The net addition was predominantly driven by $2.2 billion related to the Apple Card transaction and the impact of new lending-related commitments. •$1.1 billion in consumer, driven by loan growth in Card Services and the impact of changes in the Firm's weighted-average macroeconomic outlook, partially offset by reduced borrower uncertainty, and •$350 million in wholesale, driven by a net increase in the loan portfolio, an update to loss assumptions on certain leveraged loans, and net changes in credit quality of client-specific exposures, partially offset by a reduction due to the impact of charge-offs and changes in the Firm's weighted-average macroeconomic outlook. There was also a $3.0 billion net addition to the allowance for lending-related commitments recognized in other liabilities on the Consolidated balance sheets. The net addition was predominantly driven by $2.2 billion related to the Apple Card transaction and the impact of new lending-related commitments. Refer to Consolidated Results of Operations and Credit and Investment Risk Management on pages 51-54 and pages 109-132, respectively, Critical Accounting Estimates Used by the Firm on pages 154-157, and Notes 2, 3, 12 and 13 for additional information on loans and the total allowance for credit losses. Accrued interest and accounts receivable increased predominantly due to higher client-driven activities in Markets.Premises and equipment increased, reflecting the impact of net additions and improvements to the Firm's properties, including its new headquarters, bank branches and other corporate offices. Refer to Notes 16 and 18 for additional information.Goodwill, MSRs and other intangibles: Refer to Note 15 for additional information.Other assets increased predominantly due to higher cash collateral placed with counterparties in Markets, and higher auto operating lease assets in CCB. Refer to Consolidated Results of Operations and Credit and Investment Risk Management on pages 51-54 and pages 109-132, respectively, Critical Accounting Estimates Used by the Firm on pages 154-157, and Notes 2, 3, 12 and 13 for additional information on loans and the total allowance for credit losses. Accrued interest and accounts receivable increased predominantly due to higher client-driven activities in Markets. Premises and equipment increased, reflecting the impact of net additions and improvements to the Firm's properties, including its new headquarters, bank branches and other corporate offices. Refer to Notes 16 and 18 for additional information. Goodwill, MSRs and other intangibles: Refer to Note 15 for additional information. Other assets increased predominantly due to higher cash collateral placed with counterparties in Markets, and higher auto operating lease assets in CCB. Selected Consolidated balance sheets data (continued)December 31, (in millions)20252024ChangeLiabilitiesDeposits$2,559,320 $2,406,032 6 %Federal funds purchased and securities loaned or sold under repurchase agreements442,396 296,835 49 Short-term borrowings64,776 52,893 22 Trading liabilities216,019 192,883 12 Accounts payable and other liabilities316,794 280,672 13 Beneficial interests issued by consolidated variable interest entities ("VIEs")27,951 27,323 2 Long-term debt435,206 401,418 8 Total liabilities4,062,462 3,658,056 11 Stockholders' equity362,438 344,758 5 Total liabilities and stockholders' equity$4,424,900 $4,002,814 11 % Federal funds purchased and securities loaned or sold under repurchase agreements Beneficial interests issued by consolidated variable interest entities ("VIEs") --- ## Modified Risk: Risk identification and ownership **Key changes:** - Updated: "The IRM function reviews and challenges the material risks identified by each LOB and Corporate, and maintains a risk identification framework and a central risk inventory." **Prior (2025):** The LOBs and Corporate are responsible for the identification of risks within their respective organizations, as well as the design and execution of controls, including IRM-specified controls, to manage those risks. To support this activity, the Firm has a risk identification framework designed to facilitate the responsibility of each LOB and Corporate to identify material risks inherent to the Firm's businesses and operational activities, catalog them in a central repository and review material risks on a regular basis. The IRM function reviews and challenges the risks identified by each LOB and Corporate, maintains the central repository and provides the consolidated Firmwide results to the Firmwide Risk Committee ("FRC") and the Board Risk Committee. **Current (2026):** The LOBs and Corporate are responsible for the identification of risks within their respective organizations, as well as the design and execution of controls, including IRM-specified controls, to manage those risks. The IRM function reviews and challenges the material risks identified by each LOB and Corporate, and maintains a risk identification framework and a central risk inventory. --- ## Modified Risk: Statements of cash flows **Key changes:** - Updated: "Accounting standard adopted January 1, 2024Equity Method and Joint Ventures: Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method The guidance expanded the types of tax-oriented investments, beyond affordable housing tax credit investments, that the Firm can elect on a program by program basis, to be accounted for using the proportional amortization method.The adoption of this guidance under the modified retrospective method on January 1, 2024 resulted in a change to the classification and timing of the amortization associated with certain of the Firm's alternative energy tax-oriented investments." - Updated: "The adoption impact of the transfer on retained earnings was not material.Financial Instruments - Credit Losses: Troubled Debt Restructurings ("TDRs") The adoption of this guidance eliminated the requirement to measure the allowance for TDRs using a discounted cash flow ("DCF") methodology and allowed the option of a non-DCF portfolio-based approach for modified loans to troubled borrowers." **Prior (2025):** For JPMorganChase's Consolidated statements of cash flows, cash is defined as those amounts included in cash and due from banks and deposits with banks on the Consolidated balance sheets. Accounting standard adopted January 1, 2024Equity Method and Joint Ventures: Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method The guidance expanded the types of tax-oriented investments, beyond affordable housing tax credit investments, that the Firm can elect on a program by program basis, to be accounted for using the proportional amortization method. This method requires the cost of eligible investments, within an elected program, to be amortized in proportion to the tax benefits received with the resulting amortization reported directly in income tax expense, which aligns with the associated tax credits and other tax benefits. Eligible investments must meet certain criteria, including that substantially all of the return is from income tax credits and other income tax benefits.This guidance was adopted on January 1, 2024 under the modified retrospective method. The adoption of this guidance resulted in a change to the classification and timing of the amortization associated with certain of the Firm's alternative energy tax-oriented investments. As a result of the adoption, the amortization of these investments that was previously recognized in other income is now recognized in income tax expense. The change in accounting resulted in a decrease to retained earnings of $161 million and increased the Firm's income tax expense and the effective tax rate by approximately $450 million and two percentage points, respectively, in the first quarter of 2024, with no material impact to net income.The guidance requires additional disclosure for all investments that generate income tax credits and other income tax benefits from a tax-oriented investment program for which the Firm has elected to apply the proportional amortization method. The guidance also requires a reevaluation of eligible investments when significant modifications or events occur that result in a change in the nature of the investment or a change in the Firm's relationship with the underlying project.Refer to Notes 6, 14 and 25 for additional information.Accounting standards adopted January 1, 2023Derivatives and Hedging: Fair Value Hedging - Portfolio Layer MethodThe adoption of this guidance expanded the ability to hedge a portfolio of fixed-rate assets in a qualifying hedge accounting relationship. As permitted by the guidance, the Firm elected to transfer HTM securities to AFS and designated those securities in a portfolio layer method hedge upon adoption. The adoption impact of the transfer on retained earnings was not material. **Current (2026):** For JPMorganChase's Consolidated statements of cash flows, cash is defined as those amounts included in cash and due from banks and deposits with banks on the Consolidated balance sheets. Accounting standard adopted January 1, 2024Equity Method and Joint Ventures: Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method The guidance expanded the types of tax-oriented investments, beyond affordable housing tax credit investments, that the Firm can elect on a program by program basis, to be accounted for using the proportional amortization method.The adoption of this guidance under the modified retrospective method on January 1, 2024 resulted in a change to the classification and timing of the amortization associated with certain of the Firm's alternative energy tax-oriented investments. As a result of the adoption, the amortization of these investments that was previously recognized in other income became recognized in income tax expense. The change in accounting resulted in a decrease to retained earnings of $161 million and increased the Firm's income tax expense and the effective tax rate by approximately $450 million and two percentage points, respectively, in the first quarter of 2024, with no material impact to net income.Refer to Notes 6, 14 and 25 for additional information.Accounting standards adopted January 1, 2023Derivatives and Hedging: Fair Value Hedging - Portfolio Layer MethodThe adoption of this guidance expanded the ability to hedge a portfolio of fixed-rate assets in a qualifying hedge accounting relationship. As permitted by the guidance, the Firm elected to transfer HTM securities to AFS and designated those securities in a portfolio layer method hedge upon adoption. The adoption impact of the transfer on retained earnings was not material.Financial Instruments - Credit Losses: Troubled Debt Restructurings ("TDRs") The adoption of this guidance eliminated the requirement to measure the allowance for TDRs using a discounted cash flow ("DCF") methodology and allowed the option of a non-DCF portfolio-based approach for modified loans to troubled borrowers. The Firm elected this option for all portfolios of modified loans to troubled borrowers except collateral-dependent loans and nonaccrual risk-rated loans, for which the Firm elected to continue applying a DCF methodology. The adoption of this guidance under the modified retrospective method on January 1, 2023, resulted in a $446 million increase to retained earnings. --- ## Modified Risk: Net deferred tax assets **Key changes:** - Updated: "JPMorganChase has recorded deferred tax assets of $2.3 billion at December 31, 2025 in connection with tax attribute carryforwards." - Updated: "federal, state and local, and non-U.S." - Removed: "The evaluation of unrecognized tax benefits as well as the potential for audit settlements make it reasonably possible that over the next 12 months the gross balance of unrecognized tax benefits may increase or decrease by as much as approximately $2.4 billion." - Updated: "(in millions)202520242023Balance at January 1,$6,159 $5,401 $5,043 Increases based on tax positions related to the current period609 1,721 1,440 Increases based on tax positions related to prior periods128 92 37 Decreases based on tax positions related to prior periods(1,268)(907)(1,110)Decreases related to cash settlements with taxing authorities(4)(148)(9)Balance at December 31,$5,624 $6,159 $5,401 After-tax interest expense/(benefit) and penalties related to income tax liabilities recognized in income tax expense were $241 million, $288 million and $229 million for the years ended December 31, 2025, 2024 and 2023, respectively.At December 31, 2025 and 2024, in addition to the liability for unrecognized tax benefits, the Firm had accrued $1.9 billion and $1.7 billion, respectively, for income tax-related interest and penalties." - Updated: "The following table summarizes the status of tax years that remain subject to income tax examination of JPMorganChase and its consolidated subsidiaries by significant jurisdictions as of December 31, 2025.Periods under examinationStatusJPMorganChase - U.S.2011 - 2013Field examination of amended returns; certain matters at Appellate levelJPMorganChase - U.S.2014 - 2020Field examination of original and amended returns; certain matters at Appellate levelJPMorganChase - New York City2015 - 2018Field examinationJPMorganChase - New York State2015 - 2018Field examinationJPMorganChase - U.K.2017 - 2023Field examination of certain select entities Unrecognized tax benefitsAt December 31, 2025, 2024 and 2023, JPMorganChase's unrecognized tax benefits, excluding related interest expense and penalties, were $5.6 billion, $6.2 billion and $5.4 billion, respectively, of which $4.6 billion, $4.4 billion and $3.9 billion, respectively, if recognized, would reduce the annual effective tax rate." **Prior (2025):** Unrecognized tax benefitsAt December 31, 2024, 2023 and 2022, JPMorganChase's unrecognized tax benefits, excluding related interest expense and penalties, were $6.2 billion, $5.4 billion and $5.0 billion, respectively, of which $4.4 billion, $3.9 billion and $3.8 billion, respectively, if recognized, would reduce the annual effective tax rate. Included in the amount of unrecognized tax benefits are certain items that would not affect the effective tax rate if they were recognized in the Consolidated statements of income. These unrecognized items include the tax effect of certain temporary differences, the portion of gross state and local unrecognized tax benefits that would be offset by the benefit from associated U.S. federal income tax deductions, and the portion of gross non-U.S. unrecognized tax benefits that would have offsets in other jurisdictions. JPMorganChase evaluates the need for changes in unrecognized tax benefits based on its anticipated tax return filing positions as part of its U.S. federal and state and local tax returns. In addition, the Firm is presently under audit by a number of taxing authorities, most notably by the Internal Revenue Service, as summarized in the Tax examination status table below. The evaluation of unrecognized tax benefits as well as the potential for audit settlements make it reasonably possible that over the next 12 months the gross balance of unrecognized tax benefits may increase or decrease by as much as approximately $2.4 billion. The change in the unrecognized tax benefit would result in a payment or income statement recognition. The following table presents a reconciliation of the beginning and ending amount of unrecognized tax benefits. (in millions)202420232022Balance at January 1,$5,401 $5,043 $4,636 Increases based on tax positions related to the current period1,721 1,440 1,234 Increases based on tax positions related to prior periods92 37 123 Decreases based on tax positions related to prior periods(907)(1,110)(824)Decreases related to cash settlements with taxing authorities(148)(9)(126)Balance at December 31,$6,159 $5,401 $5,043 After-tax interest expense/(benefit) and penalties related to income tax liabilities recognized in income tax expense were $288 million, $229 million and $141 million in 2024, 2023 and 2022, respectively.At December 31, 2024 and 2023, in addition to the liability for unrecognized tax benefits, the Firm had accrued $1.7 billion and $1.6 billion, respectively, for income tax-related interest and penalties. Tax examination status JPMorganChase is continually under examination by the Internal Revenue Service, by taxing authorities throughout the world, and by many state and local jurisdictions throughout the U.S. The following table summarizes the status of tax years that remain subject to income tax examination of JPMorganChase and its consolidated subsidiaries by significant jurisdictions as of December 31, 2024.Periods under examinationStatusJPMorganChase - U.S.2011 - 2013Field examination of amended returns; certain matters at Appellate levelJPMorganChase - U.S.2014 - 2020Field examination of original and amended returns; certain matters at Appellate levelJPMorganChase - New York City2015 - 2018Field ExaminationJPMorganChase - U.K.2017 - 2022Field examination of certain select entities Unrecognized tax benefitsAt December 31, 2024, 2023 and 2022, JPMorganChase's unrecognized tax benefits, excluding related interest expense and penalties, were $6.2 billion, $5.4 billion and $5.0 billion, respectively, of which $4.4 billion, $3.9 billion and $3.8 billion, respectively, if recognized, would reduce the annual effective tax rate. Included in the amount of unrecognized tax benefits are certain items that would not affect the effective tax rate if they were recognized in the Consolidated statements of income. These unrecognized items include the tax effect of certain temporary differences, the portion of gross state and local unrecognized tax benefits that would be offset by the benefit from associated U.S. federal income tax deductions, and the portion of gross non-U.S. unrecognized tax benefits that would have offsets in other jurisdictions. JPMorganChase evaluates the need for changes in unrecognized tax benefits based on its anticipated tax return filing positions as part of its U.S. federal and state and local tax returns. In addition, the Firm is presently under audit by a number of taxing authorities, most notably by the Internal Revenue Service, as summarized in the Tax examination status table below. The evaluation of unrecognized tax benefits as well as the potential for audit settlements make it reasonably possible that over the next 12 months the gross balance of unrecognized tax benefits may increase or decrease by as much as approximately $2.4 billion. The change in the unrecognized tax benefit would result in a payment or income statement recognition. The following table presents a reconciliation of the beginning and ending amount of unrecognized tax benefits. (in millions)202420232022Balance at January 1,$5,401 $5,043 $4,636 Increases based on tax positions related to the current period1,721 1,440 1,234 Increases based on tax positions related to prior periods92 37 123 Decreases based on tax positions related to prior periods(907)(1,110)(824)Decreases related to cash settlements with taxing authorities(148)(9)(126)Balance at December 31,$6,159 $5,401 $5,043 After-tax interest expense/(benefit) and penalties related to income tax liabilities recognized in income tax expense were $288 million, $229 million and $141 million in 2024, 2023 and 2022, respectively.At December 31, 2024 and 2023, in addition to the liability for unrecognized tax benefits, the Firm had accrued $1.7 billion and $1.6 billion, respectively, for income tax-related interest and penalties. **Current (2026):** JPMorganChase has recorded deferred tax assets of $2.3 billion at December 31, 2025 in connection with tax attribute carryforwards. GBC and FTC carryforwards were $1.7 billion and $257 million, respectively. State and local capital loss carryforwards were $1.2 billion, non-U.S. NOL carryforwards were $1.0 billion, U.S. federal NOL carryforwards were $193 million, and other U.S. federal tax attributes were $61 million. If not utilized, a portion of the U.S. federal NOL carryforwards and other U.S. federal tax attributes will expire between 2026 and 2036 whereas others have an unlimited carryforward period. Similarly, certain non-U.S. NOL carryforwards will expire between 2028 and 2042 whereas others have an unlimited carryforward period. The state and local capital loss carryforwards will expire between 2026 and 2029. GBC carryforwards will expire in 2045 and FTC carryforwards will expire between 2030 and 2035. The valuation allowance at December 31, 2025 was predominantly driven by deferred tax assets associated with FTCs and non-U.S. NOLs. JPMorganChase has recorded deferred tax assets of $2.3 billion at December 31, 2025 in connection with tax attribute carryforwards. GBC and FTC carryforwards were $1.7 billion and $257 million, respectively. State and local capital loss carryforwards were $1.2 billion, non-U.S. NOL carryforwards were $1.0 billion, U.S. federal NOL carryforwards were $193 million, and other U.S. federal tax attributes were $61 million. If not utilized, a portion of the U.S. federal NOL carryforwards and other U.S. federal tax attributes will expire between 2026 and 2036 whereas others have an unlimited carryforward period. Similarly, certain non-U.S. NOL carryforwards will expire between 2028 and 2042 whereas others have an unlimited carryforward period. The state and local capital loss carryforwards will expire between 2026 and 2029. GBC carryforwards will expire in 2045 and FTC carryforwards will expire between 2030 and 2035. The valuation allowance at December 31, 2025 was predominantly driven by deferred tax assets associated with FTCs and non-U.S. NOLs. 290JPMorgan Chase & Co./2025 Form 10-K 290JPMorgan Chase & Co./2025 Form 10-K 290JPMorgan Chase & Co./2025 Form 10-K 290 JPMorgan Chase & Co./2025 Form 10-K Unrecognized tax benefitsAt December 31, 2025, 2024 and 2023, JPMorganChase's unrecognized tax benefits, excluding related interest expense and penalties, were $5.6 billion, $6.2 billion and $5.4 billion, respectively, of which $4.6 billion, $4.4 billion and $3.9 billion, respectively, if recognized, would reduce the annual effective tax rate. Included in the amount of unrecognized tax benefits are certain items that would not affect the effective tax rate if they were recognized in the Consolidated statements of income. These unrecognized items include the tax effect of certain temporary differences, the portion of gross state and local unrecognized tax benefits that would be offset by the benefit from associated U.S. federal income tax deductions, and the portion of gross non-U.S. unrecognized tax benefits that would have offsets in other jurisdictions. JPMorganChase evaluates the need for changes in unrecognized tax benefits based on its anticipated tax return filing positions as part of its U.S. federal, state and local, and non-U.S. tax returns. In addition, the Firm is presently under audit by a number of taxing authorities, most notably by the Internal Revenue Service, as summarized in the Tax examination status table below. The change in the unrecognized tax benefit would result in a payment or income statement recognition. The following table presents a reconciliation of the beginning and ending amount of unrecognized tax benefits. (in millions)202520242023Balance at January 1,$6,159 $5,401 $5,043 Increases based on tax positions related to the current period609 1,721 1,440 Increases based on tax positions related to prior periods128 92 37 Decreases based on tax positions related to prior periods(1,268)(907)(1,110)Decreases related to cash settlements with taxing authorities(4)(148)(9)Balance at December 31,$5,624 $6,159 $5,401 After-tax interest expense/(benefit) and penalties related to income tax liabilities recognized in income tax expense were $241 million, $288 million and $229 million for the years ended December 31, 2025, 2024 and 2023, respectively.At December 31, 2025 and 2024, in addition to the liability for unrecognized tax benefits, the Firm had accrued $1.9 billion and $1.7 billion, respectively, for income tax-related interest and penalties. Tax examination status JPMorganChase is continually under examination by the Internal Revenue Service, by taxing authorities throughout the world, and by many state and local jurisdictions throughout the U.S. The following table summarizes the status of tax years that remain subject to income tax examination of JPMorganChase and its consolidated subsidiaries by significant jurisdictions as of December 31, 2025.Periods under examinationStatusJPMorganChase - U.S.2011 - 2013Field examination of amended returns; certain matters at Appellate levelJPMorganChase - U.S.2014 - 2020Field examination of original and amended returns; certain matters at Appellate levelJPMorganChase - New York City2015 - 2018Field examinationJPMorganChase - New York State2015 - 2018Field examinationJPMorganChase - U.K.2017 - 2023Field examination of certain select entities Unrecognized tax benefitsAt December 31, 2025, 2024 and 2023, JPMorganChase's unrecognized tax benefits, excluding related interest expense and penalties, were $5.6 billion, $6.2 billion and $5.4 billion, respectively, of which $4.6 billion, $4.4 billion and $3.9 billion, respectively, if recognized, would reduce the annual effective tax rate. Included in the amount of unrecognized tax benefits are certain items that would not affect the effective tax rate if they were recognized in the Consolidated statements of income. These unrecognized items include the tax effect of certain temporary differences, the portion of gross state and local unrecognized tax benefits that would be offset by the benefit from associated U.S. federal income tax deductions, and the portion of gross non-U.S. unrecognized tax benefits that would have offsets in other jurisdictions. JPMorganChase evaluates the need for changes in unrecognized tax benefits based on its anticipated tax return filing positions as part of its U.S. federal, state and local, and non-U.S. tax returns. In addition, the Firm is presently under audit by a number of taxing authorities, most notably by the Internal Revenue Service, as summarized in the Tax examination status table below. The change in the unrecognized tax benefit would result in a payment or income statement recognition. The following table presents a reconciliation of the beginning and ending amount of unrecognized tax benefits. (in millions)202520242023Balance at January 1,$6,159 $5,401 $5,043 Increases based on tax positions related to the current period609 1,721 1,440 Increases based on tax positions related to prior periods128 92 37 Decreases based on tax positions related to prior periods(1,268)(907)(1,110)Decreases related to cash settlements with taxing authorities(4)(148)(9)Balance at December 31,$5,624 $6,159 $5,401 After-tax interest expense/(benefit) and penalties related to income tax liabilities recognized in income tax expense were $241 million, $288 million and $229 million for the years ended December 31, 2025, 2024 and 2023, respectively.At December 31, 2025 and 2024, in addition to the liability for unrecognized tax benefits, the Firm had accrued $1.9 billion and $1.7 billion, respectively, for income tax-related interest and penalties. --- ## Modified Risk: Notes to consolidated financial statements **Key changes:** - Updated: "Net investment hedge gains and losses The following table presents hedging instruments, by contract type, that were used in net investment hedge accounting relationships, and the pre-tax gains/(losses) recorded on such instruments for the years ended December 31, 2025, 2024 and 2023." - Updated: "First, in its capacity as a market-maker, the Firm actively manages a portfolio of credit derivatives by purchasing and selling credit protection, predominantly on corporate debt obligations, to meet the needs of clients." - Updated: "Neither party to the credit-related note has recourse to the defaulting reference entity.The following tables present a summary of the notional amounts of credit derivatives and credit-related notes the Firm sold and purchased as of December 31, 2025 and 2024." - Updated: "First, in its capacity as a market-maker, the Firm actively manages a portfolio of credit derivatives by purchasing and selling credit protection, predominantly on corporate debt obligations, to meet the needs of clients." **Prior (2025):** Credit derivatives Credit derivatives are financial instruments whose value is derived from the credit risk associated with the debt of a third-party issuer (the reference entity) and which allow one party (the protection purchaser) to transfer that risk to another party (the protection seller). Credit derivatives expose the protection purchaser to the creditworthiness of the protection seller, as the protection seller is required to make payments under the contract when the reference entity experiences a credit event, such as a bankruptcy, a failure to pay its obligation or a restructuring. The seller of credit protection receives a premium for providing protection but has the risk that the underlying instrument referenced in the contract will be subject to a credit event. The Firm is both a purchaser and seller of protection in the credit derivatives market and uses these derivatives for two primary purposes. First, in its capacity as a market-maker, the Firm actively manages a portfolio of credit derivatives by purchasing and selling credit protection, predominantly on corporate debt obligations, to meet the needs of customers. Second, as an end-user, the Firm uses credit derivatives to manage credit risk associated with lending exposures (loans and unfunded commitments) in its wholesale and consumer businesses and derivatives counterparty exposures in its wholesale businesses, and to manage the credit risk arising from certain financial instruments in the Firm's market-making businesses. Following is a summary of various types of credit derivatives. Credit default swaps Credit derivatives may reference the credit of either a single reference entity ("single-name"), broad-based index or portfolio. The Firm purchases and sells protection on both single- name and index-reference obligations. Single-name CDS and index CDS contracts are either OTC or OTC-cleared derivative contracts. Single-name CDS are used to manage the default risk of a single reference entity, while index CDS contracts are used to manage the credit risk associated with the broader credit markets or credit market segments. Like the S&P 500 and other market indices, a CDS index consists of a portfolio of CDS across many reference entities. New series of CDS indices are periodically established with a new underlying portfolio of reference entities to reflect changes in the credit markets. If one of the reference entities in the index experiences a credit event, then the reference entity that defaulted is removed from the index. CDS can also be referenced against specific portfolios of reference names or against customized exposure levels: for example, to provide protection against the first $1 million of realized credit losses in a $10 million portfolio of exposure. Such structures are commonly known as tranche CDS. For both single-name CDS contracts and index CDS contracts, upon the occurrence of a credit event, under the terms of a CDS contract neither party to the CDS contract has recourse to the reference entity. The protection purchaser has recourse to the protection seller for the difference between the face value of the CDS contract and the fair value of the reference obligation at settlement of the credit derivative contract, also known as the recovery value. The protection purchaser does not need to hold the debt instrument of the underlying reference entity in order to receive amounts due under the CDS contract when a credit event occurs. Credit-related notes A credit-related note is a funded derivative with a credit risk component where the issuer of the credit-related note purchases from the note investor credit protection on a reference entity or an index. Under the contract, the investor pays the issuer the par value of the note at the inception of the transaction, and in return, the issuer makes periodic payments to the investor, based on the credit risk of the referenced entity. The issuer also repays the investor the par value of the note at maturity unless the reference entity (or one of the entities that makes up a reference index) experiences a specified credit event. If a credit event occurs, the issuer is not obligated to repay the par value of the note, but rather, the issuer pays the investor the difference between the par value of the note and the fair value of the defaulted reference obligation at the time of settlement. Neither party to the credit-related note has recourse to the defaulting reference entity.The following tables present a summary of the notional amounts of credit derivatives and credit-related notes the Firm sold and purchased as of December 31, 2024 and 2023. Upon a credit event, the Firm as a seller of protection would typically pay out a percentage of the full notional amount of net protection sold, as the amount actually required to be paid on the contracts takes into account the recovery value of the reference obligation at the time of settlement. The Firm manages the credit risk on contracts to sell protection by purchasing protection with identical or similar underlying reference entities. Other purchased protection referenced in the following tables includes credit derivatives bought on related, but not identical, reference positions (including indices, portfolio coverage and other reference points) as well as protection purchased by CIB through credit-related notes. Other purchased protection also includes credit protection against certain loans in the retained lending portfolio through the issuance of credit derivatives and credit-related notes. Credit derivatives Credit derivatives are financial instruments whose value is derived from the credit risk associated with the debt of a third-party issuer (the reference entity) and which allow one party (the protection purchaser) to transfer that risk to another party (the protection seller). Credit derivatives expose the protection purchaser to the creditworthiness of the protection seller, as the protection seller is required to make payments under the contract when the reference entity experiences a credit event, such as a bankruptcy, a failure to pay its obligation or a restructuring. The seller of credit protection receives a premium for providing protection but has the risk that the underlying instrument referenced in the contract will be subject to a credit event. The Firm is both a purchaser and seller of protection in the credit derivatives market and uses these derivatives for two primary purposes. First, in its capacity as a market-maker, the Firm actively manages a portfolio of credit derivatives by purchasing and selling credit protection, predominantly on corporate debt obligations, to meet the needs of customers. Second, as an end-user, the Firm uses credit derivatives to manage credit risk associated with lending exposures (loans and unfunded commitments) in its wholesale and consumer businesses and derivatives counterparty exposures in its wholesale businesses, and to manage the credit risk arising from certain financial instruments in the Firm's market-making businesses. Following is a summary of various types of credit derivatives. Credit default swaps Credit derivatives may reference the credit of either a single reference entity ("single-name"), broad-based index or portfolio. The Firm purchases and sells protection on both single- name and index-reference obligations. Single-name CDS and index CDS contracts are either OTC or OTC-cleared derivative contracts. Single-name CDS are used to manage the default risk of a single reference entity, while index CDS contracts are used to manage the credit risk associated with the broader credit markets or credit market segments. Like the S&P 500 and other market indices, a CDS index consists of a portfolio of CDS across many reference entities. New series of CDS indices are periodically established with a new underlying portfolio of reference entities to reflect changes in the credit markets. If one of the reference entities in the index experiences a credit event, then the reference entity that defaulted is removed from the index. CDS can also be referenced against specific portfolios of reference names or against customized exposure levels: for example, to provide protection against the first $1 million of realized credit losses in a **Current (2026):** Net investment hedge gains and losses The following table presents hedging instruments, by contract type, that were used in net investment hedge accounting relationships, and the pre-tax gains/(losses) recorded on such instruments for the years ended December 31, 2025, 2024 and 2023. Gains/(losses) recorded in income(a) and other comprehensive income/(loss)202520242023Year ended December 31,(in millions)Amounts recorded in income(b)Amounts recorded in OCI Amounts recorded in income(b)Amounts recorded inOCIAmounts recorded in income(b)Amounts recorded inOCIForeign exchange derivatives$431$(6,028)$467$4,411$384$(1,732) Gains/(losses) recorded in income(a) and other comprehensive income/(loss) Amounts recorded in income(b) Amounts recorded in income(b) Amounts recorded in income(b) (a)Certain components of hedging derivatives are permitted to be excluded from the assessment of hedge effectiveness, such as forward points on foreign exchange forward contracts. The changes in fair value of these amounts are recorded in net interest income. (b)Excludes amounts reclassified from AOCI to income on the sale or liquidation of hedged entities. During the years ended December 31, 2025 and 2024, the Firm reclassified net pre-tax gains of $14 million and $89 million, respectively, to other income/expense. During the year ended December 31, 2023, the Firm reclassified a net pre-tax loss of $(35) million to other revenue including the impact of the acquisition of CIFM. Refer to Note 24 for further information. Gains and losses on derivatives used for specified risk management purposes The following table presents pre-tax gains/(losses) recorded on a limited number of derivatives, not designated in hedge accounting relationships, that are used to manage risks associated with certain specified assets and liabilities, including certain risks arising from mortgage commitments, warehouse loans, MSRs, wholesale lending exposures, and foreign currency denominated assets and liabilities. Derivatives gains/(losses) recorded in incomeYear ended December 31, (in millions)202520242023Contract typeInterest rate(a)$(34)$(425)$(135)Credit(b)(616)(604)(441)Foreign exchange(c)82 (10)(2)Equity(d)(21) - - Total$(589)$(1,039)$(578)(a)Primarily represents interest rate derivatives used to hedge the interest rate risk inherent in mortgage commitments, warehouse loans and MSRs, as well as written commitments to originate warehouse loans. Gains and losses were recorded predominantly in mortgage fees and related income.(b)Relates to credit derivatives used to mitigate credit risk associated with lending exposures in the Firm's wholesale businesses. These derivatives do not include credit derivatives used to mitigate counterparty credit risk arising from derivative receivables, which is included in gains and losses on derivatives related to market-making activities and other derivatives. Gains and losses were recorded in principal transactions revenue.(c)Primarily relates to derivatives used to mitigate foreign exchange risk of specified foreign currency-denominated assets and liabilities. Gains and losses were recorded in principal transactions revenue.(d)Gains and losses were recorded in principal transactions revenue.Gains and losses on derivatives related to market-making activities and other derivatives The Firm makes markets in derivatives in order to meet the needs of clients and uses derivatives to manage certain risks associated with net open risk positions from its market-making activities, including the counterparty credit risk arising from derivative receivables. All derivatives not included in the hedge accounting or specified risk management categories above are included in this category. Gains and losses on these derivatives are primarily recorded in principal transactions revenue. Refer to Note 6 for information on principal transactions revenue. Gains and losses on derivatives used for specified risk management purposes The following table presents pre-tax gains/(losses) recorded on a limited number of derivatives, not designated in hedge accounting relationships, that are used to manage risks associated with certain specified assets and liabilities, including certain risks arising from mortgage commitments, warehouse loans, MSRs, wholesale lending exposures, and foreign currency denominated assets and liabilities. Derivatives gains/(losses) recorded in incomeYear ended December 31, (in millions)202520242023Contract typeInterest rate(a)$(34)$(425)$(135)Credit(b)(616)(604)(441)Foreign exchange(c)82 (10)(2)Equity(d)(21) - - Total$(589)$(1,039)$(578)(a)Primarily represents interest rate derivatives used to hedge the interest rate risk inherent in mortgage commitments, warehouse loans and MSRs, as well as written commitments to originate warehouse loans. Gains and losses were recorded predominantly in mortgage fees and related income.(b)Relates to credit derivatives used to mitigate credit risk associated with lending exposures in the Firm's wholesale businesses. These derivatives do not include credit derivatives used to mitigate counterparty credit risk arising from derivative receivables, which is included in gains and losses on derivatives related to market-making activities and other derivatives. Gains and losses were recorded in principal transactions revenue.(c)Primarily relates to derivatives used to mitigate foreign exchange risk of specified foreign currency-denominated assets and liabilities. Gains and losses were recorded in principal transactions revenue.(d)Gains and losses were recorded in principal transactions revenue. Gains and losses on derivatives used for specified risk management purposes The following table presents pre-tax gains/(losses) recorded on a limited number of derivatives, not designated in hedge accounting relationships, that are used to manage risks associated with certain specified assets and liabilities, including certain risks arising from mortgage commitments, warehouse loans, MSRs, wholesale lending exposures, and foreign currency denominated assets and liabilities. Derivatives gains/(losses) recorded in incomeYear ended December 31, (in millions)202520242023Contract typeInterest rate(a)$(34)$(425)$(135)Credit(b)(616)(604)(441)Foreign exchange(c)82 (10)(2)Equity(d)(21) - - Total$(589)$(1,039)$(578) Interest rate(a) Credit(b) Foreign exchange(c) Equity(d) (a)Primarily represents interest rate derivatives used to hedge the interest rate risk inherent in mortgage commitments, warehouse loans and MSRs, as well as written commitments to originate warehouse loans. Gains and losses were recorded predominantly in mortgage fees and related income. (b)Relates to credit derivatives used to mitigate credit risk associated with lending exposures in the Firm's wholesale businesses. These derivatives do not include credit derivatives used to mitigate counterparty credit risk arising from derivative receivables, which is included in gains and losses on derivatives related to market-making activities and other derivatives. Gains and losses were recorded in principal transactions revenue. (c)Primarily relates to derivatives used to mitigate foreign exchange risk of specified foreign currency-denominated assets and liabilities. Gains and losses were recorded in principal transactions revenue. (d)Gains and losses were recorded in principal transactions revenue. Gains and losses on derivatives related to market-making activities and other derivatives The Firm makes markets in derivatives in order to meet the needs of clients and uses derivatives to manage certain risks associated with net open risk positions from its market-making activities, including the counterparty credit risk arising from derivative receivables. All derivatives not included in the hedge accounting or specified risk management categories above are included in this category. Gains and losses on these derivatives are primarily recorded in principal transactions revenue. Refer to Note 6 for information on principal transactions revenue. Gains and losses on derivatives related to market-making activities and other derivatives The Firm makes markets in derivatives in order to meet the needs of clients and uses derivatives to manage certain risks associated with net open risk positions from its market-making activities, including the counterparty credit risk arising from derivative receivables. All derivatives not included in the hedge accounting or specified risk management categories above are included in this category. Gains and losses on these derivatives are primarily recorded in principal transactions revenue. Refer to Note 6 for information on principal transactions revenue. 214JPMorgan Chase & Co./2025 Form 10-K 214JPMorgan Chase & Co./2025 Form 10-K 214JPMorgan Chase & Co./2025 Form 10-K 214 JPMorgan Chase & Co./2025 Form 10-K Credit derivatives Credit derivatives are financial instruments whose value is derived from the credit risk associated with the debt of a third-party issuer (the reference entity) and which allow one party (the protection purchaser) to transfer that risk to another party (the protection seller). Credit derivatives expose the protection purchaser to the creditworthiness of the protection seller, as the protection seller is required to make payments under the contract when the reference entity experiences a credit event, such as a bankruptcy, a failure to pay its obligation or a restructuring. The seller of credit protection receives a premium for providing protection but has the risk that the underlying instrument referenced in the contract will be subject to a credit event. The Firm is both a purchaser and seller of protection in the credit derivatives market and uses these derivatives for two primary purposes. First, in its capacity as a market-maker, the Firm actively manages a portfolio of credit derivatives by purchasing and selling credit protection, predominantly on corporate debt obligations, to meet the needs of clients. Second, as an end-user, the Firm uses credit derivatives to manage credit risk associated with lending exposures (loans and unfunded commitments) in its wholesale and consumer businesses and derivatives counterparty exposures in its wholesale businesses, and to manage the credit risk arising from certain financial instruments in the Firm's market-making businesses. Following is a summary of various types of credit derivatives. Credit default swaps Credit derivatives may reference the credit of either a single reference entity ("single-name"), broad-based index or portfolio. The Firm purchases and sells protection on both single- name and index-reference obligations. Single-name CDS and index CDS contracts are either OTC or OTC-cleared derivative contracts. Single-name CDS are used to manage the default risk of a single reference entity, while index CDS contracts are used to manage the credit risk associated with the broader credit markets or credit market segments. Like the S&P 500 and other market indices, a CDS index consists of a portfolio of CDS across many reference entities. New series of CDS indices are periodically established with a new underlying portfolio of reference entities to reflect changes in the credit markets. If one of the reference entities in the index experiences a credit event, then the reference entity that defaulted is removed from the index. CDS can also be referenced against specific portfolios of reference names or against customized exposure levels: for example, to provide protection against the first $1 million of realized credit losses in a $10 million portfolio of exposure. Such structures are commonly known as tranche CDS. For both single-name CDS contracts and index CDS contracts, upon the occurrence of a credit event, under the terms of a CDS contract neither party to the CDS contract has recourse to the reference entity. The protection purchaser has recourse to the protection seller for the difference between the face value of the CDS contract and the fair value of the reference obligation at settlement of the credit derivative contract, also known as the recovery value. The protection purchaser does not need to hold the debt instrument of the underlying reference entity in order to receive amounts due under the CDS contract when a credit event occurs. Credit-related notes A credit-related note is a funded derivative with a credit risk component where the issuer of the credit-related note purchases from the note investor credit protection on a reference entity or an index. Under the contract, the investor pays the issuer the par value of the note at the inception of the transaction, and in return, the issuer makes periodic payments to the investor, based on the credit risk of the referenced entity. The issuer also repays the investor the par value of the note at maturity unless the reference entity (or one of the entities that makes up a reference index) experiences a specified credit event. If a credit event occurs, the issuer is not obligated to repay the par value of the note, but rather, the issuer pays the investor the difference between the par value of the note and the fair value of the defaulted reference obligation at the time of settlement. Neither party to the credit-related note has recourse to the defaulting reference entity.The following tables present a summary of the notional amounts of credit derivatives and credit-related notes the Firm sold and purchased as of December 31, 2025 and 2024. Upon a credit event, the Firm as a seller of protection would typically pay out a percentage of the full notional amount of net protection sold, as the amount actually required to be paid on the contracts takes into account the recovery value of the reference obligation at the time of settlement. The Firm manages the credit risk on contracts to sell protection by purchasing protection with identical or similar underlying reference entities. Other purchased protection referenced in the following tables includes credit derivatives bought on related, but not identical, reference positions (including indices, portfolio coverage and other reference points) as well as protection purchased by CIB through credit-related notes. Other purchased protection also includes credit protection against certain loans in the retained lending portfolio through the issuance of credit derivatives and credit-related notes. Credit derivatives Credit derivatives are financial instruments whose value is derived from the credit risk associated with the debt of a third-party issuer (the reference entity) and which allow one party (the protection purchaser) to transfer that risk to another party (the protection seller). Credit derivatives expose the protection purchaser to the creditworthiness of the protection seller, as the protection seller is required to make payments under the contract when the reference entity experiences a credit event, such as a bankruptcy, a failure to pay its obligation or a restructuring. The seller of credit protection receives a premium for providing protection but has the risk that the underlying instrument referenced in the contract will be subject to a credit event. The Firm is both a purchaser and seller of protection in the credit derivatives market and uses these derivatives for two primary purposes. First, in its capacity as a market-maker, the Firm actively manages a portfolio of credit derivatives by purchasing and selling credit protection, predominantly on corporate debt obligations, to meet the needs of clients. Second, as an end-user, the Firm uses credit derivatives to manage credit risk associated with lending exposures (loans and unfunded commitments) in its wholesale and consumer businesses and derivatives counterparty exposures in its wholesale businesses, and to manage the credit risk arising from certain financial instruments in the Firm's market-making businesses. Following is a summary of various types of credit derivatives. Credit default swaps Credit derivatives may reference the credit of either a single reference entity ("single-name"), broad-based index or portfolio. The Firm purchases and sells protection on both single- name and index-reference obligations. Single-name CDS and index CDS contracts are either OTC or OTC-cleared derivative contracts. Single-name CDS are used to manage the default risk of a single reference entity, while index CDS contracts are used to manage the credit risk associated with the broader credit markets or credit market segments. Like the S&P 500 and other market indices, a CDS index consists of a portfolio of CDS across many reference entities. New series of CDS indices are periodically established with a new underlying portfolio of reference entities to reflect changes in the credit markets. If one of the reference entities in the index experiences a credit event, then the reference entity that defaulted is removed from the index. CDS can also be referenced against specific portfolios of reference names or against customized exposure levels: for example, to provide protection against the first $1 million of realized credit losses in a --- ## Modified Risk: Geographic and FICO composition of credit card loans **Key changes:** - Updated: "At December 31, 2025, $116.3 billion, or 47% of the total retained credit card loan portfolio, was concentrated in California, Texas, New York, Florida and Illinois, compared to $109.0 billion, or 47%, at December 31, 2024." - Updated: "JPMorgan Chase & Co./2025 Form 10-K117 JPMorgan Chase & Co./2025 Form 10-K117 JPMorgan Chase & Co./2025 Form 10-K117 JPMorgan Chase & Co./2025 Form 10-K 117" **Prior (2025):** At December 31, 2024, $109.0 billion, or 47% of the total retained credit card loan portfolio, was concentrated in California, Texas, New York, Florida and Illinois, compared to $98.1 billion, or 46%, at December 31, 2023. Refer to Note 12 for further information about this portfolio, including information about delinquencies, geographic and FICO composition. JPMorgan Chase & Co./2024 Form 10-K125 JPMorgan Chase & Co./2024 Form 10-K125 JPMorgan Chase & Co./2024 Form 10-K125 JPMorgan Chase & Co./2024 Form 10-K 125 **Current (2026):** At December 31, 2025, $116.3 billion, or 47% of the total retained credit card loan portfolio, was concentrated in California, Texas, New York, Florida and Illinois, compared to $109.0 billion, or 47%, at December 31, 2024. Refer to Note 12 for further information about this portfolio, including information about delinquencies, geographic and FICO composition. JPMorgan Chase & Co./2025 Form 10-K117 JPMorgan Chase & Co./2025 Form 10-K117 JPMorgan Chase & Co./2025 Form 10-K117 JPMorgan Chase & Co./2025 Form 10-K 117 --- ## Modified Risk: Principal transactions **Key changes:** - Updated: "Principal transactions revenue is driven by many factors, including: •the bid-offer spread, which is the difference between the price at which a market participant is willing and able to sell an instrument to the Firm and the price at which another market participant is willing and able to buy it from the Firm, and vice versa; and •realized and unrealized gains and losses on financial instruments and commodities transactions, including those accounted for under the fair value option, primarily used in client-driven market-making activities." - Updated: "Year ended December 31, (in millions)202520242023Lending-related fees(a)$2,217 $2,192 $2,365 Deposit-related fees6,876 5,414 5,048 Total lending- and deposit-related fees$9,093 $7,606 $7,413 (a) Includes the amortization of the fair value discount on certain acquired lending-related commitments associated with First Republic, predominantly in AWM and CIB." - Updated: "These fees are recorded as revenue at the time the service is rendered or, in the case of certain distribution fees, based on the underlying fund's asset value or investor redemption activity.The following table presents the components of asset management fees.Year ended December 31, (in millions)202520242023Asset management feesInvestment management fees$19,921 $17,425 $14,908 All other asset management fees406 376 312 Total asset management fees$20,327 $17,801 $15,220 Asset management fees are earned primarily by AWM and CCB.Commissions and other feesThis revenue category includes commissions and fees from brokerage and custody services, and other products.Brokerage commissions represents commissions earned when the Firm acts as a broker, by facilitating its clients' purchases and sales of securities and other financial instruments." - Updated: "The Firm's businesses and other activities generally utilize a variety of instrument types in connection with their transactions; accordingly, the principal transactions revenue presented in the table below is not representative of the total revenue of any individual business or activity.Year ended December 31, (in millions)202520242023Principal transactions revenue by instrument typeInterest rate(a)$4,240 $3,631 $5,607 Credit(b)558 1,545 1,434 Foreign exchange5,644 4,874 5,082 Equity14,844 13,476 10,229 Commodity1,989 1,194 2,202 Total revenue by instrument type27,275 24,720 24,554 Private equity gains/(losses)(63)67 (94)Principal transactions$27,212 $24,787 $24,460 (a)Includes the impact of changes in funding valuation adjustments on derivatives.(b)Includes the impact of changes in credit valuation adjustments on derivatives, net of the associated hedging activities.Principal transactions revenue is earned primarily by CIB.Lending- and deposit-related fees Lending-related fees include fees earned from loan commitments, standby letters of credit, financial guarantees and other loan-servicing activities." - Updated: "Year ended December 31, (in millions)202520242023Lending-related fees(a)$2,217 $2,192 $2,365 Deposit-related fees6,876 5,414 5,048 Total lending- and deposit-related fees$9,093 $7,606 $7,413 (a) Includes the amortization of the fair value discount on certain acquired lending-related commitments associated with First Republic, predominantly in AWM and CIB." **Prior (2025):** types in connection with their market-making and related risk-management activities; accordingly, the trading revenue presented in the table below is not representative of the total revenue of any individual LOB.Year ended December 31, (in millions)202420232022Trading revenue by instrument typeInterest rate(a)$3,631 $5,607 $3,010 Credit(b)1,545 1,434 1,412 (c)Foreign exchange4,874 5,082 5,119 Equity13,476 10,229 8,068 Commodity1,194 2,202 2,348 Total trading revenue24,720 24,554 19,957 Private equity gains/(losses)67 (94)(45)Principal transactions$24,787 $24,460 $19,912 (a)Includes the impact of changes in funding valuation adjustments on derivatives.(b)Includes the impact of changes in credit valuation adjustments on derivatives, net of the associated hedging activities.(c)Includes net markdowns on held-for-sale positions, primarily unfunded commitments, in the bridge financing portfolio.Principal transactions revenue is earned primarily by CIB.Lending- and deposit-related fees Lending-related fees include fees earned from loan commitments, standby letters of credit, financial guarantees, and other loan-servicing activities. Deposit-related fees include fees earned from performing cash management activities, and providing overdraft and other deposit account services. Deposit-related fees also include the impact of credits earned by clients that reduce such fees. Lending- and deposit-related fees are recognized over the period in which the related service is provided. Refer to Note 28 for further information on lending-related commitments.The following table presents the components of lending- and deposit-related fees. Year ended December 31, (in millions)202420232022Lending-related fees$2,192 (a)$2,365 (a)$1,468 Deposit-related fees5,414 5,048 5,630 Total lending- and deposit-related fees$7,606 $7,413 $7,098 (a) Includes the amortization of the fair value discount on certain acquired lending-related commitments associated with First Republic, predominantly in AWM and CIB. The discount is deferred in other liabilities and recognized on a straight-line basis over the commitment period and was largely recognized in 2023 as the commitments were generally short term. Refer to Note 34 for additional information.Lending- and deposit-related fees are earned by CCB, CIB and AWM. Asset management feesInvestment management fees include fees associated with assets the Firm manages on behalf of its clients, including investors in Firm-sponsored funds and owners of separately managed investment accounts. Management fees are typically based on the value of assets under management and are collected and recognized at the end of each period over which the management services are provided and the value of the managed assets is known. The Firm also receives performance-based management fees, which are earned based on exceeding certain benchmarks or other performance targets and are accrued and recognized when the probability of reversal is remote, typically at the end of the related billing period.All other asset management fees include commissions earned on the sales or distribution of mutual funds to clients. These fees are recorded as revenue at the time the service is rendered or, in the case of certain distribution fees, based on the underlying fund's asset value or investor redemption activity.The following table presents the components of asset management fees.Year ended December 31, (in millions)202420232022Asset management feesInvestment management fees$17,425 $14,908 $13,765 All other asset management fees376 312 331 Total asset management fees$17,801 $15,220 $14,096 Asset management fees earned primarily by AWM and CCB.Commissions and other feesThis revenue category includes commissions and fees from brokerage and custody services, and other products.Brokerage commissions represents commissions earned when the Firm acts as a broker, by facilitating its clients' purchases and sales of securities and other financial instruments. Brokerage commissions are collected and recognized as revenue upon occurrence of the client transaction. The Firm reports certain costs paid to third-party clearing houses and exchanges net against commission revenue.Administration fees predominantly include fees for custody, funds services, securities lending and securities clearance. These fees are recorded as revenue over the period in which the related service is provided. types in connection with their market-making and related risk-management activities; accordingly, the trading revenue presented in the table below is not representative of the total revenue of any individual LOB.Year ended December 31, (in millions)202420232022Trading revenue by instrument typeInterest rate(a)$3,631 $5,607 $3,010 Credit(b)1,545 1,434 1,412 (c)Foreign exchange4,874 5,082 5,119 Equity13,476 10,229 8,068 Commodity1,194 2,202 2,348 Total trading revenue24,720 24,554 19,957 Private equity gains/(losses)67 (94)(45)Principal transactions$24,787 $24,460 $19,912 (a)Includes the impact of changes in funding valuation adjustments on derivatives.(b)Includes the impact of changes in credit valuation adjustments on derivatives, net of the associated hedging activities.(c)Includes net markdowns on held-for-sale positions, primarily unfunded commitments, in the bridge financing portfolio.Principal transactions revenue is earned primarily by CIB.Lending- and deposit-related fees Lending-related fees include fees earned from loan commitments, standby letters of credit, financial guarantees, and other loan-servicing activities. Deposit-related fees include fees earned from performing cash management activities, and providing overdraft and other deposit account services. Deposit-related fees also include the impact of credits earned by clients that reduce such fees. Lending- and deposit-related fees are recognized over the period in which the related service is provided. Refer to Note 28 for further information on lending-related commitments.The following table presents the components of lending- and deposit-related fees. Year ended December 31, (in millions)202420232022Lending-related fees$2,192 (a)$2,365 (a)$1,468 Deposit-related fees5,414 5,048 5,630 Total lending- and deposit-related fees$7,606 $7,413 $7,098 (a) Includes the amortization of the fair value discount on certain acquired lending-related commitments associated with First Republic, predominantly in AWM and CIB. The discount is deferred in other liabilities and recognized on a straight-line basis over the commitment period and was largely recognized in 2023 as the commitments were generally short term. Refer to Note 34 for additional information.Lending- and deposit-related fees are earned by CCB, CIB and AWM. types in connection with their market-making and related risk-management activities; accordingly, the trading revenue presented in the table below is not representative of the total revenue of any individual LOB. Year ended December 31, (in millions)202420232022Trading revenue by instrument typeInterest rate(a)$3,631 $5,607 $3,010 Credit(b)1,545 1,434 1,412 (c)Foreign exchange4,874 5,082 5,119 Equity13,476 10,229 8,068 Commodity1,194 2,202 2,348 Total trading revenue24,720 24,554 19,957 Private equity gains/(losses)67 (94)(45)Principal transactions$24,787 $24,460 $19,912 **Current (2026):** Principal transactions revenue is driven by many factors, including: •the bid-offer spread, which is the difference between the price at which a market participant is willing and able to sell an instrument to the Firm and the price at which another market participant is willing and able to buy it from the Firm, and vice versa; and •realized and unrealized gains and losses on financial instruments and commodities transactions, including those accounted for under the fair value option, primarily used in client-driven market-making activities. -Realized gains and losses result from the sale of instruments, closing out or termination of transactions, or interim cash payments. -Unrealized gains and losses result from changes in valuation. In connection with its client-driven market-making activities, the Firm transacts in debt and equity instruments, derivatives and commodities, including physical commodities inventories and financial instruments that reference commodities. Principal transactions revenue also includes realized and unrealized gains and losses related to: •derivatives designated in qualifying hedge accounting relationships, primarily fair value hedges of commodity and foreign exchange risk; •derivatives used for specific risk management purposes, primarily to mitigate credit, foreign exchange and interest rate risks. Refer to Note 5 for further information on the income statement classification of gains and losses from derivatives activities. In the financial commodity markets, the Firm transacts in OTC derivatives (e.g., swaps, forwards, options) and ETD that reference a wide range of underlying commodities. In the physical commodity markets, the Firm primarily purchases and sells precious and base metals, natural gas, and may hold other commodities inventories under financing and other arrangements with clients. The following table presents all realized and unrealized gains and losses recorded in principal transactions revenue by instrument type. This table excludes interest income and interest expense on interest-earning assets and interest-bearing liabilities recorded within net interest income. Refer to Note 7 for further information on interest income and interest expense. 218JPMorgan Chase & Co./2025 Form 10-K 218JPMorgan Chase & Co./2025 Form 10-K 218JPMorgan Chase & Co./2025 Form 10-K 218 JPMorgan Chase & Co./2025 Form 10-K The Firm's businesses and other activities generally utilize a variety of instrument types in connection with their transactions; accordingly, the principal transactions revenue presented in the table below is not representative of the total revenue of any individual business or activity.Year ended December 31, (in millions)202520242023Principal transactions revenue by instrument typeInterest rate(a)$4,240 $3,631 $5,607 Credit(b)558 1,545 1,434 Foreign exchange5,644 4,874 5,082 Equity14,844 13,476 10,229 Commodity1,989 1,194 2,202 Total revenue by instrument type27,275 24,720 24,554 Private equity gains/(losses)(63)67 (94)Principal transactions$27,212 $24,787 $24,460 (a)Includes the impact of changes in funding valuation adjustments on derivatives.(b)Includes the impact of changes in credit valuation adjustments on derivatives, net of the associated hedging activities.Principal transactions revenue is earned primarily by CIB.Lending- and deposit-related fees Lending-related fees include fees earned from loan commitments, standby letters of credit, financial guarantees and other loan-servicing activities. Deposit-related fees include fees earned from performing cash management activities, and providing overdraft and other deposit account services. Deposit-related fees also include the impact of credits earned by clients that reduce such fees. Lending- and deposit-related fees are recognized over the period in which the related service is provided. Refer to Note 28 for further information on lending-related commitments.The following table presents the components of lending- and deposit-related fees. Year ended December 31, (in millions)202520242023Lending-related fees(a)$2,217 $2,192 $2,365 Deposit-related fees6,876 5,414 5,048 Total lending- and deposit-related fees$9,093 $7,606 $7,413 (a) Includes the amortization of the fair value discount on certain acquired lending-related commitments associated with First Republic, predominantly in AWM and CIB. The discount, which is deferred in other liabilities and recognized on a straight-line basis over the commitment period, continues to decline as commitments expire. Refer to Note 34 for additional information.Lending- and deposit-related fees are earned by CIB, CCB and AWM. Asset management feesInvestment management fees include fees associated with assets the Firm manages on behalf of its clients, including investors in Firm-sponsored funds and owners of separately managed investment accounts. Management fees are typically based on the value of assets under management and are collected and recognized at the end of each period over which the management services are provided and the value of the managed assets is known. The Firm also receives performance-based management fees, which are earned based on exceeding certain benchmarks or other performance targets and are accrued and recognized when the probability of reversal is remote, typically at the end of the related billing period.All other asset management fees include commissions earned on the sales or distribution of mutual funds to clients. These fees are recorded as revenue at the time the service is rendered or, in the case of certain distribution fees, based on the underlying fund's asset value or investor redemption activity.The following table presents the components of asset management fees.Year ended December 31, (in millions)202520242023Asset management feesInvestment management fees$19,921 $17,425 $14,908 All other asset management fees406 376 312 Total asset management fees$20,327 $17,801 $15,220 Asset management fees are earned primarily by AWM and CCB.Commissions and other feesThis revenue category includes commissions and fees from brokerage and custody services, and other products.Brokerage commissions represents commissions earned when the Firm acts as a broker, by facilitating its clients' purchases and sales of securities and other financial instruments. Brokerage commissions are collected and recognized as revenue upon occurrence of the client transaction. The Firm reports certain costs paid to third-party clearing houses and exchanges net against commission revenue.Administration fees predominantly include fees for custody, funds services, securities lending and securities clearance. These fees are recorded as revenue over the period in which the related service is provided. The Firm's businesses and other activities generally utilize a variety of instrument types in connection with their transactions; accordingly, the principal transactions revenue presented in the table below is not representative of the total revenue of any individual business or activity.Year ended December 31, (in millions)202520242023Principal transactions revenue by instrument typeInterest rate(a)$4,240 $3,631 $5,607 Credit(b)558 1,545 1,434 Foreign exchange5,644 4,874 5,082 Equity14,844 13,476 10,229 Commodity1,989 1,194 2,202 Total revenue by instrument type27,275 24,720 24,554 Private equity gains/(losses)(63)67 (94)Principal transactions$27,212 $24,787 $24,460 (a)Includes the impact of changes in funding valuation adjustments on derivatives.(b)Includes the impact of changes in credit valuation adjustments on derivatives, net of the associated hedging activities.Principal transactions revenue is earned primarily by CIB.Lending- and deposit-related fees Lending-related fees include fees earned from loan commitments, standby letters of credit, financial guarantees and other loan-servicing activities. Deposit-related fees include fees earned from performing cash management activities, and providing overdraft and other deposit account services. Deposit-related fees also include the impact of credits earned by clients that reduce such fees. Lending- and deposit-related fees are recognized over the period in which the related service is provided. Refer to Note 28 for further information on lending-related commitments.The following table presents the components of lending- and deposit-related fees. Year ended December 31, (in millions)202520242023Lending-related fees(a)$2,217 $2,192 $2,365 Deposit-related fees6,876 5,414 5,048 Total lending- and deposit-related fees$9,093 $7,606 $7,413 (a) Includes the amortization of the fair value discount on certain acquired lending-related commitments associated with First Republic, predominantly in AWM and CIB. The discount, which is deferred in other liabilities and recognized on a straight-line basis over the commitment period, continues to decline as commitments expire. Refer to Note 34 for additional information.Lending- and deposit-related fees are earned by CIB, CCB and AWM. The Firm's businesses and other activities generally utilize a variety of instrument types in connection with their transactions; accordingly, the principal transactions revenue presented in the table below is not representative of the total revenue of any individual business or activity. Year ended December 31, (in millions)202520242023Principal transactions revenue by instrument typeInterest rate(a)$4,240 $3,631 $5,607 Credit(b)558 1,545 1,434 Foreign exchange5,644 4,874 5,082 Equity14,844 13,476 10,229 Commodity1,989 1,194 2,202 Total revenue by instrument type27,275 24,720 24,554 Private equity gains/(losses)(63)67 (94)Principal transactions$27,212 $24,787 $24,460 --- ## Modified Risk: Note 10 - Investment securities **Key changes:** - Added: "During the third quarter of 2025, the Firm transferred $44.1 billion of investment securities from AFS to HTM for asset-liability management purposes." - Added: "AOCI included pretax unrealized gains of $575 million on the securities at the date of transfer.Unrealized gains or losses at the date of transfer of these securities continue to be reported in AOCI and are amortized into interest income on a level-yield basis over the remaining life of the securities." - Added: "This amortization will offset the effect on interest income of the amortization of the premium or discount resulting from the transfer recorded at fair value.Effective January 1, 2023, the Firm adopted the portfolio layer method hedge accounting guidance which permitted a transfer of HTM securities to AFS upon adoption." - Added: "The Firm transferred obligations of U.S." - Added: "states and municipalities with a carrying value of $7.1 billion resulting in the recognition of $38 million net pre-tax unrealized losses in AOCI." **Prior (2025):** Investment securities consist of debt securities that are classified as AFS or HTM. Debt securities classified as trading assets are discussed in Note 2. Predominantly all of the Firm's AFS and HTM securities are held by Treasury and CIO in connection with its asset-liability management activities.AFS securities are carried at fair value on the Consolidated balance sheets. Unrealized gains and losses, after any applicable hedge accounting adjustments or allowance for credit losses, are reported in AOCI. The specific identification method is used to determine realized gains and losses on AFS securities, which are included in investment securities gains/(losses) on the Consolidated statements of income. HTM securities, which the Firm has the intent and ability to hold until maturity, are carried at amortized cost, net of allowance for credit losses, on the Consolidated balance sheets.For both AFS and HTM securities, purchase discounts or premiums are generally amortized into interest income on a level-yield basis over the contractual life of the security. However, premiums on certain callable debt securities are amortized to the earliest call date. Investment securities consist of debt securities that are classified as AFS or HTM. Debt securities classified as trading assets are discussed in Note 2. Predominantly all of the Firm's AFS and HTM securities are held by Treasury and CIO in connection with its asset-liability management activities.AFS securities are carried at fair value on the Consolidated balance sheets. Unrealized gains and losses, after any applicable hedge accounting adjustments or allowance for credit losses, are reported in AOCI. The specific identification method is used to determine realized gains and losses on AFS securities, which are included in investment securities gains/(losses) on the Consolidated statements of income. HTM securities, which the Firm has the intent and ability to hold until maturity, are carried at amortized cost, net of allowance for credit losses, on the Consolidated balance sheets.For both AFS and HTM securities, purchase discounts or premiums are generally amortized into interest income on a level-yield basis over the contractual life of the security. However, premiums on certain callable debt securities are amortized to the earliest call date. Investment securities consist of debt securities that are classified as AFS or HTM. Debt securities classified as trading assets are discussed in Note 2. Predominantly all of the Firm's AFS and HTM securities are held by Treasury and CIO in connection with its asset-liability management activities. AFS securities are carried at fair value on the Consolidated balance sheets. Unrealized gains and losses, after any applicable hedge accounting adjustments or allowance for credit losses, are reported in AOCI. The specific identification method is used to determine realized gains and losses on AFS securities, which are included in investment securities gains/(losses) on the Consolidated statements of income. HTM securities, which the Firm has the intent and ability to hold until maturity, are carried at amortized cost, net of allowance for credit losses, on the Consolidated balance sheets. For both AFS and HTM securities, purchase discounts or premiums are generally amortized into interest income on a level-yield basis over the contractual life of the security. However, premiums on certain callable debt securities are amortized to the earliest call date. JPMorgan Chase & Co./2024 Form 10-K235 JPMorgan Chase & Co./2024 Form 10-K235 JPMorgan Chase & Co./2024 Form 10-K235 JPMorgan Chase & Co./2024 Form 10-K 235 **Current (2026):** Investment securities consist of debt securities that are classified as AFS or HTM. Debt securities classified as trading assets are discussed in Note 2. Predominantly all of the Firm's AFS and HTM securities are held by Treasury and CIO in connection with its asset-liability management activities.AFS securities are carried at fair value on the Consolidated balance sheets. Unrealized gains and losses, after any applicable hedge accounting adjustments or allowance for credit losses, are reported in AOCI. The specific identification method is used to determine realized gains and losses on AFS securities, which are included in investment securities gains/(losses) on the Consolidated statements of income. HTM securities, which the Firm has the intent and ability to hold until maturity, are carried at amortized cost, net of allowance for credit losses, on the Consolidated balance sheets.For both AFS and HTM securities, purchase discounts or premiums are generally amortized into interest income on a level-yield basis over the contractual life of the security. However, premiums on certain callable debt securities are amortized to the earliest call date. During the third quarter of 2025, the Firm transferred $44.1 billion of investment securities from AFS to HTM for asset-liability management purposes. AOCI included pretax unrealized gains of $575 million on the securities at the date of transfer.Unrealized gains or losses at the date of transfer of these securities continue to be reported in AOCI and are amortized into interest income on a level-yield basis over the remaining life of the securities. This amortization will offset the effect on interest income of the amortization of the premium or discount resulting from the transfer recorded at fair value.Effective January 1, 2023, the Firm adopted the portfolio layer method hedge accounting guidance which permitted a transfer of HTM securities to AFS upon adoption. The Firm transferred obligations of U.S. states and municipalities with a carrying value of $7.1 billion resulting in the recognition of $38 million net pre-tax unrealized losses in AOCI. Refer to Note 24 for additional information.Transfers of securities between AFS and HTM are non-cash transactions. Investment securities consist of debt securities that are classified as AFS or HTM. Debt securities classified as trading assets are discussed in Note 2. Predominantly all of the Firm's AFS and HTM securities are held by Treasury and CIO in connection with its asset-liability management activities.AFS securities are carried at fair value on the Consolidated balance sheets. Unrealized gains and losses, after any applicable hedge accounting adjustments or allowance for credit losses, are reported in AOCI. The specific identification method is used to determine realized gains and losses on AFS securities, which are included in investment securities gains/(losses) on the Consolidated statements of income. HTM securities, which the Firm has the intent and ability to hold until maturity, are carried at amortized cost, net of allowance for credit losses, on the Consolidated balance sheets.For both AFS and HTM securities, purchase discounts or premiums are generally amortized into interest income on a level-yield basis over the contractual life of the security. However, premiums on certain callable debt securities are amortized to the earliest call date. During the third quarter of 2025, the Firm transferred $44.1 billion of investment securities from AFS to HTM for asset-liability management purposes. AOCI included pretax unrealized gains of $575 million on the securities at the date of transfer.Unrealized gains or losses at the date of transfer of these securities continue to be reported in AOCI and are amortized into interest income on a level-yield basis over the remaining life of the securities. This amortization will offset the effect on interest income of the amortization of the premium or discount resulting from the transfer recorded at fair value.Effective January 1, 2023, the Firm adopted the portfolio layer method hedge accounting guidance which permitted a transfer of HTM securities to AFS upon adoption. The Firm transferred obligations of U.S. states and municipalities with a carrying value of $7.1 billion resulting in the recognition of $38 million net pre-tax unrealized losses in AOCI. Refer to Note 24 for additional information.Transfers of securities between AFS and HTM are non-cash transactions. Investment securities consist of debt securities that are classified as AFS or HTM. Debt securities classified as trading assets are discussed in Note 2. Predominantly all of the Firm's AFS and HTM securities are held by Treasury and CIO in connection with its asset-liability management activities. AFS securities are carried at fair value on the Consolidated balance sheets. Unrealized gains and losses, after any applicable hedge accounting adjustments or allowance for credit losses, are reported in AOCI. The specific identification method is used to determine realized gains and losses on AFS securities, which are included in investment securities gains/(losses) on the Consolidated statements of income. HTM securities, which the Firm has the intent and ability to hold until maturity, are carried at amortized cost, net of allowance for credit losses, on the Consolidated balance sheets. For both AFS and HTM securities, purchase discounts or premiums are generally amortized into interest income on a level-yield basis over the contractual life of the security. However, premiums on certain callable debt securities are amortized to the earliest call date. During the third quarter of 2025, the Firm transferred $44.1 billion of investment securities from AFS to HTM for asset-liability management purposes. AOCI included pretax unrealized gains of $575 million on the securities at the date of transfer. Unrealized gains or losses at the date of transfer of these securities continue to be reported in AOCI and are amortized into interest income on a level-yield basis over the remaining life of the securities. This amortization will offset the effect on interest income of the amortization of the premium or discount resulting from the transfer recorded at fair value. Effective January 1, 2023, the Firm adopted the portfolio layer method hedge accounting guidance which permitted a transfer of HTM securities to AFS upon adoption. The Firm transferred obligations of U.S. states and municipalities with a carrying value of $7.1 billion resulting in the recognition of $38 million net pre-tax unrealized losses in AOCI. Refer to Note 24 for additional information. Transfers of securities between AFS and HTM are non-cash transactions. 228JPMorgan Chase & Co./2025 Form 10-K 228JPMorgan Chase & Co./2025 Form 10-K 228JPMorgan Chase & Co./2025 Form 10-K 228 JPMorgan Chase & Co./2025 Form 10-K The amortized costs and estimated fair values of the investment securities portfolio were as follows for the dates indicated. 20252024December 31, (in millions)Amortized cost(c)(d)Gross unrealized gainsGross unrealized lossesFair valueAmortized cost(c)(d)Gross unrealized gainsGross unrealized lossesFair valueAvailable-for-sale securitiesMortgage-backed securities:U.S. GSEs and government agencies$92,112 $1,075 $2,215 $90,972 $95,671 $251 $4,029 $91,893 Residential:U.S.5,564 38 17 5,585 4,242 16 50 4,208 Non-U.S.405 1 - 406 600 3 - 603 Commercial4,466 48 30 4,484 4,115 20 70 4,065 Total mortgage-backed securities102,547 1,162 2,262 101,447 104,628 290 4,149 100,769 U.S. Treasury and government agencies313,470 2,384 32 315,822 235,495 545 1,261 234,779 Obligations of U.S. states and municipalities20,915 118 793 20,240 18,337 110 534 17,913 Non-U.S. government debt securities45,676 215 236 45,655 36,655 94 504 36,245 Corporate debt securities139 - 11 128 71 - 1 70 Asset-backed securities:Collateralized loan obligations21,897 51 1 21,947 14,887 59 3 14,943 Other1,941 25 7 1,959 2,125 17 9 2,133 Unallocated portfolio layer fair value basis adjustments(a)641 (641) - NA(1,153) - (1,153)NATotal available-for-sale securities507,226 3,314 3,342 507,198 411,045 1,115 5,308 406,852 Held-to-maturity securities(b)Mortgage-backed securities:U.S. GSEs and government agencies89,073 57 9,200 79,930 97,177 6 13,531 83,652 U.S. Residential7,542 6 570 6,978 8,605 4 904 7,705 Commercial6,493 19 234 6,278 8,817 24 389 8,452 Total mortgage-backed securities103,108 82 10,004 93,186 114,599 34 14,824 99,809 U.S. Treasury and government agencies132,727 134 6,414 126,447 108,632 - 11,212 97,420 Obligations of U.S. states and municipalities8,600 17 609 8,008 9,310 32 631 8,711 Asset-backed securities:Collateralized loan obligations24,695 29 6 24,718 40,573 84 14 40,643 Other1,004 1 20 985 1,354 2 39 1,317 Total held-to-maturity securities270,134 263 17,053 253,344 274,468 152 26,720 247,900 Total investment securities, net of allowance for credit losses$777,360 $3,577 $20,395 $760,542 $685,513 $1,267 $32,028 $654,752 Amortized cost(c)(d) Amortized cost(c)(d) Unallocated portfolio layer fair value basis adjustments(a) --- ## Modified Risk: JPMorganChase could be negatively affected by adverse changes in the financial condition of clients, counterparties, CCPs and other market participants. **Key changes:** - Updated: "JPMorganChase routinely executes transactions with clients and counterparties such as corporations, financial institutions, asset managers, hedge funds, securities exchanges and government entities globally." - Updated: "JPMorganChase is also exposed to intra-day credit risk of its clients in connection with providing cash management, clearing, custodial and other transaction services." - Updated: "In addition, JPMorganChase could incur losses if applicable law limits its ability to resolve disputes and litigation when a client in that jurisdiction defaults or otherwise fails to make agreed-upon payments.Disputes could arise with counterparties to derivatives contracts concerning the terms, the settlement procedures or the value of underlying collateral." **Prior (2025):** JPMorganChase routinely executes transactions with clients and counterparties such as corporations, financial institutions, asset managers, hedge funds, securities exchanges and government entities within and outside the U.S. Many of these transactions expose JPMorganChase to the credit risk of its clients and counterparties, and can involve JPMorganChase in disputes and litigation if a client or counterparty defaults. JPMorganChase can also be subject to losses 18 18 18 18 or liability where a financial institution that it has appointed to provide custodial services for client assets or funds becomes insolvent as a result of fraud or the failure to abide by existing laws and obligations, or where clients are unable to access assets held by JPMorganChase as custodian due to governmental actions or other factors.A default by, or the financial or operational failure of, a CCP through which JPMorganChase executes contracts would require JPMorganChase to replace those contracts, thereby increasing its operational costs and potentially resulting in losses. In addition, JPMorganChase can be exposed to losses if a member of a CCP in which JPMorganChase is also a member defaults on its obligations to the CCP because of requirements that each member of the CCP absorb a portion of those losses. Furthermore, JPMorganChase can be subject to bearing its share of non-default losses incurred by a CCP, including losses from custodial, settlement or investment activities or due to cyber or other security breaches.As part of its clearing services activities, JPMorganChase is exposed to the risk of nonperformance by its clients, which it seeks to mitigate by requiring clients to provide adequate collateral. JPMorganChase is also exposed to intra-day credit risk of its clients in connection with providing cash management, clearing, custodial and other transaction services to those clients. If a client for which JPMorganChase provides these services becomes bankrupt or insolvent, JPMorganChase may incur losses, become involved in disputes and litigation with one or more CCPs, the client's bankruptcy estate and other creditors, or be subject to regulatory investigations. All of the foregoing events can increase JPMorganChase's operational and litigation costs, and JPMorganChase may suffer losses to the extent that any collateral that it has received is insufficient to cover those losses.Transactions with government entities, including national, state, provincial, municipal and local authorities, can expose JPMorganChase to enhanced sovereign, credit, operational and reputation risks. Government entities may, among other things, claim that actions taken by government officials were beyond the legal authority of those officials or repudiate transactions authorized by a previous incumbent government. These types of actions have in the past caused, and could in the future cause, JPMorganChase to suffer losses or hamper its ability to conduct business in the relevant jurisdiction.In addition, local laws, rules and regulations could limit JPMorganChase's ability to resolve disputes and litigation in the event of a counterparty default or unwillingness to make previously agreed-upon payments, which could subject JPMorganChase to losses.Disputes may arise with counterparties to derivatives contracts with regard to the terms, the settlement procedures or the value of underlying collateral. The disposition of those disputes could cause JPMorganChase to incur unexpected transaction, operational and legal costs, or result in credit losses. These consequences can also impair JPMorganChase's ability to effectively manage its credit risk exposure from its market activities, or cause harm to JPMorganChase's reputation.The financial or operational failure of a significant market participant, such as a major financial institution or a CCP, or concerns about the creditworthiness of such a market participant or its ability to fulfill its obligations, can cause substantial and cascading disruption within the financial markets, including in circumstances where coordinated action by multiple other market participants is required to address the failure or disruption. JPMorganChase's businesses could be significantly disrupted by such an event, particularly if it leads to other market participants incurring significant losses, experiencing liquidity issues or defaulting, and JPMorganChase is likely to have significant interrelationships with, and credit exposure to, such a significant market participant.JPMorganChase may suffer losses if the value of collateral declines in stressed market conditions.During periods of market stress or illiquidity, JPMorganChase's credit risk may be further increased when:•JPMorganChase fails to realize the estimated value of the collateral it holds•collateral is liquidated at prices that are not sufficient to recover the full amount owed to it, or•counterparties are unable to post collateral, whether for operational or other reasons.Furthermore, disputes with counterparties concerning the valuation of collateral may increase in times of significant market stress, volatility or illiquidity, and JPMorganChase could suffer losses during these periods if it is unable to realize the fair value of collateral or to manage declines in the value of collateral.JPMorganChase could incur significant losses arising from concentrations of credit and market risk.JPMorganChase is exposed to greater credit and market risk to the extent that groupings of its clients or counterparties, or obligors on securities and other financial instruments:•engage in similar or related businesses, or in businesses in related industries•do business in the same geographic region, or or liability where a financial institution that it has appointed to provide custodial services for client assets or funds becomes insolvent as a result of fraud or the failure to abide by existing laws and obligations, or where clients are unable to access assets held by JPMorganChase as custodian due to governmental actions or other factors.A default by, or the financial or operational failure of, a CCP through which JPMorganChase executes contracts would require JPMorganChase to replace those contracts, thereby increasing its operational costs and potentially resulting in losses. In addition, JPMorganChase can be exposed to losses if a member of a CCP in which JPMorganChase is also a member defaults on its obligations to the CCP because of requirements that each member of the CCP absorb a portion of those losses. Furthermore, JPMorganChase can be subject to bearing its share of non-default losses incurred by a CCP, including losses from custodial, settlement or investment activities or due to cyber or other security breaches.As part of its clearing services activities, JPMorganChase is exposed to the risk of nonperformance by its clients, which it seeks to mitigate by requiring clients to provide adequate collateral. JPMorganChase is also exposed to intra-day credit risk of its clients in connection with providing cash management, clearing, custodial and other transaction services to those clients. If a client for which JPMorganChase provides these services becomes bankrupt or insolvent, JPMorganChase may incur losses, become involved in disputes and litigation with one or more CCPs, the client's bankruptcy estate and other creditors, or be subject to regulatory investigations. All of the foregoing events can increase JPMorganChase's operational and litigation costs, and JPMorganChase may suffer losses to the extent that any collateral that it has received is insufficient to cover those losses.Transactions with government entities, including national, state, provincial, municipal and local authorities, can expose JPMorganChase to enhanced sovereign, credit, operational and reputation risks. Government entities may, among other things, claim that actions taken by government officials were beyond the legal authority of those officials or repudiate transactions authorized by a previous incumbent government. These types of actions have in the past caused, and could in the future cause, JPMorganChase to suffer losses or hamper its ability to conduct business in the relevant jurisdiction.In addition, local laws, rules and regulations could limit JPMorganChase's ability to resolve disputes and litigation in the event of a counterparty default or unwillingness to make previously agreed-upon payments, which could subject JPMorganChase to losses. or liability where a financial institution that it has appointed to provide custodial services for client assets or funds becomes insolvent as a result of fraud or the failure to abide by existing laws and obligations, or where clients are unable to access assets held by JPMorganChase as custodian due to governmental actions or other factors. A default by, or the financial or operational failure of, a CCP through which JPMorganChase executes contracts would require JPMorganChase to replace those contracts, thereby increasing its operational costs and potentially resulting in losses. In addition, JPMorganChase can be exposed to losses if a member of a CCP in which JPMorganChase is also a member defaults on its obligations to the CCP because of requirements that each member of the CCP absorb a portion of those losses. Furthermore, JPMorganChase can be subject to bearing its share of non-default losses incurred by a CCP, including losses from custodial, settlement or investment activities or due to cyber or other security breaches. As part of its clearing services activities, JPMorganChase is exposed to the risk of nonperformance by its clients, which it seeks to mitigate by requiring clients to provide adequate collateral. JPMorganChase is also exposed to intra-day credit risk of its clients in connection with providing cash management, clearing, custodial and other transaction services to those clients. If a client for which JPMorganChase provides these services becomes bankrupt or insolvent, JPMorganChase may incur losses, become involved in disputes and litigation with one or more CCPs, the client's bankruptcy estate and other creditors, or be subject to regulatory investigations. All of the foregoing events can increase JPMorganChase's operational and litigation costs, and JPMorganChase may suffer losses to the extent that any collateral that it has received is insufficient to cover those losses. Transactions with government entities, including national, state, provincial, municipal and local authorities, can expose JPMorganChase to enhanced sovereign, credit, operational and reputation risks. Government entities may, among other things, claim that actions taken by government officials were beyond the legal authority of those officials or repudiate transactions authorized by a previous incumbent government. These types of actions have in the past caused, and could in the future cause, JPMorganChase to suffer losses or hamper its ability to conduct business in the relevant jurisdiction. In addition, local laws, rules and regulations could limit JPMorganChase's ability to resolve disputes and litigation in the event of a counterparty default or unwillingness to make previously agreed-upon payments, which could subject JPMorganChase to losses. Disputes may arise with counterparties to derivatives contracts with regard to the terms, the settlement procedures or the value of underlying collateral. The disposition of those disputes could cause JPMorganChase to incur unexpected transaction, operational and legal costs, or result in credit losses. These consequences can also impair JPMorganChase's ability to effectively manage its credit risk exposure from its market activities, or cause harm to JPMorganChase's reputation.The financial or operational failure of a significant market participant, such as a major financial institution or a CCP, or concerns about the creditworthiness of such a market participant or its ability to fulfill its obligations, can cause substantial and cascading disruption within the financial markets, including in circumstances where coordinated action by multiple other market participants is required to address the failure or disruption. JPMorganChase's businesses could be significantly disrupted by such an event, particularly if it leads to other market participants incurring significant losses, experiencing liquidity issues or defaulting, and JPMorganChase is likely to have significant interrelationships with, and credit exposure to, such a significant market participant.JPMorganChase may suffer losses if the value of collateral declines in stressed market conditions.During periods of market stress or illiquidity, JPMorganChase's credit risk may be further increased when:•JPMorganChase fails to realize the estimated value of the collateral it holds•collateral is liquidated at prices that are not sufficient to recover the full amount owed to it, or•counterparties are unable to post collateral, whether for operational or other reasons.Furthermore, disputes with counterparties concerning the valuation of collateral may increase in times of significant market stress, volatility or illiquidity, and JPMorganChase could suffer losses during these periods if it is unable to realize the fair value of collateral or to manage declines in the value of collateral.JPMorganChase could incur significant losses arising from concentrations of credit and market risk.JPMorganChase is exposed to greater credit and market risk to the extent that groupings of its clients or counterparties, or obligors on securities and other financial instruments:•engage in similar or related businesses, or in businesses in related industries•do business in the same geographic region, or Disputes may arise with counterparties to derivatives contracts with regard to the terms, the settlement procedures or the value of underlying collateral. The disposition of those disputes could cause JPMorganChase to incur unexpected transaction, operational and legal costs, or result in credit losses. These consequences can also impair JPMorganChase's ability to effectively manage its credit risk exposure from its market activities, or cause harm to JPMorganChase's reputation. The financial or operational failure of a significant market participant, such as a major financial institution or a CCP, or concerns about the creditworthiness of such a market participant or its ability to fulfill its obligations, can cause substantial and cascading disruption within the financial markets, including in circumstances where coordinated action by multiple other market participants is required to address the failure or disruption. JPMorganChase's businesses could be significantly disrupted by such an event, particularly if it leads to other market participants incurring significant losses, experiencing liquidity issues or defaulting, and JPMorganChase is likely to have significant interrelationships with, and credit exposure to, such a significant market participant. **Current (2026):** JPMorganChase routinely executes transactions with clients and counterparties such as corporations, financial institutions, asset managers, hedge funds, securities exchanges and government entities globally. Many of these transactions expose JPMorganChase to the credit risk of its clients and counterparties, and JPMorganChase could incur losses and become involved in disputes and litigation in connection with a default by a client or counterparty. JPMorganChase could also face losses or liability if a financial institution providing custodial services for client assets becomes insolvent. If a CCP through which JPMorganChase executes contracts suffers a financial or operational failure or otherwise defaults, JPMorganChase would be required to replace the relevant contracts, which would increase its operational costs and potentially result in losses. In addition, if a member of a CCP in which JPMorganChase is also a member defaults on its obligations to the CCP, JPMorganChase could incur losses due to requirements that each member of the CCP absorb a portion of those losses. Furthermore, JPMorganChase could be subject to bearing its share of non-default losses incurred by a CCP, including losses from custodial, settlement or investment activities or due to cyber or other security breaches. As part of its clearing services activities, JPMorganChase is exposed to the risk of nonperformance by its clients, which it seeks to mitigate by requiring clients to provide adequate collateral. JPMorganChase is also exposed to intra-day credit risk of its clients in connection with providing cash management, clearing, custodial and other transaction services. If such a client becomes bankrupt or insolvent, JPMorganChase could: •incur losses •become involved in disputes and litigation with CCPs, the client's bankruptcy estate and other creditors, or •be subject to investigations by governmental authorities. In addition, JPMorganChase has in the past, and could in the future, experience instances in which borrowers or other counterparties engage in fraudulent activity related to the accounting, reporting or representation of collateral. Such practices have resulted and could in the future result in losses for JPMorganChase potentially undermining the effectiveness of collateral requirements and negatively affecting JPMorganChase's financial condition and results of operations. All of the foregoing events could increase JPMorganChase's operational and litigation costs, and JPMorganChase could suffer losses to the extent that the realized value of any collateral that it has received is insufficient to cover those losses.Transactions with governmental entities can expose JPMorganChase to enhanced sovereign, credit, operational, legal and reputation risks. Governmental entities may claim that actions taken by government officials were beyond the legal authority of those officials or repudiate transactions authorized by a previous incumbent government. These types of actions have in the past caused, and could in the future cause, JPMorganChase to suffer losses or hamper its ability to conduct business in the relevant jurisdiction. In addition, JPMorganChase could incur losses if applicable law limits its ability to resolve disputes and litigation when a client in that jurisdiction defaults or otherwise fails to make agreed-upon payments.Disputes could arise with counterparties to derivatives contracts concerning the terms, the settlement procedures or the value of underlying collateral. The resolution of those disputes could cause JPMorganChase to incur losses, including unexpected transaction, operational and legal costs. These consequences could also impair JPMorganChase's ability to effectively manage its credit risk exposure from its market activities, or cause reputational harm.The financial or operational failure of a significant market participant, such as a major financial institution or a CCP, or concerns about the creditworthiness or operational sustainability of one or more market participants, could cause substantial and cascading disruption within the financial markets, including in circumstances where coordinated action by multiple other market participants is required to address the problem. JPMorganChase's businesses could be significantly disrupted by such an event, especially if it has significant interrelationships with, and credit exposure to, the faltering market participant, or if the event causes other market participants to default, incur significant losses or experience liquidity issues.JPMorganChase could suffer losses if the value of collateral declines.During periods of market stress or illiquidity, JPMorganChase's credit risk could increase when:•JPMorganChase fails to realize the estimated value of the collateral it holds•collateral is liquidated at prices that are insufficient to recover the full amount owed to it, or of collateral. Such practices have resulted and could in the future result in losses for JPMorganChase potentially undermining the effectiveness of collateral requirements and negatively affecting JPMorganChase's financial condition and results of operations. All of the foregoing events could increase JPMorganChase's operational and litigation costs, and JPMorganChase could suffer losses to the extent that the realized value of any collateral that it has received is insufficient to cover those losses. Transactions with governmental entities can expose JPMorganChase to enhanced sovereign, credit, operational, legal and reputation risks. Governmental entities may claim that actions taken by government officials were beyond the legal authority of those officials or repudiate transactions authorized by a previous incumbent government. These types of actions have in the past caused, and could in the future cause, JPMorganChase to suffer losses or hamper its ability to conduct business in the relevant jurisdiction. In addition, JPMorganChase could incur losses if applicable law limits its ability to resolve disputes and litigation when a client in that jurisdiction defaults or otherwise fails to make agreed-upon payments. Disputes could arise with counterparties to derivatives contracts concerning the terms, the settlement procedures or the value of underlying collateral. The resolution of those disputes could cause JPMorganChase to incur losses, including unexpected transaction, operational and legal costs. These consequences could also impair JPMorganChase's ability to effectively manage its credit risk exposure from its market activities, or cause reputational harm. The financial or operational failure of a significant market participant, such as a major financial institution or a CCP, or concerns about the creditworthiness or operational sustainability of one or more market participants, could cause substantial and cascading disruption within the financial markets, including in circumstances where coordinated action by multiple other market participants is required to address the problem. JPMorganChase's businesses could be significantly disrupted by such an event, especially if it has significant interrelationships with, and credit exposure to, the faltering market participant, or if the event causes other market participants to default, incur significant losses or experience liquidity issues. --- ## Modified Risk: Transfers not qualifying for sale accounting **Key changes:** - Updated: "At December 31, 2025 and 2024, the Firm held $787 million and $805 million, respectively, of financial assets for which the rights have been transferred to third parties; however, the transfers did not qualify as a sale in accordance with U.S." - Updated: "JPMorgan Chase & Co./2025 Form 10-K235 JPMorgan Chase & Co./2025 Form 10-K235 JPMorgan Chase & Co./2025 Form 10-K235 JPMorgan Chase & Co./2025 Form 10-K 235" **Prior (2025):** At December 31, 2024 and 2023, the Firm held $805 million and $505 million, respectively, of financial assets for which the rights have been transferred to third parties; however, the transfers did not qualify as a sale in accordance with U.S. GAAP. These transfers have been recognized as collateralized financing transactions. The transferred assets are recorded in trading assets and loans, and the corresponding liabilities are recorded primarily in short-term borrowings and long-term debt on the Consolidated balance sheets. 242JPMorgan Chase & Co./2024 Form 10-K 242JPMorgan Chase & Co./2024 Form 10-K 242JPMorgan Chase & Co./2024 Form 10-K 242 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** At December 31, 2025 and 2024, the Firm held $787 million and $805 million, respectively, of financial assets for which the rights have been transferred to third parties; however, the transfers did not qualify as a sale in accordance with U.S. GAAP. These transfers have been recognized as collateralized financing transactions. The transferred assets are recorded in trading assets and loans, and the corresponding liabilities are recorded primarily in short-term borrowings and long-term debt on the Consolidated balance sheets. JPMorgan Chase & Co./2025 Form 10-K235 JPMorgan Chase & Co./2025 Form 10-K235 JPMorgan Chase & Co./2025 Form 10-K235 JPMorgan Chase & Co./2025 Form 10-K 235 --- ## Modified Risk: FIVE-YEAR STOCK PERFORMANCE **Key changes:** - Updated: "The following table and graph assume simultaneous investments of $100 on December 31, 2020, in JPMorganChase common stock and in each of the above indices." - Updated: "December 31,(in dollars)202020212022202320242025JPMorganChase$100.00 $127.73 $111.64 $145.96 $210.58 $289.18 KBW Bank Index100.00 138.34 108.74 107.77 147.86 196.02 S&P Financials Index100.00 134.87 120.66 135.32 176.67 203.21 S&P 500 Index100.00 128.68 105.37 133.07 166.37 196.12 December 31, (in dollars) JPMorgan Chase & Co./2025 Form 10-K45 JPMorgan Chase & Co./2025 Form 10-K45 JPMorgan Chase & Co./2025 Form 10-K45 JPMorgan Chase & Co./2025 Form 10-K 45" **Prior (2025):** The following table and graph compare the five-year cumulative total return for JPMorgan Chase & Co. ("JPMorganChase" or the "Firm") common stock with the cumulative return of the S&P 500 Index, the KBW Bank Index and the S&P Financials Index. The S&P 500 Index is a commonly referenced equity benchmark in the United States of America ("U.S."), consisting of leading companies from different economic sectors. The KBW Bank Index seeks to reflect the performance of banks and thrifts that are publicly traded in the U.S. and is composed of leading national money center and regional banks and thrifts. The S&P Financials Index is an index of financial companies, all of which are components of the S&P 500. The Firm is a component of all three industry indices. The following table and graph assume simultaneous investments of $100 on December 31, 2019, in JPMorganChase common stock and in each of the above indices. The comparison assumes that all dividends were reinvested. December 31,(in dollars)201920202021202220232024JPMorganChase$100.00 $94.48 $120.68 $105.48 $137.91 $198.96 KBW Bank Index100.00 89.69 124.08 97.53 96.66 132.62 S&P Financials Index100.00 98.24 132.50 118.54 132.94 173.57 S&P 500 Index100.00 118.39 152.34 124.75 157.54 196.96 December 31, (in dollars) JPMorgan Chase & Co./2024 Form 10-K51 JPMorgan Chase & Co./2024 Form 10-K51 JPMorgan Chase & Co./2024 Form 10-K51 JPMorgan Chase & Co./2024 Form 10-K 51 **Current (2026):** The following table and graph compare the five-year cumulative total return for JPMorgan Chase & Co. ("JPMorganChase" or the "Firm") common stock with the cumulative return of the S&P 500 Index, the KBW Bank Index and the S&P Financials Index. The S&P 500 Index is a commonly referenced equity benchmark in the United States of America ("U.S."), consisting of leading companies from different economic sectors. The KBW Bank Index seeks to reflect the performance of banks and thrifts that are publicly traded in the U.S. and is composed of leading national money center and regional banks and thrifts. The S&P Financials Index is an index of financial companies, all of which are components of the S&P 500. The Firm is a component of all three industry indices. The following table and graph assume simultaneous investments of $100 on December 31, 2020, in JPMorganChase common stock and in each of the above indices. The comparison assumes that all dividends were reinvested. December 31,(in dollars)202020212022202320242025JPMorganChase$100.00 $127.73 $111.64 $145.96 $210.58 $289.18 KBW Bank Index100.00 138.34 108.74 107.77 147.86 196.02 S&P Financials Index100.00 134.87 120.66 135.32 176.67 203.21 S&P 500 Index100.00 128.68 105.37 133.07 166.37 196.12 December 31, (in dollars) JPMorgan Chase & Co./2025 Form 10-K45 JPMorgan Chase & Co./2025 Form 10-K45 JPMorgan Chase & Co./2025 Form 10-K45 JPMorgan Chase & Co./2025 Form 10-K 45 --- ## Modified Risk: Changes in interest rates and credit spreads could adversely affect JPMorganChase's earnings or its liquidity and capital levels. **Key changes:** - Updated: "JPMorganChase may generally be expected to earn higher net interest income when interest rates are high or increasing." - Updated: "JPMorganChase's credit spreads could widen or narrow not only due to events and circumstances that are specific to JPMorganChase but also as a result of general economic and geopolitical events and conditions." **Prior (2025):** When interest rates are high or increasing, JPMorganChase can generally be expected to earn higher net interest income. However, higher interest rates can also lead to: •fewer originations of commercial and residential real estate loans •losses on underwriting exposures or incremental client-specific downgrades, or increases in the allowance for credit losses and net charge-offs due to higher financing costs for clients •the loss of deposits, particularly if customers withdraw deposits because they believe that interest rates offered by JPMorganChase are lower than those of competitors or if JPMorganChase makes incorrect assumptions about depositor behavior •losses on available-for-sale ("AFS") securities held in the investment securities portfolio •lower net interest income if central banks introduce interest rate increases more quickly than anticipated and this results in a misalignment in the pricing of short-term and long-term borrowings •less liquidity in the financial markets, and •higher funding costs. All of these outcomes could adversely affect JPMorganChase's earnings or its liquidity and capital levels, and any negative outcomes could be more severe in a prolonged period of high interest rates. Higher interest rates can also negatively affect the payment performance on loans within JPMorganChase's consumer and wholesale loan portfolios that are linked to variable interest rates. If borrowers of variable rate loans are unable to afford higher interest payments, those borrowers may reduce or stop making payments, thereby causing JPMorganChase to incur losses and increased operational costs related to servicing a higher volume of delinquent loans. On the other hand, a low or negative interest rate environment may cause: •net interest margins to be compressed, which could reduce the amounts that JPMorganChase earns on its investment securities portfolio to the extent that it is unable to reinvest contemporaneously in higher-yielding instruments •unanticipated or adverse changes in depositor behavior, which could negatively affect JPMorganChase's broader asset and liability management strategy, and •a reduction in the value of JPMorganChase's mortgage servicing rights ("MSRs") asset, resulting in decreased revenues.When credit spreads widen, it becomes more expensive for JPMorganChase to borrow. JPMorganChase's credit spreads may widen or narrow not only in response to events and circumstances that are specific to JPMorganChase but also as a result of general economic and geopolitical events and conditions. Changes in JPMorganChase's credit spreads will affect, positively or negatively, JPMorganChase's earnings on certain liabilities, such as derivatives, that are recorded at fair value. JPMorganChase's results may be materially affected by market fluctuations and significant changes in the valuation of financial instruments.The value of securities, derivatives and other financial instruments which JPMorganChase owns or in which it makes markets can be materially affected by market fluctuations. Market volatility, illiquid market conditions and other disruptions in the financial markets may make it extremely difficult to value certain financial instruments. Subsequent valuations of financial instruments in future periods, in light of factors then prevailing, may result in significant changes in the value of these instruments. In addition, at the time of any disposition of these financial instruments, the price that JPMorganChase ultimately realizes will depend on the demand and liquidity in the market at that time and may be materially lower than their current fair value. Any of these factors could cause a decline in the value of financial instruments that JPMorganChase owns or in which it makes markets, which may have an adverse effect on JPMorganChase's results of operations.JPMorganChase's risk management and monitoring processes, including its stress testing framework, seek to quantify and manage JPMorganChase's exposure to more extreme market moves. However, JPMorganChase's hedging and other risk management strategies may not be effective, and it could incur significant losses, if extreme market events were to occur.CreditJPMorganChase can be negatively affected by adverse changes in the financial condition of clients, counterparties, custodians and CCPs.JPMorganChase routinely executes transactions with clients and counterparties such as corporations, financial institutions, asset managers, hedge funds, securities exchanges and government entities within and outside the U.S. Many of these transactions expose JPMorganChase to the credit risk of its clients and counterparties, and can involve JPMorganChase in disputes and litigation if a client or counterparty defaults. JPMorganChase can also be subject to losses •a reduction in the value of JPMorganChase's mortgage servicing rights ("MSRs") asset, resulting in decreased revenues. When credit spreads widen, it becomes more expensive for JPMorganChase to borrow. JPMorganChase's credit spreads may widen or narrow not only in response to events and circumstances that are specific to JPMorganChase but also as a result of general economic and geopolitical events and conditions. Changes in JPMorganChase's credit spreads will affect, positively or negatively, JPMorganChase's earnings on certain liabilities, such as derivatives, that are recorded at fair value. **Current (2026):** JPMorganChase may generally be expected to earn higher net interest income when interest rates are high or increasing. However, higher interest rates could also result in: •fewer originations of commercial and residential real estate loans •losses on underwriting exposures or increases in client-specific downgrades •increased financing costs for clients, which could lead to an increase in the allowance for credit losses and higher net charge-offs •the loss of deposits, including where customers transition to higher-yielding products •losses on available-for-sale ("AFS") securities held in the investment securities portfolio•less liquidity in the financial markets, and•higher funding costs.All of these outcomes could adversely affect JPMorganChase's earnings or its liquidity and capital levels, with more severe impacts in a prolonged period of high interest rates.Higher interest rates could also negatively affect the payment performance on loans within JPMorganChase's consumer and wholesale loan portfolios that are linked to variable interest rates. If borrowers of variable rate loans reduce or stop making payments at higher interest rates, JPMorganChase could incur losses as well as increased operational costs related to servicing a higher volume of delinquent loans. On the other hand, a low or negative interest rate environment could cause:•compressed net interest margins, which could result in lower earnings on JPMorganChase's investment securities portfolio•adverse or unanticipated changes in depositor behavior, which could negatively affect JPMorganChase's broader asset and liability management strategies, and•a reduction in the value of JPMorganChase's mortgage servicing rights ("MSRs") asset, resulting in decreased revenues.When credit spreads widen, it becomes more expensive for JPMorganChase to borrow.JPMorganChase's credit spreads could widen or narrow not only due to events and circumstances that are specific to JPMorganChase but also as a result of general economic and geopolitical events and conditions. Changes in JPMorganChase's credit spreads could negatively affect its earnings on certain liabilities, such as derivatives, that are recorded at fair value.JPMorganChase's results could be materially affected by market fluctuations and significant changes in the valuation of financial instruments.The value of securities, derivatives and other financial instruments that JPMorganChase owns or in which it makes markets could be materially affected by market fluctuations. Market volatility, illiquid market conditions and other fluctuations in the financial markets could make it extremely difficult to value certain financial instruments. Subsequent valuations of financial instruments in future periods, in light of factors then prevailing, could result in significant changes in the value of these instruments. In addition, when JPMorganChase disposes of a financial instrument, the price that it realizes will depend on demand and liquidity in the market at the time of disposition, and that price could be materially lower than the current fair •losses on available-for-sale ("AFS") securities held in the investment securities portfolio •less liquidity in the financial markets, and •higher funding costs. All of these outcomes could adversely affect JPMorganChase's earnings or its liquidity and capital levels, with more severe impacts in a prolonged period of high interest rates. Higher interest rates could also negatively affect the payment performance on loans within JPMorganChase's consumer and wholesale loan portfolios that are linked to variable interest rates. If borrowers of variable rate loans reduce or stop making payments at higher interest rates, JPMorganChase could incur losses as well as increased operational costs related to servicing a higher volume of delinquent loans. On the other hand, a low or negative interest rate environment could cause: •compressed net interest margins, which could result in lower earnings on JPMorganChase's investment securities portfolio •adverse or unanticipated changes in depositor behavior, which could negatively affect JPMorganChase's broader asset and liability management strategies, and •a reduction in the value of JPMorganChase's mortgage servicing rights ("MSRs") asset, resulting in decreased revenues. When credit spreads widen, it becomes more expensive for JPMorganChase to borrow. JPMorganChase's credit spreads could widen or narrow not only due to events and circumstances that are specific to JPMorganChase but also as a result of general economic and geopolitical events and conditions. Changes in JPMorganChase's credit spreads could negatively affect its earnings on certain liabilities, such as derivatives, that are recorded at fair value. --- ## Modified Risk: GSIB Surcharge and TLAC and Eligible LTD Requirements **Key changes:** - Updated: "In July 2023, the Federal Reserve released a proposal to amend the calculation of the GSIB surcharge." - Updated: "Refer to Risk-based Capital Regulatory Requirements on page 92 for further information on the GSIB surcharge." - Updated: "JPMorgan Chase & Co./2025 Form 10-K91 JPMorgan Chase & Co./2025 Form 10-K91 JPMorgan Chase & Co./2025 Form 10-K91 JPMorgan Chase & Co./2025 Form 10-K 91" **Prior (2025):** The Federal Reserve establishes capital requirements, including well-capitalized standards, for the Firm as a consolidated financial holding company. The Office of the Comptroller of the Currency ("OCC") establishes similar minimum capital requirements and standards for the Firm's principal IDI subsidiary, JPMorgan Chase Bank, N.A. The U.S. capital requirements generally follow the Capital Accord of the Basel Committee, as amended from time to time. Basel III Overview The capital rules under Basel III establish minimum capital ratios and overall capital adequacy standards for large and internationally active U.S. BHCs and banks, including the Firm and JPMorgan Chase Bank, N.A. The minimum amount of regulatory capital that must be held by BHCs and banks is determined by calculating RWA, which are on-balance sheet assets and off-balance sheet exposures, weighted according to risk. Under the rules currently in effect, two comprehensive approaches are prescribed for calculating RWA: a standardized approach ("Basel III Standardized"), and an advanced approach ("Basel III Advanced"). For each of these risk-based capital ratios, the capital adequacy of the Firm is evaluated against the lower of the Standardized or Advanced approaches compared to their respective regulatory capital ratio requirements. The current Basel III rules establish capital requirements for calculating credit risk RWA and market risk RWA, and in the case of Basel III Advanced, operational risk RWA. Key differences in the calculation of credit risk RWA between the Standardized and Advanced approaches are that for Basel III Advanced, credit risk RWA is based on risk-sensitive approaches which largely rely on the use of internal credit models and parameters, whereas for Basel III Standardized, credit risk RWA is generally based on supervisory risk-weightings which vary primarily by counterparty type and asset class. Market risk RWA is generally calculated consistently between Basel III Standardized and Basel III Advanced. In addition to the RWA calculated under these approaches, the Firm may supplement such amounts to incorporate management judgment and feedback from its regulators. As of December 31, 2024, the Firm's Basel III Standardized ratios risk-based ratios were more binding than the Basel III Advanced risk-based ratios. Additionally, Basel III requires that Advanced Approaches banking organizations, including the Firm, calculate their SLRs. Refer to page 104 for additional information on SLR. 98JPMorgan Chase & Co./2024 Form 10-K 98JPMorgan Chase & Co./2024 Form 10-K 98JPMorgan Chase & Co./2024 Form 10-K 98 JPMorgan Chase & Co./2024 Form 10-K Key Regulatory Developments U.S. Basel III FinalizationIn July 2023, the Federal Reserve, the OCC and the FDIC released a proposal to amend the risk-based capital framework, entitled "Regulatory capital rule: Amendments applicable to large banking organizations and to banking organizations with significant trading activity", which is referred to in this Form 10-K as the "U.S. Basel III proposal". Under this proposal, changes to the framework would include replacement of the Advanced approach with an expanded risk-based approach for the calculation of RWA. In addition, the stress capital buffer requirement would be applicable to both the expanded risk-based approach and the Standardized approach.GSIB Surcharge and TLAC and Eligible LTD RequirementsIn July 2023, the Federal Reserve released a proposal to amend the calculation of the GSIB surcharge. Under the proposal, the annual GSIB surcharge would be based on an average of the quarterly surcharge calculations throughout the calendar year, with daily averaging required for certain measures. The proposal would also reduce surcharge increments from 50 bps to 10 bps and includes other technical amendments to the "Method 2" calculation. The proposed changes would revise risk-based capital requirements for the Firm and other U.S. GSIBs. Refer to Risk-based Capital Regulatory Requirements on page 100 for further information on the GSIB surcharge. Additionally, in August 2023, the Federal Reserve, the FDIC and the OCC released a proposal to expand the eligible long-term debt ("eligible LTD") and clean holding company requirements under the existing total loss-absorbing capacity ("TLAC") rule to apply to non-GSIB banks with $100 billion or more in total consolidated assets. The proposal would also reduce the amount of LTD with remaining maturities of less than two years that count towards a U.S. GSIB's TLAC requirement and expand the existing capital deduction framework for LTD issued by GSIBs to include LTD issued by non-GSIB banks subject to the LTD requirements. Finalization of the above proposals, including the required implementation dates, is uncertain. The Firm continues to monitor developments and potential impacts. Key Regulatory Developments U.S. Basel III FinalizationIn July 2023, the Federal Reserve, the OCC and the FDIC released a proposal to amend the risk-based capital framework, entitled "Regulatory capital rule: Amendments applicable to large banking organizations and to banking organizations with significant trading activity", which is referred to in this Form 10-K as the "U.S. Basel III proposal". Under this proposal, changes to the framework would include replacement of the Advanced approach with an expanded risk-based approach for the calculation of RWA. In addition, the stress capital buffer requirement would be applicable to both the expanded risk-based approach and the Standardized approach.GSIB Surcharge and TLAC and Eligible LTD RequirementsIn July 2023, the Federal Reserve released a proposal to amend the calculation of the GSIB surcharge. Under the proposal, the annual GSIB surcharge would be based on an average of the quarterly surcharge calculations throughout the calendar year, with daily averaging required for certain measures. The proposal would also reduce surcharge increments from 50 bps to 10 bps and includes other technical amendments to the "Method 2" calculation. The proposed changes would revise risk-based capital requirements for the Firm and other U.S. GSIBs. Refer to Risk-based Capital Regulatory Requirements on page 100 for further information on the GSIB surcharge. Additionally, in August 2023, the Federal Reserve, the FDIC and the OCC released a proposal to expand the eligible long-term debt ("eligible LTD") and clean holding company requirements under the existing total loss-absorbing capacity ("TLAC") rule to apply to non-GSIB banks with $100 billion or more in total consolidated assets. The proposal would also reduce the amount of LTD with remaining maturities of less than two years that count towards a U.S. GSIB's TLAC requirement and expand the existing capital deduction framework for LTD issued by GSIBs to include LTD issued by non-GSIB banks subject to the LTD requirements. Finalization of the above proposals, including the required implementation dates, is uncertain. The Firm continues to monitor developments and potential impacts. Key Regulatory Developments U.S. Basel III Finalization In July 2023, the Federal Reserve, the OCC and the FDIC released a proposal to amend the risk-based capital framework, entitled "Regulatory capital rule: Amendments applicable to large banking organizations and to banking organizations with significant trading activity", which is referred to in this Form 10-K as the "U.S. Basel III proposal". Under this proposal, changes to the framework would include replacement of the Advanced approach with an expanded risk-based approach for the calculation of RWA. In addition, the stress capital buffer requirement would be applicable to both the expanded risk-based approach and the Standardized approach. GSIB Surcharge and TLAC and Eligible LTD Requirements In July 2023, the Federal Reserve released a proposal to amend the calculation of the GSIB surcharge. Under the proposal, the annual GSIB surcharge would be based on an average of the quarterly surcharge calculations throughout the calendar year, with daily averaging required for certain measures. The proposal would also reduce surcharge increments from 50 bps to 10 bps and includes other technical amendments to the "Method 2" calculation. The proposed changes would revise risk-based capital requirements for the Firm and other U.S. GSIBs. Refer to Risk-based Capital Regulatory Requirements on page 100 for further information on the GSIB surcharge. Additionally, in August 2023, the Federal Reserve, the FDIC and the OCC released a proposal to expand the eligible long-term debt ("eligible LTD") and clean holding company requirements under the existing total loss-absorbing capacity ("TLAC") rule to apply to non-GSIB banks with $100 billion or more in total consolidated assets. The proposal would also reduce the amount of LTD with remaining maturities of less than two years that count towards a U.S. GSIB's TLAC requirement and expand the existing capital deduction framework for LTD issued by GSIBs to include LTD issued by non-GSIB banks subject to the LTD requirements. Finalization of the above proposals, including the required implementation dates, is uncertain. The Firm continues to monitor developments and potential impacts. JPMorgan Chase & Co./2024 Form 10-K99 JPMorgan Chase & Co./2024 Form 10-K99 JPMorgan Chase & Co./2024 Form 10-K99 JPMorgan Chase & Co./2024 Form 10-K 99 **Current (2026):** In July 2023, the Federal Reserve released a proposal to amend the calculation of the GSIB surcharge. Under the proposal, the annual GSIB surcharge would be based on an average of the quarterly surcharge calculations throughout the calendar year, with daily averaging required for certain measures. The proposal would also reduce surcharge increments from 50 bps to 10 bps and includes other technical amendments to the "Method 2" calculation. The proposed changes would revise risk-based capital requirements for the Firm and other U.S. GSIBs. Refer to Risk-based Capital Regulatory Requirements on page 92 for further information on the GSIB surcharge. Additionally, in August 2023, the Federal Reserve, the FDIC and the OCC released a proposal to expand the eligible long-term debt ("eligible LTD") and clean holding company requirements under the existing total loss-absorbing capacity ("TLAC") rule to apply to non-GSIB banks with $100 billion or more in total consolidated assets. The proposal would also reduce the amount of LTD with remaining maturities of less than two years that count towards a U.S. GSIB's TLAC requirement and expand the existing capital deduction framework for LTD issued by GSIBs to include LTD issued by non-GSIB banks subject to the LTD requirements. Finalization of the above proposals, including the required implementation dates, is uncertain. The Firm continues to monitor developments and potential impacts. JPMorgan Chase & Co./2025 Form 10-K91 JPMorgan Chase & Co./2025 Form 10-K91 JPMorgan Chase & Co./2025 Form 10-K91 JPMorgan Chase & Co./2025 Form 10-K 91 --- ## Modified Risk: JPMorgan Chase & Co. is a holding company and depends on its subsidiaries for funding to make payments on its outstanding securities. **Key changes:** - Updated: "The Parent Company, JPMorgan Chase & Co., is a holding company that holds the stock of JPMorgan Chase Bank, N.A." - Updated: "In addition to holding the stock of other JPMorganChase subsidiaries, the IHC owns other assets and provides intercompany lending to the Parent Company." - Updated: "This could, in turn, adversely affect the value of debt and other obligations of JPMorgan Chase & Co." **Prior (2025):** JPMorgan Chase & Co. is a holding company that holds the stock of JPMorgan Chase Bank, N.A. and an intermediate holding company, JPMorgan Chase Holdings LLC (the "IHC"). The IHC in turn generally holds the stock of JPMorganChase's subsidiaries other than JPMorgan Chase Bank, N.A. and its subsidiaries. The IHC also owns other assets and provides intercompany lending to the Parent Company. The Parent Company is obligated to contribute to the IHC substantially all the net proceeds received from securities issuances (including issuances of senior and subordinated debt securities and of preferred and common stock). The ability of JPMorgan Chase Bank, N.A. and the IHC to make payments to the Parent Company is also limited. JPMorgan Chase Bank, N.A. is subject to regulatory restrictions on its dividend distributions, as well as capital adequacy requirements, such as the Supplementary Leverage Ratio ("SLR"), and liquidity requirements and other regulatory restrictions on its ability to make payments to the Parent Company. The IHC is prohibited from paying dividends or extending credit to the Parent Company if certain capital or liquidity thresholds are breached, or if limits are otherwise imposed by the Parent Company's management or Board of Directors. As a result of these arrangements, the ability of the Parent Company to make various payments is dependent on its receiving dividends from JPMorgan Chase Bank, N.A. and dividends and borrowings from the IHC. These limitations could affect the Parent Company's ability to: •pay interest on its debt securities •pay dividends on its equity securities •redeem or repurchase outstanding securities, and •fulfill its other payment obligations. These arrangements could also result in the Parent Company seeking protection under bankruptcy laws or otherwise entering into resolution proceedings at a time earlier than would have been the case absent the existence of the capital and liquidity thresholds to which JPMorgan Chase Bank, N.A. and the IHC are subject. **Current (2026):** The Parent Company, JPMorgan Chase & Co., is a holding company that holds the stock of JPMorgan Chase Bank, N.A. and an intermediate holding company, JPMorgan Chase Holdings LLC (the "IHC"). In addition to holding the stock of other JPMorganChase subsidiaries, the IHC owns other assets and provides intercompany lending to the Parent Company. The Parent Company must contribute to the IHC substantially all the net proceeds that it receives from securities issuances. The ability of JPMorgan Chase Bank, N.A. and the IHC to make payments to the Parent Company is limited. JPMorgan Chase Bank, N.A. is subject to regulatory restrictions and requirements relating to the dividends that it can pay to the Parent Company, and the IHC is prohibited from paying dividends or extending credit to the Parent Company if certain capital or liquidity thresholds are breached, or if limits are otherwise imposed by the Parent Company's management or Board of Directors. As a result of these arrangements, the Parent Company is generally dependent on receiving dividends from JPMorgan Chase Bank, N.A. and dividends and borrowings from the IHC in order to: •pay interest on its debt securities •pay dividends on its equity securities •redeem or repurchase outstanding securities, and •fulfill its other payment obligations. The capital and liquidity thresholds to which JPMorgan Chase Bank, N.A. and the IHC are subject could result in the Parent Company seeking protection under bankruptcy laws or otherwise entering into resolution proceedings sooner than if such limitations did not exist.JPMorganChase's liquidity and cost of funding could be adversely affected by downgrades in its credit ratings.JPMorgan Chase & Co. and certain of its principal subsidiaries are rated by credit rating agencies, which evaluate general, firm-specific and industry-specific factors when determining credit ratings, including:•expected future profitability •risk management practices•legal expenses•regulatory developments•ratings differentials between bank holding companies and their bank and non-bank subsidiaries•assumptions about government support, and•economic and geopolitical developments.JPMorganChase has experienced credit ratings downgrades in the past, and there is no assurance that JPMorganChase's credit ratings will not be downgraded in the future. Furthermore, any such downgrade could occur at a time of broader market instability, limiting JPMorganChase's options for responding.A downgrade in JPMorganChase's credit ratings could curtail its business activities and its profitability, including by:•reducing its access to capital markets•materially increasing its cost of issuing and servicing securities•triggering additional collateral or funding requirements, and•decreasing the number of investors and counterparties that are willing or permitted to do business with or lend to JPMorganChase.Any rating downgrade could also increase the credit spreads charged by market participants for taking credit risk on JPMorgan Chase & Co. and its subsidiaries. This could, in turn, adversely affect the value of debt and other obligations of JPMorgan Chase & Co. and its subsidiaries.CapitalJPMorganChase's ability to distribute capital to shareholders, and to support its business activities could be limited if it does not satisfy applicable regulatory capital requirements.JPMorganChase is subject to various regulatory capital requirements, and the amount of capital that it is required to hold under those requirements could increase at any given time due to factors such as: proceedings sooner than if such limitations did not exist. --- ## Modified Risk: Total exposure(g) **Key changes:** - Updated: "(b)The industry rankings presented in the table as of December 31, 2024, are based on the industry rankings of the corresponding exposures as of December 31, 2025, not actual rankings of such exposures as of December 31, 2024." - Updated: "and non-U.S.) at December 31, 2025 and 2024, noted above, the Firm held: $6.1 billion of trading assets at both periods; $20.2 billion and $17.9 billion, respectively, of AFS securities; and $8.6 billion and $9.3 billion, respectively, of HTM securities, issued by U.S." - Updated: "(e)All other includes: SPEs and Private education and civic organizations, representing approximately 95% and 5%, respectively, at December 31, 2025, and 94% and 6%, respectively, at December 31, 2024." - Updated: "(g)Excludes cash placed with banks of $333.8 billion and $459.2 billion, at December 31, 2025 and 2024, respectively, which is predominantly placed with various central banks, primarily Federal Reserve Banks." - Updated: "(j)On January 7, 2026, JPMorganChase announced that Chase will become the new issuer of Apple Card." **Prior (2025):** (a)Also includes commercial card lending-related commitments primarily in CIB. (b)The industry rankings presented in the table as of December 31, 2023, are based on the industry rankings of the corresponding exposures at December 31, 2024, not actual rankings of such exposures at December 31, 2023. (c)Individuals and Individual Entities predominantly consists of Global Private Bank clients within AWM and J.P. Morgan Wealth Management within CCB, and includes exposure to personal investment companies and personal and testamentary trusts. (d)In addition to the credit risk exposure to states and municipal governments (both U.S. and non-U.S.) at December 31, 2024 and 2023, noted above, the Firm held: $6.1 billion and $5.9 billion, respectively, of trading assets; $17.9 billion and $21.4 billion, respectively, of AFS securities; and $9.3 billion and $9.9 billion, respectively, of HTM securities, issued by U.S. state and municipal governments. Refer to Note 2 and Note 10 for further information. (e)All other includes: SPEs and Private education and civic organizations, representing approximately 94% and 6%, respectively, at both December 31, 2024 and 2023. Refer to Note 14 for more information on exposures to SPEs. (f)Receivables from customers reflect held-for-investment margin loans to brokerage clients in CIB, CCB and AWM that are collateralized by assets maintained in the clients' brokerage accounts (including cash on deposit, and primarily liquid and readily marketable debt or equity securities). (g)Excludes cash placed with banks of $459.2 billion and $614.1 billion, at December 31, 2024 and 2023, respectively, which is predominantly placed with various central banks, primarily Federal Reserve Banks. (h)Credit exposure is net of risk participations and excludes the benefit of credit derivatives used in credit portfolio management activities held against derivative receivables or loans and liquid securities and other cash collateral held against derivative receivables. (i)Represents lending-related financial instruments. 208JPMorgan Chase & Co./2024 Form 10-K 208JPMorgan Chase & Co./2024 Form 10-K 208JPMorgan Chase & Co./2024 Form 10-K 208 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** (a)Also includes commercial card lending-related commitments primarily in CIB. (b)The industry rankings presented in the table as of December 31, 2024, are based on the industry rankings of the corresponding exposures as of December 31, 2025, not actual rankings of such exposures as of December 31, 2024. (c)Individuals and Individual Entities predominantly consists of Global Private Bank clients within AWM and J.P. Morgan Wealth Management within CCB, and includes exposure to personal investment companies and personal and testamentary trusts. (d)In addition to the credit risk exposure to states and municipal governments (both U.S. and non-U.S.) at December 31, 2025 and 2024, noted above, the Firm held: $6.1 billion of trading assets at both periods; $20.2 billion and $17.9 billion, respectively, of AFS securities; and $8.6 billion and $9.3 billion, respectively, of HTM securities, issued by U.S. state and municipal governments. Refer to Note 2 and Note 10 for further information. (e)All other includes: SPEs and Private education and civic organizations, representing approximately 95% and 5%, respectively, at December 31, 2025, and 94% and 6%, respectively, at December 31, 2024. Refer to Note 14 for more information on exposures to SPEs. (f)Receivables from customers reflect held-for-investment margin loans to brokerage clients in CIB, CCB and AWM that are collateralized by assets maintained in the clients' brokerage accounts (including cash on deposit, and primarily liquid and readily marketable debt or equity securities). (g)Excludes cash placed with banks of $333.8 billion and $459.2 billion, at December 31, 2025 and 2024, respectively, which is predominantly placed with various central banks, primarily Federal Reserve Banks. (h)Credit exposure is net of risk participations and excludes the benefit of credit derivatives and credit-related notes used in credit portfolio management activities held against derivative receivables or loans and liquid securities and other cash collateral held against derivative receivables. (i)Represents lending-related financial instruments. (j)On January 7, 2026, JPMorganChase announced that Chase will become the new issuer of Apple Card. The Firm entered into a forward purchase commitment on December 30, 2025 to acquire the Apple credit card portfolio, with an expected closing in approximately 24 months (the "Apple Card transaction"). At December 31, 2025, includes estimated total credit exposure related to the Apple Card transaction at the time that the transaction is expected to close of approximately $104 billion, including approximately $23 billion of estimated drawn loans. JPMorgan Chase & Co./2025 Form 10-K201 JPMorgan Chase & Co./2025 Form 10-K201 JPMorgan Chase & Co./2025 Form 10-K201 JPMorgan Chase & Co./2025 Form 10-K 201 --- ## Modified Risk: Impact of derivatives on the Consolidated statements of income **Key changes:** - Updated: "Fair value hedge gains and losses The following tables present derivative instruments, by contract type, used in fair value hedge accounting relationships, as well as pre-tax gains/(losses) recorded on such derivatives and the related hedged items for the years ended December 31, 2025, 2024 and 2023, respectively." - Updated: "Gains/(losses) recorded in incomeIncome statement impact of excluded components(e)OCI impactYear ended December 31, 2025(in millions)DerivativesHedged itemsIncome statement impactAmortization approachChanges in fair valueDerivatives - Gains/(losses) recorded in OCI(f)Contract typeInterest rate(a)(b)$(88)$1,360 $1,272 $ - $1,250 $ - Foreign exchange(c)1,077 (743)334 (696)334 84 Commodity(d)(3,852)4,127 275 - 224 - Total$(2,863)$4,744 $1,881 $(696)$1,808 $84 Gains/(losses) recorded in incomeIncome statement impact of excluded components(e)OCI impactYear ended December 31, 2024(in millions)DerivativesHedged itemsIncome statement impactAmortization approachChanges in fair valueDerivatives - Gains/(losses) recorded in OCI(f)Contract typeInterest rate(a)(b)$711 $(65)$646 $ - $699 $ - Foreign exchange(c)(177)402 225 (532)225 (115)Commodity(d)293 (160)133 - 122 - Total$827 $177 $1,004 $(532)$1,046 $(115)Gains/(losses) recorded in incomeIncome statement impact of excluded components(e)OCI impactYear ended December 31, 2023(in millions)DerivativesHedged itemsIncome statement impactAmortization approachChanges in fair valueDerivatives - Gains/(losses) recorded in OCI(f)Contract typeInterest rate(a)(b)$1,554 $(1,248)$306 $ - $157 $ - Foreign exchange(c)722 (483)239 (601)239 (134)Commodity(d)1,227 (706)521 - 525 - Total$3,503 $(2,437)$1,066 $(601)$921 $(134) Income statement impact of excluded components(e) Derivatives - Gains/(losses) recorded in OCI(f) Interest rate(a)(b) Foreign exchange(c) Commodity(d) Income statement impact of excluded components(e) Derivatives - Gains/(losses) recorded in OCI(f) Interest rate(a)(b) Foreign exchange(c) Commodity(d) Income statement impact of excluded components(e) Derivatives - Gains/(losses) recorded in OCI(f) Interest rate(a)(b) Foreign exchange(c) Commodity(d) (a)Primarily consists of hedges of the benchmark (e.g., Secured Overnight Financing Rate ("SOFR")) interest rate risk of fixed-rate long-term debt and AFS securities." - Updated: "JPMorgan Chase & Co./2025 Form 10-K211 JPMorgan Chase & Co./2025 Form 10-K211 JPMorgan Chase & Co./2025 Form 10-K211 JPMorgan Chase & Co./2025 Form 10-K 211" **Prior (2025):** The following tables provide information related to gains and losses recorded on derivatives based on their hedge accounting designation or purpose. Fair value hedge gains and losses The following tables present derivative instruments, by contract type, used in fair value hedge accounting relationships, as well as pre-tax gains/(losses) recorded on such derivatives and the related hedged items for the years ended December 31, 2024, 2023 and 2022, respectively. The Firm includes gains/(losses) on the hedging derivative in the same line item in the Consolidated statements of income as the related hedged item. Gains/(losses) recorded in incomeIncome statement impact of excluded components(e)OCI impactYear ended December 31, 2024(in millions)DerivativesHedged itemsIncome statement impactAmortization approachChanges in fair valueDerivatives - Gains/(losses) recorded in OCI(f)Contract typeInterest rate(a)(b)$711 $(65)$646 $ - $699 $ - Foreign exchange(c)(177)402 225 (532)225 (115)Commodity(d)293 (160)133 - 122 - Total$827 $177 $1,004 $(532)$1,046 $(115)Gains/(losses) recorded in incomeIncome statement impact of excluded components(e)OCI impactYear ended December 31, 2023(in millions)DerivativesHedged itemsIncome statement impactAmortization approachChanges in fair valueDerivatives - Gains/(losses) recorded in OCI(f)Contract typeInterest rate(a)(b)$1,554 $(1,248)$306 $ - $157 $ - Foreign exchange(c)722 (483)239 (601)239 (134)Commodity(d)1,227 (706)521 - 525 - Total$3,503 $(2,437)$1,066 $(601)$921 $(134)Gains/(losses) recorded in incomeIncome statement impact of excluded components(e)OCI impactYear ended December 31, 2022(in millions)DerivativesHedged itemsIncome statement impactAmortization approachChanges in fair valueDerivatives - Gains/(losses) recorded in OCI(f)Contract typeInterest rate(a)(b)$(14,352)$14,047 $(305)$ - $(262)$ - Foreign exchange(c)(1,317)1,423 106 (528)106 130 Commodity(d)106 (70)36 - 48 - Total$(15,563)$15,400 $(163)$(528)$(108)$130 Income statement impact of excluded components(e) Derivatives - Gains/(losses) recorded in OCI(f) Interest rate(a)(b) Foreign exchange(c) Commodity(d) Income statement impact of excluded components(e) Derivatives - Gains/(losses) recorded in OCI(f) Interest rate(a)(b) Foreign exchange(c) Commodity(d) Income statement impact of excluded components(e) Derivatives - Gains/(losses) recorded in OCI(f) Interest rate(a)(b) Foreign exchange(c) Commodity(d) (a)Primarily consists of hedges of the benchmark (e.g., Secured Overnight Financing Rate ("SOFR")) interest rate risk of fixed-rate long-term debt and AFS securities. Gains and losses were recorded in net interest income. (b)Includes the amortization of income/expense associated with the inception hedge accounting adjustment applied to the hedged item. Excludes the accrual of interest on interest rate swaps and the related hedged items. (c)Primarily consists of hedges of the foreign currency risk of long-term debt and AFS securities for changes in spot foreign currency rates. Gains and losses related to the derivatives and the hedged items due to changes in foreign currency rates and the income statement impact of excluded components were recorded primarily in principal transactions revenue and net interest income. (d)Consists of overall fair value hedges of physical commodities inventories that are generally carried at the lower of cost or net realizable value (net realizable value approximates fair value). Gains and losses were recorded in principal transactions revenue. (e)The assessment of hedge effectiveness excludes certain components of the changes in fair values of the derivatives and hedged items such as forward points on foreign exchange forward contracts, time values and cross-currency basis spreads. Excluded components may impact earnings either through amortization of the initial amount over the life of the derivative or through fair value changes recognized in the current period. (f)Represents the change in value of amounts excluded from the assessment of effectiveness under the amortization approach, predominantly cross-currency basis spreads. The amount excluded at inception of the hedge is recognized in earnings over the life of the derivative. 218JPMorgan Chase & Co./2024 Form 10-K 218JPMorgan Chase & Co./2024 Form 10-K 218JPMorgan Chase & Co./2024 Form 10-K 218 JPMorgan Chase & Co./2024 Form 10-K As of December 31, 2024 and 2023, the following amounts were recorded on the Consolidated balance sheets related to certain cumulative fair value hedge basis adjustments that are expected to reverse through the income statement in future periods as an adjustment to yield. Carrying amount of the hedged items(a)(b)Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items: (d)December 31, 2024(in millions)Active hedging relationshipsDiscontinued hedging relationships(e)TotalAssetsInvestment securities - AFS$203,141 (c)$(1,675)$(1,959)$(3,634)LiabilitiesLong-term debt$211,288 $(3,711)$(9,332)$(13,043)Beneficial interests issued by consolidated VIEs$5,312 $(30)$(5)$(35)Carrying amount of the hedged items(a)(b)Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items: (d)December 31, 2023(in millions)Active hedging relationshipsDiscontinued hedging relationships(e)TotalAssetsInvestment securities - AFS$151,752 (c)$549 $(2,010)$(1,461)LiabilitiesLong-term debt$195,455 $(2,042)$(9,727)$(11,769)Beneficial interests issued by consolidated VIEs$ - $ - $ - $ - Carrying amount of the hedged items(a)(b) Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items: (d) Active hedging relationships Discontinued hedging relationships(e) (c) Beneficial interests issued by consolidated VIEs Carrying amount of the hedged items(a)(b) Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items: (d) Active hedging relationships Discontinued hedging relationships(e) (c) Beneficial interests issued by consolidated VIEs (a)Excludes physical commodities with a carrying value of $6.2 billion and $5.6 billion at December 31, 2024 and 2023, respectively, to which the Firm applies fair value hedge accounting. As a result of the application of hedge accounting, these inventories are carried at fair value, thus recognizing unrealized gains and losses in current periods. Since the Firm exits these positions at fair value, there is no incremental impact to net income in future periods. (b)Excludes hedged items where only foreign currency risk is the designated hedged risk, as basis adjustments related to foreign currency hedges will not reverse through the income statement in future periods. At December 31, 2024 and 2023, the carrying amount excluded for AFS securities was $28.7 billion and $19.3 billion, respectively. At December 31, 2024 and 2023, the carrying amount excluded for long-term debt was $518 million and zero, respectively. (c)Carrying amount represents the amortized cost, net of allowance if applicable. At December 31, 2024 and December 31, 2023, the amortized cost of the portfolio layer method closed portfolios was $72.8 billion and $83.9 billion, of which $41.2 billion and $68.0 billion was designated as hedged, respectively. The amount designated as hedged is the sum of the notional amounts of all outstanding layers in each portfolio, which includes both spot starting and forward starting layers. At December 31, 2024 and December 31, 2023, the cumulative amount of basis adjustments was $(1.7) billion and $(165) million, which is comprised of $(1.2) billion and $73 million for active hedging relationships, and $(566) million and $(238) million for discontinued hedging relationships, respectively. Refer to Note 10 for additional information. (d)Positive (negative) amounts related to assets represent cumulative fair value hedge basis adjustments that will reduce (increase) net interest income in future periods. Positive (negative) amounts related to liabilities represent cumulative fair value hedge basis adjustments that will increase (reduce) net interest income in future periods. (e)Represents basis adjustments existing on the balance sheet date associated with hedged items that have been de-designated from qualifying fair value hedging relationships. JPMorgan Chase & Co./2024 Form 10-K219 JPMorgan Chase & Co./2024 Form 10-K219 JPMorgan Chase & Co./2024 Form 10-K219 JPMorgan Chase & Co./2024 Form 10-K 219 **Current (2026):** The following tables provide information related to gains and losses recorded on derivatives based on their hedge accounting designation or purpose. Fair value hedge gains and losses The following tables present derivative instruments, by contract type, used in fair value hedge accounting relationships, as well as pre-tax gains/(losses) recorded on such derivatives and the related hedged items for the years ended December 31, 2025, 2024 and 2023, respectively. The Firm includes gains/(losses) on the hedging derivative in the same line item in the Consolidated statements of income as the related hedged item. Gains/(losses) recorded in incomeIncome statement impact of excluded components(e)OCI impactYear ended December 31, 2025(in millions)DerivativesHedged itemsIncome statement impactAmortization approachChanges in fair valueDerivatives - Gains/(losses) recorded in OCI(f)Contract typeInterest rate(a)(b)$(88)$1,360 $1,272 $ - $1,250 $ - Foreign exchange(c)1,077 (743)334 (696)334 84 Commodity(d)(3,852)4,127 275 - 224 - Total$(2,863)$4,744 $1,881 $(696)$1,808 $84 Gains/(losses) recorded in incomeIncome statement impact of excluded components(e)OCI impactYear ended December 31, 2024(in millions)DerivativesHedged itemsIncome statement impactAmortization approachChanges in fair valueDerivatives - Gains/(losses) recorded in OCI(f)Contract typeInterest rate(a)(b)$711 $(65)$646 $ - $699 $ - Foreign exchange(c)(177)402 225 (532)225 (115)Commodity(d)293 (160)133 - 122 - Total$827 $177 $1,004 $(532)$1,046 $(115)Gains/(losses) recorded in incomeIncome statement impact of excluded components(e)OCI impactYear ended December 31, 2023(in millions)DerivativesHedged itemsIncome statement impactAmortization approachChanges in fair valueDerivatives - Gains/(losses) recorded in OCI(f)Contract typeInterest rate(a)(b)$1,554 $(1,248)$306 $ - $157 $ - Foreign exchange(c)722 (483)239 (601)239 (134)Commodity(d)1,227 (706)521 - 525 - Total$3,503 $(2,437)$1,066 $(601)$921 $(134) Income statement impact of excluded components(e) Derivatives - Gains/(losses) recorded in OCI(f) Interest rate(a)(b) Foreign exchange(c) Commodity(d) Income statement impact of excluded components(e) Derivatives - Gains/(losses) recorded in OCI(f) Interest rate(a)(b) Foreign exchange(c) Commodity(d) Income statement impact of excluded components(e) Derivatives - Gains/(losses) recorded in OCI(f) Interest rate(a)(b) Foreign exchange(c) Commodity(d) (a)Primarily consists of hedges of the benchmark (e.g., Secured Overnight Financing Rate ("SOFR")) interest rate risk of fixed-rate long-term debt and AFS securities. Gains and losses were recorded in net interest income. (b)Includes the amortization of income/expense associated with the inception hedge accounting adjustment applied to the hedged item. Excludes the accrual of interest on interest rate swaps and the related hedged items. (c)Primarily consists of hedges of the foreign currency risk of long-term debt and AFS securities for changes in spot foreign currency rates. Gains and losses related to the derivatives and the hedged items due to changes in foreign currency rates and the income statement impact of excluded components were recorded primarily in principal transactions revenue and net interest income. (d)Consists of overall fair value hedges of physical commodities inventories that are generally carried at the lower of cost or net realizable value (net realizable value approximates fair value). Gains and losses were recorded in principal transactions revenue. (e)The assessment of hedge effectiveness excludes certain components of the changes in fair values of the derivatives and hedged items such as forward points on foreign exchange forward contracts, time values and cross-currency basis spreads. Excluded components may impact earnings either through amortization of the initial amount over the life of the derivative or through fair value changes recognized in the current period. (f)Represents the change in value of amounts excluded from the assessment of effectiveness under the amortization approach, predominantly cross-currency basis spreads. The amount excluded at inception of the hedge is recognized in earnings over the life of the derivative. JPMorgan Chase & Co./2025 Form 10-K211 JPMorgan Chase & Co./2025 Form 10-K211 JPMorgan Chase & Co./2025 Form 10-K211 JPMorgan Chase & Co./2025 Form 10-K 211 --- ## Modified Risk: Noninterest expense(b) **Key changes:** - Updated: "(g) (d) (i) Other Corporate(b) Deposits(c) (e) (a)Included taxable-equivalent adjustments, predominantly driven by tax-exempt income from municipal bonds, of $154 million, $182 million and $211 million for the years ended December 31, 2025, 2024 and 2023, respectively." - Updated: "(i)Income taxes associated with the First Republic acquisition were reflected in the estimated bargain purchase gain." **Prior (2025):** (d)(e) (e)(g) (h) (e) (e) Deposits(b) Employees (a)Included tax-equivalent adjustments, predominantly driven by tax-exempt income from municipal bonds, of $182 million, $211 million and $235 million for the years ended December 31, 2024, 2023 and 2022, respectively. (b)Predominantly relates to the Firm's international consumer initiatives.(c)Included the net gain related to Visa shares of $7.9 billion recorded in the second quarter of 2024. Refer to Notes 2 and 6 for additional information.(d)Included a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024. Refer to Notes 2 and 6 for additional information.(e)The first quarter of 2024 included an increase of $725 million to the FDIC special assessment reflecting the FDIC's revised estimate of Deposit Insurance Fund losses. The fourth quarter of 2023 included the $2.9 billion FDIC special assessment.(f)Included the estimated bargain purchase gain of $2.8 billion for the year ended December 31, 2023 associated with the First Republic acquisition. Refer to Notes 6 and 34 for additional information.(g)In the second quarter of 2023, substantially all of the expense associated with First Republic was reported in Corporate. Commencing in the third quarter of 2023, the expense was aligned to the appropriate LOBs.(h)Income taxes associated with the First Republic acquisition were reflected in the estimated bargain purchase gain. million and $235 million for the years ended December 31, 2024, 2023 and 2022, respectively. (b)Predominantly relates to the Firm's international consumer initiatives. (c)Included the net gain related to Visa shares of $7.9 billion recorded in the second quarter of 2024. Refer to Notes 2 and 6 for additional information. (d)Included a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024. Refer to Notes 2 and 6 for additional information. (e)The first quarter of 2024 included an increase of $725 million to the FDIC special assessment reflecting the FDIC's revised estimate of Deposit Insurance Fund losses. The fourth quarter of 2023 included the $2.9 billion FDIC special assessment. (f)Included the estimated bargain purchase gain of $2.8 billion for the year ended December 31, 2023 associated with the First Republic acquisition. Refer to Notes 6 and 34 for additional information. (g)In the second quarter of 2023, substantially all of the expense associated with First Republic was reported in Corporate. Commencing in the third quarter of 2023, the expense was aligned to the appropriate LOBs. (h)Income taxes associated with the First Republic acquisition were reflected in the estimated bargain purchase gain. 88JPMorgan Chase & Co./2024 Form 10-K 88JPMorgan Chase & Co./2024 Form 10-K 88JPMorgan Chase & Co./2024 Form 10-K 88 JPMorgan Chase & Co./2024 Form 10-K 2024 compared with 2023Net income was $10.6 billion, compared with $2.8 billion in the prior year.Net revenue was $17.4 billion, compared with $8.0 billion in the prior year.Net interest income was $9.8 billion, up 24%, driven by the impact of balance sheet actions, primarily reinvestments in the investment securities portfolio, partially offset by the net impact of rates. Noninterest revenue was $7.6 billion, compared with $132 million in the prior year. Excluding the $7.9 billion net gain related to Visa shares recorded in the second quarter of 2024 and the prior-year $2.8 billion estimated bargain purchase gain associated with the First Republic acquisition, revenue was up $2.4 billion, predominantly driven by lower investment securities losses, primarily on sales of U.S. Treasuries and U.S. GSE and government agency MBS, associated with repositioning the investment securities portfolio in Treasury and CIO. Noninterest expense was $4.0 billion, down 29%, driven by: •a lower FDIC special assessment,•lower expense associated with the First Republic acquisition as the prior year expense in Corporate included individuals associated with First Republic who were not employees of the Firm until July 2023, and this expense was subsequently aligned to the appropriate LOBs starting in the third quarter of 2023, and•lower legal expense, partially offset by•a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024, and•higher costs associated with the Firm's international consumer initiatives. The provision for credit losses was $10 million.The provision in the prior year was $171 million, reflecting a net addition to the allowance for credit losses related to a single name exposure, which was subsequently charged off upon the restructuring of a loan.Refer to Note 10 and Note 13 for additional information on the investment securities portfolio and the allowance for credit losses.The current period income tax expense was driven by changes in the level and mix of income and expenses subject to U.S. federal and state and local taxes, including the impact of the net gain on Visa shares and the contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024, partially offset by benefits related to tax audit settlements.Other Corporate includes the Firm's international consumer initiatives, which primarily consists of Chase U.K., Nutmeg, and an ownership stake in C6 Bank.The deposits within Corporate relate to the Firm's international consumer initiatives and have increased as a result of growth in client accounts, reflecting the impact of additional product offerings. 2024 compared with 2023Net income was $10.6 billion, compared with $2.8 billion in the prior year.Net revenue was $17.4 billion, compared with $8.0 billion in the prior year.Net interest income was $9.8 billion, up 24%, driven by the impact of balance sheet actions, primarily reinvestments in the investment securities portfolio, partially offset by the net impact of rates. Noninterest revenue was $7.6 billion, compared with $132 million in the prior year. Excluding the $7.9 billion net gain related to Visa shares recorded in the second quarter of 2024 and the prior-year $2.8 billion estimated bargain purchase gain associated with the First Republic acquisition, revenue was up $2.4 billion, predominantly driven by lower investment securities losses, primarily on sales of U.S. Treasuries and U.S. GSE and government agency MBS, associated with repositioning the investment securities portfolio in Treasury and CIO. Noninterest expense was $4.0 billion, down 29%, driven by: •a lower FDIC special assessment,•lower expense associated with the First Republic acquisition as the prior year expense in Corporate included individuals associated with First Republic who were not employees of the Firm until July 2023, and this expense was subsequently aligned to the appropriate LOBs starting in the third quarter of 2023, and•lower legal expense, partially offset by•a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024, and•higher costs associated with the Firm's international consumer initiatives. The provision for credit losses was $10 million.The provision in the prior year was $171 million, reflecting a net addition to the allowance for credit losses related to a single name exposure, which was subsequently charged off upon the restructuring of a loan.Refer to Note 10 and Note 13 for additional information on the investment securities portfolio and the allowance for credit losses.The current period income tax expense was driven by changes in the level and mix of income and expenses subject to U.S. federal and state and local taxes, including the impact of the net gain on Visa shares and the contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024, partially offset by benefits related to tax audit settlements. **Current (2026):** (g) (d) (i) Other Corporate(b) Deposits(c) (e) (a)Included taxable-equivalent adjustments, predominantly driven by tax-exempt income from municipal bonds, of $154 million, $182 million and $211 million for the years ended December 31, 2025, 2024 and 2023, respectively. (b)Included FDIC special assessment accrual releases of $763 million and an accrual increase of $725 million for the years ended December 31, 2025 and 2024, respectively, which are adjustments to the initial $2.9 billion estimate recorded in the fourth quarter of 2023.(c)Predominantly relates to the Firm's international consumer initiatives.(d)Included a $774 million income tax benefit recorded in the second quarter of 2025, driven by the resolution of certain tax audits and the impact of tax regulations related to foreign currency translation gains and losses finalized in 2024 and effective for 2025.(e)In the first quarter of 2025, 768 employees were transferred from the LOBs to Corporate as a result of the centralization of certain functions.(f)Included the net gain related to Visa shares of $7.9 billion recorded in the second quarter of 2024. Refer to Note 6 for additional information.(g)Included a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024. Refer to Note 6 for additional information.(h)Included the estimated bargain purchase gain of $2.8 billion for the year ended December 31, 2023 associated with the First Republic acquisition. Refer to Notes 6 and 34 for additional information.(i)Income taxes associated with the First Republic acquisition were reflected in the estimated bargain purchase gain. $182 million and $211 million for the years ended December 31, 2025, 2024 and 2023, respectively. (b)Included FDIC special assessment accrual releases of $763 million and an accrual increase of $725 million for the years ended December 31, 2025 and 2024, respectively, which are adjustments to the initial $2.9 billion estimate recorded in the fourth quarter of 2023. (c)Predominantly relates to the Firm's international consumer initiatives. (d)Included a $774 million income tax benefit recorded in the second quarter of 2025, driven by the resolution of certain tax audits and the impact of tax regulations related to foreign currency translation gains and losses finalized in 2024 and effective for 2025. (e)In the first quarter of 2025, 768 employees were transferred from the LOBs to Corporate as a result of the centralization of certain functions. (f)Included the net gain related to Visa shares of $7.9 billion recorded in the second quarter of 2024. Refer to Note 6 for additional information. (g)Included a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024. Refer to Note 6 for additional information. (h)Included the estimated bargain purchase gain of $2.8 billion for the year ended December 31, 2023 associated with the First Republic acquisition. Refer to Notes 6 and 34 for additional information. (i)Income taxes associated with the First Republic acquisition were reflected in the estimated bargain purchase gain. 80JPMorgan Chase & Co./2025 Form 10-K 80JPMorgan Chase & Co./2025 Form 10-K 80JPMorgan Chase & Co./2025 Form 10-K 80 JPMorgan Chase & Co./2025 Form 10-K 2025 compared with 2024Net income was $4.5 billion, compared with $10.6 billion in the prior year.Net revenue was $7.0 billion, compared with $17.4 billion in the prior year.Net interest income was $6.1 billion, down $3.7 billion, driven by the impact of lower rates and changes in FTP for consumer deposits, partially offset by the impact of investment securities activity. Refer to Business Segment & Corporate Results on page 63 for additional information on FTP.Noninterest revenue was $911 million, compared with $7.6 billion in the prior year, driven by:•the absence of the $7.9 billion net gain related to Visa shares recorded in the second quarter of 2024,partially offset by•lower net investment securities losses associated with repositioning the investment securities portfolio in Treasury and CIO. The prior year net loss was primarily related to sales of U.S. GSE and government agency MBS and U.S. Treasuries, and•the $588 million First Republic-related gain recorded in the first quarter of 2025. Noninterest expense was $1.8 billion, down 54%, primarily driven by: •lower FDIC-related expense driven by releases of FDIC special assessment accruals of $763 million, compared with an accrual increase of $725 million in the first quarter of the prior year, and•the absence of the following items recorded in the prior year-a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation, and-restructuring and integration costs associated with First Republic. Refer to Note 6 for additional information on Visa shares and FDIC-related expense, Note 10 and Note 13 for additional information on the investment securities portfolio and the allowance for credit losses, and Note 6 and Note 34 for additional information on the First Republic acquisition.The current period income tax expense was driven by: •changes in the level and mix of income and expenses subject to U.S. federal, state and local taxes,partially offset by•a $774 million income tax benefit recorded in the second quarter of 2025, driven by the resolution of certain tax audits and the impact of tax regulations related to foreign currency translation gains and losses finalized in 2024 and effective for 2025.Other Corporate includes the Strategic Investment Group within the Firm's Security and Resiliency Initiative, as well as the Firm's international consumer initiatives, which primarily consist of Chase U.K., J.P. Morgan Personal Investing (formerly Nutmeg) and an ownership stake in C6 Bank.The deposits within Corporate relate to the Firm's international consumer initiatives and have increased as a result of growth in customer accounts. 2025 compared with 2024Net income was $4.5 billion, compared with $10.6 billion in the prior year.Net revenue was $7.0 billion, compared with $17.4 billion in the prior year.Net interest income was $6.1 billion, down $3.7 billion, driven by the impact of lower rates and changes in FTP for consumer deposits, partially offset by the impact of investment securities activity. Refer to Business Segment & Corporate Results on page 63 for additional information on FTP.Noninterest revenue was $911 million, compared with $7.6 billion in the prior year, driven by:•the absence of the $7.9 billion net gain related to Visa shares recorded in the second quarter of 2024,partially offset by•lower net investment securities losses associated with repositioning the investment securities portfolio in Treasury and CIO. The prior year net loss was primarily related to sales of U.S. GSE and government agency MBS and U.S. Treasuries, and•the $588 million First Republic-related gain recorded in the first quarter of 2025. Noninterest expense was $1.8 billion, down 54%, primarily driven by: •lower FDIC-related expense driven by releases of FDIC special assessment accruals of $763 million, compared with an accrual increase of $725 million in the first quarter of the prior year, and•the absence of the following items recorded in the prior year-a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation, and-restructuring and integration costs associated with First Republic. Refer to Note 6 for additional information on Visa shares and FDIC-related expense, Note 10 and Note 13 for additional information on the investment securities portfolio and the allowance for credit losses, and Note 6 and Note 34 for additional information on the First Republic acquisition.The current period income tax expense was driven by: •changes in the level and mix of income and expenses subject to U.S. federal, state and local taxes,partially offset by•a $774 million income tax benefit recorded in the second quarter of 2025, driven by the resolution of certain tax audits and the impact of tax regulations related to foreign currency translation gains and losses finalized in 2024 and effective for 2025. --- ## Modified Risk: Changes in fair value under the fair value option election **Key changes:** - Updated: "The following table presents the changes in fair value included in the Consolidated statements of income for the years ended December 31, 2025, 2024 and 2023, for items for which the fair value option was elected." - Updated: "202520242023December 31, (in millions)Principal transactionsAll other incomeTotal changes in fair value recorded(e)Principal transactionsAll other incomeTotal changes in fair value recorded(e)Principal transactionsAll other incomeTotal changes in fair value recorded(e)Federal funds sold and securities purchased under resale agreements$161 $ - $161 $144 $ - $144 $300 $ - $300 Securities borrowed(3) - (3)347 - 347 164 - 164 Trading assets:Debt and equity instruments, excluding loans3,020 - 3,020 7,205 - 7,205 3,656 - 3,656 Loans reported as trading assets:Changes in instrument-specific credit risk(9) - (9)346 - 346 248 - 248 Other changes in fair value14 20 (c)34 9 10 (c)19 3 5 (c)8 Loans:Changes in instrument-specific credit risk541 - 541 517 (6)(c)511 322 (4)(c)318 Other changes in fair value463 782 (c)1,245 75 371 (c)446 427 216 (c)643 Other assets47 (3)(d)44 63 - 63 282 (4)(d)278 Deposits(a)(1,839) - (1,839)(3,398) - (3,398)(2,582) - (2,582)Federal funds purchased and securities loaned or sold under repurchase agreements(26) - (26)(12) - (12)(121) - (121)Short-term borrowings(a) (1,405) - (1,405)(922) - (922)(567) - (567)Trading liabilities(31) - (31)(1) - (1)(24) - (24)Other liabilities(5) - (5)(11) - (11)(16) - (16)Long-term debt(a)(b)(7,112)(4)(c)(d)(7,116)(2,711)(6)(c)(d)(2,717)(5,875)(78)(c)(d)(5,953) Total changes in fair value recorded(e) Total changes in fair value recorded(e) Total changes in fair value recorded(e) Federal funds sold and securities purchased under resale agreements Debt and equity instruments, excluding loans Loans reported as trading assets: (c) (c) (c) (c) (c) (c) (c) (c) (d) (d) Deposits(a) Federal funds purchased and securities loaned or sold under repurchase agreements Short-term borrowings(a) Other liabilities Long-term debt(a)(b) (c)(d) (c)(d) (c)(d) (a)Unrealized gains/(losses) due to instrument-specific credit risk (DVA) for liabilities for which the fair value option has been elected are recorded in OCI, while realized gains/(losses) are recorded in principal transactions revenue." - Updated: "JPMorgan Chase & Co./2025 Form 10-K197 JPMorgan Chase & Co./2025 Form 10-K197 JPMorgan Chase & Co./2025 Form 10-K197 JPMorgan Chase & Co./2025 Form 10-K 197" **Prior (2025):** The following table presents the changes in fair value included in the Consolidated statements of income for the years ended December 31, 2024, 2023 and 2022, for items for which the fair value option was elected. The profit and loss information presented below only includes the financial instruments that were elected to be measured at fair value; related risk management instruments, which are required to be measured at fair value, are not included in the table. 202420232022December 31, (in millions)Principal transactionsAll other incomeTotal changes in fair value recorded(e)Principal transactionsAll other incomeTotal changes in fair value recorded(e)Principal transactionsAll other incomeTotal changes in fair value recorded(e)Federal funds sold and securities purchased under resale agreements$144 $ - $144 $300 $ - $300 $(384)$ - $(384)Securities borrowed347 - 347 164 - 164 (499) - (499)Trading assets:Debt and equity instruments, excluding loans7,205 - 7,205 3,656 - 3,656 (1,703) - (1,703)Loans reported as trading assets:Changes in instrument-specific credit risk346 - 346 248 - 248 (136) - (136)Other changes in fair value9 10 (c)19 3 5 (c)8 (59) - (59)Loans:Changes in instrument-specific credit risk517 (6)(c)511 322 (4)(c)318 (242)21 (c)(221)Other changes in fair value75 371 (c)446 427 216 (c)643 (1,421)(794)(c)(2,215)Other assets63 - 63 282 (4)(d)278 39 (6)(d)33 Deposits(a)(3,398) - (3,398)(2,582) - (2,582)901 - 901 Federal funds purchased and securities loaned or sold under repurchase agreements(12) - (12)(121) - (121)181 - 181 Short-term borrowings(a) (922) - (922)(567) - (567)473 - 473 Trading liabilities(1) - (1)(24) - (24)43 - 43 Beneficial interests issued by consolidated VIEs - - - - - - (1) - (1)Other liabilities(11) - (11)(16) - (16)(11) - (11)Long-term debt(a)(b)(2,711)(6)(c)(d)(2,717)(5,875)(78)(c)(d)(5,953)8,990 98 (c)(d)9,088 Total changes in fair value recorded(e) Total changes in fair value recorded(e) Total changes in fair value recorded(e) Federal funds sold and securities purchased under resale agreements Debt and equity instruments, excluding loans Loans reported as trading assets: (c) (c) (c) (c) (c) (c) (c) (c) (d) (d) Deposits(a) Federal funds purchased and securities loaned or sold under repurchase agreements Short-term borrowings(a) Beneficial interests issued by consolidated VIEs Other liabilities Long-term debt(a)(b) (c)(d) (c)(d) (c)(d) (a)Unrealized gains/(losses) due to instrument-specific credit risk (DVA) for liabilities for which the fair value option has been elected are recorded in OCI, while realized gains/(losses) are recorded in principal transactions revenue. Realized gains/(losses) due to instrument-specific credit risk recorded in principal transactions revenue were not material for the years ended December 31, 2024, 2023 and 2022. (b)Long-term debt measured at fair value predominantly relates to structured notes. Although the risk associated with the structured notes is actively managed, the gains/(losses) reported in this table do not include the income statement impact of the risk management instruments used to manage such risk. (c)Reported in mortgage fees and related income. (d)Reported in other income. (e)Changes in fair value exclude contractual interest, which is included in interest income and interest expense for all instruments other than certain hybrid financial instruments in CIB. Refer to Note 7 for further information regarding interest income and interest expense. 204JPMorgan Chase & Co./2024 Form 10-K 204JPMorgan Chase & Co./2024 Form 10-K 204JPMorgan Chase & Co./2024 Form 10-K 204 JPMorgan Chase & Co./2024 Form 10-K Determination of instrument-specific credit risk for items for which the fair value option was elected The following describes how the gains and losses that are attributable to changes in instrument-specific credit risk, were determined. •Loans and lending-related commitments: For floating-rate instruments, all changes in value are attributed to instrument-specific credit risk. For fixed-rate instruments, an allocation of the changes in value for the period is made between those changes in value that are interest rate-related and changes in value that are credit-related. Allocations are generally based on an analysis of borrower-specific credit spread and recovery information, where available, or benchmarking to similar entities or industries. •Long-term debt: Changes in value attributable to instrument-specific credit risk were derived principally from observable changes in the Firm's credit spread as observed in the bond market. •Securities financing agreements: Generally, for these types of agreements, there is a requirement that collateral be maintained with a market value equal to or in excess of the principal amount loaned; as a result, there would be no adjustment or an immaterial adjustment for instrument-specific credit risk related to these agreements. Determination of instrument-specific credit risk for items for which the fair value option was elected The following describes how the gains and losses that are attributable to changes in instrument-specific credit risk, were determined. •Loans and lending-related commitments: For floating-rate instruments, all changes in value are attributed to instrument-specific credit risk. For fixed-rate instruments, an allocation of the changes in value for the period is made between those changes in value that are interest rate-related and changes in value that are credit-related. Allocations are generally based on an analysis of borrower-specific credit spread and recovery information, **Current (2026):** The following table presents the changes in fair value included in the Consolidated statements of income for the years ended December 31, 2025, 2024 and 2023, for items for which the fair value option was elected. The profit and loss information presented below only includes the financial instruments that were elected to be measured at fair value; related risk management instruments, which are required to be measured at fair value, are not included in the table. 202520242023December 31, (in millions)Principal transactionsAll other incomeTotal changes in fair value recorded(e)Principal transactionsAll other incomeTotal changes in fair value recorded(e)Principal transactionsAll other incomeTotal changes in fair value recorded(e)Federal funds sold and securities purchased under resale agreements$161 $ - $161 $144 $ - $144 $300 $ - $300 Securities borrowed(3) - (3)347 - 347 164 - 164 Trading assets:Debt and equity instruments, excluding loans3,020 - 3,020 7,205 - 7,205 3,656 - 3,656 Loans reported as trading assets:Changes in instrument-specific credit risk(9) - (9)346 - 346 248 - 248 Other changes in fair value14 20 (c)34 9 10 (c)19 3 5 (c)8 Loans:Changes in instrument-specific credit risk541 - 541 517 (6)(c)511 322 (4)(c)318 Other changes in fair value463 782 (c)1,245 75 371 (c)446 427 216 (c)643 Other assets47 (3)(d)44 63 - 63 282 (4)(d)278 Deposits(a)(1,839) - (1,839)(3,398) - (3,398)(2,582) - (2,582)Federal funds purchased and securities loaned or sold under repurchase agreements(26) - (26)(12) - (12)(121) - (121)Short-term borrowings(a) (1,405) - (1,405)(922) - (922)(567) - (567)Trading liabilities(31) - (31)(1) - (1)(24) - (24)Other liabilities(5) - (5)(11) - (11)(16) - (16)Long-term debt(a)(b)(7,112)(4)(c)(d)(7,116)(2,711)(6)(c)(d)(2,717)(5,875)(78)(c)(d)(5,953) Total changes in fair value recorded(e) Total changes in fair value recorded(e) Total changes in fair value recorded(e) Federal funds sold and securities purchased under resale agreements Debt and equity instruments, excluding loans Loans reported as trading assets: (c) (c) (c) (c) (c) (c) (c) (c) (d) (d) Deposits(a) Federal funds purchased and securities loaned or sold under repurchase agreements Short-term borrowings(a) Other liabilities Long-term debt(a)(b) (c)(d) (c)(d) (c)(d) (a)Unrealized gains/(losses) due to instrument-specific credit risk (DVA) for liabilities for which the fair value option has been elected are recorded in OCI, while realized gains/(losses) are recorded in principal transactions revenue. Realized gains/(losses) due to instrument-specific credit risk recorded in principal transactions revenue were not material for the years ended December 31, 2025, 2024 and 2023. (b)Long-term debt measured at fair value predominantly relates to structured notes. Although the risk associated with the structured notes is actively managed, the gains/(losses) reported in this table do not include the income statement impact of the risk management instruments used to manage such risk. (c)Reported in mortgage fees and related income. (d)Reported in other income. (e)Changes in fair value exclude contractual interest, which is included in interest income and interest expense for all instruments other than certain hybrid financial instruments in CIB. Refer to Note 7 for further information regarding interest income and interest expense. JPMorgan Chase & Co./2025 Form 10-K197 JPMorgan Chase & Co./2025 Form 10-K197 JPMorgan Chase & Co./2025 Form 10-K197 JPMorgan Chase & Co./2025 Form 10-K 197 --- ## Modified Risk: Risk reporting **Key changes:** - Updated: "110JPMorgan Chase & Co./2025 Form 10-K 110JPMorgan Chase & Co./2025 Form 10-K 110JPMorgan Chase & Co./2025 Form 10-K 110 JPMorgan Chase & Co./2025 Form 10-K CREDIT PORTFOLIO CREDIT PORTFOLIO Credit risk is the risk associated with the default or change in credit profile of a client, counterparty or customer.In the following tables, total loans include loans retained (i.e., held-for-investment); loans held-for-sale; and certain loans accounted for at fair value." - Updated: "Refer to Consumer Credit Portfolio on pages 112-117 and Note 12 for further discussions of the consumer credit environment, consumer loans and nonperforming exposure." - Updated: "At December 31, 2025 and 2024, mortgage loans 90 or more days past due and insured by U.S." - Updated: "Refer to Consumer Credit Portfolio on pages 112-117 and Note 12 for further discussions of the consumer credit environment, consumer loans and nonperforming exposure." - Updated: "Refer to Consumer Credit Portfolio on pages 112-117 and Note 12 for further discussions of the consumer credit environment, consumer loans and nonperforming exposure." **Prior (2025):** To enable monitoring of credit risk and effective decision-making, aggregate credit exposure, credit quality forecasts, concentration levels and risk profile changes are reported regularly to senior members of Credit Risk Management. Detailed portfolio reporting of industry, clients, counterparties and customers, product and geography are prepared, and the appropriateness of the allowance for credit losses is reviewed by senior management at least on a quarterly basis. Through the risk reporting and governance structure, credit risk trends and limit exceptions are provided regularly to, and discussed with, risk committees, senior management and the Board of Directors. 118JPMorgan Chase & Co./2024 Form 10-K 118JPMorgan Chase & Co./2024 Form 10-K 118JPMorgan Chase & Co./2024 Form 10-K 118 JPMorgan Chase & Co./2024 Form 10-K CREDIT PORTFOLIO CREDIT PORTFOLIO Credit risk is the risk associated with the default or change in credit profile of a client, counterparty or customer.In the following tables, total loans include loans retained (i.e., held-for-investment); loans held-for-sale; and certain loans accounted for at fair value. The following tables do not include loans which the Firm accounts for at fair value and classifies as trading assets; refer to Notes 2 and 3 for further information regarding these loans. Refer to Notes 12, 28, and 5 for additional information on the Firm's loans, lending-related commitments and derivative receivables, including the Firm's related accounting policies. Refer to Note 10 for information regarding the credit risk inherent in the Firm's investment securities portfolio; and refer to Note 11 for information regarding credit risk inherent in the securities financing portfolio. Refer to Consumer Credit Portfolio on pages 120-125 and Note 12 for further discussions of the consumer credit environment, consumer loans and nonperforming exposure. Refer to Wholesale Credit Portfolio on pages 126-136 and Note 12 for further discussions of the wholesale credit environment and wholesale loans.Total credit portfolioDecember 31,(in millions)Credit exposureNonperforming(c)2024202320242023Loans retained$1,299,590 $1,280,870 $7,175 $5,989 Loans held-for-sale7,048 3,985 160 184 Loans at fair value 41,350 38,851 1,502 744 Total loans 1,347,988 1,323,706 8,837 6,917 Derivative receivables60,967 54,864 145 364 Receivables from customers(a)51,929 47,625 - - Total credit-related assets1,460,884 1,426,195 8,982 7,281 Assets acquired in loan satisfactionsReal estate ownedNANA284 274 OtherNANA34 42 Total assets acquired in loan satisfactionsNANA318 316 Lending-related commitments1,577,622 1,497,847 737 464 Total credit portfolio$3,038,506 $2,924,042 $10,037 $8,061 Credit derivatives and credit-related notes used in credit portfolio management activities(b)$(41,367)$(37,779)$ - $ - Liquid securities and other cash collateral held against derivatives(28,160)(22,461)NANA(a) Receivables from customers reflect held-for-investment margin loans to brokerage clients in CIB, CCB and AWM; these are reported within accrued interest and accounts receivable on the Consolidated balance sheets.(b) Represents the net notional amount of protection purchased and sold through credit derivatives and credit-related notes used to manage credit exposures.(c) Excludes mortgage loans past due and insured by U.S. government agencies, which are primarily 90 or more days past due. These loans have been excluded based upon the government guarantee. At December 31, 2024 and 2023, mortgage loans 90 or more days past due and insured by U.S. government agencies were $121 million and $182 million, respectively. In addition, the Firm's policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance.The following table provides information on Firmwide nonaccrual loans to total loans.December 31,(in millions, except ratios)20242023Total nonaccrual loans$8,837 $6,917 Total loans1,347,988 1,323,706 Firmwide nonaccrual loans to total loans outstanding0.66 %0.52 %The following table provides information about the Firm's net charge-offs and recoveries.December 31,(in millions, except ratios)20242023Net charge-offs$8,638 $6,209 Average retained loans1,271,344 1,202,348 Net charge-off rates0.68 %0.52 % Credit risk is the risk associated with the default or change in credit profile of a client, counterparty or customer.In the following tables, total loans include loans retained (i.e., held-for-investment); loans held-for-sale; and certain loans accounted for at fair value. The following tables do not include loans which the Firm accounts for at fair value and classifies as trading assets; refer to Notes 2 and 3 for further information regarding these loans. Refer to Notes 12, 28, and 5 for additional information on the Firm's loans, lending-related commitments and derivative receivables, including the Firm's related accounting policies. Refer to Note 10 for information regarding the credit risk inherent in the Firm's investment securities portfolio; and refer to Note 11 for information regarding credit risk inherent in the securities financing portfolio. Refer to Consumer Credit Portfolio on pages 120-125 and Note 12 for further discussions of the consumer credit environment, consumer loans and nonperforming exposure. Refer to Wholesale Credit Portfolio on pages 126-136 and Note 12 for further discussions of the wholesale credit environment and wholesale loans. Credit risk is the risk associated with the default or change in credit profile of a client, counterparty or customer. In the following tables, total loans include loans retained (i.e., held-for-investment); loans held-for-sale; and certain loans accounted for at fair value. The following tables do not include loans which the Firm accounts for at fair value and classifies as trading assets; refer to Notes 2 and 3 for further information regarding these loans. Refer to Notes 12, 28, and 5 for additional information on the Firm's loans, lending-related commitments and derivative receivables, including the Firm's related accounting policies. Refer to Note 10 for information regarding the credit risk inherent in the Firm's investment securities portfolio; and refer to Note 11 for information regarding credit risk inherent in the securities financing portfolio. Refer to Consumer Credit Portfolio on pages 120-125 and Note 12 for further discussions of the consumer credit environment, consumer loans and nonperforming exposure. Refer to Wholesale Credit Portfolio on pages 126-136 and Note 12 for further discussions of the wholesale credit environment and wholesale loans. Total credit portfolioDecember 31,(in millions)Credit exposureNonperforming(c)2024202320242023Loans retained$1,299,590 $1,280,870 $7,175 $5,989 Loans held-for-sale7,048 3,985 160 184 Loans at fair value 41,350 38,851 1,502 744 Total loans 1,347,988 1,323,706 8,837 6,917 Derivative receivables60,967 54,864 145 364 Receivables from customers(a)51,929 47,625 - - Total credit-related assets1,460,884 1,426,195 8,982 7,281 Assets acquired in loan satisfactionsReal estate ownedNANA284 274 OtherNANA34 42 Total assets acquired in loan satisfactionsNANA318 316 Lending-related commitments1,577,622 1,497,847 737 464 Total credit portfolio$3,038,506 $2,924,042 $10,037 $8,061 Credit derivatives and credit-related notes used in credit portfolio management activities(b)$(41,367)$(37,779)$ - $ - Liquid securities and other cash collateral held against derivatives(28,160)(22,461)NANA(a) Receivables from customers reflect held-for-investment margin loans to brokerage clients in CIB, CCB and AWM; these are reported within accrued interest and accounts receivable on the Consolidated balance sheets.(b) Represents the net notional amount of protection purchased and sold through credit derivatives and credit-related notes used to manage credit exposures.(c) Excludes mortgage loans past due and insured by U.S. government agencies, which are primarily 90 or more days past due. These loans have been excluded based upon the government guarantee. At December 31, 2024 and 2023, mortgage loans 90 or more days past due and insured by U.S. government agencies were $121 million and $182 million, respectively. In addition, the Firm's policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance.The following table provides information on Firmwide nonaccrual loans to total loans.December 31,(in millions, except ratios)20242023Total nonaccrual loans$8,837 $6,917 Total loans1,347,988 1,323,706 Firmwide nonaccrual loans to total loans outstanding0.66 %0.52 %The following table provides information about the Firm's net charge-offs and recoveries.December 31,(in millions, except ratios)20242023Net charge-offs$8,638 $6,209 Average retained loans1,271,344 1,202,348 Net charge-off rates0.68 %0.52 % Total credit portfolioDecember 31,(in millions)Credit exposureNonperforming(c)2024202320242023Loans retained$1,299,590 $1,280,870 $7,175 $5,989 Loans held-for-sale7,048 3,985 160 184 Loans at fair value 41,350 38,851 1,502 744 Total loans 1,347,988 1,323,706 8,837 6,917 Derivative receivables60,967 54,864 145 364 Receivables from customers(a)51,929 47,625 - - Total credit-related assets1,460,884 1,426,195 8,982 7,281 Assets acquired in loan satisfactionsReal estate ownedNANA284 274 OtherNANA34 42 Total assets acquired in loan satisfactionsNANA318 316 Lending-related commitments1,577,622 1,497,847 737 464 Total credit portfolio$3,038,506 $2,924,042 $10,037 $8,061 Credit derivatives and credit-related notes used in credit portfolio management activities(b)$(41,367)$(37,779)$ - $ - Liquid securities and other cash collateral held against derivatives(28,160)(22,461)NANA Nonperforming(c) Receivables from customers(a) **Current (2026):** To enable monitoring of credit risk and effective decision-making, aggregate credit exposure, credit quality forecasts, concentration levels and risk profile changes are reported regularly to senior members of Credit Risk Management. Detailed portfolio reporting of industry, clients, counterparties and customers, product and geography are prepared, and the appropriateness of the allowance for credit losses is reviewed by senior management at least on a quarterly basis. Through the risk reporting and governance structure, credit risk trends and limit exceptions are provided regularly to, and discussed with, risk committees, senior management and the Board of Directors. 110JPMorgan Chase & Co./2025 Form 10-K 110JPMorgan Chase & Co./2025 Form 10-K 110JPMorgan Chase & Co./2025 Form 10-K 110 JPMorgan Chase & Co./2025 Form 10-K CREDIT PORTFOLIO CREDIT PORTFOLIO Credit risk is the risk associated with the default or change in credit profile of a client, counterparty or customer.In the following tables, total loans include loans retained (i.e., held-for-investment); loans held-for-sale; and certain loans accounted for at fair value. The following tables do not include loans which the Firm accounts for at fair value and classifies as trading assets; refer to Notes 2 and 3 for further information regarding these loans. Refer to Notes 12, 28, and 5 for additional information on the Firm's loans, lending-related commitments and derivative receivables, including the Firm's related accounting policies. Refer to Note 10 for information regarding the credit risk inherent in the Firm's investment securities portfolio; and refer to Note 11 for information regarding credit risk inherent in the securities financing portfolio. Refer to Consumer Credit Portfolio on pages 112-117 and Note 12 for further discussions of the consumer credit environment, consumer loans and nonperforming exposure. Refer to Wholesale Credit Portfolio on pages 118-128 and Note 12 for further discussions of the wholesale credit environment, wholesale loans and nonperforming exposure.Total credit portfolioDecember 31,(in millions)Credit exposureNonperforming(d)2025202420252024Loans retained$1,408,905 $1,299,590 $8,273 $7,175 Loans held-for-sale13,840 7,048 67 160 Loans at fair value 70,684 41,350 1,517 1,502 Total loans 1,493,429 1,347,988 9,857 8,837 Derivative receivables57,777 60,967 204 145 Receivables from customers(a)47,336 51,929 - - Total credit-related assets1,598,542 1,460,884 10,061 8,982 Assets acquired in loan satisfactionsReal estate ownedNANA267 284 OtherNANA31 34 Total assets acquired in loan satisfactionsNANA298 318 Lending-related commitments1,817,307 (c)1,577,622 925 737 Total credit portfolio$3,415,849 $3,038,506 $11,284 $10,037 Credit derivatives and credit-related notes used in credit portfolio management activities(b)$(24,383)$(41,367)$ - $ - Liquid securities and other cash collateral held against derivatives(28,891)(28,160)NANA(a)Receivables from customers reflect held-for-investment margin loans to brokerage clients in CIB, CCB and AWM; these are reported within accrued interest and accounts receivable on the Consolidated balance sheets.(b)Represents the net notional amount of protection purchased and sold through credit derivatives and credit-related notes used to manage credit exposures.(c)Includes estimated total credit exposure related to the Apple Card transaction at the time that the transaction is expected to close of approximately $104 billion, including approximately $23 billion of estimated drawn loans.(d)Excludes mortgage loans past due and insured by U.S. government agencies, which are primarily 90 or more days past due. These loans have been excluded based upon the government guarantee. At December 31, 2025 and 2024, mortgage loans 90 or more days past due and insured by U.S. government agencies were $198 million and $121 million, respectively. In addition, the Firm's policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance.The following table provides information on Firmwide nonaccrual loans to total loans.December 31,(in millions, except ratios)20252024Total nonaccrual loans$9,857 $8,837 Total loans1,493,429 1,347,988 Firmwide nonaccrual loans to total loans outstanding0.66 %0.66 %The following table provides information about the Firm's net charge-offs.December 31,(in millions, except ratios)20252024Net charge-offs$9,849 $8,638 Average retained loans1,335,675 1,271,344 Net charge-off rate0.74 %0.68 % Credit risk is the risk associated with the default or change in credit profile of a client, counterparty or customer.In the following tables, total loans include loans retained (i.e., held-for-investment); loans held-for-sale; and certain loans accounted for at fair value. The following tables do not include loans which the Firm accounts for at fair value and classifies as trading assets; refer to Notes 2 and 3 for further information regarding these loans. Refer to Notes 12, 28, and 5 for additional information on the Firm's loans, lending-related commitments and derivative receivables, including the Firm's related accounting policies. Refer to Note 10 for information regarding the credit risk inherent in the Firm's investment securities portfolio; and refer to Note 11 for information regarding credit risk inherent in the securities financing portfolio. Refer to Consumer Credit Portfolio on pages 112-117 and Note 12 for further discussions of the consumer credit environment, consumer loans and nonperforming exposure. Refer to Wholesale Credit Portfolio on pages 118-128 and Note 12 for further discussions of the wholesale credit environment, wholesale loans and nonperforming exposure.Total credit portfolioDecember 31,(in millions)Credit exposureNonperforming(d)2025202420252024Loans retained$1,408,905 $1,299,590 $8,273 $7,175 Loans held-for-sale13,840 7,048 67 160 Loans at fair value 70,684 41,350 1,517 1,502 Total loans 1,493,429 1,347,988 9,857 8,837 Derivative receivables57,777 60,967 204 145 Receivables from customers(a)47,336 51,929 - - Total credit-related assets1,598,542 1,460,884 10,061 8,982 Assets acquired in loan satisfactionsReal estate ownedNANA267 284 OtherNANA31 34 Total assets acquired in loan satisfactionsNANA298 318 Lending-related commitments1,817,307 (c)1,577,622 925 737 Total credit portfolio$3,415,849 $3,038,506 $11,284 $10,037 Credit derivatives and credit-related notes used in credit portfolio management activities(b)$(24,383)$(41,367)$ - $ - Liquid securities and other cash collateral held against derivatives(28,891)(28,160)NANA(a)Receivables from customers reflect held-for-investment margin loans to brokerage clients in CIB, CCB and AWM; these are reported within accrued interest and accounts receivable on the Consolidated balance sheets. Credit risk is the risk associated with the default or change in credit profile of a client, counterparty or customer. In the following tables, total loans include loans retained (i.e., held-for-investment); loans held-for-sale; and certain loans accounted for at fair value. The following tables do not include loans which the Firm accounts for at fair value and classifies as trading assets; refer to Notes 2 and 3 for further information regarding these loans. Refer to Notes 12, 28, and 5 for additional information on the Firm's loans, lending-related commitments and derivative receivables, including the Firm's related accounting policies. Refer to Note 10 for information regarding the credit risk inherent in the Firm's investment securities portfolio; and refer to Note 11 for information regarding credit risk inherent in the securities financing portfolio. Refer to Consumer Credit Portfolio on pages 112-117 and Note 12 for further discussions of the consumer credit environment, consumer loans and nonperforming exposure. Refer to Wholesale Credit Portfolio on pages 118-128 and Note 12 for further discussions of the wholesale credit environment, wholesale loans and nonperforming exposure. Total credit portfolioDecember 31,(in millions)Credit exposureNonperforming(d)2025202420252024Loans retained$1,408,905 $1,299,590 $8,273 $7,175 Loans held-for-sale13,840 7,048 67 160 Loans at fair value 70,684 41,350 1,517 1,502 Total loans 1,493,429 1,347,988 9,857 8,837 Derivative receivables57,777 60,967 204 145 Receivables from customers(a)47,336 51,929 - - Total credit-related assets1,598,542 1,460,884 10,061 8,982 Assets acquired in loan satisfactionsReal estate ownedNANA267 284 OtherNANA31 34 Total assets acquired in loan satisfactionsNANA298 318 Lending-related commitments1,817,307 (c)1,577,622 925 737 Total credit portfolio$3,415,849 $3,038,506 $11,284 $10,037 Credit derivatives and credit-related notes used in credit portfolio management activities(b)$(24,383)$(41,367)$ - $ - Liquid securities and other cash collateral held against derivatives(28,891)(28,160)NANA Nonperforming(d) Receivables from customers(a) --- ## Modified Risk: Report of Independent Registered Public Accounting Firm **Key changes:** - Updated: "The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.Allowance for Loan Losses - Portfolio-Based Component of the Wholesale and Credit Card Retained Loan Portfolios As described in Note 13 to the consolidated financial statements, as of December 31, 2025, the allowance for loan losses for the portfolio-based component of the wholesale and credit card retained loan portfolios was $7.6 billion and $15.6 billion, respectively, on total portfolio-based wholesale and credit card retained loans of $788.0 billion and $247.8 billion, respectively." **Prior (2025):** Critical Audit MattersThe critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that (i) relate to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.Allowance for Loan Losses - Portfolio-based component of Wholesale Loan and Credit Card Loan Portfolios As described in Note 13 to the consolidated financial statements, the allowance for loan losses for the portfolio-based component of the wholesale and credit card loan portfolios was $22.0 billion on total portfolio-based retained loans of $919.3 billion at December 31, 2024. The Firm's allowance for loan losses represents management's estimate of expected credit losses over the remaining expected life of the Firm's loan portfolios and considers expected future changes in macroeconomic conditions. The portfolio-based component of the Firm's allowance for loan losses for the wholesale and credit card retained loan portfolios begins with a quantitative calculation of expected credit losses over the expected life of the loan by applying credit loss factors to the estimated exposure at default. The credit loss factors applied are determined based on the weighted average of five internally developed macroeconomic scenarios that take into consideration the Firm's economic outlook as derived through forecast macroeconomic variables, the most significant of which are U.S. unemployment and U.S. real gross domestic product. This quantitative calculation is further adjusted to take into consideration model imprecision, emerging risk assessments, trends and other subjective factors that are not yet otherwise reflected in the credit loss estimate.The principal considerations for our determination that performing procedures relating to the allowance for loan losses for the portfolio-based component of the wholesale and credit card loan portfolios is a critical audit matter are (i) the significant judgment and estimation by management in the forecast of macroeconomic variables, specifically U.S. unemployment and U.S. real gross domestic product, as the Firm's forecasts of economic conditions significantly affect its estimate of expected credit losses at the balance sheet date, (ii) the significant judgment and estimation by management in determining the quantitative calculation utilized in their credit loss estimates and the adjustments to take into consideration model imprecision, emerging risk assessments, trends and other subjective factors that are not yet otherwise reflected in the credit loss estimate, which in turn led to a high degree of auditor judgment, subjectivity, and effort in performing procedures and in evaluating audit evidence obtained relating to the credit loss estimates and the appropriateness of the adjustments to the credit loss estimates, and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the Firm's allowance for loan losses, including controls over model validation and generation of macroeconomic scenarios. These procedures also included, among others, testing management's process for estimating the allowance for loan losses, which involved (i) evaluating the appropriateness of the models and methodologies used in quantitative calculations; (ii) evaluating the reasonableness of forecasts of U.S. unemployment and U.S. real gross domestic product; (iii) testing the completeness and accuracy of data used in the estimate; and (iv) evaluating the reasonableness of management's adjustments to the quantitative output for the impacts of model imprecision, emerging risk assessments, trends and other subjective factors that are not yet otherwise reflected in the credit loss estimate. These procedures also included the use of professionals with specialized skill and knowledge to assist in evaluating the appropriateness of certain models, methodologies and macroeconomic variables.Fair Value of Certain Level 3 Financial InstrumentsAs described in Notes 2 and 3 to the consolidated financial statements, the Firm carries $1.5 trillion of its assets and $586.2 billion of its liabilities at fair value on a recurring basis. Included in these balances are $10.9 billion of trading assets and $51.8 billion of liabilities measured at fair value on a recurring basis, collectively financial instruments, which are classified as level 3 as they contain one or more inputs to valuation which are unobservable and significant to their fair value measurement. The Firm utilized internally developed valuation models and unobservable inputs to estimate fair value of the level 3 financial instruments. The unobservable inputs used by management to estimate the fair value of certain of these financial instruments include interest rate volatility, equity volatility, Bermudan switch value and correlation relating to interest rates, interest rate-to-foreign exchange, Critical Audit MattersThe critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that (i) relate to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.Allowance for Loan Losses - Portfolio-based component of Wholesale Loan and Credit Card Loan Portfolios As described in Note 13 to the consolidated financial statements, the allowance for loan losses for the portfolio-based component of the wholesale and credit card loan portfolios was $22.0 billion on total portfolio-based retained loans of $919.3 billion at December 31, 2024. The Firm's allowance for loan losses represents management's estimate of expected credit losses over the remaining expected life of the Firm's loan portfolios and considers expected future changes in macroeconomic conditions. The portfolio-based component of the Firm's allowance for loan losses for the wholesale and credit card retained loan portfolios begins with a quantitative calculation of expected credit losses over the expected life of the loan by applying credit loss factors to the estimated exposure at default. The credit loss factors applied are determined based on the weighted average of five internally developed macroeconomic scenarios that take into consideration the Firm's economic outlook as derived through forecast macroeconomic variables, the most significant of which are U.S. unemployment and U.S. real gross domestic product. This quantitative calculation is further adjusted to take into consideration model imprecision, emerging risk assessments, trends and other subjective factors that are not yet otherwise reflected in the credit loss estimate.The principal considerations for our determination that performing procedures relating to the allowance for loan losses for the portfolio-based component of the wholesale and credit card loan portfolios is a critical audit matter are (i) the significant judgment and estimation by management in the forecast of macroeconomic variables, specifically U.S. unemployment and U.S. real gross domestic product, as the Firm's forecasts of economic conditions significantly affect its estimate of expected credit losses at the balance sheet date, (ii) the significant **Current (2026):** Critical Audit MattersThe critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that (i) relate to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.Allowance for Loan Losses - Portfolio-Based Component of the Wholesale and Credit Card Retained Loan Portfolios As described in Note 13 to the consolidated financial statements, as of December 31, 2025, the allowance for loan losses for the portfolio-based component of the wholesale and credit card retained loan portfolios was $7.6 billion and $15.6 billion, respectively, on total portfolio-based wholesale and credit card retained loans of $788.0 billion and $247.8 billion, respectively. The Firm's allowance for loan losses represents management's estimate of expected credit losses over the remaining expected life of the Firm's retained loan portfolios. The portfolio-based component begins with a quantitative calculation that covers expected credit losses over a loan's expected life. The expected credit losses are derived using a weighted average of five internally developed macroeconomic scenarios over an eight-quarter forecast period. As disclosed by management, one of the most significant judgments involved in estimating the allowance for loan losses relates to the forecasted macroeconomic variables used to estimate credit losses over the eight-quarter forecast period within management's methodology. The significant forecasted macroeconomic variables for the consumer portfolio include regional U.S. unemployment rates and U.S. HPI. The significant forecasted macroeconomic variables for the wholesale portfolio include U.S. unemployment, U.S. real GDP growth rate, U.S. equity prices, U.S. interest rates, U.S. corporate credit spreads, oil prices, U.S. commercial real estate prices and U.S. HPI.The principal considerations for our determination that performing procedures relating to the allowance for loan losses for the portfolio-based component of the wholesale and credit card retained loan portfolios is a critical audit matter are (i) the significant judgment by management when developing the allowance for loan losses related to the portfolio-based component of the wholesale and credit card retained loan portfolios; (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating management's significant assumptions related to the U.S. unemployment and the U.S. real GDP growth rate; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the allowance for loan losses related to the portfolio-based component of the wholesale and credit card retained loan portfolios, including controls over the development of the forecasted macroeconomic variables. These procedures also included, among others, (i) testing management's process for developing the allowance for loan losses related to the portfolio-based component of the wholesale and credit card retained loan portfolios (ii) testing the completeness and accuracy of certain data used in developing the forecasted macroeconomic variables and (iii) the involvement of professionals with specialized skill and knowledge to assist in evaluating (a) the appropriateness of the methodology used by management in developing the forecasted macroeconomic variables and (b) the reasonableness of the U.S. unemployment and the U.S. real GDP growth rate assumptions.Fair Value of Certain Level 3 Financial InstrumentsAs described in Note 2 to the consolidated financial statements, as of December 31, 2025, the Firm had certain financial instruments which included $2.4 billion of deposits, $5.6 billion of short-term borrowings and $46.7 billion of long-term debt, which are measured at fair value on a recurring basis and are classified as level 3. Financial instruments valued using internally developed valuation models and other valuation techniques that use significant unobservable inputs are classified within level 3 of the fair value hierarchy. The principal valuation techniques and unobservable inputs used by management to measure the fair value of certain level 3 financial instruments include the following internally developed valuation models: (i) option pricing, which uses unobservable inputs related to interest rate volatility, Bermudan switch value, interest rate correlation, interest rate-to-foreign exchange correlation, equity volatility, equity correlation, equity-to-foreign exchange correlation and equity-to-interest rate correlation and (ii) discounted cash flows, which uses unobservable inputs related to credit correlation, credit spread, recovery rate, yield and loss severity.The principal considerations for our determination that performing procedures relating to the fair value of certain level 3 financial instruments is a critical audit matter are (i) the significant judgment by management when developing the fair value estimate of certain level Critical Audit MattersThe critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that (i) relate to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.Allowance for Loan Losses - Portfolio-Based Component of the Wholesale and Credit Card Retained Loan Portfolios As described in Note 13 to the consolidated financial statements, as of December 31, 2025, the allowance for loan losses for the portfolio-based component of the wholesale and credit card retained loan portfolios was $7.6 billion and $15.6 billion, respectively, on total portfolio-based wholesale and credit card retained loans of $788.0 billion and $247.8 billion, respectively. The Firm's allowance for loan losses represents management's estimate of expected credit losses over the remaining expected life of the Firm's retained loan portfolios. The portfolio-based component begins with a quantitative calculation that covers expected credit losses over a loan's expected life. The expected credit losses are derived using a weighted average of five internally developed macroeconomic scenarios over an eight-quarter forecast period. As disclosed by management, one of the most significant judgments involved in estimating the allowance for loan losses relates to the forecasted macroeconomic variables used to estimate credit losses over the eight-quarter forecast period within management's methodology. The significant forecasted macroeconomic variables for the consumer portfolio include regional U.S. unemployment rates and U.S. HPI. The significant forecasted macroeconomic variables for the wholesale portfolio include U.S. unemployment, U.S. real GDP growth rate, U.S. equity prices, U.S. interest rates, U.S. corporate credit spreads, oil prices, U.S. commercial real estate prices and U.S. HPI.The principal considerations for our determination that performing procedures relating to the allowance for loan losses for the portfolio-based component of the wholesale and credit card retained loan portfolios is a critical audit matter are (i) the significant judgment by management when developing the allowance for loan losses related to the portfolio-based component of the wholesale and credit card retained loan portfolios; (ii) a high degree of auditor judgment, subjectivity, and --- ## Modified Risk: Contingencies **Key changes:** - Updated: "As of December 31, 2025, the Firm and its subsidiaries and affiliates are defendants or respondents in numerous evolving legal proceedings, including private proceedings, public proceedings, government investigations, regulatory enforcement matters, and the matters described below." - Updated: "Groups of merchants and retail associations filed a series of class action complaints alleging that Visa and Mastercard, as well as certain banks, conspired to set the price of credit and debit card interchange fees and enacted related rules in violation of antitrust laws.In September 2018, the parties settled the class action seeking monetary relief." - Updated: "The defendants have reached settlements with the merchants who opted out representing over 90% of the combined Mastercard-branded and Visa-branded payment card sales volume." - Removed: "The Swiss Competition Commission's investigation relating to EURIBOR, to which the Firm and one other bank remain subject, continues." - Updated: "In March 2024, the Firm filed an appeal of this decision with the Court of Justice of the European Union, which held a hearing in January 2026 and reserved judgment.In addition, the Firm was named as a defendant along with other banks in various individual and putative class actions related to benchmark rates, including U.S." **Prior (2025):** affiliates to continue to rely on the Qualified Professional Asset Manager exemption under the Employee Retirement Income Security Act ("ERISA") through the ten-year disqualification period following the antitrust plea. The only remaining FX-related governmental inquiry is a South Africa Competition Commission matter which is currently pending before the South Africa Competition Tribunal.With respect to civil litigation matters, some FX-related individual and putative class actions filed outside the U.S., including in the U.K., Israel, the Netherlands, Brazil and Australia, remain. In July 2023, the U.K. Court of Appeal overturned the Competition Appeal Tribunal's earlier denial of a request for class certification on an opt-out basis. The defendants have appealed this decision to the U.K. Supreme Court. In Israel, a settlement in principle has been reached on the putative class action, which remains subject to court approval. Interchange Litigation. Groups of merchants and retail associations filed a series of class action complaints alleging that Visa and Mastercard, as well as certain banks, conspired to set the price of credit and debit card interchange fees and enacted related rules in violation of antitrust laws.In September 2018, the parties settled the class action seeking monetary relief, with the defendants collectively contributing approximately $6.2 billion. The settlement has been approved by the United States District Court for the Eastern District of New York and affirmed on appeal. Based on the percentage of merchants that opted out of the settlement, $700 million has been returned to the defendants from the settlement escrow. A separate class action seeking injunctive relief continues, and in September 2021, the District Court granted plaintiffs' motion for class certification in part, and denied the motion in part. In June 2024, the District Court denied preliminary approval of a settlement of the injunctive class action in which Visa and Mastercard agreed to certain changes to their respective network rules and system-wide reductions in interchange rates for U.S.-based merchants. The parties are considering next steps. Of the merchants who opted out of the damages class settlement, certain merchants filed individual actions raising similar allegations against Visa and Mastercard, as well as against the Firm and other banks. While some of those actions remain pending, the defendants have reached settlements with the merchants who opted out representing over 70% of the combined Mastercard-branded and Visa-branded payment card sales volume. LIBOR and Other Benchmark Rate Investigations and Litigation. JPMorganChase has responded to inquiries from various governmental agencies and entities around the world relating primarily to the British Bankers Association's ("BBA") London Interbank Offered Rate ("LIBOR") for various currencies and the European Banking Federation's Euro Interbank Offered Rate ("EURIBOR"). The Swiss Competition Commission's investigation relating to EURIBOR, to which the Firm and one other bank remain subject, continues. The Firm appealed a December 2016 decision by the European Commission against the Firm and other banks finding an infringement of European antitrust rules relating to EURIBOR. In December 2023, the European General Court annulled the fine imposed by the European Commission, but exercised its discretion to re-impose a fine in an identical amount. In March 2024, the Firm filed an appeal of this decision with the Court of Justice of the European Union.In addition, the Firm has been named as a defendant along with other banks in various individual and putative class actions related to benchmark rates, including U.S. dollar LIBOR. In actions related to U.S. dollar LIBOR during the period that it was administered by the BBA, the United States District Court for the Southern District of New York granted class certification of antitrust claims related to bonds and interest rate swaps sold directly by the defendants, including the Firm. The Firm has obtained dismissal of certain actions and resolved certain other actions, and as to all remaining actions has moved for summary judgment. In addition, a lawsuit filed by a group of individual plaintiffs asserting antitrust claims, alleging that the Firm and other defendants were engaged in an unlawful agreement to set U.S. dollar LIBOR and conspired to monopolize the market for LIBOR-based consumer loans and credit cards was dismissed in October 2023 and affirmed on appeal by the United States Court of Appeals for the Ninth Circuit in December 2024. The Firm has resolved all non-U.S. dollar LIBOR actions.Russian Litigation. The Firm is obligated to comply with international sanctions laws, which mandate the blocking of certain assets. These laws apply when assets associated with individuals, companies, products or services are within the scope of the sanctions. The Firm has faced actual and threatened litigation in Russia seeking payments that the Firm cannot make under, and is contractually excused from paying as a result of, relevant sanctions laws. In claims involving the Firm and claims filed against other financial institutions, Russian courts have disregarded the parties' contractual agreements concerning forum selection and did not recognize foreign sanctions laws as a basis for not making payment. Russian courts have entered judgment against the Firm in a number of claims, including one for $439 million, and a judgment has been executed against assets held onshore by the Firm in Russia. The total amount of the judgments exceeds the total amount of available assets that the Firm holds in Russia. The Firm continues to appeal the Russian courts' decisions, and judgments may not be executed while on appeal. Russian courts have also ordered interim freezes of Firm assets in Russia (including, among other things, funds in bank accounts, securities, shares in authorized capital, and certain trademarks, of the named defendants) pending a determination of affiliates to continue to rely on the Qualified Professional Asset Manager exemption under the Employee Retirement Income Security Act ("ERISA") through the ten-year disqualification period following the antitrust plea. The only remaining FX-related governmental inquiry is a South Africa Competition Commission matter which is currently pending before the South Africa Competition Tribunal.With respect to civil litigation matters, some FX-related individual and putative class actions filed outside the U.S., including in the U.K., Israel, the Netherlands, Brazil and Australia, remain. In July 2023, the U.K. Court of Appeal overturned the Competition Appeal Tribunal's earlier denial of a request for class certification on an opt-out basis. The defendants have appealed this decision to the U.K. Supreme Court. In Israel, a settlement in principle has been reached on the putative class action, which remains subject to court approval. Interchange Litigation. Groups of merchants and retail associations filed a series of class action complaints alleging that Visa and Mastercard, as well as certain banks, conspired to set the price of credit and debit card interchange fees and enacted related rules in violation of antitrust laws.In September 2018, the parties settled the class action seeking monetary relief, with the defendants collectively contributing approximately $6.2 billion. The settlement has been approved by the United States District Court for the Eastern District of New York and affirmed on appeal. Based on the percentage of merchants that opted out of the settlement, $700 million has been returned to the defendants from the settlement escrow. A separate class action seeking injunctive relief continues, and in September 2021, the District Court granted plaintiffs' motion for class certification in part, and denied the motion in part. In June 2024, the District Court denied preliminary approval of a settlement of the injunctive class action in which Visa and Mastercard agreed to certain changes to their respective network rules and system-wide reductions in interchange rates for U.S.-based merchants. The parties are considering next steps. Of the merchants who opted out of the damages class settlement, certain merchants filed individual actions raising similar allegations against Visa and Mastercard, as well as against the Firm and other banks. While some of those actions remain pending, the defendants have reached settlements with the merchants who opted out representing over 70% of the combined Mastercard-branded and Visa-branded payment card sales volume. LIBOR and Other Benchmark Rate Investigations and Litigation. JPMorganChase has responded to inquiries from various governmental agencies and entities around the world relating primarily to the British Bankers Association's ("BBA") London Interbank Offered Rate ("LIBOR") for various currencies and the European Banking Federation's Euro Interbank Offered affiliates to continue to rely on the Qualified Professional Asset Manager exemption under the Employee Retirement Income Security Act ("ERISA") through the ten-year disqualification period following the antitrust plea. The only remaining FX-related governmental inquiry is a South Africa Competition Commission matter which is currently pending before the South Africa Competition Tribunal. With respect to civil litigation matters, some FX-related individual and putative class actions filed outside the U.S., including in the U.K., Israel, the Netherlands, Brazil and Australia, remain. In July 2023, the U.K. Court of Appeal overturned the Competition Appeal Tribunal's earlier denial of a request for class certification on an opt-out basis. The defendants have appealed this decision to the U.K. Supreme Court. In Israel, a settlement in principle has been reached on the putative class action, which remains subject to court approval. Interchange Litigation. Groups of merchants and retail associations filed a series of class action complaints alleging that Visa and Mastercard, as well as certain banks, conspired to set the price of credit and debit card interchange fees and enacted related rules in violation of antitrust laws. In September 2018, the parties settled the class action seeking monetary relief, with the defendants collectively contributing approximately $6.2 billion. The settlement has been approved by the United States District Court for the Eastern District of New York and affirmed on appeal. Based on the percentage of merchants that opted out of the settlement, $700 million has been returned to the defendants from the settlement escrow. A separate class action seeking injunctive relief continues, and in September 2021, the District Court granted plaintiffs' motion for class certification in part, and denied the motion in part. In June 2024, the District Court denied preliminary approval of a settlement of the injunctive class action in which Visa and Mastercard agreed to certain changes to their respective network rules and system-wide reductions in interchange rates for U.S.-based merchants. The parties are considering next steps. Of the merchants who opted out of the damages class settlement, certain merchants filed individual actions raising similar allegations against Visa and Mastercard, as well as against the Firm and other banks. While some of those actions remain pending, the defendants have reached settlements with the merchants who opted out representing over 70% of the combined Mastercard-branded and Visa-branded payment card sales volume. LIBOR and Other Benchmark Rate Investigations and Litigation. JPMorganChase has responded to inquiries from various governmental agencies and entities around the world relating primarily to the British Bankers Association's ("BBA") London Interbank Offered Rate ("LIBOR") for various currencies and the European Banking Federation's Euro Interbank Offered Rate ("EURIBOR"). The Swiss Competition Commission's investigation relating to EURIBOR, to which the Firm and one other bank remain subject, continues. The Firm appealed a December 2016 decision by the European Commission against the Firm and other banks finding an infringement of European antitrust rules relating to EURIBOR. In December 2023, the European General Court annulled the fine imposed by the European Commission, but exercised its discretion to re-impose a fine in an identical amount. In March 2024, the Firm filed an appeal of this decision with the Court of Justice of the European Union.In addition, the Firm has been named as a defendant along with other banks in various individual and putative class actions related to benchmark rates, including U.S. dollar LIBOR. In actions related to U.S. dollar LIBOR during the period that it was administered by the BBA, the United States District Court for the Southern District of New York granted class certification of antitrust claims related to bonds and interest rate swaps sold directly by the defendants, including the Firm. The Firm has obtained dismissal of certain actions and resolved certain other actions, and as to all remaining actions has moved for summary judgment. In addition, a lawsuit filed by a group of individual plaintiffs asserting antitrust claims, alleging that the Firm and other defendants were engaged in an unlawful agreement to set U.S. dollar LIBOR and conspired to monopolize the market for LIBOR-based consumer loans and credit cards was dismissed in October 2023 and affirmed on appeal by the United States Court of Appeals for the Ninth Circuit in December 2024. The Firm has resolved all non-U.S. dollar LIBOR actions.Russian Litigation. The Firm is obligated to comply with international sanctions laws, which mandate the blocking of certain assets. These laws apply when assets associated with individuals, companies, products or services are within the scope of the sanctions. The Firm has faced actual and threatened litigation in Russia seeking payments that the Firm cannot make under, and is contractually excused from paying as a result of, relevant sanctions laws. In claims involving the Firm and claims filed against other financial institutions, Russian courts have disregarded the parties' contractual agreements concerning forum selection and did not recognize foreign sanctions laws as a basis for not making payment. Russian courts have entered judgment against the Firm in a number of claims, including one for $439 million, and a judgment has been executed against assets held onshore by the Firm in Russia. The total amount of the judgments exceeds the total amount of available assets that the Firm holds in Russia. The Firm continues to appeal the Russian courts' decisions, and judgments may not be executed while on appeal. Russian courts have also ordered interim freezes of Firm assets in Russia (including, among other things, funds in bank accounts, securities, shares in authorized capital, and certain trademarks, of the named defendants) pending a determination of Rate ("EURIBOR"). The Swiss Competition Commission's investigation relating to EURIBOR, to which the Firm and one other bank remain subject, continues. The Firm appealed a December 2016 decision by the European Commission against the Firm and other banks finding an infringement of European antitrust rules relating to EURIBOR. In December 2023, the European General Court annulled the fine imposed by the European Commission, but exercised its discretion to re-impose a fine in an identical amount. In March 2024, the Firm filed an appeal of this decision with the Court of Justice of the European Union. In addition, the Firm has been named as a defendant along with other banks in various individual and putative class actions related to benchmark rates, including U.S. dollar LIBOR. In actions related to U.S. dollar LIBOR during the period that it was administered by the BBA, the United States District Court for the Southern District of New York granted class certification of antitrust claims related to bonds and interest rate swaps sold directly by the defendants, including the Firm. The Firm has obtained dismissal of certain actions and resolved certain other actions, and as to all remaining actions has moved for summary judgment. In addition, a lawsuit filed by a group of individual plaintiffs asserting antitrust claims, alleging that the Firm and other defendants were engaged in an unlawful agreement to set U.S. dollar LIBOR and conspired to monopolize the market for LIBOR-based consumer loans and credit cards was dismissed in October 2023 and affirmed on appeal by the United States Court of Appeals for the Ninth Circuit in December 2024. The Firm has resolved all non-U.S. dollar LIBOR actions. Russian Litigation. The Firm is obligated to comply with international sanctions laws, which mandate the blocking of certain assets. These laws apply when assets associated with individuals, companies, products or services are within the scope of the sanctions. The Firm has faced actual and threatened litigation in Russia seeking payments that the Firm cannot make under, and is contractually excused from paying as a result of, relevant sanctions laws. In claims involving the Firm and claims filed against other financial institutions, Russian courts have disregarded the parties' contractual agreements concerning forum selection and did not recognize foreign sanctions laws as a basis for not making payment. Russian courts have entered judgment against the Firm in a number of claims, including one for $439 million, and a judgment has been executed against assets held onshore by the Firm in Russia. The total amount of the judgments exceeds the total amount of available assets that the Firm holds in Russia. The Firm continues to appeal the Russian courts' decisions, and judgments may not be executed while on appeal. Russian courts have also ordered interim freezes of Firm assets in Russia (including, among other things, funds in bank accounts, securities, shares in authorized capital, and certain trademarks, of the named defendants) pending a determination of 310JPMorgan Chase & Co./2024 Form 10-K 310JPMorgan Chase & Co./2024 Form 10-K 310JPMorgan Chase & Co./2024 Form 10-K 310 JPMorgan Chase & Co./2024 Form 10-K certain underlying claims against the Firm. The Firm has challenged claims being pursued in the Russian courts and related freeze orders in other jurisdictions provided for by the parties' contractual forum selections. If further claims are enforced despite the actions taken by the Firm to challenge the claims and orders and to seek the proper application of law, the Firm's assets in Russia could be seized in full, and certain client assets could also be seized, or the Firm could be prevented from complying with its obligations.SEC Inquiries. In October 2024, the Firm entered into settlements with the SEC to resolve inquiries related to, among other things, conflict disclosures concerning the selection of portfolio managers and the timing of the Firm's liquidation of shares distributed in-kind to certain investment vehicles that invest in third-party managed private funds and certain other matters. The resolutions required the Firm to pay a combined $151 million in civil penalties and voluntary payments to customers. The Firm continues to cooperate in connection with SEC inquiries concerning the aggregation of accounts for fee billing and various other matters.Shareholder Litigation. Several shareholder putative class actions, as well as shareholder derivative actions purporting to act on behalf of the Firm, have been filed against the Firm, its Board of Directors and certain of its current and former officers. Certain of these shareholder suits relate to historical trading practices by former employees in the precious metals and U.S. treasuries markets and related conduct which were the subject of the Firm's resolutions with the DOJ, CFTC and SEC in September 2020, and fiduciary activities that were separately the subject of a resolution between JPMorgan Chase Bank, N.A. and the OCC in November 2020. One of these shareholder derivative suits was filed in the Supreme Court of the State of New York in May 2022, asserting breach of fiduciary duty and unjust enrichment claims relating to the historical trading practices and related conduct and fiduciary activities which were the subject of the resolutions described above. In December 2022, the court granted defendants' motion to dismiss this action in full, and in July 2023, the plaintiff filed an appeal, which remains pending. A second shareholder derivative action relating to the historical trading practices and related conduct was filed in the United States District Court for the Eastern District of New York in December 2022. Defendants have moved to dismiss the complaint.Zelle Network Litigation. In December 2024, the Consumer Financial Protection Bureau ("CFPB") filed a complaint against Early Warning Services, LLC ("EWS"), Bank of America, N.A., Wells Fargo Bank, N.A. and JPMorgan Chase Bank, N.A. in the United States District Court for the District of Arizona. The CFPB alleges that EWS and the defendant banks have failed to take sufficient efforts to prevent fraud on the Zelle network. The defendants will file a response to the complaint.* * *In addition to the various legal proceedings discussed above, JPMorganChase and its subsidiaries are named as defendants or are otherwise involved in a substantial number of other legal proceedings. The Firm believes it has meritorious defenses to the claims asserted against it in its currently outstanding legal proceedings and it intends to defend itself vigorously. Additional legal proceedings may be initiated from time to time in the future.The Firm has established reserves for several hundred of its currently outstanding legal proceedings. In accordance with the provisions of U.S. GAAP for contingencies, the Firm accrues for a litigation-related liability when it is probable that such a liability has been incurred and the amount of the loss can be reasonably estimated. The Firm evaluates its outstanding legal proceedings each quarter to assess its litigation reserves, and makes adjustments in such reserves, upward or downward, as appropriate, based on management's best judgment after consultation with counsel. The Firm's legal expense was $740 million, $1.4 billion and $266 million for the years ended December 31, 2024, 2023 and 2022, respectively. There is no assurance that the Firm's litigation reserves will not need to be adjusted in the future. In view of the inherent difficulty of predicting the outcome of legal proceedings, particularly where the claimants seek very large or indeterminate damages, or where the matters present novel legal theories, involve a large number of parties or are in early stages of discovery, the Firm cannot state with confidence what will be the eventual outcomes of the currently pending matters, the timing of their ultimate resolution or the eventual losses, fines, penalties or consequences related to those matters. JPMorganChase believes, based upon its current knowledge and after consultation with counsel, consideration of the material legal proceedings described above and after taking into account its current litigation reserves and its estimated aggregate range of possible losses, that the other legal proceedings currently pending against it should not have a material adverse effect on the Firm's consolidated financial condition. The Firm notes, however, that in light of the uncertainties involved in such proceedings, there is no assurance that the ultimate resolution of these matters will not significantly exceed the reserves it has currently accrued or that a matter will not have material reputational consequences. As a result, the outcome of a particular matter may be material to JPMorganChase's operating results for a particular period, depending on, among other factors, the size of the loss or liability imposed and the level of JPMorganChase's income for that period. certain underlying claims against the Firm. The Firm has challenged claims being pursued in the Russian courts and related freeze orders in other jurisdictions provided for by the parties' contractual forum selections. If further claims are enforced despite the actions taken by the Firm to challenge the claims and orders and to seek the proper application of law, the Firm's assets in Russia could be seized in full, and certain client assets could also be seized, or the Firm could be prevented from complying with its obligations.SEC Inquiries. In October 2024, the Firm entered into settlements with the SEC to resolve inquiries related to, among other things, conflict disclosures concerning the selection of portfolio managers and the timing of the Firm's liquidation of shares distributed in-kind to certain investment vehicles that invest in third-party managed private funds and certain other matters. The resolutions required the Firm to pay a combined $151 million in civil penalties and voluntary payments to customers. The Firm continues to cooperate in connection with SEC inquiries concerning the aggregation of accounts for fee billing and various other matters.Shareholder Litigation. Several shareholder putative class actions, as well as shareholder derivative actions purporting to act on behalf of the Firm, have been filed against the Firm, its Board of Directors and certain of its current and former officers. Certain of these shareholder suits relate to historical trading practices by former employees in the precious metals and U.S. treasuries markets and related conduct which were the subject of the Firm's resolutions with the DOJ, CFTC and SEC in September 2020, and fiduciary activities that were separately the subject of a resolution between JPMorgan Chase Bank, N.A. and the OCC in November 2020. One of these shareholder derivative suits was filed in the Supreme Court of the State of New York in May 2022, asserting breach of fiduciary duty and unjust enrichment claims relating to the historical trading practices and related conduct and fiduciary activities which were the subject of the resolutions described above. In December 2022, the court granted defendants' motion to dismiss this action in full, and in July 2023, the plaintiff filed an appeal, which remains pending. A second shareholder derivative action relating to the historical trading practices and related conduct was filed in the United States District Court for the Eastern District of New York in December 2022. Defendants have moved to dismiss the complaint.Zelle Network Litigation. In December 2024, the Consumer Financial Protection Bureau ("CFPB") filed a complaint against Early Warning Services, LLC ("EWS"), Bank of America, N.A., Wells Fargo Bank, N.A. and JPMorgan Chase Bank, N.A. in the United States District Court for the District of Arizona. The CFPB alleges that EWS and the defendant banks have failed to take sufficient efforts to prevent fraud on the Zelle network. The defendants will file a response to the complaint. certain underlying claims against the Firm. The Firm has challenged claims being pursued in the Russian courts and related freeze orders in other jurisdictions provided for by the parties' contractual forum selections. If further claims are enforced despite the actions taken by the Firm to challenge the claims and orders and to seek the proper application of law, the Firm's assets in Russia could be seized in full, and certain client assets could also be seized, or the Firm could be prevented from complying with its obligations. SEC Inquiries. In October 2024, the Firm entered into settlements with the SEC to resolve inquiries related to, among other things, conflict disclosures concerning the selection of portfolio managers and the timing of the Firm's liquidation of shares distributed in-kind to certain investment vehicles that invest in third-party managed private funds and certain other matters. The resolutions required the Firm to pay a combined $151 million in civil penalties and voluntary payments to customers. The Firm continues to cooperate in connection with SEC inquiries concerning the aggregation of accounts for fee billing and various other matters. Shareholder Litigation. Several shareholder putative class actions, as well as shareholder derivative actions purporting to act on behalf of the Firm, have been filed against the Firm, its Board of Directors and certain of its current and former officers. Certain of these shareholder suits relate to historical trading practices by former employees in the precious metals and U.S. treasuries markets and related conduct which were the subject of the Firm's resolutions with the DOJ, CFTC and SEC in September 2020, and fiduciary activities that were separately the subject of a resolution between JPMorgan Chase Bank, N.A. and the OCC in November 2020. One of these shareholder derivative suits was filed in the Supreme Court of the State of New York in May 2022, asserting breach of fiduciary duty and unjust enrichment claims relating to the historical trading practices and related conduct and fiduciary activities which were the subject of the resolutions described above. In December 2022, the court granted defendants' motion to dismiss this action in full, and in July 2023, the plaintiff filed an appeal, which remains pending. A second shareholder derivative action relating to the historical trading practices and related conduct was filed in the United States District Court for the Eastern District of New York in December 2022. Defendants have moved to dismiss the complaint. Zelle Network Litigation. In December 2024, the Consumer Financial Protection Bureau ("CFPB") filed a complaint against Early Warning Services, LLC ("EWS"), Bank of America, N.A., Wells Fargo Bank, N.A. and JPMorgan Chase Bank, N.A. in the United States District Court for the District of Arizona. The CFPB alleges that EWS and the defendant banks have failed to take sufficient efforts to prevent fraud on the Zelle network. The defendants will file a response to the complaint. * * *In addition to the various legal proceedings discussed above, JPMorganChase and its subsidiaries are named as defendants or are otherwise involved in a substantial number of other legal proceedings. The Firm believes it has meritorious defenses to the claims asserted against it in its currently outstanding legal proceedings and it intends to defend itself vigorously. Additional legal proceedings may be initiated from time to time in the future.The Firm has established reserves for several hundred of its currently outstanding legal proceedings. In accordance with the provisions of U.S. GAAP for contingencies, the Firm accrues for a litigation-related liability when it is probable that such a liability has been incurred and the amount of the loss can be reasonably estimated. The Firm evaluates its outstanding legal proceedings each quarter to assess its litigation reserves, and makes adjustments in such reserves, upward or downward, as appropriate, based on management's best judgment after consultation with counsel. The Firm's legal expense was $740 million, $1.4 billion and $266 million for the years ended December 31, 2024, 2023 and 2022, respectively. There is no assurance that the Firm's litigation reserves will not need to be adjusted in the future. In view of the inherent difficulty of predicting the outcome of legal proceedings, particularly where the claimants seek very large or indeterminate damages, or where the matters present novel legal theories, involve a large number of parties or are in early stages of discovery, the Firm cannot state with confidence what will be the eventual outcomes of the currently pending matters, the timing of their ultimate resolution or the eventual losses, fines, penalties or consequences related to those matters. JPMorganChase believes, based upon its current knowledge and after consultation with counsel, consideration of the material legal proceedings described above and after taking into account its current litigation reserves and its estimated aggregate range of possible losses, that the other legal proceedings currently pending against it should not have a material adverse effect on the Firm's consolidated financial condition. The Firm notes, however, that in light of the uncertainties involved in such proceedings, there is no assurance that the ultimate resolution of these matters will not significantly exceed the reserves it has currently accrued or that a matter will not have material reputational consequences. As a result, the outcome of a particular matter may be material to JPMorganChase's operating results for a particular period, depending on, among other factors, the size of the loss or liability imposed and the level of JPMorganChase's income for that period. * * * In addition to the various legal proceedings discussed above, JPMorganChase and its subsidiaries are named as defendants or are otherwise involved in a substantial number of other legal proceedings. The Firm believes it has meritorious defenses to the claims asserted against it in its currently outstanding legal proceedings and it intends to defend itself vigorously. Additional legal proceedings may be initiated from time to time in the future. The Firm has established reserves for several hundred of its currently outstanding legal proceedings. In accordance with the provisions of U.S. GAAP for contingencies, the Firm accrues for a litigation-related liability when it is probable that such a liability has been incurred and the amount of the loss can be reasonably estimated. The Firm evaluates its outstanding legal proceedings each quarter to assess its litigation reserves, and makes adjustments in such reserves, upward or downward, as appropriate, based on management's best judgment after consultation with counsel. The Firm's legal expense was $740 million, $1.4 billion and $266 million for the years ended December 31, 2024, 2023 and 2022, respectively. There is no assurance that the Firm's litigation reserves will not need to be adjusted in the future. In view of the inherent difficulty of predicting the outcome of legal proceedings, particularly where the claimants seek very large or indeterminate damages, or where the matters present novel legal theories, involve a large number of parties or are in early stages of discovery, the Firm cannot state with confidence what will be the eventual outcomes of the currently pending matters, the timing of their ultimate resolution or the eventual losses, fines, penalties or consequences related to those matters. JPMorganChase believes, based upon its current knowledge and after consultation with counsel, consideration of the material legal proceedings described above and after taking into account its current litigation reserves and its estimated aggregate range of possible losses, that the other legal proceedings currently pending against it should not have a material adverse effect on the Firm's consolidated financial condition. The Firm notes, however, that in light of the uncertainties involved in such proceedings, there is no assurance that the ultimate resolution of these matters will not significantly exceed the reserves it has currently accrued or that a matter will not have material reputational consequences. As a result, the outcome of a particular matter may be material to JPMorganChase's operating results for a particular period, depending on, among other factors, the size of the loss or liability imposed and the level of JPMorganChase's income for that period. JPMorgan Chase & Co./2024 Form 10-K311 JPMorgan Chase & Co./2024 Form 10-K311 JPMorgan Chase & Co./2024 Form 10-K311 JPMorgan Chase & Co./2024 Form 10-K 311 **Current (2026):** As of December 31, 2025, the Firm and its subsidiaries and affiliates are defendants or respondents in numerous evolving legal proceedings, including private proceedings, public proceedings, government investigations, regulatory enforcement matters, and the matters described below. These range from individual actions involving a single plaintiff to class action lawsuits with potentially millions of class members. Investigations and regulatory enforcement matters involve both formal and informal proceedings, by both governmental agencies and self-regulatory organizations. These legal proceedings are at varying stages of adjudication, arbitration or investigation, and involve each of the Firm's lines of business in several geographies and varied claims (including common law tort and contract claims and statutory antitrust, securities and consumer protection claims), some of which present novel legal theories.The Firm estimates the aggregate range of reasonably possible losses, in excess of reserves established, for its legal proceedings is from $0 to approximately $1.2 billion at December 31, 2025. This estimated aggregate range of reasonably possible losses was based upon information available as of that date for those proceedings in which the Firm believes that an estimate of reasonably possible loss can be made. For certain matters, the Firm does not believe that such an estimate can be made, as of that date. The Firm's estimate of the aggregate range of reasonably possible losses involves significant judgment, given:•the number, variety and varying stages of the proceedings, including the fact that many are in preliminary stages, •the existence in many such proceedings of multiple defendants, including the Firm, whose share of liability (if any) has yet to be determined, •the numerous yet-unresolved issues in many of the proceedings, including issues regarding class certification and the scope of many of the claims, and •the uncertainty of the various potential outcomes of such proceedings, including where the Firm has made assumptions concerning future rulings by the court or other adjudicator, or about the behavior or incentives of adverse parties or regulatory authorities, and those assumptions later prove to be incorrect.In addition, the outcome of a particular proceeding may be a result that the Firm did not take into account in its estimate because the Firm had deemed the likelihood of that outcome to be remote. Accordingly, the Firm's estimate of the aggregate range of reasonably possible losses will change from time to time, and actual losses may vary significantly.Set forth below are descriptions of the Firm's material legal proceedings.Amrapali. India's Enforcement Directorate ("ED") is investigating J.P. Morgan India Private Limited in connection with investments made in 2010 and 2012 by two offshore funds formerly managed by JPMorganChase entities into residential housing projects developed by the Amrapali Group ("Amrapali") relating to delays in delivering or failure to deliver residential units. In July 2019, the Supreme Court of India issued an order making preliminary findings that Amrapali and other parties, including unspecified JPMorganChase entities, violated certain criminal currency control and money laundering provisions, and ordered the ED to conduct a further inquiry. The Firm is cooperating with the inquiry. In addition, in August 2021, the ED issued an order fining J.P. Morgan India Private Limited approximately $31.5 million, which the Firm is appealing.Fair Access to Banking. In August 2025, the President of the United States issued an Executive Order entitled "Guaranteeing Fair Banking for All Americans" that addressed access to financial services and directed several actions by certain federal agencies, including a review and revision of their internal policies and manuals. JPMorganChase is responding to requests from government authorities and other external parties regarding, among other things, the Firm's policies and processes and the provision of services to customers and potential customers. Certain of these matters are at various stages, including reviews, investigations, and legal proceedings, including a civil lawsuit filed in January 2026 in Florida state court by President Donald J. Trump, in his personal capacity, and several affiliated corporate entities, against JPMorgan Chase Bank, N.A. and its CEO. Foreign Exchange Investigations and Litigation. The Firm previously reported settlements with certain government authorities relating to its foreign exchange ("FX") sales and trading activities and controls related to those activities. Among those resolutions, in May 2015, the Firm pleaded guilty to a single violation of federal antitrust law. The Department of Labor ("DOL") granted the Firm exemptions that permit the Firm and its affiliates to continue to rely on the Qualified Professional Asset Manager exemption under the Employee Retirement Income Security Act ("ERISA") through the ten-year disqualification period, which began in January 2017. The only remaining FX-related governmental inquiry is a South Africa Competition Commission matter which As of December 31, 2025, the Firm and its subsidiaries and affiliates are defendants or respondents in numerous evolving legal proceedings, including private proceedings, public proceedings, government investigations, regulatory enforcement matters, and the matters described below. These range from individual actions involving a single plaintiff to class action lawsuits with potentially millions of class members. Investigations and regulatory enforcement matters involve both formal and informal proceedings, by both governmental agencies and self-regulatory organizations. These legal proceedings are at varying stages of adjudication, arbitration or investigation, and involve each of the Firm's lines of business in several geographies and varied claims (including common law tort and contract claims and statutory antitrust, securities and consumer protection claims), some of which present novel legal theories.The Firm estimates the aggregate range of reasonably possible losses, in excess of reserves established, for its legal proceedings is from $0 to approximately $1.2 billion at December 31, 2025. This estimated aggregate range of reasonably possible losses was based upon information available as of that date for those proceedings in which the Firm believes that an estimate of reasonably possible loss can be made. For certain matters, the Firm does not believe that such an estimate can be made, as of that date. The Firm's estimate of the aggregate range of reasonably possible losses involves significant judgment, given:•the number, variety and varying stages of the proceedings, including the fact that many are in preliminary stages, •the existence in many such proceedings of multiple defendants, including the Firm, whose share of liability (if any) has yet to be determined, •the numerous yet-unresolved issues in many of the proceedings, including issues regarding class certification and the scope of many of the claims, and •the uncertainty of the various potential outcomes of such proceedings, including where the Firm has made assumptions concerning future rulings by the court or other adjudicator, or about the behavior or incentives of adverse parties or regulatory authorities, and those assumptions later prove to be incorrect.In addition, the outcome of a particular proceeding may be a result that the Firm did not take into account in its estimate because the Firm had deemed the likelihood of that outcome to be remote. Accordingly, the Firm's estimate of the aggregate range of As of December 31, 2025, the Firm and its subsidiaries and affiliates are defendants or respondents in numerous evolving legal proceedings, including private proceedings, public proceedings, government investigations, regulatory enforcement matters, and the matters described below. These range from individual actions involving a single plaintiff to class action lawsuits with potentially millions of class members. Investigations and regulatory enforcement matters involve both formal and informal proceedings, by both governmental agencies and self-regulatory organizations. These legal proceedings are at varying stages of adjudication, arbitration or investigation, and involve each of the Firm's lines of business in several geographies and varied claims (including common law tort and contract claims and statutory antitrust, securities and consumer protection claims), some of which present novel legal theories. The Firm estimates the aggregate range of reasonably possible losses, in excess of reserves established, for its legal proceedings is from $0 to approximately $1.2 billion at December 31, 2025. This estimated aggregate range of reasonably possible losses was based upon information available as of that date for those proceedings in which the Firm believes that an estimate of reasonably possible loss can be made. For certain matters, the Firm does not believe that such an estimate can be made, as of that date. The Firm's estimate of the aggregate range of reasonably possible losses involves significant judgment, given: •the number, variety and varying stages of the proceedings, including the fact that many are in preliminary stages, •the existence in many such proceedings of multiple defendants, including the Firm, whose share of liability (if any) has yet to be determined, •the numerous yet-unresolved issues in many of the proceedings, including issues regarding class certification and the scope of many of the claims, and •the uncertainty of the various potential outcomes of such proceedings, including where the Firm has made assumptions concerning future rulings by the court or other adjudicator, or about the behavior or incentives of adverse parties or regulatory authorities, and those assumptions later prove to be incorrect. In addition, the outcome of a particular proceeding may be a result that the Firm did not take into account in its estimate because the Firm had deemed the likelihood of that outcome to be remote. Accordingly, the Firm's estimate of the aggregate range of reasonably possible losses will change from time to time, and actual losses may vary significantly.Set forth below are descriptions of the Firm's material legal proceedings.Amrapali. India's Enforcement Directorate ("ED") is investigating J.P. Morgan India Private Limited in connection with investments made in 2010 and 2012 by two offshore funds formerly managed by JPMorganChase entities into residential housing projects developed by the Amrapali Group ("Amrapali") relating to delays in delivering or failure to deliver residential units. In July 2019, the Supreme Court of India issued an order making preliminary findings that Amrapali and other parties, including unspecified JPMorganChase entities, violated certain criminal currency control and money laundering provisions, and ordered the ED to conduct a further inquiry. The Firm is cooperating with the inquiry. In addition, in August 2021, the ED issued an order fining J.P. Morgan India Private Limited approximately $31.5 million, which the Firm is appealing.Fair Access to Banking. In August 2025, the President of the United States issued an Executive Order entitled "Guaranteeing Fair Banking for All Americans" that addressed access to financial services and directed several actions by certain federal agencies, including a review and revision of their internal policies and manuals. JPMorganChase is responding to requests from government authorities and other external parties regarding, among other things, the Firm's policies and processes and the provision of services to customers and potential customers. Certain of these matters are at various stages, including reviews, investigations, and legal proceedings, including a civil lawsuit filed in January 2026 in Florida state court by President Donald J. Trump, in his personal capacity, and several affiliated corporate entities, against JPMorgan Chase Bank, N.A. and its CEO. Foreign Exchange Investigations and Litigation. The Firm previously reported settlements with certain government authorities relating to its foreign exchange ("FX") sales and trading activities and controls related to those activities. Among those resolutions, in May 2015, the Firm pleaded guilty to a single violation of federal antitrust law. The Department of Labor ("DOL") granted the Firm exemptions that permit the Firm and its affiliates to continue to rely on the Qualified Professional Asset Manager exemption under the Employee Retirement Income Security Act ("ERISA") through the ten-year disqualification period, which began in January 2017. The only remaining FX-related governmental inquiry is a South Africa Competition Commission matter which reasonably possible losses will change from time to time, and actual losses may vary significantly. Set forth below are descriptions of the Firm's material legal proceedings. Amrapali. India's Enforcement Directorate ("ED") is investigating J.P. Morgan India Private Limited in connection with investments made in 2010 and 2012 by two offshore funds formerly managed by JPMorganChase entities into residential housing projects developed by the Amrapali Group ("Amrapali") relating to delays in delivering or failure to deliver residential units. In July 2019, the Supreme Court of India issued an order making preliminary findings that Amrapali and other parties, including unspecified JPMorganChase entities, violated certain criminal currency control and money laundering provisions, and ordered the ED to conduct a further inquiry. The Firm is cooperating with the inquiry. In addition, in August 2021, the ED issued an order fining J.P. Morgan India Private Limited approximately $31.5 million, which the Firm is appealing. Fair Access to Banking. In August 2025, the President of the United States issued an Executive Order entitled "Guaranteeing Fair Banking for All Americans" that addressed access to financial services and directed several actions by certain federal agencies, including a review and revision of their internal policies and manuals. JPMorganChase is responding to requests from government authorities and other external parties regarding, among other things, the Firm's policies and processes and the provision of services to customers and potential customers. Certain of these matters are at various stages, including reviews, investigations, and legal proceedings, including a civil lawsuit filed in January 2026 in Florida state court by President Donald J. Trump, in his personal capacity, and several affiliated corporate entities, against JPMorgan Chase Bank, N.A. and its CEO. Foreign Exchange Investigations and Litigation. The Firm previously reported settlements with certain government authorities relating to its foreign exchange ("FX") sales and trading activities and controls related to those activities. Among those resolutions, in May 2015, the Firm pleaded guilty to a single violation of federal antitrust law. The Department of Labor ("DOL") granted the Firm exemptions that permit the Firm and its affiliates to continue to rely on the Qualified Professional Asset Manager exemption under the Employee Retirement Income Security Act ("ERISA") through the ten-year disqualification period, which began in January 2017. The only remaining FX-related governmental inquiry is a South Africa Competition Commission matter which 302JPMorgan Chase & Co./2025 Form 10-K 302JPMorgan Chase & Co./2025 Form 10-K 302JPMorgan Chase & Co./2025 Form 10-K 302 JPMorgan Chase & Co./2025 Form 10-K is currently pending before the South Africa Competition Tribunal.With respect to civil litigation matters, some FX-related individual and putative class actions filed outside the U.S., including in the U.K., Israel, the Netherlands and Brazil remain. In December 2025, the U.K. Supreme Court confirmed the initial decision of the Competition Appeal Tribunal, which denied a request for class certification on an opt-out basis. In Israel, a settlement in principle has been reached on the putative class action, which remains subject to court approval. Interchange Litigation. Groups of merchants and retail associations filed a series of class action complaints alleging that Visa and Mastercard, as well as certain banks, conspired to set the price of credit and debit card interchange fees and enacted related rules in violation of antitrust laws.In September 2018, the parties settled the class action seeking monetary relief. A separate class action seeking injunctive relief continues. In June 2024, the District Court for the Eastern District of New York denied preliminary approval of a settlement of the injunctive class action in which Visa and Mastercard agreed to certain changes to their respective network rules and system-wide reductions in interchange rates for U.S.-based merchants. In November 2025, the parties to that settlement reached a superseding and amended class settlement and submitted the agreement to the District Court for its approval. Of the merchants who opted out of the damages class settlement, certain merchants filed individual actions raising similar allegations against Visa and Mastercard, as well as against the Firm and other banks. The defendants have reached settlements with the merchants who opted out representing over 90% of the combined Mastercard-branded and Visa-branded payment card sales volume. The remaining opt out actions are pending. A number of these actions are pending in the United States District Court for the Southern District of New York, and that court has scheduled a trial of the claims brought by several merchants to begin in April 2026. LIBOR and Other Benchmark Rate Investigations and Litigation. JPMorganChase has responded to inquiries from various governmental agencies and entities around the world relating primarily to the British Bankers Association's ("BBA") London Interbank Offered Rate ("LIBOR") for various currencies and the European Banking Federation's Euro Interbank Offered Rate ("EURIBOR"). The Firm appealed a December 2016 decision by the European Commission against the Firm and other banks finding an infringement of European antitrust rules relating to EURIBOR. In December 2023, the European General Court annulled the fine imposed by the European Commission, but exercised its discretion to re-impose a fine in an identical amount. In March 2024, the Firm filed an appeal of this decision with the Court of Justice of the European Union, which held a hearing in January 2026 and reserved judgment.In addition, the Firm was named as a defendant along with other banks in various individual and putative class actions related to benchmark rates, including U.S. dollar LIBOR. In September 2025, the United States District Court for the Southern District of New York granted summary judgment in favor of the defendants on all remaining claims related to U.S. dollar LIBOR, decertified the class, and dismissed all claims in their entirety with prejudice to refiling. Plaintiffs have filed an appeal.Russian Litigation. The Firm is obligated to comply with international sanctions laws, which mandate the blocking of certain assets. These laws apply when assets associated with individuals, companies, products or services are within the scope of the sanctions. The Firm has faced actual and threatened litigation in Russia seeking payments that the Firm cannot make under, and is contractually excused from paying as a result of, relevant sanctions laws. In claims involving the Firm and claims filed against other financial institutions, Russian courts have disregarded the parties' contractual agreements concerning forum selection and did not recognize foreign sanctions laws as a basis for not making payment. Russian courts have entered judgment against the Firm in a number of claims. This includes one claim for $439 million, for which the courts have stayed the enforcement of the judgment against the Firm's unprotected assets in Russia pending the outcome of an appeal, and a judgment for another claim has been executed against assets held onshore by the Firm in Russia. The total amount of the judgments exceeds the total amount of available assets that the Firm holds in Russia. Russian courts have allowed plaintiffs to withhold dividends due to the Firm's clients for the purpose of satisfying judgments, which the Firm is opposing as unlawful. The Firm continues to appeal the Russian courts' decisions, but certain judgments are now enforceable against Firm assets in Russia. Russian courts have also ordered interim freezes of Firm assets in Russia (including, among other things, funds in bank accounts, securities, shares in authorized capital, and certain trademarks, of the named defendants) pending a determination of certain underlying claims against the Firm. The Firm has challenged claims being pursued in the Russian courts and related freeze orders in other jurisdictions provided for by the parties' contractual forum selections. If further claims are enforced despite the actions taken by the Firm to challenge the claims and orders and to seek the proper application of law, the Firm's assets in Russia could be seized in full, and certain client assets could is currently pending before the South Africa Competition Tribunal.With respect to civil litigation matters, some FX-related individual and putative class actions filed outside the U.S., including in the U.K., Israel, the Netherlands and Brazil remain. In December 2025, the U.K. Supreme Court confirmed the initial decision of the Competition Appeal Tribunal, which denied a request for class certification on an opt-out basis. In Israel, a settlement in principle has been reached on the putative class action, which remains subject to court approval. Interchange Litigation. Groups of merchants and retail associations filed a series of class action complaints alleging that Visa and Mastercard, as well as certain banks, conspired to set the price of credit and debit card interchange fees and enacted related rules in violation of antitrust laws.In September 2018, the parties settled the class action seeking monetary relief. A separate class action seeking injunctive relief continues. In June 2024, the District Court for the Eastern District of New York denied preliminary approval of a settlement of the injunctive class action in which Visa and Mastercard agreed to certain changes to their respective network rules and system-wide reductions in interchange rates for U.S.-based merchants. In November 2025, the parties to that settlement reached a superseding and amended class settlement and submitted the agreement to the District Court for its approval. Of the merchants who opted out of the damages class settlement, certain merchants filed individual actions raising similar allegations against Visa and Mastercard, as well as against the Firm and other banks. The defendants have reached settlements with the merchants who opted out representing over 90% of the combined Mastercard-branded and Visa-branded payment card sales volume. The remaining opt out actions are pending. A number of these actions are pending in the United States District Court for the Southern District of New York, and that court has scheduled a trial of the claims brought by several merchants to begin in April 2026. LIBOR and Other Benchmark Rate Investigations and Litigation. JPMorganChase has responded to inquiries from various governmental agencies and entities around the world relating primarily to the British Bankers Association's ("BBA") London Interbank Offered Rate ("LIBOR") for various currencies and the European Banking Federation's Euro Interbank Offered Rate ("EURIBOR"). The Firm appealed a December 2016 decision by the European Commission against the Firm and other banks finding an infringement of European antitrust rules relating to EURIBOR. In December 2023, the European General Court annulled the fine imposed by the European is currently pending before the South Africa Competition Tribunal. With respect to civil litigation matters, some FX-related individual and putative class actions filed outside the U.S., including in the U.K., Israel, the Netherlands and Brazil remain. In December 2025, the U.K. Supreme Court confirmed the initial decision of the Competition Appeal Tribunal, which denied a request for class certification on an opt-out basis. In Israel, a settlement in principle has been reached on the putative class action, which remains subject to court approval. Interchange Litigation. Groups of merchants and retail associations filed a series of class action complaints alleging that Visa and Mastercard, as well as certain banks, conspired to set the price of credit and debit card interchange fees and enacted related rules in violation of antitrust laws. In September 2018, the parties settled the class action seeking monetary relief. A separate class action seeking injunctive relief continues. In June 2024, the District Court for the Eastern District of New York denied preliminary approval of a settlement of the injunctive class action in which Visa and Mastercard agreed to certain changes to their respective network rules and system-wide reductions in interchange rates for U.S.-based merchants. In November 2025, the parties to that settlement reached a superseding and amended class settlement and submitted the agreement to the District Court for its approval. Of the merchants who opted out of the damages class settlement, certain merchants filed individual actions raising similar allegations against Visa and Mastercard, as well as against the Firm and other banks. The defendants have reached settlements with the merchants who opted out representing over 90% of the combined Mastercard-branded and Visa-branded payment card sales volume. The remaining opt out actions are pending. A number of these actions are pending in the United States District Court for the Southern District of New York, and that court has scheduled a trial of the claims brought by several merchants to begin in April 2026. LIBOR and Other Benchmark Rate Investigations and Litigation. JPMorganChase has responded to inquiries from various governmental agencies and entities around the world relating primarily to the British Bankers Association's ("BBA") London Interbank Offered Rate ("LIBOR") for various currencies and the European Banking Federation's Euro Interbank Offered Rate ("EURIBOR"). The Firm appealed a December 2016 decision by the European Commission against the Firm and other banks finding an infringement of European antitrust rules relating to EURIBOR. In December 2023, the European General Court annulled the fine imposed by the European Commission, but exercised its discretion to re-impose a fine in an identical amount. In March 2024, the Firm filed an appeal of this decision with the Court of Justice of the European Union, which held a hearing in January 2026 and reserved judgment.In addition, the Firm was named as a defendant along with other banks in various individual and putative class actions related to benchmark rates, including U.S. dollar LIBOR. In September 2025, the United States District Court for the Southern District of New York granted summary judgment in favor of the defendants on all remaining claims related to U.S. dollar LIBOR, decertified the class, and dismissed all claims in their entirety with prejudice to refiling. Plaintiffs have filed an appeal.Russian Litigation. The Firm is obligated to comply with international sanctions laws, which mandate the blocking of certain assets. These laws apply when assets associated with individuals, companies, products or services are within the scope of the sanctions. The Firm has faced actual and threatened litigation in Russia seeking payments that the Firm cannot make under, and is contractually excused from paying as a result of, relevant sanctions laws. In claims involving the Firm and claims filed against other financial institutions, Russian courts have disregarded the parties' contractual agreements concerning forum selection and did not recognize foreign sanctions laws as a basis for not making payment. Russian courts have entered judgment against the Firm in a number of claims. This includes one claim for $439 million, for which the courts have stayed the enforcement of the judgment against the Firm's unprotected assets in Russia pending the outcome of an appeal, and a judgment for another claim has been executed against assets held onshore by the Firm in Russia. The total amount of the judgments exceeds the total amount of available assets that the Firm holds in Russia. Russian courts have allowed plaintiffs to withhold dividends due to the Firm's clients for the purpose of satisfying judgments, which the Firm is opposing as unlawful. The Firm continues to appeal the Russian courts' decisions, but certain judgments are now enforceable against Firm assets in Russia. Russian courts have also ordered interim freezes of Firm assets in Russia (including, among other things, funds in bank accounts, securities, shares in authorized capital, and certain trademarks, of the named defendants) pending a determination of certain underlying claims against the Firm. The Firm has challenged claims being pursued in the Russian courts and related freeze orders in other jurisdictions provided for by the parties' contractual forum selections. If further claims are enforced despite the actions taken by the Firm to challenge the claims and orders and to seek the proper application of law, the Firm's assets in Russia could be seized in full, and certain client assets could Commission, but exercised its discretion to re-impose a fine in an identical amount. In March 2024, the Firm filed an appeal of this decision with the Court of Justice of the European Union, which held a hearing in January 2026 and reserved judgment. In addition, the Firm was named as a defendant along with other banks in various individual and putative class actions related to benchmark rates, including U.S. dollar LIBOR. In September 2025, the United States District Court for the Southern District of New York granted summary judgment in favor of the defendants on all remaining claims related to U.S. dollar LIBOR, decertified the class, and dismissed all claims in their entirety with prejudice to refiling. Plaintiffs have filed an appeal. Russian Litigation. The Firm is obligated to comply with international sanctions laws, which mandate the blocking of certain assets. These laws apply when assets associated with individuals, companies, products or services are within the scope of the sanctions. The Firm has faced actual and threatened litigation in Russia seeking payments that the Firm cannot make under, and is contractually excused from paying as a result of, relevant sanctions laws. In claims involving the Firm and claims filed against other financial institutions, Russian courts have disregarded the parties' contractual agreements concerning forum selection and did not recognize foreign sanctions laws as a basis for not making payment. Russian courts have entered judgment against the Firm in a number of claims. This includes one claim for $439 million, for which the courts have stayed the enforcement of the judgment against the Firm's unprotected assets in Russia pending the outcome of an appeal, and a judgment for another claim has been executed against assets held onshore by the Firm in Russia. The total amount of the judgments exceeds the total amount of available assets that the Firm holds in Russia. Russian courts have allowed plaintiffs to withhold dividends due to the Firm's clients for the purpose of satisfying judgments, which the Firm is opposing as unlawful. The Firm continues to appeal the Russian courts' decisions, but certain judgments are now enforceable against Firm assets in Russia. Russian courts have also ordered interim freezes of Firm assets in Russia (including, among other things, funds in bank accounts, securities, shares in authorized capital, and certain trademarks, of the named defendants) pending a determination of certain underlying claims against the Firm. The Firm has challenged claims being pursued in the Russian courts and related freeze orders in other jurisdictions provided for by the parties' contractual forum selections. If further claims are enforced despite the actions taken by the Firm to challenge the claims and orders and to seek the proper application of law, the Firm's assets in Russia could be seized in full, and certain client assets could JPMorgan Chase & Co./2025 Form 10-K303 JPMorgan Chase & Co./2025 Form 10-K303 JPMorgan Chase & Co./2025 Form 10-K303 JPMorgan Chase & Co./2025 Form 10-K 303 --- ## Modified Risk: Consolidated average balance sheets, interest and rates **Key changes:** - Updated: "Provided below is a summary of JPMorganChase's consolidated average balances, interest and rates on a taxable-equivalent basis for the years ended December 31, 2025, 2024 and 2023." - Updated: "The incremental tax rate used for calculating the taxable-equivalent adjustment was approximately 24% in 2025, 2024 and 2023." - Updated: "(e)The combined balance of trading liabilities - debt and equity instruments was $172.9 billion, $185.4 billion and $153.3 billion for the years ended December 31, 2025, 2024 and 2023, respectively." - Updated: "JPMorgan Chase & Co./2025 Form 10-K315 JPMorgan Chase & Co./2025 Form 10-K315 JPMorgan Chase & Co./2025 Form 10-K315 JPMorgan Chase & Co./2025 Form 10-K 315 (Table continued from previous page)20242023Averagebalance(f)Interest(f)RateAveragebalance(f)Interest(f)Rate$490,205 $22,297 4.55 %$499,396 $21,797 4.36 %359,197 18,299 5.09 317,159 15,079 4.75 209,744 9,208 4.39 193,228 7,983 4.13 456,029 20,373 4.47 376,928 16,001 4.25 583,329 21,947 3.76 573,914 17,390 3.03 27,912 1,393 4.99 30,886 1,560 5.05 611,241 23,340 3.82 (i)604,800 18,950 3.13 (i)1,322,425 92,588 (h)7.00 1,248,076 83,589 (h)6.70 88,726 8,305 9.36 86,121 7,669 8.90 3,537,567 194,410 5.50 3,325,708 171,068 5.14 (22,877)(20,762)22,591 24,853 208,534 160,087 57,005 64,227 64,393 63,212 218,709 204,899 $4,085,922 $3,822,224 $1,748,050 $49,559 2.84 %$1,698,529 $40,016 2.36 %363,820 19,149 5.26 256,086 13,259 5.18 39,593 2,101 5.31 37,468 1,894 5.05 314,054 10,238 3.26 286,605 9,396 3.28 26,515 1,383 5.22 18,648 953 5.11 344,346 18,920 5.49 296,433 15,803 5.33 2,836,378 101,350 3.57 2,593,769 81,321 3.14 638,592 660,538 32,025 30,501 39,497 46,355 203,006 181,601 3,749,498 3,512,764 24,054 27,404 312,370 282,056 336,424 (g)309,460 (g)$4,085,922 $3,822,224 1.93 %2.00 %$93,060 2.63 $89,747 2.70 Average balance(f) Interest(f) Rate Average balance(f) Interest(f) Rate (i) (i) (h) (h) (g) (g) (g)The ratio of average stockholders' equity to average assets was 8.0%, 8.2% and 8.1% for the years ended December 31, 2025, 2024 and 2023, respectively." - Updated: "316JPMorgan Chase & Co./2025 Form 10-K 316JPMorgan Chase & Co./2025 Form 10-K 316JPMorgan Chase & Co./2025 Form 10-K 316 JPMorgan Chase & Co./2025 Form 10-K" **Prior (2025):** Provided below is a summary of JPMorganChase's consolidated average balances, interest and rates on a taxable-equivalent basis for the years 2022 through 2024. Income computed on a taxable-equivalent basis is the income reported in the Consolidated statements of income, adjusted to present interest income and rates earned on assets exempt from income taxes (i.e., federal taxes) on a basis comparable with other taxable investments. The incremental tax rate used for calculating the taxable-equivalent adjustment was approximately 24% in 2024, 2023 and 2022. of income, adjusted to present interest income and rates earned on assets exempt from income taxes (i.e., federal taxes) on a basis comparable with other taxable investments. The incremental tax rate used for calculating the taxable-equivalent adjustment was approximately 24% in 2024, 2023 and 2022. (Table continued on next page)(Unaudited)2024Year ended December 31,(Taxable-equivalent interest and rates; in millions, except rates)Averagebalance(f)Interest(f)RateAssetsDeposits with banks$490,205 $22,297 4.55 %Federal funds sold and securities purchased under resale agreements359,197 18,299 5.09 Securities borrowed209,744 9,208 4.39 Trading assets - debt instruments456,029 20,373 4.47 Taxable securities583,329 21,947 3.76 Non-taxable securities(a)27,912 1,393 4.99 Total investment securities611,241 23,340 3.82 (i)Loans1,322,425 92,588 (h)7.00 All other interest-earning assets(b)(c)88,726 8,305 9.36 Total interest-earning assets3,537,567 194,410 5.50 Allowance for loan losses(22,877)Cash and due from banks22,591 Trading assets - equity and other instruments208,534 Trading assets - derivative receivables57,005 Goodwill, MSRs and other intangible assets64,393 All other noninterest-earning assets218,709 Total assets$4,085,922 LiabilitiesInterest-bearing deposits$1,748,050 $49,559 2.84 %Federal funds purchased and securities loaned or sold under repurchase agreements363,820 19,149 5.26 Short-term borrowings39,593 2,101 5.31 Trading liabilities - debt and all other interest-bearing liabilities(d)(e)314,054 10,238 3.26 Beneficial interests issued by consolidated VIEs26,515 1,383 5.22 Long-term debt344,346 18,920 5.49 Total interest-bearing liabilities2,836,378 101,350 3.57 Noninterest-bearing deposits638,592 Trading liabilities - equity and other instruments(e)32,025 Trading liabilities - derivative payables39,497 All other liabilities, including the allowance for lending-related commitments203,006 Total liabilities3,749,498 Stockholders' equityPreferred stock24,054 Common stockholders' equity312,370 Total stockholders' equity336,424 (g)Total liabilities and stockholders' equity$4,085,922 Interest rate spread1.93 %Net interest income and net yield on interest-earning assets$93,060 2.63 Average balance(f) Interest(f) Rate Non-taxable securities(a) (i) (h) All other interest-earning assets(b)(c) Short-term borrowings Trading liabilities - debt and all other interest-bearing liabilities(d)(e) Trading liabilities - equity and other instruments(e) (g) (a)Represents securities that are tax-exempt for U.S. federal income tax purposes. (b)Includes brokerage-related held-for-investment customer receivables, which are classified in accrued interest and accounts receivable, and all other interest-earning assets, which are classified in other assets on the Consolidated Balance Sheets. (c)The rates reflect the impact of interest earned on cash collateral where the cash collateral has been netted against certain derivative payables. (d)All other interest-bearing liabilities include brokerage-related customer payables. (e)The combined balance of trading liabilities - debt and equity instruments was $185.4 billion, $153.3 billion and $138.1 billion for the years ended December 31, 2024, 2023 and 2022, respectively. (f)Includes the effect of derivatives that qualify for hedge accounting where applicable. Taxable-equivalent amounts are used, also where applicable. Refer to Note 5 for additional information on hedge accounting. 322JPMorgan Chase & Co./2024 Form 10-K 322JPMorgan Chase & Co./2024 Form 10-K 322JPMorgan Chase & Co./2024 Form 10-K 322 JPMorgan Chase & Co./2024 Form 10-K (Table continued from previous page)20232022Averagebalance(f)Interest(f)RateAveragebalance(f)Interest(f)Rate$499,396 $21,797 4.36 %$670,773 $9,039 1.35 %317,159 15,079 4.75 307,150 4,632 1.51 193,228 7,983 4.13 205,516 2,237 1.09 376,928 16,001 4.25 283,108 9,097 3.21 573,914 17,390 3.03 626,122 10,372 1.66 30,886 1,560 5.05 27,863 1,224 4.39 604,800 18,950 3.13 (i)653,985 11,596 1.77 (i)1,248,076 83,589 (h)6.70 1,100,318 52,877 (h)4.81 86,121 7,669 8.90 128,229 3,763 2.93 3,325,708 171,068 5.14 3,349,079 93,241 2.78 (20,762)(17,399)24,853 27,601 160,087 140,778 64,227 78,606 63,212 59,467 204,899 215,408 $3,822,224 $3,853,540 $1,698,529 $40,016 2.36 %$1,748,666 $10,082 0.58 %256,086 13,259 5.18 242,762 3,721 1.53 37,468 1,894 5.05 46,063 747 1.62 286,605 9,396 3.28 268,019 3,246 1.21 18,648 953 5.11 11,208 226 2.02 296,433 15,803 5.33 250,080 8,075 3.23 2,593,769 81,321 3.14 2,566,798 26,097 1.02 660,538 719,249 30,501 39,155 46,355 57,388 181,601 185,989 3,512,764 3,568,579 27,404 31,893 282,056 253,068 309,460 (g)284,961 (g)$3,822,224 $3,853,540 2.00 %1.76 %$89,747 2.70 $67,144 2.00 Average balance(f) Interest(f) Rate Average balance(f) Interest(f) Rate (i) (i) (h) (h) (g) (g) (g)The ratio of average stockholders' equity to average assets was 8.2%, 8.1% and 7.4% for the years ended December 31, 2024, 2023 and 2022, respectively. The return on average stockholders' equity, based on net income, was 17.4%, 16.0% and 13.2% for the years ended December 31, 2024, 2023 and 2022, respectively. (h)Included fees and commissions on loans of $3.6 billion, $2.2 billion and $1.8 billion for the years ended December 31, 2024, 2023 and 2022, respectively. (i)The annualized rate for securities based on amortized cost was 3.79%, 3.09% and 1.75% for the years ended December 31, 2024, 2023 and 2022, respectively, and does not give effect to changes in fair value that are reflected in AOCI. Within the Consolidated average balance sheets, interest and rates summary, the principal amounts of nonaccrual loans have been included in the average loan balances used to determine the average interest rate earned on loans. Refer to Note 12 for additional information on nonaccrual loans, including interest accrued. JPMorgan Chase & Co./2024 Form 10-K323 JPMorgan Chase & Co./2024 Form 10-K323 JPMorgan Chase & Co./2024 Form 10-K323 JPMorgan Chase & Co./2024 Form 10-K 323 **Current (2026):** Provided below is a summary of JPMorganChase's consolidated average balances, interest and rates on a taxable-equivalent basis for the years ended December 31, 2025, 2024 and 2023. Income computed on a taxable-equivalent basis is the income reported in the Consolidated statements of income, adjusted to present interest income and rates earned on assets exempt from income taxes (i.e., federal taxes) on a basis comparable with other taxable investments. The incremental tax rate used for calculating the taxable-equivalent adjustment was approximately 24% in 2025, 2024 and 2023. adjusted to present interest income and rates earned on assets exempt from income taxes (i.e., federal taxes) on a basis comparable with other taxable investments. The incremental tax rate used for calculating the taxable-equivalent adjustment was approximately 24% in 2025, 2024 and 2023. (Table continued on next page)(Unaudited)2025Year ended December 31,(Taxable-equivalent interest and rates; in millions, except rates)Averagebalance(f)Interest(f)RateAssetsDeposits with banks$386,384 $13,099 3.39 %Federal funds sold and securities purchased under resale agreements391,398 16,706 4.27 Securities borrowed242,788 9,027 3.72 Trading assets - debt instruments565,277 24,941 4.41 Taxable securities710,514 26,903 3.79 Non-taxable securities(a)27,446 1,295 4.72 Total investment securities737,960 28,198 3.82 (i)Loans1,400,048 94,056 (h)6.72 All other interest-earning assets(b)(c)110,504 7,739 7.00 Total interest-earning assets3,834,359 193,766 5.05 Allowance for loan losses(25,000)Cash and due from banks22,466 Trading assets - equity and other instruments242,977 Trading assets - derivative receivables59,025 Goodwill, MSRs and other intangible assets64,422 All other noninterest-earning assets233,375 Total assets$4,431,624 LiabilitiesInterest-bearing deposits$1,902,382 $45,112 2.37 %Federal funds purchased and securities loaned or sold under repurchase agreements527,509 22,411 4.25 Short-term borrowings53,612 2,298 4.29 Trading liabilities - debt and all other interest-bearing liabilities(d)(e)302,440 8,965 2.96 Beneficial interests issued by consolidated VIEs27,052 1,218 4.50 Long-term debt350,938 17,894 5.10 Total interest-bearing liabilities3,163,933 97,898 3.09 Noninterest-bearing deposits604,183 Trading liabilities - equity and other instruments(e)45,677 Trading liabilities - derivative payables44,395 All other liabilities, including the allowance for lending-related commitments220,645 Total liabilities4,078,833 Stockholders' equityPreferred stock20,037 Common stockholders' equity332,754 Total stockholders' equity352,791 (g)Total liabilities and stockholders' equity$4,431,624 Interest rate spread1.96 %Net interest income and net yield on interest-earning assets$95,868 2.50 Average balance(f) Interest(f) Rate Non-taxable securities(a) (i) (h) All other interest-earning assets(b)(c) Short-term borrowings Trading liabilities - debt and all other interest-bearing liabilities(d)(e) Trading liabilities - equity and other instruments(e) (g) (a)Represents securities that are tax-exempt for U.S. federal income tax purposes. (b)Includes brokerage-related held-for-investment customer receivables, which are classified in accrued interest and accounts receivable, and all other interest-earning assets, which are classified in other assets on the Consolidated Balance Sheets. (c)The rates reflect the impact of interest earned on cash collateral where the cash collateral has been netted against certain derivative payables. (d)All other interest-bearing liabilities include brokerage-related customer payables. (e)The combined balance of trading liabilities - debt and equity instruments was $172.9 billion, $185.4 billion and $153.3 billion for the years ended December 31, 2025, 2024 and 2023, respectively. (f)Includes the effect of derivatives that qualify for hedge accounting. Taxable-equivalent amounts are used where applicable. Refer to Note 5 for additional information on hedge accounting. JPMorgan Chase & Co./2025 Form 10-K315 JPMorgan Chase & Co./2025 Form 10-K315 JPMorgan Chase & Co./2025 Form 10-K315 JPMorgan Chase & Co./2025 Form 10-K 315 (Table continued from previous page)20242023Averagebalance(f)Interest(f)RateAveragebalance(f)Interest(f)Rate$490,205 $22,297 4.55 %$499,396 $21,797 4.36 %359,197 18,299 5.09 317,159 15,079 4.75 209,744 9,208 4.39 193,228 7,983 4.13 456,029 20,373 4.47 376,928 16,001 4.25 583,329 21,947 3.76 573,914 17,390 3.03 27,912 1,393 4.99 30,886 1,560 5.05 611,241 23,340 3.82 (i)604,800 18,950 3.13 (i)1,322,425 92,588 (h)7.00 1,248,076 83,589 (h)6.70 88,726 8,305 9.36 86,121 7,669 8.90 3,537,567 194,410 5.50 3,325,708 171,068 5.14 (22,877)(20,762)22,591 24,853 208,534 160,087 57,005 64,227 64,393 63,212 218,709 204,899 $4,085,922 $3,822,224 $1,748,050 $49,559 2.84 %$1,698,529 $40,016 2.36 %363,820 19,149 5.26 256,086 13,259 5.18 39,593 2,101 5.31 37,468 1,894 5.05 314,054 10,238 3.26 286,605 9,396 3.28 26,515 1,383 5.22 18,648 953 5.11 344,346 18,920 5.49 296,433 15,803 5.33 2,836,378 101,350 3.57 2,593,769 81,321 3.14 638,592 660,538 32,025 30,501 39,497 46,355 203,006 181,601 3,749,498 3,512,764 24,054 27,404 312,370 282,056 336,424 (g)309,460 (g)$4,085,922 $3,822,224 1.93 %2.00 %$93,060 2.63 $89,747 2.70 Average balance(f) Interest(f) Rate Average balance(f) Interest(f) Rate (i) (i) (h) (h) (g) (g) (g)The ratio of average stockholders' equity to average assets was 8.0%, 8.2% and 8.1% for the years ended December 31, 2025, 2024 and 2023, respectively. The return on average stockholders' equity, based on net income, was 16.2%, 17.4% and 16.0% for the years ended December 31, 2025, 2024 and 2023, respectively. (h)Included fees and commissions on loans of $3.7 billion, $3.6 billion and $2.2 billion for the years ended December 31, 2025, 2024 and 2023, respectively. (i)The annualized rate for securities based on amortized cost was 3.80%, 3.79% and 3.09% for the years ended December 31, 2025, 2024 and 2023, respectively, and does not give effect to changes in fair value that are reflected in AOCI. Within the Consolidated average balance sheets, interest and rates summary, the principal amounts of nonaccrual loans have been included in the average loan balances used to determine the average interest rate earned on loans. Refer to Note 12 for additional information on nonaccrual loans, including interest accrued. 316JPMorgan Chase & Co./2025 Form 10-K 316JPMorgan Chase & Co./2025 Form 10-K 316JPMorgan Chase & Co./2025 Form 10-K 316 JPMorgan Chase & Co./2025 Form 10-K --- ## Modified Risk: JPMorganChase's results or competitive standing could suffer if its management fails to develop and execute effective business strategies and to anticipate changes affecting those strategies. **Key changes:** - Updated: "The ability of JPMorganChase's management to develop and execute effective business strategies, and the ability to anticipate and respond to shifts in the competitive environment, are critical to JPMorganChase's competitive standing and to achieving its strategic objectives." - Updated: "These advances have also allowed financial institutions and other companies to provide electronic and internet-based financial solutions, including:•lending and other extensions of credit to consumers•payments processing•cryptocurrency, including stablecoins•tokenized securities, and •online automated algorithmic-based investment advice." - Updated: "Any of these impacts could, in turn, reduce JPMorganChase's revenues." **Prior (2025):** The development and execution of effective business strategies by JPMorganChase's management, along with the ability to anticipate and respond to shifts in the competitive environment, are critical to JPMorganChase's competitive standing and to achieving its strategic objectives. These strategies relate to: •the products and services that JPMorganChase offers •the geographies in which it operates •the types of clients and customers that it serves •the businesses that it acquires or in which it invests •the counterparties with which it does business •the technologies that it adopts or in which it invests, which may include new and currently unproven technologies, and •the methods, distribution channels and third party service providers by or through which it offers products and services. If management makes choices about these strategies and goals that prove to be incorrect, are based on incomplete, inaccurate or fraudulent information, do not accurately assess the competitive landscape and industry trends, or fail to address changing regulatory and market environments or the expectations of clients, customers, investors, employees and other stakeholders, then the franchise values and growth prospects of JPMorganChase's businesses may suffer and its earnings could decline. JPMorganChase's growth prospects also depend on management's ability to develop and execute effective business plans to address these strategic priorities, both in the near term and over longer time horizons. Management's effectiveness in this regard will affect 30 30 30 30 JPMorganChase's ability to develop and enhance its resources, control expenses and return capital to shareholders. Each of these objectives could be adversely affected by any failure on the part of management to:•devise effective business plans and strategies•offer products and services that meet changing expectations of clients and customers•allocate capital in a manner that promotes long-term stability to enable JPMorganChase to build and invest in market-leading businesses, even in a highly stressed environment•allocate capital appropriately due to imprecise modeling or subjective judgments made in connection with those allocations•appropriately assess and monitor principal investments made to enhance or accelerate JPMorganChase's business strategies •conduct appropriate due diligence on prospective business acquisitions or investments, or effectively integrate newly-acquired businesses•appropriately address concerns of clients, customers, investors, employees and other stakeholders, including with respect to climate and other ESG matters•react quickly to changes in market conditions or market structures, or•develop and enhance the operational, technology, risk, financial and managerial resources and capabilities necessary to grow and manage JPMorganChase's businesses.Furthermore, JPMorganChase may incur costs in connection with disposing of excess properties, premises and facilities, and those costs could be material to its results of operations.JPMorganChase faces significant and increasing competition in the rapidly evolving financial services industry.JPMorganChase operates in a highly competitive environment in which it must evolve and adapt to changes in financial regulation, technological advances, increased public scrutiny and changes in economic conditions. JPMorganChase expects that competition in the U.S. and global financial services industry will continue to be intense. Competitors include:•other banks and financial institutions•trading, advisory and investment management firms•finance companies•technology companies, and•other non-bank firms that are engaged in providing similar as well as new products and services.JPMorganChase cannot provide assurance that the significant competition in the financial services industry will not materially and adversely affect its future results of operations. For example, aggressive or less disciplined lending practices by non-bank competitors could lead to a loss of market share for traditional banks, and in an economic downturn could result in instability in the financial services industry and adversely impact other market participants, including JPMorganChase.New competitors in the financial services industry continue to emerge. For example, technological advances and the growth of e-commerce have made it possible for non-depository institutions to offer products and services that traditionally were banking products. These advances have also allowed financial institutions and other companies to provide electronic and internet-based financial solutions, including electronic securities and cryptocurrency trading, lending and other extensions of credit to consumers, payments processing and online automated algorithmic-based investment advice. Furthermore, both financial institutions and their non-banking competitors face the risk that payments processing and other products and services, including deposits and other traditional banking products, could be significantly disrupted by the use of new technologies, such as cryptocurrencies and other applications using secure distributed ledgers, that may not require intermediation. New technologies have required and could require JPMorganChase to spend more to modify or adapt its products to attract and retain clients and customers or to match products and services offered by its competitors, including technology companies. In addition, new technologies may be used by customers, or breached or infiltrated by third parties, in unexpected ways, which can increase JPMorganChase's costs for complying with laws, rules and regulations that apply to the offering of products and services through those technologies and reduce the income that JPMorganChase earns from providing products and services through those technologies.Ongoing or increased competition may put pressure on the pricing for JPMorganChase's products and services or may cause JPMorganChase to lose market share, particularly with respect to traditional banking products. This competition may be based on quality and variety of products and services offered, transaction execution, innovation, reputation and price. The failure of any of JPMorganChase's businesses to meet the expectations of clients and customers, whether due to general market conditions, under-performance, a decision not to offer a particular product or service, changes in client and customer expectations or other factors, could affect JPMorganChase's ability to attract or retain clients and customers. Any such impact could, in turn, reduce JPMorganChase's ability to develop and enhance its resources, control expenses and return capital to shareholders. Each of these objectives could be adversely affected by any failure on the part of management to:•devise effective business plans and strategies•offer products and services that meet changing expectations of clients and customers•allocate capital in a manner that promotes long-term stability to enable JPMorganChase to build and invest in market-leading businesses, even in a highly stressed environment•allocate capital appropriately due to imprecise modeling or subjective judgments made in connection with those allocations•appropriately assess and monitor principal investments made to enhance or accelerate JPMorganChase's business strategies •conduct appropriate due diligence on prospective business acquisitions or investments, or effectively integrate newly-acquired businesses•appropriately address concerns of clients, customers, investors, employees and other stakeholders, including with respect to climate and other ESG matters•react quickly to changes in market conditions or market structures, or•develop and enhance the operational, technology, risk, financial and managerial resources and capabilities necessary to grow and manage JPMorganChase's businesses.Furthermore, JPMorganChase may incur costs in connection with disposing of excess properties, premises and facilities, and those costs could be material to its results of operations.JPMorganChase faces significant and increasing competition in the rapidly evolving financial services industry.JPMorganChase operates in a highly competitive environment in which it must evolve and adapt to changes in financial regulation, technological advances, increased public scrutiny and changes in economic conditions. JPMorganChase expects that competition in the U.S. and global financial services industry will continue to be intense. Competitors include:•other banks and financial institutions•trading, advisory and investment management firms•finance companies•technology companies, and•other non-bank firms that are engaged in providing similar as well as new products and services. JPMorganChase's ability to develop and enhance its resources, control expenses and return capital to shareholders. Each of these objectives could be adversely affected by any failure on the part of management to: •devise effective business plans and strategies •offer products and services that meet changing expectations of clients and customers •allocate capital in a manner that promotes long-term stability to enable JPMorganChase to build and invest in market-leading businesses, even in a highly stressed environment •allocate capital appropriately due to imprecise modeling or subjective judgments made in connection with those allocations •appropriately assess and monitor principal investments made to enhance or accelerate JPMorganChase's business strategies •conduct appropriate due diligence on prospective business acquisitions or investments, or effectively integrate newly-acquired businesses •appropriately address concerns of clients, customers, investors, employees and other stakeholders, including with respect to climate and other ESG matters •react quickly to changes in market conditions or market structures, or •develop and enhance the operational, technology, risk, financial and managerial resources and capabilities necessary to grow and manage JPMorganChase's businesses. Furthermore, JPMorganChase may incur costs in connection with disposing of excess properties, premises and facilities, and those costs could be material to its results of operations. **Current (2026):** The ability of JPMorganChase's management to develop and execute effective business strategies, and the ability to anticipate and respond to shifts in the competitive environment, are critical to JPMorganChase's competitive standing and to achieving its strategic objectives. These strategies relate to: •the products and services that JPMorganChase offers •the geographies in which it operates •the types of clients and customers that it serves •the businesses that it acquires or in which it invests•the counterparties with which it does business•the technologies that it adopts or in which it invests, and•the methods, distribution channels and third-party service providers by or through which it offers products and services.The values and growth prospects of JPMorganChase's businesses could suffer and its earnings could decline if management makes strategic choices that prove to be incorrect, are based on incomplete, inaccurate or fraudulent information, do not accurately assess the competitive landscape and industry trends, or fail to address changing regulatory and market environments or the expectations of clients, customers, investors, employees and other stakeholders. JPMorganChase's growth prospects also depend on management's ability to develop and execute effective business plans to address these strategic priorities, both over near term and longer time horizons. Management's effectiveness in this regard will affect JPMorganChase's ability to develop its resources, control expenses and return capital to shareholders. Each of these objectives could be adversely affected by any failure by management to:•devise effective business plans and strategies•offer products and services that meet expectations of clients and customers•allocate capital in a manner that promotes long-term stability to enable JPMorganChase to build and invest in market-leading businesses•appropriately assess and monitor principal investments •conduct appropriate due diligence on prospective business acquisitions or investments, or effectively integrate newly-acquired businesses•appropriately address concerns of clients, customers, investors, employees, regulators and other stakeholders•maintain an effective risk management framework•react quickly to changes in market conditions or structures•appropriately balance workforce planning and training as new technologies, such as AI, are adopted and integrated, or•develop the operational, technology, risk, financial and managerial capabilities necessary to grow and manage JPMorganChase's businesses.Furthermore, any expenses that JPMorganChase may incur in connection with disposing of assets, including excess properties, or exiting businesses or products could be material to its results of operations. •the businesses that it acquires or in which it invests •the counterparties with which it does business •the technologies that it adopts or in which it invests, and •the methods, distribution channels and third-party service providers by or through which it offers products and services. The values and growth prospects of JPMorganChase's businesses could suffer and its earnings could decline if management makes strategic choices that prove to be incorrect, are based on incomplete, inaccurate or fraudulent information, do not accurately assess the competitive landscape and industry trends, or fail to address changing regulatory and market environments or the expectations of clients, customers, investors, employees and other stakeholders. JPMorganChase's growth prospects also depend on management's ability to develop and execute effective business plans to address these strategic priorities, both over near term and longer time horizons. Management's effectiveness in this regard will affect JPMorganChase's ability to develop its resources, control expenses and return capital to shareholders. Each of these objectives could be adversely affected by any failure by management to: •devise effective business plans and strategies •offer products and services that meet expectations of clients and customers •allocate capital in a manner that promotes long-term stability to enable JPMorganChase to build and invest in market-leading businesses •appropriately assess and monitor principal investments •conduct appropriate due diligence on prospective business acquisitions or investments, or effectively integrate newly-acquired businesses •appropriately address concerns of clients, customers, investors, employees, regulators and other stakeholders •maintain an effective risk management framework •react quickly to changes in market conditions or structures •appropriately balance workforce planning and training as new technologies, such as AI, are adopted and integrated, or •develop the operational, technology, risk, financial and managerial capabilities necessary to grow and manage JPMorganChase's businesses. Furthermore, any expenses that JPMorganChase may incur in connection with disposing of assets, including excess properties, or exiting businesses or products could be material to its results of operations. 27 27 27 27 Part I Part I Competition in the financial services industry could lead to negative effects on JPMorganChase's results of operations.JPMorganChase operates in a highly competitive environment in which it must constantly adapt to changes in financial regulation, technological advances and economic conditions. JPMorganChase expects that competition in the financial services industry will remain intense, with new competitors in the financial services industry continuing to emerge. For example, technological advances and the growth of e-commerce have made it possible for non-depository institutions to offer products and services that traditionally were banking products. These advances have also allowed financial institutions and other companies to provide electronic and internet-based financial solutions, including:•lending and other extensions of credit to consumers•payments processing•cryptocurrency, including stablecoins•tokenized securities, and •online automated algorithmic-based investment advice. Furthermore, both financial institutions and their non-banking competitors face the risk of disruption to payments processing and other products and services from the use of new technologies that may not require intermediation, such as tokenized securities or other products that leverage distributed ledger technology. New technologies have required and could require JPMorganChase to increase expenditures to modify its products to attract and retain clients and customers or to match products and services offered by its competitors, including technology companies. If JPMorganChase does not keep pace with rapidly changing technological advances, including the adoption of generative AI, it risks losing clients and market share to competitors, which could negatively impact revenues, operating costs and its competitive position. Competition could be intensified as the feasibility, capability and scalability of new technologies improves. In addition, new technologies (including generative AI) could be used by customers or bad actors in unexpected or disruptive ways, or could be breached or infiltrated by third parties, which could increase JPMorganChase's compliance expenses and reduce its income related to the offering of products and services through those technologies.Actions by competitors could put pressure on the pricing for JPMorganChase's products and services or could cause it to lose market share, particularly with respect to investment products and traditional banking products. In addition, advocacy by non-banking competitors for exemptions from regulatory requirements could significantly disadvantage traditional financial institutions. The failure of any of JPMorganChase's businesses to meet the expectations of clients and customers, whether due to general market conditions, under-performance, a decision not to offer a particular product or service, changes in client and customer expectations or other factors, could affect JPMorganChase's ability to attract or retain clients and customers. Any of these impacts could, in turn, reduce JPMorganChase's revenues. Increased competition also could require JPMorganChase to make additional capital investments in its businesses, or to extend more of its capital on behalf of its clients to remain competitive. Furthermore, regulatory uncertainty regarding new technologies, including inconsistent regulatory approaches within and across jurisdictions, could require JPMorganChase to modify or restrict its product and service offerings, incur higher operational or compliance costs or forgo business opportunities.JPMorganChase's operations, results, and competitive standing could be adversely affected by the development of advanced technologies such as AI.The rapid development and deployment of advanced technologies, including generative and agentic AI systems, present a range of risks to JPMorganChase's businesses and operations, including:•AI system failures, inappropriate use of AI systems, lack of transparency in AI systems, or inaccurate or biased output from AI systems resulting from rapid deployment, insufficient testing, erroneous data, ineffective model design or insufficient controls, which could disrupt operations, cause erroneous transactions, compromise data privacy, infringe on intellectual property, harm clients and customers, or impair JPMorganChase's ability to make sound business decisions•increased exposure to cyber attacks, system manipulation, or data loss if AI systems, particularly agentic systems, are not designed and implemented with appropriate safeguards to prevent systems from accessing sensitive data sources or system resources and taking actions•intensified AI-enabled cyber threats, which may allow malicious actors to exploit vulnerabilities, reverse-engineer security patches, and conduct sophisticated social engineering attacks, potentially resulting in unauthorized access to sensitive information and data breaches, especially if JPMorganChase fails to adequately maintain, secure and upgrade its technological infrastructure in response to rapidly evolving technological advances•regulatory and compliance challenges arising from rapidly evolving applicable law, including differences, inconsistencies and conflicts in international standards, which could increase costs, lead to fines and sanctions, and restrict JPMorganChase's use of AI technologies Competition in the financial services industry could lead to negative effects on JPMorganChase's results of operations.JPMorganChase operates in a highly competitive environment in which it must constantly adapt to changes in financial regulation, technological advances and economic conditions. JPMorganChase expects that competition in the financial services industry will remain intense, with new competitors in the financial services industry continuing to emerge. For example, technological advances and the growth of e-commerce have made it possible for non-depository institutions to offer products and services that traditionally were banking products. These advances have also allowed financial institutions and other companies to provide electronic and internet-based financial solutions, including:•lending and other extensions of credit to consumers•payments processing•cryptocurrency, including stablecoins•tokenized securities, and •online automated algorithmic-based investment advice. Furthermore, both financial institutions and their non-banking competitors face the risk of disruption to payments processing and other products and services from the use of new technologies that may not require intermediation, such as tokenized securities or other products that leverage distributed ledger technology. New technologies have required and could require JPMorganChase to increase expenditures to modify its products to attract and retain clients and customers or to match products and services offered by its competitors, including technology companies. If JPMorganChase does not keep pace with rapidly changing technological advances, including the adoption of generative AI, it risks losing clients and market share to competitors, which could negatively impact revenues, operating costs and its competitive position. Competition could be intensified as the feasibility, capability and scalability of new technologies improves. In addition, new technologies (including generative AI) could be used by customers or bad actors in unexpected or disruptive ways, or could be breached or infiltrated by third parties, which could increase JPMorganChase's compliance expenses and reduce its income related to the offering of products and services through those technologies.Actions by competitors could put pressure on the pricing for JPMorganChase's products and services or could cause it to lose market share, particularly with respect to investment products and traditional banking products. In addition, advocacy by non-banking competitors for exemptions from regulatory requirements could significantly disadvantage traditional financial institutions. --- ## Modified Risk: Segment & Corporate Results - Managed Basis **Key changes:** - Updated: "Year ended December 31,Consumer & Community BankingCommercial & Investment BankAsset & Wealth Management(in millions, except ratios)202520242023202520242023202520242023Total net revenue$76,029$71,507$70,148$78,454 $70,114$64,353$24,073 $21,578$19,827Total noninterest expense40,26738,03634,81938,216 35,35333,97215,332 14,41412,780Pre-provision profit35,76233,47135,32940,238 34,76130,3818,741 7,1647,047Provision for credit losses11,493(a)9,9746,8992,615 7622,09197 (68)159Net income18,24517,60321,23227,761 24,84620,2726,522 5,4215,227Return on equity ("ROE")32 %32 %38 %18 %18 %14 %40 %34 %31 %Year ended December 31,CorporateTotal(in millions, except ratios)202520242023202520242023Total net revenue$7,025$17,394(b)$8,038$185,581$180,593(b)$162,366Total noninterest expense1,8253,994(c)5,60195,64091,797(c)87,172Pre-provision profit5,20013,4002,43789,94188,79675,194Provision for credit losses71017114,21210,6789,320Net income4,52010,6012,82157,04858,47149,552Return on equity ("ROE") NM NMNM17 %18 %17 % Pre-provision profit (a) Net income (b) (b) (c) (c) Pre-provision profit Net income (a)Includes a provision for lending-related commitments of $2.2 billion related to the Apple Card transaction." - Updated: "Refer to Note 6 for additional information." - Updated: "The following sections provide a comparative discussion of the Firm's results by business segments and Corporate as of or for the years ended December 31, 2025 and 2024, unless otherwise specified." - Updated: "Card Services issues credit cards and offers payment solutions, travel services, merchant offers and lifestyle benefits." - Updated: "Card Services issues credit cards and offers payment solutions, travel services, merchant offers and lifestyle benefits." **Prior (2025):** The following tables summarize the Firm's results by business segments and Corporate for the periods indicated. Year ended December 31,Consumer & Community BankingCommercial & Investment BankAsset & Wealth Management(in millions, except ratios)202420232022202420232022202420232022Total net revenue$71,507$70,148$54,814(a)$70,114 $64,353$59,635(a)$21,578 $19,827$17,748Total noninterest expense38,03634,81931,208(a)35,353 33,97232,069(a)14,414 12,78011,829Pre-provision profit/(loss)33,47135,32923,60634,761 30,38127,5667,164 7,0475,919Provision for credit losses9,9746,8993,813762 2,0912,426(68)159128Net income/(loss)17,60321,23214,916(a)24,846 20,27219,138(a)5,421 5,2274,365Return on equity ("ROE")32 %38 %29 %18 %14 %14 %34 %31 %25 %Year ended December 31,CorporateTotal(in millions, except ratios)202420232022202420232022Total net revenue$17,394(b)$8,038$80$180,593(b)$162,366$132,277Total noninterest expense3,994(c)5,6011,03491,797(c)87,17276,140Pre-provision profit/(loss)13,4002,437(954)88,79675,19456,137Provision for credit losses101712210,6789,3206,389Net income/(loss)10,6012,821(743)58,47149,55237,676Return on equity ("ROE") NM NMNM18 %17 %14 % (a) (a) (a) (a) (a) (a) (b) (b) (c) (c) (a)In the first quarter of 2023, the allocations of revenue and expense to CCB associated with a Merchant Services revenue sharing agreement were discontinued and are now retained in Payments in CIB. Prior-period amounts have been revised to conform with the current presentation. (b)Included a $7.9 billion net gain related to Visa shares recorded in the second quarter of 2024. Refer to Notes 2 and 6 for additional information. (c)Included a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024. Refer to Notes 2 and 6 for additional information. Refer to Note 32 for further details on total net revenue and total noninterest expense. The following sections provide a comparative discussion of the Firm's results by business segments and Corporate as of or for the years ended December 31, 2024 and 2023, unless otherwise specified. 72JPMorgan Chase & Co./2024 Form 10-K 72JPMorgan Chase & Co./2024 Form 10-K 72JPMorgan Chase & Co./2024 Form 10-K 72 JPMorgan Chase & Co./2024 Form 10-K CONSUMER & COMMUNITY BANKING Consumer & Community Banking offers products and services to consumers and small businesses through bank branches, ATMs, digital (including mobile and online) and telephone banking. CCB is organized into Banking & Wealth Management (including Consumer Banking, Business Banking and J.P. Morgan Wealth Management), Home Lending (including Home Lending Production, Home Lending Servicing and Real Estate Portfolios) and Card Services & Auto. Banking & Wealth Management offers deposit, investment and lending products, cash management, payments and services. Home Lending includes mortgage origination and servicing activities, as well as portfolios consisting of residential mortgages and home equity loans. Card Services issues credit cards and offers travel services. Auto originates and services auto loans and leases.Selected income statement dataYear ended December 31,(in millions, except ratios)202420232022RevenueLending- and deposit-related fees$3,387 $3,356 $3,316 Asset management fees4,014 3,282 2,734 Mortgage fees and related income1,378 1,175 1,236 Card income3,139 2,532 2,469 All other income(a)4,731 4,773 5,131 Noninterest revenue16,649 15,118 14,886 Net interest income54,858 55,030 39,928 Total net revenue71,507 70,148 54,814 Provision for credit losses9,974 6,899 3,813 Noninterest expenseCompensation expense17,045 15,171 13,092 Noncompensation expense(b)20,991 19,648 18,116 Total noninterest expense38,036 34,819 (d)31,208 Income before income tax expense23,497 28,430 19,793 Income tax expense5,894 7,198 4,877 Net income$17,603 $21,232 $14,916 Revenue by businessBanking & Wealth Management$40,943 $43,199 $30,059 Home Lending5,097 4,140 3,674 Card Services & Auto25,467 22,809 21,081 Mortgage fees and related income details:Production revenue627 421 497 Net mortgage servicing revenue(c)751 754 739 Mortgage fees and related income$1,378 $1,175 $1,236 Financial ratiosReturn on equity32 %38 %29 %Overhead ratio53 50 57 (a)Primarily includes operating lease income and commissions and other fees. Operating lease income was $2.8 billion, $2.8 billion and $3.6 billion for the years ended December 31, 2024, 2023 and 2022, respectively.(b)Included depreciation expense on leased assets of $1.7 billion, $1.7 billion and $2.4 billion for the years ended December 31, 2024, 2023 and 2022, respectively.(c)Included MSR risk management results of $159 million, $131 million and $93 million for the years ended December 31, 2024, 2023 and 2022, respectively.(d)In the second quarter of 2023, substantially all of the expense associated with First Republic was reported in Corporate. Commencing in the third quarter of 2023, the expense was aligned to the appropriate LOB. Consumer & Community Banking offers products and services to consumers and small businesses through bank branches, ATMs, digital (including mobile and online) and telephone banking. CCB is organized into Banking & Wealth Management (including Consumer Banking, Business Banking and J.P. Morgan Wealth Management), Home Lending (including Home Lending Production, Home Lending Servicing and Real Estate Portfolios) and Card Services & Auto. Banking & Wealth Management offers deposit, investment and lending products, cash management, payments and services. Home Lending includes mortgage origination and servicing activities, as well as portfolios consisting of residential mortgages and home equity loans. Card Services issues credit cards and offers travel services. Auto originates and services auto loans and leases. Consumer & Community Banking offers products and services to consumers and small businesses through bank branches, ATMs, digital (including mobile and online) and telephone banking. CCB is organized into Banking & Wealth Management (including Consumer Banking, Business Banking and J.P. Morgan Wealth Management), Home Lending (including Home Lending Production, Home Lending Servicing and Real Estate Portfolios) and Card Services & Auto. Banking & Wealth Management offers deposit, investment and lending products, cash management, payments and services. Home Lending includes mortgage origination and servicing activities, as well as portfolios consisting of residential mortgages and home equity loans. Card Services issues credit cards and offers travel services. Auto originates and services auto loans and leases. Consumer & Community Banking offers products and services to consumers and small businesses through bank branches, ATMs, digital (including mobile and online) and telephone banking. CCB is organized into Banking & Wealth Management (including Consumer Banking, Business Banking and J.P. Morgan Wealth Management), Home Lending (including Home Lending Production, Home Lending Servicing and Real Estate Portfolios) and Card Services & Auto. Banking & Wealth Management offers deposit, investment and lending products, cash management, payments and services. Home Lending includes mortgage origination and servicing activities, as well as portfolios consisting of residential mortgages and home equity loans. Card Services issues credit cards and offers travel services. Auto originates and services auto loans and leases. Selected income statement dataYear ended December 31,(in millions, except ratios)202420232022RevenueLending- and deposit-related fees$3,387 $3,356 $3,316 Asset management fees4,014 3,282 2,734 Mortgage fees and related income1,378 1,175 1,236 Card income3,139 2,532 2,469 All other income(a)4,731 4,773 5,131 Noninterest revenue16,649 15,118 14,886 Net interest income54,858 55,030 39,928 Total net revenue71,507 70,148 54,814 Provision for credit losses9,974 6,899 3,813 Noninterest expenseCompensation expense17,045 15,171 13,092 Noncompensation expense(b)20,991 19,648 18,116 Total noninterest expense38,036 34,819 (d)31,208 Income before income tax expense23,497 28,430 19,793 Income tax expense5,894 7,198 4,877 Net income$17,603 $21,232 $14,916 Revenue by businessBanking & Wealth Management$40,943 $43,199 $30,059 Home Lending5,097 4,140 3,674 Card Services & Auto25,467 22,809 21,081 Mortgage fees and related income details:Production revenue627 421 497 Net mortgage servicing revenue(c)751 754 739 Mortgage fees and related income$1,378 $1,175 $1,236 Financial ratiosReturn on equity32 %38 %29 %Overhead ratio53 50 57 (a)Primarily includes operating lease income and commissions and other fees. Operating lease income was $2.8 billion, $2.8 billion and $3.6 billion for the years ended December 31, 2024, 2023 and 2022, respectively.(b)Included depreciation expense on leased assets of $1.7 billion, $1.7 billion and $2.4 billion for the years ended December 31, 2024, 2023 and 2022, respectively.(c)Included MSR risk management results of $159 million, $131 million and $93 million for the years ended December 31, 2024, 2023 and 2022, respectively.(d)In the second quarter of 2023, substantially all of the expense associated with First Republic was reported in Corporate. Commencing in the third quarter of 2023, the expense was aligned to the appropriate LOB. Selected income statement dataYear ended December 31,(in millions, except ratios)202420232022RevenueLending- and deposit-related fees$3,387 $3,356 $3,316 Asset management fees4,014 3,282 2,734 Mortgage fees and related income1,378 1,175 1,236 Card income3,139 2,532 2,469 All other income(a)4,731 4,773 5,131 Noninterest revenue16,649 15,118 14,886 Net interest income54,858 55,030 39,928 Total net revenue71,507 70,148 54,814 Provision for credit losses9,974 6,899 3,813 Noninterest expenseCompensation expense17,045 15,171 13,092 Noncompensation expense(b)20,991 19,648 18,116 Total noninterest expense38,036 34,819 (d)31,208 Income before income tax expense23,497 28,430 19,793 Income tax expense5,894 7,198 4,877 Net income$17,603 $21,232 $14,916 Revenue by businessBanking & Wealth Management$40,943 $43,199 $30,059 Home Lending5,097 4,140 3,674 Card Services & Auto25,467 22,809 21,081 Mortgage fees and related income details:Production revenue627 421 497 Net mortgage servicing revenue(c)751 754 739 Mortgage fees and related income$1,378 $1,175 $1,236 Financial ratiosReturn on equity32 %38 %29 %Overhead ratio53 50 57 All other income(a) Noncompensation expense(b) (d) Net mortgage servicing revenue(c) (a)Primarily includes operating lease income and commissions and other fees. Operating lease income was $2.8 billion, $2.8 billion and $3.6 billion for the years ended December 31, 2024, 2023 and 2022, respectively. (b)Included depreciation expense on leased assets of $1.7 billion, $1.7 billion and $2.4 billion for the years ended December 31, 2024, 2023 and 2022, respectively. (c)Included MSR risk management results of $159 million, $131 million and $93 million for the years ended December 31, 2024, 2023 and 2022, respectively. (d)In the second quarter of 2023, substantially all of the expense associated with First Republic was reported in Corporate. Commencing in the third quarter of 2023, the expense was aligned to the appropriate LOB. JPMorgan Chase & Co./2024 Form 10-K73 JPMorgan Chase & Co./2024 Form 10-K73 JPMorgan Chase & Co./2024 Form 10-K73 JPMorgan Chase & Co./2024 Form 10-K 73 2024 compared with 2023Net income was $17.6 billion, down 17%.Net revenue was $71.5 billion, up 2%.Net interest income was $54.9 billion, flat when compared with the prior year, reflecting:•lower NII in Banking & Wealth Management ("BWM"), predominantly driven by deposit margin compression and lower average deposits,offset by•higher Card Services NII, predominantly driven by higher revolving balances, and•the timing impact of First Republic in Home Lending.Noninterest revenue was $16.6 billion, up 10%, predominantly driven by:•higher asset management fees reflecting higher average market levels, including the timing impact of First Republic and, to a lesser extent, net inflows, as well as higher commissions from annuity sales in BWM,•higher card income, driven by higher net interchange reflecting increased debit and credit card sales volume, and higher annual fees, partially offset by an increase in amortization related to new account origination costs, as well as•higher production revenue in Home Lending, including the timing impact of First Republic. Refer to Note 6 for additional information on card income, asset management fees, and commissions and other fees; and Critical Accounting Estimates on pages 161-164 for additional information on the credit card rewards liability. Refer to Executive Overview on page 54 and Note 34 for additional information on First Republic.Noninterest expense was $38.0 billion, up 9%, reflecting First Republic-related expense that was aligned to CCB from Corporate starting in the third quarter of 2023, impacting both compensation and noncompensation expense.The increase in expense also reflected:•higher compensation expense, largely driven by higher revenue-related compensation predominantly for advisors and bankers, and an increase in the number of employees, including in technology, and•higher noncompensation expense, largely driven by continued investments in technology and marketing, as well as higher operating losses, partially offset by lower legal expense.The provision for credit losses was $10.0 billion, reflecting:•net charge-offs of $7.9 billion, up $2.6 billion, including $2.4 billion in Card Services, reflecting the seasoning of vintages originated in recent years, credit normalization and balance growth, and•a $2.0 billion net addition to the allowance for credit losses, consisting of:-$2.2 billion in Card Services, predominantly driven by loan growth, reflecting higher revolving balances, including the seasoning of vintages originated in recent years,partially offset by-a $125 million net reduction in Home Lending, primarily due to improvements in the outlook for home prices in the first quarter of 2024. The provision in the prior year was $6.9 billion, reflecting net charge-offs of $5.3 billion, a $1.2 billion net addition to the allowance for credit losses, predominantly driven by Card Services, and a $408 million net addition to the allowance for credit losses to establish the allowance for the First Republic loans and lending-related commitments in the second quarter of 2023.Refer to Credit and Investment Risk Management on pages 117-140 and Allowance for Credit Losses on pages 137-139 for a further discussion of the credit portfolios and the allowance for credit losses. 2024 compared with 2023Net income was $17.6 billion, down 17%.Net revenue was $71.5 billion, up 2%.Net interest income was $54.9 billion, flat when compared with the prior year, reflecting:•lower NII in Banking & Wealth Management ("BWM"), predominantly driven by deposit margin compression and lower average deposits,offset by•higher Card Services NII, predominantly driven by higher revolving balances, and•the timing impact of First Republic in Home Lending.Noninterest revenue was $16.6 billion, up 10%, predominantly driven by:•higher asset management fees reflecting higher average market levels, including the timing impact of First Republic and, to a lesser extent, net inflows, as well as higher commissions from annuity sales in BWM,•higher card income, driven by higher net interchange reflecting increased debit and credit card sales volume, and higher annual fees, partially offset by an increase in amortization related to new account origination costs, as well as•higher production revenue in Home Lending, including the timing impact of First Republic. Refer to Note 6 for additional information on card income, asset management fees, and commissions and other fees; and Critical Accounting Estimates on pages 161-164 for additional information on the credit card rewards liability. Refer to Executive Overview on page 54 and Note 34 for additional information on First Republic.Noninterest expense was $38.0 billion, up 9%, reflecting First Republic-related expense that was aligned to CCB from Corporate starting in the third quarter of 2023, impacting both compensation and noncompensation expense.The increase in expense also reflected:•higher compensation expense, largely driven by higher revenue-related compensation predominantly for advisors and bankers, and an increase in the number of employees, including in technology, and•higher noncompensation expense, largely driven by continued investments in technology and marketing, as well as higher operating losses, partially offset by lower legal expense. **Current (2026):** The following tables summarize the Firm's results by business segments and Corporate for the periods indicated. Year ended December 31,Consumer & Community BankingCommercial & Investment BankAsset & Wealth Management(in millions, except ratios)202520242023202520242023202520242023Total net revenue$76,029$71,507$70,148$78,454 $70,114$64,353$24,073 $21,578$19,827Total noninterest expense40,26738,03634,81938,216 35,35333,97215,332 14,41412,780Pre-provision profit35,76233,47135,32940,238 34,76130,3818,741 7,1647,047Provision for credit losses11,493(a)9,9746,8992,615 7622,09197 (68)159Net income18,24517,60321,23227,761 24,84620,2726,522 5,4215,227Return on equity ("ROE")32 %32 %38 %18 %18 %14 %40 %34 %31 %Year ended December 31,CorporateTotal(in millions, except ratios)202520242023202520242023Total net revenue$7,025$17,394(b)$8,038$185,581$180,593(b)$162,366Total noninterest expense1,8253,994(c)5,60195,64091,797(c)87,172Pre-provision profit5,20013,4002,43789,94188,79675,194Provision for credit losses71017114,21210,6789,320Net income4,52010,6012,82157,04858,47149,552Return on equity ("ROE") NM NMNM17 %18 %17 % Pre-provision profit (a) Net income (b) (b) (c) (c) Pre-provision profit Net income (a)Includes a provision for lending-related commitments of $2.2 billion related to the Apple Card transaction. (b)Included the net gain related to Visa shares of $7.9 billion recorded in the second quarter of 2024. Refer to Note 6 for additional information. (c)Included a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024. Refer to Note 6 for additional information. Refer to Note 32 for further details on total net revenue and total noninterest expense. The following sections provide a comparative discussion of the Firm's results by business segments and Corporate as of or for the years ended December 31, 2025 and 2024, unless otherwise specified. 64JPMorgan Chase & Co./2025 Form 10-K 64JPMorgan Chase & Co./2025 Form 10-K 64JPMorgan Chase & Co./2025 Form 10-K 64 JPMorgan Chase & Co./2025 Form 10-K CONSUMER & COMMUNITY BANKING Consumer & Community Banking offers products and services to consumers and small businesses through bank branches, ATMs, digital (including mobile and online) and telephone banking. CCB is organized into Banking & Wealth Management (including Consumer Banking, Business Banking and J.P. Morgan Wealth Management), Home Lending (including Home Lending Production, Home Lending Servicing and Real Estate Portfolios) and Card Services & Auto. Banking & Wealth Management offers deposit, investment and lending products, cash management, payments and services. Home Lending includes mortgage origination and servicing activities, as well as portfolios consisting of residential mortgages and home equity loans. Card Services issues credit cards and offers payment solutions, travel services, merchant offers and lifestyle benefits. Auto originates and services auto loans and leases.Selected income statement dataYear ended December 31, (in millions, except ratios)202520242023RevenueLending- and deposit-related fees$3,669 $3,387 $3,356 Asset management fees4,669 4,014 3,282 Mortgage fees and related income1,326 1,378 1,175 Card income2,230 3,139 2,532 All other income(a)5,901 4,731 4,773 Noninterest revenue17,795 16,649 15,118 Net interest income58,234 54,858 55,030 Total net revenue76,029 71,507 70,148 Provision for credit losses11,493 (d)9,974 6,899 Noninterest expenseCompensation expense17,669 17,045 15,171 Noncompensation expense(b)22,598 20,991 19,648 Total noninterest expense40,267 38,036 34,819 Income before income tax expense24,269 23,497 28,430 Income tax expense6,024 5,894 7,198 Net income$18,245 $17,603 $21,232 Revenue by businessBanking & Wealth Management$42,862 $40,943 $43,199 Home Lending4,966 5,097 4,140 Card Services & Auto28,201 25,467 22,809 Mortgage fees and related income details:Production revenue622 627 421 Net mortgage servicing revenue(c)704 751 754 Mortgage fees and related income$1,326 $1,378 $1,175 Financial ratiosReturn on equity32 %32 %38 %Overhead ratio53 53 50 (a)Primarily includes operating lease income and commissions and other fees. Operating lease income was $3.8 billion, $2.8 billion and $2.8 billion for the years ended December 31, 2025, 2024 and 2023, respectively.(b)Included depreciation expense on leased assets of $2.4 billion, $1.7 billion and $1.7 billion for the years ended December 31, 2025, 2024 and 2023, respectively.(c)Included MSR risk management results of $118 million, $159 million and $131 million for the years ended December 31, 2025, 2024 and 2023, respectively.(d)Includes a provision for lending-related commitments of $2.2 billion related to the Apple Card transaction. Consumer & Community Banking offers products and services to consumers and small businesses through bank branches, ATMs, digital (including mobile and online) and telephone banking. CCB is organized into Banking & Wealth Management (including Consumer Banking, Business Banking and J.P. Morgan Wealth Management), Home Lending (including Home Lending Production, Home Lending Servicing and Real Estate Portfolios) and Card Services & Auto. Banking & Wealth Management offers deposit, investment and lending products, cash management, payments and services. Home Lending includes mortgage origination and servicing activities, as well as portfolios consisting of residential mortgages and home equity loans. Card Services issues credit cards and offers payment solutions, travel services, merchant offers and lifestyle benefits. Auto originates and services auto loans and leases. Consumer & Community Banking offers products and services to consumers and small businesses through bank branches, ATMs, digital (including mobile and online) and telephone banking. CCB is organized into Banking & Wealth Management (including Consumer Banking, Business Banking and J.P. Morgan Wealth Management), Home Lending (including Home Lending Production, Home Lending Servicing and Real Estate Portfolios) and Card Services & Auto. Banking & Wealth Management offers deposit, investment and lending products, cash management, payments and services. Home Lending includes mortgage origination and servicing activities, as well as portfolios consisting of residential mortgages and home equity loans. Card Services issues credit cards and offers payment solutions, travel services, merchant offers and lifestyle benefits. Auto originates and services auto loans and leases. Consumer & Community Banking offers products and services to consumers and small businesses through bank branches, ATMs, digital (including mobile and online) and telephone banking. CCB is organized into Banking & Wealth Management (including Consumer Banking, Business Banking and J.P. Morgan Wealth Management), Home Lending (including Home Lending Production, Home Lending Servicing and Real Estate Portfolios) and Card Services & Auto. Banking & Wealth Management offers deposit, investment and lending products, cash management, payments and services. Home Lending includes mortgage origination and servicing activities, as well as portfolios consisting of residential mortgages and home equity loans. Card Services issues credit cards and offers payment solutions, travel services, merchant offers and lifestyle benefits. Auto originates and services auto loans and leases. Selected income statement dataYear ended December 31, (in millions, except ratios)202520242023RevenueLending- and deposit-related fees$3,669 $3,387 $3,356 Asset management fees4,669 4,014 3,282 Mortgage fees and related income1,326 1,378 1,175 Card income2,230 3,139 2,532 All other income(a)5,901 4,731 4,773 Noninterest revenue17,795 16,649 15,118 Net interest income58,234 54,858 55,030 Total net revenue76,029 71,507 70,148 Provision for credit losses11,493 (d)9,974 6,899 Noninterest expenseCompensation expense17,669 17,045 15,171 Noncompensation expense(b)22,598 20,991 19,648 Total noninterest expense40,267 38,036 34,819 Income before income tax expense24,269 23,497 28,430 Income tax expense6,024 5,894 7,198 Net income$18,245 $17,603 $21,232 Revenue by businessBanking & Wealth Management$42,862 $40,943 $43,199 Home Lending4,966 5,097 4,140 Card Services & Auto28,201 25,467 22,809 Mortgage fees and related income details:Production revenue622 627 421 Net mortgage servicing revenue(c)704 751 754 Mortgage fees and related income$1,326 $1,378 $1,175 Financial ratiosReturn on equity32 %32 %38 %Overhead ratio53 53 50 (a)Primarily includes operating lease income and commissions and other fees. Operating lease income was $3.8 billion, $2.8 billion and $2.8 billion for the years ended December 31, 2025, 2024 and 2023, respectively.(b)Included depreciation expense on leased assets of $2.4 billion, $1.7 billion and $1.7 billion for the years ended December 31, 2025, 2024 and 2023, respectively.(c)Included MSR risk management results of $118 million, $159 million and $131 million for the years ended December 31, 2025, 2024 and 2023, respectively.(d)Includes a provision for lending-related commitments of $2.2 billion related to the Apple Card transaction. Selected income statement dataYear ended December 31, (in millions, except ratios)202520242023RevenueLending- and deposit-related fees$3,669 $3,387 $3,356 Asset management fees4,669 4,014 3,282 Mortgage fees and related income1,326 1,378 1,175 Card income2,230 3,139 2,532 All other income(a)5,901 4,731 4,773 Noninterest revenue17,795 16,649 15,118 Net interest income58,234 54,858 55,030 Total net revenue76,029 71,507 70,148 Provision for credit losses11,493 (d)9,974 6,899 Noninterest expenseCompensation expense17,669 17,045 15,171 Noncompensation expense(b)22,598 20,991 19,648 Total noninterest expense40,267 38,036 34,819 Income before income tax expense24,269 23,497 28,430 Income tax expense6,024 5,894 7,198 Net income$18,245 $17,603 $21,232 Revenue by businessBanking & Wealth Management$42,862 $40,943 $43,199 Home Lending4,966 5,097 4,140 Card Services & Auto28,201 25,467 22,809 Mortgage fees and related income details:Production revenue622 627 421 Net mortgage servicing revenue(c)704 751 754 Mortgage fees and related income$1,326 $1,378 $1,175 Financial ratiosReturn on equity32 %32 %38 %Overhead ratio53 53 50 Year ended December 31, (in millions, except ratios) All other income(a) (d) Noncompensation expense(b) Net mortgage servicing revenue(c) (a)Primarily includes operating lease income and commissions and other fees. Operating lease income was $3.8 billion, $2.8 billion and $2.8 billion for the years ended December 31, 2025, 2024 and 2023, respectively. (b)Included depreciation expense on leased assets of $2.4 billion, $1.7 billion and $1.7 billion for the years ended December 31, 2025, 2024 and 2023, respectively. (c)Included MSR risk management results of $118 million, $159 million and $131 million for the years ended December 31, 2025, 2024 and 2023, respectively. (d)Includes a provision for lending-related commitments of $2.2 billion related to the Apple Card transaction. JPMorgan Chase & Co./2025 Form 10-K65 JPMorgan Chase & Co./2025 Form 10-K65 JPMorgan Chase & Co./2025 Form 10-K65 JPMorgan Chase & Co./2025 Form 10-K 65 2025 compared with 2024Net income was $18.2 billion, up 4%.Net revenue was $76.0 billion, up 6%.Net interest income was $58.2 billion, up 6%, reflecting:•higher NII in Card Services, predominantly driven by higher revolving balances, and•higher NII in Banking & Wealth Management ("BWM"), driven by higher deposit margin, reflecting the impact of changes in FTP, partially offset by lower average deposit balances.Refer to Business Segment & Corporate Results on page 63 for additional information on FTP.Noninterest revenue was $17.8 billion, up 7%, driven by:•higher auto operating lease income as a result of growth in volume, and•in BWM, higher asset management fees, reflecting higher average market levels and net inflows, as well as higher deposit-related fees as a result of higher transaction volume and new accounts,partially offset by•lower card income, reflecting lower net interchange, as well as an increase in amortization related to new account origination costs, partially offset by higher annual fees. 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 6 for additional information on card income, asset management fees, and deposit-related fees; and Critical Accounting Estimates on pages 154-157 for additional information on the credit card rewards liability. Noninterest expense was $40.3 billion, up 6%, reflecting:•higher noncompensation expense, predominantly driven by higher auto lease depreciation on higher auto operating lease assets, and continued investments in marketing and technology, as well as•higher compensation expense, predominantly for bankers and advisors, and employees in technology.The provision for credit losses was $11.5 billion. Net charge-offs were $8.2 billion, up $319 million, primarily driven by Card Services, reflecting loan growth. The net addition to the allowance for credit losses of $3.2 billion which was driven by $2.2 billion related to the Apple Card transaction, loan growth in Card Services and the impact of changes in the Firm's weighted-average macroeconomic outlook, partially offset by reduced borrower uncertainty.In the prior year, the provision was $10.0 billion, net charge-offs were $7.9 billion and the net addition to the allowance for credit losses was $2.0 billion.Refer to Credit and Investment Risk Management on pages 109-132 and Allowance for Credit Losses on pages 129-131 for a further discussion of the credit portfolios and the allowance for credit losses. 2025 compared with 2024Net income was $18.2 billion, up 4%.Net revenue was $76.0 billion, up 6%.Net interest income was $58.2 billion, up 6%, reflecting:•higher NII in Card Services, predominantly driven by higher revolving balances, and•higher NII in Banking & Wealth Management ("BWM"), driven by higher deposit margin, reflecting the impact of changes in FTP, partially offset by lower average deposit balances.Refer to Business Segment & Corporate Results on page 63 for additional information on FTP.Noninterest revenue was $17.8 billion, up 7%, driven by:•higher auto operating lease income as a result of growth in volume, and•in BWM, higher asset management fees, reflecting higher average market levels and net inflows, as well as higher deposit-related fees as a result of higher transaction volume and new accounts,partially offset by•lower card income, reflecting lower net interchange, as well as an increase in amortization related to new account origination costs, partially offset by higher annual fees. 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 6 for additional information on card income, asset management fees, and deposit-related fees; and Critical Accounting Estimates on pages 154-157 for additional information on the credit card rewards liability. Noninterest expense was $40.3 billion, up 6%, reflecting:•higher noncompensation expense, predominantly driven by higher auto lease depreciation on higher auto operating lease assets, and continued investments in marketing and technology, as well as•higher compensation expense, predominantly for bankers and advisors, and employees in technology. --- ## Modified Risk: Financing activities **Key changes:** - Updated: "•In 2025, cash provided primarily reflected higher deposits, higher securities loaned or sold under repurchase agreements and net proceeds from long- and short-term borrowings, •In 2024, cash provided primarily reflected higher securities loaned or sold under repurchase agreements and net proceeds from long- and short-term borrowings, partially offset by net redemption of preferred stock." - Updated: "* * * Refer to Consolidated Balance Sheets Analysis on pages 55-57, Capital Risk Management on pages 89-99, and Liquidity Risk Management on pages 100-107, and the Consolidated Statements of Cash Flows on page 169 for a further discussion of the activities affecting the Firm's cash flows." **Prior (2025):** The Firm's financing activities include acquiring customer deposits and issuing long-term debt and preferred stock. •In 2024, cash provided primarily reflected higher securities loaned or sold under repurchase agreements and net proceeds from long- and short-term borrowings, partially offset by net redemption of preferred stock. •In 2023, cash used reflected lower deposits, which included the impact of the repayment of the deposits provided to First Republic Bank by the consortium of large U.S. banks that the Firm assumed as part of the First Republic acquisition, partially offset by higher securities loaned under repurchase agreements and net proceeds from long- and short-term borrowings. •For both periods, cash was used for repurchases of common stock and cash dividends on common and preferred stock. * * * Refer to Consolidated Balance Sheets Analysis on pages 63-65, Capital Risk Management on pages 97-107, and Liquidity Risk Management on pages 108-115, and the Consolidated Statements of Cash Flows on page 176 for a further discussion of the activities affecting the Firm's cash flows. 66JPMorgan Chase & Co./2024 Form 10-K 66JPMorgan Chase & Co./2024 Form 10-K 66JPMorgan Chase & Co./2024 Form 10-K 66 JPMorgan Chase & Co./2024 Form 10-K EXPLANATION AND RECONCILIATION OF THE FIRM'S USE OF NON-GAAP FINANCIAL MEASURES EXPLANATION AND RECONCILIATION OF THE FIRM'S USE OF NON-GAAP FINANCIAL MEASURES **Current (2026):** The Firm's financing activities include acquiring customer deposits and issuing long-term debt and preferred stock. •In 2025, cash provided primarily reflected higher deposits, higher securities loaned or sold under repurchase agreements and net proceeds from long- and short-term borrowings, •In 2024, cash provided primarily reflected higher securities loaned or sold under repurchase agreements and net proceeds from long- and short-term borrowings, partially offset by net redemption of preferred stock. •For both periods, cash was used for repurchases of common stock and cash dividends on common and preferred stock. * * * Refer to Consolidated Balance Sheets Analysis on pages 55-57, Capital Risk Management on pages 89-99, and Liquidity Risk Management on pages 100-107, and the Consolidated Statements of Cash Flows on page 169 for a further discussion of the activities affecting the Firm's cash flows. 58JPMorgan Chase & Co./2025 Form 10-K 58JPMorgan Chase & Co./2025 Form 10-K 58JPMorgan Chase & Co./2025 Form 10-K 58 JPMorgan Chase & Co./2025 Form 10-K EXPLANATION AND RECONCILIATION OF THE FIRM'S USE OF NON-GAAP FINANCIAL MEASURES EXPLANATION AND RECONCILIATION OF THE FIRM'S USE OF NON-GAAP FINANCIAL MEASURES --- ## Modified Risk: Consolidated statements of changes in stockholders' equity **Key changes:** - Updated: "Year ended December 31, (in millions, except per share data)202520242023Preferred stockBalance at January 1$20,050 $27,404 $27,404 Issuance 2,995 2,496 - Redemption (3,000)(9,850) - Balance at December 3120,045 20,050 27,404 Common stockBalance at January 1 and December 314,105 4,105 4,105 Additional paid-in capitalBalance at January 190,911 90,128 89,044 Shares issued and commitments to issue common stock for employee share-based compensation awards, and related tax effects220 768 1,084 Other(17)15 - Balance at December 3191,114 90,911 90,128 Retained earningsBalance at January 1376,166 332,901 296,456 Cumulative effect of change in accounting principles - (161)449 Net income57,048 58,471 49,552 Preferred stock dividends(1,099)(1,259)(1,501)Common stock dividends ($5.80, $4.80 and $4.10 per share for 2025, 2024 and 2023, respectively)(16,060)(13,786)(12,055)Balance at December 31416,055 376,166 332,901 Accumulated other comprehensive income/(loss)Balance at January 1(12,456)(10,443)(17,341)Other comprehensive income/(loss), after-tax8,166 (2,013)6,898 Balance at December 31(4,290)(12,456)(10,443)Treasury stock, at costBalance at January 1(134,018)(116,217)(107,336)Repurchase(31,924)(19,007)(9,980)Reissuance1,351 1,206 1,099 Balance at December 31(164,591)(134,018)(116,217)Total stockholders' equity$362,438 $344,758 $327,878 Shares issued and commitments to issue common stock for employee share-based compensation awards, and related tax effects Common stock dividends ($5.80, $4.80 and $4.10 per share for 2025, 2024 and 2023, respectively) Other comprehensive income/(loss), after-tax Effective January 1, 2024, the Firm adopted the Equity Method and Joint Ventures: Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method accounting guidance." - Updated: "168JPMorgan Chase & Co./2025 Form 10-K 168JPMorgan Chase & Co./2025 Form 10-K 168JPMorgan Chase & Co./2025 Form 10-K 168 JPMorgan Chase & Co./2025 Form 10-K" **Prior (2025):** Year ended December 31, (in millions, except per share data)202420232022Preferred stockBalance at January 1$27,404 $27,404 $34,838 Issuance 2,496 - - Redemption (9,850) - (7,434)Balance at December 3120,050 27,404 27,404 Common stockBalance at January 1 and December 314,105 4,105 4,105 Additional paid-in capitalBalance at January 190,128 89,044 88,415 Shares issued and commitments to issue common stock for employee share-based compensation awards, and related tax effects768 1,084 629 Other15 - - Balance at December 3190,911 90,128 89,044 Retained earningsBalance at January 1332,901 296,456 272,268 Cumulative effect of change in accounting principles(161)449 - Net income58,471 49,552 37,676 Preferred stock dividends(1,259)(1,501)(1,595)Common stock dividends ($4.80, $4.10 and $4.00 per share for 2024, 2023 and 2022, respectively)(13,786)(12,055)(11,893)Balance at December 31376,166 332,901 296,456 Accumulated other comprehensive income/(loss)Balance at January 1(10,443)(17,341)(84)Other comprehensive income/(loss), after-tax(2,013)6,898 (17,257)Balance at December 31(12,456)(10,443)(17,341)Treasury stock, at costBalance at January 1(116,217)(107,336)(105,415)Repurchase(19,007)(9,980)(3,122)Reissuance1,206 1,099 1,201 Balance at December 31(134,018)(116,217)(107,336)Total stockholders' equity$344,758 $327,878 $292,332 Shares issued and commitments to issue common stock for employee share-based compensation awards, and related tax effects Common stock dividends ($4.80, $4.10 and $4.00 per share for 2024, 2023 and 2022, respectively) Effective January 1, 2024, the Firm adopted the Equity Method and Joint Ventures: Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method accounting guidance. Effective January 1, 2023, the Firm adopted the Financial Instruments - Credit Losses: Troubled Debt Restructurings, and Derivatives and Hedging: Fair Value Hedging - Portfolio Layer Method accounting guidance. Refer to Note 1 for further information. The Notes to Consolidated Financial Statements are an integral part of these statements. JPMorgan Chase & Co./2024 Form 10-K175 JPMorgan Chase & Co./2024 Form 10-K175 JPMorgan Chase & Co./2024 Form 10-K175 JPMorgan Chase & Co./2024 Form 10-K 175 **Current (2026):** Year ended December 31, (in millions, except per share data)202520242023Preferred stockBalance at January 1$20,050 $27,404 $27,404 Issuance 2,995 2,496 - Redemption (3,000)(9,850) - Balance at December 3120,045 20,050 27,404 Common stockBalance at January 1 and December 314,105 4,105 4,105 Additional paid-in capitalBalance at January 190,911 90,128 89,044 Shares issued and commitments to issue common stock for employee share-based compensation awards, and related tax effects220 768 1,084 Other(17)15 - Balance at December 3191,114 90,911 90,128 Retained earningsBalance at January 1376,166 332,901 296,456 Cumulative effect of change in accounting principles - (161)449 Net income57,048 58,471 49,552 Preferred stock dividends(1,099)(1,259)(1,501)Common stock dividends ($5.80, $4.80 and $4.10 per share for 2025, 2024 and 2023, respectively)(16,060)(13,786)(12,055)Balance at December 31416,055 376,166 332,901 Accumulated other comprehensive income/(loss)Balance at January 1(12,456)(10,443)(17,341)Other comprehensive income/(loss), after-tax8,166 (2,013)6,898 Balance at December 31(4,290)(12,456)(10,443)Treasury stock, at costBalance at January 1(134,018)(116,217)(107,336)Repurchase(31,924)(19,007)(9,980)Reissuance1,351 1,206 1,099 Balance at December 31(164,591)(134,018)(116,217)Total stockholders' equity$362,438 $344,758 $327,878 Shares issued and commitments to issue common stock for employee share-based compensation awards, and related tax effects Common stock dividends ($5.80, $4.80 and $4.10 per share for 2025, 2024 and 2023, respectively) Other comprehensive income/(loss), after-tax Effective January 1, 2024, the Firm adopted the Equity Method and Joint Ventures: Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method accounting guidance. Effective January 1, 2023, the Firm adopted the Financial Instruments - Credit Losses: Troubled Debt Restructurings, and Derivatives and Hedging: Fair Value Hedging - Portfolio Layer Method accounting guidance. Refer to Note 1 for further information. The Notes to Consolidated Financial Statements are an integral part of these statements. 168JPMorgan Chase & Co./2025 Form 10-K 168JPMorgan Chase & Co./2025 Form 10-K 168JPMorgan Chase & Co./2025 Form 10-K 168 JPMorgan Chase & Co./2025 Form 10-K --- ## Modified Risk: Consolidated statements of cash flows **Key changes:** - Updated: "Year ended December 31, (in millions)202520242023Operating activitiesNet income$57,048 $58,471 $49,552 Adjustments to reconcile net income to net cash provided by operating activities:Provision for credit losses14,212 10,678 9,320 Depreciation and amortization8,821 7,938 7,512 Deferred tax (benefit)/expense5,611 2,004 (4,534)Estimated bargain purchase gain associated with the First Republic acquisition - (103)(2,775)Initial gain on the Visa share exchange - (7,990) - Other1,309 1,985 4,301 Originations and purchases of loans held-for-sale(260,772)(212,238)(115,245)Proceeds from sales, securitizations and paydowns of loans held-for-sale235,232 205,303 116,430 Net change in:Trading assets(156,461)(95,729)(74,091)Securities borrowed(66,648)(18,762)(14,902)Accrued interest and accounts receivable(11,514)5,735 19,928 Other assets(12,582)(7,650)32,970 Trading liabilities23,134 2,276 5,315 Accounts payable and other liabilities5,270 (90)(25,388)Other operating adjustments9,558 6,160 4,581 Net cash (used in)/provided by operating activities(147,782)(42,012)12,974 Investing activitiesNet change in:Federal funds sold and securities purchased under resale agreements(41,264)(18,706)39,740 Held-to-maturity securities:Proceeds from paydowns and maturities54,791 99,363 53,056 Purchases(5,432)(4,709)(4,141)Available-for-sale securities:Proceeds from paydowns and maturities37,414 38,499 53,744 Proceeds from sales141,295 104,625 108,434 Purchases(308,772)(352,712)(115,499)Proceeds from sales and securitizations of loans held-for-investment57,565 57,921 47,312 Other changes in loans, net(188,497)(83,176)(88,343)Net cash used in First Republic Acquisition - (2,362)(9,920)All other investing activities, net(12,665)(2,146)(16,740)Net cash (used in)/provided by investing activities(265,565)(163,403)67,643 Financing activitiesNet change in:Deposits153,168 3,299 (32,196)Federal funds purchased and securities loaned or sold under repurchase agreements145,535 80,288 13,801 Short-term borrowings9,422 7,439 (1,934)Beneficial interests issued by consolidated VIEs(622)1,543 9,029 Proceeds from long-term borrowings120,761 109,915 75,417 Payments of long-term borrowings(108,100)(96,605)(64,880)Proceeds from issuance of preferred stock3,000 2,500 - Redemption of preferred stock(3,000)(9,850) - Treasury stock repurchased(31,591)(18,830)(9,824)Dividends paid(16,625)(14,783)(13,463)All other financing activities, net(2,415)(1,469)(1,521)Net cash provided by/(used in) financing activities269,533 63,447 (25,571)Effect of exchange rate changes on cash and due from banks and deposits with banks17,835 (12,866)1,871 Net increase/(decrease) in cash and due from banks and deposits with banks(125,979)(154,834)56,917 Cash and due from banks and deposits with banks at the beginning of the period469,317 624,151 567,234 Cash and due from banks and deposits with banks at the end of the period$343,338 $469,317 $624,151 Cash interest paid$96,436 $99,642 $77,114 Cash income taxes paid, net5,309 11,715 9,908 Adjustments to reconcile net income to net cash provided by operating activities: Estimated bargain purchase gain associated with the First Republic acquisition Initial gain on the Visa share exchange" **Prior (2025):** Year ended December 31, (in millions)202420232022Operating activitiesNet income$58,471 $49,552 $37,676 Adjustments to reconcile net income to net cash provided by operating activities:Provision for credit losses10,678 9,320 6,389 Depreciation and amortization7,938 7,512 7,051 Deferred tax (benefit)/expense2,004 (4,534)(2,738)Estimated bargain purchase gain associated with the First Republic acquisition(103)(2,775) - Initial gain on the Visa share exchange(7,990) - - Other1,985 4,301 5,174 Originations and purchases of loans held-for-sale(212,238)(115,245)(149,167)Proceeds from sales, securitizations and paydowns of loans held-for-sale205,303 116,430 167,709 Net change in:Trading assets(95,729)(74,091)(31,449)Securities borrowed(18,762)(14,902)20,203 Accrued interest and accounts receivable5,735 19,928 (22,970)Other assets(7,650)32,970 (2,882)Trading liabilities2,276 5,315 11,170 Accounts payable and other liabilities(90)(25,388)58,614 Other operating adjustments6,160 4,581 2,339 Net cash (used in)/provided by operating activities(42,012)12,974 107,119 Investing activitiesNet change in:Federal funds sold and securities purchased under resale agreements(18,706)39,740 (54,278)Held-to-maturity securities:Proceeds from paydowns and maturities99,363 53,056 48,626 Purchases(4,709)(4,141)(33,676)Available-for-sale securities:Proceeds from paydowns and maturities38,499 53,744 39,159 Proceeds from sales104,625 108,434 84,616 Purchases(352,712)(115,499)(126,258)Proceeds from sales and securitizations of loans held-for-investment57,921 47,312 44,892 Other changes in loans, net(83,176)(88,343)(128,968)Net cash used in First Republic Acquisition(2,362)(9,920) - All other investing activities, net(2,146)(16,740)(11,932)Net cash (used in)/provided by investing activities(163,403)67,643 (137,819)Financing activitiesNet change in:Deposits3,299 (32,196)(136,895)Federal funds purchased and securities loaned or sold under repurchase agreements80,288 13,801 8,455 Short-term borrowings7,439 (1,934)(8,984)Beneficial interests issued by consolidated VIEs1,543 9,029 2,205 Proceeds from long-term borrowings109,915 75,417 78,442 Payments of long-term borrowings(96,605)(64,880)(45,556)Proceeds from issuance of preferred stock2,500 - - Redemption of preferred stock(9,850) - (7,434)Treasury stock repurchased(18,830)(9,824)(3,162)Dividends paid(14,783)(13,463)(13,562)All other financing activities, net(1,469)(1,521)234 Net cash provided by/(used in) financing activities63,447 (25,571)(126,257)Effect of exchange rate changes on cash and due from banks and deposits with banks(12,866)1,871 (16,643)Net increase/(decrease) in cash and due from banks and deposits with banks(154,834)56,917 (173,600)Cash and due from banks and deposits with banks at the beginning of the period624,151 567,234 740,834 Cash and due from banks and deposits with banks at the end of the period$469,317 $624,151 $567,234 Cash interest paid$99,642 $77,114 $23,143 Cash income taxes paid, net11,715 9,908 4,355 Adjustments to reconcile net income to net cash provided by operating activities: Estimated bargain purchase gain associated with the First Republic acquisition Initial gain on the Visa share exchange **Current (2026):** Year ended December 31, (in millions)202520242023Operating activitiesNet income$57,048 $58,471 $49,552 Adjustments to reconcile net income to net cash provided by operating activities:Provision for credit losses14,212 10,678 9,320 Depreciation and amortization8,821 7,938 7,512 Deferred tax (benefit)/expense5,611 2,004 (4,534)Estimated bargain purchase gain associated with the First Republic acquisition - (103)(2,775)Initial gain on the Visa share exchange - (7,990) - Other1,309 1,985 4,301 Originations and purchases of loans held-for-sale(260,772)(212,238)(115,245)Proceeds from sales, securitizations and paydowns of loans held-for-sale235,232 205,303 116,430 Net change in:Trading assets(156,461)(95,729)(74,091)Securities borrowed(66,648)(18,762)(14,902)Accrued interest and accounts receivable(11,514)5,735 19,928 Other assets(12,582)(7,650)32,970 Trading liabilities23,134 2,276 5,315 Accounts payable and other liabilities5,270 (90)(25,388)Other operating adjustments9,558 6,160 4,581 Net cash (used in)/provided by operating activities(147,782)(42,012)12,974 Investing activitiesNet change in:Federal funds sold and securities purchased under resale agreements(41,264)(18,706)39,740 Held-to-maturity securities:Proceeds from paydowns and maturities54,791 99,363 53,056 Purchases(5,432)(4,709)(4,141)Available-for-sale securities:Proceeds from paydowns and maturities37,414 38,499 53,744 Proceeds from sales141,295 104,625 108,434 Purchases(308,772)(352,712)(115,499)Proceeds from sales and securitizations of loans held-for-investment57,565 57,921 47,312 Other changes in loans, net(188,497)(83,176)(88,343)Net cash used in First Republic Acquisition - (2,362)(9,920)All other investing activities, net(12,665)(2,146)(16,740)Net cash (used in)/provided by investing activities(265,565)(163,403)67,643 Financing activitiesNet change in:Deposits153,168 3,299 (32,196)Federal funds purchased and securities loaned or sold under repurchase agreements145,535 80,288 13,801 Short-term borrowings9,422 7,439 (1,934)Beneficial interests issued by consolidated VIEs(622)1,543 9,029 Proceeds from long-term borrowings120,761 109,915 75,417 Payments of long-term borrowings(108,100)(96,605)(64,880)Proceeds from issuance of preferred stock3,000 2,500 - Redemption of preferred stock(3,000)(9,850) - Treasury stock repurchased(31,591)(18,830)(9,824)Dividends paid(16,625)(14,783)(13,463)All other financing activities, net(2,415)(1,469)(1,521)Net cash provided by/(used in) financing activities269,533 63,447 (25,571)Effect of exchange rate changes on cash and due from banks and deposits with banks17,835 (12,866)1,871 Net increase/(decrease) in cash and due from banks and deposits with banks(125,979)(154,834)56,917 Cash and due from banks and deposits with banks at the beginning of the period469,317 624,151 567,234 Cash and due from banks and deposits with banks at the end of the period$343,338 $469,317 $624,151 Cash interest paid$96,436 $99,642 $77,114 Cash income taxes paid, net5,309 11,715 9,908 Adjustments to reconcile net income to net cash provided by operating activities: Estimated bargain purchase gain associated with the First Republic acquisition Initial gain on the Visa share exchange --- ## Modified Risk: Adverse economic and market events and conditions could negatively affect JPMorganChase's results of operations and investment and market-making positions. **Key changes:** - Updated: "JPMorganChase's results of operations could be negatively affected by the occurrence or persistence of adverse changes in any of the following: •the U.S." **Prior (2025):** JPMorganChase's results of operations can be negatively affected by adverse changes in any of the following: •investor, consumer and business sentiment •events that reduce confidence in the financial markets •inflation, deflation or recession •high unemployment or, conversely, a tightening labor market •the availability and cost of capital, liquidity and credit •levels and volatility of interest rates, credit spreads and market prices for currencies, debt and equity securities and commodities, as well as the duration of any such changes •the economic effects of an outbreak or escalation of war, hostilities, terrorism or other geopolitical instabilities, cyber attacks, climate change, natural disasters, severe weather conditions, health emergencies, the spread of infectious diseases, epidemics or pandemics or other extraordinary events beyond JPMorganChase's control, and •the state of the U.S. and global economies. All of these are affected by global economic, market and political events and conditions, including monetary policies and actions taken by central banks or other governmental authorities, as well as by the regulatory environment.In addition, JPMorganChase's investment portfolio and market-making businesses can suffer losses due to unanticipated market events, including:•severe declines in asset values•unexpected credit events•unforeseen events or conditions that may cause previously uncorrelated factors to become correlated (and vice versa)•the inability to effectively hedge risks related to market-making and investment portfolio positions, or•other market risks that may not have been appropriately taken into account in the development, structuring or pricing of a financial instrument.If JPMorganChase experiences significant losses in its investment portfolio or from market-making activities, this could reduce JPMorganChase's profitability and its liquidity and capital levels, and thereby constrain the growth of its businesses.JPMorganChase's consumer businesses can be negatively affected by adverse economic conditions and governmental policies.JPMorganChase's consumer businesses are particularly affected by U.S. and global economic conditions, including:•personal and household income distribution•unemployment or underemployment•prolonged periods of exceptionally high or low interest rates, or significant changes to interest rates•changes in the value of collateral such as residential real estate and vehicles•changes in housing prices•the level of inflation and its effect on prices for goods and services•consumer and small business confidence levels, and•changes in consumer spending or in the level of consumer debt.Heightened levels of unemployment or underemployment that result in reduced personal and household income could negatively affect consumer credit performance to the extent that consumers are less able to service their debts. In addition, sustained low growth, low or negative interest rates, inflationary pressures or recessionary conditions could diminish customer demand for the products and services offered by JPMorganChase's consumer businesses. All of these are affected by global economic, market and political events and conditions, including monetary policies and actions taken by central banks or other governmental authorities, as well as by the regulatory environment. In addition, JPMorganChase's investment portfolio and market-making businesses can suffer losses due to unanticipated market events, including: •severe declines in asset values •unexpected credit events •unforeseen events or conditions that may cause previously uncorrelated factors to become correlated (and vice versa) •the inability to effectively hedge risks related to market-making and investment portfolio positions, or •other market risks that may not have been appropriately taken into account in the development, structuring or pricing of a financial instrument. If JPMorganChase experiences significant losses in its investment portfolio or from market-making activities, this could reduce JPMorganChase's profitability and its liquidity and capital levels, and thereby constrain the growth of its businesses. **Current (2026):** JPMorganChase's results of operations could be negatively affected by the occurrence or persistence of adverse changes in any of the following: •the U.S. and global economies •investor, consumer and business sentiment, or confidence in the financial markets •inflation, deflation, recession or employment •the availability and cost of capital, liquidity and credit •levels and volatility of interest rates, credit spreads or market prices of currencies, securities and 14 14 14 14 commodities, and the duration of any such changes, and •economic and geopolitical effects of extraordinary events beyond JPMorganChase's control.The above factors could be affected by global economic, market and political events and conditions, including the regulatory environment, monetary policies, trade policies, and actions taken by central banks or governmental authorities.In addition, JPMorganChase's investment portfolio and market-making businesses could suffer losses due to unanticipated market events and conditions, including:•severe declines in asset values•unexpected credit events, credit rating downgrades and large counterparty losses•disruption of trade routes and supply chains globally•events or conditions that cause previously uncorrelated market factors to become correlated (and vice versa)•the inability to effectively hedge risks related to market-making and investment portfolio positions, or•other market risks that may not have been adequately considered when developing, structuring or pricing a financial instrument.Any significant losses in JPMorganChase's investment portfolio or from market-making activities could reduce its profitability and its liquidity and capital levels, and thereby constrain the growth of its businesses.JPMorganChase's consumer businesses could be negatively affected by adverse economic conditions and adverse impacts of governmental policies.JPMorganChase's consumer businesses are particularly affected by U.S. and global economic conditions, including:•the distribution of personal and household income •unemployment or underemployment•changes in housing prices•the level of inflation and its effect on prices for goods and services•consumer and small business confidence levels•prolonged periods of exceptionally high or low interest rates, or significant changes to interest rates•changes in the value of collateral such as residential real estate and vehicles, and•changes in consumer spending or in the level of consumer debt.High unemployment levels could reduce personal and household income, which could degrade consumer credit performance if consumers struggle to service their debts. Adverse economic conditions could also lead to an increase in delinquencies, an increase in the allowance for credit losses or higher net charge-offs, which could reduce JPMorganChase's earnings. These consequences could be significantly worse if high levels of consumer debt, such as outstanding student loans, impair the ability of customers to pay their other consumer loan obligations, or in certain geographies where declining industrial or manufacturing activity has resulted in or could result in higher levels of unemployment. In addition, JPMorganChase's earnings from its consumer businesses could be adversely affected if customer demand for the products and services offered by its consumer businesses is diminished by sustained low growth, low or negative interest rates, inflationary pressures, or recessionary conditions. Furthermore, governmental policies and actions, including those relating to pricing of products, taxation, medical insurance, education, immigration, and housing, or those that impact employment status, could reduce consumer disposable income and decrease JPMorganChase's earnings from its consumer businesses. Unfavorable market and economic conditions could adversely affect JPMorganChase's wholesale businesses.Market and economic factors can affect the volume of transactions and advisory engagements for which JPMorganChase is engaged and the related revenue from those activities. These factors could also influence the willingness of other financial institutions and investors to participate in capital markets transactions that JPMorganChase manages.Furthermore, any significant and sustained deterioration in market conditions could reduce fee revenue due to lower transaction volumes, including when clients are unwilling or unable to refinance their outstanding debt obligations. Additionally, the profitability of JPMorganChase's capital markets activities could be impacted if it needs to dispose of portions of credit commitments at a loss or hold larger residual positions in credit commitments that cannot be sold at favorable prices. The fees that JPMorganChase earns from managing client assets or holding assets under custody for clients could be diminished by declining asset values or other adverse macroeconomic conditions. For example, higher interest rates or a market downturn could affect the valuation of client assets that JPMorganChase manages or holds under custody, resulting in lower revenue from fees that are based on the amount of assets under management or custody. Similarly, adverse macroeconomic or market conditions could prompt outflows from JPMorganChase funds or accounts, or cause clients to invest in products that generate lower revenue. Substantial and unexpected withdrawals from a JPMorganChase fund could also hamper the investment performance of the fund, particularly if the outflows create the need for the fund to dispose of fund assets at disadvantageous times or commodities, and the duration of any such changes, and •economic and geopolitical effects of extraordinary events beyond JPMorganChase's control.The above factors could be affected by global economic, market and political events and conditions, including the regulatory environment, monetary policies, trade policies, and actions taken by central banks or governmental authorities.In addition, JPMorganChase's investment portfolio and market-making businesses could suffer losses due to unanticipated market events and conditions, including:•severe declines in asset values•unexpected credit events, credit rating downgrades and large counterparty losses•disruption of trade routes and supply chains globally•events or conditions that cause previously uncorrelated market factors to become correlated (and vice versa)•the inability to effectively hedge risks related to market-making and investment portfolio positions, or•other market risks that may not have been adequately considered when developing, structuring or pricing a financial instrument.Any significant losses in JPMorganChase's investment portfolio or from market-making activities could reduce its profitability and its liquidity and capital levels, and thereby constrain the growth of its businesses.JPMorganChase's consumer businesses could be negatively affected by adverse economic conditions and adverse impacts of governmental policies.JPMorganChase's consumer businesses are particularly affected by U.S. and global economic conditions, including:•the distribution of personal and household income •unemployment or underemployment•changes in housing prices•the level of inflation and its effect on prices for goods and services•consumer and small business confidence levels•prolonged periods of exceptionally high or low interest rates, or significant changes to interest rates•changes in the value of collateral such as residential real estate and vehicles, and•changes in consumer spending or in the level of consumer debt.High unemployment levels could reduce personal and household income, which could degrade consumer credit performance if consumers struggle to service their debts. Adverse economic conditions could also lead to an increase in delinquencies, an increase in the allowance for credit losses or higher net charge-offs, commodities, and the duration of any such changes, and •economic and geopolitical effects of extraordinary events beyond JPMorganChase's control. The above factors could be affected by global economic, market and political events and conditions, including the regulatory environment, monetary policies, trade policies, and actions taken by central banks or governmental authorities. In addition, JPMorganChase's investment portfolio and market-making businesses could suffer losses due to unanticipated market events and conditions, including: •severe declines in asset values •unexpected credit events, credit rating downgrades and large counterparty losses •disruption of trade routes and supply chains globally •events or conditions that cause previously uncorrelated market factors to become correlated (and vice versa) •the inability to effectively hedge risks related to market-making and investment portfolio positions, or •other market risks that may not have been adequately considered when developing, structuring or pricing a financial instrument. Any significant losses in JPMorganChase's investment portfolio or from market-making activities could reduce its profitability and its liquidity and capital levels, and thereby constrain the growth of its businesses. --- ## Modified Risk: Selected capital and RWA data **Key changes:** - Updated: "The following tables present the Firm's risk-based capital metrics under both the Standardized and Advanced approaches and leverage-based capital metrics." - Updated: "StandardizedAdvanced(in millions, except ratios)December 31, 2025December 31, 2024Capital ratio requirements(d)December 31, 2025December 31, 2024Capital ratio requirements(d)Risk-based capital metrics:(a)CET1 capital$288,469 $275,513 $288,469 $275,513 Tier 1 capital307,630 294,881 307,630 294,881 Total capital343,843 325,589 328,962 (e)311,898 (e)Risk-weighted assets1,981,692 (b)1,757,460 2,045,249 (b)(e)1,740,429 (e)CET1 capital ratio14.6 %(c)15.7 %11.5 %14.1 %(c)15.8 %11.5 %Tier 1 capital ratio15.5 (c)16.8 13.0 15.0 (c)16.9 13.0 Total capital ratio17.4 (c)18.5 15.0 16.1 (c)17.9 15.0 (in millions, except ratios)" **Prior (2025):** The following tables present the Firm's risk-based capital metrics under both the Basel III Standardized and Advanced approaches and leverage-based capital metrics. Refer to Note 27 for JPMorgan Chase Bank, N.A.'s risk-based and leverage-based capital metrics. First Republic Bank was not subject to Advanced approach regulatory capital requirements. As a result, for certain exposures associated with the First Republic acquisition, Advanced RWA and any impact on Advanced Total capital is calculated under the Standardized approach as permitted by the transition provisions in the U.S. capital rules. Refer to Note 34 for additional information on the First Republic acquisition. StandardizedAdvanced(in millions, except ratios)December 31, 2024December 31, 2023Capital ratio requirements(b)December 31, 2024December 31, 2023Capital ratio requirements(b)Risk-based capital metrics:(a)CET1 capital$275,513 $250,585 $275,513 $250,585 Tier 1 capital294,881 277,306 294,881 277,306 Total capital325,589 308,497 311,898 (c)295,417 (c)Risk-weighted assets1,757,460 1,671,995 1,740,429 (c)1,669,156 (c)CET1 capital ratio15.7 %15.0 %12.3 %15.8 %15.0 %11.5 %Tier 1 capital ratio16.8 16.6 13.8 16.9 16.6 13.0 Total capital ratio18.5 18.5 15.8 17.9 17.7 15.0 (in millions, except ratios) **Current (2026):** The following tables present the Firm's risk-based capital metrics under both the Standardized and Advanced approaches and leverage-based capital metrics. Refer to Note 27 for JPMorgan Chase Bank, N.A.'s risk-based and leverage-based capital metrics. First Republic Bank was not subject to Advanced approach regulatory capital requirements. As a result, for certain exposures associated with the First Republic acquisition, Advanced RWA and any impact on Advanced Total capital is calculated under the Standardized approach as permitted by the transition provisions in the U.S. capital rules. Refer to Note 34 for additional information on the First Republic acquisition. StandardizedAdvanced(in millions, except ratios)December 31, 2025December 31, 2024Capital ratio requirements(d)December 31, 2025December 31, 2024Capital ratio requirements(d)Risk-based capital metrics:(a)CET1 capital$288,469 $275,513 $288,469 $275,513 Tier 1 capital307,630 294,881 307,630 294,881 Total capital343,843 325,589 328,962 (e)311,898 (e)Risk-weighted assets1,981,692 (b)1,757,460 2,045,249 (b)(e)1,740,429 (e)CET1 capital ratio14.6 %(c)15.7 %11.5 %14.1 %(c)15.8 %11.5 %Tier 1 capital ratio15.5 (c)16.8 13.0 15.0 (c)16.9 13.0 Total capital ratio17.4 (c)18.5 15.0 16.1 (c)17.9 15.0 (in millions, except ratios) --- ## Modified Risk: Total net revenue(a) **Key changes:** - Updated: "JPMorgan Chase & Co./2025 Form 10-K79 JPMorgan Chase & Co./2025 Form 10-K79 JPMorgan Chase & Co./2025 Form 10-K79 JPMorgan Chase & Co./2025 Form 10-K 79 CORPORATE CORPORATE Corporate consists of Treasury and Chief Investment Office ("CIO") and Other Corporate." - Updated: "The major Other Corporate functions include Real Estate, Technology, Legal, Corporate Finance, Human Resources, Internal Audit, Risk Management, Compliance, Control Management, Corporate Responsibility and various Other Corporate groups.Selected income statement and balance sheet dataAs of or for the year ended December 31,(in millions, except employees)202520242023RevenuePrincipal transactions$(339)$152 $302 Investment securities losses(58)(1,020)(3,180)All other income1,308 8,476 (f)3,010 (h)Noninterest revenue911 7,608 132 Net interest income6,114 9,786 7,906 Total net revenue(a)7,025 17,394 8,038 Provision for credit losses7 10 171 Noninterest expense(b)1,825 3,994 (g)5,601 Income before income tax expense5,193 13,390 2,266 Income tax expense/(benefit)673 (d)2,789 (555)(i)Net income$4,520 $10,601 $2,821 Total net revenueTreasury and CIO6,501 9,638 6,072 Other Corporate524 7,756 1,966 Total net revenue$7,025 $17,394 $8,038 Net income/(loss)Treasury and CIO4,565 7,013 4,206 Other Corporate(b)(45)3,588 (1,385)Total net income$4,520 $10,601 $2,821 Total assets (period-end)$1,329,632 $1,323,967 $1,348,437 Loans (period-end)2,941 1,964 1,924 Deposits(c)35,874 27,581 21,826 Employees50,031 (e)49,610 47,530 (a)Included taxable-equivalent adjustments, predominantly driven by tax-exempt income from municipal bonds, of $154 million, $182 million and $211 million for the years ended December 31, 2025, 2024 and 2023, respectively." - Updated: "The major Other Corporate functions include Real Estate, Technology, Legal, Corporate Finance, Human Resources, Internal Audit, Risk Management, Compliance, Control Management, Corporate Responsibility and various Other Corporate groups.Selected income statement and balance sheet dataAs of or for the year ended December 31,(in millions, except employees)202520242023RevenuePrincipal transactions$(339)$152 $302 Investment securities losses(58)(1,020)(3,180)All other income1,308 8,476 (f)3,010 (h)Noninterest revenue911 7,608 132 Net interest income6,114 9,786 7,906 Total net revenue(a)7,025 17,394 8,038 Provision for credit losses7 10 171 Noninterest expense(b)1,825 3,994 (g)5,601 Income before income tax expense5,193 13,390 2,266 Income tax expense/(benefit)673 (d)2,789 (555)(i)Net income$4,520 $10,601 $2,821 Total net revenueTreasury and CIO6,501 9,638 6,072 Other Corporate524 7,756 1,966 Total net revenue$7,025 $17,394 $8,038 Net income/(loss)Treasury and CIO4,565 7,013 4,206 Other Corporate(b)(45)3,588 (1,385)Total net income$4,520 $10,601 $2,821 Total assets (period-end)$1,329,632 $1,323,967 $1,348,437 Loans (period-end)2,941 1,964 1,924 Deposits(c)35,874 27,581 21,826 Employees50,031 (e)49,610 47,530 (a)Included taxable-equivalent adjustments, predominantly driven by tax-exempt income from municipal bonds, of $154 million, Corporate consists of Treasury and Chief Investment Office ("CIO") and Other Corporate." **Prior (2025):** (a)Regional revenue is based on the domicile of the client. JPMorgan Chase & Co./2024 Form 10-K87 JPMorgan Chase & Co./2024 Form 10-K87 JPMorgan Chase & Co./2024 Form 10-K87 JPMorgan Chase & Co./2024 Form 10-K 87 CORPORATE CORPORATE Corporate consists of Treasury and Chief Investment Office ("CIO") and Other Corporate. Treasury and CIO is predominantly responsible for measuring, monitoring, reporting and managing the Firm's liquidity, funding, capital, structural interest rate and foreign exchange risks. Other Corporate includes staff functions and expense that is centrally managed as well as certain Firm initiatives and activities not solely aligned to a specific LOB. The major Other Corporate functions include Real Estate, Technology, Legal, Corporate Finance, Human Resources, Internal Audit, Risk Management, Compliance, Control Management, Corporate Responsibility and various Other Corporate groups.Selected income statement and balance sheet dataYear ended December 31,(in millions, except employees)202420232022RevenuePrincipal transactions$152 $302 $(227)Investment securities losses(1,020)(3,180)(2,380)All other income8,476 (c)3,010 (f)809 Noninterest revenue7,608 132 (1,798)Net interest income9,786 7,906 1,878 Total net revenue(a)17,394 8,038 80 Provision for credit losses10 171 22 Noninterest expense3,994 (d)(e)5,601 (e)(g)1,034 Income/(loss) before income tax expense/(benefit)13,390 2,266 (976)Income tax expense/(benefit)2,789 (555)(h)(233)Net income/(loss)$10,601 $2,821 $(743)Total net revenueTreasury and CIO9,638 6,072 (439)Other Corporate7,756 1,966 519 Total net revenue$17,394 $8,038 $80 Net income/(loss)Treasury and CIO7,013 4,206 (197)Other Corporate3,588 (e)(1,385)(e)(546)Total net income/(loss)$10,601 $2,821 $(743)Total assets (period-end)$1,323,967 $1,348,437 $1,328,219 Loans (period-end)1,964 1,924 2,181 Deposits(b)27,581 21,826 14,203 Employees49,610 47,530 44,196 (a)Included tax-equivalent adjustments, predominantly driven by tax-exempt income from municipal bonds, of $182 million, $211 million and $235 million for the years ended December 31, 2024, 2023 and 2022, respectively. (b)Predominantly relates to the Firm's international consumer initiatives.(c)Included the net gain related to Visa shares of $7.9 billion recorded in the second quarter of 2024. Refer to Notes 2 and 6 for additional information.(d)Included a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024. Refer to Notes 2 and 6 for additional information.(e)The first quarter of 2024 included an increase of $725 million to the FDIC special assessment reflecting the FDIC's revised estimate of Deposit Insurance Fund losses. The fourth quarter of 2023 included the $2.9 billion FDIC special assessment.(f)Included the estimated bargain purchase gain of $2.8 billion for the year ended December 31, 2023 associated with the First Republic acquisition. Refer to Notes 6 and 34 for additional information.(g)In the second quarter of 2023, substantially all of the expense associated with First Republic was reported in Corporate. Commencing in the third quarter of 2023, the expense was aligned to the appropriate LOBs.(h)Income taxes associated with the First Republic acquisition were reflected in the estimated bargain purchase gain. Corporate consists of Treasury and Chief Investment Office ("CIO") and Other Corporate. Treasury and CIO is predominantly responsible for measuring, monitoring, reporting and managing the Firm's liquidity, funding, capital, structural interest rate and foreign exchange risks. Other Corporate includes staff functions and expense that is centrally managed as well as certain Firm initiatives and activities not solely aligned to a specific LOB. The major Other Corporate functions include Real Estate, Technology, Legal, Corporate Finance, Human Resources, Internal Audit, Risk Management, Compliance, Control Management, Corporate Responsibility and various Other Corporate groups.Selected income statement and balance sheet dataYear ended December 31,(in millions, except employees)202420232022RevenuePrincipal transactions$152 $302 $(227)Investment securities losses(1,020)(3,180)(2,380)All other income8,476 (c)3,010 (f)809 Noninterest revenue7,608 132 (1,798)Net interest income9,786 7,906 1,878 Total net revenue(a)17,394 8,038 80 Provision for credit losses10 171 22 Noninterest expense3,994 (d)(e)5,601 (e)(g)1,034 Income/(loss) before income tax expense/(benefit)13,390 2,266 (976)Income tax expense/(benefit)2,789 (555)(h)(233)Net income/(loss)$10,601 $2,821 $(743)Total net revenueTreasury and CIO9,638 6,072 (439)Other Corporate7,756 1,966 519 Total net revenue$17,394 $8,038 $80 Net income/(loss)Treasury and CIO7,013 4,206 (197)Other Corporate3,588 (e)(1,385)(e)(546)Total net income/(loss)$10,601 $2,821 $(743)Total assets (period-end)$1,323,967 $1,348,437 $1,328,219 Loans (period-end)1,964 1,924 2,181 Deposits(b)27,581 21,826 14,203 Employees49,610 47,530 44,196 (a)Included tax-equivalent adjustments, predominantly driven by tax-exempt income from municipal bonds, of $182 million, $211 Corporate consists of Treasury and Chief Investment Office ("CIO") and Other Corporate. Treasury and CIO is predominantly responsible for measuring, monitoring, reporting and managing the Firm's liquidity, funding, capital, structural interest rate and foreign exchange risks. Other Corporate includes staff functions and expense that is centrally managed as well as certain Firm initiatives and activities not solely aligned to a specific LOB. The major Other Corporate functions include Real Estate, Technology, Legal, Corporate Finance, Human Resources, Internal Audit, Risk Management, Compliance, Control Management, Corporate Responsibility and various Other Corporate groups. **Current (2026):** (a)Regional revenue is based on the domicile of the client. JPMorgan Chase & Co./2025 Form 10-K79 JPMorgan Chase & Co./2025 Form 10-K79 JPMorgan Chase & Co./2025 Form 10-K79 JPMorgan Chase & Co./2025 Form 10-K 79 CORPORATE CORPORATE Corporate consists of Treasury and Chief Investment Office ("CIO") and Other Corporate. Treasury and CIO is predominantly responsible for measuring, monitoring, reporting and managing the Firm's liquidity, funding, capital, structural interest rate and foreign exchange risks. Other Corporate includes staff functions and expense that is centrally managed as well as certain Firm initiatives and activities not solely aligned to a specific LOB. The major Other Corporate functions include Real Estate, Technology, Legal, Corporate Finance, Human Resources, Internal Audit, Risk Management, Compliance, Control Management, Corporate Responsibility and various Other Corporate groups.Selected income statement and balance sheet dataAs of or for the year ended December 31,(in millions, except employees)202520242023RevenuePrincipal transactions$(339)$152 $302 Investment securities losses(58)(1,020)(3,180)All other income1,308 8,476 (f)3,010 (h)Noninterest revenue911 7,608 132 Net interest income6,114 9,786 7,906 Total net revenue(a)7,025 17,394 8,038 Provision for credit losses7 10 171 Noninterest expense(b)1,825 3,994 (g)5,601 Income before income tax expense5,193 13,390 2,266 Income tax expense/(benefit)673 (d)2,789 (555)(i)Net income$4,520 $10,601 $2,821 Total net revenueTreasury and CIO6,501 9,638 6,072 Other Corporate524 7,756 1,966 Total net revenue$7,025 $17,394 $8,038 Net income/(loss)Treasury and CIO4,565 7,013 4,206 Other Corporate(b)(45)3,588 (1,385)Total net income$4,520 $10,601 $2,821 Total assets (period-end)$1,329,632 $1,323,967 $1,348,437 Loans (period-end)2,941 1,964 1,924 Deposits(c)35,874 27,581 21,826 Employees50,031 (e)49,610 47,530 (a)Included taxable-equivalent adjustments, predominantly driven by tax-exempt income from municipal bonds, of $154 million, $182 million and $211 million for the years ended December 31, 2025, 2024 and 2023, respectively. (b)Included FDIC special assessment accrual releases of $763 million and an accrual increase of $725 million for the years ended December 31, 2025 and 2024, respectively, which are adjustments to the initial $2.9 billion estimate recorded in the fourth quarter of 2023.(c)Predominantly relates to the Firm's international consumer initiatives.(d)Included a $774 million income tax benefit recorded in the second quarter of 2025, driven by the resolution of certain tax audits and the impact of tax regulations related to foreign currency translation gains and losses finalized in 2024 and effective for 2025.(e)In the first quarter of 2025, 768 employees were transferred from the LOBs to Corporate as a result of the centralization of certain functions.(f)Included the net gain related to Visa shares of $7.9 billion recorded in the second quarter of 2024. Refer to Note 6 for additional information.(g)Included a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024. Refer to Note 6 for additional information.(h)Included the estimated bargain purchase gain of $2.8 billion for the year ended December 31, 2023 associated with the First Republic acquisition. Refer to Notes 6 and 34 for additional information.(i)Income taxes associated with the First Republic acquisition were reflected in the estimated bargain purchase gain. Corporate consists of Treasury and Chief Investment Office ("CIO") and Other Corporate. Treasury and CIO is predominantly responsible for measuring, monitoring, reporting and managing the Firm's liquidity, funding, capital, structural interest rate and foreign exchange risks. Other Corporate includes staff functions and expense that is centrally managed as well as certain Firm initiatives and activities not solely aligned to a specific LOB. The major Other Corporate functions include Real Estate, Technology, Legal, Corporate Finance, Human Resources, Internal Audit, Risk Management, Compliance, Control Management, Corporate Responsibility and various Other Corporate groups.Selected income statement and balance sheet dataAs of or for the year ended December 31,(in millions, except employees)202520242023RevenuePrincipal transactions$(339)$152 $302 Investment securities losses(58)(1,020)(3,180)All other income1,308 8,476 (f)3,010 (h)Noninterest revenue911 7,608 132 Net interest income6,114 9,786 7,906 Total net revenue(a)7,025 17,394 8,038 Provision for credit losses7 10 171 Noninterest expense(b)1,825 3,994 (g)5,601 Income before income tax expense5,193 13,390 2,266 Income tax expense/(benefit)673 (d)2,789 (555)(i)Net income$4,520 $10,601 $2,821 Total net revenueTreasury and CIO6,501 9,638 6,072 Other Corporate524 7,756 1,966 Total net revenue$7,025 $17,394 $8,038 Net income/(loss)Treasury and CIO4,565 7,013 4,206 Other Corporate(b)(45)3,588 (1,385)Total net income$4,520 $10,601 $2,821 Total assets (period-end)$1,329,632 $1,323,967 $1,348,437 Loans (period-end)2,941 1,964 1,924 Deposits(c)35,874 27,581 21,826 Employees50,031 (e)49,610 47,530 (a)Included taxable-equivalent adjustments, predominantly driven by tax-exempt income from municipal bonds, of $154 million, Corporate consists of Treasury and Chief Investment Office ("CIO") and Other Corporate. Treasury and CIO is predominantly responsible for measuring, monitoring, reporting and managing the Firm's liquidity, funding, capital, structural interest rate and foreign exchange risks. Other Corporate includes staff functions and expense that is centrally managed as well as certain Firm initiatives and activities not solely aligned to a specific LOB. The major Other Corporate functions include Real Estate, Technology, Legal, Corporate Finance, Human Resources, Internal Audit, Risk Management, Compliance, Control Management, Corporate Responsibility and various Other Corporate groups. --- ## Modified Risk: JPMorganChase's consumer businesses could be negatively affected by adverse economic conditions and adverse impacts of governmental policies. **Key changes:** - Updated: "and global economic conditions, including: •the distribution of personal and household income •unemployment or underemployment •changes in housing prices •the level of inflation and its effect on prices for goods and services •consumer and small business confidence levels •prolonged periods of exceptionally high or low interest rates, or significant changes to interest rates •changes in the value of collateral such as residential real estate and vehicles, and •changes in consumer spending or in the level of consumer debt." - Updated: "Substantial and unexpected withdrawals from a JPMorganChase fund could also hamper the investment performance of the fund, particularly if the outflows create the need for the fund to dispose of fund assets at disadvantageous times or which could reduce JPMorganChase's earnings." **Prior (2025):** JPMorganChase's consumer businesses are particularly affected by U.S. and global economic conditions, including: •personal and household income distribution •unemployment or underemployment •prolonged periods of exceptionally high or low interest rates, or significant changes to interest rates •changes in the value of collateral such as residential real estate and vehicles •changes in housing prices •the level of inflation and its effect on prices for goods and services •consumer and small business confidence levels, and •changes in consumer spending or in the level of consumer debt. Heightened levels of unemployment or underemployment that result in reduced personal and household income could negatively affect consumer credit performance to the extent that consumers are less able to service their debts. In addition, sustained low growth, low or negative interest rates, inflationary pressures or recessionary conditions could diminish customer demand for the products and services offered by JPMorganChase's consumer businesses. 16 16 16 16 Adverse economic conditions could also lead to an increase in delinquencies, additions to the allowance for credit losses and higher net charge-offs, which can reduce JPMorganChase's earnings. These consequences could be significantly worse in certain geographies, including where declining industrial or manufacturing activity has resulted in or could result in higher levels of unemployment, or where high levels of consumer debt, such as outstanding student loans, could impair the ability of customers to pay their other consumer loan obligations.JPMorganChase's earnings from its consumer businesses could also be adversely affected by governmental policies and actions that affect consumers, including:•policies and initiatives relating to medical insurance, education, immigration and housing, or that may impact employment status•laws, rules and regulations relating specifically to the financial services industry, such as limitations on late payment, overdraft and interchange fees, and•policies aimed at the economy more broadly, such as higher taxes and increased regulation, which could result in reductions in consumer disposable income.Unfavorable market and economic conditions can have an adverse effect on JPMorganChase's wholesale businesses.In JPMorganChase's wholesale businesses, market and economic factors can affect the volume of transactions that JPMorganChase executes for its clients or for which it advises clients, and, therefore, the revenue that JPMorganChase receives from those transactions. These factors can also influence the willingness of other financial institutions and investors to participate in capital markets transactions that JPMorganChase manages, such as loan syndications or securities underwriting. Furthermore, if a significant and sustained deterioration in market conditions were to occur, the profitability of JPMorganChase's businesses engaged in capital markets activities, including loan syndication, securities underwriting and leveraged lending activities, could be reduced to the extent that those businesses:•earn less fee revenue due to lower transaction volumes, including when clients are unwilling or unable to refinance their outstanding debt obligations in unfavorable market conditions, or•dispose of portions of credit commitments at a loss, or hold larger residual positions in credit commitments that cannot be sold at favorable prices.The fees that JPMorganChase earns from managing client assets or holding assets under custody for clients could be diminished by declining asset values or other adverse macroeconomic conditions. For example, higher interest rates or a downturn in financial markets could affect the valuation of client assets that JPMorganChase manages or holds under custody, which, in turn, could affect JPMorganChase's revenue from fees that are based on the amount of assets under management or custody. Similarly, adverse macroeconomic or market conditions could prompt outflows from JPMorganChase funds or accounts, or cause clients to invest in products that generate lower revenue. Substantial and unexpected withdrawals from a JPMorganChase fund can also hamper the investment performance of the fund, particularly if the outflows create the need for the fund to dispose of fund assets at disadvantageous times or prices, and could lead to further withdrawals based on the weaker investment performance.An adverse change in market conditions in particular segments of the economy, such as a sudden and severe downturn in oil and gas prices or an increase in commodity prices, severe declines in commercial real estate values, or sustained changes in consumer behavior that affect specific economic sectors, could have a material adverse effect on clients of JPMorganChase whose operations or financial condition are directly or indirectly dependent on the health or stability of those market segments or economic sectors, as well as clients that are engaged in related businesses. JPMorganChase could incur credit losses on its loans and other commitments to clients that operate in, or are dependent on, any sector of the economy that is or comes under stress.An economic downturn or sustained changes in consumer behavior that results in shifts in consumer and business spending could also have a negative impact on certain of JPMorganChase's wholesale clients, and thereby diminish JPMorganChase's earnings from its wholesale operations. For example, the businesses of certain of JPMorganChase's wholesale clients are dependent on consistent streams of rental income from commercial real estate properties, including offices, which are owned or being built by those clients. Sustained adverse economic conditions or hybrid work models could result in reductions in the rental cash flows that owners or developers receive from their tenants which, in turn, could depress the values of the properties, impair the ability of borrowers to service or refinance their commercial real estate loans and lead to an increase in foreclosures. These consequences could result in JPMorganChase experiencing increases in the allowance for credit losses, higher delinquencies, defaults and charge-offs within its commercial real estate loan portfolio and incurring higher costs for servicing a larger volume of delinquent loans in that portfolio. An increase in foreclosures could result in higher operational risk associated with JPMorganChase owning and managing real property, Adverse economic conditions could also lead to an increase in delinquencies, additions to the allowance for credit losses and higher net charge-offs, which can reduce JPMorganChase's earnings. These consequences could be significantly worse in certain geographies, including where declining industrial or manufacturing activity has resulted in or could result in higher levels of unemployment, or where high levels of consumer debt, such as outstanding student loans, could impair the ability of customers to pay their other consumer loan obligations.JPMorganChase's earnings from its consumer businesses could also be adversely affected by governmental policies and actions that affect consumers, including:•policies and initiatives relating to medical insurance, education, immigration and housing, or that may impact employment status•laws, rules and regulations relating specifically to the financial services industry, such as limitations on late payment, overdraft and interchange fees, and•policies aimed at the economy more broadly, such as higher taxes and increased regulation, which could result in reductions in consumer disposable income.Unfavorable market and economic conditions can have an adverse effect on JPMorganChase's wholesale businesses.In JPMorganChase's wholesale businesses, market and economic factors can affect the volume of transactions that JPMorganChase executes for its clients or for which it advises clients, and, therefore, the revenue that JPMorganChase receives from those transactions. These factors can also influence the willingness of other financial institutions and investors to participate in capital markets transactions that JPMorganChase manages, such as loan syndications or securities underwriting. Furthermore, if a significant and sustained deterioration in market conditions were to occur, the profitability of JPMorganChase's businesses engaged in capital markets activities, including loan syndication, securities underwriting and leveraged lending activities, could be reduced to the extent that those businesses:•earn less fee revenue due to lower transaction volumes, including when clients are unwilling or unable to refinance their outstanding debt obligations in unfavorable market conditions, or•dispose of portions of credit commitments at a loss, or hold larger residual positions in credit commitments that cannot be sold at favorable prices.The fees that JPMorganChase earns from managing client assets or holding assets under custody for clients could be diminished by declining asset values Adverse economic conditions could also lead to an increase in delinquencies, additions to the allowance for credit losses and higher net charge-offs, which can reduce JPMorganChase's earnings. These consequences could be significantly worse in certain geographies, including where declining industrial or manufacturing activity has resulted in or could result in higher levels of unemployment, or where high levels of consumer debt, such as outstanding student loans, could impair the ability of customers to pay their other consumer loan obligations. JPMorganChase's earnings from its consumer businesses could also be adversely affected by governmental policies and actions that affect consumers, including: •policies and initiatives relating to medical insurance, education, immigration and housing, or that may impact employment status •laws, rules and regulations relating specifically to the financial services industry, such as limitations on late payment, overdraft and interchange fees, and •policies aimed at the economy more broadly, such as higher taxes and increased regulation, which could result in reductions in consumer disposable income. **Current (2026):** JPMorganChase's consumer businesses are particularly affected by U.S. and global economic conditions, including: •the distribution of personal and household income •unemployment or underemployment •changes in housing prices •the level of inflation and its effect on prices for goods and services •consumer and small business confidence levels •prolonged periods of exceptionally high or low interest rates, or significant changes to interest rates •changes in the value of collateral such as residential real estate and vehicles, and •changes in consumer spending or in the level of consumer debt. High unemployment levels could reduce personal and household income, which could degrade consumer credit performance if consumers struggle to service their debts. Adverse economic conditions could also lead to an increase in delinquencies, an increase in the allowance for credit losses or higher net charge-offs, which could reduce JPMorganChase's earnings. These consequences could be significantly worse if high levels of consumer debt, such as outstanding student loans, impair the ability of customers to pay their other consumer loan obligations, or in certain geographies where declining industrial or manufacturing activity has resulted in or could result in higher levels of unemployment. In addition, JPMorganChase's earnings from its consumer businesses could be adversely affected if customer demand for the products and services offered by its consumer businesses is diminished by sustained low growth, low or negative interest rates, inflationary pressures, or recessionary conditions. Furthermore, governmental policies and actions, including those relating to pricing of products, taxation, medical insurance, education, immigration, and housing, or those that impact employment status, could reduce consumer disposable income and decrease JPMorganChase's earnings from its consumer businesses. Unfavorable market and economic conditions could adversely affect JPMorganChase's wholesale businesses.Market and economic factors can affect the volume of transactions and advisory engagements for which JPMorganChase is engaged and the related revenue from those activities. These factors could also influence the willingness of other financial institutions and investors to participate in capital markets transactions that JPMorganChase manages.Furthermore, any significant and sustained deterioration in market conditions could reduce fee revenue due to lower transaction volumes, including when clients are unwilling or unable to refinance their outstanding debt obligations. Additionally, the profitability of JPMorganChase's capital markets activities could be impacted if it needs to dispose of portions of credit commitments at a loss or hold larger residual positions in credit commitments that cannot be sold at favorable prices. The fees that JPMorganChase earns from managing client assets or holding assets under custody for clients could be diminished by declining asset values or other adverse macroeconomic conditions. For example, higher interest rates or a market downturn could affect the valuation of client assets that JPMorganChase manages or holds under custody, resulting in lower revenue from fees that are based on the amount of assets under management or custody. Similarly, adverse macroeconomic or market conditions could prompt outflows from JPMorganChase funds or accounts, or cause clients to invest in products that generate lower revenue. Substantial and unexpected withdrawals from a JPMorganChase fund could also hamper the investment performance of the fund, particularly if the outflows create the need for the fund to dispose of fund assets at disadvantageous times or which could reduce JPMorganChase's earnings. These consequences could be significantly worse if high levels of consumer debt, such as outstanding student loans, impair the ability of customers to pay their other consumer loan obligations, or in certain geographies where declining industrial or manufacturing activity has resulted in or could result in higher levels of unemployment. In addition, JPMorganChase's earnings from its consumer businesses could be adversely affected if customer demand for the products and services offered by its consumer businesses is diminished by sustained low growth, low or negative interest rates, inflationary pressures, or recessionary conditions. Furthermore, governmental policies and actions, including those relating to pricing of products, taxation, medical insurance, education, immigration, and housing, or those that impact employment status, could reduce consumer disposable income and decrease JPMorganChase's earnings from its consumer businesses. --- ## Modified Risk: Changes in net interest income, volume and rate analysis **Key changes:** - Updated: "The attribution between volume and rate is calculated using annual average balances for each category of assets and liabilities shown in the table and the corresponding annual rates (refer to pages 315-318 for more information on average balances and rates)." - Updated: "2025 versus 20242024 versus 2023(Unaudited)Increase/(decrease) due to change in:Increase/(decrease) due to change in:Year ended December 31,(On a taxable-equivalent basis; in millions)VolumeRateNetchangeVolumeRateNetchangeInterest-earning assetsDeposits with banks:U.S.$(5,405)$(2,792)$(8,197)$(636)$445 $(191)Non-U.S.559 (1,560)(1,001)83 608 691 Federal funds sold and securities purchased under resale agreements:U.S.1,153 (1,835)(682)2,092 264 2,356 Non-U.S.268 (1,179)(911)184 680 864 Securities borrowed:U.S.1,377 (1,442)(65)797 294 1,091 Non-U.S.(68)(48)(116)(3)137 134 Trading assets - debt instruments:U.S.2,645 31 2,676 2,659 199 2,858 Non-U.S.2,185 (293)1,892 834 680 1,514 Investment securities:U.S.4,488 227 4,715 (47)4,036 3,989 Non-U.S.378 (235)143 310 91 401 Loans: U.S.3,999 (2,424)1,575 5,326 3,411 8,737 Non-U.S.975 (1,082)(107)(26)288 262 All other interest-earning assets, largely U.S.1,528 (2,094)(566)240 396 636 Change in interest income14,082 (14,726)(644)11,813 11,529 23,342 Interest-bearing liabilitiesInterest-bearing deposits:U.S.2,504 (4,052)(1,548)340 6,580 6,920 Non-U.S.1,203 (4,102)(2,899)1,194 1,429 2,623 Federal funds purchased and securities loaned or sold under repurchase agreements:U.S.5,213 (2,915)2,298 5,271 39 5,310 Non-U.S.1,657 (693)964 480 100 580 Trading liabilities - debt, short-term and all other interest-bearing liabilities:U.S.(263)(913)(1,176)659 (144)515 Non-U.S.296 (196)100 380 154 534 Beneficial interests issued by consolidated VIEs, predominantly U.S.26 (191)(165)409 21 430 Long-term debt:U.S.171 (1,319)(1,148)2,483 528 3,011 Non-U.S.97 25 122 77 29 106 Change in interest expense10,904 (14,356)(3,452)11,293 8,736 20,029 Change in net interest income$3,178 $(370)$2,808 $520 $2,793 $3,313 Federal funds sold and securities purchased under resale agreements: Securities borrowed: All other interest-earning assets, largely U.S." **Prior (2025):** The table below presents an attribution of net interest income between volume and rate. The attribution between volume and rate is calculated using annual average balances for each category of assets and liabilities shown in the table and the corresponding annual rates (refer to pages 322-325 for more information on average balances and rates). In this analysis, when the change cannot be isolated to either volume or rate, it has been allocated to volume. The annual rates include the impact of changes in market rates, as well as the impact of any change in composition of the various products within each category of asset or liability. This analysis is calculated separately for each category without consideration of the relationship between categories (for example, the net spread between the rates earned on assets and the rates paid on liabilities that fund those assets). As a result, changes in the granularity or groupings considered in this analysis would produce a different attribution result, and due to the complexities involved, precise allocation of changes in interest rates between volume and rates is inherently complex and judgmental. 2024 versus 20232023 versus 2022(Unaudited)Increase/(decrease) due to change in:Increase/(decrease) due to change in:Year ended December 31,(On a taxable-equivalent basis; in millions)VolumeRateNetchangeVolumeRateNetchangeInterest-earning assetsDeposits with banks:U.S.$(636)$445 $(191)$(8,225)$16,155 $7,930 Non-U.S.83 608 691 (361)5,189 4,828 Federal funds sold and securities purchased under resale agreements:U.S.2,092 264 2,356 1,347 4,792 6,139 Non-U.S.184 680 864 (629)4,937 4,308 Securities borrowed:U.S.797 294 1,091 (411)4,839 4,428 Non-U.S.(3)137 134 (95)1,413 1,318 Trading assets - debt instruments:U.S.2,659 199 2,858 3,358 1,949 5,307 Non-U.S.834 680 1,514 666 931 1,597 Investment securities:U.S.(47)4,036 3,989 (1,690)8,165 6,475 Non-U.S.310 91 401 228 651 879 Loans: U.S.5,326 3,411 8,737 10,296 17,635 27,931 Non-U.S.(26)288 262 (258)3,039 2,781 All other interest-earning assets, predominantly U.S.240 396 636 (3,749)7,655 3,906 Change in interest income11,813 11,529 23,342 477 77,350 77,827 Interest-bearing liabilitiesInterest-bearing deposits:U.S.340 6,580 6,920 (1,284)20,511 19,227 Non-U.S.1,194 1,429 2,623 597 10,110 10,707 Federal funds purchased and securities loaned or sold under repurchase agreements:U.S.5,271 39 5,310 1,293 6,263 7,556 Non-U.S.480 100 580 (480)2,462 1,982 Trading liabilities - debt, short-term and all other interest-bearing liabilities:U.S.659 (144)515 409 4,981 5,390 Non-U.S.380 154 534 (17)1,924 1,907 Beneficial interests issued by consolidated VIEs, predominantly U.S.409 21 430 381 346 727 Long-term debt:U.S.2,483 528 3,011 2,494 5,229 7,723 Non-U.S.77 29 106 (3)8 5 Change in interest expense11,293 8,736 20,029 3,390 51,834 55,224 Change in net interest income$520 $2,793 $3,313 $(2,913)$25,516 $22,603 Federal funds sold and securities purchased under resale agreements: Securities borrowed: Federal funds purchased and securities loaned or sold under repurchase agreements: Trading liabilities - debt, short-term and all other interest-bearing liabilities: Beneficial interests issued by consolidated VIEs, predominantly U.S. 326JPMorgan Chase & Co./2024 Form 10-K 326JPMorgan Chase & Co./2024 Form 10-K 326JPMorgan Chase & Co./2024 Form 10-K 326 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** The table below presents an attribution of net interest income between volume and rate. The attribution between volume and rate is calculated using annual average balances for each category of assets and liabilities shown in the table and the corresponding annual rates (refer to pages 315-318 for more information on average balances and rates). In this analysis, when the change cannot be isolated to either volume or rate, it has been allocated to volume. The annual rates include the impact of changes in market rates, as well as the impact of any change in composition of the various products within each category of asset or liability. This analysis is calculated separately for each category without consideration of the relationship between categories (for example, the net spread between the rates earned on assets and the rates paid on liabilities that fund those assets). As a result, changes in the granularity or groupings considered in this analysis would produce a different attribution result, and due to the complexities involved, precise allocation of changes in interest rates between volume and rates is inherently complex and judgmental. 2025 versus 20242024 versus 2023(Unaudited)Increase/(decrease) due to change in:Increase/(decrease) due to change in:Year ended December 31,(On a taxable-equivalent basis; in millions)VolumeRateNetchangeVolumeRateNetchangeInterest-earning assetsDeposits with banks:U.S.$(5,405)$(2,792)$(8,197)$(636)$445 $(191)Non-U.S.559 (1,560)(1,001)83 608 691 Federal funds sold and securities purchased under resale agreements:U.S.1,153 (1,835)(682)2,092 264 2,356 Non-U.S.268 (1,179)(911)184 680 864 Securities borrowed:U.S.1,377 (1,442)(65)797 294 1,091 Non-U.S.(68)(48)(116)(3)137 134 Trading assets - debt instruments:U.S.2,645 31 2,676 2,659 199 2,858 Non-U.S.2,185 (293)1,892 834 680 1,514 Investment securities:U.S.4,488 227 4,715 (47)4,036 3,989 Non-U.S.378 (235)143 310 91 401 Loans: U.S.3,999 (2,424)1,575 5,326 3,411 8,737 Non-U.S.975 (1,082)(107)(26)288 262 All other interest-earning assets, largely U.S.1,528 (2,094)(566)240 396 636 Change in interest income14,082 (14,726)(644)11,813 11,529 23,342 Interest-bearing liabilitiesInterest-bearing deposits:U.S.2,504 (4,052)(1,548)340 6,580 6,920 Non-U.S.1,203 (4,102)(2,899)1,194 1,429 2,623 Federal funds purchased and securities loaned or sold under repurchase agreements:U.S.5,213 (2,915)2,298 5,271 39 5,310 Non-U.S.1,657 (693)964 480 100 580 Trading liabilities - debt, short-term and all other interest-bearing liabilities:U.S.(263)(913)(1,176)659 (144)515 Non-U.S.296 (196)100 380 154 534 Beneficial interests issued by consolidated VIEs, predominantly U.S.26 (191)(165)409 21 430 Long-term debt:U.S.171 (1,319)(1,148)2,483 528 3,011 Non-U.S.97 25 122 77 29 106 Change in interest expense10,904 (14,356)(3,452)11,293 8,736 20,029 Change in net interest income$3,178 $(370)$2,808 $520 $2,793 $3,313 Federal funds sold and securities purchased under resale agreements: Securities borrowed: All other interest-earning assets, largely U.S. Federal funds purchased and securities loaned or sold under repurchase agreements: Beneficial interests issued by consolidated VIEs, predominantly U.S. JPMorgan Chase & Co./2025 Form 10-K319 JPMorgan Chase & Co./2025 Form 10-K319 JPMorgan Chase & Co./2025 Form 10-K319 JPMorgan Chase & Co./2025 Form 10-K 319 --- ## Modified Risk: Nonperforming assets(a) **Key changes:** - Updated: "At December 31, 2025 and 2024, mortgage loans 90 or more days past due and insured by U.S." **Prior (2025):** December 31, (in millions) Residential real estate Auto and other (a)Excludes mortgage loans past due and insured by U.S. government agencies, which are primarily 90 or more days past due. These loans have been excluded based upon the government guarantee. At December 31, 2024 and 2023, mortgage loans 90 or more days past due and insured by U.S. government agencies were $121 million and $182 million, respectively. Nonaccrual loansThe following table presents changes in consumer, excluding credit card, nonaccrual loans for the years ended December 31, 2024 and 2023. Nonaccrual loan activityYear ended December 31,(in millions)20242023Beginning balance$4,203 $4,325 Additions:3,225 2,894 Reductions:Principal payments and other894 1,030 Sales803 276 Charge-offs665 472 Returned to performing status963 1,052 Foreclosures and other liquidations177 186 Total reductions3,502 3,016 Net changes(277)(122)Ending balance$3,926 $4,203 Refer to Note 12 for further information about the consumer credit portfolio, including information about delinquencies, other credit quality indicators and loans that were in the process of active or suspended foreclosure. **Current (2026):** December 31, (in millions) Residential real estate Auto and other (a)Excludes mortgage loans past due and insured by U.S. government agencies, which are primarily 90 or more days past due. These loans have been excluded based upon the government guarantee. At December 31, 2025 and 2024, mortgage loans 90 or more days past due and insured by U.S. government agencies were $198 million and $121 million, respectively. Nonaccrual loansThe following table presents changes in consumer, excluding credit card, nonaccrual loans for the years ended December 31, 2025 and 2024. Nonaccrual loan activityYear ended December 31, (in millions)20252024Beginning balance$3,926 $4,203 Additions:4,506 3,225 Reductions:Principal payments and other962 894 Sales760 803 Charge-offs643 665 Returned to performing status1,200 963 Foreclosures and other liquidations194 177 Total reductions3,759 3,502 Net changes747 (277)Ending balance$4,673 $3,926 Refer to Note 12 for further information about the consumer credit portfolio, including information about delinquencies, other credit quality indicators and loans that were in the process of active or suspended foreclosure. --- ## Modified Risk: JPMorganChase could incur significant losses arising from concentrations of credit and market risk. **Key changes:** - Updated: "JPMorganChase could be exposed to greater credit and market risk if groupings of its clients or counterparties, or obligors on securities and other financial instruments: •engage in similar or related businesses or in related industries •operate in the same geographic region, or •have business profiles that could cause their ability to meet their obligations to be similarly affected by changes in economic conditions." - Updated: "economy, and JPMorganChase's consumer businesses could earn lower revenues in such an environment.Furthermore, the interconnectivity across credit markets increases the risk that the significant expansion of private credit could worsen losses among non-bank lenders and their borrowers, particularly if stress or defaults spread to broader funding and credit markets." - Updated: "JPMorganChase's liquidity could be impacted by factors such as:•market-wide illiquidity or disruption•actions by governmental authorities, including changes in regulatory requirements relating to liquidity or capital•actions taken by the Federal Reserve to reduce its balance sheet, which could reduce deposits held by JPMorganChase and other financial institutions•inability to sell assets, or to sell at favorable times or prices•default by a CCP or other significant market participant•unanticipated outflows of cash or collateral•unexpected loss of deposits, including due to deposit pricing or migration to other investment products•higher than anticipated draws on lending-related commitments, and•lack of market or customer confidence in JPMorganChase or financial institutions in general.A reduction in JPMorganChase's liquidity could be caused by events beyond its control." **Prior (2025):** JPMorganChase is exposed to greater credit and market risk to the extent that groupings of its clients or counterparties, or obligors on securities and other financial instruments: •engage in similar or related businesses, or in businesses in related industries •do business in the same geographic region, or 19 19 19 19 Part I Part I •have business profiles, models or strategies that could cause their ability to meet their obligations to be similarly affected by changes in economic conditions. For example, a significant deterioration in the credit quality of a counterparty, borrower or other obligor could lead to concerns about the creditworthiness of other counterparties, borrowers or obligors in similar, related or dependent industries. This type of interrelationship could exacerbate JPMorganChase's credit, liquidity and market risk exposure and potentially cause it to incur losses, including fair value losses in its market-making businesses and investment portfolios. In addition, JPMorganChase may be required to increase the allowance for credit losses or establish other reserves with respect to certain clients, industries or country exposures in order to align with directives or expectations of its banking regulators. Similarly, challenging economic conditions that affect a particular industry or geographic area could lead to concerns about the credit quality of counterparties, borrowers or other obligors not only in that particular industry or geography but in related or dependent industries, wherever located. These conditions could also heighten concerns about the ability of customers of JPMorganChase's consumer businesses who live in those areas or work in those affected industries or related or dependent industries to meet their obligations to JPMorganChase. JPMorganChase regularly monitors various segments of its credit and market risk exposures to assess the potential risks of concentration or contagion, but its ability to diversify or hedge its exposure against those risks may be limited.JPMorganChase's consumer businesses can also be harmed by an excessive expansion of consumer credit by bank or non-bank competitors. Heightened competition for certain types of consumer loans could prompt industry-wide reactions such as significant reductions in the pricing or margins of those loans or the making of loans to less-creditworthy borrowers. If large numbers of consumers subsequently default on their loans, whether due to weak credit profiles, an economic downturn or other factors, this could impair their ability to repay obligations owed to JPMorganChase and result in higher charge-offs and other credit-related losses. More broadly, widespread defaults on consumer debt could lead to recessionary conditions in the U.S. economy, and JPMorganChase's consumer businesses may earn lower revenues in such an environment.If JPMorganChase is unable to reduce positions effectively during a market dislocation, this can increase both the market and credit risks associated with those positions and the level of risk-weighted-assets ("RWA") that JPMorganChase holds on its balance sheet. These factors could adversely affect JPMorganChase's capital position, funding costs and the profitability of its businesses.LiquidityJPMorganChase's ability to operate its businesses could be impaired if its liquidity is constrained. JPMorganChase's liquidity can be impacted at any given time as a result of factors such as:•market-wide illiquidity or disruption•changes in liquidity or capital requirements resulting from changes in laws, rules and regulations, including those in response to economic effects of systemic events•actions taken by the U.S. government or by the Federal Reserve to reduce its balance sheet, which may reduce deposits held by JPMorganChase and other financial institutions•inability to sell assets, or to sell assets at favorable times or prices•default by a CCP or other significant market participant•unanticipated outflows of cash or collateral•unexpected loss of deposits or higher than anticipated draws on lending-related commitments, and•lack of market or customer confidence in JPMorganChase or financial institutions in general. A reduction in JPMorganChase's liquidity may be caused by events over which it has little or no control. For example, periods of market stress, low investor confidence and significant market illiquidity could result in higher funding costs for JPMorganChase and could limit its access to some of its traditional sources of liquidity. JPMorganChase may need to raise funding from alternative sources if its access to stable and lower-cost sources of funding, such as deposits and borrowings from Federal Home Loan Banks, is reduced. Alternative sources of funding could be more expensive or limited in availability. JPMorganChase's funding costs could also be negatively affected by actions that JPMorganChase may take in order to:•satisfy applicable liquidity coverage ratio and net stable funding ratio requirements•address obligations under its resolution plan, or•satisfy regulatory requirements in jurisdictions outside the U.S. relating to the pre-positioning of liquidity in subsidiaries that are material legal entities.More generally, if JPMorganChase fails to effectively manage its liquidity, this could constrain its ability to fund or invest in its businesses and subsidiaries, and thereby adversely affect its results of operations. •have business profiles, models or strategies that could cause their ability to meet their obligations to be similarly affected by changes in economic conditions. For example, a significant deterioration in the credit quality of a counterparty, borrower or other obligor could lead to concerns about the creditworthiness of other counterparties, borrowers or obligors in similar, related or dependent industries. This type of interrelationship could exacerbate JPMorganChase's credit, liquidity and market risk exposure and potentially cause it to incur losses, including fair value losses in its market-making businesses and investment portfolios. In addition, JPMorganChase may be required to increase the allowance for credit losses or establish other reserves with respect to certain clients, industries or country exposures in order to align with directives or expectations of its banking regulators. Similarly, challenging economic conditions that affect a particular industry or geographic area could lead to concerns about the credit quality of counterparties, borrowers or other obligors not only in that particular industry or geography but in related or dependent industries, wherever located. These conditions could also heighten concerns about the ability of customers of JPMorganChase's consumer businesses who live in those areas or work in those affected industries or related or dependent industries to meet their obligations to JPMorganChase. JPMorganChase regularly monitors various segments of its credit and market risk exposures to assess the potential risks of concentration or contagion, but its ability to diversify or hedge its exposure against those risks may be limited.JPMorganChase's consumer businesses can also be harmed by an excessive expansion of consumer credit by bank or non-bank competitors. Heightened competition for certain types of consumer loans could prompt industry-wide reactions such as significant reductions in the pricing or margins of those loans or the making of loans to less-creditworthy borrowers. If large numbers of consumers subsequently default on their loans, whether due to weak credit profiles, an economic downturn or other factors, this could impair their ability to repay obligations owed to JPMorganChase and result in higher charge-offs and other credit-related losses. More broadly, widespread defaults on consumer debt could lead to recessionary conditions in the U.S. economy, and JPMorganChase's consumer businesses may earn lower revenues in such an environment.If JPMorganChase is unable to reduce positions effectively during a market dislocation, this can increase both the market and credit risks associated with those positions and the level of risk-weighted-assets ("RWA") that JPMorganChase holds on its •have business profiles, models or strategies that could cause their ability to meet their obligations to be similarly affected by changes in economic conditions. For example, a significant deterioration in the credit quality of a counterparty, borrower or other obligor could lead to concerns about the creditworthiness of other counterparties, borrowers or obligors in similar, related or dependent industries. This type of interrelationship could exacerbate JPMorganChase's credit, liquidity and market risk exposure and potentially cause it to incur losses, including fair value losses in its market-making businesses and investment portfolios. In addition, JPMorganChase may be required to increase the allowance for credit losses or establish other reserves with respect to certain clients, industries or country exposures in order to align with directives or expectations of its banking regulators. Similarly, challenging economic conditions that affect a particular industry or geographic area could lead to concerns about the credit quality of counterparties, borrowers or other obligors not only in that particular industry or geography but in related or dependent industries, wherever located. These conditions could also heighten concerns about the ability of customers of JPMorganChase's consumer businesses who live in those areas or work in those affected industries or related or dependent industries to meet their obligations to JPMorganChase. JPMorganChase regularly monitors various segments of its credit and market risk exposures to assess the potential risks of concentration or contagion, but its ability to diversify or hedge its exposure against those risks may be limited. JPMorganChase's consumer businesses can also be harmed by an excessive expansion of consumer credit by bank or non-bank competitors. Heightened competition for certain types of consumer loans could prompt industry-wide reactions such as significant reductions in the pricing or margins of those loans or the making of loans to less-creditworthy borrowers. If large numbers of consumers subsequently default on their loans, whether due to weak credit profiles, an economic downturn or other factors, this could impair their ability to repay obligations owed to JPMorganChase and result in higher charge-offs and other credit-related losses. More broadly, widespread defaults on consumer debt could lead to recessionary conditions in the U.S. economy, and JPMorganChase's consumer businesses may earn lower revenues in such an environment. If JPMorganChase is unable to reduce positions effectively during a market dislocation, this can increase both the market and credit risks associated with those positions and the level of risk-weighted-assets ("RWA") that JPMorganChase holds on its balance sheet. These factors could adversely affect JPMorganChase's capital position, funding costs and the profitability of its businesses.LiquidityJPMorganChase's ability to operate its businesses could be impaired if its liquidity is constrained. JPMorganChase's liquidity can be impacted at any given time as a result of factors such as:•market-wide illiquidity or disruption•changes in liquidity or capital requirements resulting from changes in laws, rules and regulations, including those in response to economic effects of systemic events•actions taken by the U.S. government or by the Federal Reserve to reduce its balance sheet, which may reduce deposits held by JPMorganChase and other financial institutions•inability to sell assets, or to sell assets at favorable times or prices•default by a CCP or other significant market participant•unanticipated outflows of cash or collateral•unexpected loss of deposits or higher than anticipated draws on lending-related commitments, and•lack of market or customer confidence in JPMorganChase or financial institutions in general. A reduction in JPMorganChase's liquidity may be caused by events over which it has little or no control. For example, periods of market stress, low investor confidence and significant market illiquidity could result in higher funding costs for JPMorganChase and could limit its access to some of its traditional sources of liquidity. JPMorganChase may need to raise funding from alternative sources if its access to stable and lower-cost sources of funding, such as deposits and borrowings from Federal Home Loan Banks, is reduced. Alternative sources of funding could be more expensive or limited in availability. JPMorganChase's funding costs could also be negatively affected by actions that JPMorganChase may take in order to:•satisfy applicable liquidity coverage ratio and net stable funding ratio requirements•address obligations under its resolution plan, or•satisfy regulatory requirements in jurisdictions outside the U.S. relating to the pre-positioning of liquidity in subsidiaries that are material legal entities.More generally, if JPMorganChase fails to effectively manage its liquidity, this could constrain its ability to fund or invest in its businesses and subsidiaries, and thereby adversely affect its results of operations. balance sheet. These factors could adversely affect JPMorganChase's capital position, funding costs and the profitability of its businesses. Liquidity **Current (2026):** JPMorganChase could be exposed to greater credit and market risk if groupings of its clients or counterparties, or obligors on securities and other financial instruments: •engage in similar or related businesses or in related industries •operate in the same geographic region, or •have business profiles that could cause their ability to meet their obligations to be similarly affected by changes in economic conditions. For example, a significant deterioration in the credit quality of a counterparty, borrower or other obligor could lead to concerns about the creditworthiness of other parties in similar, related or dependent industries. This type of interrelationship could exacerbate JPMorganChase's credit, liquidity and market risk exposure, potentially causing losses. In addition, JPMorganChase could be required to increase the allowance for credit losses or establish other reserves with respect to certain clients, industries or country exposures in order to align with regulatory directives or expectations. Similarly, challenging economic conditions that affect a particular industry or geographic area could lead to concerns about the credit quality of counterparties, borrowers or other obligors not only in that industry or geography but also in related or dependent industries, wherever located. These conditions could also heighten concerns about the ability of customers of JPMorganChase's consumer businesses who live in those areas or work in those industries to meet their obligations. JPMorganChase's consumer businesses could also be harmed by an excessive expansion of consumer credit by competitors. Heightened competition for certain types of consumer loans could lead to significant price reductions for those loans or providing loans to less-creditworthy borrowers. If large numbers of consumers subsequently default on their loans, this could impair their ability to repay obligations owed to JPMorganChase and result in an increase in the allowance for credit losses and higher charge-offs. More broadly, widespread defaults on consumer debt could lead to recessionary conditions in the U.S. economy, and JPMorganChase's consumer businesses could earn lower revenues in such an environment.Furthermore, the interconnectivity across credit markets increases the risk that the significant expansion of private credit could worsen losses among non-bank lenders and their borrowers, particularly if stress or defaults spread to broader funding and credit markets. Such developments could impair asset valuations, reduce market-wide liquidity, disrupt borrowers' ability to refinance, and increase default rates, especially if non-bank lenders have weaker underwriting standards, loans are less liquid, or transparency is limited. These outcomes could adversely affect JPMorganChase's results of operations and lead to losses on market-making positions in its wholesale businesses. If JPMorganChase is unable to reduce positions effectively during a market dislocation, this could increase both the market and credit risks associated with those positions and the level of risk-weighted-assets ("RWA") that JPMorganChase holds on its balance sheet. These factors could adversely affect JPMorganChase's capital position, funding costs and the profitability of its businesses.LiquidityJPMorganChase's ability to operate its businesses could be impaired if its liquidity is constrained. JPMorganChase's liquidity could be impacted by factors such as:•market-wide illiquidity or disruption•actions by governmental authorities, including changes in regulatory requirements relating to liquidity or capital•actions taken by the Federal Reserve to reduce its balance sheet, which could reduce deposits held by JPMorganChase and other financial institutions•inability to sell assets, or to sell at favorable times or prices•default by a CCP or other significant market participant•unanticipated outflows of cash or collateral•unexpected loss of deposits, including due to deposit pricing or migration to other investment products•higher than anticipated draws on lending-related commitments, and•lack of market or customer confidence in JPMorganChase or financial institutions in general.A reduction in JPMorganChase's liquidity could be caused by events beyond its control. For example, JPMorganChase's funding costs could increase and its access to traditional sources of liquidity could be More broadly, widespread defaults on consumer debt could lead to recessionary conditions in the U.S. economy, and JPMorganChase's consumer businesses could earn lower revenues in such an environment. Furthermore, the interconnectivity across credit markets increases the risk that the significant expansion of private credit could worsen losses among non-bank lenders and their borrowers, particularly if stress or defaults spread to broader funding and credit markets. Such developments could impair asset valuations, reduce market-wide liquidity, disrupt borrowers' ability to refinance, and increase default rates, especially if non-bank lenders have weaker underwriting standards, loans are less liquid, or transparency is limited. These outcomes could adversely affect JPMorganChase's results of operations and lead to losses on market-making positions in its wholesale businesses. If JPMorganChase is unable to reduce positions effectively during a market dislocation, this could increase both the market and credit risks associated with those positions and the level of risk-weighted-assets ("RWA") that JPMorganChase holds on its balance sheet. These factors could adversely affect JPMorganChase's capital position, funding costs and the profitability of its businesses. Liquidity --- ## Modified Risk: The majority of AWM's client assets are in actively managed portfolios. **Key changes:** - Updated: "Selected income statement dataYear ended December 31,(in millions, except ratios)202520242023RevenueAsset management fees$15,494 $13,693 $11,826 Commissions and other fees1,184 874 697 All other income(a)563 456 1,037 (b)Noninterest revenue17,241 15,023 13,560 Net interest income6,832 6,555 6,267 Total net revenue24,073 21,578 19,827 Provision for credit losses97 (68)159 Noninterest expenseCompensation expense8,645 7,984 7,115 Noncompensation expense6,687 6,430 5,665 Total noninterest expense15,332 14,414 12,780 Income before income tax expense8,644 7,232 6,888 Income tax expense2,122 1,811 1,661 Net income$6,522 $5,421 $5,227 Revenue by line of businessAsset Management $11,700 $10,175 $9,129 Global Private Bank12,373 11,403 10,698 Total net revenue$24,073 $21,578 $19,827 Financial ratiosReturn on equity40 %34 %31 %Overhead ratio64 67 64 Pre-tax margin ratio:Asset Management35 31 31 Global Private Bank37 35 38 Asset & Wealth Management36 34 35 All other income(a) (b) % (a)Includes the amortization of the fair value discount on certain acquired lending-related commitments associated with First Republic." **Prior (2025):** Selected income statement dataYear ended December 31,(in millions, except ratios)202420232022RevenueAsset management fees$13,693 $11,826 $11,510 Commissions and other fees874 697 $662 All other income456 (a)1,037 (a)(b)335 Noninterest revenue15,023 13,560 12,507 Net interest income6,555 6,267 5,241 Total net revenue21,578 19,827 17,748 Provision for credit losses(68)159 128 Noninterest expenseCompensation expense7,984 7,115 6,336 Noncompensation expense6,430 5,665 5,493 Total noninterest expense14,414 12,780 11,829 Income before income tax expense7,232 6,888 5,791 Income tax expense1,811 1,661 1,426 Net income$5,421 $5,227 $4,365 Revenue by line of businessAsset Management $10,175 $9,129 $8,818 Global Private Bank11,403 10,698 8,930 Total net revenue$21,578 $19,827 $17,748 Financial ratiosReturn on equity34 %31 %25 %Overhead ratio67 64 67 Pre-tax margin ratio:Asset Management31 31 30 Global Private Bank35 38 35 Asset & Wealth Management34 35 33 (a) (a)(b) (a)Includes the amortization of the fair value discount on certain acquired lending-related commitments associated with First Republic. The discount is deferred in other liabilities and recognized on a straight-line basis over the commitment period and was largely recognized in 2023 as the commitments were generally short term. Refer to Note 34 for additional information. (b)Includes the gain on the original minority interest in CIFM upon the Firm's acquisition of the remaining 51% interest in the entity. 2024 compared with 2023Net income was $5.4 billion, up 4%.Net revenue was $21.6 billion, up 9%. Net interest income was $6.6 billion, up 5%. Noninterest revenue was $15.0 billion, up 11%.Revenue from Asset Management was $10.2 billion, up 11%, driven by: •higher asset management fees, reflecting higher average market levels and strong net inflows, as well as•higher performance fees.The prior year included a gain of $339 million on the original minority interest in CIFM upon the Firm's acquisition of the remaining 51% interest in the entity.Revenue from Global Private Bank was $11.4 billion, up 7%, driven by: •higher noninterest revenue, reflecting:-higher management fees on strong net inflows and higher average market levels, as well as higher brokerage fees, partially offset by-a decline in the amortization of the fair value discount on certain acquired lending-related commitments associated with First Republic that have expired, and•higher net interest income driven by:-higher average deposits associated with First Republic, which were transferred to AWM from CCB in the fourth quarter of 2023, as well as wider spreads on loans and higher average loans, largely offset by-deposit margin compression reflecting higher rates paid.The prior year included net investment valuation losses. Noninterest expense was $14.4 billion, up 13%, predominantly driven by:•higher compensation, including revenue-related compensation, and continued growth in private banking advisor teams, and•higher distribution fees and legal expense,The provision for credit losses was a net benefit of $68 million. The provision in the prior year was $159 million, reflecting a $146 million addition to the allowance for credit losses to establish the allowance for the First Republic loans and lending-related commitments in the second quarter of 2023. **Current (2026):** Selected income statement dataYear ended December 31,(in millions, except ratios)202520242023RevenueAsset management fees$15,494 $13,693 $11,826 Commissions and other fees1,184 874 697 All other income(a)563 456 1,037 (b)Noninterest revenue17,241 15,023 13,560 Net interest income6,832 6,555 6,267 Total net revenue24,073 21,578 19,827 Provision for credit losses97 (68)159 Noninterest expenseCompensation expense8,645 7,984 7,115 Noncompensation expense6,687 6,430 5,665 Total noninterest expense15,332 14,414 12,780 Income before income tax expense8,644 7,232 6,888 Income tax expense2,122 1,811 1,661 Net income$6,522 $5,421 $5,227 Revenue by line of businessAsset Management $11,700 $10,175 $9,129 Global Private Bank12,373 11,403 10,698 Total net revenue$24,073 $21,578 $19,827 Financial ratiosReturn on equity40 %34 %31 %Overhead ratio64 67 64 Pre-tax margin ratio:Asset Management35 31 31 Global Private Bank37 35 38 Asset & Wealth Management36 34 35 All other income(a) (b) % (a)Includes the amortization of the fair value discount on certain acquired lending-related commitments associated with First Republic. The discount, which is deferred in other liabilities and recognized on a straight-line basis over the commitment period, continues to decline as commitments expire. (b)Includes the gain on the original minority interest in China International Fund Management ("CIFM") upon the Firm's acquisition of the remaining 51% interest in the entity. 2025 compared with 2024Net income was $6.5 billion, up 20%.Net revenue was $24.1 billion, up 12%. Net interest income was $6.8 billion, up 4%. Noninterest revenue was $17.2 billion, up 15%.Revenue from Asset Management was $11.7 billion, up 15%, predominantly driven by: •higher asset management fees, reflecting strong net inflows and higher average market levels,•higher investment valuation gains, and•performance fees.Revenue from Global Private Bank was $12.4 billion, up 9%, driven by: •higher noninterest revenue, reflecting:-higher management fees due to strong net inflows and higher average market levels, as well as higher brokerage commissions, partially offset by-a decline in the amortization of the fair value discount on certain acquired lending-related commitments associated with First Republic that have expired, and•higher net interest income, driven by higher average loans and deposits, largely offset by narrower spreads on loans. Noninterest expense was $15.3 billion, up 6%, driven by:•higher compensation, primarily higher revenue-related compensation and continued growth in private banking advisor teams, as well as higher distribution fees,partially offset by• lower legal expense.The provision for credit losses was $97 million, largely driven by the impact of a charge-off related to a client-specific exposure in the third quarter of 2025. Net charge-offs were $92 million and the net addition to the allowance for credit losses was $5 million. In the prior year, the provision was a net benefit of $68 million. --- ## Modified Risk: Year ended December 31, 2025 **Key changes:** - Updated: "(in millions, except ratios) Extended loans by a weighted-average of 14 months NM Other(a) NM (a) Includes a loan with a single modification." **Prior (2025):** Extended loans by a weighted-average of 28 months Provided payment deferrals with delayed amounts recaptured at maturity and extended loans by a weighted-average of 6 months Other(a) NM (a) Includes loans with a single modification. OtherYear ended December 31, 2023(in millions, except ratios)Amortized cost basis% of loan modifications to total retained Other loansFinancial effect of loan modificationsSingle modificationsTerm extension$355 0.10 %Extended loans by a weighted-average of 23 monthsMultiple modificationsOther-than-insignificant payment deferral and term extension2450.07 Provided payment deferrals with delayed amounts primarily recaptured at the end of the deferral period and extended loans by a weighted-average of 137 monthsOther(a)$9 - NMTotal$609 Extended loans by a weighted-average of 23 months Provided payment deferrals with delayed amounts primarily recaptured at the end of the deferral period and extended loans by a weighted-average of 137 months Other(a) (a) Includes a loan with a single modification. 264JPMorgan Chase & Co./2024 Form 10-K 264JPMorgan Chase & Co./2024 Form 10-K 264JPMorgan Chase & Co./2024 Form 10-K 264 JPMorgan Chase & Co./2024 Form 10-K Payment status of FDMs The following table provides information on the payment status of retained wholesale FDMs during the year ended December 31, 2024 and 2023. Amortized cost basisSecured by real estateCommercial and industrialOtherSecured by real estateCommercial and industrialOther(in millions)Year ended December 31, 2024Year ended December 31, 2023Current and less than 30 days past due and still accruing$264 $1,215 $240 $118 $947 $400 30-89 days past due and still accruing3 13 9 2 42 - Criticized nonaccrual87 672 26 40 374 209 Total$354 $1,900 $275 $160 $1,363 $609 **Current (2026):** (in millions, except ratios) Extended loans by a weighted-average of 14 months NM Other(a) NM (a) Includes a loan with a single modification. OtherYear ended December 31, 2024(in millions, except ratios)Amortized cost basis% of loan modifications to total retained Other loansFinancial effect of loan modificationsSingle modificationsTerm extension$268 0.07 %Extended loans by a weighted-average of 28 monthsMultiple modificationsOther-than-insignificant payment deferral and term extension2 - NMOther(a)5 - NMTotal$275 Year ended December 31, 2024 (in millions, except ratios) Extended loans by a weighted-average of 28 months NM Other(a) (a) Includes loans with a single modification. OtherYear ended December 31, 2023(in millions, except ratios)Amortized cost basis% of loan modifications to total retained Other loansFinancial effect of loan modificationsSingle modificationsTerm extension$355 0.10 % Extended loans by a weighted-average of 23 monthsMultiple modificationsOther-than-insignificant payment deferral and term extension2450.07 Provided payment deferrals with delayed amounts primarily recaptured at the end of the deferral period and extended loans by a weighted-average of 137 monthsOther(a)9 - NMTotal$609 Extended loans by a weighted-average of 23 months Provided payment deferrals with delayed amounts primarily recaptured at the end of the deferral period and extended loans by a weighted-average of 137 months Other(a) (a) Includes a loan with a single modification. 256JPMorgan Chase & Co./2025 Form 10-K 256JPMorgan Chase & Co./2025 Form 10-K 256JPMorgan Chase & Co./2025 Form 10-K 256 JPMorgan Chase & Co./2025 Form 10-K Payment status of FDMs The following table provides information on the payment status of retained wholesale FDMs during the years ended December 31, 2025, 2024 and 2023. Year ended December 31,(in millions)Amortized cost basisSecured by real estateCommercial and industrialOther202520242023202520242023202520242023Current and less than 30 days past due and still accruing$377 $264 $118 $1,669 $1,215 $947 $115 $240 $400 30-89 days past due and still accruing - 3 2 7 13 42 - 9 - Criticized nonaccrual438 87 40 786 672 374 12 26 209 Total$815 $354 $160 $2,462 $1,900 $1,363 $127 $275 $609 Year ended December 31, (in millions) Defaults of FDMs The following table provides information on defaults of retained wholesale FDMs that had been modified within twelve months during the years ended December 31, 2025, 2024 and 2023. Year ended December 31,(in millions)Amortized cost basisSecured by real estateCommercial and industrialOther202520242023202520242023202520242023Term extension$173 $3 $1 $57 $92 $49 $3 $22 $31 Other-than-insignificant payment deferral - - 2 5 118 - - - - Interest rate reduction and term extension - - 3 3 - 1 - - - Total(a)$173 $3 $6 $65 $210 $50 $3 $22 $31 Year ended December 31, (in millions) Total(a) (a)Represents FDMs that were 30 days or more past due. As of December 31, 2025 and 2024, additional unfunded commitments on modified loans to borrowers experiencing financial difficulty were $2.8 billion and $1.8 billion, respectively, in Commercial and industrial, and $73 million and $69 million, respectively, in Other. Additional unfunded commitments on modified loans to borrowers experiencing financial difficulty whose loans have been modified as FDMs in Secured by real estate were not material at both periods. JPMorgan Chase & Co./2025 Form 10-K257 JPMorgan Chase & Co./2025 Form 10-K257 JPMorgan Chase & Co./2025 Form 10-K257 JPMorgan Chase & Co./2025 Form 10-K 257 --- ## Modified Risk: Resolving an investigation by a governmental authority could subject JPMorganChase to significant penalties and other repercussions. **Key changes:** - Updated: "Governmental authorities conduct both routine and targeted examinations of JPMorganChase and its subsidiaries, and JPMorganChase's businesses and operations are subject to heightened regulatory oversight." **Prior (2025):** JPMorganChase is subject to heightened oversight and scrutiny from regulatory authorities in many jurisdictions. JPMorganChase has paid significant fines, provided other monetary relief, incurred other 12 12 12 12 penalties and experienced other repercussions in connection with resolving investigations and enforcement actions by governmental agencies. JPMorganChase could become subject to similar regulatory or governmental resolutions or other actions in the future, and addressing the requirements of any such resolutions or actions could result in JPMorganChase incurring higher operational and compliance costs, including devoting substantial resources to the required remediation or needing to comply with other restrictions. In connection with resolving specific regulatory investigations or enforcement actions, certain regulators have required JPMorganChase and other financial institutions to admit wrongdoing with respect to the activities that gave rise to the resolution. These types of admissions can lead to:•greater exposure in litigation•damage to JPMorganChase's reputation•disqualification from doing business with certain clients or customers, or in specific jurisdictions, or•other direct and indirect adverse effects.Furthermore, government officials in the U.S. and other countries have demonstrated a willingness to bring criminal actions against financial institutions and have required that institutions plead guilty to criminal offenses or admit other wrongdoing in connection with resolving regulatory investigations or enforcement actions. Resolutions of this type can have significant collateral consequences for the subject financial institution, including:•loss of clients, customers and business•restrictions on offering certain products or services, and •losing permission to operate certain businesses, either temporarily or permanently.JPMorganChase expects that: •it and other financial services firms will continue to be subject to heightened regulatory scrutiny and governmental investigations and enforcement actions•governmental authorities will continue to require that financial institutions be penalized for actual or deemed violations of law with formal and punitive enforcement actions, including the imposition of significant monetary and other sanctions, rather than resolving these matters through informal supervisory actions, and •governmental authorities will be more likely to pursue formal enforcement actions and resolutions against JPMorganChase to the extent that it has previously been subject to other governmental investigations or enforcement actions.If JPMorganChase fails to meet the requirements of any resolution of a governmental investigation or enforcement action, or to maintain risk and control processes that meet the heightened standards and expectations of its regulators, it could be required to, among other things:•enter into further resolutions of investigations or enforcement actions•pay additional regulatory penalties or enter into judgments, or•accept material regulatory restrictions on, or changes in the management of, its businesses.In these circumstances, JPMorganChase could also become subject to other sanctions, or to prosecution or civil litigation with respect to the conduct that gave rise to an investigation or enforcement action. In addition, JPMorganChase can be subject to higher costs or requests for additional capital in connection with the resolution of governmental investigations and enforcement actions involving newly-acquired businesses, companies in which JPMorganChase has made principal investments, parties to joint ventures with JPMorganChase, and vendors with which JPMorganChase does business.JPMorganChase's operations and financial results can be negatively impacted in jurisdictions with less predictable legal and regulatory frameworks.JPMorganChase conducts existing and new business in certain countries, states, municipalities, territories and other jurisdictions in which the application of the rule of law is inconsistent, extralegal or less predictable, including with respect to:•the absence of a statutory or regulatory basis or guidance for engaging in specific types of business or transactions•conflicting or ambiguous laws, rules, regulations and judicial orders, or the inconsistent application or interpretation of existing laws, rules, regulations and judicial precedents•actions by or at the direction of government officials or agencies•uncertainty concerning the enforceability of intellectual property rights or contractual or other obligations•difficulty in competing in economies in which the government controls or protects all or a portion of the local economy or specific businesses, or where graft or corruption may be pervasive •the threat of regulatory investigations, civil litigations or criminal prosecutions that are arbitrary or otherwise contrary to established legal principles in other parts of the world, and penalties and experienced other repercussions in connection with resolving investigations and enforcement actions by governmental agencies. JPMorganChase could become subject to similar regulatory or governmental resolutions or other actions in the future, and addressing the requirements of any such resolutions or actions could result in JPMorganChase incurring higher operational and compliance costs, including devoting substantial resources to the required remediation or needing to comply with other restrictions. In connection with resolving specific regulatory investigations or enforcement actions, certain regulators have required JPMorganChase and other financial institutions to admit wrongdoing with respect to the activities that gave rise to the resolution. These types of admissions can lead to:•greater exposure in litigation•damage to JPMorganChase's reputation•disqualification from doing business with certain clients or customers, or in specific jurisdictions, or•other direct and indirect adverse effects.Furthermore, government officials in the U.S. and other countries have demonstrated a willingness to bring criminal actions against financial institutions and have required that institutions plead guilty to criminal offenses or admit other wrongdoing in connection with resolving regulatory investigations or enforcement actions. Resolutions of this type can have significant collateral consequences for the subject financial institution, including:•loss of clients, customers and business•restrictions on offering certain products or services, and •losing permission to operate certain businesses, either temporarily or permanently.JPMorganChase expects that: •it and other financial services firms will continue to be subject to heightened regulatory scrutiny and governmental investigations and enforcement actions•governmental authorities will continue to require that financial institutions be penalized for actual or deemed violations of law with formal and punitive enforcement actions, including the imposition of significant monetary and other sanctions, rather than resolving these matters through informal supervisory actions, and •governmental authorities will be more likely to pursue formal enforcement actions and resolutions against JPMorganChase to the extent that it has previously been subject to other governmental investigations or enforcement actions. penalties and experienced other repercussions in connection with resolving investigations and enforcement actions by governmental agencies. JPMorganChase could become subject to similar regulatory or governmental resolutions or other actions in the future, and addressing the requirements of any such resolutions or actions could result in JPMorganChase incurring higher operational and compliance costs, including devoting substantial resources to the required remediation or needing to comply with other restrictions. In connection with resolving specific regulatory investigations or enforcement actions, certain regulators have required JPMorganChase and other financial institutions to admit wrongdoing with respect to the activities that gave rise to the resolution. These types of admissions can lead to: •greater exposure in litigation •damage to JPMorganChase's reputation •disqualification from doing business with certain clients or customers, or in specific jurisdictions, or •other direct and indirect adverse effects. Furthermore, government officials in the U.S. and other countries have demonstrated a willingness to bring criminal actions against financial institutions and have required that institutions plead guilty to criminal offenses or admit other wrongdoing in connection with resolving regulatory investigations or enforcement actions. Resolutions of this type can have significant collateral consequences for the subject financial institution, including: •loss of clients, customers and business •restrictions on offering certain products or services, and •losing permission to operate certain businesses, either temporarily or permanently. JPMorganChase expects that: •it and other financial services firms will continue to be subject to heightened regulatory scrutiny and governmental investigations and enforcement actions •governmental authorities will continue to require that financial institutions be penalized for actual or deemed violations of law with formal and punitive enforcement actions, including the imposition of significant monetary and other sanctions, rather than resolving these matters through informal supervisory actions, and •governmental authorities will be more likely to pursue formal enforcement actions and resolutions against JPMorganChase to the extent that it has previously been subject to other governmental investigations or enforcement actions. If JPMorganChase fails to meet the requirements of any resolution of a governmental investigation or enforcement action, or to maintain risk and control processes that meet the heightened standards and expectations of its regulators, it could be required to, among other things:•enter into further resolutions of investigations or enforcement actions•pay additional regulatory penalties or enter into judgments, or•accept material regulatory restrictions on, or changes in the management of, its businesses.In these circumstances, JPMorganChase could also become subject to other sanctions, or to prosecution or civil litigation with respect to the conduct that gave rise to an investigation or enforcement action. In addition, JPMorganChase can be subject to higher costs or requests for additional capital in connection with the resolution of governmental investigations and enforcement actions involving newly-acquired businesses, companies in which JPMorganChase has made principal investments, parties to joint ventures with JPMorganChase, and vendors with which JPMorganChase does business.JPMorganChase's operations and financial results can be negatively impacted in jurisdictions with less predictable legal and regulatory frameworks.JPMorganChase conducts existing and new business in certain countries, states, municipalities, territories and other jurisdictions in which the application of the rule of law is inconsistent, extralegal or less predictable, including with respect to:•the absence of a statutory or regulatory basis or guidance for engaging in specific types of business or transactions•conflicting or ambiguous laws, rules, regulations and judicial orders, or the inconsistent application or interpretation of existing laws, rules, regulations and judicial precedents•actions by or at the direction of government officials or agencies•uncertainty concerning the enforceability of intellectual property rights or contractual or other obligations•difficulty in competing in economies in which the government controls or protects all or a portion of the local economy or specific businesses, or where graft or corruption may be pervasive •the threat of regulatory investigations, civil litigations or criminal prosecutions that are arbitrary or otherwise contrary to established legal principles in other parts of the world, and If JPMorganChase fails to meet the requirements of any resolution of a governmental investigation or enforcement action, or to maintain risk and control processes that meet the heightened standards and expectations of its regulators, it could be required to, among other things: •enter into further resolutions of investigations or enforcement actions •pay additional regulatory penalties or enter into judgments, or •accept material regulatory restrictions on, or changes in the management of, its businesses. In these circumstances, JPMorganChase could also become subject to other sanctions, or to prosecution or civil litigation with respect to the conduct that gave rise to an investigation or enforcement action. In addition, JPMorganChase can be subject to higher costs or requests for additional capital in connection with the resolution of governmental investigations and enforcement actions involving newly-acquired businesses, companies in which JPMorganChase has made principal investments, parties to joint ventures with JPMorganChase, and vendors with which JPMorganChase does business. **Current (2026):** Governmental authorities conduct both routine and targeted examinations of JPMorganChase and its subsidiaries, and JPMorganChase's businesses and operations are subject to heightened regulatory oversight. This scrutiny, or the results of such an examination, could lead to legal proceedings, including investigations or enforcement actions by governmental authorities. Furthermore, a single event involving a potential violation of applicable law could give rise to numerous and overlapping proceedings, including by multiple governmental authorities in the U.S. as well as non-U.S. authorities. In addition, if another financial institution violates applicable law relating to a particular business activity or practice, this will often give rise to legal proceedings related to the same or similar activity or practice by JPMorganChase. JPMorganChase has in the past incurred significant penalties and experienced collateral consequences and other repercussions in connection with resolving investigations and enforcement actions by governmental authorities, and it could face similar investigations, actions and resolutions in the future. JPMorganChase typically incurs higher operational and compliance costs when addressing the requirements of such resolutions, including devoting substantial resources to remediation. In connection with resolving specific investigations or enforcement actions, certain governmental authorities have required JPMorganChase and other financial institutions to admit wrongdoing with respect to the activities that gave rise to the resolution. These types of admissions could lead to negative consequences such as: •disqualification from doing business with certain clients or customers, or in specific jurisdictions •greater exposure in litigation, and •reputational harm. Furthermore, government officials globally have increasingly brought criminal actions against financial institutions and required those institutions to plead guilty to criminal offenses in connection with resolving investigations or enforcement actions by governmental authorities. These resolutions could have significant 11 11 11 11 Part I Part I collateral consequences for the subject financial institution, including:•loss of clients, customers and business•restrictions on offering certain products or services, and•loss of permission to operate certain businesses, either temporarily or permanently.JPMorganChase expects that the following trends will continue:•it will be subject to heightened regulatory scrutiny and pervasive investigations and enforcement actions by governmental authorities, as well as criticism or litigation from clients or customers who claim that they have been harmed by actions taken by JPMorganChase in order to comply with applicable law•governmental authorities will forgo opportunities to resolve investigations with informal supervisory actions, and will pursue formal and punitive enforcement actions with respect to actual or deemed violations of law•resolutions of investigations and enforcement actions will result in the imposition of significant penalties, and•governmental authorities will be more likely to bring formal enforcement actions against JPMorganChase if it has previously been subject to other investigations or enforcement actions by governmental authorities.When resolving an investigation or enforcement action by a governmental authority, the subject financial institution typically must satisfy new or enhanced regulatory requirements or restrictions. If JPMorganChase fails to meet the requirements of any such resolution, or to maintain risk and control processes that meet the heightened expectations of its regulators, it could be required to, among other things:•enter into further resolutions •incur additional penalties or judgments, or•accept material restrictions on, or changes in the management of, its businesses.In these circumstances, JPMorganChase could also become subject to prosecution or civil litigation with respect to the matters that gave rise to an investigation or enforcement action. In addition, JPMorganChase could incur higher costs when resolving investigations and enforcement actions involving newly-acquired businesses, companies in which JPMorganChase has made principal investments, parties to joint ventures with JPMorganChase, and vendors with which JPMorganChase does business.As a participant in the financial services industry, it is likely that JPMorganChase will continue to experience a high level of litigation and investigations by governmental authorities related to its businesses and operations. In addition, JPMorganChase could become subject to a significant investigation by governmental authorities and be unable to disclose specific information concerning that investigation to the public if such a disclosure would violate JPMorganChase's obligations under applicable law to maintain confidentiality, even if the resolution of that investigation could have a material adverse effect on JPMorganChase's business, operations, results or financial condition.JPMorganChase's compliance risk and operating costs could be higher in jurisdictions with less predictable legal, regulatory and judicial frameworks.JPMorganChase conducts business in certain jurisdictions in which the application of the rule of law is inconsistent, extralegal or less predictable, including with respect to:•the absence of a statutory, regulatory or interpretative basis for engaging in specific types of business or transactions•applicable law or judicial orders that are ambiguous, conflicting, or inconsistently applied or interpreted •actions by or at the direction of governmental authorities or officials•uncertainty concerning the enforceability of intellectual property rights or contractual or other obligations•challenges associated with competing in economies in which the government controls or protects all or a portion of the local economy or specific businesses, or where graft or corruption may be pervasive•the threat of investigations by governmental authorities, civil litigations or criminal prosecutions that are arbitrary or otherwise contrary to established legal principles in other parts of the world, and•the termination of licenses or other permissions required to operate in the relevant jurisdiction, or the suspension of business relationships with governmental entities, leading to lost revenue.If the legal, regulatory or judicial framework in a particular jurisdiction is susceptible to producing outcomes that are inconsistent, unexpected or contrary to established legal principles, this could create a more difficult business environment for JPMorganChase and could negatively affect its operations and reduce its earnings with respect to that jurisdiction. In addition, conducting business in a jurisdiction with a less predictable legal, regulatory or judicial framework could require JPMorganChase to devote significant additional resources to understanding, and operating its businesses in compliance with, applicable law and judicial precedents in that jurisdiction, and there can be no assurance that JPMorganChase will always be successful in doing so. collateral consequences for the subject financial institution, including:•loss of clients, customers and business•restrictions on offering certain products or services, and•loss of permission to operate certain businesses, either temporarily or permanently.JPMorganChase expects that the following trends will continue:•it will be subject to heightened regulatory scrutiny and pervasive investigations and enforcement actions by governmental authorities, as well as criticism or litigation from clients or customers who claim that they have been harmed by actions taken by JPMorganChase in order to comply with applicable law•governmental authorities will forgo opportunities to resolve investigations with informal supervisory actions, and will pursue formal and punitive enforcement actions with respect to actual or deemed violations of law•resolutions of investigations and enforcement actions will result in the imposition of significant penalties, and•governmental authorities will be more likely to bring formal enforcement actions against JPMorganChase if it has previously been subject to other investigations or enforcement actions by governmental authorities.When resolving an investigation or enforcement action by a governmental authority, the subject financial institution typically must satisfy new or enhanced regulatory requirements or restrictions. If JPMorganChase fails to meet the requirements of any such resolution, or to maintain risk and control processes that meet the heightened expectations of its regulators, it could be required to, among other things:•enter into further resolutions •incur additional penalties or judgments, or•accept material restrictions on, or changes in the management of, its businesses.In these circumstances, JPMorganChase could also become subject to prosecution or civil litigation with respect to the matters that gave rise to an investigation or enforcement action. In addition, JPMorganChase could incur higher costs when resolving investigations and enforcement actions involving newly-acquired businesses, companies in which JPMorganChase has made principal investments, parties to joint ventures with JPMorganChase, and vendors with which JPMorganChase does business.As a participant in the financial services industry, it is likely that JPMorganChase will continue to experience a high level of litigation and investigations by collateral consequences for the subject financial institution, including: •loss of clients, customers and business •restrictions on offering certain products or services, and •loss of permission to operate certain businesses, either temporarily or permanently. JPMorganChase expects that the following trends will continue: •it will be subject to heightened regulatory scrutiny and pervasive investigations and enforcement actions by governmental authorities, as well as criticism or litigation from clients or customers who claim that they have been harmed by actions taken by JPMorganChase in order to comply with applicable law •governmental authorities will forgo opportunities to resolve investigations with informal supervisory actions, and will pursue formal and punitive enforcement actions with respect to actual or deemed violations of law •resolutions of investigations and enforcement actions will result in the imposition of significant penalties, and •governmental authorities will be more likely to bring formal enforcement actions against JPMorganChase if it has previously been subject to other investigations or enforcement actions by governmental authorities. When resolving an investigation or enforcement action by a governmental authority, the subject financial institution typically must satisfy new or enhanced regulatory requirements or restrictions. If JPMorganChase fails to meet the requirements of any such resolution, or to maintain risk and control processes that meet the heightened expectations of its regulators, it could be required to, among other things: •enter into further resolutions •incur additional penalties or judgments, or •accept material restrictions on, or changes in the management of, its businesses. In these circumstances, JPMorganChase could also become subject to prosecution or civil litigation with respect to the matters that gave rise to an investigation or enforcement action. In addition, JPMorganChase could incur higher costs when resolving investigations and enforcement actions involving newly-acquired businesses, companies in which JPMorganChase has made principal investments, parties to joint ventures with JPMorganChase, and vendors with which JPMorganChase does business. As a participant in the financial services industry, it is likely that JPMorganChase will continue to experience a high level of litigation and investigations by governmental authorities related to its businesses and operations. In addition, JPMorganChase could become subject to a significant investigation by governmental authorities and be unable to disclose specific information concerning that investigation to the public if such a disclosure would violate JPMorganChase's obligations under applicable law to maintain confidentiality, even if the resolution of that investigation could have a material adverse effect on JPMorganChase's business, operations, results or financial condition.JPMorganChase's compliance risk and operating costs could be higher in jurisdictions with less predictable legal, regulatory and judicial frameworks.JPMorganChase conducts business in certain jurisdictions in which the application of the rule of law is inconsistent, extralegal or less predictable, including with respect to:•the absence of a statutory, regulatory or interpretative basis for engaging in specific types of business or transactions•applicable law or judicial orders that are ambiguous, conflicting, or inconsistently applied or interpreted •actions by or at the direction of governmental authorities or officials•uncertainty concerning the enforceability of intellectual property rights or contractual or other obligations•challenges associated with competing in economies in which the government controls or protects all or a portion of the local economy or specific businesses, or where graft or corruption may be pervasive•the threat of investigations by governmental authorities, civil litigations or criminal prosecutions that are arbitrary or otherwise contrary to established legal principles in other parts of the world, and•the termination of licenses or other permissions required to operate in the relevant jurisdiction, or the suspension of business relationships with governmental entities, leading to lost revenue.If the legal, regulatory or judicial framework in a particular jurisdiction is susceptible to producing outcomes that are inconsistent, unexpected or contrary to established legal principles, this could create a more difficult business environment for JPMorganChase and could negatively affect its operations and reduce its earnings with respect to that jurisdiction. In addition, conducting business in a jurisdiction with a less predictable legal, regulatory or judicial framework could require JPMorganChase to devote significant additional resources to understanding, and operating its businesses in compliance with, applicable law and judicial precedents in that jurisdiction, and there can be no assurance that JPMorganChase will always be successful in doing so. governmental authorities related to its businesses and operations. In addition, JPMorganChase could become subject to a significant investigation by governmental authorities and be unable to disclose specific information concerning that investigation to the public if such a disclosure would violate JPMorganChase's obligations under applicable law to maintain confidentiality, even if the resolution of that investigation could have a material adverse effect on JPMorganChase's business, operations, results or financial condition. --- ## Modified Risk: Glossary of Terms and Acronyms **Key changes:** - Updated: "strategic plans of the Firm." - Updated: "Federal Reserve: The Board of the Governors of the Federal Reserve System FFIEC: Federal Financial Institutions Examination Council FHA: Federal Housing Administration FHLB: Federal Home Loan Bank FICC: The Fixed Income Clearing Corporation FICO score: A measure of consumer credit risk based on information in consumer credit reports produced by Fair Isaac Corporation." - Updated: "HQLA: High-quality liquid assets." - Updated: "IPO: Initial public offeringIR: Interest rateISDA: International Swaps and Derivatives Association JPMorganChase: JPMorgan Chase & Co." - Updated: "Federal Reserve: The Board of the Governors of the Federal Reserve System FFIEC: Federal Financial Institutions Examination Council FHA: Federal Housing Administration FHLB: Federal Home Loan Bank FICC: The Fixed Income Clearing Corporation FICO score: A measure of consumer credit risk based on information in consumer credit reports produced by Fair Isaac Corporation." **Prior (2025):** to occur when the Firm modifies specific terms of the original loan agreement. The following types of modifications are considered FDMs: principal forgiveness, interest rate reduction, other-than-insignificant payment delay, term extension or a combination of these modifications. Federal Reserve: The Board of the Governors of the Federal Reserve System FFIEC: Federal Financial Institutions Examination Council FHA: Federal Housing Administration FHLB: Federal Home Loan Bank FICC: The Fixed Income Clearing Corporation FICO score: A measure of consumer credit risk provided by credit bureaus, typically produced from statistical models by Fair Isaac Corporation utilizing data collected by the credit bureaus. FINRA: Financial Industry Regulatory AuthorityFirm: JPMorgan Chase & Co.Forward points: Represents the interest rate differential between two currencies, which is either added to or subtracted from the current exchange rate (i.e., "spot rate") to determine the forward exchange rate.FRC: Firmwide Risk CommitteeFreddie Mac: Federal Home Loan Mortgage CorporationFree standing derivatives: a derivative contract entered into either separate and apart from any of the Firm's other financial instruments or equity transactions. Or, in conjunction with some other transaction and is legally detachable and separately exercisable.FSB: Financial Stability BoardFTE: Fully taxable equivalentFVA: Funding valuation adjustment FX: Foreign exchange G7: Group of Seven nations: Countries in the G7 are Canada, France, Germany, Italy, Japan, the U.K. and the U.S. G7 government securities: Securities issued by the government of one of the G7 nations. Ginnie Mae: Government National Mortgage Association GSIB: Global systemically important banks HELOC: Home equity line of credit Home equity - senior lien: Represents loans and commitments where JPMorganChase holds the first security interest on the property. Home equity - junior lien: Represents loans and commitments where JPMorganChase holds a security interest that is subordinate in rank to other liens. HQLA: "High-quality liquid assets" consist of cash and certain high-quality liquid securities as defined in the LCR rule.HTM: Held-to-maturity IBOR: Interbank Offered RateICAAP: Internal capital adequacy assessment processIDI: Insured depository institutions IHC: JPMorgan Chase Holdings LLC, an intermediate holding companyIndirect tax expense: Refers to taxes that are imposed on goods and services rather than on income. Examples of indirect taxes include value-added tax ("VAT") and sales tax, among others.Investment-grade: An indication of credit quality based on JPMorganChase's internal risk assessment. The Firm considers ratings of BBB-/Baa3 or higher as investment-grade. IPO: Initial public offeringISDA: International Swaps and Derivatives Association JPMorganChase: JPMorgan Chase & Co. JPMorgan Chase Bank, N.A.: JPMorgan Chase Bank, National Association JPMorgan Chase Foundation or the Firm's Foundation: A not-for-profit organization that makes contributions for charitable and educational purposes.J.P. Morgan Securities: J.P. Morgan Securities LLCJPMSE: J.P. Morgan SELCR: Liquidity coverage ratio LDA: Loss Distribution ApproachLGD: Loss given default LIBOR: London Interbank Offered Rate LLC: Limited Liability Company LOB: Line of businessLOB CROs: Line of Business and CTC Chief Risk OfficersLTIP: Long-term incentive plan LTV: "Loan-to-value": For residential real estate loans, the relationship, expressed as a percentage, between the principal amount of a loan and the appraised value of the collateral (i.e., residential real estate) securing the loan. Origination date LTV ratio The LTV ratio at the origination date of the loan. Origination date LTV ratios are calculated based on the actual appraised values of collateral (i.e., loan-level data) at the origination date. Current estimated LTV ratioAn estimate of the LTV as of a certain date. The current estimated LTV ratios are calculated using estimated collateral values derived from a nationally recognized to occur when the Firm modifies specific terms of the original loan agreement. The following types of modifications are considered FDMs: principal forgiveness, interest rate reduction, other-than-insignificant payment delay, term extension or a combination of these modifications. Federal Reserve: The Board of the Governors of the Federal Reserve System FFIEC: Federal Financial Institutions Examination Council FHA: Federal Housing Administration FHLB: Federal Home Loan Bank FICC: The Fixed Income Clearing Corporation FICO score: A measure of consumer credit risk provided by credit bureaus, typically produced from statistical models by Fair Isaac Corporation utilizing data collected by the credit bureaus. FINRA: Financial Industry Regulatory AuthorityFirm: JPMorgan Chase & Co.Forward points: Represents the interest rate differential between two currencies, which is either added to or subtracted from the current exchange rate (i.e., "spot rate") to determine the forward exchange rate.FRC: Firmwide Risk CommitteeFreddie Mac: Federal Home Loan Mortgage CorporationFree standing derivatives: a derivative contract entered into either separate and apart from any of the Firm's other financial instruments or equity transactions. Or, in conjunction with some other transaction and is legally detachable and separately exercisable.FSB: Financial Stability BoardFTE: Fully taxable equivalentFVA: Funding valuation adjustment FX: Foreign exchange G7: Group of Seven nations: Countries in the G7 are Canada, France, Germany, Italy, Japan, the U.K. and the U.S. G7 government securities: Securities issued by the government of one of the G7 nations. Ginnie Mae: Government National Mortgage Association GSIB: Global systemically important banks HELOC: Home equity line of credit Home equity - senior lien: Represents loans and commitments where JPMorganChase holds the first security interest on the property. Home equity - junior lien: Represents loans and commitments where JPMorganChase holds a security to occur when the Firm modifies specific terms of the original loan agreement. The following types of modifications are considered FDMs: principal forgiveness, interest rate reduction, other-than-insignificant payment delay, term extension or a combination of these modifications. Federal Reserve: The Board of the Governors of the Federal Reserve System FFIEC: Federal Financial Institutions Examination Council FHA: Federal Housing Administration FHLB: Federal Home Loan Bank FICC: The Fixed Income Clearing Corporation FICO score: A measure of consumer credit risk provided by credit bureaus, typically produced from statistical models by Fair Isaac Corporation utilizing data collected by the credit bureaus. FINRA: Financial Industry Regulatory Authority Firm: JPMorgan Chase & Co. Forward points: Represents the interest rate differential between two currencies, which is either added to or subtracted from the current exchange rate (i.e., "spot rate") to determine the forward exchange rate. FRC: Firmwide Risk Committee Freddie Mac: Federal Home Loan Mortgage Corporation Free standing derivatives: a derivative contract entered into either separate and apart from any of the Firm's other financial instruments or equity transactions. Or, in conjunction with some other transaction and is legally detachable and separately exercisable. FSB: Financial Stability Board FTE: Fully taxable equivalent FVA: Funding valuation adjustment FX: Foreign exchange G7: Group of Seven nations: Countries in the G7 are Canada, France, Germany, Italy, Japan, the U.K. and the U.S. G7 government securities: Securities issued by the government of one of the G7 nations. Ginnie Mae: Government National Mortgage Association GSIB: Global systemically important banks HELOC: Home equity line of credit Home equity - senior lien: Represents loans and commitments where JPMorganChase holds the first security interest on the property. Home equity - junior lien: Represents loans and commitments where JPMorganChase holds a security interest that is subordinate in rank to other liens. HQLA: "High-quality liquid assets" consist of cash and certain high-quality liquid securities as defined in the LCR rule.HTM: Held-to-maturity IBOR: Interbank Offered RateICAAP: Internal capital adequacy assessment processIDI: Insured depository institutions IHC: JPMorgan Chase Holdings LLC, an intermediate holding companyIndirect tax expense: Refers to taxes that are imposed on goods and services rather than on income. Examples of indirect taxes include value-added tax ("VAT") and sales tax, among others.Investment-grade: An indication of credit quality based on JPMorganChase's internal risk assessment. The Firm considers ratings of BBB-/Baa3 or higher as investment-grade. IPO: Initial public offeringISDA: International Swaps and Derivatives Association JPMorganChase: JPMorgan Chase & Co. JPMorgan Chase Bank, N.A.: JPMorgan Chase Bank, National Association JPMorgan Chase Foundation or the Firm's Foundation: A not-for-profit organization that makes contributions for charitable and educational purposes.J.P. Morgan Securities: J.P. Morgan Securities LLCJPMSE: J.P. Morgan SELCR: Liquidity coverage ratio LDA: Loss Distribution ApproachLGD: Loss given default LIBOR: London Interbank Offered Rate LLC: Limited Liability Company LOB: Line of businessLOB CROs: Line of Business and CTC Chief Risk OfficersLTIP: Long-term incentive plan LTV: "Loan-to-value": For residential real estate loans, the relationship, expressed as a percentage, between the principal amount of a loan and the appraised value of the collateral (i.e., residential real estate) securing the loan. Origination date LTV ratio The LTV ratio at the origination date of the loan. Origination date LTV ratios are calculated based on the actual appraised values of collateral (i.e., loan-level data) at the origination date. Current estimated LTV ratioAn estimate of the LTV as of a certain date. The current estimated LTV ratios are calculated using estimated collateral values derived from a nationally recognized interest that is subordinate in rank to other liens. HQLA: "High-quality liquid assets" consist of cash and certain high-quality liquid securities as defined in the LCR rule. HTM: Held-to-maturity IBOR: Interbank Offered Rate ICAAP: Internal capital adequacy assessment process IDI: Insured depository institutions IHC: JPMorgan Chase Holdings LLC, an intermediate holding company Indirect tax expense: Refers to taxes that are imposed on goods and services rather than on income. Examples of indirect taxes include value-added tax ("VAT") and sales tax, among others. Investment-grade: An indication of credit quality based on JPMorganChase's internal risk assessment. The Firm considers ratings of BBB-/Baa3 or higher as investment-grade. IPO: Initial public offering ISDA: International Swaps and Derivatives Association JPMorganChase: JPMorgan Chase & Co. JPMorgan Chase Bank, N.A.: JPMorgan Chase Bank, National Association JPMorgan Chase Foundation or the Firm's Foundation: A not-for-profit organization that makes contributions for charitable and educational purposes. J.P. Morgan Securities: J.P. Morgan Securities LLC JPMSE: J.P. Morgan SE LCR: Liquidity coverage ratio LDA: Loss Distribution Approach LGD: Loss given default LIBOR: London Interbank Offered Rate LLC: Limited Liability Company LOB: Line of business LOB CROs: Line of Business and CTC Chief Risk Officers LTIP: Long-term incentive plan LTV: "Loan-to-value": For residential real estate loans, the relationship, expressed as a percentage, between the principal amount of a loan and the appraised value of the collateral (i.e., residential real estate) securing the loan. **Current (2026):** strategic plans of the Firm. Examples include front office growth, market expansion, initiatives in technology (including related compensation), marketing, and acquisitions.•Structural expenses are those associated with the day-to-day cost of running the Firm and are expenses not included in the above two categories. Examples include employee salaries and benefits, certain other incentive compensation, and costs related to real estate.Fannie Mae: Federal National Mortgage Association FASB: Financial Accounting Standards Board FCA: Financial Conduct Authority FCC: Firmwide Control Committee FDIC: Federal Deposit Insurance CorporationFDM "Financial difficulty modification" applies to loan modifications effective January 1, 2023, and is deemed to occur when the Firm modifies specific terms of the original loan agreement. The following types of modifications are considered FDMs: principal forgiveness, interest rate reduction, other-than-insignificant payment delay, term extension or a combination of these modifications. Federal Reserve: The Board of the Governors of the Federal Reserve System FFIEC: Federal Financial Institutions Examination Council FHA: Federal Housing Administration FHLB: Federal Home Loan Bank FICC: The Fixed Income Clearing Corporation FICO score: A measure of consumer credit risk based on information in consumer credit reports produced by Fair Isaac Corporation. Because certain aged data is excluded from credit reports based on rules in the Fair Credit Reporting Act, FICO scores may not reflect all historical information about a consumer. FINRA: Financial Industry Regulatory AuthorityFirm: JPMorgan Chase & Co.First Republic: On May 1, 2023, JPMorganChase acquired certain assets and assumed certain liabilities of First Republic Bank (the "First Republic acquisition") from the FDIC. "First Republic-related," "associated with First Republic" or similar expressions refer to the relevant effects of the First Republic acquisition, as well as subsequent related business and activities, as applicable. Refer to Note 34 of the Firm's 2024 Form 10-K for additional information.Forward points: Represents the interest rate differential between two currencies, which is either added to or subtracted from the current exchange rate (i.e., "spot rate") to determine the forward exchange rate.FRC: Firmwide Risk CommitteeFreddie Mac: Federal Home Loan Mortgage CorporationFree standing derivatives: A derivative contract entered into either separate and apart from any of the Firm's other financial instruments or equity transactions. Or, in conjunction with some other transaction and is legally detachable and separately exercisable.FSB: Financial Stability BoardFTE: Fully taxable equivalentFVA: Funding valuation adjustment FX: Foreign exchange G7 Group of Seven nations: Countries in the G7 are Canada, France, Germany, Italy, Japan, the U.K. and the U.S. G7 government securities: Securities issued by the government of one of the G7 nations. Ginnie Mae: Government National Mortgage Association GSIB: Global systemically important banks HELOC: Home equity line of credit Home equity - senior lien: Represents loans and commitments where JPMorganChase holds the first security interest on the property. Home equity - junior lien: Represents loans and commitments where JPMorganChase holds a security interest that is subordinate in rank to other liens. HQLA: High-quality liquid assets. Also refer to Eligible HQLA.HTM: Held-to-maturity IBOR: Interbank Offered RateICAAP: Internal capital adequacy assessment processIDI: Insured depository institutions IHC: JPMorgan Chase Holdings LLC, an intermediate holding companyIndirect tax expense: Refers to taxes that are imposed on goods and services rather than on income. Examples of indirect taxes include value-added tax ("VAT") and sales tax, among others.Investment-grade: An indication of credit quality based on JPMorganChase's internal risk assessment. The Firm considers ratings of BBB-/Baa3 or higher as investment-grade. IPO: Initial public offeringIR: Interest rateISDA: International Swaps and Derivatives Association JPMorganChase: JPMorgan Chase & Co. strategic plans of the Firm. Examples include front office growth, market expansion, initiatives in technology (including related compensation), marketing, and acquisitions.•Structural expenses are those associated with the day-to-day cost of running the Firm and are expenses not included in the above two categories. Examples include employee salaries and benefits, certain other incentive compensation, and costs related to real estate.Fannie Mae: Federal National Mortgage Association FASB: Financial Accounting Standards Board FCA: Financial Conduct Authority FCC: Firmwide Control Committee FDIC: Federal Deposit Insurance CorporationFDM "Financial difficulty modification" applies to loan modifications effective January 1, 2023, and is deemed to occur when the Firm modifies specific terms of the original loan agreement. The following types of modifications are considered FDMs: principal forgiveness, interest rate reduction, other-than-insignificant payment delay, term extension or a combination of these modifications. Federal Reserve: The Board of the Governors of the Federal Reserve System FFIEC: Federal Financial Institutions Examination Council FHA: Federal Housing Administration FHLB: Federal Home Loan Bank FICC: The Fixed Income Clearing Corporation FICO score: A measure of consumer credit risk based on information in consumer credit reports produced by Fair Isaac Corporation. Because certain aged data is excluded from credit reports based on rules in the Fair Credit Reporting Act, FICO scores may not reflect all historical information about a consumer. FINRA: Financial Industry Regulatory AuthorityFirm: JPMorgan Chase & Co.First Republic: On May 1, 2023, JPMorganChase acquired certain assets and assumed certain liabilities of First Republic Bank (the "First Republic acquisition") from the FDIC. "First Republic-related," "associated with First Republic" or similar expressions refer to the relevant effects of the First Republic acquisition, as well as subsequent related business and activities, as applicable. Refer to Note 34 of the Firm's 2024 Form 10-K for additional information.Forward points: Represents the interest rate differential between two currencies, which is either added to or subtracted from the current exchange rate (i.e., "spot rate") to determine the forward exchange rate. strategic plans of the Firm. Examples include front office growth, market expansion, initiatives in technology (including related compensation), marketing, and acquisitions. •Structural expenses are those associated with the day-to-day cost of running the Firm and are expenses not included in the above two categories. Examples include employee salaries and benefits, certain other incentive compensation, and costs related to real estate. Fannie Mae: Federal National Mortgage Association FASB: Financial Accounting Standards Board FCA: Financial Conduct Authority FCC: Firmwide Control Committee FDIC: Federal Deposit Insurance Corporation FDM "Financial difficulty modification" applies to loan modifications effective January 1, 2023, and is deemed to occur when the Firm modifies specific terms of the original loan agreement. The following types of modifications are considered FDMs: principal forgiveness, interest rate reduction, other-than-insignificant payment delay, term extension or a combination of these modifications. Federal Reserve: The Board of the Governors of the Federal Reserve System FFIEC: Federal Financial Institutions Examination Council FHA: Federal Housing Administration FHLB: Federal Home Loan Bank FICC: The Fixed Income Clearing Corporation FICO score: A measure of consumer credit risk based on information in consumer credit reports produced by Fair Isaac Corporation. Because certain aged data is excluded from credit reports based on rules in the Fair Credit Reporting Act, FICO scores may not reflect all historical information about a consumer. FINRA: Financial Industry Regulatory Authority Firm: JPMorgan Chase & Co. First Republic: On May 1, 2023, JPMorganChase acquired certain assets and assumed certain liabilities of First Republic Bank (the "First Republic acquisition") from the FDIC. "First Republic-related," "associated with First Republic" or similar expressions refer to the relevant effects of the First Republic acquisition, as well as subsequent related business and activities, as applicable. Refer to Note 34 of the Firm's 2024 Form 10-K for additional information. Forward points: Represents the interest rate differential between two currencies, which is either added to or subtracted from the current exchange rate (i.e., "spot rate") to determine the forward exchange rate. FRC: Firmwide Risk CommitteeFreddie Mac: Federal Home Loan Mortgage CorporationFree standing derivatives: A derivative contract entered into either separate and apart from any of the Firm's other financial instruments or equity transactions. Or, in conjunction with some other transaction and is legally detachable and separately exercisable.FSB: Financial Stability BoardFTE: Fully taxable equivalentFVA: Funding valuation adjustment FX: Foreign exchange G7 Group of Seven nations: Countries in the G7 are Canada, France, Germany, Italy, Japan, the U.K. and the U.S. G7 government securities: Securities issued by the government of one of the G7 nations. Ginnie Mae: Government National Mortgage Association GSIB: Global systemically important banks HELOC: Home equity line of credit Home equity - senior lien: Represents loans and commitments where JPMorganChase holds the first security interest on the property. Home equity - junior lien: Represents loans and commitments where JPMorganChase holds a security interest that is subordinate in rank to other liens. HQLA: High-quality liquid assets. Also refer to Eligible HQLA.HTM: Held-to-maturity IBOR: Interbank Offered RateICAAP: Internal capital adequacy assessment processIDI: Insured depository institutions IHC: JPMorgan Chase Holdings LLC, an intermediate holding companyIndirect tax expense: Refers to taxes that are imposed on goods and services rather than on income. Examples of indirect taxes include value-added tax ("VAT") and sales tax, among others.Investment-grade: An indication of credit quality based on JPMorganChase's internal risk assessment. The Firm considers ratings of BBB-/Baa3 or higher as investment-grade. IPO: Initial public offeringIR: Interest rateISDA: International Swaps and Derivatives Association JPMorganChase: JPMorgan Chase & Co. FRC: Firmwide Risk Committee Freddie Mac: Federal Home Loan Mortgage Corporation Free standing derivatives: A derivative contract entered into either separate and apart from any of the Firm's other financial instruments or equity transactions. Or, in conjunction with some other transaction and is legally detachable and separately exercisable. FSB: Financial Stability Board FTE: Fully taxable equivalent FVA: Funding valuation adjustment FX: Foreign exchange G7 Group of Seven nations: Countries in the G7 are Canada, France, Germany, Italy, Japan, the U.K. and the U.S. G7 government securities: Securities issued by the government of one of the G7 nations. Ginnie Mae: Government National Mortgage Association GSIB: Global systemically important banks HELOC: Home equity line of credit Home equity - senior lien: Represents loans and commitments where JPMorganChase holds the first security interest on the property. Home equity - junior lien: Represents loans and commitments where JPMorganChase holds a security interest that is subordinate in rank to other liens. HQLA: High-quality liquid assets. Also refer to Eligible HQLA. HTM: Held-to-maturity IBOR: Interbank Offered Rate ICAAP: Internal capital adequacy assessment process IDI: Insured depository institutions IHC: JPMorgan Chase Holdings LLC, an intermediate holding company Indirect tax expense: Refers to taxes that are imposed on goods and services rather than on income. Examples of indirect taxes include value-added tax ("VAT") and sales tax, among others. Investment-grade: An indication of credit quality based on JPMorganChase's internal risk assessment. The Firm considers ratings of BBB-/Baa3 or higher as investment-grade. IPO: Initial public offering IR: Interest rate ISDA: International Swaps and Derivatives Association JPMorganChase: JPMorgan Chase & Co. 322JPMorgan Chase & Co./2025 Form 10-K 322JPMorgan Chase & Co./2025 Form 10-K 322JPMorgan Chase & Co./2025 Form 10-K 322 JPMorgan Chase & Co./2025 Form 10-K --- ## Modified Risk: Management's discussion and analysis **Key changes:** - Updated: "The portfolio increased compared to December 31, 2024, primarily driven by an increase in loans at fair value due to net purchases of other consumer unsecured loans in CIB." - Updated: "At December 31, 2025 and 2024, mortgage loans 90 or more days past due and insured by U.S." - Updated: "The portfolio increased compared to December 31, 2024, primarily driven by an increase in loans at fair value due to net purchases of other consumer unsecured loans in CIB." - Updated: "At December 31, 2025 and 2024, mortgage loans 90 or more days past due and insured by U.S." - Updated: "The portfolio increased compared to December 31, 2024, primarily driven by an increase in loans at fair value due to net purchases of other consumer unsecured loans in CIB." **Prior (2025):** Auto and other: The auto and other loan portfolio, including loans at fair value, generally consists of prime-quality scored auto and business banking loans, other consumer unsecured loans, and overdrafts. The portfolio decreased when compared to December 31, 2023, predominantly due to loan securitizations. Net charge-offs increased compared to the prior year, predominantly due to net charge-offs of scored auto loans of $445 million compared to $357 million for the year ended December 31, 2023, reflecting a decline in used vehicle valuations. Refer to Note 14 for further information on securitization activity.Nonperforming assetsThe following table presents information as of December 31, 2024 and 2023, about consumer, excluding credit card, nonperforming assets.Nonperforming assets(a)December 31, (in millions)20242023Nonaccrual loansResidential real estate$3,665 $4,015 Auto and other261 188 Total nonaccrual loans3,926 4,203 Assets acquired in loan satisfactionsReal estate owned78 120 Other34 42 Total assets acquired in loan satisfactions112 162 Total nonperforming assets$4,038 $4,365 (a)Excludes mortgage loans past due and insured by U.S. government agencies, which are primarily 90 or more days past due. These loans have been excluded based upon the government guarantee. At December 31, 2024 and 2023, mortgage loans 90 or more days past due and insured by U.S. government agencies were $121 million and $182 million, respectively.Nonaccrual loansThe following table presents changes in consumer, excluding credit card, nonaccrual loans for the years ended December 31, 2024 and 2023. Nonaccrual loan activityYear ended December 31,(in millions)20242023Beginning balance$4,203 $4,325 Additions:3,225 2,894 Reductions:Principal payments and other894 1,030 Sales803 276 Charge-offs665 472 Returned to performing status963 1,052 Foreclosures and other liquidations177 186 Total reductions3,502 3,016 Net changes(277)(122)Ending balance$3,926 $4,203 Refer to Note 12 for further information about the consumer credit portfolio, including information about delinquencies, other credit quality indicators and loans that were in the process of active or suspended foreclosure. Auto and other: The auto and other loan portfolio, including loans at fair value, generally consists of prime-quality scored auto and business banking loans, other consumer unsecured loans, and overdrafts. The portfolio decreased when compared to December 31, 2023, predominantly due to loan securitizations. Net charge-offs increased compared to the prior year, predominantly due to net charge-offs of scored auto loans of $445 million compared to $357 million for the year ended December 31, 2023, reflecting a decline in used vehicle valuations. Refer to Note 14 for further information on securitization activity.Nonperforming assetsThe following table presents information as of December 31, 2024 and 2023, about consumer, excluding credit card, nonperforming assets.Nonperforming assets(a)December 31, (in millions)20242023Nonaccrual loansResidential real estate$3,665 $4,015 Auto and other261 188 Total nonaccrual loans3,926 4,203 Assets acquired in loan satisfactionsReal estate owned78 120 Other34 42 Total assets acquired in loan satisfactions112 162 Total nonperforming assets$4,038 $4,365 (a)Excludes mortgage loans past due and insured by U.S. government agencies, which are primarily 90 or more days past due. These loans have been excluded based upon the government guarantee. At December 31, 2024 and 2023, mortgage loans 90 or more days past due and insured by U.S. government agencies were $121 million and $182 million, respectively. Auto and other: The auto and other loan portfolio, including loans at fair value, generally consists of prime-quality scored auto and business banking loans, other consumer unsecured loans, and overdrafts. The portfolio decreased when compared to December 31, 2023, predominantly due to loan securitizations. Net charge-offs increased compared to the prior year, predominantly due to net charge-offs of scored auto loans of $445 million compared to $357 million for the year ended December 31, 2023, reflecting a decline in used vehicle valuations. Refer to Note 14 for further information on securitization activity. **Current (2026):** Auto and other: The auto and other loan portfolio, including loans at fair value, generally consists of prime-quality scored auto and business banking loans, other consumer unsecured loans, and overdrafts. The portfolio increased compared to December 31, 2024, primarily driven by an increase in loans at fair value due to net purchases of other consumer unsecured loans in CIB. Net charge-offs decreased compared to the prior year, primarily due to lower scored auto net charge-offs, reflecting improved used vehicle valuations. Refer to Note 14 for further information on securitization activity.Nonperforming assetsThe following table presents information as of December 31, 2025 and 2024, about consumer, excluding credit card, nonperforming assets.Nonperforming assets(a)December 31, (in millions)20252024Nonaccrual loansResidential real estate$4,381 $3,665 Auto and other292 261 Total nonaccrual loans4,673 3,926 Assets acquired in loan satisfactionsReal estate owned103 78 Other31 34 Total assets acquired in loan satisfactions134 112 Total nonperforming assets$4,807 $4,038 (a)Excludes mortgage loans past due and insured by U.S. government agencies, which are primarily 90 or more days past due. These loans have been excluded based upon the government guarantee. At December 31, 2025 and 2024, mortgage loans 90 or more days past due and insured by U.S. government agencies were $198 million and $121 million, respectively.Nonaccrual loansThe following table presents changes in consumer, excluding credit card, nonaccrual loans for the years ended December 31, 2025 and 2024. Nonaccrual loan activityYear ended December 31, (in millions)20252024Beginning balance$3,926 $4,203 Additions:4,506 3,225 Reductions:Principal payments and other962 894 Sales760 803 Charge-offs643 665 Returned to performing status1,200 963 Foreclosures and other liquidations194 177 Total reductions3,759 3,502 Net changes747 (277)Ending balance$4,673 $3,926 Refer to Note 12 for further information about the consumer credit portfolio, including information about delinquencies, other credit quality indicators and loans that were in the process of active or suspended foreclosure. Auto and other: The auto and other loan portfolio, including loans at fair value, generally consists of prime-quality scored auto and business banking loans, other consumer unsecured loans, and overdrafts. The portfolio increased compared to December 31, 2024, primarily driven by an increase in loans at fair value due to net purchases of other consumer unsecured loans in CIB. Net charge-offs decreased compared to the prior year, primarily due to lower scored auto net charge-offs, reflecting improved used vehicle valuations. Refer to Note 14 for further information on securitization activity.Nonperforming assetsThe following table presents information as of December 31, 2025 and 2024, about consumer, excluding credit card, nonperforming assets.Nonperforming assets(a)December 31, (in millions)20252024Nonaccrual loansResidential real estate$4,381 $3,665 Auto and other292 261 Total nonaccrual loans4,673 3,926 Assets acquired in loan satisfactionsReal estate owned103 78 Other31 34 Total assets acquired in loan satisfactions134 112 Total nonperforming assets$4,807 $4,038 (a)Excludes mortgage loans past due and insured by U.S. government agencies, which are primarily 90 or more days past due. These loans have been excluded based upon the government guarantee. At December 31, 2025 and 2024, mortgage loans 90 or more days past due and insured by U.S. government agencies were $198 million and $121 million, respectively. Auto and other: The auto and other loan portfolio, including loans at fair value, generally consists of prime-quality scored auto and business banking loans, other consumer unsecured loans, and overdrafts. The portfolio increased compared to December 31, 2024, primarily driven by an increase in loans at fair value due to net purchases of other consumer unsecured loans in CIB. Net charge-offs decreased compared to the prior year, primarily due to lower scored auto net charge-offs, reflecting improved used vehicle valuations. Refer to Note 14 for further information on securitization activity. --- ## Modified Risk: Firmwide overview **Key changes:** - Updated: "JPMorganChase reported net income of $57.0 billion for 2025, down 2%, earnings per share of $20.02, ROE of 17% and ROTCE of 20%." **Prior (2025):** JPMorganChase reported net income of $58.5 billion for 2024, up 18%, earnings per share of $19.75, ROE of 18% and ROTCE of 22%. •Total net revenue was $177.6 billion, up 12%, reflecting: -Net interest income ("NII") of $92.6 billion, up 4%, driven by the impact of balance sheet actions, primarily reinvestments in the investment securities portfolio, higher revolving balances in Card Services, the timing impact of First Republic, higher wholesale deposit balances, and higher Markets net interest income, largely offset by deposit margin compression across the lines of business and lower average deposit balances in CCB. NII excluding Markets was $92.4 billion, up 3%. -Noninterest revenue ("NIR") was $85.0 billion, up 23%, predominantly driven by a $7.9 billion net gain related to Visa shares recorded in the second quarter of 2024, higher asset management fees in AWM and CCB, higher investment banking fees, and lower net investment securities losses in Treasury and CIO. The prior year included the estimated bargain purchase gain of $2.8 billion associated with First Republic. 54JPMorgan Chase & Co./2024 Form 10-K 54JPMorgan Chase & Co./2024 Form 10-K 54JPMorgan Chase & Co./2024 Form 10-K 54 JPMorgan Chase & Co./2024 Form 10-K •Noninterest expense was $91.8 billion, up 5%, driven by higher compensation expense, including higher revenue-related compensation and growth in the number of employees, as well as a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024, partially offset by lower FDIC-related expense, reflecting a $2.9 billion special assessment recognized in the fourth quarter of 2023, compared with a $725 million increase to the FDIC special assessment recognized in the first quarter of 2024. •The provision for credit losses was $10.7 billion, reflecting $8.6 billion of net charge-offs and a net addition to the allowance for credit losses of $2.0 billion. Net charge-offs increased by $2.4 billion, driven by Card Services, reflecting the seasoning of vintages originated in recent years, credit normalization, and balance growth. The net addition to the allowance for credit losses included a net addition of $2.1 billion in consumer, driven by Card Services, and a net reduction of $19 million in wholesale.The provision in the prior year was $9.3 billion, reflecting $6.2 billion of net charge-offs and a $3.1 billion net addition to the allowance for credit losses.•The total allowance for credit losses was $26.9 billion at December 31, 2024. The Firm had an allowance for loan losses to retained loans coverage ratio of 1.87%, compared with 1.75% in the prior year.•The Firm's nonperforming assets totaled $9.3 billion at December 31, 2024, up 22%, driven by higher wholesale nonaccrual loans, which reflected downgrades in Real Estate, concentrated in Office, partially offset by lower consumer nonaccrual loans, which included loan sales. Refer to Wholesale Credit Portfolio and Consumer Credit Portfolio on pages 126-136 and pages 120-125, respectively, for additional information.•Firmwide average loans of $1.3 trillion were up 6%, driven by higher loans across the lines of business. •Firmwide average deposits of $2.4 trillion were up 1%, reflecting:-net inflows in Payments and net issuances of structured notes in Markets,-the timing impact of First Republic, and-growth in balances in new and existing client accounts in AWM,predominantly offset by-a decline in CCB primarily driven by a decrease in balances in existing accounts due to increased customer spending.Refer to Liquidity Risk Management on pages 108-115 for additional information.Selected capital and other metrics•CET1 capital was $275.5 billion, and the Standardized and Advanced CET1 ratios were 15.7% and 15.8%, respectively.•SLR was 6.1%.•TBVPS grew 13.0%, ending 2024 at $97.30.•As of December 31, 2024, the Firm had eligible end-of-period High Quality Liquid Assets ("HQLA") of approximately $834 billion and unencumbered marketable securities with a fair value of approximately $594 billion, resulting in approximately $1.4 trillion of liquidity sources. Refer to Liquidity Risk Management on pages 108-115 for additional information.Refer to Consolidated Results of Operations and Consolidated Balance Sheets Analysis on pages 59-62 and pages 63-65, respectively, for a further discussion of the Firm's results, including the provision for credit losses, and Note 34 for additional information on the First Republic acquisition.Pre-provision profit, ROTCE, TCE, TBVPS, NII and NIR excluding Markets, and total net revenue on a managed basis are non-GAAP financial measures. Refer to Explanation and Reconciliation of the Firm's Use of Non-GAAP Financial Measures on pages 67-69 for a further discussion of each of these measures. •Noninterest expense was $91.8 billion, up 5%, driven by higher compensation expense, including higher revenue-related compensation and growth in the number of employees, as well as a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024, partially offset by lower FDIC-related expense, reflecting a $2.9 billion special assessment recognized in the fourth quarter of 2023, compared with a $725 million increase to the FDIC special assessment recognized in the first quarter of 2024. •The provision for credit losses was $10.7 billion, reflecting $8.6 billion of net charge-offs and a net addition to the allowance for credit losses of $2.0 billion. Net charge-offs increased by $2.4 billion, driven by Card Services, reflecting the seasoning of vintages originated in recent years, credit normalization, and balance growth. The net addition to the allowance for credit losses included a net addition of $2.1 billion in consumer, driven by Card Services, and a net reduction of $19 million in wholesale.The provision in the prior year was $9.3 billion, reflecting $6.2 billion of net charge-offs and a $3.1 billion net addition to the allowance for credit losses.•The total allowance for credit losses was $26.9 billion at December 31, 2024. The Firm had an allowance for loan losses to retained loans coverage ratio of 1.87%, compared with 1.75% in the prior year.•The Firm's nonperforming assets totaled $9.3 billion at December 31, 2024, up 22%, driven by higher wholesale nonaccrual loans, which reflected downgrades in Real Estate, concentrated in Office, partially offset by lower consumer nonaccrual loans, which included loan sales. Refer to Wholesale Credit Portfolio and Consumer Credit Portfolio on pages 126-136 and pages 120-125, respectively, for additional information.•Firmwide average loans of $1.3 trillion were up 6%, driven by higher loans across the lines of business. •Firmwide average deposits of $2.4 trillion were up 1%, reflecting:-net inflows in Payments and net issuances of structured notes in Markets,-the timing impact of First Republic, and-growth in balances in new and existing client accounts in AWM,predominantly offset by-a decline in CCB primarily driven by a decrease in balances in existing accounts due to increased customer spending.Refer to Liquidity Risk Management on pages 108-115 for additional information. •Noninterest expense was $91.8 billion, up 5%, driven by higher compensation expense, including higher revenue-related compensation and growth in the number of employees, as well as a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024, partially offset by lower FDIC-related expense, reflecting a $2.9 billion special assessment recognized in the fourth quarter of 2023, compared with a $725 million increase to the FDIC special assessment recognized in the first quarter of 2024. •The provision for credit losses was $10.7 billion, reflecting $8.6 billion of net charge-offs and a net addition to the allowance for credit losses of $2.0 billion. Net charge-offs increased by $2.4 billion, driven by Card Services, reflecting the seasoning of vintages originated in recent years, credit normalization, and balance growth. The net addition to the allowance for credit losses included a net addition of $2.1 billion in consumer, driven by Card Services, and a net reduction of $19 million in wholesale. The provision in the prior year was $9.3 billion, reflecting $6.2 billion of net charge-offs and a $3.1 billion net addition to the allowance for credit losses. •The total allowance for credit losses was $26.9 billion at December 31, 2024. The Firm had an allowance for loan losses to retained loans coverage ratio of 1.87%, compared with 1.75% in the prior year. •The Firm's nonperforming assets totaled $9.3 billion at December 31, 2024, up 22%, driven by higher wholesale nonaccrual loans, which reflected downgrades in Real Estate, concentrated in Office, partially offset by lower consumer nonaccrual loans, which included loan sales. Refer to Wholesale Credit Portfolio and Consumer Credit Portfolio on pages 126-136 and pages 120-125, respectively, for additional information. •Firmwide average loans of $1.3 trillion were up 6%, driven by higher loans across the lines of business. •Firmwide average deposits of $2.4 trillion were up 1%, reflecting: -net inflows in Payments and net issuances of structured notes in Markets, -the timing impact of First Republic, and -growth in balances in new and existing client accounts in AWM, predominantly offset by -a decline in CCB primarily driven by a decrease in balances in existing accounts due to increased customer spending. Refer to Liquidity Risk Management on pages 108-115 for additional information. Selected capital and other metrics•CET1 capital was $275.5 billion, and the Standardized and Advanced CET1 ratios were 15.7% and 15.8%, respectively.•SLR was 6.1%.•TBVPS grew 13.0%, ending 2024 at $97.30.•As of December 31, 2024, the Firm had eligible end-of-period High Quality Liquid Assets ("HQLA") of approximately $834 billion and unencumbered marketable securities with a fair value of approximately $594 billion, resulting in approximately $1.4 trillion of liquidity sources. Refer to Liquidity Risk Management on pages 108-115 for additional information.Refer to Consolidated Results of Operations and Consolidated Balance Sheets Analysis on pages 59-62 and pages 63-65, respectively, for a further discussion of the Firm's results, including the provision for credit losses, and Note 34 for additional information on the First Republic acquisition.Pre-provision profit, ROTCE, TCE, TBVPS, NII and NIR excluding Markets, and total net revenue on a managed basis are non-GAAP financial measures. Refer to Explanation and Reconciliation of the Firm's Use of Non-GAAP Financial Measures on pages 67-69 for a further discussion of each of these measures. **Current (2026):** JPMorganChase reported net income of $57.0 billion for 2025, down 2%, earnings per share of $20.02, ROE of 17% and ROTCE of 20%. •Total net revenue was $182.4 billion, up 3%, reflecting: -Net interest income ("NII") of $95.4 billion, up 3%, driven by higher Markets net interest income, higher revolving balances in Card Services, higher wholesale deposit balances, and the impact of investment securities activity. These factors were largely offset by deposit margin compression and the impact of lower rates. NII excluding Markets was $92.6 billion, flat when compared with the prior year. -Noninterest revenue ("NIR") was $87.0 billion, up 2%, reflecting higher Markets noninterest revenue, higher asset management fees in AWM and CCB, higher auto operating lease income, lower net investment securities losses in Treasury and CIO, higher Payments fees, higher investment banking fees, and a $588 million First Republic-related gain recorded in the first quarter of 2025. These increases were predominantly offset by the absence of the $7.9 billion net gain related to Visa shares recorded in the second quarter of 2024, as well as lower card income in the current year. •Noninterest expense was $95.6 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, higher auto lease depreciation, and continued investments in technology and marketing, as well as higher occupancy expense. These factors were partially offset by FDIC special assessment accrual releases of $763 million compared with an increase of $725 million in the prior year, as well as the absence of a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024. JPMorgan Chase & Co./2025 Form 10-K47 JPMorgan Chase & Co./2025 Form 10-K47 JPMorgan Chase & Co./2025 Form 10-K47 JPMorgan Chase & Co./2025 Form 10-K 47 •The provision for credit losses was $14.2 billion. Net charge-offs were $9.8 billion, up $1.2 billion, predominantly driven by Wholesale and Card Services. The net addition to the allowance for credit losses was $4.4 billion and consisted of $3.3 billion in consumer, which included $2.2 billion related to the Apple Card transaction, and $1.1 billion in wholesale.In the prior year, the provision was $10.7 billion, net charge-offs were $8.6 billion and the net addition to the allowance for credit losses was $2.0 billion.•The total allowance for credit losses was $31.2 billion at December 31, 2025. The Firm had an allowance for loan losses to retained loans coverage ratio of 1.83%, compared with 1.87% in the prior year.Refer to Consolidated Results of Operations and Consolidated Balance Sheets Analysis on pages 51-54 and pages 55-57, 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 59-61 for a further discussion of each of these measures.•The Firm's nonperforming assets totaled $10.4 billion at December 31, 2025, up 11%, driven by:-higher consumer nonaccrual loans, predominantly due to the impact of the wildfires in California in January 2025, as well as higher loans at fair value in CIB, and-higher wholesale nonaccrual loans, reflecting downgrades to exposures in certain industries, predominantly offset by net portfolio activity and upgrades. Refer to Wholesale Credit Portfolio and Consumer Credit Portfolio on pages 118-128 and pages 112-117, respectively, for additional information.•Firmwide average loans of $1.4 trillion were up 6%, predominantly driven by higher loans in CIB and AWM.•Firmwide average deposits of $2.5 trillion were up 5%, reflecting:-net inflows related to client-driven activities in Payments and Securities Services, and-growth in both new accounts and balances in existing accounts in AWM,partially offset by-a decrease in CCB primarily driven by increased customer spending.Refer to Liquidity Risk Management on pages 100-107 for additional information.Selected capital and other metrics•CET1 capital was $288.5 billion, and the Standardized and Advanced CET1 ratios were 14.6% and 14.1%, respectively.•SLR was 5.8%.•TBVPS grew 10.5%, ending 2025 at $107.56.•As of December 31, 2025, the Firm had eligible end-of-period High Quality Liquid Assets ("HQLA") of approximately $915 billion and unencumbered marketable securities with a fair value of approximately $548 billion, resulting in approximately $1.5 trillion of liquidity sources. Refer to Capital Risk Management and Liquidity Risk Management on pages 89-99 and pages 100-107, respectively, for additional information. •The provision for credit losses was $14.2 billion. Net charge-offs were $9.8 billion, up $1.2 billion, predominantly driven by Wholesale and Card Services. The net addition to the allowance for credit losses was $4.4 billion and consisted of $3.3 billion in consumer, which included $2.2 billion related to the Apple Card transaction, and $1.1 billion in wholesale.In the prior year, the provision was $10.7 billion, net charge-offs were $8.6 billion and the net addition to the allowance for credit losses was $2.0 billion.•The total allowance for credit losses was $31.2 billion at December 31, 2025. The Firm had an allowance for loan losses to retained loans coverage ratio of 1.83%, compared with 1.87% in the prior year.Refer to Consolidated Results of Operations and Consolidated Balance Sheets Analysis on pages 51-54 and pages 55-57, 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 59-61 for a further discussion of each of these measures.•The Firm's nonperforming assets totaled $10.4 billion at December 31, 2025, up 11%, driven by:-higher consumer nonaccrual loans, predominantly due to the impact of the wildfires in California in January 2025, as well as higher loans at fair value in CIB, and-higher wholesale nonaccrual loans, reflecting downgrades to exposures in certain industries, predominantly offset by net portfolio activity and upgrades. Refer to Wholesale Credit Portfolio and Consumer Credit Portfolio on pages 118-128 and pages 112-117, respectively, for additional information.•Firmwide average loans of $1.4 trillion were up 6%, predominantly driven by higher loans in CIB and AWM.•Firmwide average deposits of $2.5 trillion were up 5%, reflecting:-net inflows related to client-driven activities in Payments and Securities Services, and-growth in both new accounts and balances in existing accounts in AWM,partially offset by-a decrease in CCB primarily driven by increased customer spending.Refer to Liquidity Risk Management on pages 100-107 for additional information. •The provision for credit losses was $14.2 billion. Net charge-offs were $9.8 billion, up $1.2 billion, predominantly driven by Wholesale and Card Services. The net addition to the allowance for credit losses was $4.4 billion and consisted of $3.3 billion in consumer, which included $2.2 billion related to the Apple Card transaction, and $1.1 billion in wholesale. In the prior year, the provision was $10.7 billion, net charge-offs were $8.6 billion and the net addition to the allowance for credit losses was $2.0 billion. •The total allowance for credit losses was $31.2 billion at December 31, 2025. The Firm had an allowance for loan losses to retained loans coverage ratio of 1.83%, compared with 1.87% in the prior year. Refer to Consolidated Results of Operations and Consolidated Balance Sheets Analysis on pages 51-54 and pages 55-57, 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 59-61 for a further discussion of each of these measures. •The Firm's nonperforming assets totaled $10.4 billion at December 31, 2025, up 11%, driven by: -higher consumer nonaccrual loans, predominantly due to the impact of the wildfires in California in January 2025, as well as higher loans at fair value in CIB, and -higher wholesale nonaccrual loans, reflecting downgrades to exposures in certain industries, predominantly offset by net portfolio activity and upgrades. Refer to Wholesale Credit Portfolio and Consumer Credit Portfolio on pages 118-128 and pages 112-117, respectively, for additional information. •Firmwide average loans of $1.4 trillion were up 6%, predominantly driven by higher loans in CIB and AWM. •Firmwide average deposits of $2.5 trillion were up 5%, reflecting: -net inflows related to client-driven activities in Payments and Securities Services, and -growth in both new accounts and balances in existing accounts in AWM, partially offset by -a decrease in CCB primarily driven by increased customer spending. Refer to Liquidity Risk Management on pages 100-107 for additional information. Selected capital and other metrics•CET1 capital was $288.5 billion, and the Standardized and Advanced CET1 ratios were 14.6% and 14.1%, respectively.•SLR was 5.8%.•TBVPS grew 10.5%, ending 2025 at $107.56.•As of December 31, 2025, the Firm had eligible end-of-period High Quality Liquid Assets ("HQLA") of approximately $915 billion and unencumbered marketable securities with a fair value of approximately $548 billion, resulting in approximately $1.5 trillion of liquidity sources. Refer to Capital Risk Management and Liquidity Risk Management on pages 89-99 and pages 100-107, respectively, for additional information. --- ## Modified Risk: Consumer & Retail **Key changes:** - Updated: "Consumer & Retail exposure was $133.9 billion as of December 31, 2025." **Prior (2025):** Consumer & Retail exposure was $129.8 billion as of December 31, 2024. Criticized exposure decreased by $1.4 billion from $8.3 billion at December 31, 2023 to $6.9 billion at December 31, 2024, driven by net portfolio activity and upgrades, largely offset by downgrades. December 31, 2024(in millions, except ratios)Loans and Lending-related CommitmentsDerivative ReceivablesCredit exposure% Investment-grade% Drawn(d)Food and Beverage$34,774 $683 $35,457 61 %34 %Retail34,917 261 35,178 51 31 Business and Consumer Services(a)34,534 412 34,946 42 41 Consumer Hard Goods13,796 208 14,004 43 35 Leisure(b)10,186 44 10,230 26 43 Total Consumer & Retail(c)$128,207 $1,608 $129,815 48 %36 %December 31, 2023(in millions, except ratios)Loans and Lending-related CommitmentsDerivative ReceivablesCredit exposure% Investment-grade% Drawn(d)Food and Beverage$32,256 $930 $33,186 57 %36 %Retail36,042 334 36,376 51 30 Business and Consumer Services(a)34,822 392 35,214 42 42 Consumer Hard Goods13,169 197 13,366 43 33 Leisure(b)8,784 160 8,944 25 47 Total Consumer & Retail$125,073 $2,013 $127,086 47 %36 % % Drawn(d) Business and Consumer Services(a) Leisure(b) **Current (2026):** Consumer & Retail exposure was $133.9 billion as of December 31, 2025. Criticized exposure increased by $1.2 billion from $6.9 billion at December 31, 2024 to $8.0 billion at December 31, 2025, driven by net downgrades and new lending-related commitments, largely offset by net portfolio activity. December 31, 2025(in millions, except ratios)Loans and lending-related commitmentsDerivative receivablesCredit exposure% Investment-grade% Drawn(d)Business and Consumer Services$38,160 $501 $38,661 41 %43 %Retail(a)36,492 434 36,926 55 29 Food and Beverage31,513 855 32,368 53 36 Consumer Hard Goods14,824 309 15,133 43 33 Leisure(b)10,721 136 10,857 33 45 Total Consumer & Retail(c)$131,710 $2,235 $133,945 47 %37 %December 31, 2024(in millions, except ratios)Loans and lending-related commitmentsDerivative receivablesCredit exposure% Investment-grade% Drawn(d)Business and Consumer Services$34,534 $412 $34,946 42 %41 %Retail(a)34,917 261 35,178 51 31 Food and Beverage34,774 683 35,457 61 34 Consumer Hard Goods13,796 208 14,004 43 35 Leisure(b)10,186 44 10,230 26 43 Total Consumer & Retail$128,207 $1,608 $129,815 48 %36 % --- ## Modified Risk: 2025 compared with 2024 **Key changes:** - Updated: "Investment banking fees increased, reflecting in CIB: •higher debt underwriting fees predominantly driven by non-investment grade loans and investment grade bonds, •higher advisory fees benefiting from higher fees from deals in the Financial Institutions and Technology sectors, partially offset by lower fees from deals in the Media & Telecommunications sector, and •higher equity underwriting fees primarily driven by higher revenue from IPOs." - Updated: "Refer to CIB segment and Corporate results on pages 69-75 and pages 80-82, respectively, and Note 6 for additional information." - Updated: "Refer to Explanation and Reconciliation of the Firm's Use of Non-GAAP Financial Measures on pages 59-61 for an additional discussion of net yield excluding Markets." - Updated: "Refer to Explanation and Reconciliation of the Firm's Use of Non-GAAP Financial Measures on pages 59-61 for an additional discussion of net yield excluding Markets." - Updated: "Refer to Explanation and Reconciliation of the Firm's Use of Non-GAAP Financial Measures on pages 59-61 for an additional discussion of net yield excluding Markets." **Prior (2025):** Investment banking fees increased, reflecting in CIB the benefit of favorable market conditions, which resulted in: •higher debt underwriting fees predominantly driven by higher industry-wide issuances in leveraged loans, and in high-grade and high-yield bonds, •higher equity underwriting fees driven by higher industry-wide fees and wallet share gains in IPOs, and in follow-on and convertible securities offerings, and •higher advisory fees driven by higher industry-wide mergers and acquisitions ("M&A") activity and wallet share gains. Refer to CIB segment results on pages 77-83 and Note 6 for additional information.Principal transactions revenue increased driven by CIB, reflecting:•higher Equity Markets revenue in Prime Finance and Equity Derivatives,predominantly offset by•lower Fixed Income Markets revenue, reflecting the net impact of declines in revenue across macro businesses and higher revenue in Securitized Products.Principal transactions revenue in CIB generally has offsets across other revenue lines, including net interest income. The Firm assesses the performance of its Markets business on a total net revenue basis.The increase in CIB was partially offset by a net decrease in Corporate, reflecting lower revenue in Treasury and CIO, and gains compared with a net loss on certain legacy private equity investments in the prior year.Refer to CIB segment and Corporate results on pages 77-83 and pages 88-90, respectively, and Note 6 for additional information.Lending- and deposit-related fees increased, reflecting, in CIB, higher deposit-related fees, including cash management fees in Payments, on higher volume; and higher lending-related fees, including loan commitment fees. These factors were largely offset by a decline in the amortization of the fair value discount on certain acquired lending-related commitments associated with First Republic, primarily in AWM, as certain of the commitments have expired. Refer to CIB and AWM segment results on pages 77-83 and pages 84-87, respectively, and Note 6 for additional information.Asset management fees increased, reflecting, in AWM and CCB, higher average market levels and net inflows, as well as higher performance fees in AWM; and in CCB, the timing impact of First Republic. Refer to CCB and AWM segment results on pages 73-76 and pages 84-87, respectively, and Note 6 for additional information. Refer to CIB segment results on pages 77-83 and Note 6 for additional information. Principal transactions revenue increased driven by CIB, reflecting: •higher Equity Markets revenue in Prime Finance and Equity Derivatives, predominantly offset by •lower Fixed Income Markets revenue, reflecting the net impact of declines in revenue across macro businesses and higher revenue in Securitized Products. Principal transactions revenue in CIB generally has offsets across other revenue lines, including net interest income. The Firm assesses the performance of its Markets business on a total net revenue basis. The increase in CIB was partially offset by a net decrease in Corporate, reflecting lower revenue in Treasury and CIO, and gains compared with a net loss on certain legacy private equity investments in the prior year. Refer to CIB segment and Corporate results on pages 77-83 and pages 88-90, respectively, and Note 6 for additional information. Lending- and deposit-related fees increased, reflecting, in CIB, higher deposit-related fees, including cash management fees in Payments, on higher volume; and higher lending-related fees, including loan commitment fees. These factors were largely offset by a decline in the amortization of the fair value discount on certain acquired lending-related commitments associated with First Republic, primarily in AWM, as certain of the commitments have expired. Refer to CIB and AWM segment results on pages 77-83 and pages 84-87, respectively, and Note 6 for additional information. Asset management fees increased, reflecting, in AWM and CCB, higher average market levels and net inflows, as well as higher performance fees in AWM; and in CCB, the timing impact of First Republic. Refer to CCB and AWM segment results on pages 73-76 and pages 84-87, respectively, and Note 6 for additional information. JPMorgan Chase & Co./2024 Form 10-K59 JPMorgan Chase & Co./2024 Form 10-K59 JPMorgan Chase & Co./2024 Form 10-K59 JPMorgan Chase & Co./2024 Form 10-K 59 Commissions and other fees increased, predominantly due to higher brokerage commissions and fees on higher volume, and higher custody fees, in both CIB and AWM, as well as higher annuity sales commissions in CCB. Refer to CCB, CIB and AWM segment results on pages 73-76, pages 77-83 and pages 84-87, respectively, and Note 6 for additional information. Investment securities losses decreased, reflecting lower losses on sales of securities, primarily U.S. Treasuries and U.S. GSE and government agency MBS, associated with repositioning the investment securities portfolio in Treasury and CIO. Refer to Corporate results on pages 88-90 and Note 10 for additional information.Mortgage fees and related income increased in Home Lending, reflecting higher production revenue, which included the timing impact of First Republic. Refer to CCB segment results on pages 73-76, and Note 6 and 15 for additional information.Card income increased, reflecting higher net interchange on increased debit and credit card sales volume, as well as higher annual fees in CCB, partially offset by an increase in amortization related to new account origination costs. Refer to CCB segment results on pages 73-76 and Note 6 for additional information.Other income increased, reflecting: •in Corporate: -the $7.9 billion net gain related to Visa shares recorded in the second quarter of 2024,partially offset by-the absence of the prior-year $2.8 billion estimated bargain purchase gain associated with the First Republic acquisition, and •in CIB:-the impact of the adoption of updates to the Accounting for Investments in Tax Credit Structures guidance effective January 1, 2024, resulting in the amortization of certain of the Firm's alternative energy tax-oriented investments previously recognized in other income which is now recognized in income tax expense.Both periods included impairment losses related to certain equity investments. The prior year included a gain of $339 million on the original minority interest in China International Fund Management ("CIFM"), partially offset by net investment valuation losses, both in AWM.Refer to AWM segment results on pages 84-87 for additional information on CIFM; Notes 1, 6, 14 and 25 for additional information on the adoption of updates to the Accounting for Investments in Tax Credit Structures guidance; Notes 2 and 6 for additional information on Visa shares; and Notes 6 and 34 for additional information on the First Republic acquisition.Net interest income increased driven by the impact of balance sheet actions, primarily reinvestments in the investment securities portfolio, higher revolving balances in Card Services, the timing impact of First Republic, higher wholesale deposit balances and higher Markets net interest income. These factors were largely offset by deposit margin compression across the lines of business and lower average deposit balances in CCB.The Firm's average interest-earning assets were $3.5 trillion, up $212 billion, and the yield was 5.50%, up 36 bps. The net yield on these assets, on an FTE basis, was 2.63%, a decrease of 7 bps. The net yield excluding Markets was 3.84%, relatively flat when compared to the prior year.Refer to the Consolidated average balance sheets, interest and rates schedule on pages 322-326 for additional information. Net yield excluding Markets is a non-GAAP financial measure. Refer to Explanation and Reconciliation of the Firm's Use of Non-GAAP Financial Measures on pages 67-69 for an additional discussion of net yield excluding Markets. Commissions and other fees increased, predominantly due to higher brokerage commissions and fees on higher volume, and higher custody fees, in both CIB and AWM, as well as higher annuity sales commissions in CCB. Refer to CCB, CIB and AWM segment results on pages 73-76, pages 77-83 and pages 84-87, respectively, and Note 6 for additional information. Investment securities losses decreased, reflecting lower losses on sales of securities, primarily U.S. Treasuries and U.S. GSE and government agency MBS, associated with repositioning the investment securities portfolio in Treasury and CIO. Refer to Corporate results on pages 88-90 and Note 10 for additional information.Mortgage fees and related income increased in Home Lending, reflecting higher production revenue, which included the timing impact of First Republic. Refer to CCB segment results on pages 73-76, and Note 6 and 15 for additional information.Card income increased, reflecting higher net interchange on increased debit and credit card sales volume, as well as higher annual fees in CCB, partially offset by an increase in amortization related to new account origination costs. Refer to CCB segment results on pages 73-76 and Note 6 for additional information.Other income increased, reflecting: •in Corporate: -the $7.9 billion net gain related to Visa shares recorded in the second quarter of 2024,partially offset by-the absence of the prior-year $2.8 billion estimated bargain purchase gain associated with the First Republic acquisition, and •in CIB:-the impact of the adoption of updates to the Accounting for Investments in Tax Credit Structures guidance effective January 1, 2024, resulting in the amortization of certain of the Firm's alternative energy tax-oriented investments previously recognized in other income which is now recognized in income tax expense.Both periods included impairment losses related to certain equity investments. The prior year included a gain of $339 million on the original minority interest in China International Fund Management ("CIFM"), partially offset by net investment valuation losses, both in AWM. Commissions and other fees increased, predominantly due to higher brokerage commissions and fees on higher volume, and higher custody fees, in both CIB and AWM, as well as higher annuity sales commissions in CCB. Refer to CCB, CIB and AWM segment results on pages 73-76, pages 77-83 and pages 84-87, respectively, and Note 6 for additional information. Investment securities losses decreased, reflecting lower losses on sales of securities, primarily U.S. Treasuries and U.S. GSE and government agency MBS, associated with repositioning the investment securities portfolio in Treasury and CIO. Refer to Corporate results on pages 88-90 and Note 10 for additional information. Mortgage fees and related income increased in Home Lending, reflecting higher production revenue, which included the timing impact of First Republic. Refer to CCB segment results on pages 73-76, and Note 6 and 15 for additional information. Card income increased, reflecting higher net interchange on increased debit and credit card sales volume, as well as higher annual fees in CCB, partially offset by an increase in amortization related to new account origination costs. Refer to CCB segment results on pages 73-76 and Note 6 for additional information. Other income increased, reflecting: •in Corporate: -the $7.9 billion net gain related to Visa shares recorded in the second quarter of 2024, partially offset by -the absence of the prior-year $2.8 billion estimated bargain purchase gain associated with the First Republic acquisition, and •in CIB: -the impact of the adoption of updates to the Accounting for Investments in Tax Credit Structures guidance effective January 1, 2024, resulting in the amortization of certain of the Firm's alternative energy tax-oriented investments previously recognized in other income which is now recognized in income tax expense. Both periods included impairment losses related to certain equity investments. The prior year included a gain of $339 million on the original minority interest in China International Fund Management ("CIFM"), partially offset by net investment valuation losses, both in AWM. Refer to AWM segment results on pages 84-87 for additional information on CIFM; Notes 1, 6, 14 and 25 for additional information on the adoption of updates to the Accounting for Investments in Tax Credit Structures guidance; Notes 2 and 6 for additional information on Visa shares; and Notes 6 and 34 for additional information on the First Republic acquisition.Net interest income increased driven by the impact of balance sheet actions, primarily reinvestments in the investment securities portfolio, higher revolving balances in Card Services, the timing impact of First Republic, higher wholesale deposit balances and higher Markets net interest income. These factors were largely offset by deposit margin compression across the lines of business and lower average deposit balances in CCB.The Firm's average interest-earning assets were $3.5 trillion, up $212 billion, and the yield was 5.50%, up 36 bps. The net yield on these assets, on an FTE basis, was 2.63%, a decrease of 7 bps. The net yield excluding Markets was 3.84%, relatively flat when compared to the prior year.Refer to the Consolidated average balance sheets, interest and rates schedule on pages 322-326 for additional information. Net yield excluding Markets is a non-GAAP financial measure. Refer to Explanation and Reconciliation of the Firm's Use of Non-GAAP Financial Measures on pages 67-69 for an additional discussion of net yield excluding Markets. Refer to AWM segment results on pages 84-87 for additional information on CIFM; Notes 1, 6, 14 and 25 for additional information on the adoption of updates to the Accounting for Investments in Tax Credit Structures guidance; Notes 2 and 6 for additional information on Visa shares; and Notes 6 and 34 for additional information on the First Republic acquisition. Net interest income increased driven by the impact of balance sheet actions, primarily reinvestments in the investment securities portfolio, higher revolving balances in Card Services, the timing impact of First Republic, higher wholesale deposit balances and higher Markets net interest income. These factors were largely offset by deposit margin compression across the lines of business and lower average deposit balances in CCB. The Firm's average interest-earning assets were $3.5 trillion, up $212 billion, and the yield was 5.50%, up 36 bps. The net yield on these assets, on an FTE basis, was 2.63%, a decrease of 7 bps. The net yield excluding Markets was 3.84%, relatively flat when compared to the prior year. Refer to the Consolidated average balance sheets, interest and rates schedule on pages 322-326 for additional information. Net yield excluding Markets is a non-GAAP financial measure. Refer to Explanation and Reconciliation of the Firm's Use of Non-GAAP Financial Measures on pages 67-69 for an additional discussion of net yield excluding Markets. 60JPMorgan Chase & Co./2024 Form 10-K 60JPMorgan Chase & Co./2024 Form 10-K 60JPMorgan Chase & Co./2024 Form 10-K 60 JPMorgan Chase & Co./2024 Form 10-K Provision for credit lossesYear ended December 31,(in millions)202420232022Consumer, excluding credit card$631 $935 $506 Credit card9,292 6,048 3,353 Total consumer9,923 6,983 3,859 Wholesale731 2,299 2,476 Investment securities24 38 54 Total provision for credit losses$10,678 $9,320 $6,389 2024 compared with 2023 The provision for credit losses was $10.7 billion, reflecting $8.6 billion of net charge-offs and a $2.0 billion net addition to the allowance for credit losses. Net charge-offs included $7.8 billion in consumer, predominantly driven by Card Services, reflecting the seasoning of vintages originated in recent years, credit normalization and balance growth, and $0.8 billion in wholesale, primarily in Real Estate, largely concentrated in Office.The net addition to the allowance for credit losses consisted of:•$2.1 billion in consumer, reflecting:-a $2.2 billion net addition in Card Services, predominantly driven by loan growth, reflecting higher revolving balances, including the seasoning of vintages originated in recent years, partially offset by-a $125 million net reduction in Home Lending in the first quarter of 2024, and •a net reduction of $19 million in wholesale, reflecting: -changes in certain macroeconomic variables, an update to loss assumptions on certain loans in Markets, and a reduction due to charge-offs largely from collateral-dependent loans, predominantly offset by -net downgrade activity, primarily in Real Estate, and the impact of incorporating the First Republic portfolio into the Firm's modeled credit loss estimates in the second quarter of 2024. The provision in the prior year was $9.3 billion, reflecting net charge-offs of $6.2 billion and a $3.1 billion net addition to the allowance for credit losses, which included $1.2 billion to establish the allowance for the First Republic loans and lending-related commitments in the second quarter of 2023.Refer to CCB, CIB and AWM segment and Corporate results on pages 73-76, pages 77-83, pages 84-87, and pages 88-90, respectively; Allowance for Credit Losses on pages 137-139; Critical Accounting Estimates Used by the Firm on pages 161-164; and Notes 12 and 13 for additional information on the credit portfolio and the allowance for credit losses. Provision for credit lossesYear ended December 31,(in millions)202420232022Consumer, excluding credit card$631 $935 $506 Credit card9,292 6,048 3,353 Total consumer9,923 6,983 3,859 Wholesale731 2,299 2,476 Investment securities24 38 54 Total provision for credit losses$10,678 $9,320 $6,389 2024 compared with 2023 The provision for credit losses was $10.7 billion, reflecting $8.6 billion of net charge-offs and a $2.0 billion net addition to the allowance for credit losses. Net charge-offs included $7.8 billion in consumer, predominantly driven by Card Services, reflecting the seasoning of vintages originated in recent years, credit normalization and balance growth, and $0.8 billion in wholesale, primarily in Real Estate, largely concentrated in Office.The net addition to the allowance for credit losses consisted of:•$2.1 billion in consumer, reflecting:-a $2.2 billion net addition in Card Services, predominantly driven by loan growth, reflecting higher revolving balances, including the seasoning of vintages originated in recent years, partially offset by-a $125 million net reduction in Home Lending in the first quarter of 2024, and •a net reduction of $19 million in wholesale, reflecting: -changes in certain macroeconomic variables, an update to loss assumptions on certain loans in Markets, and a reduction due to charge-offs largely from collateral-dependent loans, predominantly offset by -net downgrade activity, primarily in Real Estate, and the impact of incorporating the First Republic portfolio into the Firm's modeled credit loss estimates in the second quarter of 2024. Provision for credit lossesYear ended December 31,(in millions)202420232022Consumer, excluding credit card$631 $935 $506 Credit card9,292 6,048 3,353 Total consumer9,923 6,983 3,859 Wholesale731 2,299 2,476 Investment securities24 38 54 Total provision for credit losses$10,678 $9,320 $6,389 Consumer, excluding credit card **Current (2026):** Investment banking fees increased, reflecting in CIB: •higher debt underwriting fees predominantly driven by non-investment grade loans and investment grade bonds, •higher advisory fees benefiting from higher fees from deals in the Financial Institutions and Technology sectors, partially offset by lower fees from deals in the Media & Telecommunications sector, and •higher equity underwriting fees primarily driven by higher revenue from IPOs. Refer to CIB segment results on pages 69-75 and Note 6 for additional information. Principal transactions revenue increased, reflecting in CIB: •higher Fixed Income Markets revenue primarily driven by higher revenue in Rates and Commodities, largely offset by lower revenue in Securitized Products, Fixed Income Financing and Currencies & Emerging Markets, and•higher Equity Markets revenue, particularly in Equity Derivatives.The increase in CIB was partially offset by lower revenue in Treasury and CIO.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 and Corporate results on pages 69-75 and pages 80-82, respectively, and Note 6 for additional information.Lending- and deposit-related fees increased, reflecting: •in CIB, a reduction in client credits applied to deposit-related fees, as well as higher cash management fees in Payments as a result of higher volume, and•in CCB, higher deposit-related fees as a result of higher transaction volume and new accounts. Refer to CCB and CIB segment results on pages 65-68 and pages 69-75, respectively, and Note 6 for additional information.Asset management fees increased driven by higher average market levels in AWM and CCB, as well as net inflows in AWM and, to a lesser extent, in CCB. Refer to CCB and AWM segment results on pages 65-68 and pages 76-79, respectively, and Note 6 for additional information. Commissions and other fees increased in CIB and AWM, predominantly due to higher brokerage commissions on higher volume and, to a lesser extent, higher custody fees as a result of higher client activity and market levels. Refer to CIB and AWM segment results on pages 69-75 and pages 76-79, respectively, and Note 6 for additional information. Principal transactions revenue increased, reflecting in CIB: •higher Fixed Income Markets revenue primarily driven by higher revenue in Rates and Commodities, largely offset by lower revenue in Securitized Products, Fixed Income Financing and Currencies & Emerging Markets, and •higher Equity Markets revenue, particularly in Equity Derivatives. The increase in CIB was partially offset by lower revenue in Treasury and CIO. 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 and Corporate results on pages 69-75 and pages 80-82, respectively, and Note 6 for additional information. Lending- and deposit-related fees increased, reflecting: •in CIB, a reduction in client credits applied to deposit-related fees, as well as higher cash management fees in Payments as a result of higher volume, and •in CCB, higher deposit-related fees as a result of higher transaction volume and new accounts. Refer to CCB and CIB segment results on pages 65-68 and pages 69-75, respectively, and Note 6 for additional information. Asset management fees increased driven by higher average market levels in AWM and CCB, as well as net inflows in AWM and, to a lesser extent, in CCB. Refer to CCB and AWM segment results on pages 65-68 and pages 76-79, respectively, and Note 6 for additional information. Commissions and other fees increased in CIB and AWM, predominantly due to higher brokerage commissions on higher volume and, to a lesser extent, higher custody fees as a result of higher client activity and market levels. Refer to CIB and AWM segment results on pages 69-75 and pages 76-79, respectively, and Note 6 for additional information. JPMorgan Chase & Co./2025 Form 10-K51 JPMorgan Chase & Co./2025 Form 10-K51 JPMorgan Chase & Co./2025 Form 10-K51 JPMorgan Chase & Co./2025 Form 10-K 51 Investment securities losses decreased, reflecting lower losses on sales of securities associated with repositioning the investment securities portfolio in Treasury and CIO. The prior year net loss was primarily related to sales of U.S. GSE and government agency MBS and U.S. Treasuries. Refer to Corporate results on pages 80-82 and Note 10 for additional information.Mortgage fees and related income: refer to Notes 6 and 15 for additional information. Card income decreased driven by the net impact of:•lower income in CCB, reflecting lower net interchange income, as well as an increase in amortization related to new account origination costs, partially offset by higher annual fees. Net interchange income decreased as the impact of increased debit and credit card sales volume was more than offset by higher rewards costs and partner payments, and•higher card revenue in CIB Payments as a result of higher volume.Refer to CCB and CIB segment results on pages 65-68 and pages 69-75, respectively, and Note 6 for additional information.Other income decreased, reflecting: •the absence in Corporate of the $7.9 billion net gain related to Visa shares recorded in the second quarter of 2024,partially offset by•higher auto operating lease income in CCB due to growth in volume,•the $588 million First Republic-related gain recorded in the first quarter of 2025 in Corporate, and•lower losses related to certain equity investments in CIB.Refer to CCB and CIB segment and Corporate results on pages 65-68, pages 69-75 and pages 80-82, respectively, for additional information; Note 6 for additional information on Visa shares; and Notes 6 and 34 for additional information on the First Republic acquisition.Net interest income increased driven by higher Markets net interest income, higher revolving balances in Card Services, higher wholesale deposit balances, and the impact of investment securities activity. These factors were largely offset by deposit margin compression and the impact of lower rates.The Firm's average interest-earning assets were $3.8 trillion, up $297 billion, and the yield was 5.05%, down 45 bps. The net yield on these assets, on an FTE basis, was 2.50%, a decrease of 13 bps. The net yield excluding Markets was 3.75%, a decrease of 9 bps, when compared to the prior year.Refer to the Consolidated average balance sheets, interest and rates schedule on pages 315-319 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 59-61 for an additional discussion of net yield excluding Markets. Investment securities losses decreased, reflecting lower losses on sales of securities associated with repositioning the investment securities portfolio in Treasury and CIO. The prior year net loss was primarily related to sales of U.S. GSE and government agency MBS and U.S. Treasuries. Refer to Corporate results on pages 80-82 and Note 10 for additional information.Mortgage fees and related income: refer to Notes 6 and 15 for additional information. Card income decreased driven by the net impact of:•lower income in CCB, reflecting lower net interchange income, as well as an increase in amortization related to new account origination costs, partially offset by higher annual fees. Net interchange income decreased as the impact of increased debit and credit card sales volume was more than offset by higher rewards costs and partner payments, and•higher card revenue in CIB Payments as a result of higher volume.Refer to CCB and CIB segment results on pages 65-68 and pages 69-75, respectively, and Note 6 for additional information.Other income decreased, reflecting: •the absence in Corporate of the $7.9 billion net gain related to Visa shares recorded in the second quarter of 2024,partially offset by•higher auto operating lease income in CCB due to growth in volume,•the $588 million First Republic-related gain recorded in the first quarter of 2025 in Corporate, and•lower losses related to certain equity investments in CIB.Refer to CCB and CIB segment and Corporate results on pages 65-68, pages 69-75 and pages 80-82, respectively, for additional information; Note 6 for additional information on Visa shares; and Notes 6 and 34 for additional information on the First Republic acquisition. Investment securities losses decreased, reflecting lower losses on sales of securities associated with repositioning the investment securities portfolio in Treasury and CIO. The prior year net loss was primarily related to sales of U.S. GSE and government agency MBS and U.S. Treasuries. Refer to Corporate results on pages 80-82 and Note 10 for additional information. Mortgage fees and related income: refer to Notes 6 and 15 for additional information. Card income decreased driven by the net impact of: •lower income in CCB, reflecting lower net interchange income, as well as an increase in amortization related to new account origination costs, partially offset by higher annual fees. Net interchange income decreased as the impact of increased debit and credit card sales volume was more than offset by higher rewards costs and partner payments, and •higher card revenue in CIB Payments as a result of higher volume. Refer to CCB and CIB segment results on pages 65-68 and pages 69-75, respectively, and Note 6 for additional information. Other income decreased, reflecting: •the absence in Corporate of the $7.9 billion net gain related to Visa shares recorded in the second quarter of 2024, partially offset by •higher auto operating lease income in CCB due to growth in volume, •the $588 million First Republic-related gain recorded in the first quarter of 2025 in Corporate, and •lower losses related to certain equity investments in CIB. Refer to CCB and CIB segment and Corporate results on pages 65-68, pages 69-75 and pages 80-82, respectively, for additional information; Note 6 for additional information on Visa shares; and Notes 6 and 34 for additional information on the First Republic acquisition. Net interest income increased driven by higher Markets net interest income, higher revolving balances in Card Services, higher wholesale deposit balances, and the impact of investment securities activity. These factors were largely offset by deposit margin compression and the impact of lower rates.The Firm's average interest-earning assets were $3.8 trillion, up $297 billion, and the yield was 5.05%, down 45 bps. The net yield on these assets, on an FTE basis, was 2.50%, a decrease of 13 bps. The net yield excluding Markets was 3.75%, a decrease of 9 bps, when compared to the prior year.Refer to the Consolidated average balance sheets, interest and rates schedule on pages 315-319 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 59-61 for an additional discussion of net yield excluding Markets. Net interest income increased driven by higher Markets net interest income, higher revolving balances in Card Services, higher wholesale deposit balances, and the impact of investment securities activity. These factors were largely offset by deposit margin compression and the impact of lower rates. The Firm's average interest-earning assets were $3.8 trillion, up $297 billion, and the yield was 5.05%, down 45 bps. The net yield on these assets, on an FTE basis, was 2.50%, a decrease of 13 bps. The net yield excluding Markets was 3.75%, a decrease of 9 bps, when compared to the prior year. Refer to the Consolidated average balance sheets, interest and rates schedule on pages 315-319 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 59-61 for an additional discussion of net yield excluding Markets. 52JPMorgan Chase & Co./2025 Form 10-K 52JPMorgan Chase & Co./2025 Form 10-K 52JPMorgan Chase & Co./2025 Form 10-K 52 JPMorgan Chase & Co./2025 Form 10-K Provision for credit lossesYear ended December 31,(in millions)202520242023Consumer, excluding credit card$693 $631 $935 Credit card10,829 9,292 6,048 Total consumer11,522 9,923 6,983 Wholesale2,718 731 2,299 Investment securities(28)24 38 Total provision for credit losses$14,212 $10,678 $9,320 2025 compared with 2024 The provision for credit losses was $14.2 billion. Net charge-offs were $9.8 billion and the net addition to the allowance for credit losses was $4.4 billion. The provision for credit losses included:•$11.5 billion in consumer, consisting of net charge-offs of $8.3 billion, predominantly driven by Card Services, reflecting loan growth, and a net addition to the allowance for credit losses of $3.3 billion which was driven by $2.2 billion related to the Apple Card transaction, loan growth in Card Services and the impact of changes in the Firm's weighted-average macroeconomic outlook, partially offset by reduced borrower uncertainty, and•$2.7 billion in wholesale, driven by net increases in the loan and lending-related commitment portfolios, net changes in credit quality of client-specific exposures, an update to loss assumptions on certain leveraged loans, and estimated losses related to borrower fraud in certain secured lending facilities, partially offset by the impact of changes in the Firm's weighted-average macroeconomic outlook. Net charge-offs were $1.6 billion and the net addition to the allowance for credit losses was $1.1 billion.In the prior year, the provision was $10.7 billion, net charge-offs were $8.6 billion and the net addition to the allowance for credit losses was $2.0 billion.Refer to CCB, CIB and AWM segment and Corporate results on pages 65-68, pages 69-75, pages 76-79, and pages 80-82, respectively; Allowance for Credit Losses on pages 129-131; Critical Accounting Estimates Used by the Firm on pages 154-157; and Notes 12 and 13 for additional information on the credit portfolio and the allowance for credit losses. Provision for credit lossesYear ended December 31,(in millions)202520242023Consumer, excluding credit card$693 $631 $935 Credit card10,829 9,292 6,048 Total consumer11,522 9,923 6,983 Wholesale2,718 731 2,299 Investment securities(28)24 38 Total provision for credit losses$14,212 $10,678 $9,320 2025 compared with 2024 The provision for credit losses was $14.2 billion. Net charge-offs were $9.8 billion and the net addition to the allowance for credit losses was $4.4 billion. The provision for credit losses included:•$11.5 billion in consumer, consisting of net charge-offs of $8.3 billion, predominantly driven by Card Services, reflecting loan growth, and a net addition to the allowance for credit losses of $3.3 billion which was driven by $2.2 billion related to the Apple Card transaction, loan growth in Card Services and the impact of changes in the Firm's weighted-average macroeconomic outlook, partially offset by reduced borrower uncertainty, and•$2.7 billion in wholesale, driven by net increases in the loan and lending-related commitment portfolios, net changes in credit quality of client-specific exposures, an update to loss assumptions on certain leveraged loans, and estimated losses related to borrower fraud in certain secured lending facilities, partially offset by the impact of changes in the Firm's weighted-average macroeconomic outlook. Net charge-offs were $1.6 billion and the net addition to the allowance for credit losses was $1.1 billion.In the prior year, the provision was $10.7 billion, net charge-offs were $8.6 billion and the net addition to the allowance for credit losses was $2.0 billion.Refer to CCB, CIB and AWM segment and Corporate results on pages 65-68, pages 69-75, pages 76-79, and pages 80-82, respectively; Allowance for Credit Losses on pages 129-131; Critical Accounting Estimates Used by the Firm on pages 154-157; and Notes 12 and 13 for additional information on the credit portfolio and the allowance for credit losses. Provision for credit lossesYear ended December 31,(in millions)202520242023Consumer, excluding credit card$693 $631 $935 Credit card10,829 9,292 6,048 Total consumer11,522 9,923 6,983 Wholesale2,718 731 2,299 Investment securities(28)24 38 Total provision for credit losses$14,212 $10,678 $9,320 Consumer, excluding credit card --- ## Modified Risk: Loss days(a) **Key changes:** - Updated: "(a)Markets consists of Fixed Income Markets and Equity Markets." - Updated: "For more information on daily backtesting gains and losses, refer to the VaR discussion on pages 135-138." - Updated: "74JPMorgan Chase & Co./2025 Form 10-K 74JPMorgan Chase & Co./2025 Form 10-K 74JPMorgan Chase & Co./2025 Form 10-K 74 JPMorgan Chase & Co./2025 Form 10-K International metricsAs of or for the year ended December 31, (in millions, except where otherwise noted)202520242023Total net revenue(a)Europe/Middle East/Africa$17,189 $15,191 $14,418 Asia-Pacific10,699 8,867 7,891 Latin America/Caribbean2,636 2,427 2,161 Total international net revenue30,524 26,485 24,470 North America47,930 43,629 39,883 Total net revenue$78,454 $70,114 $64,353 Loans retained (period-end)(a)Europe/Middle East/Africa$60,299 $44,374 $44,793 Asia-Pacific20,390 16,107 15,506 Latin America/Caribbean11,993 10,331 8,610 Total international loans92,682 70,812 68,909 North America465,846 412,231 406,277 Total loans retained$558,528 $483,043 $475,186 Client deposits and other third-party liabilities (average)(b)Europe/Middle East/Africa$297,959 $264,227 $247,804 Asia-Pacific155,950 141,042 135,388 Latin America/Caribbean47,064 42,716 39,861 Total international$500,973 $447,985 $423,053 North America596,608 513,661 489,806 Total client deposits and other third-party liabilities$1,097,581 $961,646 $912,859 AUC (period-end)(b)(in billions)North America$27,763 $23,845 $21,792 All other regions13,409 11,435 10,600 Total AUC$41,172 $35,280 $32,392" **Prior (2025):** (a)The decline in Equity Markets net interest income was driven by higher funding costs. (b)Markets consists of Fixed Income Markets and Equity Markets. Loss days represent the number of days for which Markets recorded losses in total net revenue, which includes revenue related to both trading and non-trading positions. The loss days determined under this measure differ from the measure used to determine backtesting gains and losses. Daily backtesting gains and losses include positions in the Firm's Risk Management value-at-risk ("VaR") measure and exclude certain components of total net revenue, which may more than offset backtesting gains or losses on a particular day. For more information on daily backtesting gains and losses, refer to the VaR discussion on pages 143-145. (c)In the fourth quarter of 2024, certain net funding costs that were previously allocated to Fixed Income Markets were reclassified to Equity Markets. Prior-period amounts have been revised to conform with the current presentation. Selected metricsAs of or for the year ended December 31, (in millions, except where otherwise noted)202420232022Assets under custody ("AUC") by asset class (period-end) (in billions):Fixed Income$16,409 $15,543 $14,361 Equity14,848 12,927 10,748 Other(a)4,023 3,922 3,526 Total AUC$35,280 $32,392 $28,635 Client deposits and other third-party liabilities (average)(b)$961,646 $912,859 $981,653 Other(a) Client deposits and other third-party liabilities (average)(b) (a)Consists of mutual funds, unit investment trusts, currencies, annuities, insurance contracts, options and other contracts. (b)Client deposits and other third-party liabilities pertain to the Payments and Securities Services businesses. 82JPMorgan Chase & Co./2024 Form 10-K 82JPMorgan Chase & Co./2024 Form 10-K 82JPMorgan Chase & Co./2024 Form 10-K 82 JPMorgan Chase & Co./2024 Form 10-K International metricsAs of or for the year ended December 31, (in millions, except where otherwise noted)202420232022Total net revenue(a)Europe/Middle East/Africa$15,191 $14,418 $15,716 Asia-Pacific8,867 7,891 8,043 Latin America/Caribbean2,427 2,161 2,288 Total international net revenue26,485 24,470 26,047 North America43,629 39,883 33,588 Total net revenue$70,114 $64,353 $59,635 Loans retained (period-end)(a)Europe/Middle East/Africa$44,374 $44,793 $40,715 Asia-Pacific16,107 15,506 16,764 Latin America/Caribbean10,331 8,610 8,866 Total international loans70,812 68,909 66,345 North America412,231 406,277 355,176 Total loans retained$483,043 $475,186 $421,521 Client deposits and other third-party liabilities (average)(b)Europe/Middle East/Africa$264,227 $247,804 $265,061 Asia-Pacific141,042 135,388 136,539 Latin America/Caribbean42,716 39,861 40,531 Total international$447,985 $423,053 $442,131 North America513,661 489,806 539,522 Total client deposits and other third-party liabilities$961,646 $912,859 $981,653 AUC (period-end)(b)(in billions)North America$23,845 $21,792 $19,219 All other regions11,435 10,600 9,416 Total AUC$35,280 $32,392 $28,635 **Current (2026):** (a)Markets consists of Fixed Income Markets and Equity Markets. The year ended December 31, 2025 had two loss days, including one loss day on December 25, 2025 from limited activity primarily in one location. Loss days represent the number of days for which Markets recorded losses in total net revenue, which includes revenue related to both trading and non-trading positions. The loss days determined under this measure differ from the measure used to determine backtesting gains and losses. Daily backtesting gains and losses include positions in the Firm's Risk Management value-at-risk ("VaR") measure and exclude certain components of total net revenue, which may more than offset backtesting gains or losses on a particular day. For more information on daily backtesting gains and losses, refer to the VaR discussion on pages 135-138. Selected metricsAs of or for the year ended December 31, (in millions, except where otherwise noted)202520242023Assets under custody ("AUC") by asset class (period-end) (in billions):Fixed Income$18,322 $16,409 $15,543 Equity17,954 14,848 12,927 Other(a)4,896 4,023 3,922 Total AUC$41,172 $35,280 $32,392 Client deposits and other third-party liabilities (average)(b)$1,097,581 $961,646 $912,859 Other(a) Client deposits and other third-party liabilities (average)(b) (a)Consists of mutual funds, unit investment trusts, currencies, annuities, insurance contracts, options and other contracts. (b)Client deposits and other third-party liabilities pertain to the Payments and Securities Services businesses. 74JPMorgan Chase & Co./2025 Form 10-K 74JPMorgan Chase & Co./2025 Form 10-K 74JPMorgan Chase & Co./2025 Form 10-K 74 JPMorgan Chase & Co./2025 Form 10-K International metricsAs of or for the year ended December 31, (in millions, except where otherwise noted)202520242023Total net revenue(a)Europe/Middle East/Africa$17,189 $15,191 $14,418 Asia-Pacific10,699 8,867 7,891 Latin America/Caribbean2,636 2,427 2,161 Total international net revenue30,524 26,485 24,470 North America47,930 43,629 39,883 Total net revenue$78,454 $70,114 $64,353 Loans retained (period-end)(a)Europe/Middle East/Africa$60,299 $44,374 $44,793 Asia-Pacific20,390 16,107 15,506 Latin America/Caribbean11,993 10,331 8,610 Total international loans92,682 70,812 68,909 North America465,846 412,231 406,277 Total loans retained$558,528 $483,043 $475,186 Client deposits and other third-party liabilities (average)(b)Europe/Middle East/Africa$297,959 $264,227 $247,804 Asia-Pacific155,950 141,042 135,388 Latin America/Caribbean47,064 42,716 39,861 Total international$500,973 $447,985 $423,053 North America596,608 513,661 489,806 Total client deposits and other third-party liabilities$1,097,581 $961,646 $912,859 AUC (period-end)(b)(in billions)North America$27,763 $23,845 $21,792 All other regions13,409 11,435 10,600 Total AUC$41,172 $35,280 $32,392 --- ## Modified Risk: Loan modifications **Key changes:** - Updated: "The Firm grants certain modifications of wholesale loans to borrowers experiencing financial difficulty, which generally align with loans graded substandard or worse consistent with the U.S." **Prior (2025):** The Firm grants certain modifications of wholesale loans to borrowers experiencing financial difficulty. Financial effects of FDMs The following tables provide information on retained wholesale loan modifications considered FDMs. (in millions, except ratios)Secured by real estateYear ended December 31, 2024Amortized cost basis% of loan modifications to total retained Secured by real estate loansFinancial effect of loan modificationsSingle modificationsTerm extension$271 0.17 %Extended loans by a weighted-average of 21 months Other-than-insignificant payment deferral37 0.02 Provided payment deferrals with delayed amounts re-amortized over the remaining tenorMultiple modificationsOther-than-insignificant payment deferral and interest rate reduction46 0.03 Provided payment deferrals with delayed amounts recaptured at maturity and reduced weighted-average contractual interest by 162 bpsTotal$354 (in millions, except ratios) **Current (2026):** The Firm grants certain modifications of wholesale loans to borrowers experiencing financial difficulty, which generally align with loans graded substandard or worse consistent with the U.S. banking regulators' definition of criticized exposures. Financial effects of FDMs The following tables provide information on retained wholesale loan modifications considered FDMs during the years ended December 31, 2025, 2024 and 2023. Secured by real estateYear ended December 31, 2025(in millions, except ratios)Amortized cost basis% of loan modifications to total retained Secured by real estate loansFinancial effect of loan modificationsSingle modificationsTerm extension$736 0.44 %Extended loans by a weighted-average of 14 monthsOther-than-insignificant payment deferral23 0.01 Provided payment deferrals with delayed amounts primarily recaptured at maturityMultiple modificationsOther-than-insignificant payment deferral and term extension54 0.03 Provided payment deferrals with delayed amounts recaptured at maturity and extended loans by a weighted-average of 28 monthsOther(a)2 - NMTotal$815 --- ## Modified Risk: Total liabilities(d) **Key changes:** - Updated: "310JPMorgan Chase & Co./2025 Form 10-K 310JPMorgan Chase & Co./2025 Form 10-K 310JPMorgan Chase & Co./2025 Form 10-K 310 JPMorgan Chase & Co./2025 Form 10-K Statements of cash flowsYear ended December 31, (in millions)202520242023Operating activitiesNet income$57,048 $58,471 $49,552 Less: Net income of subsidiaries and affiliates71,163 72,781 62,868 Parent company net loss(14,115)(14,310)(13,316)Cash dividends from subsidiaries and affiliates50,000 37,000 61,000 Other operating adjustments8,583 (44,671)9,412 Net cash provided by/(used in) operating activities44,468 (21,981)57,096 Investing activitiesNet change in:Advances to and investments in subsidiaries and affiliates, net - - (25,000)All other investing activities, net34 21 25 Net cash provided by/(used in) investing activities34 21 (24,975)Financing activitiesNet change in:Borrowings from subsidiaries and affiliates1,246 49,902 (2,249)Short-term borrowings - (999) - Proceeds from long-term borrowings30,042 44,997 19,398 Payments of long-term borrowings(25,702)(29,753)(25,105)Proceeds from issuance of preferred stock3,000 2,500 - Redemption of preferred stock(3,000)(9,850) - Treasury stock repurchased(31,591)(18,830)(9,824)Dividends paid(16,625)(14,783)(13,463)All other financing activities, net(1,882)(1,270)(879)Net cash provided by/(used in) financing activities(44,512)21,914 (32,122)Net increase/(decrease) in cash and due from banks and deposits with banking subsidiaries(10)(46)(1)Cash and due from banks and deposits with banking subsidiaries at the beginning of the year9,800 9,846 9,847 Cash and due from banks and deposits with banking subsidiaries at the end of the year(b)$9,790 $9,800 $9,846 Cash interest paid$12,399 $14,851 $13,742 Cash income taxes paid, net(e)276 6,252 10,291 (a)Includes interest expense for intercompany derivative hedges on the Firm's LTD and related fair value adjustments, which is offset by related amounts in Other interest expense/(income).(b)Consistent with bank regulatory reporting guidance, includes intercompany time deposits of $8.0 billion as of December 31, 2025, 2024 and 2023." **Prior (2025):** Statements of cash flowsYear ended December 31, (in millions)202420232022Operating activitiesNet income$58,471 $49,552 $37,676 Less: Net income of subsidiaries and affiliates72,781 62,868 44,699 Parent company net loss(14,310)(13,316)(7,023)Cash dividends from subsidiaries and affiliates37,000 61,000 40,500 Other operating adjustments(44,671)9,412 (23,747)Net cash provided by/(used in) operating activities(21,981)57,096 9,730 Investing activitiesNet change in:Advances to and investments in subsidiaries and affiliates, net - (25,000) - All other investing activities, net21 25 31 Net cash provided by/(used in) investing activities21 (24,975)31 Financing activitiesNet change in:Borrowings from subsidiaries and affiliates49,902 (2,249)(4,491)Short-term borrowings(999) - - Proceeds from long-term borrowings44,997 19,398 41,389 Payments of long-term borrowings(29,753)(25,105)(18,294)Proceeds from issuance of preferred stock2,500 - - Redemption of preferred stock(9,850) - (7,434)Treasury stock repurchased(18,830)(9,824)(3,162)Dividends paid(14,783)(13,463)(13,562)All other financing activities, net(1,270)(879)(1,205)Net cash provided by/(used in) financing activities21,914 (32,122)(6,759)Net increase/(decrease) in cash and due from banks and deposits with banking subsidiaries(46)(1)3,002 Cash and due from banks and deposits with banking subsidiaries at the beginning of the year9,846 9,847 6,845 Cash and due from banks and deposits with banking subsidiaries at the end of the year$9,800 $9,846 $9,847 Cash interest paid$14,851 $13,742 $7,462 Cash income taxes paid, net(d)6,252 10,291 6,941 (a)Includes interest expense for intercompany derivative hedges on the Firm's LTD and related fair value adjustments, which is offset by related amounts in Other interest expense/(income).(b)At December 31, 2024, long-term debt that contractually matures in 2025 through 2029 totaled $7.7 billion, $29.3 billion, $20.2 billion, $35.0 billion, and $18.5 billion, respectively.(c)Refer to Notes 20 and 28 for information regarding the Parent Company's guarantees of its subsidiaries' obligations.(d)Represents payments, net of refunds, made by the Parent Company to various taxing authorities and includes taxes paid on behalf of certain of its subsidiaries that are subsequently reimbursed. The reimbursements were $5.0 billion, $13.2 billion, and $11.3 billion for the years ended December 31, 2024, 2023 and 2022, respectively. Statements of cash flowsYear ended December 31, (in millions)202420232022Operating activitiesNet income$58,471 $49,552 $37,676 Less: Net income of subsidiaries and affiliates72,781 62,868 44,699 Parent company net loss(14,310)(13,316)(7,023)Cash dividends from subsidiaries and affiliates37,000 61,000 40,500 Other operating adjustments(44,671)9,412 (23,747)Net cash provided by/(used in) operating activities(21,981)57,096 9,730 Investing activitiesNet change in:Advances to and investments in subsidiaries and affiliates, net - (25,000) - All other investing activities, net21 25 31 Net cash provided by/(used in) investing activities21 (24,975)31 Financing activitiesNet change in:Borrowings from subsidiaries and affiliates49,902 (2,249)(4,491)Short-term borrowings(999) - - Proceeds from long-term borrowings44,997 19,398 41,389 Payments of long-term borrowings(29,753)(25,105)(18,294)Proceeds from issuance of preferred stock2,500 - - Redemption of preferred stock(9,850) - (7,434)Treasury stock repurchased(18,830)(9,824)(3,162)Dividends paid(14,783)(13,463)(13,562)All other financing activities, net(1,270)(879)(1,205)Net cash provided by/(used in) financing activities21,914 (32,122)(6,759)Net increase/(decrease) in cash and due from banks and deposits with banking subsidiaries(46)(1)3,002 Cash and due from banks and deposits with banking subsidiaries at the beginning of the year9,846 9,847 6,845 Cash and due from banks and deposits with banking subsidiaries at the end of the year$9,800 $9,846 $9,847 Cash interest paid$14,851 $13,742 $7,462 Cash income taxes paid, net(d)6,252 10,291 6,941 (a)Includes interest expense for intercompany derivative hedges on the Firm's LTD and related fair value adjustments, which is offset by related amounts in Other interest expense/(income). Statements of cash flowsYear ended December 31, (in millions)202420232022Operating activitiesNet income$58,471 $49,552 $37,676 Less: Net income of subsidiaries and affiliates72,781 62,868 44,699 Parent company net loss(14,310)(13,316)(7,023)Cash dividends from subsidiaries and affiliates37,000 61,000 40,500 Other operating adjustments(44,671)9,412 (23,747)Net cash provided by/(used in) operating activities(21,981)57,096 9,730 Investing activitiesNet change in:Advances to and investments in subsidiaries and affiliates, net - (25,000) - All other investing activities, net21 25 31 Net cash provided by/(used in) investing activities21 (24,975)31 Financing activitiesNet change in:Borrowings from subsidiaries and affiliates49,902 (2,249)(4,491)Short-term borrowings(999) - - Proceeds from long-term borrowings44,997 19,398 41,389 Payments of long-term borrowings(29,753)(25,105)(18,294)Proceeds from issuance of preferred stock2,500 - - Redemption of preferred stock(9,850) - (7,434)Treasury stock repurchased(18,830)(9,824)(3,162)Dividends paid(14,783)(13,463)(13,562)All other financing activities, net(1,270)(879)(1,205)Net cash provided by/(used in) financing activities21,914 (32,122)(6,759)Net increase/(decrease) in cash and due from banks and deposits with banking subsidiaries(46)(1)3,002 Cash and due from banks and deposits with banking subsidiaries at the beginning of the year9,846 9,847 6,845 Cash and due from banks and deposits with banking subsidiaries at the end of the year$9,800 $9,846 $9,847 Cash interest paid$14,851 $13,742 $7,462 Cash income taxes paid, net(d)6,252 10,291 6,941 Cash income taxes paid, net(d) (a)Includes interest expense for intercompany derivative hedges on the Firm's LTD and related fair value adjustments, which is offset by related amounts in Other interest expense/(income). (b)At December 31, 2024, long-term debt that contractually matures in 2025 through 2029 totaled $7.7 billion, $29.3 billion, $20.2 billion, $35.0 billion, and $18.5 billion, respectively.(c)Refer to Notes 20 and 28 for information regarding the Parent Company's guarantees of its subsidiaries' obligations.(d)Represents payments, net of refunds, made by the Parent Company to various taxing authorities and includes taxes paid on behalf of certain of its subsidiaries that are subsequently reimbursed. The reimbursements were $5.0 billion, $13.2 billion, and $11.3 billion for the years ended December 31, 2024, 2023 and 2022, respectively. (b)At December 31, 2024, long-term debt that contractually matures in 2025 through 2029 totaled $7.7 billion, $29.3 billion, $20.2 billion, $35.0 billion, and $18.5 billion, respectively. (c)Refer to Notes 20 and 28 for information regarding the Parent Company's guarantees of its subsidiaries' obligations. (d)Represents payments, net of refunds, made by the Parent Company to various taxing authorities and includes taxes paid on behalf of certain of its subsidiaries that are subsequently reimbursed. The reimbursements were $5.0 billion, $13.2 billion, and $11.3 billion for the years ended December 31, 2024, 2023 and 2022, respectively. 318JPMorgan Chase & Co./2024 Form 10-K 318JPMorgan Chase & Co./2024 Form 10-K 318JPMorgan Chase & Co./2024 Form 10-K 318 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** 310JPMorgan Chase & Co./2025 Form 10-K 310JPMorgan Chase & Co./2025 Form 10-K 310JPMorgan Chase & Co./2025 Form 10-K 310 JPMorgan Chase & Co./2025 Form 10-K Statements of cash flowsYear ended December 31, (in millions)202520242023Operating activitiesNet income$57,048 $58,471 $49,552 Less: Net income of subsidiaries and affiliates71,163 72,781 62,868 Parent company net loss(14,115)(14,310)(13,316)Cash dividends from subsidiaries and affiliates50,000 37,000 61,000 Other operating adjustments8,583 (44,671)9,412 Net cash provided by/(used in) operating activities44,468 (21,981)57,096 Investing activitiesNet change in:Advances to and investments in subsidiaries and affiliates, net - - (25,000)All other investing activities, net34 21 25 Net cash provided by/(used in) investing activities34 21 (24,975)Financing activitiesNet change in:Borrowings from subsidiaries and affiliates1,246 49,902 (2,249)Short-term borrowings - (999) - Proceeds from long-term borrowings30,042 44,997 19,398 Payments of long-term borrowings(25,702)(29,753)(25,105)Proceeds from issuance of preferred stock3,000 2,500 - Redemption of preferred stock(3,000)(9,850) - Treasury stock repurchased(31,591)(18,830)(9,824)Dividends paid(16,625)(14,783)(13,463)All other financing activities, net(1,882)(1,270)(879)Net cash provided by/(used in) financing activities(44,512)21,914 (32,122)Net increase/(decrease) in cash and due from banks and deposits with banking subsidiaries(10)(46)(1)Cash and due from banks and deposits with banking subsidiaries at the beginning of the year9,800 9,846 9,847 Cash and due from banks and deposits with banking subsidiaries at the end of the year(b)$9,790 $9,800 $9,846 Cash interest paid$12,399 $14,851 $13,742 Cash income taxes paid, net(e)276 6,252 10,291 (a)Includes interest expense for intercompany derivative hedges on the Firm's LTD and related fair value adjustments, which is offset by related amounts in Other interest expense/(income).(b)Consistent with bank regulatory reporting guidance, includes intercompany time deposits of $8.0 billion as of December 31, 2025, 2024 and 2023. (c)At December 31, 2025, long-term debt that contractually matures in 2026 through 2030 totaled $14.3 billion, $20.3 billion, $36.4 billion, $22.4 billion, and $23.6 billion, respectively.(d)Refer to Notes 20 and 28 for information regarding the Parent Company's guarantees of its subsidiaries' obligations.(e)Represents payments, net of refunds, made by the Parent Company to various taxing authorities and includes taxes paid on behalf of certain of its subsidiaries that are subsequently reimbursed. The reimbursements were $713 million, $5.0 billion, and $13.2 billion for the years ended December 31, 2025, 2024 and 2023, respectively. Statements of cash flowsYear ended December 31, (in millions)202520242023Operating activitiesNet income$57,048 $58,471 $49,552 Less: Net income of subsidiaries and affiliates71,163 72,781 62,868 Parent company net loss(14,115)(14,310)(13,316)Cash dividends from subsidiaries and affiliates50,000 37,000 61,000 Other operating adjustments8,583 (44,671)9,412 Net cash provided by/(used in) operating activities44,468 (21,981)57,096 Investing activitiesNet change in:Advances to and investments in subsidiaries and affiliates, net - - (25,000)All other investing activities, net34 21 25 Net cash provided by/(used in) investing activities34 21 (24,975)Financing activitiesNet change in:Borrowings from subsidiaries and affiliates1,246 49,902 (2,249)Short-term borrowings - (999) - Proceeds from long-term borrowings30,042 44,997 19,398 Payments of long-term borrowings(25,702)(29,753)(25,105)Proceeds from issuance of preferred stock3,000 2,500 - Redemption of preferred stock(3,000)(9,850) - Treasury stock repurchased(31,591)(18,830)(9,824)Dividends paid(16,625)(14,783)(13,463)All other financing activities, net(1,882)(1,270)(879)Net cash provided by/(used in) financing activities(44,512)21,914 (32,122)Net increase/(decrease) in cash and due from banks and deposits with banking subsidiaries(10)(46)(1)Cash and due from banks and deposits with banking subsidiaries at the beginning of the year9,800 9,846 9,847 Cash and due from banks and deposits with banking subsidiaries at the end of the year(b)$9,790 $9,800 $9,846 Cash interest paid$12,399 $14,851 $13,742 Cash income taxes paid, net(e)276 6,252 10,291 (a)Includes interest expense for intercompany derivative hedges on the Firm's LTD and related fair value adjustments, which is offset by related amounts in Other interest expense/(income).(b)Consistent with bank regulatory reporting guidance, includes intercompany time deposits of $8.0 billion as of December 31, 2025, 2024 and 2023. Statements of cash flowsYear ended December 31, (in millions)202520242023Operating activitiesNet income$57,048 $58,471 $49,552 Less: Net income of subsidiaries and affiliates71,163 72,781 62,868 Parent company net loss(14,115)(14,310)(13,316)Cash dividends from subsidiaries and affiliates50,000 37,000 61,000 Other operating adjustments8,583 (44,671)9,412 Net cash provided by/(used in) operating activities44,468 (21,981)57,096 Investing activitiesNet change in:Advances to and investments in subsidiaries and affiliates, net - - (25,000)All other investing activities, net34 21 25 Net cash provided by/(used in) investing activities34 21 (24,975)Financing activitiesNet change in:Borrowings from subsidiaries and affiliates1,246 49,902 (2,249)Short-term borrowings - (999) - Proceeds from long-term borrowings30,042 44,997 19,398 Payments of long-term borrowings(25,702)(29,753)(25,105)Proceeds from issuance of preferred stock3,000 2,500 - Redemption of preferred stock(3,000)(9,850) - Treasury stock repurchased(31,591)(18,830)(9,824)Dividends paid(16,625)(14,783)(13,463)All other financing activities, net(1,882)(1,270)(879)Net cash provided by/(used in) financing activities(44,512)21,914 (32,122)Net increase/(decrease) in cash and due from banks and deposits with banking subsidiaries(10)(46)(1)Cash and due from banks and deposits with banking subsidiaries at the beginning of the year9,800 9,846 9,847 Cash and due from banks and deposits with banking subsidiaries at the end of the year(b)$9,790 $9,800 $9,846 Cash interest paid$12,399 $14,851 $13,742 Cash income taxes paid, net(e)276 6,252 10,291 --- ## Modified Risk: Gains and losses on sales of loans **Key changes:** - Updated: "The following table provides information on the net gains/(losses) on sales of loans and lending-related commitments (including adjustments to record loans and lending-related commitments held-for-sale at the lower of cost or fair value), which were recognized in noninterest revenue." - Updated: "Year ended December 31,(in millions)202520242023Net gains/(losses) on sales of loans and lending-related commitments (a)$208 $154 $56 Net gains/(losses) on sales of loans and lending-related commitments (a) (a)Includes $148 million, $113 million and $62 million related to loans for the years ended December 31, 2025, 2024 and 2023, respectively." **Prior (2025):** Net gains/(losses) on sales of loans and lending-related commitments (including adjustments to record loans and lending-related commitments held-for-sale at the lower of cost or fair value) recognized in noninterest revenue were $154 million for the year ended December 31, 2024, of which $113 million were related to loans. Net gains/(losses) on sales of loans and lending-related commitments were $56 million for the year ended December 31, 2023, of which $62 million were related to loans. Net gains/(losses) on sales of loans and lending-related commitments were $(186) million for the year ended December 31, 2022, of which $(48) million were related to loans. In addition, the sale of loans may also result in write downs, recoveries or changes in the allowance recognized in the provision for credit losses. JPMorgan Chase & Co./2024 Form 10-K247 JPMorgan Chase & Co./2024 Form 10-K247 JPMorgan Chase & Co./2024 Form 10-K247 JPMorgan Chase & Co./2024 Form 10-K 247 **Current (2026):** The following table provides information on the net gains/(losses) on sales of loans and lending-related commitments (including adjustments to record loans and lending-related commitments held-for-sale at the lower of cost or fair value), which were recognized in noninterest revenue. In addition, the sale of loans may also result in write downs, recoveries or changes in the allowance recognized in the provision for credit losses. Year ended December 31,(in millions)202520242023Net gains/(losses) on sales of loans and lending-related commitments (a)$208 $154 $56 Net gains/(losses) on sales of loans and lending-related commitments (a) (a)Includes $148 million, $113 million and $62 million related to loans for the years ended December 31, 2025, 2024 and 2023, respectively. 240JPMorgan Chase & Co./2025 Form 10-K 240JPMorgan Chase & Co./2025 Form 10-K 240JPMorgan Chase & Co./2025 Form 10-K 240 JPMorgan Chase & Co./2025 Form 10-K --- ## Modified Risk: Nonrecurring fair value changes **Key changes:** - Updated: "The following table presents the total change in value of assets and liabilities for which fair value adjustments have been recognized for the years ended December 31, 2025, 2024 and 2023, related to assets and liabilities held at those dates." **Prior (2025):** The following table presents the total change in value of assets and liabilities for which fair value adjustments have been recognized for the years ended December 31, 2024, 2023 and 2022, related to assets and liabilities held at those dates. December 31, (in millions)202420232022Loans$(302) $(276)$(55)Other assets(a)(610) (789)(409)Accounts payable and other liabilities - - (83)Total nonrecurring fair value gains/(losses)$(912)$(1,065)$(547)(a)Included $(197) million, $(232) million and $(338) million for the years ended December 31, 2024, 2023 and 2022, respectively, of net gains/(losses) as a result of the measurement alternative. The current period also included impairments on certain equity method investments. The following table presents the total change in value of assets and liabilities for which fair value adjustments have been recognized for the years ended December 31, 2024, 2023 and 2022, related to assets and liabilities held at those dates. December 31, (in millions)202420232022Loans$(302) $(276)$(55)Other assets(a)(610) (789)(409)Accounts payable and other liabilities - - (83)Total nonrecurring fair value gains/(losses)$(912)$(1,065)$(547)(a)Included $(197) million, $(232) million and $(338) million for the years ended December 31, 2024, 2023 and 2022, respectively, of net gains/(losses) as a result of the measurement alternative. The current period also included impairments on certain equity method investments. The following table presents the total change in value of assets and liabilities for which fair value adjustments have been recognized for the years ended December 31, 2024, 2023 and 2022, related to assets and liabilities held at those dates. December 31, (in millions)202420232022Loans$(302) $(276)$(55)Other assets(a)(610) (789)(409)Accounts payable and other liabilities - - (83)Total nonrecurring fair value gains/(losses)$(912)$(1,065)$(547) Other assets(a) **Current (2026):** The following table presents the total change in value of assets and liabilities for which fair value adjustments have been recognized for the years ended December 31, 2025, 2024 and 2023, related to assets and liabilities held at those dates. December 31, (in millions)202520242023Loans$(151) $(302)$(276)Other assets(a)101 (610)(789)Accounts payable and other liabilities(5) - - Total nonrecurring fair value gains/(losses)$(55)$(912)$(1,065)(a)Included $122 million, $(197) million and $(232) million for the years ended December 31, 2025, 2024 and 2023, respectively, of net gains/(losses) as a result of the measurement alternative. Also included impairments on certain equity method investments for the years ended December 31, 2025 and 2024. The following table presents the total change in value of assets and liabilities for which fair value adjustments have been recognized for the years ended December 31, 2025, 2024 and 2023, related to assets and liabilities held at those dates. December 31, (in millions)202520242023Loans$(151) $(302)$(276)Other assets(a)101 (610)(789)Accounts payable and other liabilities(5) - - Total nonrecurring fair value gains/(losses)$(55)$(912)$(1,065)(a)Included $122 million, $(197) million and $(232) million for the years ended December 31, 2025, 2024 and 2023, respectively, of net gains/(losses) as a result of the measurement alternative. Also included impairments on certain equity method investments for the years ended December 31, 2025 and 2024. The following table presents the total change in value of assets and liabilities for which fair value adjustments have been recognized for the years ended December 31, 2025, 2024 and 2023, related to assets and liabilities held at those dates. December 31, (in millions)202520242023Loans$(151) $(302)$(276)Other assets(a)101 (610)(789)Accounts payable and other liabilities(5) - - Total nonrecurring fair value gains/(losses)$(55)$(912)$(1,065) Other assets(a) --- ## Modified Risk: Total allowance for credit losses **Key changes:** - Updated: "JPMorgan Chase & Co./2025 Form 10-K77 JPMorgan Chase & Co./2025 Form 10-K77 JPMorgan Chase & Co./2025 Form 10-K77 JPMorgan Chase & Co./2025 Form 10-K 77 (b)Quartile ranking sourced from Morningstar, Lipper and Nomura based on country of domicile." - Updated: "Excludes money market funds, Undiscovered Managers Fund, and Brazil domiciled funds.(c)Loans, deposits and related credit data and quality statistics relate to the Global Private Bank business.(d)In the first quarter of 2025, 130 employees were transferred to Corporate as a result of the centralization of certain functions.Client assets2025 compared with 2024Assets under management were $4.8 trillion, up 18%, and client assets were $7.1 trillion, up 20%." - Updated: "Excludes money market funds, Undiscovered Managers Fund, and Brazil domiciled funds.(c)Loans, deposits and related credit data and quality statistics relate to the Global Private Bank business.(d)In the first quarter of 2025, 130 employees were transferred to Corporate as a result of the centralization of certain functions.Client assets2025 compared with 2024Assets under management were $4.8 trillion, up 18%, and client assets were $7.1 trillion, up 20%." - Updated: "(d)In the first quarter of 2025, 130 employees were transferred to Corporate as a result of the centralization of certain functions." **Prior (2025):** Allowance for loan losses to period-end loans Allowance for loan losses to nonaccrual loans Nonaccrual loans to period-end loans (a)Represents the Morningstar Rating for all domiciled funds except for Japan domiciled funds which use Nomura. Includes only Asset Management retail active open-ended mutual funds and active ETFs that have a rating. Excludes money market funds, Undiscovered Managers Fund, and Brazil domiciled funds. JPMorgan Chase & Co./2024 Form 10-K85 JPMorgan Chase & Co./2024 Form 10-K85 JPMorgan Chase & Co./2024 Form 10-K85 JPMorgan Chase & Co./2024 Form 10-K 85 (b)Quartile ranking sourced from Morningstar, Lipper and Nomura based on country of domicile. Includes only Asset Management retail active open-ended mutual funds and active ETFs that are ranked by the aforementioned sources. Excludes money market funds, Undiscovered Managers Fund, and Brazil domiciled funds.(c)Loans, deposits and related credit data and quality statistics relate to the Global Private Bank business.(d)In the fourth quarter of 2023, certain deposits associated with First Republic were transferred to AWM from CCB.Client assets2024 compared with 2023Assets under management were $4.0 trillion and client assets were $5.9 trillion, each up 18%, driven by continued net inflows and higher market levels.Client assetsDecember 31, (in billions)202420232022Assets by asset classLiquidity$1,083 $926 $654 Fixed income851 751 638 Equity1,128 868 670 Multi-asset764 680 603 Alternatives219 197 201 Total assets under management4,045 3,422 2,766 Custody/brokerage/administration/deposits1,887 1,590 1,282 Total client assets(a)$5,932 $5,012 $4,048 Assets by client segmentPrivate Banking$1,234 $974 $751 Global Institutional1,692 1,488 1,252 Global Funds1,119 960 763 Total assets under management$4,045 $3,422 $2,766 Private Banking$2,974 $2,452 $1,964 Global Institutional1,820 1,594 1,314 Global Funds1,138 966 770 Total client assets(a)$5,932 $5,012 $4,048 (a)Includes CCB client investment assets invested in managed accounts and J.P. Morgan mutual funds where AWM is the investment manager.Client assets (continued)Year ended December 31,(in billions)202420232022Assets under management rollforwardBeginning balance$3,422 $2,766 $3,113 Net asset flows:Liquidity140 242 (55)Fixed income91 70 13 Equity114 70 35 Multi-asset19 1 (9)Alternatives10 (1)8 Market/performance/other impacts249 274 (339)Ending balance, December 31$4,045 $3,422 $2,766 Client assets rollforwardBeginning balance$5,012 $4,048 $4,295 Net asset flows486 490 49 Market/performance/other impacts434 474 (296)Ending balance, December 31$5,932 $5,012 $4,048 Selected MetricsAs of December 31,20242023ChangeFirmwide Wealth ManagementClient assets (in billions)(a)$3,756 $3,177 18 %Number of client advisors9,530 8,971 6 Stock Plan Administration(b)Number of stock plan participants (in thousands)1,327 974 36 Client assets (in billions)$270 $230 17 %(a) Consists of Global Private Bank in AWM and client investment assets in J.P. Morgan Wealth Management in CCB.(b)Relates to an equity plan administration business which was acquired in 2022 with the Firm's purchase of Global Shares. The increase in 2024 includes the impact of onboarding participants in the Firm's employee stock plans during the fourth quarter of 2024. (b)Quartile ranking sourced from Morningstar, Lipper and Nomura based on country of domicile. Includes only Asset Management retail active open-ended mutual funds and active ETFs that are ranked by the aforementioned sources. Excludes money market funds, Undiscovered Managers Fund, and Brazil domiciled funds.(c)Loans, deposits and related credit data and quality statistics relate to the Global Private Bank business.(d)In the fourth quarter of 2023, certain deposits associated with First Republic were transferred to AWM from CCB.Client assets2024 compared with 2023Assets under management were $4.0 trillion and client assets were $5.9 trillion, each up 18%, driven by continued net inflows and higher market levels.Client assetsDecember 31, (in billions)202420232022Assets by asset classLiquidity$1,083 $926 $654 Fixed income851 751 638 Equity1,128 868 670 Multi-asset764 680 603 Alternatives219 197 201 Total assets under management4,045 3,422 2,766 Custody/brokerage/administration/deposits1,887 1,590 1,282 Total client assets(a)$5,932 $5,012 $4,048 Assets by client segmentPrivate Banking$1,234 $974 $751 Global Institutional1,692 1,488 1,252 Global Funds1,119 960 763 Total assets under management$4,045 $3,422 $2,766 Private Banking$2,974 $2,452 $1,964 Global Institutional1,820 1,594 1,314 Global Funds1,138 966 770 Total client assets(a)$5,932 $5,012 $4,048 (a)Includes CCB client investment assets invested in managed accounts and J.P. Morgan mutual funds where AWM is the investment manager. (b)Quartile ranking sourced from Morningstar, Lipper and Nomura based on country of domicile. Includes only Asset Management retail active open-ended mutual funds and active ETFs that are ranked by the aforementioned sources. Excludes money market funds, Undiscovered Managers Fund, and Brazil domiciled funds. (c)Loans, deposits and related credit data and quality statistics relate to the Global Private Bank business. (d)In the fourth quarter of 2023, certain deposits associated with First Republic were transferred to AWM from CCB. **Current (2026):** Allowance for loan losses to period-end loans Allowance for loan losses to nonaccrual loans Nonaccrual loans to period-end loans (a)Represents the Morningstar Rating for all domiciled funds except for Japan domiciled funds which use Nomura. Includes only Asset Management retail active open-ended mutual funds and active ETFs that have a rating. Excludes money market funds, Undiscovered Managers Fund, and Brazil domiciled funds. JPMorgan Chase & Co./2025 Form 10-K77 JPMorgan Chase & Co./2025 Form 10-K77 JPMorgan Chase & Co./2025 Form 10-K77 JPMorgan Chase & Co./2025 Form 10-K 77 (b)Quartile ranking sourced from Morningstar, Lipper and Nomura based on country of domicile. Includes only Asset Management retail active open-ended mutual funds and active ETFs that are ranked by the aforementioned sources. Excludes money market funds, Undiscovered Managers Fund, and Brazil domiciled funds.(c)Loans, deposits and related credit data and quality statistics relate to the Global Private Bank business.(d)In the first quarter of 2025, 130 employees were transferred to Corporate as a result of the centralization of certain functions.Client assets2025 compared with 2024Assets under management were $4.8 trillion, up 18%, and client assets were $7.1 trillion, up 20%. These increases were driven by higher market levels and continued net inflows.Client assetsDecember 31, (in billions)202520242023Assets by asset classLiquidity$1,279 $1,083 $926 Fixed income998 851 751 Equity1,400 1,128 868 Multi-asset884 764 680 Alternatives230 219 197 Total assets under management4,791 4,045 3,422 Custody/brokerage/administration/deposits2,327 1,887 1,590 Total client assets(a)$7,118 $5,932 $5,012 Assets by client segmentPrivate Banking(b)$1,414 $1,162 $924 Global Institutional1,953 1,692 1,488 Global Funds(b)1,424 1,191 1,010 Total assets under management$4,791 $4,045 $3,422 Private Banking(b)$3,549 $2,902 $2,402 Global Institutional2,121 1,820 1,594 Global Funds(b)1,448 1,210 1,016 Total client assets(a)$7,118 $5,932 $5,012 (a)Includes CCB client investment assets invested in managed accounts and J.P. Morgan mutual funds where AWM is the investment manager.(b)In the first quarter of 2025, the Firm realigned certain client assets from Private Banking to Global Funds to reflect them in the client segment where the assets are invested. Prior period amounts have been revised to conform with the current presentation.Client assets (continued)Year ended December 31,(in billions)202520242023Assets under management rollforwardBeginning balance$4,045 $3,422 $2,766 Net asset flows:Liquidity183 140 242 Fixed income94 91 70 Equity95 114 70 Multi-asset16 19 1 Alternatives4 10 (1)Market/performance/other impacts354 249 274 Ending balance, December 31$4,791 $4,045 $3,422 Client assets rollforwardBeginning balance$5,932 $5,012 $4,048 Net asset flows553 486 490 Market/performance/other impacts633 434 474 Ending balance, December 31$7,118 $5,932 $5,012 Selected MetricsAs of December 31,20252024ChangeFirmwide Wealth ManagementClient assets (in billions)(a)$4,521 $3,756 20 %Number of client advisors10,150 9,530 7 Stock Plan AdministrationNumber of stock plan participants (in thousands)1,794 1,327 35 Client assets (in billions)$372 $270 38 %(a)Consists of Global Private Bank in AWM and client investment assets in J.P. Morgan Wealth Management in CCB. (b)Quartile ranking sourced from Morningstar, Lipper and Nomura based on country of domicile. Includes only Asset Management retail active open-ended mutual funds and active ETFs that are ranked by the aforementioned sources. Excludes money market funds, Undiscovered Managers Fund, and Brazil domiciled funds.(c)Loans, deposits and related credit data and quality statistics relate to the Global Private Bank business.(d)In the first quarter of 2025, 130 employees were transferred to Corporate as a result of the centralization of certain functions.Client assets2025 compared with 2024Assets under management were $4.8 trillion, up 18%, and client assets were $7.1 trillion, up 20%. These increases were driven by higher market levels and continued net inflows.Client assetsDecember 31, (in billions)202520242023Assets by asset classLiquidity$1,279 $1,083 $926 Fixed income998 851 751 Equity1,400 1,128 868 Multi-asset884 764 680 Alternatives230 219 197 Total assets under management4,791 4,045 3,422 Custody/brokerage/administration/deposits2,327 1,887 1,590 Total client assets(a)$7,118 $5,932 $5,012 Assets by client segmentPrivate Banking(b)$1,414 $1,162 $924 Global Institutional1,953 1,692 1,488 Global Funds(b)1,424 1,191 1,010 Total assets under management$4,791 $4,045 $3,422 Private Banking(b)$3,549 $2,902 $2,402 Global Institutional2,121 1,820 1,594 Global Funds(b)1,448 1,210 1,016 Total client assets(a)$7,118 $5,932 $5,012 (a)Includes CCB client investment assets invested in managed accounts and J.P. Morgan mutual funds where AWM is the investment manager.(b)In the first quarter of 2025, the Firm realigned certain client assets from Private Banking to Global Funds to reflect them in the client segment where the assets are invested. Prior period amounts have been revised to conform with the current presentation. (b)Quartile ranking sourced from Morningstar, Lipper and Nomura based on country of domicile. Includes only Asset Management retail active open-ended mutual funds and active ETFs that are ranked by the aforementioned sources. Excludes money market funds, Undiscovered Managers Fund, and Brazil domiciled funds. (c)Loans, deposits and related credit data and quality statistics relate to the Global Private Bank business. (d)In the first quarter of 2025, 130 employees were transferred to Corporate as a result of the centralization of certain functions. --- ## Modified Risk: Any failure to maintain adequate data management processes could adversely affect JPMorganChase's ability to effectively manage its businesses, comply with applicable law or make informed business decisions. **Key changes:** - Updated: "JPMorganChase relies on accurate, timely and complete data to effectively operate its systems and processes, including: •assessing risk exposures and limits •monitoring and detecting fraudulent transactions and cyber threats •developing or maintaining models and other analytical and judgment-based estimations •implementing and maintaining compliance programs, and •preparing financial statements, disclosures and regulatory reports, as well as internal reporting Any deficiencies in JPMorganChase's data management processes, including with respect to the accuracy or completeness of data, the timeliness of data collection, the analysis or validation of data, or the safeguarding of data could undermine the reliability and effectiveness of JPMorganChase's operations, such as: •risk management practices, including inaccurate or untimely risk reporting •completion of regulatory reporting or internal or external financial reporting •compliance practices, such as those relating to transaction monitoring, customer screening, recordkeeping or reporting •business activities, including managing JPMorganChase's market-making positions and liquidity and capital levels •providing services to clients and customers, including transaction processing, lending services, account management and customer support, and •fraud detection and prevention processes." - Updated: "These models and estimations are based on historical trends and other assumptions that are periodically reviewed and modified." **Prior (2025):** JPMorganChase must comply with enhanced regulatory and other standards associated with doing 28 28 28 28 business with vendors and other service providers, including standards relating to the outsourcing of functions as well as the performance of significant banking and other functions by subsidiaries. JPMorganChase incurs significant costs and expenses in connection with its initiatives to address the risks associated with oversight of its internal and external service providers. JPMorganChase's failure to appropriately assess and manage these relationships, especially those involving significant banking functions, shared services or other critical activities, could materially adversely affect JPMorganChase. Specifically, any such failure could result in:•potential harm to clients and customers, and any liability associated with that harm•regulatory fines, penalties or other sanctions•lower revenues, and the opportunity cost from lost revenues•increased operational costs, or•harm to JPMorganChase's reputation.JPMorganChase's risk management framework and control environment will not be effective in identifying and mitigating every risk to JPMorganChase.Any inadequacy or lapse in JPMorganChase's risk management framework, governance structure, practices, models or reporting systems, or in its control environment, could expose it to unexpected losses, and its financial condition or results of operations could be materially and adversely affected. Any such inadequacy or lapse could:•hinder the timely escalation of material risk issues to JPMorganChase's senior management and Board of Directors•lead to business decisions that have negative outcomes for JPMorganChase•require significant resources and time to remediate•lead to non-compliance with laws, rules and regulations•attract heightened regulatory scrutiny•expose JPMorganChase to litigation, regulatory investigations or regulatory fines, penalties or other sanctions•lead to potential harm to customers and clients, and any liability associated with that harm•harm its reputation, or •otherwise diminish confidence in JPMorganChase.Many of JPMorganChase's risk management strategies and techniques consider historical market behavior and to some degree are based on management's subjective judgment or assumptions. For example, many models used by JPMorganChase are based on assumptions regarding historical correlations among prices of various asset classes or other market indicators. In times of market stress, including difficult or less liquid market environments, or in the event of other unforeseen circumstances, previously uncorrelated indicators may become correlated. Conversely, previously-correlated indicators may become uncorrelated at those times. Sudden market movements and unanticipated market or economic events could, in some circumstances, limit the effectiveness of JPMorganChase's risk management strategies, causing it to incur losses.JPMorganChase could recognize unexpected losses, its capital levels could be reduced and it could face greater regulatory scrutiny if its models, estimations or judgments, including those used in its financial statements, are inadequate or incorrect.JPMorganChase has developed and uses a variety of models and other analytical and judgment-based estimations to measure, monitor and implement controls over its market, credit, capital, liquidity, operational and other risks. JPMorganChase also uses internal models and estimations as a basis for its stress testing and in connection with the preparation of its financial statements under U.S. generally accepted accounting principles ("U.S. GAAP"). These models and estimations are based on a variety of assumptions and historical trends, and are periodically reviewed and modified as necessary. The models and estimations that JPMorganChase uses, including those that use machine learning or artificial intelligence, may not be effective in all cases to identify, observe and mitigate risk due to a variety of factors, such as:•reliance on historical trends that may not persist in the future, including assumptions underlying the models and estimations such as correlations among certain market indicators or asset prices•inherent limitations associated with forecasting uncertain economic and financial outcomes•historical trend information may be incomplete, or may not be indicative of severely negative market conditions such as extreme volatility, dislocation or lack of liquidity•sudden illiquidity in markets or declines in prices of certain loans and securities may make it more difficult to value certain financial instruments•technology that is introduced to run models or estimations may not perform as expected, or may not be well understood by the personnel using the technology•models and estimations may contain erroneous data, valuations, formulas or algorithms•review processes may fail to detect flaws in models and estimations, and business with vendors and other service providers, including standards relating to the outsourcing of functions as well as the performance of significant banking and other functions by subsidiaries. JPMorganChase incurs significant costs and expenses in connection with its initiatives to address the risks associated with oversight of its internal and external service providers. JPMorganChase's failure to appropriately assess and manage these relationships, especially those involving significant banking functions, shared services or other critical activities, could materially adversely affect JPMorganChase. Specifically, any such failure could result in:•potential harm to clients and customers, and any liability associated with that harm•regulatory fines, penalties or other sanctions•lower revenues, and the opportunity cost from lost revenues•increased operational costs, or•harm to JPMorganChase's reputation.JPMorganChase's risk management framework and control environment will not be effective in identifying and mitigating every risk to JPMorganChase.Any inadequacy or lapse in JPMorganChase's risk management framework, governance structure, practices, models or reporting systems, or in its control environment, could expose it to unexpected losses, and its financial condition or results of operations could be materially and adversely affected. Any such inadequacy or lapse could:•hinder the timely escalation of material risk issues to JPMorganChase's senior management and Board of Directors•lead to business decisions that have negative outcomes for JPMorganChase•require significant resources and time to remediate•lead to non-compliance with laws, rules and regulations•attract heightened regulatory scrutiny•expose JPMorganChase to litigation, regulatory investigations or regulatory fines, penalties or other sanctions•lead to potential harm to customers and clients, and any liability associated with that harm•harm its reputation, or •otherwise diminish confidence in JPMorganChase.Many of JPMorganChase's risk management strategies and techniques consider historical market behavior and to some degree are based on management's subjective judgment or assumptions. For example, many models used by JPMorganChase are based on assumptions regarding historical business with vendors and other service providers, including standards relating to the outsourcing of functions as well as the performance of significant banking and other functions by subsidiaries. JPMorganChase incurs significant costs and expenses in connection with its initiatives to address the risks associated with oversight of its internal and external service providers. JPMorganChase's failure to appropriately assess and manage these relationships, especially those involving significant banking functions, shared services or other critical activities, could materially adversely affect JPMorganChase. Specifically, any such failure could result in: •potential harm to clients and customers, and any liability associated with that harm •regulatory fines, penalties or other sanctions •lower revenues, and the opportunity cost from lost revenues •increased operational costs, or •harm to JPMorganChase's reputation. **Current (2026):** JPMorganChase relies on accurate, timely and complete data to effectively operate its systems and processes, including: •assessing risk exposures and limits •monitoring and detecting fraudulent transactions and cyber threats •developing or maintaining models and other analytical and judgment-based estimations •implementing and maintaining compliance programs, and •preparing financial statements, disclosures and regulatory reports, as well as internal reporting Any deficiencies in JPMorganChase's data management processes, including with respect to the accuracy or completeness of data, the timeliness of data collection, the analysis or validation of data, or the safeguarding of data could undermine the reliability and effectiveness of JPMorganChase's operations, such as: •risk management practices, including inaccurate or untimely risk reporting •completion of regulatory reporting or internal or external financial reporting •compliance practices, such as those relating to transaction monitoring, customer screening, recordkeeping or reporting •business activities, including managing JPMorganChase's market-making positions and liquidity and capital levels •providing services to clients and customers, including transaction processing, lending services, account management and customer support, and •fraud detection and prevention processes. Any of these deficiencies could impair JPMorganChase's ability to make sound business decisions, cause it to incur higher operational and compliance costs, result in operational breakdowns or failure to meet regulatory requirements, negatively affect clients and customers, or cause reputational harm. In addition, if a third-party, whether authorized or unauthorized, obtains and misappropriates data from JPMorganChase's systems, JPMorganChase and its clients and customers could experience negative outcomes, including a heightened risk of fraudulent transactions using JPMorganChase's systems, losses from fraudulent transactions and reputational harm from perceived system insecurity. 25 25 25 25 Part I Part I Enhanced regulatory and other standards for the oversight of JPMorganChase's vendors and other service providers could result in higher costs and other potential exposures.JPMorganChase must comply with enhanced regulatory and other standards when doing business with vendors and other service providers, including those relating to the outsourcing of functions as well as the performance of significant banking and other functions by subsidiaries. JPMorganChase's failure to appropriately assess and manage these relationships, especially those involving significant banking functions, shared services or other critical activities, could materially and adversely affect JPMorganChase. Specifically, any such failure could result in:•potential harm to clients and customers, and any liability associated with that harm•lower revenues, and the opportunity cost from lost revenues•increased operational costs•the imposition of penalties, or•reputational harm.JPMorganChase could incur losses arising from any significant inadequacy or lapse in its risk management framework and control environment.JPMorganChase's financial condition or results of operations could be materially and adversely affected by any significant inadequacy or lapse in its risk management framework, governance structure, practices, models, reporting systems or controls. Any such inadequacy or lapse could:•lead to inaccurate or delayed identification of risks•hinder the timely escalation of material risk issues to JPMorganChase's senior management and Board of Directors•lead to business decisions that have negative outcomes•harm customers or clients, and cause JPMorganChase to incur associated liabilities •require significant resources and time to remediate•lead to non-compliance with applicable law, or attract heightened regulatory scrutiny•expose JPMorganChase to litigation, investigations by governmental authorities or penalties, or•cause reputational harm.JPMorganChase could recognize unexpected losses, its capital levels could be reduced and it could face greater regulatory scrutiny if its models, estimations or judgments, including those used in its financial statements, are inadequate or incorrect.JPMorganChase uses various models and other analytical and judgment-based estimations to measure, monitor and implement controls related to its market, credit, capital, liquidity, operational and other risks, as well as to prepare its financial statements under U.S. generally accepted accounting principles ("U.S. GAAP"). These models and estimations are based on historical trends and other assumptions that are periodically reviewed and modified. The models and estimations that JPMorganChase uses may not be effective in all cases to identify, observe and mitigate risk because of factors such as:•their reliance on historical trends that may not persist, including assumptions underlying the models and estimations such as correlations among certain market indicators or asset prices•inherent limitations associated with forecasting uncertain economic and financial outcomes•historical trend information may be incomplete, or may not be indicative of severely negative market conditions such as extreme volatility, dislocation or lack of liquidity•sudden illiquidity in markets or declines in prices of certain loans and securities could make it more difficult to value certain financial instruments•technology that is introduced to run models or estimations may not perform as expected, or may not be well understood by the personnel using the technology•models and estimations may contain erroneous data, valuations, formulas or algorithms•review processes may fail to detect flaws in models and estimations, and•models may inadvertently incorporate biases present in data used in the models.JPMorganChase could incur unexpected losses if models and estimations used in connection with its risk management activities or the preparation of its financial statements are inadequate or incorrect. For example, where quoted market prices are not available for certain financial instruments that require a determination of their fair value, JPMorganChase may make fair value determinations based on internally developed models or other means which ultimately rely to some degree on management estimates and judgment. In addition, the reliability of JPMorganChase's models and estimations could become more uncertain if assets differ from those used to develop those models and estimations, which could also result in unexpected losses.Similarly, JPMorganChase establishes an allowance for expected losses related to its credit exposures which requires significant judgments, including forecasts of how macroeconomic conditions might impair the ability of JPMorganChase's clients and customers to repay their loans or other obligations. These types of estimates and judgments may be inaccurate due to a variety of factors, including if the current and forecasted environments are significantly different Enhanced regulatory and other standards for the oversight of JPMorganChase's vendors and other service providers could result in higher costs and other potential exposures.JPMorganChase must comply with enhanced regulatory and other standards when doing business with vendors and other service providers, including those relating to the outsourcing of functions as well as the performance of significant banking and other functions by subsidiaries. JPMorganChase's failure to appropriately assess and manage these relationships, especially those involving significant banking functions, shared services or other critical activities, could materially and adversely affect JPMorganChase. Specifically, any such failure could result in:•potential harm to clients and customers, and any liability associated with that harm•lower revenues, and the opportunity cost from lost revenues•increased operational costs•the imposition of penalties, or•reputational harm.JPMorganChase could incur losses arising from any significant inadequacy or lapse in its risk management framework and control environment.JPMorganChase's financial condition or results of operations could be materially and adversely affected by any significant inadequacy or lapse in its risk management framework, governance structure, practices, models, reporting systems or controls. Any such inadequacy or lapse could:•lead to inaccurate or delayed identification of risks•hinder the timely escalation of material risk issues to JPMorganChase's senior management and Board of Directors•lead to business decisions that have negative outcomes•harm customers or clients, and cause JPMorganChase to incur associated liabilities •require significant resources and time to remediate•lead to non-compliance with applicable law, or attract heightened regulatory scrutiny•expose JPMorganChase to litigation, investigations by governmental authorities or penalties, or•cause reputational harm.JPMorganChase could recognize unexpected losses, its capital levels could be reduced and it could face greater regulatory scrutiny if its models, estimations or judgments, including those used in its financial statements, are inadequate or incorrect.JPMorganChase uses various models and other analytical and judgment-based estimations to measure, monitor and implement controls related to its --- ## Modified Risk: Management's discussion and analysis **Key changes:** - Updated: "Total VaRAs of or for the year ended December 31,20252024(in millions) Avg.MinMax Avg.MinMaxCIB trading VaR by risk typeFixed income$35 $27 $51 $34 $26 $53 Foreign exchange9 6 15 15 7 23 Equities17 7 138 (e)8 4 15 Commodities and other24 10 48 8 6 13 Diversification benefit to CIB trading VaR (a)(51)NMNM(32)NMNMCIB trading VaR34 21 142 33 27 42 Credit Portfolio VaR(b)21 16 27 22 18 28 Diversification benefit to CIB VaR(a)(18)NMNM(16)NMNMCIB VaR37 23 133 39 27 52 CCB VaR4 2 7 3 1 6 AWM VaR(c)9 8 12 9 5 10 Corporate VaR(d)10 9 12 23 7 102 Diversification benefit to other VaR(a)(11)NMNM(10)NMNMOther VaR12 10 14 25 10 101 Diversification benefit to CIB and other VaR(a)(9)NMNM(17)NMNMTotal VaR$40 $25 $136 $47 $30 $91" **Prior (2025):** The table below shows the results of the Firm's Risk Management VaR measure using a 95% confidence level. VaR can vary significantly as positions change, market volatility fluctuates, and diversification benefits change. Total VaRAs of or for the year ended December 31,20242023(in millions) Avg.MinMax Avg.MinMaxCIB trading VaR by risk type(a)Fixed income$34 $26 $53 $49 $31 $71 Foreign exchange15 7 23 12 6 26 Equities8 4 15 7 3 11 Commodities and other8 6 13 11 6 19 Diversification benefit to CIB trading VaR (b)(32)NMNM(42)NMNMCIB trading VaR33 27 42 37 24 55 Credit Portfolio VaR(c)22 18 28 14 8 26 Diversification benefit to CIB VaR(b)(16)NMNM(11)NMNMCIB VaR39 27 52 40 23 58 CCB VaR3 1 6 7 1 15 AWM VaR(d)9 5 10 1 - 10 Corporate VaR(d)(e)23 7 102 12 9 17 Diversification benefit to other VaR(b)(10)NMNM(6)NMNMOther VaR25 10 101 14 9 22 Diversification benefit to CIB and other VaR(b)(17)NMNM(11)NMNMTotal VaR$47 $30 $91 $43 $26 $57 **Current (2026):** The table below shows the results of the Firm's Risk Management VaR measure using a 95% confidence level. VaR can vary significantly as positions change, market volatility fluctuates, and diversification benefits change. Total VaRAs of or for the year ended December 31,20252024(in millions) Avg.MinMax Avg.MinMaxCIB trading VaR by risk typeFixed income$35 $27 $51 $34 $26 $53 Foreign exchange9 6 15 15 7 23 Equities17 7 138 (e)8 4 15 Commodities and other24 10 48 8 6 13 Diversification benefit to CIB trading VaR (a)(51)NMNM(32)NMNMCIB trading VaR34 21 142 33 27 42 Credit Portfolio VaR(b)21 16 27 22 18 28 Diversification benefit to CIB VaR(a)(18)NMNM(16)NMNMCIB VaR37 23 133 39 27 52 CCB VaR4 2 7 3 1 6 AWM VaR(c)9 8 12 9 5 10 Corporate VaR(d)10 9 12 23 7 102 Diversification benefit to other VaR(a)(11)NMNM(10)NMNMOther VaR12 10 14 25 10 101 Diversification benefit to CIB and other VaR(a)(9)NMNM(17)NMNMTotal VaR$40 $25 $136 $47 $30 $91 --- ## Modified Risk: AUC (period-end)(b)(in billions) **Key changes:** - Updated: "JPMorgan Chase & Co./2025 Form 10-K75 JPMorgan Chase & Co./2025 Form 10-K75 JPMorgan Chase & Co./2025 Form 10-K75 JPMorgan Chase & Co./2025 Form 10-K 75 ASSET & WEALTH MANAGEMENT Asset & Wealth Management, with client assets of $7.1 trillion, is a global leader in investment and wealth management." **Prior (2025):** (a)Total net revenue and loans retained (excluding loans held-for-sale and loans at fair value) are based on the location of the trading desk, booking location, or domicile of the client, as applicable. (b)Client deposits and other third-party liabilities pertaining to the Payments and Securities Services businesses, and AUC, are based on the domicile of the client or booking location, as applicable. JPMorgan Chase & Co./2024 Form 10-K83 JPMorgan Chase & Co./2024 Form 10-K83 JPMorgan Chase & Co./2024 Form 10-K83 JPMorgan Chase & Co./2024 Form 10-K 83 ASSET & WEALTH MANAGEMENT Asset & Wealth Management, with client assets of $5.9 trillion, is a global leader in investment and wealth management. Asset Management Offers multi-asset investment management solutions across equities, fixed income, alternatives and money market funds to institutional and retail investors providing for a broad range of clients' investment needs.Global Private BankProvides retirement products and services, brokerage, custody, estate planning, lending, deposits and investment management to high net worth clients.The majority of AWM's client assets are in actively managed portfolios.Selected income statement dataYear ended December 31,(in millions, except ratios)202420232022RevenueAsset management fees$13,693 $11,826 $11,510 Commissions and other fees874 697 $662 All other income456 (a)1,037 (a)(b)335 Noninterest revenue15,023 13,560 12,507 Net interest income6,555 6,267 5,241 Total net revenue21,578 19,827 17,748 Provision for credit losses(68)159 128 Noninterest expenseCompensation expense7,984 7,115 6,336 Noncompensation expense6,430 5,665 5,493 Total noninterest expense14,414 12,780 11,829 Income before income tax expense7,232 6,888 5,791 Income tax expense1,811 1,661 1,426 Net income$5,421 $5,227 $4,365 Revenue by line of businessAsset Management $10,175 $9,129 $8,818 Global Private Bank11,403 10,698 8,930 Total net revenue$21,578 $19,827 $17,748 Financial ratiosReturn on equity34 %31 %25 %Overhead ratio67 64 67 Pre-tax margin ratio:Asset Management31 31 30 Global Private Bank35 38 35 Asset & Wealth Management34 35 33 (a)Includes the amortization of the fair value discount on certain acquired lending-related commitments associated with First Republic. The discount is deferred in other liabilities and recognized on a straight-line basis over the commitment period and was largely recognized in 2023 as the commitments were generally short term. Refer to Note 34 for additional information.(b)Includes the gain on the original minority interest in CIFM upon the Firm's acquisition of the remaining 51% interest in the entity.2024 compared with 2023Net income was $5.4 billion, up 4%.Net revenue was $21.6 billion, up 9%. Net interest income was $6.6 billion, up 5%. Noninterest revenue was $15.0 billion, up 11%.Revenue from Asset Management was $10.2 billion, up 11%, driven by: •higher asset management fees, reflecting higher average market levels and strong net inflows, as well as•higher performance fees.The prior year included a gain of $339 million on the original minority interest in CIFM upon the Firm's acquisition of the remaining 51% interest in the entity.Revenue from Global Private Bank was $11.4 billion, up 7%, driven by: •higher noninterest revenue, reflecting:-higher management fees on strong net inflows and higher average market levels, as well as higher brokerage fees, partially offset by-a decline in the amortization of the fair value discount on certain acquired lending-related commitments associated with First Republic that have expired, and•higher net interest income driven by:-higher average deposits associated with First Republic, which were transferred to AWM from CCB in the fourth quarter of 2023, as well as wider spreads on loans and higher average loans, largely offset by-deposit margin compression reflecting higher rates paid.The prior year included net investment valuation losses. Noninterest expense was $14.4 billion, up 13%, predominantly driven by:•higher compensation, including revenue-related compensation, and continued growth in private banking advisor teams, and•higher distribution fees and legal expense,The provision for credit losses was a net benefit of $68 million. The provision in the prior year was $159 million, reflecting a $146 million addition to the allowance for credit losses to establish the allowance for the First Republic loans and lending-related commitments in the second quarter of 2023. Asset & Wealth Management, with client assets of $5.9 trillion, is a global leader in investment and wealth management. Asset Management Offers multi-asset investment management solutions across equities, fixed income, alternatives and money market funds to institutional and retail investors providing for a broad range of clients' investment needs.Global Private BankProvides retirement products and services, brokerage, custody, estate planning, lending, deposits and investment management to high net worth clients.The majority of AWM's client assets are in actively managed portfolios.Selected income statement dataYear ended December 31,(in millions, except ratios)202420232022RevenueAsset management fees$13,693 $11,826 $11,510 Commissions and other fees874 697 $662 All other income456 (a)1,037 (a)(b)335 Noninterest revenue15,023 13,560 12,507 Net interest income6,555 6,267 5,241 Total net revenue21,578 19,827 17,748 Provision for credit losses(68)159 128 Noninterest expenseCompensation expense7,984 7,115 6,336 Noncompensation expense6,430 5,665 5,493 Total noninterest expense14,414 12,780 11,829 Income before income tax expense7,232 6,888 5,791 Income tax expense1,811 1,661 1,426 Net income$5,421 $5,227 $4,365 Revenue by line of businessAsset Management $10,175 $9,129 $8,818 Global Private Bank11,403 10,698 8,930 Total net revenue$21,578 $19,827 $17,748 Financial ratiosReturn on equity34 %31 %25 %Overhead ratio67 64 67 Pre-tax margin ratio:Asset Management31 31 30 Global Private Bank35 38 35 Asset & Wealth Management34 35 33 (a)Includes the amortization of the fair value discount on certain acquired lending-related commitments associated with First Republic. The discount is deferred in other liabilities and recognized on a straight-line basis over the commitment period and was largely recognized in 2023 as the commitments were generally short term. Refer to Note 34 for additional information.(b)Includes the gain on the original minority interest in CIFM upon the Firm's acquisition of the remaining 51% interest in the entity. **Current (2026):** (a)Total net revenue and loans retained (excluding loans held-for-sale and loans at fair value) are based on the location of the trading desk, booking location, or domicile of the client, as applicable. (b)Client deposits and other third-party liabilities pertaining to the Payments and Securities Services businesses, and AUC, are based on the domicile of the client or booking location, as applicable. JPMorgan Chase & Co./2025 Form 10-K75 JPMorgan Chase & Co./2025 Form 10-K75 JPMorgan Chase & Co./2025 Form 10-K75 JPMorgan Chase & Co./2025 Form 10-K 75 ASSET & WEALTH MANAGEMENT Asset & Wealth Management, with client assets of $7.1 trillion, is a global leader in investment and wealth management. Asset Management Offers multi-asset investment management solutions across equities, fixed income, alternatives and money market funds to institutional and retail investors providing for a broad range of clients' investment needs.Global Private BankProvides retirement products and services, brokerage, custody, estate planning, lending, deposits and investment management to high net worth clients.The majority of AWM's client assets are in actively managed portfolios.Selected income statement dataYear ended December 31,(in millions, except ratios)202520242023RevenueAsset management fees$15,494 $13,693 $11,826 Commissions and other fees1,184 874 697 All other income(a)563 456 1,037 (b)Noninterest revenue17,241 15,023 13,560 Net interest income6,832 6,555 6,267 Total net revenue24,073 21,578 19,827 Provision for credit losses97 (68)159 Noninterest expenseCompensation expense8,645 7,984 7,115 Noncompensation expense6,687 6,430 5,665 Total noninterest expense15,332 14,414 12,780 Income before income tax expense8,644 7,232 6,888 Income tax expense2,122 1,811 1,661 Net income$6,522 $5,421 $5,227 Revenue by line of businessAsset Management $11,700 $10,175 $9,129 Global Private Bank12,373 11,403 10,698 Total net revenue$24,073 $21,578 $19,827 Financial ratiosReturn on equity40 %34 %31 %Overhead ratio64 67 64 Pre-tax margin ratio:Asset Management35 31 31 Global Private Bank37 35 38 Asset & Wealth Management36 34 35 (a)Includes the amortization of the fair value discount on certain acquired lending-related commitments associated with First Republic. The discount, which is deferred in other liabilities and recognized on a straight-line basis over the commitment period, continues to decline as commitments expire.(b)Includes the gain on the original minority interest in China International Fund Management ("CIFM") upon the Firm's acquisition of the remaining 51% interest in the entity.2025 compared with 2024Net income was $6.5 billion, up 20%.Net revenue was $24.1 billion, up 12%. Net interest income was $6.8 billion, up 4%. Noninterest revenue was $17.2 billion, up 15%.Revenue from Asset Management was $11.7 billion, up 15%, predominantly driven by: •higher asset management fees, reflecting strong net inflows and higher average market levels,•higher investment valuation gains, and•performance fees.Revenue from Global Private Bank was $12.4 billion, up 9%, driven by: •higher noninterest revenue, reflecting:-higher management fees due to strong net inflows and higher average market levels, as well as higher brokerage commissions, partially offset by-a decline in the amortization of the fair value discount on certain acquired lending-related commitments associated with First Republic that have expired, and•higher net interest income, driven by higher average loans and deposits, largely offset by narrower spreads on loans. Noninterest expense was $15.3 billion, up 6%, driven by:•higher compensation, primarily higher revenue-related compensation and continued growth in private banking advisor teams, as well as higher distribution fees,partially offset by• lower legal expense.The provision for credit losses was $97 million, largely driven by the impact of a charge-off related to a client-specific exposure in the third quarter of 2025. Net charge-offs were $92 million and the net addition to the allowance for credit losses was $5 million. In the prior year, the provision was a net benefit of $68 million. Asset & Wealth Management, with client assets of $7.1 trillion, is a global leader in investment and wealth management. Asset Management Offers multi-asset investment management solutions across equities, fixed income, alternatives and money market funds to institutional and retail investors providing for a broad range of clients' investment needs.Global Private BankProvides retirement products and services, brokerage, custody, estate planning, lending, deposits and investment management to high net worth clients.The majority of AWM's client assets are in actively managed portfolios.Selected income statement dataYear ended December 31,(in millions, except ratios)202520242023RevenueAsset management fees$15,494 $13,693 $11,826 Commissions and other fees1,184 874 697 All other income(a)563 456 1,037 (b)Noninterest revenue17,241 15,023 13,560 Net interest income6,832 6,555 6,267 Total net revenue24,073 21,578 19,827 Provision for credit losses97 (68)159 Noninterest expenseCompensation expense8,645 7,984 7,115 Noncompensation expense6,687 6,430 5,665 Total noninterest expense15,332 14,414 12,780 Income before income tax expense8,644 7,232 6,888 Income tax expense2,122 1,811 1,661 Net income$6,522 $5,421 $5,227 Revenue by line of businessAsset Management $11,700 $10,175 $9,129 Global Private Bank12,373 11,403 10,698 Total net revenue$24,073 $21,578 $19,827 Financial ratiosReturn on equity40 %34 %31 %Overhead ratio64 67 64 Pre-tax margin ratio:Asset Management35 31 31 Global Private Bank37 35 38 Asset & Wealth Management36 34 35 (a)Includes the amortization of the fair value discount on certain acquired lending-related commitments associated with First Republic. The discount, which is deferred in other liabilities and recognized on a straight-line basis over the commitment period, continues to decline as commitments expire.(b)Includes the gain on the original minority interest in China International Fund Management ("CIFM") upon the Firm's acquisition of the remaining 51% interest in the entity. --- ## Modified Risk: Damage to JPMorganChase's reputation could negatively affect its business, results and prospects. **Key changes:** - Updated: "Maintaining the trust, affinity and goodwill of clients, customers, employees and investors is critical to JPMorganChase's ability to operate its business successfully." - Updated: "JPMorganChase could also experience more numerous and aggressive cyber attacks launched by or under the sponsorship of one or more of the adversaries in such a conflict.JPMorganChase's business and operations in certain countries could be adversely affected by local economic, political, regulatory and social factors.Some of the countries where JPMorganChase conducts business have economies or markets that are less developed and more volatile or have political, legal and regulatory regimes that are unpredictable or less established." **Prior (2025):** JPMorganChase's ability to manage potential conflicts of interest is highly complex due to the broad range of its business activities which encompass a variety of transactions, obligations and interests with and among JPMorganChase's clients and customers. JPMorganChase can become subject to litigation, enforcement actions, and heightened regulatory scrutiny, and its reputation can be damaged, by the failure or perceived failure to: •adequately address or appropriately disclose conflicts of interest, including potential conflicts of interest that may arise in connection with providing multiple products and services in, or having one or more investments related to, the same transaction •identify and address any conflict of interest that a third party with which it is does business may have with respect to a transaction involving JPMorganChase •deliver appropriate standards of service and quality 34 34 34 34 •treat clients and customers fairly and with the appropriate standard of care•use client and customer data responsibly and in a manner that meets legal requirements and regulatory expectations•provide fiduciary products or services in accordance with the applicable legal and regulatory standards, or •handle or use confidential information of customers or clients appropriately and in compliance with applicable data protection and privacy laws, rules and regulations. A failure or perceived failure to appropriately address conflicts of interest or fiduciary obligations could result in customer dissatisfaction, litigation and regulatory fines, penalties or other sanctions, and heightened regulatory scrutiny and enforcement actions, all of which can lead to lost revenue and higher operating costs and cause serious harm to JPMorganChase's reputation.CountryAn outbreak or escalation of hostilities between countries or within a country or region could have a material adverse effect on the global economy and on JPMorganChase's businesses within the affected region or globally. Aggressive actions by hostile governments or groups, including armed conflict or intensified cyber attacks, could expand in unpredictable ways by drawing in other countries or escalating into full-scale war with potentially catastrophic consequences, particularly if one or more of the combatants possess nuclear weapons. Depending on the scope of the conflict, the hostilities could result in:•worldwide economic disruption•heightened volatility in financial markets•severe declines in asset values, accompanied by widespread sell-offs of investments•sudden increases in prices in the energy and commodity markets or for certain safe haven currencies•substantial depreciation of local currencies, potentially leading to defaults by borrowers and counterparties in the affected region•disruption of global trade•diminished consumer, business and investor confidence•refugee and humanitarian crises, and•new economic sanctions or other regulatory requirements, including those that introduce exceptional compliance challenges for multinational companies such as JPMorganChase.Any of the above consequences could have significant negative effects on JPMorganChase's operations and earnings, both in the countries or regions directly affected by the hostilities or globally. Further, if the U.S. were to become directly involved in such a conflict, this could lead to a curtailment of any operations that JPMorganChase may have in the affected countries or region, as well as in any nation that is aligned against the U.S. in the hostilities. JPMorganChase could also experience more numerous and aggressive cyber attacks launched by or under the sponsorship of one or more of the adversaries in such a conflict.JPMorganChase's business and operations in certain countries can be adversely affected by local economic, political, regulatory and social factors.Some of the countries in which JPMorganChase conducts business have economies or markets that are less developed and more volatile or may have political, legal and regulatory regimes that are less established or predictable than other countries in which JPMorganChase operates. In addition, in some jurisdictions in which JPMorganChase conducts business, the local economy and business activities are subject to substantial government influence or control. Some of these countries have in the past experienced economic disruptions, including:•extreme currency fluctuations•high inflation•low or negative growth•defaults or reduced ability to service sovereign debt and•increased fraud or other misrepresentation of value.The governments in these countries have sometimes reacted to these developments by imposing restrictive policies that adversely affect the local and regional business environment, such as:•price, capital or exchange controls, including imposition of punitive transfer and convertibility restrictions or forced currency exchange•expropriation or nationalization of assets, including client assets, or confiscation of property, including intellectual property, and•changes in laws, rules and regulations. The impact of these actions could be accentuated in trading markets that are smaller, less liquid and more volatile than more-developed markets. These types of government actions can negatively affect JPMorganChase's operations in the relevant country, either directly or by suppressing the business activities of local clients or multi-national clients that conduct business in the jurisdiction. In addition, emerging markets countries, as well as more developed countries, have been susceptible to •treat clients and customers fairly and with the appropriate standard of care•use client and customer data responsibly and in a manner that meets legal requirements and regulatory expectations•provide fiduciary products or services in accordance with the applicable legal and regulatory standards, or •handle or use confidential information of customers or clients appropriately and in compliance with applicable data protection and privacy laws, rules and regulations. A failure or perceived failure to appropriately address conflicts of interest or fiduciary obligations could result in customer dissatisfaction, litigation and regulatory fines, penalties or other sanctions, and heightened regulatory scrutiny and enforcement actions, all of which can lead to lost revenue and higher operating costs and cause serious harm to JPMorganChase's reputation.CountryAn outbreak or escalation of hostilities between countries or within a country or region could have a material adverse effect on the global economy and on JPMorganChase's businesses within the affected region or globally. Aggressive actions by hostile governments or groups, including armed conflict or intensified cyber attacks, could expand in unpredictable ways by drawing in other countries or escalating into full-scale war with potentially catastrophic consequences, particularly if one or more of the combatants possess nuclear weapons. Depending on the scope of the conflict, the hostilities could result in:•worldwide economic disruption•heightened volatility in financial markets•severe declines in asset values, accompanied by widespread sell-offs of investments•sudden increases in prices in the energy and commodity markets or for certain safe haven currencies•substantial depreciation of local currencies, potentially leading to defaults by borrowers and counterparties in the affected region•disruption of global trade•diminished consumer, business and investor confidence•refugee and humanitarian crises, and•new economic sanctions or other regulatory requirements, including those that introduce exceptional compliance challenges for multinational companies such as JPMorganChase. •treat clients and customers fairly and with the appropriate standard of care •use client and customer data responsibly and in a manner that meets legal requirements and regulatory expectations •provide fiduciary products or services in accordance with the applicable legal and regulatory standards, or •handle or use confidential information of customers or clients appropriately and in compliance with applicable data protection and privacy laws, rules and regulations. A failure or perceived failure to appropriately address conflicts of interest or fiduciary obligations could result in customer dissatisfaction, litigation and regulatory fines, penalties or other sanctions, and heightened regulatory scrutiny and enforcement actions, all of which can lead to lost revenue and higher operating costs and cause serious harm to JPMorganChase's reputation. Country **Current (2026):** Maintaining the trust, affinity and goodwill of clients, customers, employees and investors is critical to JPMorganChase's ability to operate its business successfully. JPMorganChase's reputation could be harmed by its decisions to engage or not engage with a client or in a business activity that lead to negative commercial impacts, and could also be compromised by: •inaccurate or misleading information about JPMorganChase or its clients, including results generated by AI, that is rapidly and broadly disseminated through any form of media, including social networking sites, and •concerns that JPMorganChase has treated certain clients or customers unfairly Events or circumstances that damage JPMorganChase's reputation could also negatively affect its business, results of operations and prospects, and could result in: •greater scrutiny from governmental authorities or criticism from politicians, including in the form of investigations by governmental authorities or litigation •unfavorable media coverage or commentary, including through social media campaigns 29 29 29 29 Part I Part I •certain clients and customers ceasing to do business with JPMorganChase, and encouraging others to do so•impairment of JPMorganChase's ability to attract new clients and customers, to expand its relationships with existing clients and customers, or to hire or retain employees, or•certain investors opting to divest from investments in securities of JPMorganChase.Failure to effectively manage potential conflicts of interest or to satisfy fiduciary obligations could result in litigation and enforcement actions and cause reputational harm.Managing potential conflicts of interest is highly complex for JPMorganChase due to its broad range of business activities which encompass a variety of transactions, obligations and interests with and among clients and customers. JPMorganChase could face litigation, enforcement actions and heightened regulatory scrutiny, and its reputation could be damaged, by the failure or perceived failure to:•adequately address or appropriately disclose actual or potential conflicts of interest, including those that may arise in connection with providing multiple products and services in, or having investments related to, the same transaction•identify and address any conflict of interest that a third-party with which it is does business may have with respect to a transaction involving JPMorganChase•deliver appropriate standards of service and quality, and to treat clients and customers fairly and with the appropriate standard of care•provide fiduciary products or services in accordance with applicable law, or•handle or use confidential information of customers or clients appropriately and in compliance with applicable law.A failure or perceived failure to appropriately address conflicts of interest or fiduciary obligations could result in customer dissatisfaction, litigation and penalties, as well as heightened regulatory scrutiny and enforcement actions, all of which could lead to lost revenue, higher operating costs and reputational harm.CountryAn outbreak or escalation of hostilities between countries or within a country or region could have a material adverse effect on the global economy and on JPMorganChase's businesses within the affected region or globally. Conflicts and hostilities between countries or other antagonists could expand in unpredictable ways, including:•intensified cyber attacks•drawing in other adversaries•armed conflict, or •escalation into full-scale war, which could have catastrophic consequences. Depending on the scope of the conflict, the hostilities could result in:•worldwide economic disruption•heightened volatility in financial markets•severe declines in asset values, accompanied by widespread sell-offs of investments•sudden increases in prices in the energy and commodity markets or for certain safe haven currencies•substantial depreciation of local currencies, potentially leading to defaults by borrowers and counterparties in the affected region•sustained disruption to or destruction of infrastructure, including energy and power facilities and undersea cables•disruption of global trade, including retaliatory countermeasures•changes in economic alliances or treaties, including the potential fragmentation of trade and economic activity that may result from the formation or hardening of national or regional alliances•diminished consumer, business and investor confidence•refugee and humanitarian crises, and•economic sanctions or other regulatory requirements.Any of the above consequences could have significant negative effects on JPMorganChase's operations and earnings, both in the countries or regions directly affected by the hostilities or globally. Further, if the U.S. were to become directly involved in such a conflict, this could lead to a curtailment of any operations that JPMorganChase may have in the affected countries or region, as well as in any nation that is aligned against the U.S. in the hostilities. JPMorganChase could also experience more numerous and aggressive cyber attacks launched by or under the sponsorship of one or more of the adversaries in such a conflict.JPMorganChase's business and operations in certain countries could be adversely affected by local economic, political, regulatory and social factors.Some of the countries where JPMorganChase conducts business have economies or markets that are less developed and more volatile or have political, legal and regulatory regimes that are unpredictable or less established. In addition, in some places where JPMorganChase conducts business, the local economy and business activities are subject to substantial government influence or control. Some of these •certain clients and customers ceasing to do business with JPMorganChase, and encouraging others to do so•impairment of JPMorganChase's ability to attract new clients and customers, to expand its relationships with existing clients and customers, or to hire or retain employees, or•certain investors opting to divest from investments in securities of JPMorganChase.Failure to effectively manage potential conflicts of interest or to satisfy fiduciary obligations could result in litigation and enforcement actions and cause reputational harm.Managing potential conflicts of interest is highly complex for JPMorganChase due to its broad range of business activities which encompass a variety of transactions, obligations and interests with and among clients and customers. JPMorganChase could face litigation, enforcement actions and heightened regulatory scrutiny, and its reputation could be damaged, by the failure or perceived failure to:•adequately address or appropriately disclose actual or potential conflicts of interest, including those that may arise in connection with providing multiple products and services in, or having investments related to, the same transaction•identify and address any conflict of interest that a third-party with which it is does business may have with respect to a transaction involving JPMorganChase•deliver appropriate standards of service and quality, and to treat clients and customers fairly and with the appropriate standard of care•provide fiduciary products or services in accordance with applicable law, or•handle or use confidential information of customers or clients appropriately and in compliance with applicable law.A failure or perceived failure to appropriately address conflicts of interest or fiduciary obligations could result in customer dissatisfaction, litigation and penalties, as well as heightened regulatory scrutiny and enforcement actions, all of which could lead to lost revenue, higher operating costs and reputational harm.CountryAn outbreak or escalation of hostilities between countries or within a country or region could have a material adverse effect on the global economy and on JPMorganChase's businesses within the affected region or globally. Conflicts and hostilities between countries or other antagonists could expand in unpredictable ways, including:•intensified cyber attacks •certain clients and customers ceasing to do business with JPMorganChase, and encouraging others to do so •impairment of JPMorganChase's ability to attract new clients and customers, to expand its relationships with existing clients and customers, or to hire or retain employees, or •certain investors opting to divest from investments in securities of JPMorganChase. --- ## Modified Risk: Financial Instruments - Credit Losses: Troubled Debt Restructurings ("TDRs") **Key changes:** - Updated: "172JPMorgan Chase & Co./2025 Form 10-K 172JPMorgan Chase & Co./2025 Form 10-K 172JPMorgan Chase & Co./2025 Form 10-K 172 JPMorgan Chase & Co./2025 Form 10-K Significant accounting policiesThe following table identifies JPMorganChase's other significant accounting policies and the Note and page where a detailed description of each policy can be found.Fair value measurementNote 2page 174Fair value optionNote 3page 196Derivative instrumentsNote 5page 202Noninterest revenue and noninterest expenseNote 6page 218Interest income and interest expenseNote 7page 222Pension and other postretirement employee benefit plansNote 8page 223Employee share-based incentivesNote 9page 226Investment securitiesNote 10page 228Securities financing activitiesNote 11page 233LoansNote 12page 236Allowance for credit lossesNote 13page 258Variable interest entitiesNote 14page 263Goodwill, mortgage servicing rights, and other intangible assetsNote 15page 272Premises and equipmentNote 16page 277LeasesNote 18page 278Accounts payable and other liabilitiesNote 19page 280Long-term debtNote 20page 281Earnings per shareNote 23page 286Income taxesNote 25page 288Off-balance sheet lending-related financial instruments, guarantees, and other commitmentsNote 28page 295LitigationNote 30page 302 Significant accounting policiesThe following table identifies JPMorganChase's other significant accounting policies and the Note and page where a detailed description of each policy can be found.Fair value measurementNote 2page 174Fair value optionNote 3page 196Derivative instrumentsNote 5page 202Noninterest revenue and noninterest expenseNote 6page 218Interest income and interest expenseNote 7page 222Pension and other postretirement employee benefit plansNote 8page 223Employee share-based incentivesNote 9page 226Investment securitiesNote 10page 228Securities financing activitiesNote 11page 233LoansNote 12page 236Allowance for credit lossesNote 13page 258Variable interest entitiesNote 14page 263Goodwill, mortgage servicing rights, and other intangible assetsNote 15page 272Premises and equipmentNote 16page 277LeasesNote 18page 278Accounts payable and other liabilitiesNote 19page 280Long-term debtNote 20page 281Earnings per shareNote 23page 286Income taxesNote 25page 288Off-balance sheet lending-related financial instruments, guarantees, and other commitmentsNote 28page 295LitigationNote 30page 302" **Prior (2025):** The adoption of this guidance eliminated the requirement to measure the allowance for TDRs using a discounted cash flow ("DCF") methodology and allowed the option of a non-DCF portfolio-based approach for modified loans to troubled borrowers. The Firm elected this option for all portfolios of modified loans to troubled borrowers except collateral-dependent loans and nonaccrual risk-rated loans, for which the Firm elected to continue applying a DCF methodology. The adoption of this guidance under the modified retrospective method on January 1, 2023, resulted in a $446 million increase to retained earnings. Significant accounting policiesThe following table identifies JPMorganChase's other significant accounting policies and the Note and page where a detailed description of each policy can be found.Fair value measurementNote 2page 181Fair value optionNote 3page 203Derivative instrumentsNote 5page 209Noninterest revenue and noninterest expenseNote 6page 225Interest income and Interest expenseNote 7page 229Pension and other postretirement employee benefit plansNote 8page 230Employee share-based incentivesNote 9page 233Investment securitiesNote 10page 235Securities financing activitiesNote 11page 240LoansNote 12page 243Allowance for credit lossesNote 13page 266Variable interest entitiesNote 14page 271Goodwill, mortgage servicing rights, and other intangible assetsNote 15page 280Premises and equipmentNote 16page 285LeasesNote 18page 286Accounts payable & other liabilitiesNote 19page 288Long-term debtNote 20page 289Earnings per shareNote 23page 294Income taxesNote 25page 296Off-balance sheet lending-related financial instruments, guarantees and other commitmentsNote 28page 302LitigationNote 30page 309 **Current (2026):** The adoption of this guidance eliminated the requirement to measure the allowance for TDRs using a discounted cash flow ("DCF") methodology and allowed the option of a non-DCF portfolio-based approach for modified loans to troubled borrowers. The Firm elected this option for all portfolios of modified loans to troubled borrowers except collateral-dependent loans and nonaccrual risk-rated loans, for which the Firm elected to continue applying a DCF methodology. The adoption of this guidance under the modified retrospective method on January 1, 2023, resulted in a $446 million increase to retained earnings. 172JPMorgan Chase & Co./2025 Form 10-K 172JPMorgan Chase & Co./2025 Form 10-K 172JPMorgan Chase & Co./2025 Form 10-K 172 JPMorgan Chase & Co./2025 Form 10-K Significant accounting policiesThe following table identifies JPMorganChase's other significant accounting policies and the Note and page where a detailed description of each policy can be found.Fair value measurementNote 2page 174Fair value optionNote 3page 196Derivative instrumentsNote 5page 202Noninterest revenue and noninterest expenseNote 6page 218Interest income and interest expenseNote 7page 222Pension and other postretirement employee benefit plansNote 8page 223Employee share-based incentivesNote 9page 226Investment securitiesNote 10page 228Securities financing activitiesNote 11page 233LoansNote 12page 236Allowance for credit lossesNote 13page 258Variable interest entitiesNote 14page 263Goodwill, mortgage servicing rights, and other intangible assetsNote 15page 272Premises and equipmentNote 16page 277LeasesNote 18page 278Accounts payable and other liabilitiesNote 19page 280Long-term debtNote 20page 281Earnings per shareNote 23page 286Income taxesNote 25page 288Off-balance sheet lending-related financial instruments, guarantees, and other commitmentsNote 28page 295LitigationNote 30page 302 Significant accounting policiesThe following table identifies JPMorganChase's other significant accounting policies and the Note and page where a detailed description of each policy can be found.Fair value measurementNote 2page 174Fair value optionNote 3page 196Derivative instrumentsNote 5page 202Noninterest revenue and noninterest expenseNote 6page 218Interest income and interest expenseNote 7page 222Pension and other postretirement employee benefit plansNote 8page 223Employee share-based incentivesNote 9page 226Investment securitiesNote 10page 228Securities financing activitiesNote 11page 233LoansNote 12page 236Allowance for credit lossesNote 13page 258Variable interest entitiesNote 14page 263Goodwill, mortgage servicing rights, and other intangible assetsNote 15page 272Premises and equipmentNote 16page 277LeasesNote 18page 278Accounts payable and other liabilitiesNote 19page 280Long-term debtNote 20page 281Earnings per shareNote 23page 286Income taxesNote 25page 288Off-balance sheet lending-related financial instruments, guarantees, and other commitmentsNote 28page 295LitigationNote 30page 302 --- ## Modified Risk: JPMorganChase's liquidity and cost of funding could be adversely affected by downgrades in its credit ratings. **Key changes:** - Updated: "and certain of its principal subsidiaries are rated by credit rating agencies, which evaluate general, firm-specific and industry-specific factors when determining credit ratings, including: •expected future profitability •risk management practices •legal expenses •regulatory developments •ratings differentials between bank holding companies and their bank and non-bank subsidiaries •assumptions about government support, and •economic and geopolitical developments." **Prior (2025):** JPMorgan Chase & Co. and certain of its principal subsidiaries are rated by credit rating agencies. Rating agencies evaluate general, firm-specific and industry-specific factors when determining credit ratings for a particular financial institution, including: •expected future profitability •risk management practices•legal expenses•ratings differentials between bank holding companies and their bank and non-bank subsidiaries•regulatory developments •assumptions about government support, and •economic and geopolitical developments. JPMorganChase closely monitors and manages, to the extent that it is able, factors that could influence its credit ratings. However, there is no assurance that JPMorganChase's credit ratings will not be downgraded in the future. Furthermore, any such downgrade could occur at times of broader market instability when JPMorganChase's options for responding to events may be more limited and general investor confidence is low.A reduction in JPMorganChase's credit ratings could curtail JPMorganChase's business activities and reduce its profitability in a number of ways, including:•reducing its access to capital markets •materially increasing its cost of issuing and servicing securities •triggering additional collateral or funding requirements, and •decreasing the number of investors and counterparties that are willing or permitted to do business with or lend to JPMorganChase.Any rating reduction could also increase the credit spreads charged by the market for taking credit risk on JPMorgan Chase & Co. and its subsidiaries. This could, in turn, adversely affect the value of debt and other obligations of JPMorgan Chase & Co. and its subsidiaries.CapitalMaintaining the required level and composition of capital may impact JPMorganChase's ability to support business activities, meet evolving regulatory requirements and distribute capital to shareholders.JPMorganChase is subject to various regulatory capital requirements, including leverage- and risk-based capital requirements. In addition, as a Global Systemically Important Bank ("GSIB"), JPMorganChase is required to hold additional capital buffers, including a GSIB surcharge, a Stress Capital Buffer ("SCB"), and a countercyclical buffer, each of which is reassessed at least annually. The amount of capital that JPMorganChase is required to hold in order to satisfy these leverage- and risk-based requirements could increase at any given time due to factors such as:•actions by banking regulators, including changes in laws, rules and regulations •risk management practices •legal expenses •ratings differentials between bank holding companies and their bank and non-bank subsidiaries •regulatory developments •assumptions about government support, and •economic and geopolitical developments. JPMorganChase closely monitors and manages, to the extent that it is able, factors that could influence its credit ratings. However, there is no assurance that JPMorganChase's credit ratings will not be downgraded in the future. Furthermore, any such downgrade could occur at times of broader market instability when JPMorganChase's options for responding to events may be more limited and general investor confidence is low. A reduction in JPMorganChase's credit ratings could curtail JPMorganChase's business activities and reduce its profitability in a number of ways, including: •reducing its access to capital markets •materially increasing its cost of issuing and servicing securities •triggering additional collateral or funding requirements, and •decreasing the number of investors and counterparties that are willing or permitted to do business with or lend to JPMorganChase. Any rating reduction could also increase the credit spreads charged by the market for taking credit risk on JPMorgan Chase & Co. and its subsidiaries. This could, in turn, adversely affect the value of debt and other obligations of JPMorgan Chase & Co. and its subsidiaries. Capital **Current (2026):** JPMorgan Chase & Co. and certain of its principal subsidiaries are rated by credit rating agencies, which evaluate general, firm-specific and industry-specific factors when determining credit ratings, including: •expected future profitability •risk management practices •legal expenses •regulatory developments •ratings differentials between bank holding companies and their bank and non-bank subsidiaries •assumptions about government support, and •economic and geopolitical developments. JPMorganChase has experienced credit ratings downgrades in the past, and there is no assurance that JPMorganChase's credit ratings will not be downgraded in the future. Furthermore, any such downgrade could occur at a time of broader market instability, limiting JPMorganChase's options for responding. A downgrade in JPMorganChase's credit ratings could curtail its business activities and its profitability, including by: •reducing its access to capital markets •materially increasing its cost of issuing and servicing securities •triggering additional collateral or funding requirements, and •decreasing the number of investors and counterparties that are willing or permitted to do business with or lend to JPMorganChase. Any rating downgrade could also increase the credit spreads charged by market participants for taking credit risk on JPMorgan Chase & Co. and its subsidiaries. This could, in turn, adversely affect the value of debt and other obligations of JPMorgan Chase & Co. and its subsidiaries. Capital --- ## Modified Risk: Total trading assets(e) **Key changes:** - Updated: "GSEs and government agencies(a) Other(a) Other assets(e) Federal funds purchased and securities loaned or sold under repurchase agreements Debt and equity instruments(d) (a)At December 31, 2025 and 2024, included total U.S." - Updated: "When fair value hedging has been applied (or when net realizable value is below cost), the carrying value of physical commodities approximates fair value, because under fair value hedge accounting, the cost basis is adjusted for changes in fair 180JPMorgan Chase & Co./2025 Form 10-K 180JPMorgan Chase & Co./2025 Form 10-K 180JPMorgan Chase & Co./2025 Form 10-K 180 JPMorgan Chase & Co./2025 Form 10-K value." - Updated: "(d)Balances reflect the reduction of securities owned (long positions) by the amount of identical securities sold but not yet purchased (short positions)." **Prior (2025):** U.S. GSEs and government agencies(a) Other(a) Loans(e) Other assets(d) Federal funds purchased and securities loaned or sold under repurchase agreements Debt and equity instruments(c) (a)At December 31, 2024 and 2023, included total U.S. GSE obligations of $120.1 billion and $78.5 billion, respectively, which were mortgage-related. (b)Physical commodities inventories are generally accounted for at the lower of cost or net realizable value. "Net realizable value" is a term defined in U.S. GAAP as not exceeding fair value less costs to sell ("transaction costs"). Transaction costs for the Firm's physical commodities inventories are either not applicable or immaterial to the value of the inventory. Therefore, net realizable value approximates fair value for the Firm's physical commodities inventories. When fair value hedging has been applied (or when net realizable value is below cost), the carrying value of physical commodities approximates fair value, because under fair value hedge accounting, the cost basis is adjusted for changes in fair value. Refer to Note 5 for a further discussion of the Firm's hedge accounting relationships. To provide consistent fair value disclosure information, all physical commodities inventories have been included in each period presented. JPMorgan Chase & Co./2024 Form 10-K187 JPMorgan Chase & Co./2024 Form 10-K187 JPMorgan Chase & Co./2024 Form 10-K187 JPMorgan Chase & Co./2024 Form 10-K 187 **Current (2026):** U.S. GSEs and government agencies(a) Other(a) Other assets(e) Federal funds purchased and securities loaned or sold under repurchase agreements Debt and equity instruments(d) (a)At December 31, 2025 and 2024, included total U.S. GSE obligations of $158.4 billion and $120.1 billion, respectively, which were mortgage-related. (b)In the fourth quarter of 2025, the Firm refined the active market assessment of certain products and updated the leveling classification accordingly. (c)Physical commodities inventories are generally accounted for at the lower of cost or net realizable value. "Net realizable value" is a term defined in U.S. GAAP as not exceeding fair value less costs to sell ("transaction costs"). Transaction costs for the Firm's physical commodities inventories are either not applicable or immaterial to the value of the inventory. Therefore, net realizable value approximates fair value for the Firm's physical commodities inventories. When fair value hedging has been applied (or when net realizable value is below cost), the carrying value of physical commodities approximates fair value, because under fair value hedge accounting, the cost basis is adjusted for changes in fair 180JPMorgan Chase & Co./2025 Form 10-K 180JPMorgan Chase & Co./2025 Form 10-K 180JPMorgan Chase & Co./2025 Form 10-K 180 JPMorgan Chase & Co./2025 Form 10-K value. Refer to Note 5 for a further discussion of the Firm's hedge accounting relationships. To provide consistent fair value disclosure information, all physical commodities inventories have been included in each period presented. (d)Balances reflect the reduction of securities owned (long positions) by the amount of identical securities sold but not yet purchased (short positions). (e)Certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient are not required to be classified in the fair value hierarchy. At both December 31, 2025 and 2024, the fair values of these investments, which include certain hedge funds, private equity funds, real estate and other funds, were $1.0 billion, primarily reported in other assets. (f)As permitted under U.S. GAAP, the Firm has elected to net derivative receivables and derivative payables and the related cash collateral received and paid when a legally enforceable master netting agreement exists. The level 3 balances would be reduced if netting were applied, including the netting benefit associated with cash collateral. 181JPMorgan Chase & Co./2025 Form 10-K 181JPMorgan Chase & Co./2025 Form 10-K 181JPMorgan Chase & Co./2025 Form 10-K 181 JPMorgan Chase & Co./2025 Form 10-K --- ## Modified Risk: Management's discussion and analysis **Key changes:** - Updated: "Refer to the industry discussion on pages 120-123 for further information.The Firm's wholesale credit portfolio includes exposure held in CIB, AWM and Corporate, and risk-rated exposure held in CCB, for which the wholesale methodology is applied when determining the allowance for loan losses.As of December 31, 2025, loans increased by $121.1 billion, predominantly driven by higher loans in CIB, primarily in Markets, and higher securities-based lending in AWM, both associated with higher client demand." - Updated: "Refer to the industry discussion on pages 120-123 for further information.The Firm's wholesale credit portfolio includes exposure held in CIB, AWM and Corporate, and risk-rated exposure held in CCB, for which the wholesale methodology is applied when determining the allowance for loan losses.As of December 31, 2025, loans increased by $121.1 billion, predominantly driven by higher loans in CIB, primarily in Markets, and higher securities-based lending in AWM, both associated with higher client demand." - Updated: "Refer to the industry discussion on pages 120-123 for further information." - Updated: "As of December 31, 2025, loans increased by $121.1 billion, predominantly driven by higher loans in CIB, primarily in Markets, and higher securities-based lending in AWM, both associated with higher client demand." **Prior (2025):** WHOLESALE CREDIT PORTFOLIO WHOLESALE CREDIT PORTFOLIO In its wholesale businesses, the Firm is exposed to credit risk primarily through its underwriting, lending, market-making, and hedging activities with and for clients and counterparties, as well as through various operating services (such as cash management and clearing activities), securities financing activities and cash placed with banks. A portion of the loans originated or acquired by the Firm's wholesale businesses is generally retained on the balance sheet. The Firm distributes a significant percentage of the loans that it originates into the market as part of its syndicated loan business and to manage portfolio concentrations and credit risk. The wholesale portfolio is actively managed, in part by conducting ongoing, in-depth reviews of client credit quality and transaction structure, inclusive of collateral where applicable, and of industry, product and client concentrations. Refer to the industry discussion on pages 128-131 for further information.The Firm's wholesale credit portfolio includes exposure held in CIB, AWM and Corporate, and risk-rated exposure held in CCB, for which the wholesale methodology is applied when determining the allowance for loan losses.As of December 31, 2024, loans increased $19.8 billion, driven by higher loans in CIB and higher securities-based lending in AWM. Lending-related commitments decreased $5.3 billion, with decreases in AWM and CCB, largely offset by higher commitments in CIB.As of December 31, 2024, nonperforming exposure increased by $2.3 billion, predominantly driven by Real Estate, concentrated in Office, Healthcare and Consumer & Retail, in each case resulting from downgrades.For the year ended December 31, 2024, wholesale net charge-offs were $822 million, largely driven by Real Estate, concentrated in Office, and client-specific charge-offs across multiple industries including Consumer & Retail and Individuals.Wholesale credit portfolioDecember 31,(in millions)Credit exposureNonperforming2024202320242023Loans retained$690,396 $672,472 $3,942 $2,346 Loans held-for-sale6,103 3,498 5 89 Loans at fair value 25,819 26,520 964 279 Loans 722,318 702,490 4,911 2,714 Derivative receivables60,967 54,864 145 364 Receivables from customers(a)51,929 47,625 - - Total wholesale credit-related assets835,214 804,979 5,056 3,078 Assets acquired in loan satisfactionsReal estate owned NANA206 154 OtherNANA - - Total assets acquired in loan satisfactionsNANA206 154 Lending-related commitments 531,467 536,786 737 464 Total wholesale credit portfolio$1,366,681 $1,341,765 $5,999 $3,696 Credit derivatives and credit-related notes used in credit portfolio management activities(b)$(40,888)$(36,989)$ - $ - Liquid securities and other cash collateral held against derivatives(28,160)(22,461)NANA(a)Receivables from customers reflect held-for-investment margin loans to brokerage clients in CIB, CCB and AWM; these are reported within accrued interest and accounts receivable on the Consolidated balance sheets.(b)Represents the net notional amount of protection purchased and sold through credit derivatives and credit-related notes used to manage both performing and nonperforming wholesale credit exposures; these derivatives do not qualify for hedge accounting under U.S. GAAP. Refer to Credit derivatives on page 136 and Note 5 for additional information. In its wholesale businesses, the Firm is exposed to credit risk primarily through its underwriting, lending, market-making, and hedging activities with and for clients and counterparties, as well as through various operating services (such as cash management and clearing activities), securities financing activities and cash placed with banks. A portion of the loans originated or acquired by the Firm's wholesale businesses is generally retained on the balance sheet. The Firm distributes a significant percentage of the loans that it originates into the market as part of its syndicated loan business and to manage portfolio concentrations and credit risk. The wholesale portfolio is actively managed, in part by conducting ongoing, in-depth reviews of client credit quality and transaction structure, inclusive of collateral where applicable, and of industry, product and client concentrations. Refer to the industry discussion on pages 128-131 for further information.The Firm's wholesale credit portfolio includes exposure held in CIB, AWM and Corporate, and risk-rated exposure held in CCB, for which the wholesale methodology is applied when determining the allowance for loan losses.As of December 31, 2024, loans increased $19.8 billion, driven by higher loans in CIB and higher securities-based lending in AWM. Lending-related commitments decreased $5.3 billion, with decreases in AWM and CCB, largely offset by higher commitments in CIB.As of December 31, 2024, nonperforming exposure increased by $2.3 billion, predominantly driven by Real Estate, concentrated in Office, Healthcare and Consumer & Retail, in each case resulting from downgrades.For the year ended December 31, 2024, wholesale net charge-offs were $822 million, largely driven by Real Estate, concentrated in Office, and client-specific charge-offs across multiple industries including Consumer & Retail and Individuals. In its wholesale businesses, the Firm is exposed to credit risk primarily through its underwriting, lending, market-making, and hedging activities with and for clients and counterparties, as well as through various operating services (such as cash management and clearing activities), securities financing activities and cash placed with banks. A portion of the loans originated or acquired by the Firm's wholesale businesses is generally retained on the balance sheet. The Firm distributes a significant percentage of the loans that it originates into the market as part of its syndicated loan business and to manage portfolio concentrations and credit risk. The wholesale portfolio is actively managed, in part by conducting ongoing, in-depth reviews of client credit quality and transaction structure, inclusive of collateral where applicable, and of industry, product and client concentrations. Refer to the industry discussion on pages 128-131 for further information. The Firm's wholesale credit portfolio includes exposure held in CIB, AWM and Corporate, and risk-rated exposure held in CCB, for which the wholesale methodology is applied when determining the allowance for loan losses. As of December 31, 2024, loans increased $19.8 billion, driven by higher loans in CIB and higher securities-based lending in AWM. Lending-related commitments decreased $5.3 billion, with decreases in AWM and CCB, largely offset by higher commitments in CIB. As of December 31, 2024, nonperforming exposure increased by $2.3 billion, predominantly driven by Real Estate, concentrated in Office, Healthcare and Consumer & Retail, in each case resulting from downgrades. For the year ended December 31, 2024, wholesale net charge-offs were $822 million, largely driven by Real Estate, concentrated in Office, and client-specific charge-offs across multiple industries including Consumer & Retail and Individuals. Wholesale credit portfolioDecember 31,(in millions)Credit exposureNonperforming2024202320242023Loans retained$690,396 $672,472 $3,942 $2,346 Loans held-for-sale6,103 3,498 5 89 Loans at fair value 25,819 26,520 964 279 Loans 722,318 702,490 4,911 2,714 Derivative receivables60,967 54,864 145 364 Receivables from customers(a)51,929 47,625 - - Total wholesale credit-related assets835,214 804,979 5,056 3,078 Assets acquired in loan satisfactionsReal estate owned NANA206 154 OtherNANA - - Total assets acquired in loan satisfactionsNANA206 154 Lending-related commitments 531,467 536,786 737 464 Total wholesale credit portfolio$1,366,681 $1,341,765 $5,999 $3,696 Credit derivatives and credit-related notes used in credit portfolio management activities(b)$(40,888)$(36,989)$ - $ - Liquid securities and other cash collateral held against derivatives(28,160)(22,461)NANA(a)Receivables from customers reflect held-for-investment margin loans to brokerage clients in CIB, CCB and AWM; these are reported within accrued interest and accounts receivable on the Consolidated balance sheets.(b)Represents the net notional amount of protection purchased and sold through credit derivatives and credit-related notes used to manage both performing and nonperforming wholesale credit exposures; these derivatives do not qualify for hedge accounting under U.S. GAAP. Refer to Credit derivatives on page 136 and Note 5 for additional information. Wholesale credit portfolioDecember 31,(in millions)Credit exposureNonperforming2024202320242023Loans retained$690,396 $672,472 $3,942 $2,346 Loans held-for-sale6,103 3,498 5 89 Loans at fair value 25,819 26,520 964 279 Loans 722,318 702,490 4,911 2,714 Derivative receivables60,967 54,864 145 364 Receivables from customers(a)51,929 47,625 - - Total wholesale credit-related assets835,214 804,979 5,056 3,078 Assets acquired in loan satisfactionsReal estate owned NANA206 154 OtherNANA - - Total assets acquired in loan satisfactionsNANA206 154 Lending-related commitments 531,467 536,786 737 464 Total wholesale credit portfolio$1,366,681 $1,341,765 $5,999 $3,696 Credit derivatives and credit-related notes used in credit portfolio management activities(b)$(40,888)$(36,989)$ - $ - Liquid securities and other cash collateral held against derivatives(28,160)(22,461)NANA Receivables from customers(a) **Current (2026):** WHOLESALE CREDIT PORTFOLIO WHOLESALE CREDIT PORTFOLIO In its wholesale businesses, the Firm is exposed to credit risk primarily through its underwriting, lending, market-making, and hedging activities with and for clients and counterparties, as well as through various operating services (such as cash management and clearing activities), securities financing activities and cash placed with banks. A portion of the loans originated or acquired by the Firm's wholesale businesses is generally retained on the balance sheet. The Firm distributes a significant percentage of the loans that it originates into the market as part of its syndicated loan business and to manage portfolio concentrations and credit risk. The wholesale portfolio is actively managed, in part by conducting ongoing, in-depth reviews of client credit quality and transaction structure, inclusive of collateral where applicable, and of industry, product and client concentrations. Refer to the industry discussion on pages 120-123 for further information.The Firm's wholesale credit portfolio includes exposure held in CIB, AWM and Corporate, and risk-rated exposure held in CCB, for which the wholesale methodology is applied when determining the allowance for loan losses.As of December 31, 2025, loans increased by $121.1 billion, predominantly driven by higher loans in CIB, primarily in Markets, and higher securities-based lending in AWM, both associated with higher client demand. Lending-related commitments increased by $64.5 billion, predominantly driven by higher commitments in CIB, including held-for-sale commitments.As of December 31, 2025, nonperforming exposure increased by $478 million, driven by certain exposures in Technology, Media & Telecommunications, Oil & Gas and Utilities, in each case primarily resulting from downgrades, largely offset by certain exposures in Healthcare and Consumer & Retail, primarily due to charge-off activity, upgrades, and loan sales.Wholesale credit portfolioDecember 31,(in millions)Credit exposureNonperforming2025202420252024Loans retained$792,367 $690,396 $4,398 $3,942 Loans held-for-sale13,506 6,103 8 5 Loans at fair value 37,501 25,819 778 964 Loans 843,374 722,318 5,184 4,911 Derivative receivables57,777 60,967 204 145 Receivables from customers(a)47,336 51,929 - - Total wholesale credit-related assets948,487 835,214 5,388 5,056 Assets acquired in loan satisfactionsReal estate owned NANA164 206 Total assets acquired in loan satisfactionsNANA164 206 Lending-related commitments 595,954 531,467 925 737 Total wholesale credit portfolio$1,544,441 $1,366,681 $6,477 $5,999 Credit derivatives and credit-related notes used in credit portfolio management activities(b)$(23,898)$(40,888)$ - $ - Liquid securities and other cash collateral held against derivatives(28,891)(28,160)NANA(a)Receivables from customers reflect held-for-investment margin loans to brokerage clients in CIB, CCB and AWM; these are reported within accrued interest and accounts receivable on the Consolidated balance sheets.(b)Represents the net notional amount of protection purchased and sold through credit derivatives and credit-related notes used to manage both performing and nonperforming wholesale credit exposures; these derivatives do not qualify for hedge accounting under U.S. GAAP. Refer to Credit derivatives on page 128 and Note 5 for additional information. In its wholesale businesses, the Firm is exposed to credit risk primarily through its underwriting, lending, market-making, and hedging activities with and for clients and counterparties, as well as through various operating services (such as cash management and clearing activities), securities financing activities and cash placed with banks. A portion of the loans originated or acquired by the Firm's wholesale businesses is generally retained on the balance sheet. The Firm distributes a significant percentage of the loans that it originates into the market as part of its syndicated loan business and to manage portfolio concentrations and credit risk. The wholesale portfolio is actively managed, in part by conducting ongoing, in-depth reviews of client credit quality and transaction structure, inclusive of collateral where applicable, and of industry, product and client concentrations. Refer to the industry discussion on pages 120-123 for further information.The Firm's wholesale credit portfolio includes exposure held in CIB, AWM and Corporate, and risk-rated exposure held in CCB, for which the wholesale methodology is applied when determining the allowance for loan losses.As of December 31, 2025, loans increased by $121.1 billion, predominantly driven by higher loans in CIB, primarily in Markets, and higher securities-based lending in AWM, both associated with higher client demand. Lending-related commitments increased by $64.5 billion, predominantly driven by higher commitments in CIB, including held-for-sale commitments.As of December 31, 2025, nonperforming exposure increased by $478 million, driven by certain exposures in Technology, Media & Telecommunications, Oil & Gas and Utilities, in each case primarily resulting from downgrades, largely offset by certain exposures in Healthcare and Consumer & Retail, primarily due to charge-off activity, upgrades, and loan sales. In its wholesale businesses, the Firm is exposed to credit risk primarily through its underwriting, lending, market-making, and hedging activities with and for clients and counterparties, as well as through various operating services (such as cash management and clearing activities), securities financing activities and cash placed with banks. A portion of the loans originated or acquired by the Firm's wholesale businesses is generally retained on the balance sheet. The Firm distributes a significant percentage of the loans that it originates into the market as part of its syndicated loan business and to manage portfolio concentrations and credit risk. The wholesale portfolio is actively managed, in part by conducting ongoing, in-depth reviews of client credit quality and transaction structure, inclusive of collateral where applicable, and of industry, product and client concentrations. Refer to the industry discussion on pages 120-123 for further information. The Firm's wholesale credit portfolio includes exposure held in CIB, AWM and Corporate, and risk-rated exposure held in CCB, for which the wholesale methodology is applied when determining the allowance for loan losses. As of December 31, 2025, loans increased by $121.1 billion, predominantly driven by higher loans in CIB, primarily in Markets, and higher securities-based lending in AWM, both associated with higher client demand. Lending-related commitments increased by $64.5 billion, predominantly driven by higher commitments in CIB, including held-for-sale commitments. As of December 31, 2025, nonperforming exposure increased by $478 million, driven by certain exposures in Technology, Media & Telecommunications, Oil & Gas and Utilities, in each case primarily resulting from downgrades, largely offset by certain exposures in Healthcare and Consumer & Retail, primarily due to charge-off activity, upgrades, and loan sales. Wholesale credit portfolioDecember 31,(in millions)Credit exposureNonperforming2025202420252024Loans retained$792,367 $690,396 $4,398 $3,942 Loans held-for-sale13,506 6,103 8 5 Loans at fair value 37,501 25,819 778 964 Loans 843,374 722,318 5,184 4,911 Derivative receivables57,777 60,967 204 145 Receivables from customers(a)47,336 51,929 - - Total wholesale credit-related assets948,487 835,214 5,388 5,056 Assets acquired in loan satisfactionsReal estate owned NANA164 206 Total assets acquired in loan satisfactionsNANA164 206 Lending-related commitments 595,954 531,467 925 737 Total wholesale credit portfolio$1,544,441 $1,366,681 $6,477 $5,999 Credit derivatives and credit-related notes used in credit portfolio management activities(b)$(23,898)$(40,888)$ - $ - Liquid securities and other cash collateral held against derivatives(28,891)(28,160)NANA(a)Receivables from customers reflect held-for-investment margin loans to brokerage clients in CIB, CCB and AWM; these are reported within accrued interest and accounts receivable on the Consolidated balance sheets.(b)Represents the net notional amount of protection purchased and sold through credit derivatives and credit-related notes used to manage both performing and nonperforming wholesale credit exposures; these derivatives do not qualify for hedge accounting under U.S. GAAP. Refer to Credit derivatives on page 128 and Note 5 for additional information. Wholesale credit portfolioDecember 31,(in millions)Credit exposureNonperforming2025202420252024Loans retained$792,367 $690,396 $4,398 $3,942 Loans held-for-sale13,506 6,103 8 5 Loans at fair value 37,501 25,819 778 964 Loans 843,374 722,318 5,184 4,911 Derivative receivables57,777 60,967 204 145 Receivables from customers(a)47,336 51,929 - - Total wholesale credit-related assets948,487 835,214 5,388 5,056 Assets acquired in loan satisfactionsReal estate owned NANA164 206 Total assets acquired in loan satisfactionsNANA164 206 Lending-related commitments 595,954 531,467 925 737 Total wholesale credit portfolio$1,544,441 $1,366,681 $6,477 $5,999 Credit derivatives and credit-related notes used in credit portfolio management activities(b)$(23,898)$(40,888)$ - $ - Liquid securities and other cash collateral held against derivatives(28,891)(28,160)NANA Receivables from customers(a) --- ## Modified Risk: Risk reporting **Key changes:** - Updated: "The following table presents the Firm's top 20 exposures by country (excluding the U.S.) as of December 31, 2025, and their comparative exposures as of December 31, 2024." - Updated: "The increase in exposure to the United Kingdom when compared to December 31, 2024 was predominantly driven by higher holdings of government debt securities due to increased investment and market-making securities activities, as well as an increase in wholesale lending exposures." - Updated: "Refer to Note 30 on page 303 for information concerning Russian litigation." - Updated: "Market-making positions and hedging includes exposure from single reference entity ("single-name"), index and other multiple reference entity transactions for which one or more of the underlying reference entities is in a country listed in the above table.(e)Includes physical commodities inventory and clearing house guarantee funds.(f)The country rankings presented in the table as of December 31, 2024, are based on the country rankings of the corresponding exposures at December 31, 2025, not actual rankings of such exposures at December 31, 2024." **Prior (2025):** Country exposure and stress are measured and reported regularly, and used by Country Risk Management to identify trends and monitor high usages and breaches against limits. For country risk management purposes, the Firm may report exposure to jurisdictions that are not fully autonomous, including dependent territories and Special Administrative Regions ("SAR") such as Hong Kong SAR, separately from the independent sovereign states with which they are associated. The following table presents the Firm's top 20 exposures by country (excluding the U.S.) as of December 31, 2024, and their comparative exposures as of December 31, 2023. The top 20 country exposures represent the Firm's largest total exposures by individual country. Country exposures may fluctuate from period to period due to a variety of factors, including client activity, market flows and liquidity management activities undertaken by the Firm. The increase in exposure to Germany when compared to December 31, 2023, was driven by an increase in cash placed with the central bank of Germany, predominantly due to client-driven market-making activities and higher client deposits. The increase in exposure to Japan when compared to December 31, 2023, was driven by an increase in cash placed with the central bank of Japan as a result of client-driven market-making activities. The Firm continues to monitor its exposure to Russia, which corresponds to cash placed with the central bank, but which excludes deposits placed on behalf of clients at the Deposit Insurance Agency of Russia. The Firm currently believes that its remaining exposure to Russia is not material. Refer to Note 30 on pages 310-311 for information concerning Russian litigation. Top 20 country exposures (excluding the U.S.)(a)December 31, (in billions)20242023(f)Deposits with banks(b)Lending(c)Trading and investing(d)Other(e)Total exposureTotal exposureGermany$89.7 $12.6 $0.9 $0.7 $103.9 $84.8 United Kingdom24.6 22.4 27.7 1.4 76.1 77.1 Japan55.1 3.1 4.5 0.4 63.1 36.0 France0.6 12.3 4.2 0.9 18.0 10.1 Canada1.6 10.6 2.7 0.2 15.1 16.0 Brazil3.5 4.2 7.0 - 14.7 16.7 Australia5.0 7.4 1.9 - 14.3 18.3 Switzerland4.7 4.2 1.4 3.3 13.6 10.9 Mainland China3.1 6.2 4.1 - 13.4 14.0 India1.1 5.2 4.1 0.9 11.3 9.7 Italy0.1 8.2 1.8 0.3 10.4 6.0 South Korea0.6 2.9 6.3 0.5 10.3 7.8 Saudi Arabia0.8 5.7 2.9 - 9.4 7.7 Singapore1.5 2.0 3.5 0.4 7.4 9.8 Mexico1.3 4.4 1.5 - 7.2 8.2 Spain0.2 4.6 1.2 0.1 6.1 6.3 Netherlands - 6.6 (0.9)0.2 5.9 5.6 Belgium4.0 1.3 0.1 - 5.4 8.0 Malaysia2.1 0.2 1.0 0.3 3.6 4.2 Luxembourg0.9 1.7 1.0 - 3.6 4.0 (a)Country exposures presented in the table reflect 89% and 88% of total Firmwide non-U.S. exposure, where exposure is attributed to an individual country based on the Firm's internal country risk management approach, at December 31, 2024 and 2023, respectively.(b)Predominantly represents cash placed with central banks.(c)Includes loans and accrued interest receivable, lending-related commitments (net of eligible collateral and the allowance for credit losses). Excludes intra-day and operating exposures, such as those from settlement and clearing activities.(d)Includes market-making positions and hedging, investment securities, and counterparty exposure on derivative and securities financings net of eligible collateral. Market-making positions and hedging includes exposure from single reference entity ("single-name"), index and other multiple reference entity transactions for which one or more of the underlying reference entities is in a country listed in the above table.(e)Includes physical commodities inventory and clearing house guarantee funds.(f)The country rankings presented in the table as of December 31, 2023, are based on the country rankings of the corresponding exposures at December 31, 2024, not actual rankings of such exposures at December 31, 2023. Top 20 country exposures (excluding the U.S.)(a)December 31, (in billions)20242023(f)Deposits with banks(b)Lending(c)Trading and investing(d)Other(e)Total exposureTotal exposureGermany$89.7 $12.6 $0.9 $0.7 $103.9 $84.8 United Kingdom24.6 22.4 27.7 1.4 76.1 77.1 Japan55.1 3.1 4.5 0.4 63.1 36.0 France0.6 12.3 4.2 0.9 18.0 10.1 Canada1.6 10.6 2.7 0.2 15.1 16.0 Brazil3.5 4.2 7.0 - 14.7 16.7 Australia5.0 7.4 1.9 - 14.3 18.3 Switzerland4.7 4.2 1.4 3.3 13.6 10.9 Mainland China3.1 6.2 4.1 - 13.4 14.0 India1.1 5.2 4.1 0.9 11.3 9.7 Italy0.1 8.2 1.8 0.3 10.4 6.0 South Korea0.6 2.9 6.3 0.5 10.3 7.8 Saudi Arabia0.8 5.7 2.9 - 9.4 7.7 Singapore1.5 2.0 3.5 0.4 7.4 9.8 Mexico1.3 4.4 1.5 - 7.2 8.2 Spain0.2 4.6 1.2 0.1 6.1 6.3 Netherlands - 6.6 (0.9)0.2 5.9 5.6 Belgium4.0 1.3 0.1 - 5.4 8.0 Malaysia2.1 0.2 1.0 0.3 3.6 4.2 Luxembourg0.9 1.7 1.0 - 3.6 4.0 **Current (2026):** Country exposure and stress are measured and reported regularly, and used by Country Risk Management to identify trends and monitor high usages and breaches against limits. For country risk management purposes, the Firm may report exposure to jurisdictions that are not fully autonomous, including dependent territories and Special Administrative Regions ("SAR") such as Hong Kong SAR, separately from the independent sovereign states with which they are associated. The following table presents the Firm's top 20 exposures by country (excluding the U.S.) as of December 31, 2025, and their comparative exposures as of December 31, 2024. The top 20 country exposures represent the Firm's largest total exposures by individual country. Country exposures may fluctuate from period to period due to a variety of factors, including client activity, market flows and liquidity management activities undertaken by the Firm. The increase in exposure to the United Kingdom when compared to December 31, 2024 was predominantly driven by higher holdings of government debt securities due to increased investment and market-making securities activities, as well as an increase in wholesale lending exposures. The Firm continues to monitor its exposure to Russia, which corresponds to cash placed with the central bank, but which excludes deposits placed on behalf of clients at the Deposit Insurance Agency of Russia. The Firm currently believes that its remaining exposure to Russia is not material. Refer to Note 30 on page 303 for information concerning Russian litigation. Top 20 country exposures (excluding the U.S.)(a)December 31, (in billions)20252024(f)Deposits with banks(b)Lending(c)Trading and investing(d)Other(e)Total exposureTotal exposureGermany$83.9 $15.7 $ - $0.7 $100.3 $103.9 United Kingdom26.1 27.0 36.9 3.2 93.2 76.1 Japan64.4 4.2 8.4 0.3 77.3 63.1 France0.7 14.6 8.3 1.3 24.9 18.0 Brazil10.0 5.0 5.9 - 20.9 14.7 Australia5.6 9.1 2.8 0.1 17.6 14.3 Canada2.0 11.9 2.1 0.2 16.2 15.1 Switzerland4.5 5.2 2.3 3.0 15.0 13.6 Mexico1.7 8.9 3.0 - 13.6 7.2 South Korea1.1 3.3 8.5 0.5 13.4 10.3 Mainland China2.7 6.6 3.9 - 13.2 13.4 India1.2 6.7 4.7 0.4 13.0 11.3 Saudi Arabia0.9 8.9 2.6 - 12.4 9.4 Italy0.1 8.5 2.7 0.3 11.6 10.4 Singapore2.0 2.5 4.4 0.4 9.3 7.4 Belgium4.5 1.6 0.5 - 6.6 5.4 Netherlands0.2 6.1 0.1 0.1 6.5 5.9 United Arab Emirates0.1 4.7 0.9 - 5.7 2.6 Chile3.0 1.6 0.5 - 5.1 1.7 Spain0.1 4.4 0.1 - 4.6 6.1 (a)Country exposures presented in the table reflect 87% and 88% of total Firmwide non-U.S. exposure, where exposure is attributed to an individual country based on the Firm's internal country risk management approach, at December 31, 2025 and 2024, respectively.(b)Predominantly represents cash placed with central banks.(c)Includes loans and accrued interest receivable, lending-related commitments (net of eligible collateral and the allowance for credit losses). Excludes intra-day and operating exposures, such as those from settlement and clearing activities.(d)Includes market-making positions and hedging, investment securities, and counterparty exposure on derivative and securities financings net of eligible collateral. Market-making positions and hedging includes exposure from single reference entity ("single-name"), index and other multiple reference entity transactions for which one or more of the underlying reference entities is in a country listed in the above table.(e)Includes physical commodities inventory and clearing house guarantee funds.(f)The country rankings presented in the table as of December 31, 2024, are based on the country rankings of the corresponding exposures at December 31, 2025, not actual rankings of such exposures at December 31, 2024. Top 20 country exposures (excluding the U.S.)(a)December 31, (in billions)20252024(f)Deposits with banks(b)Lending(c)Trading and investing(d)Other(e)Total exposureTotal exposureGermany$83.9 $15.7 $ - $0.7 $100.3 $103.9 United Kingdom26.1 27.0 36.9 3.2 93.2 76.1 Japan64.4 4.2 8.4 0.3 77.3 63.1 France0.7 14.6 8.3 1.3 24.9 18.0 Brazil10.0 5.0 5.9 - 20.9 14.7 Australia5.6 9.1 2.8 0.1 17.6 14.3 Canada2.0 11.9 2.1 0.2 16.2 15.1 Switzerland4.5 5.2 2.3 3.0 15.0 13.6 Mexico1.7 8.9 3.0 - 13.6 7.2 South Korea1.1 3.3 8.5 0.5 13.4 10.3 Mainland China2.7 6.6 3.9 - 13.2 13.4 India1.2 6.7 4.7 0.4 13.0 11.3 Saudi Arabia0.9 8.9 2.6 - 12.4 9.4 Italy0.1 8.5 2.7 0.3 11.6 10.4 Singapore2.0 2.5 4.4 0.4 9.3 7.4 Belgium4.5 1.6 0.5 - 6.6 5.4 Netherlands0.2 6.1 0.1 0.1 6.5 5.9 United Arab Emirates0.1 4.7 0.9 - 5.7 2.6 Chile3.0 1.6 0.5 - 5.1 1.7 Spain0.1 4.4 0.1 - 4.6 6.1 --- ## Modified Risk: Nonperforming assets **Key changes:** - Updated: "The following table presents information as of December 31, 2025 and 2024, about consumer, excluding credit card, nonperforming assets." **Prior (2025):** The following table presents information as of December 31, 2024 and 2023, about consumer, excluding credit card, nonperforming assets. Nonperforming assets(a)December 31, (in millions)20242023Nonaccrual loansResidential real estate$3,665 $4,015 Auto and other261 188 Total nonaccrual loans3,926 4,203 Assets acquired in loan satisfactionsReal estate owned78 120 Other34 42 Total assets acquired in loan satisfactions112 162 Total nonperforming assets$4,038 $4,365 **Current (2026):** The following table presents information as of December 31, 2025 and 2024, about consumer, excluding credit card, nonperforming assets. Nonperforming assets(a)December 31, (in millions)20252024Nonaccrual loansResidential real estate$4,381 $3,665 Auto and other292 261 Total nonaccrual loans4,673 3,926 Assets acquired in loan satisfactionsReal estate owned103 78 Other31 34 Total assets acquired in loan satisfactions134 112 Total nonperforming assets$4,807 $4,038 --- ## Modified Risk: Leverage-based capital metrics:(a) **Key changes:** - Updated: "Adjusted average assets(b) Tier 1 leverage ratio (a)As of January 1, 2025, the benefit from the CECL capital transition provision had been fully phased out." **Prior (2025):** Adjusted average assets(b) Tier 1 leverage ratio (a)The capital metrics reflect the CECL capital transition provisions. (b)Adjusted average assets, for purposes of calculating the leverage ratios, includes quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 capital, predominantly goodwill, inclusive of estimated equity method goodwill, and other intangible assets. JPMorgan Chase & Co./2024 Form 10-K301 JPMorgan Chase & Co./2024 Form 10-K301 JPMorgan Chase & Co./2024 Form 10-K301 JPMorgan Chase & Co./2024 Form 10-K 301 **Current (2026):** Adjusted average assets(b) Tier 1 leverage ratio (a)As of January 1, 2025, the benefit from the CECL capital transition provision had been fully phased out. The capital metrics for the year ended December 31, 2024 reflected the CECL capital transition provisions. (b)Adjusted average assets, for purposes of calculating the leverage ratios, includes quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 capital, predominantly goodwill (inclusive of estimated equity method goodwill) and other intangible assets. 294JPMorgan Chase & Co./2025 Form 10-K 294JPMorgan Chase & Co./2025 Form 10-K 294JPMorgan Chase & Co./2025 Form 10-K 294 JPMorgan Chase & Co./2025 Form 10-K --- ## Modified Risk: Risk governance and oversight functions **Key changes:** - Updated: "Risk governance and oversight functionsPageStrategic Risk88Capital Risk89-99Liquidity Risk100-107Reputation Risk108Consumer Credit Risk112-117Wholesale Credit Risk118-128Investment Portfolio Risk132Market Risk133-142Country Risk143-144Climate Risk145Operational Risk146-149Compliance Risk150Conduct Risk151Legal Risk152Estimations and Model Risk153 JPMorgan Chase & Co./2025 Form 10-K87 JPMorgan Chase & Co./2025 Form 10-K87 JPMorgan Chase & Co./2025 Form 10-K87 JPMorgan Chase & Co./2025 Form 10-K 87" **Prior (2025):** The Firm monitors and measures its risk through risk governance and oversight functions. The scope of a particular function or business activity may include one or more drivers, types and/or impacts of risk. For example, Country Risk Management oversees country risk which may be a driver of risk or an aggregation of exposures that could give rise to multiple risk types such as credit or market risk. The following sections discuss the risk governance and oversight functions that have been established to oversee the risks inherent in the Firm's business activities. Risk governance and oversight functionsPageStrategic Risk96Capital Risk97-107Liquidity Risk108-115Reputation Risk116Consumer Credit Risk120-125Wholesale Credit Risk126-136Investment Portfolio Risk140Market Risk141-149Country Risk150-151Climate Risk152Operational Risk153-156Compliance Risk157Conduct Risk158Legal Risk159Estimations and Model Risk160 JPMorgan Chase & Co./2024 Form 10-K95 JPMorgan Chase & Co./2024 Form 10-K95 JPMorgan Chase & Co./2024 Form 10-K95 JPMorgan Chase & Co./2024 Form 10-K 95 **Current (2026):** The Firm monitors and measures its risk through risk governance and oversight functions. The scope of a particular function or business activity may include one or more drivers, types and/or impacts of risk. For example, Country Risk Management oversees country risk which may be a driver of risk or an aggregation of exposures that could give rise to multiple risk types such as credit or market risk. The following sections discuss the risk governance and oversight functions that have been established to oversee the risks inherent in the Firm's business activities. Risk governance and oversight functionsPageStrategic Risk88Capital Risk89-99Liquidity Risk100-107Reputation Risk108Consumer Credit Risk112-117Wholesale Credit Risk118-128Investment Portfolio Risk132Market Risk133-142Country Risk143-144Climate Risk145Operational Risk146-149Compliance Risk150Conduct Risk151Legal Risk152Estimations and Model Risk153 JPMorgan Chase & Co./2025 Form 10-K87 JPMorgan Chase & Co./2025 Form 10-K87 JPMorgan Chase & Co./2025 Form 10-K87 JPMorgan Chase & Co./2025 Form 10-K 87 --- ## Modified Risk: Total revenue by instrument type **Key changes:** - Updated: "(a)Includes the impact of changes in funding valuation adjustments on derivatives." - Removed: "(c)Includes net markdowns on held-for-sale positions, primarily unfunded commitments, in the bridge financing portfolio." **Prior (2025):** Interest rate(a) Credit(b) (a)Includes the impact of changes in funding valuation adjustments on derivatives. (b)Includes the impact of changes in credit valuation adjustments on derivatives, net of the associated hedging activities. (c)Includes net markdowns on held-for-sale positions, primarily unfunded commitments, in the bridge financing portfolio. Principal transactions revenue is earned primarily by CIB. **Current (2026):** (a)Includes the impact of changes in funding valuation adjustments on derivatives. (b)Includes the impact of changes in credit valuation adjustments on derivatives, net of the associated hedging activities. Principal transactions revenue is earned primarily by CIB. --- ## Modified Risk: Loan delinquencies and liquidation losses **Key changes:** - Updated: "The table below includes information about components of and delinquencies related to nonconsolidated securitized financial assets held in Firm-sponsored private-label securitization entities, in which the Firm has continuing involvement as of December 31, 2025 and 2024." - Updated: "As of or for the year ended December 31,(in millions)Securitized assets90 days past dueNet liquidation losses / (recoveries)202520242025202420252024Securitized loansResidential mortgage:Prime/ Alt-A & option ARMs$58,525 $50,846 $654 $501 $9 $10 Subprime2,766 1,847 92 113 - 2 Commercial and other138,986 125,510 4,487 1,715 292 77 Total loans securitized$200,277 $178,203 $5,233 $2,329 $301 $89 JPMorgan Chase & Co./2025 Form 10-K271 JPMorgan Chase & Co./2025 Form 10-K271 JPMorgan Chase & Co./2025 Form 10-K271 JPMorgan Chase & Co./2025 Form 10-K 271" **Prior (2025):** The table below includes information about components of and delinquencies related to nonconsolidated securitized financial assets held in Firm-sponsored private-label securitization entities, in which the Firm has continuing involvement as of December 31, 2024 and 2023. For loans sold or securitized where servicing is the Firm's only form of continuing involvement, the Firm generally experiences a loss only if the Firm was required to repurchase a delinquent loan or foreclosed asset due to a breach in representations and warranties associated with its loan sale or servicing contracts. As of or for the year ended December 31,(in millions)Securitized assets90 days past dueNet liquidation losses / (recoveries)202420232024202320242023Securitized loansResidential mortgage:Prime/ Alt-A & option ARMs$50,846 $39,319 $501 $440 $10 $14 Subprime1,847 1,312 113 131 2 5 Commercial and other125,510 120,262 1,715 2,874 77 60 Total loans securitized$178,203 $160,893 $2,329 $3,445 $89 $79 JPMorgan Chase & Co./2024 Form 10-K279 JPMorgan Chase & Co./2024 Form 10-K279 JPMorgan Chase & Co./2024 Form 10-K279 JPMorgan Chase & Co./2024 Form 10-K 279 **Current (2026):** The table below includes information about components of and delinquencies related to nonconsolidated securitized financial assets held in Firm-sponsored private-label securitization entities, in which the Firm has continuing involvement as of December 31, 2025 and 2024. For loans sold or securitized where servicing is the Firm's only form of continuing involvement, the Firm generally experiences a loss only if the Firm was required to repurchase a delinquent loan or foreclosed asset due to a breach in representations and warranties associated with its loan sale or servicing contracts. As of or for the year ended December 31,(in millions)Securitized assets90 days past dueNet liquidation losses / (recoveries)202520242025202420252024Securitized loansResidential mortgage:Prime/ Alt-A & option ARMs$58,525 $50,846 $654 $501 $9 $10 Subprime2,766 1,847 92 113 - 2 Commercial and other138,986 125,510 4,487 1,715 292 77 Total loans securitized$200,277 $178,203 $5,233 $2,329 $301 $89 JPMorgan Chase & Co./2025 Form 10-K271 JPMorgan Chase & Co./2025 Form 10-K271 JPMorgan Chase & Co./2025 Form 10-K271 JPMorgan Chase & Co./2025 Form 10-K 271 --- ## Modified Risk: Note 20 - Long-term debt **Key changes:** - Updated: "The following table is a summary of long-term debt carrying values (including unamortized premiums and discounts, issuance costs, valuation adjustments and fair value adjustments, where applicable) by remaining contractual maturity as of December 31, 2025." **Prior (2025):** JPMorganChase issues long-term debt denominated in various currencies, predominantly U.S. dollars, with both fixed and variable interest rates. Included in senior and subordinated debt below are various equity-linked or other indexed instruments, which the Firm has elected to measure at fair value. Changes in fair value are recorded in principal transactions revenue in the Consolidated statements of income, except for unrealized gains/(losses) due to DVA which are recorded in OCI. The following table is a summary of long-term debt carrying values (including unamortized premiums and discounts, issuance costs, valuation adjustments and fair value adjustments, where applicable) by remaining contractual maturity as of December 31, 2024. By remaining maturity atDecember 31,(in millions, except rates)20242023Under 1 year1-5 yearsAfter 5 yearsTotalTotalParent companySenior debt:Fixed rate$7,112 $90,132 $117,667 $214,911 $200,984 Variable rate255 6,838 1,562 8,655 8,105 Interest rates(f)3.04 %3.40 %4.02 %3.71 %3.32 %Subordinated debt:Fixed rate$302 $5,582 $8,573 $14,457 $17,725 Variable rate - - - - - Interest rates(f)7.75 %4.72 %4.69 %4.76 %4.62 %Subtotal$7,669 $102,552 $127,802 $238,023 $226,814 SubsidiariesFederal Home Loan Banks advances:Fixed rate$7,582 $1,651 $24 $9,257 $23,246 Variable rate4,000 16,000 - 20,000 18,000 Interest rates(f)4.42 %4.84 %5.91 %4.67 %4.89 %Purchase Money Note(a):Fixed rate$ - $49,208 $ - $49,208 $48,989 Interest rates(f) - %3.40 % - %3.40 %3.40 %Senior debt:Fixed rate$2,361 $16,695 $7,489 $26,545 $20,745 Variable rate19,350 30,981 6,451 56,782 52,048 Interest rates(f)5.39 %5.18%1.44 %3.81 %3.91 %Subordinated debt:Fixed rate$ - $ - $ - $ - $255 Variable rate - - - - - Interest rates(f) - % - % - % - %8.25 %Subtotal$33,293 $114,535 $13,964 $161,792 $163,283 Junior subordinated debt:Fixed rate$ - $ - $488 $488 $518 Variable rate - 421 694 1,115 1,210 Interest rates(f) - %5.35 %7.01 %6.58 %7.14 %Subtotal$ - $421 $1,182 $1,603 $1,728 Total long-term debt(b)(c)(d)$40,962 $217,508 $142,948 $401,418 (g)(h)$391,825 Long-term beneficial interests:Fixed rate$999 $4,313 $ - $5,312 $2,998 Variable rate - 27 139 166 125 Interest rates(f)3.97 %4.82 %2.92 %4.62 %4.69 %Total long-term beneficial interests(e)$999 $4,340 $139 $5,478 $3,123 Interest rates(f) Interest rates(f) Interest rates(f) Purchase Money Note(a): Interest rates(f) Interest rates(f) Interest rates(f) Interest rates(f) Total long-term debt(b)(c)(d) (g)(h) Interest rates(f) **Current (2026):** JPMorganChase issues long-term debt denominated in various currencies, predominantly U.S. dollars, with both fixed and variable interest rates. Included in senior and subordinated debt below are various equity-linked or other indexed instruments, which the Firm has elected to measure at fair value. Changes in fair value are recorded in principal transactions revenue in the Consolidated statements of income, except for unrealized gains/(losses) due to DVA which are recorded in OCI. The following table is a summary of long-term debt carrying values (including unamortized premiums and discounts, issuance costs, valuation adjustments and fair value adjustments, where applicable) by remaining contractual maturity as of December 31, 2025. By remaining maturity atDecember 31,(in millions, except rates)20252024Under 1 year1-5 yearsAfter 5 yearsTotalTotalParent companySenior debt:Fixed rate$11,761 $91,867 $122,443 $226,071 $214,911 Variable rate48 6,795 1,618 8,461 8,655 Interest rates(f)2.84 %3.74 %4.14 %3.90 %3.71 %Subordinated debt:Fixed rate$2,489 $3,099 $12,919 $18,507 $14,457 Variable rate - - - - - Interest rates(f)4.83 %4.63 %4.96 %4.89 %4.76 %Subtotal$14,298 $101,761 $136,980 $253,039 $238,023 SubsidiariesFederal Home Loan Banks advances:Fixed rate$1,236 $405 $18 $1,659 $9,257 Variable rate - 16,500 - 16,500 20,000 Interest rates(f)3.33 %4.05 %5.65 %4.01 %4.67 %Purchase Money Note:(a)Fixed rate$ - $49,435 $ - $49,435 $49,208 Interest rates(f) - %3.40 % - %3.40 %3.40 %Senior debt:Fixed rate$5,896 $19,908 $11,973 $37,777 $26,545 Variable rate21,159 43,393 10,650 75,202 56,782 Interest rates(f)5.02 %3.88%1.35 %3.66 %3.81 %Subtotal$28,291 $129,641 $22,641 $180,573 $161,792 Junior subordinated debt:Fixed rate$ - $495 $ - $495 $488 Variable rate - 421 678 1,099 1,115 Interest rates(f) - %6.87 %5.06 %6.10 %6.58 %Subtotal$ - $916 $678 $1,594 $1,603 Total long-term debt(b)(c)(d)$42,589 $232,318 $160,299 $435,206 (g)(h)$401,418 Long-term beneficial interests:Fixed rate$1,156 $4,728 $ - $5,884 $5,312 Variable rate - 13 120 133 166 Interest rates(f)5.16 %4.54 %3.14 %4.63 %4.62 %Total long-term beneficial interests(e)$1,156 $4,741 $120 $6,017 $5,478 Interest rates(f) Interest rates(f) Interest rates(f) Purchase Money Note:(a) Interest rates(f) Interest rates(f) Interest rates(f) Total long-term debt(b)(c)(d) (g)(h) Interest rates(f) --- ## Modified Risk: Notes to consolidated financial statements **Key changes:** - Updated: "The following table describes the valuation methodologies generally used by the Firm to measure its significant products/instruments at fair value, including the general classification of such instruments pursuant to the fair value hierarchy." **Prior (2025):** A three-level fair value hierarchy has been established under U.S. GAAP for disclosure of fair value measurements. The fair value hierarchy is based on the observability of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows. •Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. •Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. •Level 3 - one or more inputs to the valuation methodology are unobservable and significant to the fair value measurement. A financial instrument's categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. 182JPMorgan Chase & Co./2024 Form 10-K 182JPMorgan Chase & Co./2024 Form 10-K 182JPMorgan Chase & Co./2024 Form 10-K 182 JPMorgan Chase & Co./2024 Form 10-K The following table describes the valuation methodologies generally used by the Firm to measure its significant products/instruments at fair value, including the general classification of such instruments pursuant to the fair value hierarchy. Product/instrumentValuation methodologyClassifications in the fair value hierarchySecurities financing agreementsValuations are based on discounted cash flows, which consider:Predominantly level 2• Derivative features: refer to the discussion of derivatives below for further information• Market rates for the respective maturity• Collateral characteristicsLoans and lending-related commitments - wholesaleLoans carried at fair value(trading loans and non-trading loans) and associatedlending-related commitmentsWhere observable market data is available, valuations are based on:Level 2 or 3• Observed market prices (circumstances are infrequent)• Relevant broker quotes• Observed market prices for similar instrumentsWhere observable market data is unavailable or limited, valuations are based on discounted cash flows, which consider the following:• Credit spreads derived from the cost of CDS; or benchmark credit curves developed by the Firm, by industry and credit rating• Prepayment speed• Collateral characteristicsLoans - consumerFair value is based on observable market prices for mortgage-backed securities with similar collateral and incorporates adjustments to these prices to account for differences between the securities and the value of the underlying loans, which include credit characteristics, portfolio composition, and liquidity.Predominantly level 2Loans carried at fair value - residential mortgage loans expected to be soldInvestment and trading securitiesQuoted market pricesLevel 1In the absence of quoted market prices, securities are valued based on:Level 2 or 3• Observable market prices for similar securities• Relevant broker quotes• Discounted cash flowsIn addition, the following inputs to discounted cash flows are used for the following products:Mortgage- and asset-backed securities specific inputs:• Collateral characteristics• Deal-specific payment and loss allocations• Current market assumptions related to yield, prepayment speed, conditional default rates and loss severityCollateralized loan obligations ("CLOs") specific inputs:• Collateral characteristics• Deal-specific payment and loss allocations• Expected prepayment speed, conditional default rates, loss severity• Credit spreads• Credit rating dataPhysical commoditiesValued using observable market prices or data.Predominantly Level 1 or 2 Predominantly level 2 • Market rates for the respective maturity • Collateral characteristics Loans and lending-related commitments - wholesale Loans carried at fair value (trading loans and non-trading loans) and associated lending-related commitments Where observable market data is available, valuations are based on: • Observed market prices (circumstances are infrequent) • Relevant broker quotes • Observed market prices for similar instruments • Credit spreads derived from the cost of CDS; or benchmark credit curves developed by the Firm, by industry and credit rating • Prepayment speed • Collateral characteristics Predominantly level 2 Loans carried at fair value - residential mortgage loans expected to be sold • Relevant broker quotes • Discounted cash flows • Collateral characteristics • Current market assumptions related to yield, prepayment speed, conditional default rates and loss severity • Collateral characteristics • Deal-specific payment and loss allocations • Expected prepayment speed, conditional default rates, loss severity • Credit spreads Predominantly Level 1 or 2 JPMorgan Chase & Co./2024 Form 10-K183 JPMorgan Chase & Co./2024 Form 10-K183 JPMorgan Chase & Co./2024 Form 10-K183 JPMorgan Chase & Co./2024 Form 10-K 183 **Current (2026):** The following table describes the valuation methodologies generally used by the Firm to measure its significant products/instruments at fair value, including the general classification of such instruments pursuant to the fair value hierarchy. Product/instrumentValuation methodologyClassifications in the fair value hierarchySecurities financing agreementsValuations are based on discounted cash flows, which consider:Predominantly level 2• Derivative features: refer to the discussion of derivatives below for further information• Market rates for the respective maturity• Collateral characteristicsLoans and lending-related commitments - wholesaleLoans carried at fair value(trading loans and non-trading loans) and associatedlending-related commitmentsWhere observable market data is available, valuations are based on:Level 2 or 3• Observed market prices (circumstances are infrequent)• Relevant broker quotes• Observed market prices for similar instrumentsWhere observable market data is unavailable or limited, valuations are based on discounted cash flows, which consider the following:• Credit spreads derived from the cost of CDS; or benchmark credit curves developed by the Firm, by industry and credit rating• Prepayment speed• Collateral characteristicsLoans - consumerFair value is based on observable market prices for mortgage-backed securities with similar collateral and incorporates adjustments to these prices to account for differences between the securities and the value of the underlying loans, which include credit characteristics, portfolio composition, and liquidity.Predominantly level 2Loans carried at fair value - residential mortgage loans expected to be soldInvestment and trading securitiesQuoted market pricesLevel 1In the absence of quoted market prices, securities are valued based on:Level 2 or 3• Observable market prices for similar securities• Relevant broker quotes• Discounted cash flowsIn addition, the following inputs to discounted cash flows are used for the following products:Mortgage- and asset-backed securities specific inputs:• Collateral characteristics• Deal-specific payment and loss allocations• Current market assumptions related to yield, prepayment speed, conditional default rates and loss severityCollateralized loan obligations ("CLOs") specific inputs:• Collateral characteristics• Deal-specific payment and loss allocations• Expected prepayment speed, conditional default rates, loss severity• Credit spreads• Credit rating dataPhysical commoditiesValued using observable market prices or data.Predominantly Level 1 or 2 Predominantly level 2 • Market rates for the respective maturity • Collateral characteristics Loans and lending-related commitments - wholesale Loans carried at fair value (trading loans and non-trading loans) and associated lending-related commitments Where observable market data is available, valuations are based on: • Observed market prices (circumstances are infrequent) • Relevant broker quotes • Observed market prices for similar instruments • Credit spreads derived from the cost of CDS; or benchmark credit curves developed by the Firm, by industry and credit rating • Prepayment speed • Collateral characteristics Predominantly level 2 Loans carried at fair value - residential mortgage loans expected to be sold • Relevant broker quotes • Discounted cash flows • Collateral characteristics • Current market assumptions related to yield, prepayment speed, conditional default rates and loss severity • Collateral characteristics • Deal-specific payment and loss allocations • Expected prepayment speed, conditional default rates, loss severity • Credit spreads Predominantly Level 1 or 2 176JPMorgan Chase & Co./2025 Form 10-K 176JPMorgan Chase & Co./2025 Form 10-K 176JPMorgan Chase & Co./2025 Form 10-K 176 JPMorgan Chase & Co./2025 Form 10-K Product/instrumentValuation methodologyClassifications in the fair value hierarchyDerivativesActively traded derivatives, e.g., exchange-traded derivatives, that are valued using quoted prices.Level 1Derivatives that are valued using models such as the Black-Scholes option pricing model, simulation models, or a combination of models that may use observable or unobservable valuation inputs as well as considering the contractual terms.The key valuation inputs used will depend on the type of derivative and the nature of the underlying instruments and may include equity prices, commodity prices, foreign exchange rates, volatilities, correlations, CDS spreads, recovery rates and prepayment speed.Level 2 or 3In addition, specific inputs used for derivatives that are valued based on models with significant unobservable inputs are as follows:Interest rate (IR) and FX exotic derivatives specific inputs include:• Interest rate curve• Interest rate volatility• Interest rate spread volatility• Bermudan switch value• Interest rate correlation• Interest rate-FX correlation• Foreign exchange correlationCredit derivatives specific inputs include:• Credit correlation between the underlying debt instrumentsEquity derivatives specific inputs include:• Forward equity price• Equity volatility• Equity correlation• Equity-FX correlation• Equity-IR correlationCommodity derivatives specific inputs include:• Forward commodity price• Commodity volatility• Commodity correlationAdditionally, adjustments are made to reflect counterparty credit quality (CVA) and the impact of funding (FVA). Refer to page 191 of this Note.Mortgage servicing rightsRefer to Mortgage servicing rights in Note 15.Level 3Private equity direct investmentsFair value is estimated using all available information; the range of potential inputs include:Level 2 or 3• Transaction prices• Trading multiples of comparable public companies• Operating performance of the underlying portfolio company• Adjustments as required, since comparable public companies are not identical to the company being valued, and for company-specific issues including lack of liquidity• Additional available inputs relevant to the investment Derivatives that are valued using models such as the Black-Scholes option pricing model, simulation models, or a combination of models that may use observable or unobservable valuation inputs as well as considering the contractual terms. The key valuation inputs used will depend on the type of derivative and the nature of the underlying instruments and may include equity prices, commodity prices, foreign exchange rates, volatilities, correlations, CDS spreads, recovery rates and prepayment speed. • Interest rate curve • Interest rate volatility • Interest rate spread volatility • Bermudan switch value • Interest rate correlation • Interest rate-FX correlation • Foreign exchange correlation • Credit correlation between the underlying debt instruments • Forward equity price • Equity volatility • Equity correlation • Equity-FX correlation • Equity-IR correlation • Forward commodity price • Commodity volatility • Commodity correlation Additionally, adjustments are made to reflect counterparty credit quality (CVA) and the impact of funding (FVA). Refer to page 191 of this Note. Refer to Mortgage servicing rights in Note 15. • Transaction prices • Adjustments as required, since comparable public companies are not identical to the company being valued, and for company-specific issues including lack of liquidity JPMorgan Chase & Co./2025 Form 10-K177 JPMorgan Chase & Co./2025 Form 10-K177 JPMorgan Chase & Co./2025 Form 10-K177 JPMorgan Chase & Co./2025 Form 10-K 177 --- ## Modified Risk: Total assets acquired in loan satisfactions **Key changes:** - Updated: "(c) Credit derivatives and credit-related notes used in credit portfolio management activities(b) (a)Receivables from customers reflect held-for-investment margin loans to brokerage clients in CIB, CCB and AWM; these are reported within accrued interest and accounts receivable on the Consolidated balance sheets." - Updated: "At December 31, 2025 and 2024, mortgage loans 90 or more days past due and insured by U.S." - Updated: "December 31,(in millions, except ratios)20252024Total nonaccrual loans$9,857 $8,837 Total loans1,493,429 1,347,988 Firmwide nonaccrual loans to total loans outstanding0.66 %0.66 % The following table provides information about the Firm's net charge-offs." **Prior (2025):** Credit derivatives and credit-related notes used in credit portfolio management activities(b) (a) Receivables from customers reflect held-for-investment margin loans to brokerage clients in CIB, CCB and AWM; these are reported within accrued interest and accounts receivable on the Consolidated balance sheets. (b) Represents the net notional amount of protection purchased and sold through credit derivatives and credit-related notes used to manage credit exposures. (c) Excludes mortgage loans past due and insured by U.S. government agencies, which are primarily 90 or more days past due. These loans have been excluded based upon the government guarantee. At December 31, 2024 and 2023, mortgage loans 90 or more days past due and insured by U.S. government agencies were $121 million and $182 million, respectively. In addition, the Firm's policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance. The following table provides information on Firmwide nonaccrual loans to total loans. December 31,(in millions, except ratios)20242023Total nonaccrual loans$8,837 $6,917 Total loans1,347,988 1,323,706 Firmwide nonaccrual loans to total loans outstanding0.66 %0.52 % The following table provides information about the Firm's net charge-offs and recoveries. December 31,(in millions, except ratios)20242023Net charge-offs$8,638 $6,209 Average retained loans1,271,344 1,202,348 Net charge-off rates0.68 %0.52 % JPMorgan Chase & Co./2024 Form 10-K119 JPMorgan Chase & Co./2024 Form 10-K119 JPMorgan Chase & Co./2024 Form 10-K119 JPMorgan Chase & Co./2024 Form 10-K 119 **Current (2026):** (c) Credit derivatives and credit-related notes used in credit portfolio management activities(b) (a)Receivables from customers reflect held-for-investment margin loans to brokerage clients in CIB, CCB and AWM; these are reported within accrued interest and accounts receivable on the Consolidated balance sheets. (b)Represents the net notional amount of protection purchased and sold through credit derivatives and credit-related notes used to manage credit exposures.(c)Includes estimated total credit exposure related to the Apple Card transaction at the time that the transaction is expected to close of approximately $104 billion, including approximately $23 billion of estimated drawn loans.(d)Excludes mortgage loans past due and insured by U.S. government agencies, which are primarily 90 or more days past due. These loans have been excluded based upon the government guarantee. At December 31, 2025 and 2024, mortgage loans 90 or more days past due and insured by U.S. government agencies were $198 million and $121 million, respectively. In addition, the Firm's policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance.The following table provides information on Firmwide nonaccrual loans to total loans.December 31,(in millions, except ratios)20252024Total nonaccrual loans$9,857 $8,837 Total loans1,493,429 1,347,988 Firmwide nonaccrual loans to total loans outstanding0.66 %0.66 %The following table provides information about the Firm's net charge-offs.December 31,(in millions, except ratios)20252024Net charge-offs$9,849 $8,638 Average retained loans1,335,675 1,271,344 Net charge-off rate0.74 %0.68 % (b)Represents the net notional amount of protection purchased and sold through credit derivatives and credit-related notes used to manage credit exposures. (c)Includes estimated total credit exposure related to the Apple Card transaction at the time that the transaction is expected to close of approximately $104 billion, including approximately $23 billion of estimated drawn loans. (d)Excludes mortgage loans past due and insured by U.S. government agencies, which are primarily 90 or more days past due. These loans have been excluded based upon the government guarantee. At December 31, 2025 and 2024, mortgage loans 90 or more days past due and insured by U.S. government agencies were $198 million and $121 million, respectively. In addition, the Firm's policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance. The following table provides information on Firmwide nonaccrual loans to total loans. December 31,(in millions, except ratios)20252024Total nonaccrual loans$9,857 $8,837 Total loans1,493,429 1,347,988 Firmwide nonaccrual loans to total loans outstanding0.66 %0.66 % The following table provides information about the Firm's net charge-offs. December 31,(in millions, except ratios)20252024Net charge-offs$9,849 $8,638 Average retained loans1,335,675 1,271,344 Net charge-off rate0.74 %0.68 % JPMorgan Chase & Co./2025 Form 10-K111 JPMorgan Chase & Co./2025 Form 10-K111 JPMorgan Chase & Co./2025 Form 10-K111 JPMorgan Chase & Co./2025 Form 10-K 111 --- ## Modified Risk: Credit ratings **Key changes:** - Updated: "The cost and availability of financing are influenced by credit ratings." - Updated: "The Firm's credit risk management governance includes the following activities:•Maintaining a credit risk policy framework•Monitoring and measuring credit risk across all portfolio segments, including transaction and exposure approval•Setting industry and geographic concentration limits, as appropriate, and setting guidelines for credit review and analysis•Assigning and maintaining credit approval authorities in connection with the approval of credit exposure•Monitoring and independent assessment of criticized exposures and delinquent loans, and•Estimating credit losses, including periodic review and refinement of underlying assumptions, and supporting appropriate credit risk-based capital managementRisk identification and measurementTo measure credit risk, the Firm employs several methodologies for estimating the likelihood of obligor or counterparty default." - Updated: "Refer to Note 13, Note 10 and Critical Accounting Estimates used by the Firm on pages 154-157 for further information.In addition, potential and unexpected credit losses are reflected in the allocation of credit risk capital and represent the potential volatility of actual losses relative to the established allowances for loan losses and lending-related commitments." - Updated: "The Firm's credit risk management governance includes the following activities:•Maintaining a credit risk policy framework•Monitoring and measuring credit risk across all portfolio segments, including transaction and exposure approval•Setting industry and geographic concentration limits, as appropriate, and setting guidelines for credit review and analysis•Assigning and maintaining credit approval authorities in connection with the approval of credit exposure•Monitoring and independent assessment of criticized exposures and delinquent loans, and•Estimating credit losses, including periodic review and refinement of underlying assumptions, and supporting appropriate credit risk-based capital management Credit and investment risk is the risk associated with the default or change in credit profile of a client, counterparty or customer; or loss of principal or a reduction in expected returns on investments, including consumer credit risk, wholesale credit risk, and investment portfolio risk." **Prior (2025):** The Reputation Risk Governance policy establishes the principles for managing reputation risk for the Firm. It is the responsibility of each LOB and Corporate, and the Firm's employees, to consider the reputation of the Firm when deciding whether to offer a new product, engage in a transaction or client relationship, enter a new jurisdiction, initiate a business process or consider any other activity. Environmental impacts and social concerns are important considerations in assessing the Firm's reputation risk, and are a component of the Firm's reputation risk governance. 116JPMorgan Chase & Co./2024 Form 10-K 116JPMorgan Chase & Co./2024 Form 10-K 116JPMorgan Chase & Co./2024 Form 10-K 116 JPMorgan Chase & Co./2024 Form 10-K CREDIT AND INVESTMENT RISK MANAGEMENT Credit and investment risk is the risk associated with the default or change in credit profile of a client, counterparty or customer; or loss of principal or a reduction in expected returns on investments, including consumer credit risk, wholesale credit risk, and investment portfolio risk.Credit risk managementCredit risk is the risk associated with the default or change in credit profile of a client, counterparty or customer. The Firm provides credit to a variety of clients and customers, ranging from large corporate and institutional clients to individual consumers and small businesses. In its consumer businesses, the Firm is exposed to credit risk primarily through its home lending, credit card, auto, and business banking businesses. In its wholesale businesses, the Firm is exposed to credit risk through its underwriting, lending, market-making, and hedging activities with and for clients and counterparties, as well as through its operating services activities (such as cash management and clearing activities), and securities financing activities. The Firm is also exposed to credit risk through its investment securities portfolio and cash placed with banks.Credit Risk Management monitors and measures credit risk throughout the Firm, and defines credit risk policies, procedures and limits. The Firm's credit risk management governance includes the following activities:•Maintaining a credit risk policy framework•Monitoring and measuring credit risk across all portfolio segments, including transaction and exposure approval•Setting industry and geographic concentration limits, as appropriate, and setting guidelines for credit review and analysis•Assigning and maintaining credit approval authorities in connection with the approval of credit exposure•Monitoring and independent assessment of criticized exposures and delinquent loans, and•Estimating credit losses and supporting appropriate credit risk-based capital managementRisk identification and measurementTo measure credit risk, the Firm employs several methodologies for estimating the likelihood of obligor or counterparty default. Methodologies for measuring credit risk vary depending on several factors, including type of asset (e.g., consumer versus wholesale), risk measurement parameters (e.g., delinquency status and borrower's credit score versus wholesale risk-rating) and risk management and collection processes (e.g., retail collection center versus centrally managed workout groups). Credit risk measurement is based on the probability of default of an obligor or counterparty, the loss severity given a default event and the exposure at default.Based on these factors and the methodology and estimates described in Note 13 and Note 10, the Firm estimates credit losses for its exposures. The allowance for loan losses reflects estimated credit losses related to the consumer and wholesale held-for-investment loan portfolios, the allowance for lending-related commitments reflects estimated credit losses related to the Firm's lending-related commitments and the allowance for investment securities reflects estimated credit losses related to the investment securities portfolio. Refer to Note 13, Note 10 and Critical Accounting Estimates used by the Firm on pages 161-164 for further information.In addition, potential and unexpected credit losses are reflected in the allocation of credit risk capital and represent the potential volatility of actual losses relative to the established allowances for loan losses and lending-related commitments. The analyses for these losses include stress testing that considers alternative economic scenarios as described below.Stress testingStress testing is important in measuring and managing credit risk in the Firm's credit portfolio. The stress testing process assesses the potential impact of alternative economic and business scenarios on estimated credit losses for the Firm. Economic scenarios and the underlying parameters are defined centrally, articulated in terms of macroeconomic factors and applied across the businesses. The stress test results may indicate credit migration, changes in delinquency trends and potential losses in the credit portfolio. In addition to the periodic stress testing processes, management also considers additional stresses outside these scenarios, including industry and country- specific stress scenarios, as appropriate. The Firm uses stress testing to inform decisions on setting risk appetite both at a Firm and LOB level, as well as to assess the impact of stress on individual counterparties. Credit and investment risk is the risk associated with the default or change in credit profile of a client, counterparty or customer; or loss of principal or a reduction in expected returns on investments, including consumer credit risk, wholesale credit risk, and investment portfolio risk.Credit risk managementCredit risk is the risk associated with the default or change in credit profile of a client, counterparty or customer. The Firm provides credit to a variety of clients and customers, ranging from large corporate and institutional clients to individual consumers and small businesses. In its consumer businesses, the Firm is exposed to credit risk primarily through its home lending, credit card, auto, and business banking businesses. In its wholesale businesses, the Firm is exposed to credit risk through its underwriting, lending, market-making, and hedging activities with and for clients and counterparties, as well as through its operating services activities (such as cash management and clearing activities), and securities financing activities. The Firm is also exposed to credit risk through its investment securities portfolio and cash placed with banks.Credit Risk Management monitors and measures credit risk throughout the Firm, and defines credit risk policies, procedures and limits. The Firm's credit risk management governance includes the following activities:•Maintaining a credit risk policy framework•Monitoring and measuring credit risk across all portfolio segments, including transaction and exposure approval•Setting industry and geographic concentration limits, as appropriate, and setting guidelines for credit review and analysis•Assigning and maintaining credit approval authorities in connection with the approval of credit exposure•Monitoring and independent assessment of criticized exposures and delinquent loans, and•Estimating credit losses and supporting appropriate credit risk-based capital management Credit and investment risk is the risk associated with the default or change in credit profile of a client, counterparty or customer; or loss of principal or a reduction in expected returns on investments, including consumer credit risk, wholesale credit risk, and investment portfolio risk. **Current (2026):** The cost and availability of financing are influenced by credit ratings. Reductions in these ratings could have an adverse effect on the Firm's access to liquidity sources, increase the cost of funds, trigger additional collateral or funding requirements and decrease the number of investors and counterparties willing to lend to the Firm. The nature and magnitude of the impact of ratings downgrades depends on numerous contractual and behavioral factors, which the Firm believes are incorporated in its liquidity risk and stress testing metrics. The Firm believes that it maintains sufficient liquidity to withstand a potential decrease in funding capacity due to ratings downgrades.Additionally, the Firm's funding requirements for VIEs and other third-party commitments may be adversely affected by a decline in credit ratings. Refer to Notes 5 and 14 for additional information. The cost and availability of financing are influenced by credit ratings. Reductions in these ratings could have an adverse effect on the Firm's access to liquidity sources, increase the cost of funds, trigger additional collateral or funding requirements and decrease the number of investors and counterparties willing to lend to the Firm. The nature and magnitude of the impact of ratings downgrades depends on numerous contractual and behavioral factors, which the Firm The cost and availability of financing are influenced by credit ratings. Reductions in these ratings could have an adverse effect on the Firm's access to liquidity sources, increase the cost of funds, trigger additional collateral or funding requirements and decrease the number of investors and counterparties willing to lend to the Firm. The nature and magnitude of the impact of ratings downgrades depends on numerous contractual and behavioral factors, which the Firm believes are incorporated in its liquidity risk and stress testing metrics. The Firm believes that it maintains sufficient liquidity to withstand a potential decrease in funding capacity due to ratings downgrades.Additionally, the Firm's funding requirements for VIEs and other third-party commitments may be adversely affected by a decline in credit ratings. Refer to Notes 5 and 14 for additional information. believes are incorporated in its liquidity risk and stress testing metrics. The Firm believes that it maintains sufficient liquidity to withstand a potential decrease in funding capacity due to ratings downgrades. Additionally, the Firm's funding requirements for VIEs and other third-party commitments may be adversely affected by a decline in credit ratings. Refer to Notes 5 and 14 for additional information. The credit ratings of the Parent Company and certain of its principal subsidiaries as of December 31, 2025 were as follows: JPMorgan Chase & Co.JPMorgan Chase Bank, N.A. J.P. Morgan SEJ.P. Morgan Securities LLC J.P. Morgan Securities plcDecember 31, 2025Long-term issuerShort-term issuerOutlookLong-term issuerShort-term issuerOutlookLong-term issuerShort-term issuerOutlookLong-term issuerShort-term issuerOutlookMoody's Investors Service(a)A1P-1StableAa2P-1Stable(b)Aa2P-1StableAa3P-1StableStandard & Poor'sAA-1StableAA-A-1+StableAA-A-1+StableAA-A-1+StableFitch RatingsAA-F1+StableAAF1+StableAAF1+StableAAF1+Stable Moody's Investors Service(a) Stable(b) (a)On November 3, 2025, Moody's revised the outlook for the Parent Company, J.P. Morgan Securities LLC, J.P. Morgan Securities plc and J.P. Morgan SE to stable from positive, and revised J.P. Morgan SE's long-term issuer rating to Aa2 from Aa3. (b)On May 19, 2025, Moody's revised JPMorgan Chase Bank, N.A.'s outlook to stable from developing, and this change was related to Moody's one-notch downgrade of the long-term issuer rating of the U.S. Government announced on May 16, 2025. Moody's also affirmed JPMorgan Chase Bank, N.A.'s long-term issuer rating. JPMorganChase's unsecured debt does not contain requirements that would call for an acceleration of payments, maturities or changes in the structure of the existing debt, provide any limitations on future borrowings or require additional collateral, based on unfavorable changes in the Firm's credit ratings, financial ratios, earnings, or stock price.Critical factors in maintaining high credit ratings include a stable and diverse earnings stream, strong capital and liquidity ratios, strong credit quality and risk management controls, and diverse funding sources. Rating agencies continue to evaluate economic and geopolitical trends, regulatory developments, future profitability, risk management practices, and litigation matters, as well as their broader ratings methodologies. Changes in any of these factors could lead to changes in the Firm's credit ratings. JPMorganChase's unsecured debt does not contain requirements that would call for an acceleration of payments, maturities or changes in the structure of the existing debt, provide any limitations on future borrowings or require additional collateral, based on unfavorable changes in the Firm's credit ratings, financial ratios, earnings, or stock price. JPMorganChase's unsecured debt does not contain requirements that would call for an acceleration of payments, maturities or changes in the structure of the existing debt, provide any limitations on future borrowings or require additional collateral, based on unfavorable changes in the Firm's credit ratings, financial ratios, earnings, or stock price. Critical factors in maintaining high credit ratings include a stable and diverse earnings stream, strong capital and liquidity ratios, strong credit quality and risk management controls, and diverse funding sources. Rating agencies continue to evaluate economic and geopolitical trends, regulatory developments, future profitability, risk management practices, and litigation matters, as well as their broader ratings methodologies. Changes in any of these factors could lead to changes in the Firm's credit ratings. Critical factors in maintaining high credit ratings include a stable and diverse earnings stream, strong capital and liquidity ratios, strong credit quality and risk management controls, and diverse funding sources. Rating agencies continue to evaluate economic and geopolitical trends, regulatory developments, future profitability, risk management practices, and litigation matters, as well as their broader ratings methodologies. Changes in any of these factors could lead to changes in the Firm's credit ratings. JPMorgan Chase & Co./2025 Form 10-K107 JPMorgan Chase & Co./2025 Form 10-K107 JPMorgan Chase & Co./2025 Form 10-K107 JPMorgan Chase & Co./2025 Form 10-K 107 REPUTATION RISK MANAGEMENT Reputation risk is the risk of damage to the trust, affinity or goodwill for the Firm held by clients, employees and investors that can result from the Firm's decisions to engage or not engage with a client or in a business activity and which may lead to negative commercial impacts. The Firm's decisions related to clients and business activities are made based on a range of commercial considerations, including operational capabilities and expertise, servicing costs, risk relative to opportunity, the prioritization of finite resources and, when relevant, reputation risk considerations. The Firm manages reputation risk through established policies, standards and procedures that are integrated across the LOBs and Corporate functions. Potential reputation risk matters may be escalated to governance forums, as appropriate, including LOB Reputation Risk Committees. The Board Risk Committee also regularly receives information on reputation risk matters, as appropriate. Reputation risk is the risk of damage to the trust, affinity or goodwill for the Firm held by clients, employees and investors that can result from the Firm's decisions to engage or not engage with a client or in a business activity and which may lead to negative commercial impacts. The Firm's decisions related to clients and business activities are made based on a range of commercial considerations, including operational capabilities and expertise, servicing costs, risk relative to opportunity, the prioritization of finite resources and, when relevant, reputation risk considerations. The Firm manages reputation risk through established policies, standards and procedures that are integrated across the LOBs and Corporate functions. Potential reputation risk matters may be escalated to governance forums, as appropriate, including LOB Reputation Risk Committees. The Board Risk Committee also regularly receives information on reputation risk matters, as appropriate. Reputation risk is the risk of damage to the trust, affinity or goodwill for the Firm held by clients, employees and investors that can result from the Firm's decisions to engage or not engage with a client or in a business activity and which may lead to negative commercial impacts. The Firm's decisions related to clients and business activities are made based on a range of commercial considerations, including operational capabilities and expertise, servicing costs, risk relative to opportunity, the prioritization of finite resources and, when relevant, reputation risk considerations. The Firm manages reputation risk through established policies, standards and procedures that are integrated across the LOBs and Corporate functions. Potential reputation risk matters may be escalated to governance forums, as appropriate, including LOB Reputation Risk Committees. The Board Risk Committee also regularly receives information on reputation risk matters, as appropriate. 108JPMorgan Chase & Co./2025 Form 10-K 108JPMorgan Chase & Co./2025 Form 10-K 108JPMorgan Chase & Co./2025 Form 10-K 108 JPMorgan Chase & Co./2025 Form 10-K CREDIT AND INVESTMENT RISK MANAGEMENT Credit and investment risk is the risk associated with the default or change in credit profile of a client, counterparty or customer; or loss of principal or a reduction in expected returns on investments, including consumer credit risk, wholesale credit risk, and investment portfolio risk.Credit risk managementCredit risk is the risk associated with the default or change in credit profile of a client, counterparty or customer. The Firm provides credit to a variety of clients and customers, ranging from large corporate and institutional clients to individual consumers and small businesses. In its consumer businesses, the Firm is exposed to credit risk primarily through its home lending, credit card, auto, and business banking businesses. In its wholesale businesses, the Firm is exposed to credit risk through its underwriting, lending, market-making, and hedging activities with and for clients and counterparties, as well as through its operating services activities (such as cash management and clearing activities), and securities financing activities. The Firm is also exposed to credit risk through its investment securities portfolio and cash placed with banks.Credit Risk Management monitors and measures credit risk throughout the Firm, and defines credit risk policies, procedures and limits. The Firm's credit risk management governance includes the following activities:•Maintaining a credit risk policy framework•Monitoring and measuring credit risk across all portfolio segments, including transaction and exposure approval•Setting industry and geographic concentration limits, as appropriate, and setting guidelines for credit review and analysis•Assigning and maintaining credit approval authorities in connection with the approval of credit exposure•Monitoring and independent assessment of criticized exposures and delinquent loans, and•Estimating credit losses, including periodic review and refinement of underlying assumptions, and supporting appropriate credit risk-based capital managementRisk identification and measurementTo measure credit risk, the Firm employs several methodologies for estimating the likelihood of obligor or counterparty default. Methodologies for measuring credit risk vary depending on several factors, including type of asset (e.g., consumer versus wholesale), risk measurement parameters (e.g., delinquency status and borrower's credit score versus wholesale risk-rating) and risk management and collection processes (e.g., retail collection center versus centrally managed workout groups). Credit risk measurement is based on the probability of default of an obligor or counterparty, the loss severity given a default event and the exposure at default.Based on these factors and the methodology and estimates described in Note 13 and Note 10, the Firm estimates credit losses for its exposures. The allowance for loan losses reflects estimated credit losses related to the consumer and wholesale held-for-investment loan portfolios, the allowance for lending-related commitments reflects estimated credit losses related to the Firm's lending-related commitments and the allowance for investment securities reflects estimated credit losses related to the investment securities portfolio. Refer to Note 13, Note 10 and Critical Accounting Estimates used by the Firm on pages 154-157 for further information.In addition, potential and unexpected credit losses are reflected in the allocation of credit risk capital and represent the potential volatility of actual losses relative to the established allowances for loan losses and lending-related commitments. The analyses for these losses include stress testing that considers alternative economic scenarios as described below.Stress testingStress testing is important in assessing, measuring and monitoring credit risk in the Firm's credit portfolio. The stress testing process assesses the potential impact of alternative economic and business scenarios on estimated credit losses for the Firm. Economic scenarios and the underlying parameters are defined centrally, articulated in terms of macroeconomic factors and applied across the businesses. The stress test results may indicate credit migration, changes in delinquency trends and potential losses in the credit portfolio. In addition to the periodic stress testing processes, management also considers additional stresses outside these scenarios, including industry and country- specific stress scenarios, as appropriate. The Firm uses stress testing to inform decisions on setting risk appetite both at a Firm and LOB level, as well as to assess the impact of stress on individual counterparties. Credit and investment risk is the risk associated with the default or change in credit profile of a client, counterparty or customer; or loss of principal or a reduction in expected returns on investments, including consumer credit risk, wholesale credit risk, and investment portfolio risk.Credit risk managementCredit risk is the risk associated with the default or change in credit profile of a client, counterparty or customer. The Firm provides credit to a variety of clients and customers, ranging from large corporate and institutional clients to individual consumers and small businesses. In its consumer businesses, the Firm is exposed to credit risk primarily through its home lending, credit card, auto, and business banking businesses. In its wholesale businesses, the Firm is exposed to credit risk through its underwriting, lending, market-making, and hedging activities with and for clients and counterparties, as well as through its operating services activities (such as cash management and clearing activities), and securities financing activities. The Firm is also exposed to credit risk through its investment securities portfolio and cash placed with banks.Credit Risk Management monitors and measures credit risk throughout the Firm, and defines credit risk policies, procedures and limits. The Firm's credit risk management governance includes the following activities:•Maintaining a credit risk policy framework•Monitoring and measuring credit risk across all portfolio segments, including transaction and exposure approval•Setting industry and geographic concentration limits, as appropriate, and setting guidelines for credit review and analysis•Assigning and maintaining credit approval authorities in connection with the approval of credit exposure•Monitoring and independent assessment of criticized exposures and delinquent loans, and•Estimating credit losses, including periodic review and refinement of underlying assumptions, and supporting appropriate credit risk-based capital management Credit and investment risk is the risk associated with the default or change in credit profile of a client, counterparty or customer; or loss of principal or a reduction in expected returns on investments, including consumer credit risk, wholesale credit risk, and investment portfolio risk. --- ## Modified Risk: Total assets(a) **Key changes:** - Updated: "Deposits (included $20,930 and $33,768 at fair value) Federal funds purchased and securities loaned or sold under repurchase agreements (included $360,194 and $226,329 at fair value) Short-term borrowings (included $32,460 and $26,521 at fair value) Accounts payable and other liabilities (included $6,660 and $5,893 at fair value) Beneficial interests issued by consolidated VIEs (included $5 and $1 at fair value) Long-term debt (included $134,559 and $100,780 at fair value)" **Prior (2025):** Deposits (included $33,768 and $78,384 at fair value) Federal funds purchased and securities loaned or sold under repurchase agreements (included $226,329 and $169,003 at fair value) Short-term borrowings (included $26,521 and $20,042 at fair value) Accounts payable and other liabilities (included $5,893 and $5,637 at fair value) Beneficial interests issued by consolidated VIEs (included $1 and $1 at fair value) Long-term debt (included $100,780 and $87,924 at fair value) **Current (2026):** Deposits (included $20,930 and $33,768 at fair value) Federal funds purchased and securities loaned or sold under repurchase agreements (included $360,194 and $226,329 at fair value) Short-term borrowings (included $32,460 and $26,521 at fair value) Accounts payable and other liabilities (included $6,660 and $5,893 at fair value) Beneficial interests issued by consolidated VIEs (included $5 and $1 at fair value) Long-term debt (included $134,559 and $100,780 at fair value) --- ## Modified Risk: Wholesale(b) **Key changes:** - Updated: "Individuals and Individual Entities(c) Asset Managers Oil & Gas Automotive State & Municipal Govt(d) All other(e) Receivables from customers(f)" **Prior (2025):** Individuals and Individual Entities(c) Asset Managers State & Municipal Govt(d) Automotive All other(e) Loans held-for-sale and loans at fair value Receivables from customers(f) **Current (2026):** Individuals and Individual Entities(c) Asset Managers Oil & Gas Automotive State & Municipal Govt(d) All other(e) Receivables from customers(f) --- ## Modified Risk: Active and suspended foreclosure **Key changes:** - Updated: "At December 31, 2025 and 2024, the Firm had retained residential real estate loans, excluding those insured by U.S." **Prior (2025):** At December 31, 2024 and 2023, the Firm had retained residential real estate loans, excluding those insured by U.S. government agencies, with a carrying value of $576 million and $566 million, respectively, that were not included in REO, but were in the process of active or suspended foreclosure. 252JPMorgan Chase & Co./2024 Form 10-K 252JPMorgan Chase & Co./2024 Form 10-K 252JPMorgan Chase & Co./2024 Form 10-K 252 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** At December 31, 2025 and 2024, the Firm had retained residential real estate loans, excluding those insured by U.S. government agencies, with a carrying value of $575 million and $576 million, respectively, that were not included in REO, but were in the process of active or suspended foreclosure. 244JPMorgan Chase & Co./2025 Form 10-K 244JPMorgan Chase & Co./2025 Form 10-K 244JPMorgan Chase & Co./2025 Form 10-K 244 JPMorgan Chase & Co./2025 Form 10-K --- ## Modified Risk: Core deposit and customer relationship intangibles **Key changes:** - Updated: "Core deposit and certain wealth management customer relationship intangibles were acquired as part of the First Republic acquisition." - Updated: "Both intangible asset valuations utilized assumptions that the Firm believes a market participant would use to estimate fair values, such as growth and attrition rates, projected fee income as well as related costs to service the relationships, and discount rates." **Prior (2025):** The computation of the purchase price, the fair values of the assets acquired and liabilities assumed as part of the First Republic acquisition and the related bargain purchase gain are presented below, which reflects adjustments made during the measurement period to the acquisition-date fair value of the net assets acquired. The measurement period ended on April 30, 2024. Fair value purchaseprice allocation as ofMay 1, 2023(in millions)Purchase price considerationAmounts paid/due to the FDIC, net of cash acquired(a)$13,555 Purchase Money Note (at fair value)(b)48,848 Settlement of First Republic deposit and other related party transactions(c)5,447 Contingent consideration - Shared-loss agreements15 Purchase price consideration$67,865 Assets Securities$30,285 Loans153,242 Core deposit and customer relationship intangibles1,455 Indemnification assets - Shared-loss agreements675 Accounts receivable and other assets(d)6,740 Total assets acquired$192,397 LiabilitiesDeposits$87,572 FHLB advances27,919 Lending-related commitments2,614 Accounts payable and other liabilities(d)2,792 Deferred tax liabilities757 Total liabilities assumed$121,654 Fair value of net assets acquired$70,743 Gain on acquisition, after income taxes$2,878 Amounts paid/due to the FDIC, net of cash acquired(a) Purchase Money Note (at fair value)(b) Settlement of First Republic deposit and other related party transactions(c) Accounts receivable and other assets(d) Accounts payable and other liabilities(d) (a)Net of cash acquired of $680 million, and including disputed amounts with the FDIC as of April 30, 2024. (b)As part of the consideration paid, JPMorganChase issued a five-year, $50 billion secured note to the FDIC (the "Purchase Money Note"). (c)Includes $447 million of securities financing transactions with First Republic Bank that were effectively settled on the acquisition date. (d)Other assets include $1.2 billion in tax-oriented investments and $683 million of lease right-of-use assets. Other liabilities include the related tax-oriented investment liabilities of $669 million and lease liabilities of $748 million. The following describes the accounting policies and fair value methodologies generally used by the Firm for the following assets acquired and liabilities assumed: core deposit and customer relationship intangibles, shared-loss agreements and the related indemnification assets, Purchase Money Note, and FHLB advances. For further discussion of the Firm's accounting policies and valuation methodologies, refer to Notes 2 and 3 for fair value measurement, Note 10 for investment securities, Note 12 for loans, Note 17 for deposits, and Note 28 for lending-related commitments. Core deposit and customer relationship intangiblesCore deposit and certain wealth management customer relationship intangibles were acquired as part of the First Republic acquisition. The core deposit intangible of $1.3 billion was valued by discounting estimated after-tax cost savings over the remaining useful life of the deposits using the favorable source of funds method. The after-tax cost savings were estimated based on the difference between the cost of maintaining the core deposit base relative to the cost of next best alternative funding sources available to market participants. The customer relationship intangibles of $180 million were valued by discounting estimated after-tax earnings over their remaining useful lives using the multi-period excess earnings method. Both intangible asset valuations utilized assumptions that the Firm believes a market participant would use to estimate fair values, such as growth and attrition rates, projected fee income as well as related costs to service the relationships, and discount rates. The core deposit and customer relationship intangibles are amortized over a projected period of future cash flows of approximately 7 years. Refer to Note 15 for further discussion on other intangible assets. Core deposit and customer relationship intangiblesCore deposit and certain wealth management customer relationship intangibles were acquired as part of the First Republic acquisition. The core deposit intangible of $1.3 billion was valued by discounting estimated after-tax cost savings over the remaining useful life of the deposits using the favorable source of funds method. The after-tax cost savings were estimated based on the difference between the cost of maintaining the core deposit base relative to the cost of next best alternative funding sources available to market participants. The customer relationship intangibles of $180 million were valued by discounting estimated after-tax earnings over their remaining useful lives using the multi-period excess earnings **Current (2026):** Core deposit and certain wealth management customer relationship intangibles were acquired as part of the First Republic acquisition. The core deposit intangible of $1.3 billion was valued by discounting estimated after-tax cost savings over the remaining useful life of the deposits using the favorable source of funds method. The after-tax cost savings were estimated based on the difference between the cost of maintaining the core deposit base relative to the cost of next best alternative funding sources available to market participants. The customer relationship intangibles of $180 million were valued by discounting estimated after-tax earnings over their remaining useful lives using the multi-period excess earnings method. Both intangible asset valuations utilized assumptions that the Firm believes a market participant would use to estimate fair values, such as growth and attrition rates, projected fee income as well as related costs to service the relationships, and discount rates. The core deposit and customer relationship intangibles are amortized over a projected period of future cash flows of approximately 7 years. Refer to Note 15 for further discussion on other intangible assets. method. Both intangible asset valuations utilized assumptions that the Firm believes a market participant would use to estimate fair values, such as growth and attrition rates, projected fee income as well as related costs to service the relationships, and discount rates. The core deposit and customer relationship intangibles are amortized over a projected period of future cash flows of approximately 7 years. Refer to Note 15 for further discussion on other intangible assets. JPMorgan Chase & Co./2025 Form 10-K313 JPMorgan Chase & Co./2025 Form 10-K313 JPMorgan Chase & Co./2025 Form 10-K313 JPMorgan Chase & Co./2025 Form 10-K 313 --- ## Modified Risk: Total nonaccrual loans(b) **Key changes:** - Updated: "(b)Interest income on nonaccrual loans recognized on a cash basis was not material and $51 million for the years ended December 31, 2025 and 2024, respectively." **Prior (2025):** (a)When the discounted cash flows or collateral value equals or exceeds the amortized cost of the loan, the loan does not require an allowance. This typically occurs when the loans have been partially charged off and/or there have been interest payments received and applied to the loan balance. (b)Interest income on nonaccrual loans recognized on a cash basis was $51 million and $19 million for the years ended December 31, 2024 and 2023, respectively. JPMorgan Chase & Co./2024 Form 10-K261 JPMorgan Chase & Co./2024 Form 10-K261 JPMorgan Chase & Co./2024 Form 10-K261 JPMorgan Chase & Co./2024 Form 10-K 261 **Current (2026):** (a)When the discounted cash flows or collateral value equals or exceeds the amortized cost of the loan, the loan does not require an allowance. This typically occurs when the loans have been partially charged off and/or there have been interest payments received and applied to the loan balance. (b)Interest income on nonaccrual loans recognized on a cash basis was not material and $51 million for the years ended December 31, 2025 and 2024, respectively. JPMorgan Chase & Co./2025 Form 10-K253 JPMorgan Chase & Co./2025 Form 10-K253 JPMorgan Chase & Co./2025 Form 10-K253 JPMorgan Chase & Co./2025 Form 10-K 253 --- ## Modified Risk: JPMorganChase's business and operations rely on appropriate staffing and on the competence, trustworthiness, health and safety of employees. **Key changes:** - Updated: "JPMorganChase's ability to operate its businesses efficiently and profitably, to offer products and services that meet the expectations of its clients and customers, 23 23 23 23 Part I Part I and to maintain an effective risk management framework is highly dependent on its ability to staff its operations appropriately and on the competence, trustworthiness, health and safety of its employees." **Prior (2025):** JPMorganChase's ability to operate its businesses efficiently and profitably, to offer products and services that meet the expectations of its clients and customers, and to maintain an effective risk management framework is highly dependent on its ability to staff its operations appropriately and on the competence, trustworthiness, health and safety of its employees. JPMorganChase's businesses and operations similarly rely on the workforces of third parties, including employees of vendors, custodians and financial markets infrastructures, and of businesses that it may seek to acquire. JPMorganChase's businesses could be materially and adversely affected by: •the ineffective implementation of business decisions •any failure to institute controls that appropriately address risks associated with business activities, or to appropriately train employees with respect to those risks and controls •staffing shortages, particularly in tight labor markets •the possibility that significant portions of JPMorganChase's workforce are unable to work effectively, including because of illness, quarantines, shelter-in-place arrangements, government actions or other restrictions in connection with health emergencies, the spread of infectious diseases, epidemics or pandemics, or due to extraordinary events beyond JPMorganChase's control such as natural disasters or an outbreak or escalation of hostilities•a significant operational breakdown or failure, theft, fraud or other unlawful conduct, or•other negative outcomes caused by human error or misconduct by an employee of JPMorganChase or of another party on which JPMorganChase's businesses or operations rely.JPMorganChase's operations could also be impaired if the measures taken by it or by governmental authorities to protect the health and safety of its employees are ineffective, or if any external party on which JPMorganChase relies fails to take appropriate and effective actions to protect the health and safety of its employees.JPMorganChase faces substantial legal and operational risks in the processing and safeguarding of personal information.JPMorganChase's businesses and operations are subject to complex and evolving laws, rules and regulations, both within and outside the U.S., governing the privacy and protection of personal information of individuals. Governmental authorities around the world have adopted and are considering the adoption of numerous legislative and regulatory initiatives concerning privacy, data protection and security. Litigation or enforcement actions relating to these laws, rules and regulations could result in fines or orders requiring that JPMorganChase change its data-related practices, which could have an adverse effect on JPMorganChase's ability to provide products and otherwise harm its business operations.Implementing processes relating to JPMorganChase's collection, use, sharing and storage of personal information to comply with all applicable laws, rules and regulations in all relevant jurisdictions, including where the laws of different jurisdictions are in conflict, can:•increase JPMorganChase's compliance and operating costs•hinder the development of new products or services, curtail the offering of existing products or services, or affect how products and services are offered to clients and customers•demand significant oversight by JPMorganChase's management, and •require JPMorganChase to structure its businesses, operations and systems in less efficient ways. Not all of JPMorganChase's clients, customers, vendors, counterparties and other external parties may have appropriate controls in place to protect the confidentiality, integrity or availability of the emergencies, the spread of infectious diseases, epidemics or pandemics, or due to extraordinary events beyond JPMorganChase's control such as natural disasters or an outbreak or escalation of hostilities •a significant operational breakdown or failure, theft, fraud or other unlawful conduct, or •other negative outcomes caused by human error or misconduct by an employee of JPMorganChase or of another party on which JPMorganChase's businesses or operations rely. JPMorganChase's operations could also be impaired if the measures taken by it or by governmental authorities to protect the health and safety of its employees are ineffective, or if any external party on which JPMorganChase relies fails to take appropriate and effective actions to protect the health and safety of its employees. **Current (2026):** JPMorganChase's ability to operate its businesses efficiently and profitably, to offer products and services that meet the expectations of its clients and customers, 23 23 23 23 Part I Part I and to maintain an effective risk management framework is highly dependent on its ability to staff its operations appropriately and on the competence, trustworthiness, health and safety of its employees. JPMorganChase's businesses and operations similarly rely on the workforces of third parties, including employees of vendors, custodians and financial markets infrastructures, and of businesses that it may seek to acquire.JPMorganChase's businesses could be materially and adversely affected by:•staffing shortages, particularly in tight labor markets•any failure by employees to adhere to controls designed to mitigate operational risks•the possibility that significant portions of JPMorganChase's workforce are unable to work effectively, including due to health emergencies or other extraordinary events beyond JPMorganChase's control•theft, fraud or other unlawful conduct by employees, or•other negative outcomes caused by human error or misconductJPMorganChase's operations could also be impaired if the measures that it takes to protect the health and safety of employees, or actions taken by governmental authorities or other external parties on which it relies are ineffective. JPMorganChase faces substantial legal and operational risks related to the processing and safeguarding of personal information.JPMorganChase's businesses and operations are subject to applicable law globally related to the collection, use, sharing, storage and protection of personal information of individuals. Complying with these applicable laws could:•hinder development, curtail offerings or affect pricing and delivery methods of products and services •restrict JPMorganChase from transferring information across national borders or sharing information among affiliates or with third parties such as vendors, thereby increasing compliance costs and operational risk•present situations where the applicable law of one country conflicts with that of another, and•require JPMorganChase to structure its businesses, operations and systems in less efficient or more costly ways, including with respect to the local storage and processing of data.JPMorganChase could face legal proceedings, including governmental investigations or enforcement actions, if personal information is mishandled, including if unauthorized parties receive, intercept, or compromise it, if JPMorganChase fails or is perceived to have failed to comply with applicable law, or if JPMorganChase or its third-party vendors fail to protect personal information appropriately. These actions could require JPMorganChase to modify or cease operations or could result in other penalties. Furthermore, concerns regarding the effectiveness of JPMorganChase's measures to safeguard personal information, or the perception that those measures are inadequate, could cause JPMorganChase to lose clients, customers or employees, and thereby reduce JPMorganChase's revenues. Any of these factors could cause reputational harm and otherwise adversely affect JPMorganChase's businesses.The growing sophistication of technology poses a heightened risk of identity fraud, as malicious actors may exploit technology to create convincing false identities or manipulate verification processes. Failure to manage these risks or to implement effective countermeasures could lead to unauthorized transactions, financial losses, increased regulatory scrutiny and reputational harm. In addition, greater government scrutiny of practices related to the handling of personal information has in some cases resulted in, and could in the future lead to, the adoption of applicable law in the U.S. and elsewhere that is stricter and could result in JPMorganChase incurring higher compliance costs or constraining its ability to offer certain products and services to customers. JPMorganChase's operations, results and reputation could be harmed by occurrences of extraordinary events beyond its control.JPMorganChase's business and operations could be seriously disrupted, and its reputation could be harmed, by events or contributing factors that are wholly or partially beyond its control, including material instances of:•cyber attacks•security breaches of its physical premises, including threats to health and safety•utility or telecommunications failures, internet outages or shutdowns of mass transit•failure of, or loss of access to, technology or operational systems, including any resulting loss of critical data•interruption of service from third-party service providers, including financial market infrastructures•damage to or loss of property or assets of JPMorganChase or third parties, and any consequent injuries, including in connection with any construction projects undertaken by JPMorganChase•failure or perceived failure by clients, customers or counterparties of JPMorganChase, or by other parties, including newly-acquired businesses, companies in which JPMorganChase has made principal investments, parties to joint ventures with JPMorganChase and vendors with which and to maintain an effective risk management framework is highly dependent on its ability to staff its operations appropriately and on the competence, trustworthiness, health and safety of its employees. JPMorganChase's businesses and operations similarly rely on the workforces of third parties, including employees of vendors, custodians and financial markets infrastructures, and of businesses that it may seek to acquire.JPMorganChase's businesses could be materially and adversely affected by:•staffing shortages, particularly in tight labor markets•any failure by employees to adhere to controls designed to mitigate operational risks•the possibility that significant portions of JPMorganChase's workforce are unable to work effectively, including due to health emergencies or other extraordinary events beyond JPMorganChase's control•theft, fraud or other unlawful conduct by employees, or•other negative outcomes caused by human error or misconductJPMorganChase's operations could also be impaired if the measures that it takes to protect the health and safety of employees, or actions taken by governmental authorities or other external parties on which it relies are ineffective. JPMorganChase faces substantial legal and operational risks related to the processing and safeguarding of personal information.JPMorganChase's businesses and operations are subject to applicable law globally related to the collection, use, sharing, storage and protection of personal information of individuals. Complying with these applicable laws could:•hinder development, curtail offerings or affect pricing and delivery methods of products and services •restrict JPMorganChase from transferring information across national borders or sharing information among affiliates or with third parties such as vendors, thereby increasing compliance costs and operational risk•present situations where the applicable law of one country conflicts with that of another, and•require JPMorganChase to structure its businesses, operations and systems in less efficient or more costly ways, including with respect to the local storage and processing of data.JPMorganChase could face legal proceedings, including governmental investigations or enforcement actions, if personal information is mishandled, including if unauthorized parties receive, intercept, or compromise it, if JPMorganChase fails or is perceived and to maintain an effective risk management framework is highly dependent on its ability to staff its operations appropriately and on the competence, trustworthiness, health and safety of its employees. JPMorganChase's businesses and operations similarly rely on the workforces of third parties, including employees of vendors, custodians and financial markets infrastructures, and of businesses that it may seek to acquire. JPMorganChase's businesses could be materially and adversely affected by: •staffing shortages, particularly in tight labor markets •any failure by employees to adhere to controls designed to mitigate operational risks •the possibility that significant portions of JPMorganChase's workforce are unable to work effectively, including due to health emergencies or other extraordinary events beyond JPMorganChase's control •theft, fraud or other unlawful conduct by employees, or •other negative outcomes caused by human error or misconduct JPMorganChase's operations could also be impaired if the measures that it takes to protect the health and safety of employees, or actions taken by governmental authorities or other external parties on which it relies are ineffective. --- ## Modified Risk: Derivatives netting **Key changes:** - Updated: "The following tables present, as of December 31, 2025 and 2024, gross and net derivative receivables and payables by contract and settlement type." - Updated: "JPMorgan Chase & Co./2025 Form 10-K207 JPMorgan Chase & Co./2025 Form 10-K207 JPMorgan Chase & Co./2025 Form 10-K207 JPMorgan Chase & Co./2025 Form 10-K 207" **Prior (2025):** The following tables present, as of December 31, 2024 and 2023, gross and net derivative receivables and payables by contract and settlement type. Derivative receivables and payables, as well as the related cash collateral from the same counterparty, have been netted on the Consolidated balance sheets where the Firm has obtained an appropriate legal opinion with respect to the master netting agreement. Where such a legal opinion has not been either sought or obtained, amounts are not eligible for netting on the Consolidated balance sheets, and those derivative receivables and payables are shown separately in the tables. In addition to the cash collateral received and transferred that is presented on a net basis with derivative receivables and payables, the Firm receives and transfers additional collateral (financial instruments and cash). These amounts mitigate counterparty credit risk associated with the Firm's derivative instruments, but are not eligible for net presentation: •collateral that consists of liquid securities and other cash collateral held at third-party custodians, which are shown separately as "Collateral not nettable on the Consolidated balance sheets" in the tables, up to the fair value exposure amount. For the purpose of this disclosure, the definition of liquid securities is consistent with the definition of high quality liquid assets as defined in the LCR rule; •the amount of collateral held or transferred that exceeds the fair value exposure at the individual counterparty level, as of the date presented, which is excluded from the tables; and •collateral held or transferred that relates to derivative receivables or payables where an appropriate legal opinion has not been either sought or obtained with respect to the master netting agreement, which is excluded from the tables. 214JPMorgan Chase & Co./2024 Form 10-K 214JPMorgan Chase & Co./2024 Form 10-K 214JPMorgan Chase & Co./2024 Form 10-K 214 JPMorgan Chase & Co./2024 Form 10-K 20242023December 31, (in millions)Gross derivative receivablesAmounts netted on the Consolidated balance sheetsNet derivative receivablesGross derivative receivablesAmounts netted on the Consolidated balance sheetsNetderivative receivablesU.S. GAAP nettable derivative receivablesInterest rate contracts:OTC$158,202 $(134,791)$23,411 $176,901 $(152,703)$24,198 OTC-cleared130,989 (130,810)179 71,419 (71,275)144 Exchange-traded(a)190 (188)2 402 (389)13 Total interest rate contracts289,381 (265,789)23,592 248,722 (224,367)24,355 Credit contracts:OTC8,680 (8,030)650 7,637 (7,226)411 OTC-cleared2,267 (2,243)24 1,904 (1,877)27 Total credit contracts10,947 (10,273)674 9,541 (9,103)438 Foreign exchange contracts:OTC259,608 (236,931)22,677 203,624 (187,295)16,329 OTC-cleared685 (677)8 469 (459)10 Exchange-traded(a)34 - 34 6 (2)4 Total foreign exchange contracts260,327 (237,608)22,719 204,099 (187,756)16,343 Equity contracts:OTC33,269 (30,742)2,527 25,001 (23,677)1,324 Exchange-traded(a)51,040 (49,193)1,847 30,462 (29,084)1,378 Total equity contracts84,309 (79,935)4,374 55,463 (52,761)2,702 Commodity contracts:OTC8,340 (5,848)2,492 8,049 (5,084)2,965 OTC-cleared126 (84)42 133 (123)10 Exchange-traded(a)5,179 (5,083)96 5,214 (5,190)24 Total commodity contracts13,645 (11,015)2,630 13,396 (10,397)2,999 Derivative receivables with appropriate legal opinion658,609 (604,620)53,989 (d)531,221 (484,384)46,837 (d)Derivative receivables where an appropriate legal opinion has not been either sought or obtained6,978 6,978 8,027 8,027 Total derivative receivables recognized on the Consolidated balance sheets$665,587 $60,967 $539,248 $54,864 Collateral not nettable on the Consolidated balance sheets(b)(c)(28,160)(22,461)Net amounts$32,807 $32,403 **Current (2026):** The following tables present, as of December 31, 2025 and 2024, gross and net derivative receivables and payables by contract and settlement type. Derivative receivables and payables, as well as the related cash collateral from the same counterparty, have been netted on the Consolidated balance sheets where the Firm has obtained an appropriate legal opinion with respect to the master netting agreement. Where such a legal opinion has not been either sought or obtained, amounts are not eligible for netting on the Consolidated balance sheets, and those derivative receivables and payables are shown separately in the tables. In addition to the cash collateral received and transferred that is presented on a net basis with derivative receivables and payables, the Firm receives and transfers additional collateral (financial instruments and cash). These amounts mitigate counterparty credit risk associated with the Firm's derivative instruments, but are not eligible for net presentation: •collateral that consists of liquid securities and other cash collateral held at third-party custodians, which are shown separately as "Collateral not nettable on the Consolidated balance sheets" in the tables, up to the fair value exposure amount. For the purpose of this disclosure, the definition of liquid securities is consistent with the definition of high quality liquid assets as defined in the LCR rule; •the amount of collateral held or transferred that exceeds the fair value exposure at the individual counterparty level, as of the date presented, which is excluded from the tables; and •collateral held or transferred that relates to derivative receivables or payables where an appropriate legal opinion has not been either sought or obtained with respect to the master netting agreement, which is excluded from the tables. JPMorgan Chase & Co./2025 Form 10-K207 JPMorgan Chase & Co./2025 Form 10-K207 JPMorgan Chase & Co./2025 Form 10-K207 JPMorgan Chase & Co./2025 Form 10-K 207 --- ## Modified Risk: Defined benefit pension and OPEB plans assets and liabilities measured at fair value **Key changes:** - Updated: "(in millions) Level 1(a) Level 2(b) Level 3(c) Level 1(a) Level 2(b) Level 3(c) Net defined benefit pension plan payables (a)Consists predominantly of equity securities, fund investments, U.S." **Prior (2025):** Changes in level 3 fair value measurements using significant unobservable inputsInvestments classified in level 3 of the fair value hierarchy increased in 2024 to $4.0 billion, due to $536 million of transfers in and $415 million in unrealized gains, partially offset by $123 million in settlements. The net increase in 2023 was due to $400 million in unrealized gains and $173 million of transfers in, partially offset by $59 million in settlements.Estimated future benefit payments The following table presents benefit payments expected to be paid for the defined benefit pension and OPEB plans for the years indicated.Year ended December 31,(in millions)2025$1,186 20261,155 20271,134 20281,095 20291,093 Years 2030-20345,229 Changes in level 3 fair value measurements using significant unobservable inputsInvestments classified in level 3 of the fair value hierarchy increased in 2024 to $4.0 billion, due to $536 million of transfers in and $415 million in unrealized gains, partially offset by $123 million in settlements. The net increase in 2023 was due to $400 million in unrealized gains and $173 million of transfers in, partially offset by $59 million in settlements. **Current (2026):** (in millions) Level 1(a) Level 2(b) Level 3(c) Level 1(a) Level 2(b) Level 3(c) Net defined benefit pension plan payables (a)Consists predominantly of equity securities, fund investments, U.S. federal and non-U.S. government debt securities, and cash equivalents. (b)Consists of corporate debt securities, mortgage-backed securities, fund investments, and U.S. state, local and non-U.S. government debt securities. (c)Consists predominantly of corporate-owned life insurance policies. 224JPMorgan Chase & Co./2025 Form 10-K 224JPMorgan Chase & Co./2025 Form 10-K 224JPMorgan Chase & Co./2025 Form 10-K 224 JPMorgan Chase & Co./2025 Form 10-K Changes in level 3 fair value measurements using significant unobservable inputsInvestments classified in level 3 of the fair value hierarchy increased in 2025 to $4.2 billion, due to $361 million in unrealized gains, partially offset by $58 million in sales, $52 million of transfers out, and $46 million in settlements. The net increase in 2024 was due to $536 million of transfers in and $415 million in unrealized gains, partially offset by $123 million in settlements.Estimated future benefit payments The following table presents benefit payments expected to be paid for the defined benefit pension and OPEB plans for the years indicated.Year ended December 31,(in millions)2026$2,253 20271,074 20281,061 20291,031 20301,017 Years 2031-20354,834 Changes in level 3 fair value measurements using significant unobservable inputsInvestments classified in level 3 of the fair value hierarchy increased in 2025 to $4.2 billion, due to $361 million in unrealized gains, partially offset by $58 million in sales, $52 million of transfers out, and $46 million in settlements. The net increase in 2024 was due to $536 million of transfers in and $415 million in unrealized gains, partially offset by $123 million in settlements. --- ## Modified Risk: Full-year 2026 **Key changes:** - Updated: "•Management expects net interest income to be approximately $103 billion and net interest income excluding Markets to be approximately $95 billion, market dependent." - Updated: "Refer to pages 154-157 for a discussion of the Critical Accounting Estimates Used by the Firm that affect the Consolidated Results of Operations." - Updated: "Refer to Note 6 for additional information." - Updated: "Refer to Notes 6 and 34 for additional information.2025 compared with 2024Investment banking fees increased, reflecting in CIB: •higher debt underwriting fees predominantly driven by non-investment grade loans and investment grade bonds,•higher advisory fees benefiting from higher fees from deals in the Financial Institutions and Technology sectors, partially offset by lower fees from deals in the Media & Telecommunications sector, and•higher equity underwriting fees primarily driven by higher revenue from IPOs.Refer to CIB segment results on pages 69-75 and Note 6 for additional information.Principal transactions revenue increased, reflecting in CIB: •higher Fixed Income Markets revenue primarily driven by higher revenue in Rates and Commodities, largely offset by lower revenue in Securitized Products, Fixed Income Financing and Currencies & Emerging Markets, and•higher Equity Markets revenue, particularly in Equity Derivatives.The increase in CIB was partially offset by lower revenue in Treasury and CIO.Principal transactions revenue in CIB generally has offsets across other revenue lines, including net interest income." - Updated: "Refer to Note 6 for additional information." **Prior (2025):** On May 1, 2023, JPMorganChase acquired certain assets and assumed certain liabilities of First Republic Bank (the "First Republic acquisition") from the Federal Deposit Insurance Corporation ("FDIC"), as receiver. As of December 31, 2024, the Firm had substantially completed the conversion of operations, and the integration of clients, products and services, associated with the First Republic acquisition to align with the Firm's businesses and operations. Refer to Note 34 for additional information on First Republic. 58JPMorgan Chase & Co./2024 Form 10-K 58JPMorgan Chase & Co./2024 Form 10-K 58JPMorgan Chase & Co./2024 Form 10-K 58 JPMorgan Chase & Co./2024 Form 10-K CONSOLIDATED RESULTS OF OPERATIONSThis section provides a comparative discussion of JPMorganChase's Consolidated Results of Operations on a reported basis for the two-year period ended December 31, 2024, unless otherwise specified. Refer to Consolidated Results of Operations on pages 54-57 of the Firm's Annual Report on Form 10-K for the year ended December 31, 2023 (the "2023 Form 10-K") for a discussion of the 2023 versus 2022 results. Factors that relate primarily to a single business segment or Corporate are discussed in more detail in the results of that segment or Corporate. Refer to pages 161-164 for a discussion of the Critical Accounting Estimates Used by the Firm that affect the Consolidated Results of Operations. RevenueYear ended December 31,(in millions)202420232022Investment banking fees$8,910 $6,519 $6,686 Principal transactions24,787 24,460 19,912 Lending- and deposit-related fees7,606 7,413 7,098 Asset management fees17,801 15,220 14,096 Commissions and other fees7,530 6,836 6,581 Investment securities losses(1,021)(3,180)(2,380)Mortgage fees and related income1,401 1,176 1,250 Card income5,497 4,784 4,420 Other income(a)(b)12,462 (c)5,609 (d)4,322 Noninterest revenue84,973 68,837 61,985 Net interest income92,583 89,267 66,710 Total net revenue$177,556 $158,104 $128,695 (a)Included operating lease income of $2.8 billion, $2.8 billion and $3.7 billion for the years ended December 31, 2024, 2023 and 2022, respectively. Refer to Note 6 for additional information.(b)Effective January 1, 2024, as a result of adopting updates to the Accounting for Investments in Tax Credit Structures guidance, the amortization of certain of the Firm's alternative energy tax-oriented investments that was previously recognized in other income is now recognized in income tax expense. Refer to Notes 1, 6, 14 and 25 for additional information.(c)Included the net gain related to Visa shares of $7.9 billion recorded in the second quarter of 2024. Refer to Notes 2 and 6 for additional information. (d)Included the estimated bargain purchase gain of $2.8 billion for the year ended December 31, 2023 associated with the First Republic acquisition. Refer to Notes 6 and 34 for additional information.2024 compared with 2023Investment banking fees increased, reflecting in CIB the benefit of favorable market conditions, which resulted in:•higher debt underwriting fees predominantly driven by higher industry-wide issuances in leveraged loans, and in high-grade and high-yield bonds, •higher equity underwriting fees driven by higher industry-wide fees and wallet share gains in IPOs, and in follow-on and convertible securities offerings, and•higher advisory fees driven by higher industry-wide mergers and acquisitions ("M&A") activity and wallet share gains.Refer to CIB segment results on pages 77-83 and Note 6 for additional information.Principal transactions revenue increased driven by CIB, reflecting:•higher Equity Markets revenue in Prime Finance and Equity Derivatives,predominantly offset by•lower Fixed Income Markets revenue, reflecting the net impact of declines in revenue across macro businesses and higher revenue in Securitized Products.Principal transactions revenue in CIB generally has offsets across other revenue lines, including net interest income. The Firm assesses the performance of its Markets business on a total net revenue basis.The increase in CIB was partially offset by a net decrease in Corporate, reflecting lower revenue in Treasury and CIO, and gains compared with a net loss on certain legacy private equity investments in the prior year.Refer to CIB segment and Corporate results on pages 77-83 and pages 88-90, respectively, and Note 6 for additional information.Lending- and deposit-related fees increased, reflecting, in CIB, higher deposit-related fees, including cash management fees in Payments, on higher volume; and higher lending-related fees, including loan commitment fees. These factors were largely offset by a decline in the amortization of the fair value discount on certain acquired lending-related commitments associated with First Republic, primarily in AWM, as certain of the commitments have expired. Refer to CIB and AWM segment results on pages 77-83 and pages 84-87, respectively, and Note 6 for additional information.Asset management fees increased, reflecting, in AWM and CCB, higher average market levels and net inflows, as well as higher performance fees in AWM; and in CCB, the timing impact of First Republic. Refer to CCB and AWM segment results on pages 73-76 and pages 84-87, respectively, and Note 6 for additional information. RevenueYear ended December 31,(in millions)202420232022Investment banking fees$8,910 $6,519 $6,686 Principal transactions24,787 24,460 19,912 Lending- and deposit-related fees7,606 7,413 7,098 Asset management fees17,801 15,220 14,096 Commissions and other fees7,530 6,836 6,581 Investment securities losses(1,021)(3,180)(2,380)Mortgage fees and related income1,401 1,176 1,250 Card income5,497 4,784 4,420 Other income(a)(b)12,462 (c)5,609 (d)4,322 Noninterest revenue84,973 68,837 61,985 Net interest income92,583 89,267 66,710 Total net revenue$177,556 $158,104 $128,695 (a)Included operating lease income of $2.8 billion, $2.8 billion and $3.7 billion for the years ended December 31, 2024, 2023 and 2022, respectively. Refer to Note 6 for additional information.(b)Effective January 1, 2024, as a result of adopting updates to the Accounting for Investments in Tax Credit Structures guidance, the amortization of certain of the Firm's alternative energy tax-oriented investments that was previously recognized in other income is now recognized in income tax expense. Refer to Notes 1, 6, 14 and 25 for additional information.(c)Included the net gain related to Visa shares of $7.9 billion recorded in the second quarter of 2024. Refer to Notes 2 and 6 for additional information. (d)Included the estimated bargain purchase gain of $2.8 billion for the year ended December 31, 2023 associated with the First Republic acquisition. Refer to Notes 6 and 34 for additional information.2024 compared with 2023Investment banking fees increased, reflecting in CIB the benefit of favorable market conditions, which resulted in:•higher debt underwriting fees predominantly driven by higher industry-wide issuances in leveraged loans, and in high-grade and high-yield bonds, •higher equity underwriting fees driven by higher industry-wide fees and wallet share gains in IPOs, and in follow-on and convertible securities offerings, and•higher advisory fees driven by higher industry-wide mergers and acquisitions ("M&A") activity and wallet share gains. RevenueYear ended December 31,(in millions)202420232022Investment banking fees$8,910 $6,519 $6,686 Principal transactions24,787 24,460 19,912 Lending- and deposit-related fees7,606 7,413 7,098 Asset management fees17,801 15,220 14,096 Commissions and other fees7,530 6,836 6,581 Investment securities losses(1,021)(3,180)(2,380)Mortgage fees and related income1,401 1,176 1,250 Card income5,497 4,784 4,420 Other income(a)(b)12,462 (c)5,609 (d)4,322 Noninterest revenue84,973 68,837 61,985 Net interest income92,583 89,267 66,710 Total net revenue$177,556 $158,104 $128,695 Other income(a)(b) (c) (d) (a)Included operating lease income of $2.8 billion, $2.8 billion and $3.7 billion for the years ended December 31, 2024, 2023 and 2022, respectively. Refer to Note 6 for additional information. (b)Effective January 1, 2024, as a result of adopting updates to the Accounting for Investments in Tax Credit Structures guidance, the amortization of certain of the Firm's alternative energy tax-oriented investments that was previously recognized in other income is now recognized in income tax expense. Refer to Notes 1, 6, 14 and 25 for additional information. (c)Included the net gain related to Visa shares of $7.9 billion recorded in the second quarter of 2024. Refer to Notes 2 and 6 for additional information. (d)Included the estimated bargain purchase gain of $2.8 billion for the year ended December 31, 2023 associated with the First Republic acquisition. Refer to Notes 6 and 34 for additional information. **Current (2026):** •Management expects net interest income to be approximately $103 billion and net interest income excluding Markets to be approximately $95 billion, market dependent. •Management expects adjusted expense to be approximately $105 billion, market dependent. •Management expects the net charge-off rate in Card Services to be approximately 3.4%. 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 59-61. 50JPMorgan Chase & Co./2025 Form 10-K 50JPMorgan Chase & Co./2025 Form 10-K 50JPMorgan Chase & Co./2025 Form 10-K 50 JPMorgan Chase & Co./2025 Form 10-K CONSOLIDATED RESULTS OF OPERATIONSThis section provides a comparative discussion of JPMorganChase's Consolidated Results of Operations on a reported basis for the two-year period ended December 31, 2025, unless otherwise specified. Refer to Consolidated Results of Operations on pages 59-62 of the Firm's Annual Report on Form 10-K for the year ended December 31, 2024 (the "2024 Form 10-K") for a discussion of the 2024 versus 2023 results. Factors that relate primarily to a single business segment or Corporate are discussed in more detail in the results of that segment or Corporate. Refer to pages 154-157 for a discussion of the Critical Accounting Estimates Used by the Firm that affect the Consolidated Results of Operations. RevenueYear ended December 31,(in millions)202520242023Investment banking fees$9,615 $8,910 $6,519 Principal transactions27,212 24,787 24,460 Lending- and deposit-related fees9,093 7,606 7,413 Asset management fees20,327 17,801 15,220 Commissions and other fees8,539 7,530 6,836 Investment securities losses(57)(1,021)(3,180)Mortgage fees and related income1,381 1,401 1,176 Card income4,720 5,497 4,784 Other income(a)6,174 12,462 (b) (c)5,609 (d)Noninterest revenue87,004 84,973 68,837 Net interest income95,443 92,583 89,267 Total net revenue$182,447 $177,556 $158,104 (a)Included operating lease income of $3.8 billion, $2.8 billion and $2.8 billion for the years ended December 31, 2025, 2024 and 2023, respectively. Refer to Note 6 for additional information.(b)Effective January 1, 2024, as a result of adopting updates to the Accounting for Investments in Tax Credit Structures guidance, the amortization of certain of the Firm's alternative energy tax-oriented investments that was previously recognized in other income is now recognized in income tax expense. Refer to Notes 1, 6, 14 and 25 for additional information.(c)Included the net gain related to Visa shares of $7.9 billion recorded in the second quarter of 2024. Refer to Note 6 for additional information. (d)Included the estimated bargain purchase gain of $2.8 billion for the year ended December 31, 2023 associated with the First Republic acquisition. Refer to Notes 6 and 34 for additional information.2025 compared with 2024Investment banking fees increased, reflecting in CIB: •higher debt underwriting fees predominantly driven by non-investment grade loans and investment grade bonds,•higher advisory fees benefiting from higher fees from deals in the Financial Institutions and Technology sectors, partially offset by lower fees from deals in the Media & Telecommunications sector, and•higher equity underwriting fees primarily driven by higher revenue from IPOs.Refer to CIB segment results on pages 69-75 and Note 6 for additional information.Principal transactions revenue increased, reflecting in CIB: •higher Fixed Income Markets revenue primarily driven by higher revenue in Rates and Commodities, largely offset by lower revenue in Securitized Products, Fixed Income Financing and Currencies & Emerging Markets, and•higher Equity Markets revenue, particularly in Equity Derivatives.The increase in CIB was partially offset by lower revenue in Treasury and CIO.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 and Corporate results on pages 69-75 and pages 80-82, respectively, and Note 6 for additional information.Lending- and deposit-related fees increased, reflecting: •in CIB, a reduction in client credits applied to deposit-related fees, as well as higher cash management fees in Payments as a result of higher volume, and•in CCB, higher deposit-related fees as a result of higher transaction volume and new accounts. Refer to CCB and CIB segment results on pages 65-68 and pages 69-75, respectively, and Note 6 for additional information.Asset management fees increased driven by higher average market levels in AWM and CCB, as well as net inflows in AWM and, to a lesser extent, in CCB. Refer to CCB and AWM segment results on pages 65-68 and pages 76-79, respectively, and Note 6 for additional information. Commissions and other fees increased in CIB and AWM, predominantly due to higher brokerage commissions on higher volume and, to a lesser extent, higher custody fees as a result of higher client activity and market levels. Refer to CIB and AWM segment results on pages 69-75 and pages 76-79, respectively, and Note 6 for additional information. RevenueYear ended December 31,(in millions)202520242023Investment banking fees$9,615 $8,910 $6,519 Principal transactions27,212 24,787 24,460 Lending- and deposit-related fees9,093 7,606 7,413 Asset management fees20,327 17,801 15,220 Commissions and other fees8,539 7,530 6,836 Investment securities losses(57)(1,021)(3,180)Mortgage fees and related income1,381 1,401 1,176 Card income4,720 5,497 4,784 Other income(a)6,174 12,462 (b) (c)5,609 (d)Noninterest revenue87,004 84,973 68,837 Net interest income95,443 92,583 89,267 Total net revenue$182,447 $177,556 $158,104 (a)Included operating lease income of $3.8 billion, $2.8 billion and $2.8 billion for the years ended December 31, 2025, 2024 and 2023, respectively. Refer to Note 6 for additional information.(b)Effective January 1, 2024, as a result of adopting updates to the Accounting for Investments in Tax Credit Structures guidance, the amortization of certain of the Firm's alternative energy tax-oriented investments that was previously recognized in other income is now recognized in income tax expense. Refer to Notes 1, 6, 14 and 25 for additional information.(c)Included the net gain related to Visa shares of $7.9 billion recorded in the second quarter of 2024. Refer to Note 6 for additional information. (d)Included the estimated bargain purchase gain of $2.8 billion for the year ended December 31, 2023 associated with the First Republic acquisition. Refer to Notes 6 and 34 for additional information.2025 compared with 2024Investment banking fees increased, reflecting in CIB: •higher debt underwriting fees predominantly driven by non-investment grade loans and investment grade bonds,•higher advisory fees benefiting from higher fees from deals in the Financial Institutions and Technology sectors, partially offset by lower fees from deals in the Media & Telecommunications sector, and•higher equity underwriting fees primarily driven by higher revenue from IPOs.Refer to CIB segment results on pages 69-75 and Note 6 for additional information. RevenueYear ended December 31,(in millions)202520242023Investment banking fees$9,615 $8,910 $6,519 Principal transactions27,212 24,787 24,460 Lending- and deposit-related fees9,093 7,606 7,413 Asset management fees20,327 17,801 15,220 Commissions and other fees8,539 7,530 6,836 Investment securities losses(57)(1,021)(3,180)Mortgage fees and related income1,381 1,401 1,176 Card income4,720 5,497 4,784 Other income(a)6,174 12,462 (b) (c)5,609 (d)Noninterest revenue87,004 84,973 68,837 Net interest income95,443 92,583 89,267 Total net revenue$182,447 $177,556 $158,104 Other income(a) (b) (c) (d) (a)Included operating lease income of $3.8 billion, $2.8 billion and $2.8 billion for the years ended December 31, 2025, 2024 and 2023, respectively. Refer to Note 6 for additional information. (b)Effective January 1, 2024, as a result of adopting updates to the Accounting for Investments in Tax Credit Structures guidance, the amortization of certain of the Firm's alternative energy tax-oriented investments that was previously recognized in other income is now recognized in income tax expense. Refer to Notes 1, 6, 14 and 25 for additional information. (c)Included the net gain related to Visa shares of $7.9 billion recorded in the second quarter of 2024. Refer to Note 6 for additional information. (d)Included the estimated bargain purchase gain of $2.8 billion for the year ended December 31, 2023 associated with the First Republic acquisition. Refer to Notes 6 and 34 for additional information. --- ## Modified Risk: Assets under management rollforward **Key changes:** - Updated: "Alternatives Selected MetricsAs of December 31,20252024ChangeFirmwide Wealth ManagementClient assets (in billions)(a)$4,521 $3,756 20 %Number of client advisors10,150 9,530 7 Stock Plan AdministrationNumber of stock plan participants (in thousands)1,794 1,327 35 Client assets (in billions)$372 $270 38 %" **Prior (2025):** Selected MetricsAs of December 31,20242023ChangeFirmwide Wealth ManagementClient assets (in billions)(a)$3,756 $3,177 18 %Number of client advisors9,530 8,971 6 Stock Plan Administration(b)Number of stock plan participants (in thousands)1,327 974 36 Client assets (in billions)$270 $230 17 % **Current (2026):** Alternatives Selected MetricsAs of December 31,20252024ChangeFirmwide Wealth ManagementClient assets (in billions)(a)$4,521 $3,756 20 %Number of client advisors10,150 9,530 7 Stock Plan AdministrationNumber of stock plan participants (in thousands)1,794 1,327 35 Client assets (in billions)$372 $270 38 % --- ## Modified Risk: Total allowance for credit losses(b) **Key changes:** - Updated: "Allowance for loan losses to retained nonaccrual loans(c) (a)Includes collateral-dependent loans, including those for which foreclosure is deemed probable, and nonaccrual risk-rated loans." **Prior (2025):** Allowance for loan losses to retained nonaccrual loans(d) (a)Represents the impact to the allowance for loan losses upon the adoption of the Financial Instruments - Credit Losses: Troubled Debt Restructurings accounting guidance. Refer to Note 1 for further information. (b)Includes collateral-dependent loans, including those for which foreclosure is deemed probable, and nonaccrual risk-rated loans. (c)At December 31, 2024 and 2023, in addition to the allowance for credit losses in the table above, the Firm also had an allowance for credit losses of $268 million and $243 million, respectively, associated with certain accounts receivable in CIB. (d)The Firm's policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance. 138JPMorgan Chase & Co./2024 Form 10-K 138JPMorgan Chase & Co./2024 Form 10-K 138JPMorgan Chase & Co./2024 Form 10-K 138 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** Allowance for loan losses to retained nonaccrual loans(c) (a)Includes collateral-dependent loans, including those for which foreclosure is deemed probable, and nonaccrual risk-rated loans. (b)At December 31, 2025 and 2024, in addition to the allowance for credit losses in the table above, the Firm also had an allowance for credit losses of $288 million and $268 million, respectively, associated with certain accounts receivable in CIB. (c)The Firm's policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance. (d)Represents the impact of the Apple Card transaction. 130JPMorgan Chase & Co./2025 Form 10-K 130JPMorgan Chase & Co./2025 Form 10-K 130JPMorgan Chase & Co./2025 Form 10-K 130 JPMorgan Chase & Co./2025 Form 10-K --- ## Modified Risk: CIB trading VaR by risk type **Key changes:** - Updated: "Diversification benefit to CIB trading VaR (a) Credit Portfolio VaR(b) Diversification benefit to CIB VaR(a) CIB VaR CCB VaR AWM VaR(c) Corporate VaR(d) Diversification benefit to other VaR(a) Diversification benefit to CIB and other VaR(a) (a)Diversification benefit represents the difference between the portfolio VaR and the sum of its individual components." - Updated: "(b)Includes the derivative CVA, hedges of the CVA and credit protection purchased against certain retained loans and lending-related commitments, which are reported in principal transactions revenue." - Updated: "(c)Includes credit protection purchased against certain retained loans and lending-related commitments." **Prior (2025):** Diversification benefit to CIB trading VaR (b) Credit Portfolio VaR(c) Diversification benefit to CIB VaR(b) CIB VaR CCB VaR AWM VaR(d) Corporate VaR(d)(e) Diversification benefit to other VaR(b) Diversification benefit to CIB and other VaR(b) (a)The impact of the business segment reorganization in the second quarter of 2024 was not material to Total CIB VaR. Prior periods have not been revised. Refer to Business Segment & Corporate Results on pages 70-90 for additional information. (b)Diversification benefit represents the difference between the portfolio VaR and the sum of its individual components. This reflects the non-additive nature of VaR due to imperfect correlation across LOBs, Corporate, and risk types. For maximum and minimum VaR, diversification benefit is not meaningful as the maximum and minimum VaR for each portfolio may have occurred on different trading days than the components. (c)Includes the derivative CVA, hedges of the CVA and credit protection purchased against certain retained loans and lending-related commitments, which are reported in principal transactions revenue. This VaR does not include the retained loan portfolio, which is not reported at fair value. In line with the Firm's internal model governance, the credit risk component of CVA related to certain counterparties was removed from Credit Portfolio VaR due to the widening of the credit spreads for those counterparties to elevated levels. The related hedges were also removed to maintain consistency. This exposure is now reflected in other sensitivity-based measures. (d)In the second quarter of 2024, the presentation of Corporate and other LOB VaR was updated to disaggregate AWM VaR due to the increase associated with credit protection purchased against certain retained loans and lending-related commitments. The VaR does not include the retained loan portfolio, which is not reported at fair value. (e)Includes a legacy private equity position which is publicly traded, as well as Visa C shares which the Firm disposed of in the second and third quarters of 2024. The impact of Visa C shares resulted in elevated average and maximum Corporate VaR, Other VaR and Total VaR. Refer to Executive Overview on pages 54-58 for additional information. **Current (2026):** Diversification benefit to CIB trading VaR (a) Credit Portfolio VaR(b) Diversification benefit to CIB VaR(a) CIB VaR CCB VaR AWM VaR(c) Corporate VaR(d) Diversification benefit to other VaR(a) Diversification benefit to CIB and other VaR(a) (a)Diversification benefit represents the difference between the portfolio VaR and the sum of its individual components. This reflects the non-additive nature of VaR due to imperfect correlation across LOBs, Corporate, and risk types. For maximum and minimum VaR, diversification benefit is not meaningful as the maximum and minimum VaR for each portfolio may have occurred on different trading days than the components. (b)Includes the derivative CVA, hedges of the CVA and credit protection purchased against certain retained loans and lending-related commitments, which are reported in principal transactions revenue. This VaR does not include the retained loan portfolio, which is not reported at fair value. (c)Includes credit protection purchased against certain retained loans and lending-related commitments. This VaR does not include the retained loan portfolio, which is not reported at fair value. (d)Includes Visa Class C common shares which the Firm disposed of in the second and third quarters of 2024 that resulted in elevated average and maximum Corporate VaR, Other VaR and Total VaR. (e)The elevated maximum VaR was due to a client-driven equity position that has since matured. Effective April 1, 2025, the Firm refined the historical proxy time series inputs to one of its VaR models to more appropriately reflect the risk exposure from certain securitization warehousing loan positions. If this refined time series was effective at the beginning of each year presented, the average Total VaR and each of the components would have been lower by the amounts reported in the following table:(In millions)Amounts by which reported average VaR would have been lower for the years ended:December 31, 2025December 31, 2024CIB trading VaR by risk type: Fixed income$(1)$(3)CIB trading VaR(2)(3)CIB VaR(1)(3)Total VaR(1)(2)2025 compared with 2024Average Total VaR decreased by $7 million for the year ended December 31, 2025 when compared with the prior year driven by decreased exposure to Visa Class C common shares in Corporate VaR and market volatility rolling out of the one-year historical look-back period in the foreign exchange and fixed income risk types. This decrease was predominantly offset by increased risk exposure in the commodities and equities risk types. Effective April 1, 2025, the Firm refined the historical proxy time series inputs to one of its VaR models to more appropriately reflect the risk exposure from certain securitization warehousing loan positions. If this refined time series was effective at the beginning of each year presented, the average Total VaR and each of the components would have been lower by the amounts reported in the following table:(In millions)Amounts by which reported average VaR would have been lower for the years ended:December 31, 2025December 31, 2024CIB trading VaR by risk type: Fixed income$(1)$(3)CIB trading VaR(2)(3)CIB VaR(1)(3)Total VaR(1)(2) Effective April 1, 2025, the Firm refined the historical proxy time series inputs to one of its VaR models to more appropriately reflect the risk exposure from certain securitization warehousing loan positions. If this refined time series was effective at the beginning of each year presented, the average Total VaR and each of the components would have been lower by the amounts reported in the following table: (In millions)Amounts by which reported average VaR would have been lower for the years ended:December 31, 2025December 31, 2024CIB trading VaR by risk type: Fixed income$(1)$(3)CIB trading VaR(2)(3)CIB VaR(1)(3)Total VaR(1)(2) Amounts by which reported average VaR would have been lower for the years ended: 2025 compared with 2024Average Total VaR decreased by $7 million for the year ended December 31, 2025 when compared with the prior year driven by decreased exposure to Visa Class C common shares in Corporate VaR and market volatility rolling out of the one-year historical look-back period in the foreign exchange and fixed income risk types. This decrease was predominantly offset by increased risk exposure in the commodities and equities risk types. --- ## Modified Risk: 2025 compared with 2024 **Key changes:** - Updated: "Compensation expense increased driven by: •growth in the number of employees, primarily front office employees, and •higher revenue-related compensation, predominantly in CIB and AWM." **Prior (2025):** Compensation expense increased driven by: •higher revenue-related compensation across the LOBs, •growth in the number of employees across the LOBs and Corporate, primarily in front office and technology, and •the impact of First Republic, predominantly in CCB, reflecting timing and the classification of the prior-year expense, which was recognized in other expense in Corporate in the second quarter of 2023 as the individuals associated with First Republic were not employees of the Firm until July 2023. Noncompensation expense decreased as a result of: •lower FDIC-related expense recognized in Corporate, which included the impact of a $2.9 billion special assessment recognized in the fourth quarter of 2023, compared with a $725 million increase to the FDIC special assessment recognized in the first quarter of 2024, and •lower legal expense, reflecting the net impact of declines in CCB, CIB and Corporate, and an increase in AWM, predominantly offset by •a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024 in Corporate, •higher investments in technology in the businesses, as well as marketing, predominantly in CCB,•higher occupancy expense, which included the impact of net additions to the Firm's properties,•higher distribution fees in AWM and brokerage expense in CIB, and•the timing impact associated with First Republic, offset by the alignment of expense to compensation expense, as noted above.Refer to Notes 2 and 6 for additional information on Visa shares; Note 6 for additional information on other expense; and Note 34 for additional information on the First Republic acquisition.Income tax expenseYear ended December 31,(in millions, except rate)202420232022Income before income tax expense$75,081$61,612$46,166Income tax expense16,610(a)12,0608,490Effective tax rate22.1 %19.6 %18.4 %(a)Effective January 1, 2024, as a result of adopting updates to the Accounting for Investments in Tax Credit Structures guidance, the amortization of certain of the Firm's alternative energy tax-oriented investments is now recognized in income tax expense. Refer to Notes 1, 6, 14 and 25 for additional information.2024 compared with 2023 The effective tax rate increased predominantly driven by:•the adoption of updates to the Accounting for Investments in Tax Credit Structures guidance on January 1, 2024, and•a higher level of pretax income and changes in the mix of income and expenses subject to U.S. federal, state and local taxes, including the impact of the net gain on Visa shares and the contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024.The prior year included the impact to income tax expense associated with the First Republic acquisition that was reflected in the estimated bargain purchase gain, and an income tax benefit related to the finalization of certain income tax regulations, both of which resulted in a reduction in the Firm's effective tax rate.Refer to Note 25 for additional information. •higher investments in technology in the businesses, as well as marketing, predominantly in CCB, •higher occupancy expense, which included the impact of net additions to the Firm's properties, •higher distribution fees in AWM and brokerage expense in CIB, and •the timing impact associated with First Republic, offset by the alignment of expense to compensation expense, as noted above. Refer to Notes 2 and 6 for additional information on Visa shares; Note 6 for additional information on other expense; and Note 34 for additional information on the First Republic acquisition. Income tax expenseYear ended December 31,(in millions, except rate)202420232022Income before income tax expense$75,081$61,612$46,166Income tax expense16,610(a)12,0608,490Effective tax rate22.1 %19.6 %18.4 % Income before income tax expense (a) (a)Effective January 1, 2024, as a result of adopting updates to the Accounting for Investments in Tax Credit Structures guidance, the amortization of certain of the Firm's alternative energy tax-oriented investments is now recognized in income tax expense. Refer to Notes 1, 6, 14 and 25 for additional information. **Current (2026):** Compensation expense increased driven by: •growth in the number of employees, primarily front office employees, and •higher revenue-related compensation, predominantly in CIB and AWM. Noncompensation expense increased, primarily reflecting: •higher brokerage expense in CIB and higher distribution fees in AWM, •higher depreciation expense on higher auto operating lease assets in CCB, •higher investments in technology across the LOBs and Corporate and in marketing in CCB, and •higher occupancy expense, reflecting net additions and improvements to the Firm's properties, including its new headquarters, bank branches and other corporate offices, partially offset by •lower FDIC-related expense driven by releases of FDIC special assessment accruals of $763 million in Corporate, compared with an accrual increase of $725 million in the first quarter of the prior year, and •the absence in Corporate of the following items recorded in the prior year-a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation, and-restructuring and integration costs associated with First Republic.Refer to Note 6 for additional information on FDIC-related expense and Visa shares, and Note 34 for additional information on the First Republic acquisition.Income tax expenseYear ended December 31,(in millions, except rate)202520242023Income before income tax expense$72,595$75,081$61,612Income tax expense15,54716,610(a)12,060Effective tax rate21.4 %22.1 %19.6 %(a)Effective January 1, 2024, as a result of adopting updates to the Accounting for Investments in Tax Credit Structures guidance, the amortization of certain of the Firm's alternative energy tax-oriented investments is now recognized in income tax expense. Refer to Notes 1, 6, 14 and 25 for additional information.2025 compared with 2024 The effective tax rate decreased driven by:•a $774 million income tax benefit in Corporate recorded in the second quarter of 2025, driven by the resolution of certain tax audits and the impact of tax regulations related to foreign currency translation gains and losses finalized in 2024 and effective for 2025, and•higher tax benefits related to the vesting of employee share-based awards,partially offset by•other changes in the level and mix of income and expenses subject to U.S. federal, state and local taxes, and•lower benefits associated with other tax audits.Refer to Note 25 for additional information. •the absence in Corporate of the following items recorded in the prior year -a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation, and -restructuring and integration costs associated with First Republic. Refer to Note 6 for additional information on FDIC-related expense and Visa shares, and Note 34 for additional information on the First Republic acquisition. Income tax expenseYear ended December 31,(in millions, except rate)202520242023Income before income tax expense$72,595$75,081$61,612Income tax expense15,54716,610(a)12,060Effective tax rate21.4 %22.1 %19.6 % Income before income tax expense (a) (a)Effective January 1, 2024, as a result of adopting updates to the Accounting for Investments in Tax Credit Structures guidance, the amortization of certain of the Firm's alternative energy tax-oriented investments is now recognized in income tax expense. Refer to Notes 1, 6, 14 and 25 for additional information. --- ## Modified Risk: Glossary of Terms and Acronyms **Key changes:** - Updated: "TBVPS: Tangible book value per shareTCE: Tangible common equityTLAC: Total Loss Absorbing Capacity U.K.: United Kingdom Unaudited: Financial statements and/or information that have not been subject to auditing procedures by an independent registered public accounting firm.U.S.: United States of America U.S." - Updated: "Department of Veterans Affairs VaR "Value-at-risk" is a measure of the dollar amount of potential loss from adverse market moves in an ordinary market environment." - Updated: "Department of Veterans Affairs VaR "Value-at-risk" is a measure of the dollar amount of potential loss from adverse market moves in an ordinary market environment." - Updated: "Department of Veterans Affairs VaR "Value-at-risk" is a measure of the dollar amount of potential loss from adverse market moves in an ordinary market environment." - Updated: "Weighted-average macroeconomic outlook: Refers to the forecast of macroeconomic conditions used by the Firm in its models to estimate credit losses which reflects the weighted average results of the five internally-developed macroeconomic scenarios over an eight-quarter forecast period and incorporates macroeconomic variables and any qualitative adjustments (such as changes in the weight placed on an upside or adverse scenario)." **Prior (2025):** SAR(s) as it pertains to employee stock awards: Stock appreciation rights SCB: Stress capital bufferScored portfolios: Consumer loan portfolios that predominantly include residential real estate loans, credit card loans, auto loans to individuals and certain small business loans. SEC: U.S. Securities and Exchange Commission Securities financing agreements: Include resale, repurchase, securities borrowed and securities loaned agreements Securitized Products Group: Comprised of Securitized Products and tax-oriented investments.Seed capital: Initial JPMorgan capital invested in products, such as mutual funds, with the intention of ensuring the fund is of sufficient size to represent a viable offering to clients, enabling pricing of its shares, and allowing the manager to develop a track record. After these goals are achieved, the intent is to remove the Firm's capital from the investment.Shelf securities: Securities registered with the SEC under a shelf registration statement that have not been issued, offered or sold. These securities are not included in league tables until they have actually been issued.Single-name: Single reference-entitiesSLR: Supplementary leverage ratio SMBS: Stripped mortgage-backed securities SOFR: Secured Overnight Financing RateSPEs: Special purpose entities Structural interest rate risk: Represents interest rate risk of the non-trading assets and liabilities of the Firm.Structured notes: Structured notes are financial instruments whose cash flows are linked to the movement in one or more indexes, interest rates, foreign exchange rates, commodities prices, prepayment rates, underlying reference pool of loans or other market variables. The notes typically contain embedded (but not separable or detachable) derivatives. Contractual cash flows for principal, interest, or both can vary in amount and timing throughout the life of the note based on non-traditional indexes or non-traditional uses of traditional interest rates or indexes. Suspended foreclosures: Loans referred to foreclosure where formal foreclosure proceedings have started but are currently on hold, which could be due to bankruptcy or loss mitigation. Includes both judicial and non-judicial states. Taxable-equivalent basis: In presenting results on a managed basis, the total net revenue for each of the reportable business segments and Corporate, and the Firm as a whole, is presented on a tax-equivalent basis. Accordingly, revenue from investments that receive tax credits and tax-exempt securities is presented in managed basis results on a level comparable to taxable investments and securities; the corresponding income tax impact related to tax-exempt items is recorded within income tax expense.TBVPS: Tangible book value per shareTCE: Tangible common equityTDR: "Troubled debt restructuring" applies to loan modifications granted prior to January 1, 2023 and is deemed to occur when the Firm modifies the original terms of a loan agreement by granting a concession to a borrower that is experiencing financial difficulty. Loans with short-term and other insignificant modifications that are not considered concessions are not TDRs.TLAC: Total Loss Absorbing Capacity U.K.: United Kingdom Unaudited: Financial statements and/or information that have not been subject to auditing procedures by an independent registered public accounting firm.U.S.: United States of America U.S. GAAP: Accounting principles generally accepted in the U.S. U.S. government agencies: U.S. government agencies include, but are not limited to, agencies such as Ginnie Mae and FHA, and do not include Fannie Mae and Freddie Mac which are U.S. government-sponsored enterprises ("U.S. GSEs"). In general, obligations of U.S. government agencies are fully and explicitly guaranteed as to the timely payment of principal and interest by the full faith and credit of the U.S. government in the event of a default.U.S. GSE(s): "U.S. government-sponsored enterprises" are quasi-governmental, privately-held entities established or chartered by the U.S. government to serve public purposes as specified by the U.S. Congress to improve the flow of credit to specific sectors of the economy and provide certain essential services to the public. U.S. GSEs include Fannie Mae and Freddie Mac, but do not include Ginnie Mae or FHA. U.S. GSE obligations are not explicitly guaranteed as to the timely payment of principal and interest by the full faith and credit of the U.S. government. U.S. Treasury: U.S. Department of the TreasuryVA: U.S. Department of Veterans Affairs VaR: "Value-at-risk" is a measure of the dollar amount of potential loss from adverse market moves in an ordinary market environment. VCG: Valuation Control Group VGF: Valuation Governance Forum VIEs: Variable interest entities Warehouse loans: Consist of prime mortgages originated with the intent to sell that are accounted for at fair value and classified as loans. SAR(s) as it pertains to employee stock awards: Stock appreciation rights SCB: Stress capital bufferScored portfolios: Consumer loan portfolios that predominantly include residential real estate loans, credit card loans, auto loans to individuals and certain small business loans. SEC: U.S. Securities and Exchange Commission Securities financing agreements: Include resale, repurchase, securities borrowed and securities loaned agreements Securitized Products Group: Comprised of Securitized Products and tax-oriented investments.Seed capital: Initial JPMorgan capital invested in products, such as mutual funds, with the intention of ensuring the fund is of sufficient size to represent a viable offering to clients, enabling pricing of its shares, and allowing the manager to develop a track record. After these goals are achieved, the intent is to remove the Firm's capital from the investment.Shelf securities: Securities registered with the SEC under a shelf registration statement that have not been issued, offered or sold. These securities are not included in league tables until they have actually been issued.Single-name: Single reference-entitiesSLR: Supplementary leverage ratio SMBS: Stripped mortgage-backed securities SOFR: Secured Overnight Financing RateSPEs: Special purpose entities Structural interest rate risk: Represents interest rate risk of the non-trading assets and liabilities of the Firm.Structured notes: Structured notes are financial instruments whose cash flows are linked to the movement in one or more indexes, interest rates, foreign exchange rates, commodities prices, prepayment rates, underlying reference pool of loans or other market variables. The notes typically contain embedded (but not separable or detachable) derivatives. Contractual cash flows for principal, interest, or both can vary in amount and timing throughout the life of the note based on non-traditional indexes or non-traditional uses of traditional interest rates or indexes. Suspended foreclosures: Loans referred to foreclosure where formal foreclosure proceedings have started but are currently on hold, which could be due to bankruptcy or loss mitigation. Includes both judicial and non-judicial states. Taxable-equivalent basis: In presenting results on a managed basis, the total net revenue for each of the reportable business segments and Corporate, and the Firm as a whole, is presented on a tax-equivalent basis. Accordingly, revenue from investments that receive tax SAR(s) as it pertains to employee stock awards: Stock appreciation rights SCB: Stress capital buffer Scored portfolios: Consumer loan portfolios that predominantly include residential real estate loans, credit card loans, auto loans to individuals and certain small business loans. SEC: U.S. Securities and Exchange Commission Securities financing agreements: Include resale, repurchase, securities borrowed and securities loaned agreements Securitized Products Group: Comprised of Securitized Products and tax-oriented investments. Seed capital: Initial JPMorgan capital invested in products, such as mutual funds, with the intention of ensuring the fund is of sufficient size to represent a viable offering to clients, enabling pricing of its shares, and allowing the manager to develop a track record. After these goals are achieved, the intent is to remove the Firm's capital from the investment. Shelf securities: Securities registered with the SEC under a shelf registration statement that have not been issued, offered or sold. These securities are not included in league tables until they have actually been issued. Single-name: Single reference-entities SLR: Supplementary leverage ratio SMBS: Stripped mortgage-backed securities SOFR: Secured Overnight Financing Rate SPEs: Special purpose entities Structural interest rate risk: Represents interest rate risk of the non-trading assets and liabilities of the Firm. Structured notes: Structured notes are financial instruments whose cash flows are linked to the movement in one or more indexes, interest rates, foreign exchange rates, commodities prices, prepayment rates, underlying reference pool of loans or other market variables. The notes typically contain embedded (but not separable or detachable) derivatives. Contractual cash flows for principal, interest, or both can vary in amount and timing throughout the life of the note based on non-traditional indexes or non-traditional uses of traditional interest rates or indexes. Suspended foreclosures: Loans referred to foreclosure where formal foreclosure proceedings have started but are currently on hold, which could be due to bankruptcy or loss mitigation. Includes both judicial and non-judicial states. Taxable-equivalent basis: In presenting results on a managed basis, the total net revenue for each of the reportable business segments and Corporate, and the Firm as a whole, is presented on a tax-equivalent basis. Accordingly, revenue from investments that receive tax credits and tax-exempt securities is presented in managed basis results on a level comparable to taxable investments and securities; the corresponding income tax impact related to tax-exempt items is recorded within income tax expense.TBVPS: Tangible book value per shareTCE: Tangible common equityTDR: "Troubled debt restructuring" applies to loan modifications granted prior to January 1, 2023 and is deemed to occur when the Firm modifies the original terms of a loan agreement by granting a concession to a borrower that is experiencing financial difficulty. Loans with short-term and other insignificant modifications that are not considered concessions are not TDRs.TLAC: Total Loss Absorbing Capacity U.K.: United Kingdom Unaudited: Financial statements and/or information that have not been subject to auditing procedures by an independent registered public accounting firm.U.S.: United States of America U.S. GAAP: Accounting principles generally accepted in the U.S. U.S. government agencies: U.S. government agencies include, but are not limited to, agencies such as Ginnie Mae and FHA, and do not include Fannie Mae and Freddie Mac which are U.S. government-sponsored enterprises ("U.S. GSEs"). In general, obligations of U.S. government agencies are fully and explicitly guaranteed as to the timely payment of principal and interest by the full faith and credit of the U.S. government in the event of a default.U.S. GSE(s): "U.S. government-sponsored enterprises" are quasi-governmental, privately-held entities established or chartered by the U.S. government to serve public purposes as specified by the U.S. Congress to improve the flow of credit to specific sectors of the economy and provide certain essential services to the public. U.S. GSEs include Fannie Mae and Freddie Mac, but do not include Ginnie Mae or FHA. U.S. GSE obligations are not explicitly guaranteed as to the timely payment of principal and interest by the full faith and credit of the U.S. government. U.S. Treasury: U.S. Department of the TreasuryVA: U.S. Department of Veterans Affairs VaR: "Value-at-risk" is a measure of the dollar amount of potential loss from adverse market moves in an ordinary market environment. VCG: Valuation Control Group VGF: Valuation Governance Forum VIEs: Variable interest entities Warehouse loans: Consist of prime mortgages originated with the intent to sell that are accounted for at fair value and classified as loans. credits and tax-exempt securities is presented in managed basis results on a level comparable to taxable investments and securities; the corresponding income tax impact related to tax-exempt items is recorded within income tax expense. TBVPS: Tangible book value per share TCE: Tangible common equity TDR: "Troubled debt restructuring" applies to loan modifications granted prior to January 1, 2023 and is deemed to occur when the Firm modifies the original terms of a loan agreement by granting a concession to a borrower that is experiencing financial difficulty. Loans with short-term and other insignificant modifications that are not considered concessions are not TDRs. TLAC: Total Loss Absorbing Capacity U.K.: United Kingdom Unaudited: Financial statements and/or information that have not been subject to auditing procedures by an independent registered public accounting firm. U.S.: United States of America U.S. GAAP: Accounting principles generally accepted in the U.S. U.S. government agencies: U.S. government agencies include, but are not limited to, agencies such as Ginnie Mae and FHA, and do not include Fannie Mae and Freddie Mac which are U.S. government-sponsored enterprises ("U.S. GSEs"). In general, obligations of U.S. government agencies are fully and explicitly guaranteed as to the timely payment of principal and interest by the full faith and credit of the U.S. government in the event of a default. U.S. GSE(s): "U.S. government-sponsored enterprises" are quasi-governmental, privately-held entities established or chartered by the U.S. government to serve public purposes as specified by the U.S. Congress to improve the flow of credit to specific sectors of the economy and provide certain essential services to the public. U.S. GSEs include Fannie Mae and Freddie Mac, but do not include Ginnie Mae or FHA. U.S. GSE obligations are not explicitly guaranteed as to the timely payment of principal and interest by the full faith and credit of the U.S. government. U.S. Treasury: U.S. Department of the Treasury VA: U.S. Department of Veterans Affairs VaR: "Value-at-risk" is a measure of the dollar amount of potential loss from adverse market moves in an ordinary market environment. VCG: Valuation Control Group VGF: Valuation Governance Forum VIEs: Variable interest entities Warehouse loans: Consist of prime mortgages originated with the intent to sell that are accounted for at fair value and classified as loans. JPMorgan Chase & Co./2024 Form 10-K333 JPMorgan Chase & Co./2024 Form 10-K333 JPMorgan Chase & Co./2024 Form 10-K333 JPMorgan Chase & Co./2024 Form 10-K 333 Signatures Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on behalf of the undersigned, thereunto duly authorized. JPMorgan Chase & Co. (Registrant) By: /s/ JAMES DIMON (James Dimon Chairman and Chief Executive Officer)February 14, 2025 By: /s/ JAMES DIMON Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacity and on the date indicated. JPMorgan Chase & Co. does not exercise the power of attorney to sign on behalf of any Director. CapacityDate/s/ JAMES DIMONDirector, Chairman and Chief Executive Officer(Principal Executive Officer) (James Dimon) /s/ LINDA B. BAMMANNDirector(Linda B. Bammann)/s/ STEPHEN B. BURKEDirector (Stephen B. Burke)/s/ TODD A. COMBSDirector (Todd A. Combs) /s/ ALICIA BOLER DAVISDirector (Alicia Boler Davis)/s/ ALEX GORSKYDirectorFebruary 14, 2025(Alex Gorsky)/s/ MELLODY HOBSONDirector (Mellody Hobson) /s/ PHEBE N. NOVAKOVICDirector(Phebe N. Novakovic)/s/ VIRGINIA M. ROMETTYDirector(Virginia M. Rometty)/s/ BRAD D. SMITHDirector(Brad D. Smith)/s/ MARK A. WEINBERGERDirector(Mark A. Weinberger)/s/ JEREMY BARNUMExecutive Vice President and Chief Financial Officer(Jeremy Barnum)(Principal Financial Officer)/s/ ELENA KORABLINAManaging Director and Firmwide Controller(Elena Korablina)(Principal Accounting Officer) /s/ JAMES DIMON /s/ LINDA B. BAMMANN /s/ STEPHEN B. BURKE /s/ TODD A. COMBS /s/ ALICIA BOLER DAVIS (Alicia Boler Davis) /s/ ALEX GORSKY /s/ MELLODY HOBSON /s/ PHEBE N. NOVAKOVIC /s/ VIRGINIA M. ROMETTY /s/ BRAD D. SMITH (Brad D. Smith) /s/ MARK A. WEINBERGER (Mark A. Weinberger) /s/ JEREMY BARNUM /s/ ELENA KORABLINA 334JPMorgan Chase & Co./2024 Form 10-K 334JPMorgan Chase & Co./2024 Form 10-K 334JPMorgan Chase & Co./2024 Form 10-K 334 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** TBVPS: Tangible book value per shareTCE: Tangible common equityTLAC: Total Loss Absorbing Capacity U.K.: United Kingdom Unaudited: Financial statements and/or information that have not been subject to auditing procedures by an independent registered public accounting firm.U.S.: United States of America U.S. GAAP: Accounting principles generally accepted in the U.S. U.S. government agencies: U.S. government agencies include, but are not limited to, agencies such as Ginnie Mae and FHA, and do not include Fannie Mae and Freddie Mac which are U.S. government-sponsored enterprises ("U.S. GSEs"). In general, obligations of U.S. government agencies are fully and explicitly guaranteed as to the timely payment of principal and interest by the full faith and credit of the U.S. government in the event of a default.U.S. GSE(s): "U.S. government-sponsored enterprises" are quasi-governmental, privately-held entities established or chartered by the U.S. government to serve public purposes as specified by the U.S. Congress to improve the flow of credit to specific sectors of the economy and provide certain essential services to the public. U.S. GSEs include Fannie Mae and Freddie Mac, but do not include Ginnie Mae or FHA. U.S. GSE obligations are not explicitly guaranteed as to the timely payment of principal and interest by the full faith and credit of the U.S. government. U.S. Treasury: U.S. Department of the TreasuryVA: U.S. Department of Veterans Affairs VaR "Value-at-risk" is a measure of the dollar amount of potential loss from adverse market moves in an ordinary market environment. VCG: Valuation Control Group VGF: Valuation Governance Forum VIEs: Variable interest entities Warehouse loans: Consist of prime mortgages originated with the intent to sell that are accounted for at fair value and classified as loans.Weighted-average macroeconomic outlook: Refers to the forecast of macroeconomic conditions used by the Firm in its models to estimate credit losses which reflects the weighted average results of the five internally-developed macroeconomic scenarios over an eight-quarter forecast period and incorporates macroeconomic variables and any qualitative adjustments (such as changes in the weight placed on an upside or adverse scenario). TBVPS: Tangible book value per shareTCE: Tangible common equityTLAC: Total Loss Absorbing Capacity U.K.: United Kingdom Unaudited: Financial statements and/or information that have not been subject to auditing procedures by an independent registered public accounting firm.U.S.: United States of America U.S. GAAP: Accounting principles generally accepted in the U.S. U.S. government agencies: U.S. government agencies include, but are not limited to, agencies such as Ginnie Mae and FHA, and do not include Fannie Mae and Freddie Mac which are U.S. government-sponsored enterprises ("U.S. GSEs"). In general, obligations of U.S. government agencies are fully and explicitly guaranteed as to the timely payment of principal and interest by the full faith and credit of the U.S. government in the event of a default.U.S. GSE(s): "U.S. government-sponsored enterprises" are quasi-governmental, privately-held entities established or chartered by the U.S. government to serve public purposes as specified by the U.S. Congress to improve the flow of credit to specific sectors of the economy and provide certain essential services to the public. U.S. GSEs include Fannie Mae and Freddie Mac, but do not include Ginnie Mae or FHA. U.S. GSE obligations are not explicitly guaranteed as to the timely payment of principal and interest by the full faith and credit of the U.S. government. U.S. Treasury: U.S. Department of the TreasuryVA: U.S. Department of Veterans Affairs VaR "Value-at-risk" is a measure of the dollar amount of potential loss from adverse market moves in an ordinary market environment. VCG: Valuation Control Group VGF: Valuation Governance Forum VIEs: Variable interest entities Warehouse loans: Consist of prime mortgages originated with the intent to sell that are accounted for at fair value and classified as loans.Weighted-average macroeconomic outlook: Refers to the forecast of macroeconomic conditions used by the Firm in its models to estimate credit losses which reflects the weighted average results of the five internally-developed macroeconomic scenarios over an eight-quarter forecast period and incorporates macroeconomic variables and any qualitative adjustments (such as changes in the weight placed on an upside or adverse scenario). TBVPS: Tangible book value per share TCE: Tangible common equity TLAC: Total Loss Absorbing Capacity U.K.: United Kingdom Unaudited: Financial statements and/or information that have not been subject to auditing procedures by an independent registered public accounting firm. U.S.: United States of America U.S. GAAP: Accounting principles generally accepted in the U.S. U.S. government agencies: U.S. government agencies include, but are not limited to, agencies such as Ginnie Mae and FHA, and do not include Fannie Mae and Freddie Mac which are U.S. government-sponsored enterprises ("U.S. GSEs"). In general, obligations of U.S. government agencies are fully and explicitly guaranteed as to the timely payment of principal and interest by the full faith and credit of the U.S. government in the event of a default. U.S. GSE(s): "U.S. government-sponsored enterprises" are quasi-governmental, privately-held entities established or chartered by the U.S. government to serve public purposes as specified by the U.S. Congress to improve the flow of credit to specific sectors of the economy and provide certain essential services to the public. U.S. GSEs include Fannie Mae and Freddie Mac, but do not include Ginnie Mae or FHA. U.S. GSE obligations are not explicitly guaranteed as to the timely payment of principal and interest by the full faith and credit of the U.S. government. U.S. Treasury: U.S. Department of the Treasury VA: U.S. Department of Veterans Affairs VaR "Value-at-risk" is a measure of the dollar amount of potential loss from adverse market moves in an ordinary market environment. VCG: Valuation Control Group VGF: Valuation Governance Forum VIEs: Variable interest entities Warehouse loans: Consist of prime mortgages originated with the intent to sell that are accounted for at fair value and classified as loans. Weighted-average macroeconomic outlook: Refers to the forecast of macroeconomic conditions used by the Firm in its models to estimate credit losses which reflects the weighted average results of the five internally-developed macroeconomic scenarios over an eight-quarter forecast period and incorporates macroeconomic variables and any qualitative adjustments (such as changes in the weight placed on an upside or adverse scenario). JPMorgan Chase & Co./2025 Form 10-K327 JPMorgan Chase & Co./2025 Form 10-K327 JPMorgan Chase & Co./2025 Form 10-K327 JPMorgan Chase & Co./2025 Form 10-K 327 Signatures Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on behalf of the undersigned, thereunto duly authorized. JPMorgan Chase & Co. (Registrant) By: /s/ JAMES DIMON (James Dimon Chairman and Chief Executive Officer)February 13, 2026 By: /s/ JAMES DIMON Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacity and on the date indicated. JPMorgan Chase & Co. does not exercise the power of attorney to sign on behalf of any Director. CapacityDate/s/ JAMES DIMONDirector, Chairman and Chief Executive Officer(Principal Executive Officer) (James Dimon) /s/ LINDA B. BAMMANNDirector(Linda B. Bammann)/s/ MICHELE G. BUCKDirector (Michele G. Buck)/s/ STEPHEN B. BURKEDirector(Stephen B. Burke)/s/ ALICIA BOLER DAVISDirector (Alicia Boler Davis)/s/ ALEX GORSKYDirectorFebruary 13, 2026(Alex Gorsky)/s/ MELLODY HOBSONDirector (Mellody Hobson) /s/ PHEBE N. NOVAKOVICDirector(Phebe N. Novakovic)/s/ VIRGINIA M. ROMETTYDirector(Virginia M. Rometty)/s/ BRAD D. SMITHDirector(Brad D. Smith)/s/ MARK A. WEINBERGERDirector(Mark A. Weinberger)/s/ JEREMY BARNUMExecutive Vice President and Chief Financial Officer(Jeremy Barnum)(Principal Financial Officer)/s/ ELENA KORABLINAManaging Director and Firmwide Controller(Elena Korablina)(Principal Accounting Officer) /s/ JAMES DIMON /s/ LINDA B. BAMMANN /s/ MICHELE G. BUCK (Michele G. Buck) /s/ STEPHEN B. BURKE /s/ ALICIA BOLER DAVIS (Alicia Boler Davis) /s/ ALEX GORSKY /s/ MELLODY HOBSON /s/ PHEBE N. NOVAKOVIC /s/ VIRGINIA M. ROMETTY /s/ BRAD D. SMITH (Brad D. Smith) /s/ MARK A. WEINBERGER (Mark A. Weinberger) /s/ JEREMY BARNUM /s/ ELENA KORABLINA 328JPMorgan Chase & Co./2025 Form 10-K 328JPMorgan Chase & Co./2025 Form 10-K 328JPMorgan Chase & Co./2025 Form 10-K 328 JPMorgan Chase & Co./2025 Form 10-K --- ## Modified Risk: Loans due after one year at variable interest rates(a) **Key changes:** - Updated: "The following table presents net charge-offs/recoveries, average retained loans and net charge-off/recovery rate by loan class for the years ended December 31, 2025 and 2024." **Prior (2025):** (a)Includes loans that have an initial fixed interest rate that resets to a variable rate as the variable rate will be the prevailing rate over the life of the loan. (b)Includes loans held-for-sale, demand loans and overdrafts. The following table presents net charge-offs/recoveries, average retained loans and net charge-off/recovery rate by loan class for the years ended December 31, 2024 and 2023. Year ended December 31,Secured by real estateCommercial and industrialOtherTotal(in millions, except ratios)20242023202420232024202320242023Net charge-offs/(recoveries)$313 $178 $381 $370 $128 $331 $822 $879 Average retained loans 162,653 151,214 169,363 170,503 341,294 325,158 673,310 646,875 Net charge-off/(recovery) rate0.19 %0.12 %0.22 %0.22 %0.04 %0.10 %0.12 %0.14 % JPMorgan Chase & Co./2024 Form 10-K133 JPMorgan Chase & Co./2024 Form 10-K133 JPMorgan Chase & Co./2024 Form 10-K133 JPMorgan Chase & Co./2024 Form 10-K 133 **Current (2026):** (a)Includes loans that have an initial fixed interest rate that resets to a variable rate as the variable rate will be the prevailing rate over the life of the loan. (b)Includes loans held-for-sale, demand loans and overdrafts. The following table presents net charge-offs/recoveries, average retained loans and net charge-off/recovery rate by loan class for the years ended December 31, 2025 and 2024. Year ended December 31, (in millions, except ratios)Secured by real estateCommercial and industrialOtherTotal20252024202520242025202420252024Net charge-offs/(recoveries)$390 $313 $882 $381 $326 $128 $1,598 $822 Average retained loans 162,567 162,653 169,149 169,363 401,077 341,294 732,793 673,310 Net charge-off/(recovery) rate0.24 %0.19 %0.52 %0.22 %0.08 %0.04 %0.22 %0.12 % Year ended December 31, (in millions, except ratios) JPMorgan Chase & Co./2025 Form 10-K125 JPMorgan Chase & Co./2025 Form 10-K125 JPMorgan Chase & Co./2025 Form 10-K125 JPMorgan Chase & Co./2025 Form 10-K 125 --- ## Modified Risk: Loan delinquency **Key changes:** - Updated: "Current and less than 30 days past due and still accruing As of or for the year ended December 31, 2024 (in millions, except ratios)Within the revolving periodConverted to term loansTotalLoan delinquencyCurrent and less than 30 days past due and still accruing$226,532 $1,284 $227,816 30-89 days past due and still accruing2,291 109 2,400 90 or more days past due and still accruing2,591 53 2,644 Total retained loans$231,414 $1,446 $232,860 Loan delinquency ratios% of 30+ days past due to total retained loans2.11 %11.20 %2.17 %% of 90+ days past due to total retained loans1.12 3.67 1.14 Gross charge-offs$7,951 $247 $8,198 As of or for the year ended December 31, 2024 (in millions, except ratios)" **Prior (2025):** (in millions, except ratios)December 31, 2023Within the revolving periodConverted to term loansTotalLoan delinquencyCurrent and less than 30 days past dueand still accruing$205,731 $882 $206,613 30-89 days past due and still accruing2,217 84 2,301 90 or more days past due and still accruing2,169 40 2,209 Total retained loans$210,117 $1,006 $211,123 Loan delinquency ratios% of 30+ days past due to total retained loans2.09 %12.33 %2.14 %% of 90+ days past due to total retained loans1.03 3.98 1.05 Gross charge-offs$5,325 $166 $5,491 (in millions, except ratios) **Current (2026):** Current and less than 30 days past due and still accruing As of or for the year ended December 31, 2024 (in millions, except ratios)Within the revolving periodConverted to term loansTotalLoan delinquencyCurrent and less than 30 days past due and still accruing$226,532 $1,284 $227,816 30-89 days past due and still accruing2,291 109 2,400 90 or more days past due and still accruing2,591 53 2,644 Total retained loans$231,414 $1,446 $232,860 Loan delinquency ratios% of 30+ days past due to total retained loans2.11 %11.20 %2.17 %% of 90+ days past due to total retained loans1.12 3.67 1.14 Gross charge-offs$7,951 $247 $8,198 As of or for the year ended December 31, 2024 (in millions, except ratios) --- ## Modified Risk: Securitization-related(a) **Key changes:** - Updated: "Commercial and other(b) Principal amount outstandingJPMorganChase interest in securitized assets in nonconsolidated VIEs(c)(d)(e)December 31, 2024(in millions)Total assets held by securitization VIEsAssets held in consolidated securitization VIEsAssets held in nonconsolidated securitization VIEs with continuing involvementTrading assets Investment securitiesOther financial assetsTotal interests held by JPMorganChaseSecuritization-related(a)Residential mortgage:Prime/Alt-A and option ARMs$71,085 $615 $50,846 $613 $1,850 $614 $3,077 Subprime8,824 - 1,847 44 19 - 63 Commercial and other(b)186,293 243 125,510 530 5,768 1,074 7,372 Total$266,202 $858 $178,203 $1,187 $7,637 $1,688 $10,512 JPMorganChase interest in securitized assets in nonconsolidated VIEs(c)(d)(e)" **Prior (2025):** Commercial and other(b) Principal amount outstandingJPMorganChase interest in securitized assets in nonconsolidated VIEs(c)(d)(e)December 31, 2023(in millions)Total assets held by securitization VIEsAssets held in consolidated securitization VIEsAssets held in nonconsolidated securitization VIEs with continuing involvementTrading assets Investment securitiesOther financial assetsTotal interests held by JPMorganChaseSecuritization-related(a)Residential mortgage:Prime/Alt-A and option ARMs$58,570 $675 $39,319 $595 $1,981 $60 $2,636 Subprime8,881 - 1,312 3 - - 3 Commercial and other(b)168,042 - 120,262 831 5,638 1,354 7,823 Total$235,493 $675 $160,893 $1,429 $7,619 $1,414 $10,462 JPMorganChase interest in securitized assets in nonconsolidated VIEs(c)(d)(e) **Current (2026):** Commercial and other(b) Principal amount outstandingJPMorganChase interest in securitized assets in nonconsolidated VIEs(c)(d)(e)December 31, 2024(in millions)Total assets held by securitization VIEsAssets held in consolidated securitization VIEsAssets held in nonconsolidated securitization VIEs with continuing involvementTrading assets Investment securitiesOther financial assetsTotal interests held by JPMorganChaseSecuritization-related(a)Residential mortgage:Prime/Alt-A and option ARMs$71,085 $615 $50,846 $613 $1,850 $614 $3,077 Subprime8,824 - 1,847 44 19 - 63 Commercial and other(b)186,293 243 125,510 530 5,768 1,074 7,372 Total$266,202 $858 $178,203 $1,187 $7,637 $1,688 $10,512 JPMorganChase interest in securitized assets in nonconsolidated VIEs(c)(d)(e) --- ## Modified Risk: THREE-YEAR SUMMARY OF CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited) **Key changes:** - Updated: "As of or for the year ended December 31,(in millions, except per share, ratio, employee data and where otherwise noted)202520242023Selected income statement dataTotal net revenue$182,447 $177,556 (g)$158,104 Total noninterest expense95,640 91,797 (g)87,172 Pre-provision profit(a)86,807 85,759 70,932 Provision for credit losses14,212 (e)10,678 9,320 Income before income tax expense72,595 75,081 61,612 Income tax expense15,547 16,610 12,060 Net income$57,048 $58,471 $49,552 Earnings per share dataNet income: Basic$20.05 $19.79 $16.25 Diluted20.02 19.75 16.23 Average shares: Basic2,776.5 2,873.9 2,938.6 Diluted2,781.5 2,879.0 2,943.1 Market and per common share dataMarket capitalization868,793 670,618 489,320 Common shares at period-end2,696.2 2,797.6 2,876.6 Book value per share126.99 116.07 104.45 Tangible book value per share ("TBVPS")(a)107.56 97.30 86.08 Cash dividends declared per share5.80 4.80 4.10 Selected ratios and metricsReturn on common equity ("ROE")17 %18 %17 %Return on tangible common equity ("ROTCE")(a)20 22 21 Return on assets ("ROA")1.29 1.43 1.30 Overhead ratio52 52 55 Loans-to-deposits ratio58 56 55 Firm Liquidity coverage ratio ("LCR") (average)(b)111 113 113 JPMorgan Chase Bank, N.A." **Prior (2025):** As of or for the year ended December 31,(in millions, except per share, ratio, employee data and where otherwise noted)202420232022Selected income statement dataTotal net revenue$177,556 (e)$158,104 $128,695 Total noninterest expense91,797 (e)87,172 76,140 Pre-provision profit(a)85,759 70,932 52,555 Provision for credit losses10,678 9,320 6,389 Income before income tax expense75,081 61,612 46,166 Income tax expense16,610 12,060 8,490 Net income$58,471 $49,552 $37,676 Earnings per share dataNet income: Basic$19.79 $16.25 $12.10 Diluted19.75 16.23 12.09 Average shares: Basic2,873.9 2,938.6 2,965.8 Diluted2,879.0 2,943.1 2,970.0 Market and per common share dataMarket capitalization670,618 489,320 393,484 Common shares at period-end2,797.6 2,876.6 2,934.2 Book value per share116.07 104.45 90.29 Tangible book value per share ("TBVPS")(a)97.30 86.08 73.12 Cash dividends declared per share4.80 4.10 4.00 Selected ratios and metricsReturn on common equity ("ROE")18 %17 %14 %Return on tangible common equity ("ROTCE")(a)22 21 18 Return on assets ("ROA")1.43 1.30 0.98 Overhead ratio52 55 59 Loans-to-deposits ratio56 55 49 Firm Liquidity coverage ratio ("LCR") (average)(b)113 113 112 JPMorgan Chase Bank, N.A. LCR (average)(b)124 129 151 Common equity Tier 1 ("CET1") capital ratio(c)(d)15.7 15.0 13.2 Tier 1 capital ratio(c)(d)16.8 16.6 14.9 Total capital ratio(c)(d)18.5 18.5 16.8 Tier 1 leverage ratio(b)(c)7.2 7.2 6.6 Supplementary leverage ratio ("SLR")(b)(c)6.1 6.1 5.6 Selected balance sheet data (period-end)Trading assets$637,784 $540,607 $453,799 Investment securities, net of allowance for credit losses681,320 571,552 631,162 Loans1,347,988 1,323,706 1,135,647 Total assets4,002,814 3,875,393 3,665,743 Deposits2,406,032 2,400,688 2,340,179 Long-term debt401,418 391,825 295,865 Common stockholders' equity324,708 300,474 264,928 Total stockholders' equity344,758 327,878 292,332 Employees317,233 309,926 293,723 Credit quality metricsAllowances for credit losses$26,866 $24,765 $22,204 Allowance for loan losses to total retained loans1.87 %1.75 %1.81 %Nonperforming assets$9,300 $7,597 $7,247 Net charge-offs8,638 6,209 2,853 Net charge-off rate0.68 %0.52 %0.27 % As of or for the year ended December 31, (in millions, except per share, ratio, employee data and where otherwise noted) (e) (e) **Current (2026):** As of or for the year ended December 31,(in millions, except per share, ratio, employee data and where otherwise noted)202520242023Selected income statement dataTotal net revenue$182,447 $177,556 (g)$158,104 Total noninterest expense95,640 91,797 (g)87,172 Pre-provision profit(a)86,807 85,759 70,932 Provision for credit losses14,212 (e)10,678 9,320 Income before income tax expense72,595 75,081 61,612 Income tax expense15,547 16,610 12,060 Net income$57,048 $58,471 $49,552 Earnings per share dataNet income: Basic$20.05 $19.79 $16.25 Diluted20.02 19.75 16.23 Average shares: Basic2,776.5 2,873.9 2,938.6 Diluted2,781.5 2,879.0 2,943.1 Market and per common share dataMarket capitalization868,793 670,618 489,320 Common shares at period-end2,696.2 2,797.6 2,876.6 Book value per share126.99 116.07 104.45 Tangible book value per share ("TBVPS")(a)107.56 97.30 86.08 Cash dividends declared per share5.80 4.80 4.10 Selected ratios and metricsReturn on common equity ("ROE")17 %18 %17 %Return on tangible common equity ("ROTCE")(a)20 22 21 Return on assets ("ROA")1.29 1.43 1.30 Overhead ratio52 52 55 Loans-to-deposits ratio58 56 55 Firm Liquidity coverage ratio ("LCR") (average)(b)111 113 113 JPMorgan Chase Bank, N.A. LCR (average)(b)115 124 129 Common equity Tier 1 ("CET1") capital ratio - Standardized(c)(d)14.6 (f)15.7 15.0 Tier 1 capital ratio - Standardized(c)(d)15.5 (f)16.8 16.6 Total capital ratio - Standardized(c)(d)17.4 (f)18.5 18.5 Tier 1 leverage ratio(b)(c)6.9 7.2 7.2 Supplementary leverage ratio ("SLR")(b)(c)5.8 6.1 6.1 Selected balance sheet data (period-end)Trading assets$802,873 $637,784 $540,607 Investment securities, net of allowance for credit losses777,332 681,320 571,552 Loans1,493,429 1,347,988 1,323,706 Total assets4,424,900 4,002,814 3,875,393 Deposits2,559,320 2,406,032 2,400,688 Long-term debt435,206 401,418 391,825 Common stockholders' equity342,393 324,708 300,474 Total stockholders' equity362,438 344,758 327,878 Employees318,512 317,233 309,926 Credit quality metricsAllowances for credit losses$31,230 $26,866 $24,765 Allowance for loan losses to total retained loans1.83 %1.87 %1.75 %Nonperforming assets$10,359 $9,300 $7,597 Net charge-offs9,849 8,638 6,209 Net charge-off rate0.74 %0.68 %0.52 % As of or for the year ended December 31, (in millions, except per share, ratio, employee data and where otherwise noted) (g) (g) --- ## Modified Risk: Structured note products by balance sheet classification and risk component **Key changes:** - Updated: "December 31, 2025December 31, 2024(in millions)Long-term debtShort-term borrowingsDepositsTotalLong-term debtShort-term borrowingsDepositsTotalRisk exposureInterest rate$61,398 $3,273 $17,184 $81,855 $46,220 $1,065 $28,871 $76,156 Credit8,677 817 - 9,494 6,213 1,242 - 7,455 Foreign exchange2,617 606 448 3,671 2,309 1,058 416 3,783 Equity55,890 9,978 3,095 68,963 44,149 7,881 2,986 55,016 Commodity828 154 - (a)982 1,331 62 1 (a)1,394 Total structured notes$129,410 $14,828 $20,727 $164,965 $100,222 $11,308 $32,274 $143,804 (a) (a) (a)Excludes deposits linked to precious metals for which the fair value option has not been elected of $2.8 billion and $869 million for the years ended December 31, 2025 and 2024, respectively." **Prior (2025):** The following table presents the fair value of structured notes, by balance sheet classification and the primary risk type. December 31, 2024December 31, 2023(in millions)Long-term debtShort-term borrowingsDepositsTotalLong-term debtShort-term borrowingsDepositsTotalRisk exposureInterest rate$46,220 $1,065 $28,871 $76,156 $38,604 $654 $74,526 $113,784 Credit6,213 1,242 - 7,455 5,444 350 - 5,794 Foreign exchange2,309 1,058 416 3,783 2,605 941 187 3,733 Equity44,149 7,881 2,986 55,016 38,685 5,483 2,905 47,073 Commodity1,331 62 1 (a)1,394 1,862 11 1 (a)1,874 Total structured notes$100,222 $11,308 $32,274 $143,804 $87,200 $7,439 $77,619 $172,258 (a) (a) (a)Excludes deposits linked to precious metals for which the fair value option has not been elected of $869 million and $627 million for the years ended December 31, 2024 and 2023, respectively. 206JPMorgan Chase & Co./2024 Form 10-K 206JPMorgan Chase & Co./2024 Form 10-K 206JPMorgan Chase & Co./2024 Form 10-K 206 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** The following table presents the fair value of structured notes, by balance sheet classification and the primary risk type. December 31, 2025December 31, 2024(in millions)Long-term debtShort-term borrowingsDepositsTotalLong-term debtShort-term borrowingsDepositsTotalRisk exposureInterest rate$61,398 $3,273 $17,184 $81,855 $46,220 $1,065 $28,871 $76,156 Credit8,677 817 - 9,494 6,213 1,242 - 7,455 Foreign exchange2,617 606 448 3,671 2,309 1,058 416 3,783 Equity55,890 9,978 3,095 68,963 44,149 7,881 2,986 55,016 Commodity828 154 - (a)982 1,331 62 1 (a)1,394 Total structured notes$129,410 $14,828 $20,727 $164,965 $100,222 $11,308 $32,274 $143,804 (a) (a) (a)Excludes deposits linked to precious metals for which the fair value option has not been elected of $2.8 billion and $869 million for the years ended December 31, 2025 and 2024, respectively. JPMorgan Chase & Co./2025 Form 10-K199 JPMorgan Chase & Co./2025 Form 10-K199 JPMorgan Chase & Co./2025 Form 10-K199 JPMorgan Chase & Co./2025 Form 10-K 199 --- ## Modified Risk: JPMorganChase's ability to distribute capital to shareholders, and to support its business activities could be limited if it does not satisfy applicable regulatory capital requirements. **Key changes:** - Updated: "JPMorganChase is subject to various regulatory capital requirements, and the amount of capital that it is required to hold under those requirements could increase at any given time due to factors such as: 19 19 19 19 Part I Part I •actions by banking regulators, as well as changes in applicable law or how applicable law is implemented by banking regulators•changes in the composition of JPMorganChase's balance sheet or developments that could increase RWA, such as increased market risk, customer delinquencies, client credit rating downgrades or other factors, and•increases in estimated stress losses as determined by the Federal Reserve under CCAR, which could increase JPMorganChase's SCB.Although more likely in times of stress, JPMorganChase may use its regulatory capital buffers allowing capital ratios to decline below regulatory requirements, subjecting it to restrictions on capital distributions and discretionary bonus payments to its executive officers.Any failure by or inability of JPMorganChase to maintain the required level and composition of capital, any decision by JPMorgan Chase to use its regulatory buffers allowing capital ratios to decline below regulatory requirements or unfavorable changes in applicable capital requirements, could have an adverse impact on JPMorganChase's shareholders by:•reducing the amount of common stock that JPMorganChase is permitted to repurchase•requiring the issuance of, or prohibiting the redemption of, capital instruments in a manner inconsistent with JPMorganChase's capital management strategy•constraining the amount of dividends that can be paid on common stock, or•curtailing JPMorganChase's business activities or operations.OperationalJPMorganChase's businesses could be adversely affected by the failure or disruption of operational systems on which they depend.If the operational systems on which JPMorganChase's businesses depend, including those of acquired businesses and external parties, are unable to meet JPMorganChase's operational requirements or bank regulatory standards, or if they fail or have other significant shortcomings, JPMorganChase could be materially and adversely affected." **Prior (2025):** JPMorganChase is subject to various regulatory capital requirements, including leverage- and risk-based capital requirements. In addition, as a Global Systemically Important Bank ("GSIB"), JPMorganChase is required to hold additional capital buffers, including a GSIB surcharge, a Stress Capital Buffer ("SCB"), and a countercyclical buffer, each of which is reassessed at least annually. The amount of capital that JPMorganChase is required to hold in order to satisfy these leverage- and risk-based requirements could increase at any given time due to factors such as: •actions by banking regulators, including changes in laws, rules and regulations 21 21 21 21 Part I Part I •changes in the composition of JPMorganChase's balance sheet or developments that could increase RWA, such as increased market risk, customer delinquencies, client credit rating downgrades or other factors, and•increases in estimated stress losses as determined by the Federal Reserve under the Comprehensive Capital Analysis and Review, which could increase JPMorganChase's SCB.Any failure by or inability of JPMorganChase to maintain the required level and composition of capital, or unfavorable changes in applicable capital requirements, could have an adverse impact on JPMorganChase's shareholders, such as:•reducing the amount of common stock that JPMorganChase is permitted to repurchase•requiring the issuance of, or prohibiting the redemption of, capital instruments in a manner inconsistent with JPMorganChase's capital management strategy•constraining the amount of dividends that may be paid on common stock, or•curtailing JPMorganChase's business activities or operations.In 2023, U.S. banking regulators released a proposal to implement the final Basel III reforms which would have significantly revised the risk-based capital requirements for banks with assets of $100 billion or more, including JPMorganChase. In addition, in 2023 the Federal Reserve released a proposal to amend the calculation of the GSIB surcharge. Uncertainty remains regarding the content of the final versions of these rule proposals and how they might ultimately apply to JPMorganChase. However, it is possible that the final rules could impact JPMorganChase's decisions concerning the business activities in which it will engage and its levels of capital distributions to its shareholders. OperationalJPMorganChase's businesses are dependent on the effectiveness of internal and external operational systems.JPMorganChase's businesses rely on the ability of JPMorganChase's financial, accounting, transaction execution, data processing and other operational systems, including devices supporting those systems, to process, record, monitor and report a large number of transactions on a continuous basis, and to do so accurately, quickly and securely. In addition to proper design, installation, maintenance and training, the effective functioning of JPMorganChase's operational systems depends on:•the quality of the information contained in those systems, as inaccurate, outdated, incomplete or corrupted data can significantly compromise the functionality or reliability of a particular system and other systems to which it transmits or from which it receives information, and•JPMorganChase's ability to continue to maintain and upgrade its systems on a regular and timely basis in line with technological advancements and evolving security requirements, maintain security and operational continuity of its systems, including by carefully managing any changes introduced to its systems, prevent unauthorized access and the misuse of access to its systems, and adhere to all applicable legal and regulatory requirements, particularly in regions where JPMorganChase may face a heightened risk of malicious activity.JPMorganChase has experienced and expects that it will continue to experience failures and disruptions in the stability of its operational systems, including degraded performance of data processing systems, data quality issues, disruptions of network connectivity and malfunctioning software, as well as disruptions in its ability to access and use the operational systems of third parties and interruptions in service from third-party service providers. These incidents have resulted in various negative effects for customers, including the inability to access account information or transact through ATM, internet or mobile channels, the exfiltration of customer personal data, the recording of duplicative transactions and extended delays for customers requiring services from call centers. There can be no assurance that these and other types of operational failures or disruptions will not occur in the future.JPMorganChase's ability to effectively manage the stability of its operational systems and infrastructure could be hindered by many factors, any of which could have a negative impact on JPMorganChase and its clients, customers and counterparties, including:•JPMorganChase's ability to effectively maintain and upgrade systems and infrastructure can become more challenging as the speed, frequency, volume, interconnectivity and complexity of transactions continue to increase•attempts by third parties to defraud JPMorganChase or its clients and customers continue to increase, evolve and become more complex, and during periods of market disruption or economic uncertainty, these attempts can be expected to further increase in volume•errors made by JPMorganChase or another market participant, whether inadvertent or malicious, could cause widespread system disruption•failure to detect weaknesses or shortcomings in operational systems in a timely manner•isolated or seemingly insignificant errors in operational systems could compound, or migrate to other systems over time, to become larger issues •changes in the composition of JPMorganChase's balance sheet or developments that could increase RWA, such as increased market risk, customer delinquencies, client credit rating downgrades or other factors, and•increases in estimated stress losses as determined by the Federal Reserve under the Comprehensive Capital Analysis and Review, which could increase JPMorganChase's SCB.Any failure by or inability of JPMorganChase to maintain the required level and composition of capital, or unfavorable changes in applicable capital requirements, could have an adverse impact on JPMorganChase's shareholders, such as:•reducing the amount of common stock that JPMorganChase is permitted to repurchase•requiring the issuance of, or prohibiting the redemption of, capital instruments in a manner inconsistent with JPMorganChase's capital management strategy•constraining the amount of dividends that may be paid on common stock, or•curtailing JPMorganChase's business activities or operations.In 2023, U.S. banking regulators released a proposal to implement the final Basel III reforms which would have significantly revised the risk-based capital requirements for banks with assets of $100 billion or more, including JPMorganChase. In addition, in 2023 the Federal Reserve released a proposal to amend the calculation of the GSIB surcharge. Uncertainty remains regarding the content of the final versions of these rule proposals and how they might ultimately apply to JPMorganChase. However, it is possible that the final rules could impact JPMorganChase's decisions concerning the business activities in which it will engage and its levels of capital distributions to its shareholders. OperationalJPMorganChase's businesses are dependent on the effectiveness of internal and external operational systems.JPMorganChase's businesses rely on the ability of JPMorganChase's financial, accounting, transaction execution, data processing and other operational systems, including devices supporting those systems, to process, record, monitor and report a large number of transactions on a continuous basis, and to do so accurately, quickly and securely. In addition to proper design, installation, maintenance and training, the effective functioning of JPMorganChase's operational systems depends on:•the quality of the information contained in those systems, as inaccurate, outdated, incomplete or corrupted data can significantly compromise the •changes in the composition of JPMorganChase's balance sheet or developments that could increase RWA, such as increased market risk, customer delinquencies, client credit rating downgrades or other factors, and •increases in estimated stress losses as determined by the Federal Reserve under the Comprehensive Capital Analysis and Review, which could increase JPMorganChase's SCB. Any failure by or inability of JPMorganChase to maintain the required level and composition of capital, or unfavorable changes in applicable capital requirements, could have an adverse impact on JPMorganChase's shareholders, such as: •reducing the amount of common stock that JPMorganChase is permitted to repurchase •requiring the issuance of, or prohibiting the redemption of, capital instruments in a manner inconsistent with JPMorganChase's capital management strategy •constraining the amount of dividends that may be paid on common stock, or •curtailing JPMorganChase's business activities or operations. In 2023, U.S. banking regulators released a proposal to implement the final Basel III reforms which would have significantly revised the risk-based capital requirements for banks with assets of $100 billion or more, including JPMorganChase. In addition, in 2023 the Federal Reserve released a proposal to amend the calculation of the GSIB surcharge. Uncertainty remains regarding the content of the final versions of these rule proposals and how they might ultimately apply to JPMorganChase. However, it is possible that the final rules could impact JPMorganChase's decisions concerning the business activities in which it will engage and its levels of capital distributions to its shareholders. **Current (2026):** JPMorganChase is subject to various regulatory capital requirements, and the amount of capital that it is required to hold under those requirements could increase at any given time due to factors such as: 19 19 19 19 Part I Part I •actions by banking regulators, as well as changes in applicable law or how applicable law is implemented by banking regulators•changes in the composition of JPMorganChase's balance sheet or developments that could increase RWA, such as increased market risk, customer delinquencies, client credit rating downgrades or other factors, and•increases in estimated stress losses as determined by the Federal Reserve under CCAR, which could increase JPMorganChase's SCB.Although more likely in times of stress, JPMorganChase may use its regulatory capital buffers allowing capital ratios to decline below regulatory requirements, subjecting it to restrictions on capital distributions and discretionary bonus payments to its executive officers.Any failure by or inability of JPMorganChase to maintain the required level and composition of capital, any decision by JPMorgan Chase to use its regulatory buffers allowing capital ratios to decline below regulatory requirements or unfavorable changes in applicable capital requirements, could have an adverse impact on JPMorganChase's shareholders by:•reducing the amount of common stock that JPMorganChase is permitted to repurchase•requiring the issuance of, or prohibiting the redemption of, capital instruments in a manner inconsistent with JPMorganChase's capital management strategy•constraining the amount of dividends that can be paid on common stock, or•curtailing JPMorganChase's business activities or operations.OperationalJPMorganChase's businesses could be adversely affected by the failure or disruption of operational systems on which they depend.If the operational systems on which JPMorganChase's businesses depend, including those of acquired businesses and external parties, are unable to meet JPMorganChase's operational requirements or bank regulatory standards, or if they fail or have other significant shortcomings, JPMorganChase could be materially and adversely affected. JPMorganChase's businesses rely on its operational systems to process, record, monitor and report large amounts of information continuously, accurately, securely, and in a timely manner. These operational systems include financial, accounting, transaction execution, reporting and settlement, data processing and other systems, as well as supporting devices. The effective functioning of these operational systems depends on a variety of factors, including JPMorganChase's ability to:•properly design, install, maintain, and train its employees on the use of its systems•populate its systems with accurate, complete, up-to-date and uncorrupted information•upgrade its systems on a regular and timely basis in line with technological advancements and evolving security requirements•maintain the security and operational continuity of its systems, including by carefully managing any changes introduced to its systems•prevent unauthorized access and the misuse of access to its systems, and •adhere to applicable law relating to its systems, particularly in regions where JPMorganChase may face a heightened risk of malicious activity.JPMorganChase has experienced and expects that it will continue to experience failures and disruptions in the stability of its operational systems, including:•degraded performance of data processing systems•data quality issues•disruptions of network connectivity•malfunctioning software•disruptions in its ability to access and use the operational systems of third parties, and•interruptions in service from third-party service providers. These incidents have resulted in various negative effects for customers, including:•the inability to access account information or transact through ATM, internet or mobile channels•the exfiltration of customer personal data•the recording of duplicative transactions, and •extended delays for call center services. There can be no assurance that these and other types of operational failures or disruptions will not occur in the future.JPMorganChase's ability to effectively manage the stability of its operational systems and infrastructure could be hindered by many factors, any of which could have a negative impact on JPMorganChase and its clients, customers and counterparties, including:•challenges in maintaining and upgrading systems and infrastructure as the speed, frequency, volume, interconnectivity and complexity of transactions and other information flows continue to increase•attempts by third parties to defraud JPMorganChase and its clients and customers, which continue to increase, evolve and become more complex, as well as increased volumes of these attempts during periods of market disruption or economic uncertainty •actions by banking regulators, as well as changes in applicable law or how applicable law is implemented by banking regulators•changes in the composition of JPMorganChase's balance sheet or developments that could increase RWA, such as increased market risk, customer delinquencies, client credit rating downgrades or other factors, and•increases in estimated stress losses as determined by the Federal Reserve under CCAR, which could increase JPMorganChase's SCB.Although more likely in times of stress, JPMorganChase may use its regulatory capital buffers allowing capital ratios to decline below regulatory requirements, subjecting it to restrictions on capital distributions and discretionary bonus payments to its executive officers.Any failure by or inability of JPMorganChase to maintain the required level and composition of capital, any decision by JPMorgan Chase to use its regulatory buffers allowing capital ratios to decline below regulatory requirements or unfavorable changes in applicable capital requirements, could have an adverse impact on JPMorganChase's shareholders by:•reducing the amount of common stock that JPMorganChase is permitted to repurchase•requiring the issuance of, or prohibiting the redemption of, capital instruments in a manner inconsistent with JPMorganChase's capital management strategy•constraining the amount of dividends that can be paid on common stock, or•curtailing JPMorganChase's business activities or operations.OperationalJPMorganChase's businesses could be adversely affected by the failure or disruption of operational systems on which they depend.If the operational systems on which JPMorganChase's businesses depend, including those of acquired businesses and external parties, are unable to meet JPMorganChase's operational requirements or bank regulatory standards, or if they fail or have other significant shortcomings, JPMorganChase could be materially and adversely affected. JPMorganChase's businesses rely on its operational systems to process, record, monitor and report large amounts of information continuously, accurately, securely, and in a timely manner. These operational systems include financial, accounting, transaction execution, reporting and settlement, data processing and other systems, as well as supporting devices. The effective functioning of these operational systems depends on a variety of factors, including JPMorganChase's ability to: •actions by banking regulators, as well as changes in applicable law or how applicable law is implemented by banking regulators •changes in the composition of JPMorganChase's balance sheet or developments that could increase RWA, such as increased market risk, customer delinquencies, client credit rating downgrades or other factors, and •increases in estimated stress losses as determined by the Federal Reserve under CCAR, which could increase JPMorganChase's SCB. Although more likely in times of stress, JPMorganChase may use its regulatory capital buffers allowing capital ratios to decline below regulatory requirements, subjecting it to restrictions on capital distributions and discretionary bonus payments to its executive officers. Any failure by or inability of JPMorganChase to maintain the required level and composition of capital, any decision by JPMorgan Chase to use its regulatory buffers allowing capital ratios to decline below regulatory requirements or unfavorable changes in applicable capital requirements, could have an adverse impact on JPMorganChase's shareholders by: •reducing the amount of common stock that JPMorganChase is permitted to repurchase •requiring the issuance of, or prohibiting the redemption of, capital instruments in a manner inconsistent with JPMorganChase's capital management strategy •constraining the amount of dividends that can be paid on common stock, or •curtailing JPMorganChase's business activities or operations. --- ## Modified Risk: Notes to consolidated financial statements **Key changes:** - Updated: "OtherYear ended December 31, 2025(in millions, except ratios)Amortized cost basis% of loan modifications to total retained Other loansFinancial effect of loan modificationSingle modificationsTerm extension$123 0.03 %Extended loans by a weighted-average of 14 monthsMultiple modificationsOther-than-insignificant payment deferral and term extension3 - NMOther(a)1 - NMTotal$127" **Prior (2025):** (in millions, except ratios)OtherYear ended December 31, 2024Amortized cost basis% of loan modifications to total retained Other loansFinancial effect of loan modificationSingle modificationsTerm extension$268 0.07 %Extended loans by a weighted-average of 28 monthsMultiple modificationsOther-than-insignificant payment deferral and term extension2 - Provided payment deferrals with delayed amounts recaptured at maturity and extended loans by a weighted-average of 6 monthsOther(a)5 - NMTotal$275 (in millions, except ratios) **Current (2026):** OtherYear ended December 31, 2025(in millions, except ratios)Amortized cost basis% of loan modifications to total retained Other loansFinancial effect of loan modificationSingle modificationsTerm extension$123 0.03 %Extended loans by a weighted-average of 14 monthsMultiple modificationsOther-than-insignificant payment deferral and term extension3 - NMOther(a)1 - NMTotal$127 --- ## Modified Risk: 2025 compared with 2024 **Key changes:** - Updated: "Net income was $27.8 billion, up 12%." - Updated: "-Debt underwriting fees were $4.5 billion, up 9%, predominantly driven by non-investment grade loans and investment grade bonds." - Updated: "At December 31, 2025, 2024 and 2023, mortgage loans 90 or more days past due and insured by U.S." **Prior (2025):** Net income was $24.8 billion, up 23%. Net revenue was $70.1 billion, up 9%. Banking & Payments revenue was $35.3 billion, up 11%. •Investment Banking revenue was $9.6 billion, up 36%. Investment Banking fees were up 37%, driven by higher fees across products. The Firm ranked #1 for Global Investment Banking fees, according to Dealogic. -Debt underwriting fees were $4.1 billion, up 55%, predominantly driven by higher industry-wide issuances in leveraged loans, and in high-grade and high-yield bonds. -Equity underwriting fees were $1.7 billion, up 47%, driven by increased industry-wide fees and wallet share gains in IPOs, and in follow-on and convertible securities offerings. -Advisory fees were $3.3 billion, up 17%, driven by increased industry-wide M&A activity and wallet share gains. •Payments revenue was $18.1 billion, up 1%, driven by fee growth on higher volumes as well as higher average deposits, predominantly offset by deposit margin compression, reflecting higher rates paid, and higher deposit-related client credits. •Lending revenue was $7.5 billion, up 8%, predominantly driven by the impacts of higher rates and the First Republic acquisition. Markets & Securities Services revenue was $34.8 billion, up 7%. Markets revenue was $30.0 billion, up 7%. •Equity Markets revenue was $9.9 billion, up 13%, driven by higher revenue in Equity Derivatives and Prime Finance. •Fixed Income Markets revenue was $20.1 billion, up 5%, driven by higher revenue in the Securitized Products Group, Currencies & Emerging Markets, and Credit, largely offset by lower revenue in Rates and Commodities. •Securities Services revenue was $5.1 billion, up 7%, predominantly driven by fee growth on higher client activity and market levels. •Credit Adjustments & Other was a loss of $244 million, compared with a loss of $280 million in the prior year. Noninterest expense was $35.4 billion, up 4%, driven by higher compensation expense, including revenue-related compensation and an increase in the number of employees, as well as higher technology and brokerage expense partially offset by lower legal expense.The provision for credit losses was $762 million, reflecting: •net charge-offs of $617 million, primarily in Real Estate, largely concentrated in Office, and•a $145 million net addition to the allowance for credit losses, driven by-net downgrade activity, primarily in Real Estate, and the impact of incorporating the First Republic portfolio into the Firm's modeled credit loss estimates in the second quarter of 2024, predominantly offset by-changes in certain macroeconomic variables, an update to loss assumptions on certain loans in Markets, and a reduction due to charge-offs predominantly from collateral-dependent loans. The provision in the prior year was $2.1 billion, reflecting a $1.5 billion net addition to the allowance for credit losses, which included $608 million to establish the allowance for the First Republic loans and lending-related commitments in the second quarter of 2023, and net charge-offs of $588 million. Noninterest expense was $35.4 billion, up 4%, driven by higher compensation expense, including revenue-related compensation and an increase in the number of employees, as well as higher technology and brokerage expense partially offset by lower legal expense. The provision for credit losses was $762 million, reflecting: •net charge-offs of $617 million, primarily in Real Estate, largely concentrated in Office, and •a $145 million net addition to the allowance for credit losses, driven by -net downgrade activity, primarily in Real Estate, and the impact of incorporating the First Republic portfolio into the Firm's modeled credit loss estimates in the second quarter of 2024, predominantly offset by -changes in certain macroeconomic variables, an update to loss assumptions on certain loans in Markets, and a reduction due to charge-offs predominantly from collateral-dependent loans. The provision in the prior year was $2.1 billion, reflecting a $1.5 billion net addition to the allowance for credit losses, which included $608 million to establish the allowance for the First Republic loans and lending-related commitments in the second quarter of 2023, and net charge-offs of $588 million. JPMorgan Chase & Co./2024 Form 10-K79 JPMorgan Chase & Co./2024 Form 10-K79 JPMorgan Chase & Co./2024 Form 10-K79 JPMorgan Chase & Co./2024 Form 10-K 79 Selected metricsAs of or for the year ended December 31, (in millions, except employees)202420232022Selected balance sheet data (period-end)Total assets$1,773,194 $1,638,493 $1,591,402 Loans:Loans retained483,043 475,186 421,521 Loans held-for-sale and loans at fair value(a)40,324 39,464 43,011 Total loans523,367 514,650 464,532 Equity132,000 138,000 128,000 Banking & Payments loans by client coverage segment (period-end)(b)Global Corporate Banking & Global Investment Banking$125,083 $128,097 $128,165 Commercial Banking217,674 221,550 180,624 Middle Market Banking72,814 78,043 72,625 Commercial Real Estate Banking144,860 143,507 107,999 Other187 526 122 Total Banking & Payments loans342,944 350,173 308,911 Selected balance sheet data (average)Total assets$1,912,466 $1,716,755 $1,649,358 Trading assets-debt and equity instruments624,032 508,792 405,948 Trading assets-derivative receivables57,028 63,862 77,822 Loans:Loans retained$475,426 $457,886 $395,015 Loans held-for-sale and loans at fair value(a)43,621 40,891 48,196 Total loans$519,047 $498,777 $443,211 Deposits(c)1,061,488 996,295 1,033,880 Equity132,000 137,507 128,000 Banking & Payments loans by client coverage segment (average)(b)Global Corporate Banking & Global Investment Banking$128,142 $131,230 $122,174 Commercial Banking220,285 209,244 173,289 Middle Market Banking75,605 77,130 67,830 Commercial Real Estate Banking144,680 132,114 105,459 Other354 331 168 Total Banking & Payments loans$348,781 $340,805 $295,631 Employees93,231 92,271 88,139 (a)Loans held-for-sale and loans at fair value primarily reflect lending-related positions originated and purchased in Markets, including loans held for securitization.(b)Refer to page 78 for a description of each of the client coverage segments.(c)In the fourth quarter of 2023, certain deposits associated with First Republic were transferred to CIB from CCB.Selected metricsAs of or for the year ended December 31, (in millions, except ratios)202420232022Credit data and quality statisticsNet charge-offs/(recoveries)$689 (d)$588 $166 Nonperforming assets:Nonaccrual loans:Nonaccrual loans retained(a)$3,258 $1,675 $1,484 Nonaccrual loans held-for-sale and loans at fair value(b)1,502 828 848 Total nonaccrual loans4,760 2,503 2,332 Derivative receivables145 364 296 Assets acquired in loan satisfactions213 169 87 Total nonperforming assets$5,118 $3,036 $2,715 Allowance for credit losses:Allowance for loan losses$7,294 $7,326 $5,616 Allowance for lending-related commitments1,976 1,849 2,278 Total allowance for credit losses$9,270 $9,175 $7,894 Net charge-off/(recovery) rate(c)0.14 %0.13 %0.04 %Allowance for loan losses to period-end loans retained1.51 1.54 1.33 Allowance for loan losses to nonaccrual loans retained(a)224 437 378 Nonaccrual loans to total period-end loans0.91 0.49 0.50 (a)Allowance for loan losses of $435 million, $251 million and $257 million were held against these nonaccrual loans at December 31, 2024, 2023 and 2022, respectively.(b)Excludes mortgage loans past due and insured by U.S. government agencies, which are primarily 90 or more days past due. These loans have been excluded based upon the government guarantee. At December 31, 2024, 2023 and 2022, mortgage loans 90 or more days past due and insured by U.S. government agencies were $37 million, $59 million and $115 million, respectively.(c)Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate.(d)Includes $72 million related to a purchased credit deteriorated ("PCD") loan that was charged off in the fourth quarter of 2024. Selected metricsAs of or for the year ended December 31, (in millions, except employees)202420232022Selected balance sheet data (period-end)Total assets$1,773,194 $1,638,493 $1,591,402 Loans:Loans retained483,043 475,186 421,521 Loans held-for-sale and loans at fair value(a)40,324 39,464 43,011 Total loans523,367 514,650 464,532 Equity132,000 138,000 128,000 Banking & Payments loans by client coverage segment (period-end)(b)Global Corporate Banking & Global Investment Banking$125,083 $128,097 $128,165 Commercial Banking217,674 221,550 180,624 Middle Market Banking72,814 78,043 72,625 Commercial Real Estate Banking144,860 143,507 107,999 Other187 526 122 Total Banking & Payments loans342,944 350,173 308,911 Selected balance sheet data (average)Total assets$1,912,466 $1,716,755 $1,649,358 Trading assets-debt and equity instruments624,032 508,792 405,948 Trading assets-derivative receivables57,028 63,862 77,822 Loans:Loans retained$475,426 $457,886 $395,015 Loans held-for-sale and loans at fair value(a)43,621 40,891 48,196 Total loans$519,047 $498,777 $443,211 Deposits(c)1,061,488 996,295 1,033,880 Equity132,000 137,507 128,000 Banking & Payments loans by client coverage segment (average)(b)Global Corporate Banking & Global Investment Banking$128,142 $131,230 $122,174 Commercial Banking220,285 209,244 173,289 Middle Market Banking75,605 77,130 67,830 Commercial Real Estate Banking144,680 132,114 105,459 Other354 331 168 Total Banking & Payments loans$348,781 $340,805 $295,631 Employees93,231 92,271 88,139 (a)Loans held-for-sale and loans at fair value primarily reflect lending-related positions originated and purchased in Markets, including loans held for securitization.(b)Refer to page 78 for a description of each of the client coverage segments.(c)In the fourth quarter of 2023, certain deposits associated with First Republic were transferred to CIB from CCB. Selected metricsAs of or for the year ended December 31, (in millions, except employees)202420232022Selected balance sheet data (period-end)Total assets$1,773,194 $1,638,493 $1,591,402 Loans:Loans retained483,043 475,186 421,521 Loans held-for-sale and loans at fair value(a)40,324 39,464 43,011 Total loans523,367 514,650 464,532 Equity132,000 138,000 128,000 Banking & Payments loans by client coverage segment (period-end)(b)Global Corporate Banking & Global Investment Banking$125,083 $128,097 $128,165 Commercial Banking217,674 221,550 180,624 Middle Market Banking72,814 78,043 72,625 Commercial Real Estate Banking144,860 143,507 107,999 Other187 526 122 Total Banking & Payments loans342,944 350,173 308,911 Selected balance sheet data (average)Total assets$1,912,466 $1,716,755 $1,649,358 Trading assets-debt and equity instruments624,032 508,792 405,948 Trading assets-derivative receivables57,028 63,862 77,822 Loans:Loans retained$475,426 $457,886 $395,015 Loans held-for-sale and loans at fair value(a)43,621 40,891 48,196 Total loans$519,047 $498,777 $443,211 Deposits(c)1,061,488 996,295 1,033,880 Equity132,000 137,507 128,000 Banking & Payments loans by client coverage segment (average)(b)Global Corporate Banking & Global Investment Banking$128,142 $131,230 $122,174 Commercial Banking220,285 209,244 173,289 Middle Market Banking75,605 77,130 67,830 Commercial Real Estate Banking144,680 132,114 105,459 Other354 331 168 Total Banking & Payments loans$348,781 $340,805 $295,631 Employees93,231 92,271 88,139 **Current (2026):** Net income was $27.8 billion, up 12%. Net revenue was $78.5 billion, up 12%. Banking & Payments revenue was $37.1 billion, up 5%. •Investment Banking revenue was $10.2 billion, up 6%. Investment Banking fees were up 7%, driven by higher fees across products. The Firm ranked #1 for Global Investment Banking fees, according to Dealogic. -Debt underwriting fees were $4.5 billion, up 9%, predominantly driven by non-investment grade loans and investment grade bonds. -Advisory fees were $3.5 billion, up 6%, driven by higher fees from deals in the Financial Institutions and Technology sectors, partially offset by lower fees from deals in the Media & Telecommunications sector. -Equity underwriting fees were $1.7 billion, up 2%, primarily driven by higher revenue from IPOs. •Payments revenue was $19.3 billion, up 7%. Excluding the net impact of equity investments, revenue was up 5%, driven by higher average deposits and fee growth, largely offset by deposit margin compression. •Lending revenue was $7.6 billion, up 2%, driven by higher lending-related fees and lower fair value losses on credit protection purchased against certain retained loans and lending-related commitments. Markets & Securities Services revenue was $41.3 billion, up 19%. Markets revenue was $35.8 billion, up 19%. •Equity Markets revenue was $13.3 billion, up 33%, driven by higher revenue across products, particularly in Equity Derivatives. •Fixed Income Markets revenue was $22.5 billion, up 12%, predominantly driven by higher revenue in Rates, Currencies & Emerging Markets, Commodities and Securitized Products, partially offset by lower revenue in Credit. •Securities Services revenue was $5.6 billion, up 10%, driven by higher average deposits as well as fee growth related to higher client activity and market levels, partially offset by deposit margin compression. •Credit Adjustments & Other was a loss of $63 million, compared with a loss of $244 million in the prior year. Noninterest expense was $38.2 billion, up 8%, predominantly driven by higher compensation, including higher revenue-related compensation, as well as higher brokerage, technology and regulatory expense.The provision for credit losses was $2.6 billion, driven by net increases in the loan and lending-related commitment portfolios, net changes in credit quality of client-specific exposures, an update to loss assumptions on certain leveraged loans, and estimated losses related to borrower fraud in certain secured lending facilities, partially offset by the impact of changes in the Firm's weighted-average macroeconomic outlook. Net charge-offs were $1.5 billion and the net addition to the allowance for credit losses was $1.1 billion. In the prior year, the provision was $762 million, net charge-offs were $617 million and the net addition to the allowance for credit losses was $145 million. Noninterest expense was $38.2 billion, up 8%, predominantly driven by higher compensation, including higher revenue-related compensation, as well as higher brokerage, technology and regulatory expense. The provision for credit losses was $2.6 billion, driven by net increases in the loan and lending-related commitment portfolios, net changes in credit quality of client-specific exposures, an update to loss assumptions on certain leveraged loans, and estimated losses related to borrower fraud in certain secured lending facilities, partially offset by the impact of changes in the Firm's weighted-average macroeconomic outlook. Net charge-offs were $1.5 billion and the net addition to the allowance for credit losses was $1.1 billion. In the prior year, the provision was $762 million, net charge-offs were $617 million and the net addition to the allowance for credit losses was $145 million. JPMorgan Chase & Co./2025 Form 10-K71 JPMorgan Chase & Co./2025 Form 10-K71 JPMorgan Chase & Co./2025 Form 10-K71 JPMorgan Chase & Co./2025 Form 10-K 71 Selected metricsAs of or for the year ended December 31, (in millions, except employees)202520242023Selected balance sheet data (period-end)Total assets$2,142,534 $1,773,194 $1,638,493 Loans:Loans retained558,528 483,043 475,186 Loans held-for-sale and loans at fair value(a)73,508 40,324 39,464 Total loans632,036 523,367 514,650 Equity149,500 132,000 138,000 Banking & Payments loans by client coverage segment (period-end)(b)Global Corporate Banking & Global Investment Banking(c)$146,079 (e)$125,270 $128,623 Commercial Banking222,139 217,674 221,550 Commercial & Specialized Industries(d)75,865 72,814 78,043 Commercial Real Estate Banking146,274 144,860 143,507 Total Banking & Payments loans368,218 342,944 350,173 Selected balance sheet data (average)Total assets$2,195,248 $1,912,466 $1,716,755 Trading assets-debt and equity instruments764,098 624,032 508,792 Trading assets-derivative receivables58,384 57,028 63,862 Loans:Loans retained$517,260 $475,426 $457,886 Loans held-for-sale and loans at fair value(a)54,725 43,621 40,891 Total loans$571,985 $519,047 $498,777 Deposits1,174,581 1,061,488 996,295 Equity149,500 132,000 137,507 Banking & Payments loans by client coverage segment (average)(b)Global Corporate Banking & Global Investment Banking(c)$129,437 (e)$128,496 $131,561 Commercial Banking220,562 220,285 209,244 Commercial & Specialized Industries(d)74,733 75,605 77,130 Commercial Real Estate Banking145,829 144,680 132,114 Total Banking & Payments loans$349,999 $348,781 $340,805 Employees94,563 (f)93,231 92,271 (a)Loans held-for-sale and loans at fair value primarily reflect lending-related positions originated and purchased in Markets, including loans held for securitization.(b)Refer to page 70 for a description of each of the client coverage segments.(c)In the second quarter of 2025, amounts were reclassified from Other to Global Corporate Banking & Global Investment Banking reflecting the subsequent alignment of certain business activities after the Firm's business segment reorganization in the second quarter of 2024. Prior-period amounts have been revised to conform with the current presentation.(d)In the second quarter of 2025, the Middle Market Banking client coverage segment was renamed Commercial & Specialized Industries.(e)On January 1, 2025, $5.6 billion of loans were realigned from Global Corporate Banking to Fixed Income Markets.(f)In the first quarter of 2025, 219 employees were transferred to Corporate as a result of the centralization of certain functions.Selected metricsAs of or for the year ended December 31, (in millions, except ratios)202520242023Credit data and quality statisticsNet charge-offs/(recoveries)$1,509 $689 (d)$588 Nonperforming assets:Nonaccrual loans:Nonaccrual loans retained(a)$3,641 $3,258 $1,675 Nonaccrual loans held-for-sale and loans at fair value(b)1,518 1,502 828 Total nonaccrual loans5,159 4,760 2,503 Derivative receivables204 145 364 Assets acquired in loan satisfactions192 213 169 Total nonperforming assets$5,555 $5,118 $3,036 Allowance for credit losses:Allowance for loan losses$7,632 $7,294 $7,326 Allowance for lending-related commitments2,738 1,976 1,849 Total allowance for credit losses$10,370 $9,270 $9,175 Net charge-off/(recovery) rate(c)0.29 %0.14 %0.13 %Allowance for loan losses to period-end loans retained1.37 1.51 1.54 Allowance for loan losses to nonaccrual loans retained(a)210 224 437 Nonaccrual loans to total period-end loans0.82 0.91 0.49 (a)Allowance for loan losses of $597 million, $435 million and $251 million were held against these nonaccrual loans at December 31, 2025, 2024 and 2023, respectively.(b)Excludes mortgage loans past due and insured by U.S. government agencies, which are primarily 90 or more days past due. These loans have been excluded based upon the government guarantee. At December 31, 2025, 2024 and 2023, mortgage loans 90 or more days past due and insured by U.S. government agencies were $128 million, $37 million and $59 million, respectively.(c)Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate.(d)Includes $72 million related to a purchased credit deteriorated ("PCD") loan that was charged off in the fourth quarter of 2024. Selected metricsAs of or for the year ended December 31, (in millions, except employees)202520242023Selected balance sheet data (period-end)Total assets$2,142,534 $1,773,194 $1,638,493 Loans:Loans retained558,528 483,043 475,186 Loans held-for-sale and loans at fair value(a)73,508 40,324 39,464 Total loans632,036 523,367 514,650 Equity149,500 132,000 138,000 Banking & Payments loans by client coverage segment (period-end)(b)Global Corporate Banking & Global Investment Banking(c)$146,079 (e)$125,270 $128,623 Commercial Banking222,139 217,674 221,550 Commercial & Specialized Industries(d)75,865 72,814 78,043 Commercial Real Estate Banking146,274 144,860 143,507 Total Banking & Payments loans368,218 342,944 350,173 Selected balance sheet data (average)Total assets$2,195,248 $1,912,466 $1,716,755 Trading assets-debt and equity instruments764,098 624,032 508,792 Trading assets-derivative receivables58,384 57,028 63,862 Loans:Loans retained$517,260 $475,426 $457,886 Loans held-for-sale and loans at fair value(a)54,725 43,621 40,891 Total loans$571,985 $519,047 $498,777 Deposits1,174,581 1,061,488 996,295 Equity149,500 132,000 137,507 Banking & Payments loans by client coverage segment (average)(b)Global Corporate Banking & Global Investment Banking(c)$129,437 (e)$128,496 $131,561 Commercial Banking220,562 220,285 209,244 Commercial & Specialized Industries(d)74,733 75,605 77,130 Commercial Real Estate Banking145,829 144,680 132,114 Total Banking & Payments loans$349,999 $348,781 $340,805 Employees94,563 (f)93,231 92,271 (a)Loans held-for-sale and loans at fair value primarily reflect lending-related positions originated and purchased in Markets, including loans held for securitization.(b)Refer to page 70 for a description of each of the client coverage segments. Selected metricsAs of or for the year ended December 31, (in millions, except employees)202520242023Selected balance sheet data (period-end)Total assets$2,142,534 $1,773,194 $1,638,493 Loans:Loans retained558,528 483,043 475,186 Loans held-for-sale and loans at fair value(a)73,508 40,324 39,464 Total loans632,036 523,367 514,650 Equity149,500 132,000 138,000 Banking & Payments loans by client coverage segment (period-end)(b)Global Corporate Banking & Global Investment Banking(c)$146,079 (e)$125,270 $128,623 Commercial Banking222,139 217,674 221,550 Commercial & Specialized Industries(d)75,865 72,814 78,043 Commercial Real Estate Banking146,274 144,860 143,507 Total Banking & Payments loans368,218 342,944 350,173 Selected balance sheet data (average)Total assets$2,195,248 $1,912,466 $1,716,755 Trading assets-debt and equity instruments764,098 624,032 508,792 Trading assets-derivative receivables58,384 57,028 63,862 Loans:Loans retained$517,260 $475,426 $457,886 Loans held-for-sale and loans at fair value(a)54,725 43,621 40,891 Total loans$571,985 $519,047 $498,777 Deposits1,174,581 1,061,488 996,295 Equity149,500 132,000 137,507 Banking & Payments loans by client coverage segment (average)(b)Global Corporate Banking & Global Investment Banking(c)$129,437 (e)$128,496 $131,561 Commercial Banking220,562 220,285 209,244 Commercial & Specialized Industries(d)74,733 75,605 77,130 Commercial Real Estate Banking145,829 144,680 132,114 Total Banking & Payments loans$349,999 $348,781 $340,805 Employees94,563 (f)93,231 92,271 --- ## Modified Risk: Total fair value of trading assets and liabilities **Key changes:** - Updated: "206JPMorgan Chase & Co./2025 Form 10-K 206JPMorgan Chase & Co./2025 Form 10-K 206JPMorgan Chase & Co./2025 Form 10-K 206 JPMorgan Chase & Co./2025 Form 10-K" **Prior (2025):** (a)Balances exclude structured notes for which the fair value option has been elected. Refer to Note 3 for further information. (b)As permitted under U.S. GAAP, the Firm has elected to net derivative receivables and derivative payables and the related cash collateral receivables and payables when a legally enforceable master netting agreement exists. JPMorgan Chase & Co./2024 Form 10-K213 JPMorgan Chase & Co./2024 Form 10-K213 JPMorgan Chase & Co./2024 Form 10-K213 JPMorgan Chase & Co./2024 Form 10-K 213 **Current (2026):** (a)Balances exclude structured notes for which the fair value option has been elected. Refer to Note 3 for further information. (b)As permitted under U.S. GAAP, the Firm has elected to net derivative receivables and derivative payables and the related cash collateral receivables and payables when a legally enforceable master netting agreement exists. 206JPMorgan Chase & Co./2025 Form 10-K 206JPMorgan Chase & Co./2025 Form 10-K 206JPMorgan Chase & Co./2025 Form 10-K 206 JPMorgan Chase & Co./2025 Form 10-K --- ## Modified Risk: Total weighted-average diluted shares outstanding **Key changes:** - Updated: "286JPMorgan Chase & Co./2025 Form 10-K 286JPMorgan Chase & Co./2025 Form 10-K 286JPMorgan Chase & Co./2025 Form 10-K 286 JPMorgan Chase & Co./2025 Form 10-K" **Prior (2025):** 294JPMorgan Chase & Co./2024 Form 10-K 294JPMorgan Chase & Co./2024 Form 10-K 294JPMorgan Chase & Co./2024 Form 10-K 294 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** 286JPMorgan Chase & Co./2025 Form 10-K 286JPMorgan Chase & Co./2025 Form 10-K 286JPMorgan Chase & Co./2025 Form 10-K 286 JPMorgan Chase & Co./2025 Form 10-K --- ## Modified Risk: Glossary of Terms and Acronyms **Key changes:** - Removed: "Alt-A Alt-A loans are generally higher in credit quality than subprime loans but have characteristics that would disqualify the borrower from a traditional prime loan." - Removed: "Alt-A lending characteristics may include one or more of the following: (i) limited documentation; (ii) a high CLTV ratio; (iii) loans secured by non-owner occupied properties; or (iv) a debt-to-income ratio above normal limits." - Updated: "Subprime Subprime loans are loans that, prior to mid-2008, were offered to certain customers with one or more high risk characteristics, including but not limited to: (i) unreliable or poor payment histories; (ii) a high LTV ratio of greater than 80% (without borrower-paid mortgage insurance); (iii) a high debt-to-income ratio; (iv) an occupancy type for the loan is other than the borrower's primary residence; or (v) a history of delinquencies or late payments on the loan." **Prior (2025):** Alt-A Alt-A loans are generally higher in credit quality than subprime loans but have characteristics that would disqualify the borrower from a traditional prime loan. Alt-A lending characteristics may include one or more of the following: (i) limited documentation; (ii) a high CLTV ratio; (iii) loans secured by non-owner occupied properties; or (iv) a debt-to-income ratio above normal limits. A substantial proportion of the Firm's Alt-A loans are those where a borrower does not provide complete documentation of his or her assets or the amount or source of his or her income. Option ARMs The option ARM real estate loan product is an adjustable-rate mortgage loan that provides the borrower with the option each month to make a fully amortizing, interest-only or minimum payment. The minimum payment on an option ARM loan is based on the interest rate charged during the introductory period. This introductory rate is usually significantly below the fully indexed rate. The fully indexed rate is calculated using an index rate plus a margin. Once the introductory period ends, the contractual interest rate charged on the loan increases to the fully indexed rate and adjusts monthly to reflect movements in the index. The minimum payment is typically insufficient to cover interest accrued in the prior month, and any unpaid interest is deferred and added to the principal balance of the loan. Option ARM loans are subject to payment recast, which converts the loan to a variable-rate fully amortizing loan upon meeting specified loan balance and anniversary date triggers. Prime Prime mortgage loans are made to borrowers with good credit records who meet specific underwriting requirements, including prescriptive requirements related to income and overall debt levels. New prime mortgage borrowers provide full documentation and generally have reliable payment histories. Subprime Subprime loans are loans that, prior to mid-2008, were offered to certain customers with one or more high risk characteristics, including but not limited to: (i) unreliable or poor payment histories; (ii) a high LTV ratio of greater than 80% (without borrower-paid mortgage insurance); (iii) a high debt-to-income ratio; (iv) an occupancy type for the loan is other than the borrower's 330JPMorgan Chase & Co./2024 Form 10-K 330JPMorgan Chase & Co./2024 Form 10-K 330JPMorgan Chase & Co./2024 Form 10-K 330 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** limits. A substantial proportion of the Firm's Alt-A loans are those where a borrower does not provide complete documentation of his or her assets or the amount or source of his or her income. Option ARMs The option ARM real estate loan product is an adjustable-rate mortgage loan that provides the borrower with the option each month to make a fully amortizing, interest-only or minimum payment. The minimum payment on an option ARM loan is based on the interest rate charged during the introductory period. This introductory rate is usually significantly below the fully indexed rate. The fully indexed rate is calculated using an index rate plus a margin. Once the introductory period ends, the contractual interest rate charged on the loan increases to the fully indexed rate and adjusts monthly to reflect movements in the index. The minimum payment is typically insufficient to cover interest accrued in the prior month, and any unpaid interest is deferred and added to the principal balance of the loan. Option ARM loans are subject to payment recast, which converts the loan to a variable-rate fully amortizing loan upon meeting specified loan balance and anniversary date triggers. Prime Prime mortgage loans are made to borrowers with good credit records who meet specific underwriting requirements, including prescriptive requirements related to income and overall debt levels. New prime mortgage borrowers provide full documentation and generally have reliable payment histories. Subprime Subprime loans are loans that, prior to mid-2008, were offered to certain customers with one or more high risk characteristics, including but not limited to: (i) unreliable or poor payment histories; (ii) a high LTV ratio of greater than 80% (without borrower-paid mortgage insurance); (iii) a high debt-to-income ratio; (iv) an occupancy type for the loan is other than the borrower's primary residence; or (v) a history of delinquencies or late payments on the loan. MREL: Minimum requirements for own funds and eligible liabilities MSR: Mortgage servicing rights Multi-asset: Any fund or account that allocates assets under management to more than one asset class.NA: Data is not applicable or available for the period presented. NAV: Net Asset Value Net Capital Rule: Rule 15c3-1 under the Securities Exchange Act of 1934.Net charge-off/(recovery) rate: Represents net charge-offs/(recoveries) (annualized) divided by average retained loans for the reporting period.Net interchange income includes the following components:•Interchange income: Fees earned by credit and debit card issuers on sales transactions. •Rewards costs: The cost to the Firm for points earned by cardholders enrolled in credit card rewards programs generally tied to sales transactions.•Partner payments: Payments to co-brand credit card partners based on the cost of loyalty program rewards earned by cardholders on credit card transactions.Net mortgage servicing revenue: Includes operating revenue earned from servicing third-party mortgage loans, which is recognized over the period in which the service is provided; changes in the fair value of MSRs; the impact of risk management activities associated with MSRs; and gains and losses on securitization of excess mortgage servicing. Net mortgage servicing revenue also includes gains and losses on sales and lower of cost or fair value adjustments of certain repurchased loans insured by U.S. government agencies. Net revenue rate: Represents Card Services net revenue (annualized) expressed as a percentage of average loans for the period.Net yield on interest-earning assets: The average rate for interest-earning assets less the average rate paid for all sources of funds.NFA: National Futures AssociationNM: Not meaningfulNOL: Net operating loss Nonaccrual loans: Loans for which interest income is not recognized on an accrual basis. Loans (other than credit card loans and certain consumer loans insured by U.S. government agencies) are placed on nonaccrual status when full payment of principal and interest is not expected, regardless of delinquency status, or when principal and interest have been in default for a period of 90 days or more unless the loan is both well-secured and in the process of collection. Collateral-dependent loans are typically maintained on nonaccrual status. Nonperforming assets: Nonperforming assets include nonaccrual loans, nonperforming derivatives and certain assets acquired in loan satisfactions, predominantly real estate owned and other commercial and personal property.NSFR: Net Stable Funding RatioOAS: Option-adjusted spread OCC: Office of the Comptroller of the Currency OCI: Other comprehensive income/(loss)OPEB: Other postretirement employee benefit limits. A substantial proportion of the Firm's Alt-A loans are those where a borrower does not provide complete documentation of his or her assets or the amount or source of his or her income. Option ARMs The option ARM real estate loan product is an adjustable-rate mortgage loan that provides the borrower with the option each month to make a fully amortizing, interest-only or minimum payment. The minimum payment on an option ARM loan is based on the interest rate charged during the introductory period. This introductory rate is usually significantly below the fully indexed rate. The fully indexed rate is calculated using an index rate plus a margin. Once the introductory period ends, the contractual interest rate charged on the loan increases to the fully indexed rate and adjusts monthly to reflect movements in the index. The minimum payment is typically insufficient to cover interest accrued in the prior month, and any unpaid interest is deferred and added to the principal balance of the loan. Option ARM loans are subject to payment recast, which converts the loan to a variable-rate fully amortizing loan upon meeting specified loan balance and anniversary date triggers. Prime Prime mortgage loans are made to borrowers with good credit records who meet specific underwriting requirements, including prescriptive requirements related to income and overall debt levels. New prime mortgage borrowers provide full documentation and generally have reliable payment histories. Subprime Subprime loans are loans that, prior to mid-2008, were offered to certain customers with one or more high risk characteristics, including but not limited to: (i) unreliable or poor payment histories; (ii) a high LTV ratio of greater than 80% (without borrower-paid mortgage insurance); (iii) a high debt-to-income ratio; (iv) an occupancy type for the loan is other than the borrower's primary residence; or (v) a history of delinquencies or late payments on the loan. MREL: Minimum requirements for own funds and eligible liabilities MSR: Mortgage servicing rights Multi-asset: Any fund or account that allocates assets under management to more than one asset class.NA: Data is not applicable or available for the period presented. NAV: Net Asset Value Net Capital Rule: Rule 15c3-1 under the Securities Exchange Act of 1934.Net charge-off/(recovery) rate: Represents net charge-offs/(recoveries) (annualized) divided by average retained loans for the reporting period. limits. A substantial proportion of the Firm's Alt-A loans are those where a borrower does not provide complete documentation of his or her assets or the amount or source of his or her income. Option ARMs The option ARM real estate loan product is an adjustable-rate mortgage loan that provides the borrower with the option each month to make a fully amortizing, interest-only or minimum payment. The minimum payment on an option ARM loan is based on the interest rate charged during the introductory period. This introductory rate is usually significantly below the fully indexed rate. The fully indexed rate is calculated using an index rate plus a margin. Once the introductory period ends, the contractual interest rate charged on the loan increases to the fully indexed rate and adjusts monthly to reflect movements in the index. The minimum payment is typically insufficient to cover interest accrued in the prior month, and any unpaid interest is deferred and added to the principal balance of the loan. Option ARM loans are subject to payment recast, which converts the loan to a variable-rate fully amortizing loan upon meeting specified loan balance and anniversary date triggers. Prime Prime mortgage loans are made to borrowers with good credit records who meet specific underwriting requirements, including prescriptive requirements related to income and overall debt levels. New prime mortgage borrowers provide full documentation and generally have reliable payment histories. Subprime Subprime loans are loans that, prior to mid-2008, were offered to certain customers with one or more high risk characteristics, including but not limited to: (i) unreliable or poor payment histories; (ii) a high LTV ratio of greater than 80% (without borrower-paid mortgage insurance); (iii) a high debt-to-income ratio; (iv) an occupancy type for the loan is other than the borrower's primary residence; or (v) a history of delinquencies or late payments on the loan. MREL: Minimum requirements for own funds and eligible liabilities MSR: Mortgage servicing rights Multi-asset: Any fund or account that allocates assets under management to more than one asset class. NA: Data is not applicable or available for the period presented. NAV: Net Asset Value Net Capital Rule: Rule 15c3-1 under the Securities Exchange Act of 1934. Net charge-off/(recovery) rate: Represents net charge-offs/(recoveries) (annualized) divided by average retained loans for the reporting period. Net interchange income includes the following components:•Interchange income: Fees earned by credit and debit card issuers on sales transactions. •Rewards costs: The cost to the Firm for points earned by cardholders enrolled in credit card rewards programs generally tied to sales transactions.•Partner payments: Payments to co-brand credit card partners based on the cost of loyalty program rewards earned by cardholders on credit card transactions.Net mortgage servicing revenue: Includes operating revenue earned from servicing third-party mortgage loans, which is recognized over the period in which the service is provided; changes in the fair value of MSRs; the impact of risk management activities associated with MSRs; and gains and losses on securitization of excess mortgage servicing. Net mortgage servicing revenue also includes gains and losses on sales and lower of cost or fair value adjustments of certain repurchased loans insured by U.S. government agencies. Net revenue rate: Represents Card Services net revenue (annualized) expressed as a percentage of average loans for the period.Net yield on interest-earning assets: The average rate for interest-earning assets less the average rate paid for all sources of funds.NFA: National Futures AssociationNM: Not meaningfulNOL: Net operating loss Nonaccrual loans: Loans for which interest income is not recognized on an accrual basis. Loans (other than credit card loans and certain consumer loans insured by U.S. government agencies) are placed on nonaccrual status when full payment of principal and interest is not expected, regardless of delinquency status, or when principal and interest have been in default for a period of 90 days or more unless the loan is both well-secured and in the process of collection. Collateral-dependent loans are typically maintained on nonaccrual status. Nonperforming assets: Nonperforming assets include nonaccrual loans, nonperforming derivatives and certain assets acquired in loan satisfactions, predominantly real estate owned and other commercial and personal property.NSFR: Net Stable Funding RatioOAS: Option-adjusted spread OCC: Office of the Comptroller of the Currency OCI: Other comprehensive income/(loss)OPEB: Other postretirement employee benefit Net interchange income includes the following components: •Interchange income: Fees earned by credit and debit card issuers on sales transactions. •Rewards costs: The cost to the Firm for points earned by cardholders enrolled in credit card rewards programs generally tied to sales transactions. •Partner payments: Payments to co-brand credit card partners based on the cost of loyalty program rewards earned by cardholders on credit card transactions. Net mortgage servicing revenue: Includes operating revenue earned from servicing third-party mortgage loans, which is recognized over the period in which the service is provided; changes in the fair value of MSRs; the impact of risk management activities associated with MSRs; and gains and losses on securitization of excess mortgage servicing. Net mortgage servicing revenue also includes gains and losses on sales and lower of cost or fair value adjustments of certain repurchased loans insured by U.S. government agencies. Net revenue rate: Represents Card Services net revenue (annualized) expressed as a percentage of average loans for the period. Net yield on interest-earning assets: The average rate for interest-earning assets less the average rate paid for all sources of funds. NFA: National Futures Association NM: Not meaningful NOL: Net operating loss Nonaccrual loans: Loans for which interest income is not recognized on an accrual basis. Loans (other than credit card loans and certain consumer loans insured by U.S. government agencies) are placed on nonaccrual status when full payment of principal and interest is not expected, regardless of delinquency status, or when principal and interest have been in default for a period of 90 days or more unless the loan is both well-secured and in the process of collection. Collateral-dependent loans are typically maintained on nonaccrual status. Nonperforming assets: Nonperforming assets include nonaccrual loans, nonperforming derivatives and certain assets acquired in loan satisfactions, predominantly real estate owned and other commercial and personal property. NSFR: Net Stable Funding Ratio OAS: Option-adjusted spread OCC: Office of the Comptroller of the Currency OCI: Other comprehensive income/(loss) OPEB: Other postretirement employee benefit 324JPMorgan Chase & Co./2025 Form 10-K 324JPMorgan Chase & Co./2025 Form 10-K 324JPMorgan Chase & Co./2025 Form 10-K 324 JPMorgan Chase & Co./2025 Form 10-K --- ## Modified Risk: Protection sold - credit derivatives ratings(a)/maturity profile **Key changes:** - Updated: "Fair value of receivables(b) Fair value of payables(b) December 31, 2024(in millions)<1 year1-5 years>5 yearsTotal notional amountFair value of receivables(b)Fair value of payables(b)Net fair valueRisk rating of reference entityInvestment-grade$(135,950)$(277,052)$(33,379)$(446,381)$4,593 $(904)$3,689 Noninvestment-grade(42,149)(70,525)(2,042)(114,716)1,889 (1,738)151 Total$(178,099)$(347,577)$(35,421)$(561,097)$6,482 $(2,642)$3,840 Fair value of receivables(b) Fair value of payables(b) (a)The ratings scale is primarily based on external credit ratings defined by S&P and Moody's." - Updated: "JPMorgan Chase & Co./2025 Form 10-K217 JPMorgan Chase & Co./2025 Form 10-K217 JPMorgan Chase & Co./2025 Form 10-K217 JPMorgan Chase & Co./2025 Form 10-K 217" **Prior (2025):** Fair value of receivables(b) Fair value of payables(b) December 31, 2023(in millions)<1 year1-5 years>5 yearsTotal notional amountFair value of receivables(b)Fair value of payables(b)Net fair valueRisk rating of reference entityInvestment-grade$(89,981)$(263,834)$(29,470)$(383,285)$3,659 $(1,144)$2,515 Noninvestment-grade(31,419)(69,515)(4,799)(105,733)2,466 (1,583)883 Total$(121,400)$(333,349)$(34,269)$(489,018)$6,125 $(2,727)$3,398 Fair value of receivables(b) Fair value of payables(b) (a)The ratings scale is primarily based on external credit ratings defined by S&P and Moody's. (b)Amounts are shown on a gross basis, before the benefit of legally enforceable master netting agreements including cash collateral netting. 224JPMorgan Chase & Co./2024 Form 10-K 224JPMorgan Chase & Co./2024 Form 10-K 224JPMorgan Chase & Co./2024 Form 10-K 224 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** Fair value of receivables(b) Fair value of payables(b) December 31, 2024(in millions)<1 year1-5 years>5 yearsTotal notional amountFair value of receivables(b)Fair value of payables(b)Net fair valueRisk rating of reference entityInvestment-grade$(135,950)$(277,052)$(33,379)$(446,381)$4,593 $(904)$3,689 Noninvestment-grade(42,149)(70,525)(2,042)(114,716)1,889 (1,738)151 Total$(178,099)$(347,577)$(35,421)$(561,097)$6,482 $(2,642)$3,840 Fair value of receivables(b) Fair value of payables(b) (a)The ratings scale is primarily based on external credit ratings defined by S&P and Moody's. (b)Amounts are shown on a gross basis, before the benefit of legally enforceable master netting agreements including cash collateral netting. JPMorgan Chase & Co./2025 Form 10-K217 JPMorgan Chase & Co./2025 Form 10-K217 JPMorgan Chase & Co./2025 Form 10-K217 JPMorgan Chase & Co./2025 Form 10-K 217 --- ## Modified Risk: Management's discussion and analysis **Key changes:** - Updated: "CRITICAL ACCOUNTING ESTIMATES USED BY THE FIRM JPMorganChase's accounting policies and use of estimates are integral to understanding its reported results." - Added: "real GDP growth rate, U.S." - Updated: "HPI.Changes in the Firm's assumptions and forecasts of economic conditions could significantly affect its estimate of expected credit losses in the portfolio at the balance sheet date or lead to significant changes in the estimate from one reporting period to the next.It is difficult to estimate how potential changes in any one factor or input might affect the overall allowance for credit losses because management considers a wide variety of factors and inputs in estimating the allowance for credit losses." - Updated: "For example, compared to the Firm's central scenario shown on page 129 and in Note 13, the Firm's relative adverse scenario assumes an elevated U.S." **Prior (2025):** The Firm's allowance for credit losses represents management's estimate of expected credit losses over the remaining expected life of the Firm's financial assets measured at amortized cost and certain off-balance sheet lending-related commitments. The allowance for credit losses generally comprises: •The allowance for loan losses, which covers the Firm's retained loan portfolios (scored and risk-rated), •The allowance for lending-related commitments, and •The allowance for credit losses on investment securities. The allowance for credit losses involves significant judgment on a number of matters including development and weighting of macroeconomic forecasts, incorporation of historical loss experience, assessment of risk characteristics, assignment of risk ratings, valuation of collateral, and the determination of remaining expected life. Refer to Note 10 and Note 13 for further information on these judgments as well as the Firm's policies and methodologies used to determine the Firm's allowance for credit losses. One of the most significant judgments involved in estimating the Firm's allowance for credit losses relates to the macroeconomic forecasts used to estimate credit losses over the eight-quarter forecast period within the Firm's methodology. The eight-quarter forecast incorporates hundreds of macroeconomic variables ("MEVs") that are relevant for exposures across the Firm, with modeled credit losses being driven primarily by a subset of less than twenty variables. The specific variables that have the greatest effect on the modeled losses vary by portfolio and geography.•Key MEVs for the consumer portfolio include regional U.S. unemployment rates and U.S. HPI.•Key MEVs for the wholesale portfolio include U.S. unemployment, U.S. real GDP, U.S. equity prices, U.S. interest rates, U.S. corporate credit spreads, oil prices, U.S. commercial real estate prices and U.S. HPI.Changes in the Firm's assumptions and forecasts of economic conditions could significantly affect its estimate of expected credit losses in the portfolio at the balance sheet date or lead to significant changes in the estimate from one reporting period to the next.As a result of the First Republic acquisition, the Firm recorded an allowance for credit losses for the loans acquired and lending-related commitments assumed as of May 1, 2023. Due to differences in risk rating methodologies for the First Republic portfolio and the ongoing integration of products and systems, the allowance for credit losses for the acquired wholesale portfolio was initially measured based on similar risk characteristics from other facilities underwritten by the Firm. Starting in the second quarter of 2024, the acquired portfolio was incorporated into the Firm's modeled credit loss estimates and is now reflected in the wholesale sensitivity analysis below. Refer to Note 34 for additional information on the First Republic acquisition. It is difficult to estimate how potential changes in any one factor or input might affect the overall allowance for credit losses because management considers a wide variety of factors and inputs in estimating the allowance for credit losses. Changes in the factors and inputs considered may not occur at the same rate and may not be consistent across all geographies or product types, and changes in factors and inputs may be directionally inconsistent, such that improvement in one factor or input may offset deterioration in others.To consider the impact of a hypothetical alternate macroeconomic forecast, the Firm compared the modeled credit losses determined using its central and relative adverse macroeconomic scenarios, which are two of the five scenarios considered in estimating the allowances for loan losses and lending-related commitments. The central and relative adverse scenarios each included a full suite of MEVs, but differed in the levels, paths and peaks/troughs of those variables over the eight-quarter forecast period. For example, compared to the Firm's central scenario shown on page 137 and in Note 13, the Firm's relative adverse scenario assumes an elevated U.S. losses being driven primarily by a subset of less than twenty variables. The specific variables that have the greatest effect on the modeled losses vary by portfolio and geography. •Key MEVs for the consumer portfolio include regional U.S. unemployment rates and U.S. HPI. •Key MEVs for the wholesale portfolio include U.S. unemployment, U.S. real GDP, U.S. equity prices, U.S. interest rates, U.S. corporate credit spreads, oil prices, U.S. commercial real estate prices and U.S. HPI. Changes in the Firm's assumptions and forecasts of economic conditions could significantly affect its estimate of expected credit losses in the portfolio at the balance sheet date or lead to significant changes in the estimate from one reporting period to the next. As a result of the First Republic acquisition, the Firm recorded an allowance for credit losses for the loans acquired and lending-related commitments assumed as of May 1, 2023. Due to differences in risk rating methodologies for the First Republic portfolio and the ongoing integration of products and systems, the allowance for credit losses for the acquired wholesale portfolio was initially measured based on similar risk characteristics from other facilities underwritten by the Firm. Starting in the second quarter of 2024, the acquired portfolio was incorporated into the Firm's modeled credit loss estimates and is now reflected in the wholesale sensitivity analysis below. Refer to Note 34 for additional information on the First Republic acquisition. It is difficult to estimate how potential changes in any one factor or input might affect the overall allowance for credit losses because management considers a wide variety of factors and inputs in estimating the allowance for credit losses. Changes in the factors and inputs considered may not occur at the same rate and may not be consistent across all geographies or product types, and changes in factors and inputs may be directionally inconsistent, such that improvement in one factor or input may offset deterioration in others. To consider the impact of a hypothetical alternate macroeconomic forecast, the Firm compared the modeled credit losses determined using its central and relative adverse macroeconomic scenarios, which are two of the five scenarios considered in estimating the allowances for loan losses and lending-related commitments. The central and relative adverse scenarios each included a full suite of MEVs, but differed in the levels, paths and peaks/troughs of those variables over the eight-quarter forecast period. For example, compared to the Firm's central scenario shown on page 137 and in Note 13, the Firm's relative adverse scenario assumes an elevated U.S. JPMorgan Chase & Co./2024 Form 10-K161 JPMorgan Chase & Co./2024 Form 10-K161 JPMorgan Chase & Co./2024 Form 10-K161 JPMorgan Chase & Co./2024 Form 10-K 161 **Current (2026):** CRITICAL ACCOUNTING ESTIMATES USED BY THE FIRM JPMorganChase's accounting policies and use of estimates are integral to understanding its reported results. The Firm's most complex accounting estimates require management's judgment to ascertain the appropriate carrying value of assets and liabilities. The Firm has established policies and control procedures intended to ensure that estimation methods, including any judgments made as part of such methods, are well-controlled, independently reviewed and applied consistently from period to period. The methods used and judgments made reflect, among other factors, the nature of the assets or liabilities and the related business and risk management strategies, which may vary across the Firm's businesses and portfolios. In addition, the policies and procedures are intended to ensure that the process for changing methodologies occurs in an appropriate manner. The Firm believes its estimates for determining the carrying value of its assets and liabilities are appropriate. The following is a brief description of the Firm's critical accounting estimates involving significant judgments.Allowance for credit lossesThe Firm's allowance for credit losses represents management's estimate of expected credit losses over the remaining expected life of the Firm's financial assets measured at amortized cost and certain off-balance sheet lending-related commitments. The allowance for credit losses generally comprises:•The allowance for loan losses, which covers the Firm's retained loan portfolios (scored and risk-rated),•The allowance for lending-related commitments, and•The allowance for credit losses on investment securities.The allowance for credit losses involves significant judgment on a number of matters including development and weighting of macroeconomic forecasts, incorporation of historical loss experience, assessment of risk characteristics, assignment of risk ratings, valuation of collateral, and the determination of remaining expected life. Refer to Notes 10 and 13 for further information on these judgments as well as the Firm's policies and methodologies used to determine the Firm's allowance for credit losses.One of the most significant judgments involved in estimating the Firm's allowance for credit losses relates to the macroeconomic forecasts used to estimate credit losses over the eight-quarter forecast period within the Firm's methodology. The eight-quarter forecast incorporates hundreds of macroeconomic variables ("MEVs") that are relevant for exposures across the Firm, with modeled credit losses being driven primarily by a subset of less than twenty variables. The specific variables that have the greatest effect on the modeled losses vary by portfolio and geography.•Key MEVs for the consumer portfolio include regional U.S. unemployment rates and U.S. HPI.•Key MEVs for the wholesale portfolio include U.S. unemployment, U.S. real GDP growth rate, U.S. equity prices, U.S. interest rates, U.S. corporate credit spreads, oil prices, U.S. commercial real estate prices and U.S. HPI.Changes in the Firm's assumptions and forecasts of economic conditions could significantly affect its estimate of expected credit losses in the portfolio at the balance sheet date or lead to significant changes in the estimate from one reporting period to the next.It is difficult to estimate how potential changes in any one factor or input might affect the overall allowance for credit losses because management considers a wide variety of factors and inputs in estimating the allowance for credit losses. Changes in the factors and inputs considered may not occur at the same rate and may not be consistent across all geographies or product types, and changes in factors and inputs may be directionally inconsistent, such that improvement in one factor or input may offset deterioration in others.To consider the impact of a hypothetical alternate macroeconomic forecast, the Firm compared the modeled credit losses determined using its central and relative adverse macroeconomic scenarios, which are two of the five scenarios considered in estimating the allowances for loan losses and lending-related commitments. The central and relative adverse scenarios each included a full suite of MEVs, but differed in the levels, paths and peaks/troughs of those variables over the eight-quarter forecast period. For example, compared to the Firm's central scenario shown on page 129 and in Note 13, the Firm's relative adverse scenario assumes an elevated U.S. unemployment rate, averaging approximately 2.0% higher over the eight-quarter forecast, with a peak difference of approximately 2.8% in the fourth quarter of 2026.This analysis is not intended to estimate expected future changes in the allowance for credit losses, for a number of reasons, including:•The allowance as of December 31, 2025, reflects credit losses beyond those estimated under the central scenario due to the weight placed on the adverse scenarios.•The impacts of changes in many MEVs are both interrelated and nonlinear, so the results of this JPMorganChase's accounting policies and use of estimates are integral to understanding its reported results. The Firm's most complex accounting estimates require management's judgment to ascertain the appropriate carrying value of assets and liabilities. The Firm has established policies and control procedures intended to ensure that estimation methods, including any judgments made as part of such methods, are well-controlled, independently reviewed and applied consistently from period to period. The methods used and judgments made reflect, among other factors, the nature of the assets or liabilities and the related business and risk management strategies, which may vary across the Firm's businesses and portfolios. In addition, the policies and procedures are intended to ensure that the process for changing methodologies occurs in an appropriate manner. The Firm believes its estimates for determining the carrying value of its assets and liabilities are appropriate. The following is a brief description of the Firm's critical accounting estimates involving significant judgments.Allowance for credit lossesThe Firm's allowance for credit losses represents management's estimate of expected credit losses over the remaining expected life of the Firm's financial assets measured at amortized cost and certain off-balance sheet lending-related commitments. The allowance for credit losses generally comprises:•The allowance for loan losses, which covers the Firm's retained loan portfolios (scored and risk-rated),•The allowance for lending-related commitments, and•The allowance for credit losses on investment securities.The allowance for credit losses involves significant judgment on a number of matters including development and weighting of macroeconomic forecasts, incorporation of historical loss experience, assessment of risk characteristics, assignment of risk ratings, valuation of collateral, and the determination of remaining expected life. Refer to Notes 10 and 13 for further information on these judgments as well as the Firm's policies and methodologies used to determine the Firm's allowance for credit losses.One of the most significant judgments involved in estimating the Firm's allowance for credit losses relates to the macroeconomic forecasts used to estimate credit losses over the eight-quarter forecast period within the Firm's methodology. The eight-quarter forecast incorporates hundreds of macroeconomic variables ("MEVs") that are relevant for exposures across the Firm, with modeled credit JPMorganChase's accounting policies and use of estimates are integral to understanding its reported results. The Firm's most complex accounting estimates require management's judgment to ascertain the appropriate carrying value of assets and liabilities. The Firm has established policies and control procedures intended to ensure that estimation methods, including any judgments made as part of such methods, are well-controlled, independently reviewed and applied consistently from period to period. The methods used and judgments made reflect, among other factors, the nature of the assets or liabilities and the related business and risk management strategies, which may vary across the Firm's businesses and portfolios. In addition, the policies and procedures are intended to ensure that the process for changing methodologies occurs in an appropriate manner. The Firm believes its estimates for determining the carrying value of its assets and liabilities are appropriate. The following is a brief description of the Firm's critical accounting estimates involving significant judgments. --- ## Modified Risk: Real Estate **Key changes:** - Updated: "Real Estate exposure was $224.9 billion as of December 31, 2025." **Prior (2025):** Real Estate exposure was $207.1 billion as of December 31, 2024. Criticized exposure increased by $3.2 billion from $9.2 billion at December 31, 2023 to $12.4 billion at December 31, 2024, predominantly driven by downgrades, primarily in Multifamily and Office. December 31, 2024(in millions, except ratios)Loans and Lending-related CommitmentsDerivative ReceivablesCredit exposure% Investment-grade% Drawn(d)Multifamily(a)$124,074 $7 $124,081 77 %92 %Industrial19,092 17 19,109 65 72 Other Income Producing Properties(b)16,411 158 16,569 50 63 Office16,331 29 16,360 47 81 Services and Non Income Producing14,047 57 14,104 62 46 Retail12,230 23 12,253 77 75 Lodging4,555 19 4,574 31 53 Total Real Estate Exposure(c)$206,740 $310 $207,050 69 %82 %December 31, 2023(in millions, except ratios)Loans and Lending-related CommitmentsDerivative ReceivablesCredit exposure% Investment-grade% Drawn(d)Multifamily(a)$121,946 $21 $121,967 79 %90 %Industrial20,254 18 20,272 70 72 Other Income Producing Properties(b)15,542 208 15,750 55 63 Office16,462 32 16,494 51 81 Services and Non Income Producing16,145 74 16,219 62 46 Retail12,763 48 12,811 75 73 Lodging4,729 19 4,748 30 48 Total Real Estate Exposure$207,841 $420 $208,261 71 %80 % % Drawn(d) Multifamily(a) Other Income Producing Properties(b) Office **Current (2026):** Real Estate exposure was $224.9 billion as of December 31, 2025. Criticized exposure decreased by $714 million from $12.4 billion at December 31, 2024 to $11.7 billion at December 31, 2025, driven by net portfolio activity, predominantly offset by net downgrades. December 31, 2025(in millions, except ratios)Loans and lending-related commitmentsDerivative receivablesCredit exposure% Investment-grade% Drawn(d)Multifamily(a)$128,864 $25 $128,889 78 %91 %Other Income Producing Properties(b)23,390 229 23,619 46 53 Services and Non Income Producing20,325 130 20,455 63 35 Industrial19,541 13 19,554 67 69 Office15,016 39 15,055 47 80 Retail12,879 33 12,912 79 74 Lodging4,366 8 4,374 26 48 Total Real Estate Exposure(c)$224,381 $477 $224,858 69 %77 %December 31, 2024(in millions, except ratios)Loans and lending-related commitmentsDerivative receivablesCredit exposure% Investment-grade% Drawn(d)Multifamily(a)$124,074 $7 $124,081 77 %92 %Other Income Producing Properties(b)16,411 158 16,569 50 63 Services and Non Income Producing14,047 57 14,104 62 46 Industrial19,092 17 19,109 65 72 Office16,331 29 16,360 47 81 Retail12,230 23 12,253 77 75 Lodging4,555 19 4,574 31 53 Total Real Estate Exposure$206,740 $310 $207,050 69 %82 % --- ## Modified Risk: JPMorganChase faces substantial legal and operational risks related to the processing and safeguarding of personal information. **Key changes:** - Updated: "JPMorganChase's businesses and operations are subject to applicable law globally related to the collection, use, sharing, storage and protection of personal information of individuals." **Prior (2025):** JPMorganChase's businesses and operations are subject to complex and evolving laws, rules and regulations, both within and outside the U.S., governing the privacy and protection of personal information of individuals. Governmental authorities around the world have adopted and are considering the adoption of numerous legislative and regulatory initiatives concerning privacy, data protection and security. Litigation or enforcement actions relating to these laws, rules and regulations could result in fines or orders requiring that JPMorganChase change its data-related practices, which could have an adverse effect on JPMorganChase's ability to provide products and otherwise harm its business operations. Implementing processes relating to JPMorganChase's collection, use, sharing and storage of personal information to comply with all applicable laws, rules and regulations in all relevant jurisdictions, including where the laws of different jurisdictions are in conflict, can: •increase JPMorganChase's compliance and operating costs •hinder the development of new products or services, curtail the offering of existing products or services, or affect how products and services are offered to clients and customers •demand significant oversight by JPMorganChase's management, and •require JPMorganChase to structure its businesses, operations and systems in less efficient ways. Not all of JPMorganChase's clients, customers, vendors, counterparties and other external parties may have appropriate controls in place to protect the confidentiality, integrity or availability of the 26 26 26 26 information exchanged between them and JPMorganChase, particularly where information is transmitted by electronic means. JPMorganChase could be exposed to litigation or regulatory fines, penalties or other sanctions if personal information of clients, customers, employees or others were to be mishandled or misused, such as situations where such information is:•erroneously provided to parties who are not permitted to have the information, or•intercepted or otherwise compromised by unauthorized third parties.The increasing sophistication of artificial intelligence technologies poses a greater risk of identity fraud, as malicious actors may exploit artificial intelligence to create convincing false identities or manipulate verification processes. This challenge necessitates ongoing enhancements to client verification systems and security protocols to prevent unauthorized access and protect sensitive client information. Failure to manage these risks or to implement effective countermeasures could lead to unauthorized transactions, financial losses, reputational damage and increased regulatory scrutiny.Concerns regarding the effectiveness of JPMorganChase's measures to safeguard personal information, or the perception that those measures are inadequate, could cause JPMorganChase to lose existing or potential clients and customers or employees, and thereby reduce JPMorganChase's revenues. Furthermore, any failure or perceived failure by JPMorganChase to comply with applicable privacy or data protection laws, rules and regulations, or any failure to appropriately calibrate, manage and monitor access by employees or third parties to personal information, could subject JPMorganChase to inquiries, examinations and investigations that could result in requirements to modify or cease certain operations or practices, significant liabilities or regulatory fines, penalties or other sanctions. Any of these could damage JPMorganChase's reputation and otherwise adversely affect its businesses.In recent years, well-publicized incidents involving the inappropriate collection, use, sharing or storage of personal information have led to expanded governmental scrutiny of practices relating to the processing or safeguarding of personal information by companies in the U.S. and other countries. That scrutiny has in some cases resulted in, and could in the future lead to, the adoption of stricter laws, rules and regulations relating to the collection, use, sharing and storage of personal information. These types of laws, rules and regulations can prohibit or significantly restrict financial services firms such as JPMorganChase from transferring information across national borders or sharing information among affiliates or with third parties such as vendors, thereby increase compliance costs and operational risk, or restrict JPMorganChase's use of personal information when developing or offering products or services to customers. Some countries are considering or have adopted legislation implementing data protection requirements or requiring local storage and processing of data which could increase the cost and complexity of JPMorganChase's delivery of products and services. These restrictions could also inhibit JPMorganChase's development or marketing of certain products or services, or increase the costs of offering them to customers.JPMorganChase's operations, results and reputation could be harmed by occurrences of extraordinary events beyond its control.JPMorganChase's business and operational systems could be seriously disrupted, and its reputation could be harmed, by events or contributing factors that are wholly or partially beyond its control, including material instances of:•cyber attacks•security breaches of its physical premises, including threats to health and safety•power, telecommunications or internet outages, or shutdowns of mass transit•failure of, or loss of access to, technology or operational systems, including any resulting loss of critical data•interruption of service from third-party service providers •damage to or loss of property or assets of JPMorganChase or third parties, and any consequent injuries, including in connection with any construction projects undertaken by JPMorganChase•effects of climate change•natural disasters or severe weather conditions•accidents such as explosions or structural failures•health emergencies, the spread of infectious diseases, epidemics or pandemics, or•events arising from local or larger-scale civil or political unrest, any outbreak or escalation of hostilities, or terrorist acts.JPMorganChase operates a Firmwide resiliency framework that is intended to enable it to prepare for and adapt to changing conditions and withstand and recover from, and address any adverse effects on its operations caused by, disruptions that may impact critical business functions and supporting assets, including its staff, technology, data and facilities and those of third-party service providers. Although not every form of disruption can be anticipated or defended against, JPMorganChase information exchanged between them and JPMorganChase, particularly where information is transmitted by electronic means. JPMorganChase could be exposed to litigation or regulatory fines, penalties or other sanctions if personal information of clients, customers, employees or others were to be mishandled or misused, such as situations where such information is:•erroneously provided to parties who are not permitted to have the information, or•intercepted or otherwise compromised by unauthorized third parties.The increasing sophistication of artificial intelligence technologies poses a greater risk of identity fraud, as malicious actors may exploit artificial intelligence to create convincing false identities or manipulate verification processes. This challenge necessitates ongoing enhancements to client verification systems and security protocols to prevent unauthorized access and protect sensitive client information. Failure to manage these risks or to implement effective countermeasures could lead to unauthorized transactions, financial losses, reputational damage and increased regulatory scrutiny.Concerns regarding the effectiveness of JPMorganChase's measures to safeguard personal information, or the perception that those measures are inadequate, could cause JPMorganChase to lose existing or potential clients and customers or employees, and thereby reduce JPMorganChase's revenues. Furthermore, any failure or perceived failure by JPMorganChase to comply with applicable privacy or data protection laws, rules and regulations, or any failure to appropriately calibrate, manage and monitor access by employees or third parties to personal information, could subject JPMorganChase to inquiries, examinations and investigations that could result in requirements to modify or cease certain operations or practices, significant liabilities or regulatory fines, penalties or other sanctions. Any of these could damage JPMorganChase's reputation and otherwise adversely affect its businesses.In recent years, well-publicized incidents involving the inappropriate collection, use, sharing or storage of personal information have led to expanded governmental scrutiny of practices relating to the processing or safeguarding of personal information by companies in the U.S. and other countries. That scrutiny has in some cases resulted in, and could in the future lead to, the adoption of stricter laws, rules and regulations relating to the collection, use, sharing and storage of personal information. These types of laws, rules and regulations can prohibit or significantly restrict financial services firms such as JPMorganChase from transferring information across national borders or sharing information among affiliates or with third parties such as vendors, thereby information exchanged between them and JPMorganChase, particularly where information is transmitted by electronic means. JPMorganChase could be exposed to litigation or regulatory fines, penalties or other sanctions if personal information of clients, customers, employees or others were to be mishandled or misused, such as situations where such information is: •erroneously provided to parties who are not permitted to have the information, or •intercepted or otherwise compromised by unauthorized third parties. The increasing sophistication of artificial intelligence technologies poses a greater risk of identity fraud, as malicious actors may exploit artificial intelligence to create convincing false identities or manipulate verification processes. This challenge necessitates ongoing enhancements to client verification systems and security protocols to prevent unauthorized access and protect sensitive client information. Failure to manage these risks or to implement effective countermeasures could lead to unauthorized transactions, financial losses, reputational damage and increased regulatory scrutiny. Concerns regarding the effectiveness of JPMorganChase's measures to safeguard personal information, or the perception that those measures are inadequate, could cause JPMorganChase to lose existing or potential clients and customers or employees, and thereby reduce JPMorganChase's revenues. Furthermore, any failure or perceived failure by JPMorganChase to comply with applicable privacy or data protection laws, rules and regulations, or any failure to appropriately calibrate, manage and monitor access by employees or third parties to personal information, could subject JPMorganChase to inquiries, examinations and investigations that could result in requirements to modify or cease certain operations or practices, significant liabilities or regulatory fines, penalties or other sanctions. Any of these could damage JPMorganChase's reputation and otherwise adversely affect its businesses. In recent years, well-publicized incidents involving the inappropriate collection, use, sharing or storage of personal information have led to expanded governmental scrutiny of practices relating to the processing or safeguarding of personal information by companies in the U.S. and other countries. That scrutiny has in some cases resulted in, and could in the future lead to, the adoption of stricter laws, rules and regulations relating to the collection, use, sharing and storage of personal information. These types of laws, rules and regulations can prohibit or significantly restrict financial services firms such as JPMorganChase from transferring information across national borders or sharing information among affiliates or with third parties such as vendors, thereby increase compliance costs and operational risk, or restrict JPMorganChase's use of personal information when developing or offering products or services to customers. Some countries are considering or have adopted legislation implementing data protection requirements or requiring local storage and processing of data which could increase the cost and complexity of JPMorganChase's delivery of products and services. These restrictions could also inhibit JPMorganChase's development or marketing of certain products or services, or increase the costs of offering them to customers.JPMorganChase's operations, results and reputation could be harmed by occurrences of extraordinary events beyond its control.JPMorganChase's business and operational systems could be seriously disrupted, and its reputation could be harmed, by events or contributing factors that are wholly or partially beyond its control, including material instances of:•cyber attacks•security breaches of its physical premises, including threats to health and safety•power, telecommunications or internet outages, or shutdowns of mass transit•failure of, or loss of access to, technology or operational systems, including any resulting loss of critical data•interruption of service from third-party service providers •damage to or loss of property or assets of JPMorganChase or third parties, and any consequent injuries, including in connection with any construction projects undertaken by JPMorganChase•effects of climate change•natural disasters or severe weather conditions•accidents such as explosions or structural failures•health emergencies, the spread of infectious diseases, epidemics or pandemics, or•events arising from local or larger-scale civil or political unrest, any outbreak or escalation of hostilities, or terrorist acts.JPMorganChase operates a Firmwide resiliency framework that is intended to enable it to prepare for and adapt to changing conditions and withstand and recover from, and address any adverse effects on its operations caused by, disruptions that may impact critical business functions and supporting assets, including its staff, technology, data and facilities and those of third-party service providers. Although not every form of disruption can be anticipated or defended against, JPMorganChase increase compliance costs and operational risk, or restrict JPMorganChase's use of personal information when developing or offering products or services to customers. Some countries are considering or have adopted legislation implementing data protection requirements or requiring local storage and processing of data which could increase the cost and complexity of JPMorganChase's delivery of products and services. These restrictions could also inhibit JPMorganChase's development or marketing of certain products or services, or increase the costs of offering them to customers. **Current (2026):** JPMorganChase's businesses and operations are subject to applicable law globally related to the collection, use, sharing, storage and protection of personal information of individuals. Complying with these applicable laws could: •hinder development, curtail offerings or affect pricing and delivery methods of products and services •restrict JPMorganChase from transferring information across national borders or sharing information among affiliates or with third parties such as vendors, thereby increasing compliance costs and operational risk •present situations where the applicable law of one country conflicts with that of another, and •require JPMorganChase to structure its businesses, operations and systems in less efficient or more costly ways, including with respect to the local storage and processing of data. JPMorganChase could face legal proceedings, including governmental investigations or enforcement actions, if personal information is mishandled, including if unauthorized parties receive, intercept, or compromise it, if JPMorganChase fails or is perceived to have failed to comply with applicable law, or if JPMorganChase or its third-party vendors fail to protect personal information appropriately. These actions could require JPMorganChase to modify or cease operations or could result in other penalties. Furthermore, concerns regarding the effectiveness of JPMorganChase's measures to safeguard personal information, or the perception that those measures are inadequate, could cause JPMorganChase to lose clients, customers or employees, and thereby reduce JPMorganChase's revenues. Any of these factors could cause reputational harm and otherwise adversely affect JPMorganChase's businesses.The growing sophistication of technology poses a heightened risk of identity fraud, as malicious actors may exploit technology to create convincing false identities or manipulate verification processes. Failure to manage these risks or to implement effective countermeasures could lead to unauthorized transactions, financial losses, increased regulatory scrutiny and reputational harm. In addition, greater government scrutiny of practices related to the handling of personal information has in some cases resulted in, and could in the future lead to, the adoption of applicable law in the U.S. and elsewhere that is stricter and could result in JPMorganChase incurring higher compliance costs or constraining its ability to offer certain products and services to customers. JPMorganChase's operations, results and reputation could be harmed by occurrences of extraordinary events beyond its control.JPMorganChase's business and operations could be seriously disrupted, and its reputation could be harmed, by events or contributing factors that are wholly or partially beyond its control, including material instances of:•cyber attacks•security breaches of its physical premises, including threats to health and safety•utility or telecommunications failures, internet outages or shutdowns of mass transit•failure of, or loss of access to, technology or operational systems, including any resulting loss of critical data•interruption of service from third-party service providers, including financial market infrastructures•damage to or loss of property or assets of JPMorganChase or third parties, and any consequent injuries, including in connection with any construction projects undertaken by JPMorganChase•failure or perceived failure by clients, customers or counterparties of JPMorganChase, or by other parties, including newly-acquired businesses, companies in which JPMorganChase has made principal investments, parties to joint ventures with JPMorganChase and vendors with which to have failed to comply with applicable law, or if JPMorganChase or its third-party vendors fail to protect personal information appropriately. These actions could require JPMorganChase to modify or cease operations or could result in other penalties. Furthermore, concerns regarding the effectiveness of JPMorganChase's measures to safeguard personal information, or the perception that those measures are inadequate, could cause JPMorganChase to lose clients, customers or employees, and thereby reduce JPMorganChase's revenues. Any of these factors could cause reputational harm and otherwise adversely affect JPMorganChase's businesses. The growing sophistication of technology poses a heightened risk of identity fraud, as malicious actors may exploit technology to create convincing false identities or manipulate verification processes. Failure to manage these risks or to implement effective countermeasures could lead to unauthorized transactions, financial losses, increased regulatory scrutiny and reputational harm. In addition, greater government scrutiny of practices related to the handling of personal information has in some cases resulted in, and could in the future lead to, the adoption of applicable law in the U.S. and elsewhere that is stricter and could result in JPMorganChase incurring higher compliance costs or constraining its ability to offer certain products and services to customers. --- ## Modified Risk: Selected balance sheet data (period-end) **Key changes:** - Updated: "Refer to Explanation and Reconciliation of the Firm's Use of Non-GAAP Financial Measures on pages 59-61 for a discussion of these measures." - Updated: "(d)As of December 31, 2025, the Advanced risk-based ratios became more binding on the Firm than the Standardized risk-based ratios." **Prior (2025):** (a)Pre-provision profit, TBVPS and ROTCE are each non-GAAP financial measures. Tangible common equity ("TCE") is also a non-GAAP financial measure. Refer to Explanation and Reconciliation of the Firm's Use of Non-GAAP Financial Measures on pages 67-69 for a discussion of these measures. (b)For the years ended December 31, 2024, 2023 and 2022, the percentage represents average ratios for the three months ended December 31, 2024, 2023 and 2022. (c)The ratios reflect the Current Expected Credit Losses ("CECL") capital transition provisions. Refer to Note 27 for additional information. (d)Reflects the Firm's ratios under the Basel III Standardized approach. Refer to Capital Risk Management on pages 97-107 for additional information. (e)Total net revenue included a $7.9 billion net gain related to Visa shares, and total noninterest expense included a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation, both recorded in the second quarter of 2024. Refer to Executive Overview on pages 54-58, and Notes 2 and 6 for additional information on the exchange offer for Visa Class B-1 common stock. 50JPMorgan Chase & Co./2024 Form 10-K 50JPMorgan Chase & Co./2024 Form 10-K 50JPMorgan Chase & Co./2024 Form 10-K 50 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** (a)Pre-provision profit, TBVPS and ROTCE are each non-GAAP financial measures. Tangible common equity ("TCE") is also a non-GAAP financial measure. Refer to Explanation and Reconciliation of the Firm's Use of Non-GAAP Financial Measures on pages 59-61 for a discussion of these measures. (b)For the years ended December 31, 2025, 2024 and 2023, the percentage represents average ratios for the three months ended December 31, 2025, 2024 and 2023. (c)As of January 1, 2025, the benefit from the Current Expected Credit Losses ("CECL") capital transition provision had been fully phased out. For the years ended December 31, 2024 and 2023, the ratios reflected the CECL capital transition provisions. Refer to Note 27 for additional information. (d)As of December 31, 2025, the Advanced risk-based ratios became more binding on the Firm than the Standardized risk-based ratios. Refer to Capital Risk Management on pages 89-99 for additional information. (e)Includes a provision for lending-related commitments of $2.2 billion related to the Apple Card transaction. Refer to Executive Overview on page 47 for additional information. (f)Includes a decrease of approximately 25 basis points under the Standardized approach related to the Apple Card transaction. Refer to Capital Risk Management on pages 89-99 for additional information. (g)Total net revenue included a $7.9 billion net gain related to Visa shares, and total noninterest expense included a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation, both recorded in the second quarter of 2024. Refer to Note 6 for additional information. 44JPMorgan Chase & Co./2025 Form 10-K 44JPMorgan Chase & Co./2025 Form 10-K 44JPMorgan Chase & Co./2025 Form 10-K 44 JPMorgan Chase & Co./2025 Form 10-K --- ## Modified Risk: Note 17 - Deposits **Key changes:** - Updated: "As of December 31, 2025 and 2024, noninterest-bearing and interest-bearing deposits were as follows: December 31, (in millions)20252024U.S." - Updated: "As of December 31, 2025 and 2024, time deposits in denominations that met or exceeded the insured limit were as follows: December 31, (in millions)20252024U.S." - Updated: "(a) As of December 31, 2025, the remaining maturities of interest-bearing time deposits were as follows: December 31,(in millions) U.S.Non-U.S.Total2026$223,575 $85,868 $309,443 2027746 - 746 2028195 - 195 2029612 - 612 2030156 - 156 After 5 years130 118 248 Total$225,414 $85,986 $311,400 December 31, (in millions) JPMorgan Chase & Co./2025 Form 10-K277 JPMorgan Chase & Co./2025 Form 10-K277 JPMorgan Chase & Co./2025 Form 10-K277 JPMorgan Chase & Co./2025 Form 10-K 277" **Prior (2025):** As of December 31, 2024 and 2023, noninterest-bearing and interest-bearing deposits were as follows: December 31, (in millions)20242023U.S. officesNoninterest-bearing (included $28,904 and $75,393 at fair value)(a)$592,500 $643,748 Interest-bearing (included $1,101 and $573 at fair value)(a)1,345,914 1,303,100 Total deposits in U.S. offices1,938,414 1,946,848 Non-U.S. officesNoninterest-bearing (included $2,255 and $1,737 at fair value)(a)26,806 23,097 Interest-bearing (included $1,508 and $681 at fair value)(a)440,812 430,743 Total deposits in non-U.S. offices467,618 453,840 Total deposits$2,406,032 $2,400,688 Noninterest-bearing (included $28,904 and $75,393 at fair value)(a) Interest-bearing (included $1,101 and $573 at fair value)(a) Noninterest-bearing (included $2,255 and $1,737 at fair value)(a) Interest-bearing (included $1,508 and $681 at fair value)(a) (a)Includes structured notes classified as deposits for which the fair value option has been elected. Refer to Note 3 for further discussion. As of December 31, 2024 and 2023, time deposits in denominations that met or exceeded the insured limit were as follows: December 31, (in millions)20242023U.S. offices $149,239 $132,654 Non-U.S. offices(a)92,639 90,187 Total$241,878 $222,841 Non-U.S. offices(a) (a)Represents all time deposits in non-U.S. offices as these deposits typically exceed the insured limit. (a) As of December 31, 2024, the remaining maturities of interest-bearing time deposits were as follows: December 31,(in millions) U.S.Non-U.S.Total2025$222,676 $89,427 $312,103 2026749 87 836 2027482 2 484 2028149 18 167 2029314 721 1,035 After 5 years162 129 291 Total$224,532 $90,384 $314,916 December 31, (in millions) JPMorgan Chase & Co./2024 Form 10-K285 JPMorgan Chase & Co./2024 Form 10-K285 JPMorgan Chase & Co./2024 Form 10-K285 JPMorgan Chase & Co./2024 Form 10-K 285 **Current (2026):** As of December 31, 2025 and 2024, noninterest-bearing and interest-bearing deposits were as follows: December 31, (in millions)20252024U.S. officesNoninterest-bearing (included $16,610 and $28,904 at fair value)(a)$583,342 $592,500 Interest-bearing (included $1,085 and $1,101 at fair value)(a)1,452,729 1,345,914 Total deposits in U.S. offices2,036,071 1,938,414 Non-U.S. officesNoninterest-bearing (included $3,099 and $2,255 at fair value)(a)37,057 26,806 Interest-bearing (included $136 and $1,508 at fair value)(a)486,192 440,812 Total deposits in non-U.S. offices523,249 467,618 Total deposits$2,559,320 $2,406,032 Noninterest-bearing (included $16,610 and $28,904 at fair value)(a) Interest-bearing (included $1,085 and $1,101 at fair value)(a) Noninterest-bearing (included $3,099 and $2,255 at fair value)(a) Interest-bearing (included $136 and $1,508 at fair value)(a) (a)Includes structured notes classified as deposits for which the fair value option has been elected. Refer to Note 3 for further discussion. As of December 31, 2025 and 2024, time deposits in denominations that met or exceeded the insured limit were as follows: December 31, (in millions)20252024U.S. offices $155,114 $149,239 Non-U.S. offices(a)89,085 92,639 Total$244,199 $241,878 Non-U.S. offices(a) (a)Represents all time deposits in non-U.S. offices as these deposits typically exceed the insured limit. (a) As of December 31, 2025, the remaining maturities of interest-bearing time deposits were as follows: December 31,(in millions) U.S.Non-U.S.Total2026$223,575 $85,868 $309,443 2027746 - 746 2028195 - 195 2029612 - 612 2030156 - 156 After 5 years130 118 248 Total$225,414 $85,986 $311,400 December 31, (in millions) JPMorgan Chase & Co./2025 Form 10-K277 JPMorgan Chase & Co./2025 Form 10-K277 JPMorgan Chase & Co./2025 Form 10-K277 JPMorgan Chase & Co./2025 Form 10-K 277 --- ## Modified Risk: Income before income tax expense **Key changes:** - Updated: "(a)Included taxable-equivalent adjustments primarily from income tax credits from investments in alternative energy, affordable housing and new markets, income from tax-exempt securities and loans, and the related amortization and other tax benefits of the investments in alternative energy and affordable housing of $2.9 billion, $2.8 billion and $4.0 billion for the years ended December 31, 2025, 2024 and 2023, respectively." - Updated: "Refer to Notes 1, 6, 14 and 25 for additional information.Selected income statement dataYear ended December 31,(in millions, except ratios)202520242023Financial ratiosReturn on equity18 %18 %14 %Overhead ratio49 50 53 Compensation expense aspercentage of total net revenue25 26 27 Revenue by businessInvestment Banking$10,198$9,636$7,076Payments19,33118,08517,818Lending7,6017,4706,896Other676107Total Banking & Payments37,13635,26731,897Fixed Income Markets22,53220,06619,180Equity Markets13,2509,9418,784Securities Services5,5995,0844,772Credit Adjustments & Other(a)(63)(244)(280)Total Markets & Securities Services41,31834,84732,456Total net revenue$78,454 $70,114$64,353 (a)Consists primarily of centrally-managed credit valuation adjustments ("CVA"), funding valuation adjustments ("FVA") on derivatives, other valuation adjustments, and certain components of fair value option elected liabilities, which are primarily reported in principal transactions revenue." - Updated: "(a)Included taxable-equivalent adjustments primarily from income tax credits from investments in alternative energy, affordable housing and new markets, income from tax-exempt securities and loans, and the related amortization and other tax benefits of the investments in alternative energy and affordable housing of $2.9 billion, $2.8 billion and $4.0 billion for the years ended December 31, 2025, 2024 and 2023, respectively." - Updated: "Selected income statement dataYear ended December 31,(in millions, except ratios)202520242023Financial ratiosReturn on equity18 %18 %14 %Overhead ratio49 50 53 Compensation expense aspercentage of total net revenue25 26 27 Revenue by businessInvestment Banking$10,198$9,636$7,076Payments19,33118,08517,818Lending7,6017,4706,896Other676107Total Banking & Payments37,13635,26731,897Fixed Income Markets22,53220,06619,180Equity Markets13,2509,9418,784Securities Services5,5995,0844,772Credit Adjustments & Other(a)(63)(244)(280)Total Markets & Securities Services41,31834,84732,456Total net revenue$78,454 $70,114$64,353 Compensation expense as percentage of total net revenue Fixed Income Markets Equity Markets Credit Adjustments & Other(a)" **Prior (2025):** (a)Included tax equivalent adjustments primarily from income tax credits from investments in alternative energy, affordable housing and new markets, income from tax-exempt securities and loans, and the related amortization and other tax benefits of the investments in alternative energy and affordable housing of $2.8 billion, $4.0 billion and $3.3 billion for the years ended December 31, 2024, 2023 and 2022, respectively. Effective January 1, 2024, the Firm adopted updates to the Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method guidance, under the modified retrospective method. Refer to Notes 1, 6, 14 and 25 for additional information.Selected income statement dataYear ended December 31,(in millions, except ratios)202420232022Financial ratiosReturn on equity18 %14 %14 %Overhead ratio50 53 54 Compensation expense aspercentage of total net revenue26 27 27 Revenue by businessInvestment Banking$9,636$7,076$7,205Payments18,08517,81813,490Lending7,4706,8965,882Other76107244Total Banking & Payments35,26731,89726,821Fixed Income Markets(a)20,06619,18019,074Equity Markets(a)9,9418,78410,088Securities Services5,0844,7724,488Credit Adjustments & Other(b)(244)(280)(836)Total Markets & Securities Services34,84732,45632,814Total net revenue$70,114 $64,353$59,635 (a)In the fourth quarter of 2024, certain net funding costs that were previously allocated to Fixed Income Markets were reclassified to Equity Markets. Prior-period amounts have been revised to conform with the current presentation.(b)Consists primarily of centrally-managed credit valuation adjustments ("CVA"), funding valuation adjustments ("FVA") on derivatives, other valuation adjustments, and certain components of fair value option elected liabilities, which are primarily reported in principal transactions revenue. Results are presented net of associated hedging activities and net of CVA and FVA amounts allocated to Fixed Income Markets and Equity Markets. Refer to Notes 2, 3 and 24 for additional information. (a)Included tax equivalent adjustments primarily from income tax credits from investments in alternative energy, affordable housing and new markets, income from tax-exempt securities and loans, and the related amortization and other tax benefits of the investments in alternative energy and affordable housing of $2.8 billion, $4.0 billion and $3.3 billion for the years ended December 31, 2024, 2023 and 2022, respectively. Effective January 1, 2024, the Firm adopted updates to the Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method guidance, under the modified retrospective method. Refer to Notes 1, 6, 14 and 25 for additional information. Selected income statement dataYear ended December 31,(in millions, except ratios)202420232022Financial ratiosReturn on equity18 %14 %14 %Overhead ratio50 53 54 Compensation expense aspercentage of total net revenue26 27 27 Revenue by businessInvestment Banking$9,636$7,076$7,205Payments18,08517,81813,490Lending7,4706,8965,882Other76107244Total Banking & Payments35,26731,89726,821Fixed Income Markets(a)20,06619,18019,074Equity Markets(a)9,9418,78410,088Securities Services5,0844,7724,488Credit Adjustments & Other(b)(244)(280)(836)Total Markets & Securities Services34,84732,45632,814Total net revenue$70,114 $64,353$59,635 Compensation expense as percentage of total net revenue Fixed Income Markets(a) Equity Markets(a) Credit Adjustments & Other(b) **Current (2026):** (a)Included taxable-equivalent adjustments primarily from income tax credits from investments in alternative energy, affordable housing and new markets, income from tax-exempt securities and loans, and the related amortization and other tax benefits of the investments in alternative energy and affordable housing of $2.9 billion, $2.8 billion and $4.0 billion for the years ended December 31, 2025, 2024 and 2023, respectively. Effective January 1, 2024, the Firm adopted updates to the Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method guidance, under the modified retrospective method. Refer to Notes 1, 6, 14 and 25 for additional information.Selected income statement dataYear ended December 31,(in millions, except ratios)202520242023Financial ratiosReturn on equity18 %18 %14 %Overhead ratio49 50 53 Compensation expense aspercentage of total net revenue25 26 27 Revenue by businessInvestment Banking$10,198$9,636$7,076Payments19,33118,08517,818Lending7,6017,4706,896Other676107Total Banking & Payments37,13635,26731,897Fixed Income Markets22,53220,06619,180Equity Markets13,2509,9418,784Securities Services5,5995,0844,772Credit Adjustments & Other(a)(63)(244)(280)Total Markets & Securities Services41,31834,84732,456Total net revenue$78,454 $70,114$64,353 (a)Consists primarily of centrally-managed credit valuation adjustments ("CVA"), funding valuation adjustments ("FVA") on derivatives, other valuation adjustments, and certain components of fair value option elected liabilities, which are primarily reported in principal transactions revenue. Results are presented net of associated hedging activities and net of CVA and FVA amounts allocated to Fixed Income Markets and Equity Markets. Refer to Notes 2, 3 and 24 for additional information. (a)Included taxable-equivalent adjustments primarily from income tax credits from investments in alternative energy, affordable housing and new markets, income from tax-exempt securities and loans, and the related amortization and other tax benefits of the investments in alternative energy and affordable housing of $2.9 billion, $2.8 billion and $4.0 billion for the years ended December 31, 2025, 2024 and 2023, respectively. Effective January 1, 2024, the Firm adopted updates to the Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method guidance, under the modified retrospective method. Refer to Notes 1, 6, 14 and 25 for additional information. Selected income statement dataYear ended December 31,(in millions, except ratios)202520242023Financial ratiosReturn on equity18 %18 %14 %Overhead ratio49 50 53 Compensation expense aspercentage of total net revenue25 26 27 Revenue by businessInvestment Banking$10,198$9,636$7,076Payments19,33118,08517,818Lending7,6017,4706,896Other676107Total Banking & Payments37,13635,26731,897Fixed Income Markets22,53220,06619,180Equity Markets13,2509,9418,784Securities Services5,5995,0844,772Credit Adjustments & Other(a)(63)(244)(280)Total Markets & Securities Services41,31834,84732,456Total net revenue$78,454 $70,114$64,353 Compensation expense as percentage of total net revenue Fixed Income Markets Equity Markets Credit Adjustments & Other(a) --- ## Modified Risk: Note 33 - Parent Company **Key changes:** - Updated: "Statements of income and comprehensive incomeYear ended December 31, (in millions)202520242023IncomeDividends from subsidiaries and affiliates:Bank and bank holding company$50,000 $37,000 $61,000 Non-bank - - - Interest income from subsidiaries999 1,228 1,166 Other income/(expense) from subsidiaries:Bank and bank holding company1,846 555 1,801 Non-bank(506)172 250 Other income/(expense)697 1,252 (654)Total income53,036 40,207 63,563 ExpenseInterest expense to subsidiaries and affiliates(a)(16)7,433 2,258 Other interest expense(a)15,106 8,068 11,714 Noninterest expense3,883 3,280 3,431 Total expense18,973 18,781 17,403 Income before income tax benefit and undistributed net income of subsidiaries34,063 21,426 46,160 Income tax benefit1,822 1,264 1,525 Equity in undistributed net income of subsidiaries21,163 35,781 1,867 Net income$57,048 $58,471 $49,552 Other comprehensive income/(loss), net8,166 (2,013)6,898 Comprehensive income$65,214 $56,458 $56,450 Balance sheetsDecember 31, (in millions)20252024AssetsCash and due from banks$39 $38 Deposits with banking subsidiaries(b)9,751 9,762 Trading assets - intercompany14,885 43,214 Advances to, and receivables from, subsidiaries:Bank and bank holding company136 142 Non-bank24 79 Investments (at equity) in subsidiaries and affiliates:Bank and bank holding company669,449 603,044 Non-bank1,223 1,238 Other assets14,537 12,097 Total assets$710,044 $669,614 Liabilities and stockholders' equityBorrowings from, and payables to, subsidiaries and affiliates$79,317 $72,881 Short-term borrowings - - Other liabilities13,656 12,349 Long-term debt(c)(d)254,633 239,626 Total liabilities(d)347,606 324,856 Total stockholders' equity362,438 344,758 Total liabilities and stockholders' equity$710,044 $669,614 The following tables present Parent Company-only financial statements." **Prior (2025):** The following tables present Parent Company-only financial statements. Statements of income and comprehensive incomeYear ended December 31, (in millions)202420232022IncomeDividends from subsidiaries and affiliates:Bank and bank holding company$37,000 $61,000 $40,500 Non-bank - - - Interest income from subsidiaries1,228 1,166 498 Other income/(expense) from subsidiaries:Bank and bank holding company555 1,801 (3,497)Non-bank172 250 335 Other income/(expense)1,252 (654)5,271 Total income40,207 63,563 43,107 ExpenseInterest expense/(income) to subsidiaries and affiliates(a)7,433 2,258 22,731 Other interest expense/(income)(a)8,068 11,714 (14,658)Noninterest expense3,280 3,431 2,817 Total expense18,781 17,403 10,890 Income before income tax benefit and undistributed net income of subsidiaries21,426 46,160 32,217 Income tax benefit1,264 1,525 1,260 Equity in undistributed net income of subsidiaries35,781 1,867 4,199 Net income$58,471 $49,552 $37,676 Other comprehensive income/(loss), net(2,013)6,898 (17,257)Comprehensive income$56,458 $56,450 $20,419 Balance sheetsDecember 31, (in millions)20242023AssetsCash and due from banks$38 $42 Deposits with banking subsidiaries9,762 9,804 Trading assets43,214 3,198 Advances to, and receivables from, subsidiaries:Bank and bank holding company142 152 Non-bank79 21 Investments (at equity) in subsidiaries and affiliates:Bank and bank holding company603,044 568,472 Non-bank1,238 1,045 Other assets12,097 8,962 Total assets$669,614 $591,696 Liabilities and stockholders' equityBorrowings from, and payables to, subsidiaries and affiliates$72,881 $22,777 Short-term borrowings - 999 Other liabilities12,349 11,500 Long-term debt(b)(c)239,626 228,542 Total liabilities(c)324,856 263,818 Total stockholders' equity344,758 327,878 Total liabilities and stockholders' equity$669,614 $591,696 The following tables present Parent Company-only financial statements. Statements of income and comprehensive incomeYear ended December 31, (in millions)202420232022IncomeDividends from subsidiaries and affiliates:Bank and bank holding company$37,000 $61,000 $40,500 Non-bank - - - Interest income from subsidiaries1,228 1,166 498 Other income/(expense) from subsidiaries:Bank and bank holding company555 1,801 (3,497)Non-bank172 250 335 Other income/(expense)1,252 (654)5,271 Total income40,207 63,563 43,107 ExpenseInterest expense/(income) to subsidiaries and affiliates(a)7,433 2,258 22,731 Other interest expense/(income)(a)8,068 11,714 (14,658)Noninterest expense3,280 3,431 2,817 Total expense18,781 17,403 10,890 Income before income tax benefit and undistributed net income of subsidiaries21,426 46,160 32,217 Income tax benefit1,264 1,525 1,260 Equity in undistributed net income of subsidiaries35,781 1,867 4,199 Net income$58,471 $49,552 $37,676 Other comprehensive income/(loss), net(2,013)6,898 (17,257)Comprehensive income$56,458 $56,450 $20,419 The following tables present Parent Company-only financial statements. Statements of income and comprehensive incomeYear ended December 31, (in millions)202420232022IncomeDividends from subsidiaries and affiliates:Bank and bank holding company$37,000 $61,000 $40,500 Non-bank - - - Interest income from subsidiaries1,228 1,166 498 Other income/(expense) from subsidiaries:Bank and bank holding company555 1,801 (3,497)Non-bank172 250 335 Other income/(expense)1,252 (654)5,271 Total income40,207 63,563 43,107 ExpenseInterest expense/(income) to subsidiaries and affiliates(a)7,433 2,258 22,731 Other interest expense/(income)(a)8,068 11,714 (14,658)Noninterest expense3,280 3,431 2,817 Total expense18,781 17,403 10,890 Income before income tax benefit and undistributed net income of subsidiaries21,426 46,160 32,217 Income tax benefit1,264 1,525 1,260 Equity in undistributed net income of subsidiaries35,781 1,867 4,199 Net income$58,471 $49,552 $37,676 Other comprehensive income/(loss), net(2,013)6,898 (17,257)Comprehensive income$56,458 $56,450 $20,419 **Current (2026):** The following tables present Parent Company-only financial statements. Statements of income and comprehensive incomeYear ended December 31, (in millions)202520242023IncomeDividends from subsidiaries and affiliates:Bank and bank holding company$50,000 $37,000 $61,000 Non-bank - - - Interest income from subsidiaries999 1,228 1,166 Other income/(expense) from subsidiaries:Bank and bank holding company1,846 555 1,801 Non-bank(506)172 250 Other income/(expense)697 1,252 (654)Total income53,036 40,207 63,563 ExpenseInterest expense to subsidiaries and affiliates(a)(16)7,433 2,258 Other interest expense(a)15,106 8,068 11,714 Noninterest expense3,883 3,280 3,431 Total expense18,973 18,781 17,403 Income before income tax benefit and undistributed net income of subsidiaries34,063 21,426 46,160 Income tax benefit1,822 1,264 1,525 Equity in undistributed net income of subsidiaries21,163 35,781 1,867 Net income$57,048 $58,471 $49,552 Other comprehensive income/(loss), net8,166 (2,013)6,898 Comprehensive income$65,214 $56,458 $56,450 Balance sheetsDecember 31, (in millions)20252024AssetsCash and due from banks$39 $38 Deposits with banking subsidiaries(b)9,751 9,762 Trading assets - intercompany14,885 43,214 Advances to, and receivables from, subsidiaries:Bank and bank holding company136 142 Non-bank24 79 Investments (at equity) in subsidiaries and affiliates:Bank and bank holding company669,449 603,044 Non-bank1,223 1,238 Other assets14,537 12,097 Total assets$710,044 $669,614 Liabilities and stockholders' equityBorrowings from, and payables to, subsidiaries and affiliates$79,317 $72,881 Short-term borrowings - - Other liabilities13,656 12,349 Long-term debt(c)(d)254,633 239,626 Total liabilities(d)347,606 324,856 Total stockholders' equity362,438 344,758 Total liabilities and stockholders' equity$710,044 $669,614 The following tables present Parent Company-only financial statements. Statements of income and comprehensive incomeYear ended December 31, (in millions)202520242023IncomeDividends from subsidiaries and affiliates:Bank and bank holding company$50,000 $37,000 $61,000 Non-bank - - - Interest income from subsidiaries999 1,228 1,166 Other income/(expense) from subsidiaries:Bank and bank holding company1,846 555 1,801 Non-bank(506)172 250 Other income/(expense)697 1,252 (654)Total income53,036 40,207 63,563 ExpenseInterest expense to subsidiaries and affiliates(a)(16)7,433 2,258 Other interest expense(a)15,106 8,068 11,714 Noninterest expense3,883 3,280 3,431 Total expense18,973 18,781 17,403 Income before income tax benefit and undistributed net income of subsidiaries34,063 21,426 46,160 Income tax benefit1,822 1,264 1,525 Equity in undistributed net income of subsidiaries21,163 35,781 1,867 Net income$57,048 $58,471 $49,552 Other comprehensive income/(loss), net8,166 (2,013)6,898 Comprehensive income$65,214 $56,458 $56,450 The following tables present Parent Company-only financial statements. Statements of income and comprehensive incomeYear ended December 31, (in millions)202520242023IncomeDividends from subsidiaries and affiliates:Bank and bank holding company$50,000 $37,000 $61,000 Non-bank - - - Interest income from subsidiaries999 1,228 1,166 Other income/(expense) from subsidiaries:Bank and bank holding company1,846 555 1,801 Non-bank(506)172 250 Other income/(expense)697 1,252 (654)Total income53,036 40,207 63,563 ExpenseInterest expense to subsidiaries and affiliates(a)(16)7,433 2,258 Other interest expense(a)15,106 8,068 11,714 Noninterest expense3,883 3,280 3,431 Total expense18,973 18,781 17,403 Income before income tax benefit and undistributed net income of subsidiaries34,063 21,426 46,160 Income tax benefit1,822 1,264 1,525 Equity in undistributed net income of subsidiaries21,163 35,781 1,867 Net income$57,048 $58,471 $49,552 Other comprehensive income/(loss), net8,166 (2,013)6,898 Comprehensive income$65,214 $56,458 $56,450 --- ## Modified Risk: 2025 compared with 2024 **Key changes:** - Updated: "The provision for credit losses was $14.2 billion." - Updated: "Refer to Note 6 for additional information.2025 compared with 2024Compensation expense increased driven by:•growth in the number of employees, primarily front office employees, and•higher revenue-related compensation, predominantly in CIB and AWM.Noncompensation expense increased, primarily reflecting:•higher brokerage expense in CIB and higher distribution fees in AWM,•higher depreciation expense on higher auto operating lease assets in CCB,•higher investments in technology across the LOBs and Corporate and in marketing in CCB, and•higher occupancy expense, reflecting net additions and improvements to the Firm's properties, including its new headquarters, bank branches and other corporate offices,partially offset by•lower FDIC-related expense driven by releases of FDIC special assessment accruals of $763 million in Corporate, compared with an accrual increase of $725 million in the first quarter of the prior year, and•the absence in Corporate of the following items recorded in the prior year-a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation, and-restructuring and integration costs associated with First Republic.Refer to Note 6 for additional information on FDIC-related expense and Visa shares, and Note 34 for additional information on the First Republic acquisition.Income tax expenseYear ended December 31,(in millions, except rate)202520242023Income before income tax expense$72,595$75,081$61,612Income tax expense15,54716,610(a)12,060Effective tax rate21.4 %22.1 %19.6 %(a)Effective January 1, 2024, as a result of adopting updates to the Accounting for Investments in Tax Credit Structures guidance, the amortization of certain of the Firm's alternative energy tax-oriented investments is now recognized in income tax expense." - Updated: "Refer to Note 6 for additional information.2025 compared with 2024Compensation expense increased driven by:•growth in the number of employees, primarily front office employees, and•higher revenue-related compensation, predominantly in CIB and AWM.Noncompensation expense increased, primarily reflecting:•higher brokerage expense in CIB and higher distribution fees in AWM,•higher depreciation expense on higher auto operating lease assets in CCB,•higher investments in technology across the LOBs and Corporate and in marketing in CCB, and•higher occupancy expense, reflecting net additions and improvements to the Firm's properties, including its new headquarters, bank branches and other corporate offices,partially offset by•lower FDIC-related expense driven by releases of FDIC special assessment accruals of $763 million in Corporate, compared with an accrual increase of $725 million in the first quarter of the prior year, and Noninterest expenseYear ended December 31,(in millions)202520242023Compensation expense$54,487 $51,357 $46,465 Noncompensation expense:Occupancy5,461 5,026 4,590 Technology, communications and equipment(a)11,029 9,831 9,246 Professional and outside services12,356 11,057 10,235 Marketing5,531 4,974 4,591 Other expense6,776 9,552 (c)12,045 Total noncompensation expense41,153 40,440 40,707 Total noninterest expense$95,640 $91,797 $87,172 Certain components of other expense(b)Legal expense$361 $740 $1,436 FDIC-related expense531 1,893 4,203 Operating losses1,292 1,417 1,228 Compensation expense Noncompensation expense: Technology, communications and equipment(a) Professional and outside services (c)" **Prior (2025):** The provision for credit losses was $10.7 billion, reflecting $8.6 billion of net charge-offs and a $2.0 billion net addition to the allowance for credit losses. Net charge-offs included $7.8 billion in consumer, predominantly driven by Card Services, reflecting the seasoning of vintages originated in recent years, credit normalization and balance growth, and $0.8 billion in wholesale, primarily in Real Estate, largely concentrated in Office. The net addition to the allowance for credit losses consisted of: •$2.1 billion in consumer, reflecting: -a $2.2 billion net addition in Card Services, predominantly driven by loan growth, reflecting higher revolving balances, including the seasoning of vintages originated in recent years, partially offset by -a $125 million net reduction in Home Lending in the first quarter of 2024, and •a net reduction of $19 million in wholesale, reflecting: -changes in certain macroeconomic variables, an update to loss assumptions on certain loans in Markets, and a reduction due to charge-offs largely from collateral-dependent loans, predominantly offset by -net downgrade activity, primarily in Real Estate, and the impact of incorporating the First Republic portfolio into the Firm's modeled credit loss estimates in the second quarter of 2024. The provision in the prior year was $9.3 billion, reflecting net charge-offs of $6.2 billion and a $3.1 billion net addition to the allowance for credit losses, which included $1.2 billion to establish the allowance for the First Republic loans and lending-related commitments in the second quarter of 2023.Refer to CCB, CIB and AWM segment and Corporate results on pages 73-76, pages 77-83, pages 84-87, and pages 88-90, respectively; Allowance for Credit Losses on pages 137-139; Critical Accounting Estimates Used by the Firm on pages 161-164; and Notes 12 and 13 for additional information on the credit portfolio and the allowance for credit losses. The provision in the prior year was $9.3 billion, reflecting net charge-offs of $6.2 billion and a $3.1 billion net addition to the allowance for credit losses, which included $1.2 billion to establish the allowance for the First Republic loans and lending-related commitments in the second quarter of 2023. Refer to CCB, CIB and AWM segment and Corporate results on pages 73-76, pages 77-83, pages 84-87, and pages 88-90, respectively; Allowance for Credit Losses on pages 137-139; Critical Accounting Estimates Used by the Firm on pages 161-164; and Notes 12 and 13 for additional information on the credit portfolio and the allowance for credit losses. JPMorgan Chase & Co./2024 Form 10-K61 JPMorgan Chase & Co./2024 Form 10-K61 JPMorgan Chase & Co./2024 Form 10-K61 JPMorgan Chase & Co./2024 Form 10-K 61 Noninterest expenseYear ended December 31,(in millions)202420232022Compensation expense$51,357 $46,465 $41,636 Noncompensation expense:Occupancy5,026 4,590 4,696 Technology, communications and equipment(a)9,831 9,246 9,358 Professional and outside services11,057 10,235 10,174 Marketing4,974 4,591 3,911 Other expense9,552 (c)12,045 6,365 Total noncompensation expense40,440 40,707 34,504 Total noninterest expense$91,797 $87,172 $76,140 Certain components of other expense(b)Legal expense$740 $1,436 $266 FDIC-related expense1,893 4,203 860 Operating losses1,417 1,228 1,101 (a)Includes depreciation expense associated with auto operating lease assets. Refer to Note 18 for additional information.(b)Refer to Note 6 for additional information. (c)Included a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024. Refer to Notes 2 and 6 for additional information.2024 compared with 2023Compensation expense increased driven by:•higher revenue-related compensation across the LOBs,•growth in the number of employees across the LOBs and Corporate, primarily in front office and technology, and•the impact of First Republic, predominantly in CCB, reflecting timing and the classification of the prior-year expense, which was recognized in other expense in Corporate in the second quarter of 2023 as the individuals associated with First Republic were not employees of the Firm until July 2023.Noncompensation expense decreased as a result of:•lower FDIC-related expense recognized in Corporate, which included the impact of a $2.9 billion special assessment recognized in the fourth quarter of 2023, compared with a $725 million increase to the FDIC special assessment recognized in the first quarter of 2024, and•lower legal expense, reflecting the net impact of declines in CCB, CIB and Corporate, and an increase in AWM,predominantly offset by•a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024 in Corporate,•higher investments in technology in the businesses, as well as marketing, predominantly in CCB,•higher occupancy expense, which included the impact of net additions to the Firm's properties,•higher distribution fees in AWM and brokerage expense in CIB, and•the timing impact associated with First Republic, offset by the alignment of expense to compensation expense, as noted above.Refer to Notes 2 and 6 for additional information on Visa shares; Note 6 for additional information on other expense; and Note 34 for additional information on the First Republic acquisition.Income tax expenseYear ended December 31,(in millions, except rate)202420232022Income before income tax expense$75,081$61,612$46,166Income tax expense16,610(a)12,0608,490Effective tax rate22.1 %19.6 %18.4 %(a)Effective January 1, 2024, as a result of adopting updates to the Accounting for Investments in Tax Credit Structures guidance, the amortization of certain of the Firm's alternative energy tax-oriented investments is now recognized in income tax expense. Refer to Notes 1, 6, 14 and 25 for additional information.2024 compared with 2023 The effective tax rate increased predominantly driven by:•the adoption of updates to the Accounting for Investments in Tax Credit Structures guidance on January 1, 2024, and•a higher level of pretax income and changes in the mix of income and expenses subject to U.S. federal, state and local taxes, including the impact of the net gain on Visa shares and the contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024.The prior year included the impact to income tax expense associated with the First Republic acquisition that was reflected in the estimated bargain purchase gain, and an income tax benefit related to the finalization of certain income tax regulations, both of which resulted in a reduction in the Firm's effective tax rate.Refer to Note 25 for additional information. Noninterest expenseYear ended December 31,(in millions)202420232022Compensation expense$51,357 $46,465 $41,636 Noncompensation expense:Occupancy5,026 4,590 4,696 Technology, communications and equipment(a)9,831 9,246 9,358 Professional and outside services11,057 10,235 10,174 Marketing4,974 4,591 3,911 Other expense9,552 (c)12,045 6,365 Total noncompensation expense40,440 40,707 34,504 Total noninterest expense$91,797 $87,172 $76,140 Certain components of other expense(b)Legal expense$740 $1,436 $266 FDIC-related expense1,893 4,203 860 Operating losses1,417 1,228 1,101 (a)Includes depreciation expense associated with auto operating lease assets. Refer to Note 18 for additional information.(b)Refer to Note 6 for additional information. (c)Included a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024. Refer to Notes 2 and 6 for additional information.2024 compared with 2023Compensation expense increased driven by:•higher revenue-related compensation across the LOBs,•growth in the number of employees across the LOBs and Corporate, primarily in front office and technology, and•the impact of First Republic, predominantly in CCB, reflecting timing and the classification of the prior-year expense, which was recognized in other expense in Corporate in the second quarter of 2023 as the individuals associated with First Republic were not employees of the Firm until July 2023.Noncompensation expense decreased as a result of:•lower FDIC-related expense recognized in Corporate, which included the impact of a $2.9 billion special assessment recognized in the fourth quarter of 2023, compared with a $725 million increase to the FDIC special assessment recognized in the first quarter of 2024, and•lower legal expense, reflecting the net impact of declines in CCB, CIB and Corporate, and an increase in AWM,predominantly offset by•a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024 in Corporate, Noninterest expenseYear ended December 31,(in millions)202420232022Compensation expense$51,357 $46,465 $41,636 Noncompensation expense:Occupancy5,026 4,590 4,696 Technology, communications and equipment(a)9,831 9,246 9,358 Professional and outside services11,057 10,235 10,174 Marketing4,974 4,591 3,911 Other expense9,552 (c)12,045 6,365 Total noncompensation expense40,440 40,707 34,504 Total noninterest expense$91,797 $87,172 $76,140 Certain components of other expense(b)Legal expense$740 $1,436 $266 FDIC-related expense1,893 4,203 860 Operating losses1,417 1,228 1,101 Compensation expense Noncompensation expense: Technology, communications and equipment(a) Professional and outside services (c) **Current (2026):** The provision for credit losses was $14.2 billion. Net charge-offs were $9.8 billion and the net addition to the allowance for credit losses was $4.4 billion. The provision for credit losses included: •$11.5 billion in consumer, consisting of net charge-offs of $8.3 billion, predominantly driven by Card Services, reflecting loan growth, and a net addition to the allowance for credit losses of $3.3 billion which was driven by $2.2 billion related to the Apple Card transaction, loan growth in Card Services and the impact of changes in the Firm's weighted-average macroeconomic outlook, partially offset by reduced borrower uncertainty, and •$2.7 billion in wholesale, driven by net increases in the loan and lending-related commitment portfolios, net changes in credit quality of client-specific exposures, an update to loss assumptions on certain leveraged loans, and estimated losses related to borrower fraud in certain secured lending facilities, partially offset by the impact of changes in the Firm's weighted-average macroeconomic outlook. Net charge-offs were $1.6 billion and the net addition to the allowance for credit losses was $1.1 billion. In the prior year, the provision was $10.7 billion, net charge-offs were $8.6 billion and the net addition to the allowance for credit losses was $2.0 billion. Refer to CCB, CIB and AWM segment and Corporate results on pages 65-68, pages 69-75, pages 76-79, and pages 80-82, respectively; Allowance for Credit Losses on pages 129-131; Critical Accounting Estimates Used by the Firm on pages 154-157; and Notes 12 and 13 for additional information on the credit portfolio and the allowance for credit losses. JPMorgan Chase & Co./2025 Form 10-K53 JPMorgan Chase & Co./2025 Form 10-K53 JPMorgan Chase & Co./2025 Form 10-K53 JPMorgan Chase & Co./2025 Form 10-K 53 Noninterest expenseYear ended December 31,(in millions)202520242023Compensation expense$54,487 $51,357 $46,465 Noncompensation expense:Occupancy5,461 5,026 4,590 Technology, communications and equipment(a)11,029 9,831 9,246 Professional and outside services12,356 11,057 10,235 Marketing5,531 4,974 4,591 Other expense6,776 9,552 (c)12,045 Total noncompensation expense41,153 40,440 40,707 Total noninterest expense$95,640 $91,797 $87,172 Certain components of other expense(b)Legal expense$361 $740 $1,436 FDIC-related expense531 1,893 4,203 Operating losses1,292 1,417 1,228 (a)Includes depreciation expense associated with auto operating lease assets. Refer to Note 18 for additional information.(b)Refer to Note 6 for additional information. (c)Included a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024. Refer to Note 6 for additional information.2025 compared with 2024Compensation expense increased driven by:•growth in the number of employees, primarily front office employees, and•higher revenue-related compensation, predominantly in CIB and AWM.Noncompensation expense increased, primarily reflecting:•higher brokerage expense in CIB and higher distribution fees in AWM,•higher depreciation expense on higher auto operating lease assets in CCB,•higher investments in technology across the LOBs and Corporate and in marketing in CCB, and•higher occupancy expense, reflecting net additions and improvements to the Firm's properties, including its new headquarters, bank branches and other corporate offices,partially offset by•lower FDIC-related expense driven by releases of FDIC special assessment accruals of $763 million in Corporate, compared with an accrual increase of $725 million in the first quarter of the prior year, and•the absence in Corporate of the following items recorded in the prior year-a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation, and-restructuring and integration costs associated with First Republic.Refer to Note 6 for additional information on FDIC-related expense and Visa shares, and Note 34 for additional information on the First Republic acquisition.Income tax expenseYear ended December 31,(in millions, except rate)202520242023Income before income tax expense$72,595$75,081$61,612Income tax expense15,54716,610(a)12,060Effective tax rate21.4 %22.1 %19.6 %(a)Effective January 1, 2024, as a result of adopting updates to the Accounting for Investments in Tax Credit Structures guidance, the amortization of certain of the Firm's alternative energy tax-oriented investments is now recognized in income tax expense. Refer to Notes 1, 6, 14 and 25 for additional information.2025 compared with 2024 The effective tax rate decreased driven by:•a $774 million income tax benefit in Corporate recorded in the second quarter of 2025, driven by the resolution of certain tax audits and the impact of tax regulations related to foreign currency translation gains and losses finalized in 2024 and effective for 2025, and•higher tax benefits related to the vesting of employee share-based awards,partially offset by•other changes in the level and mix of income and expenses subject to U.S. federal, state and local taxes, and•lower benefits associated with other tax audits.Refer to Note 25 for additional information. Noninterest expenseYear ended December 31,(in millions)202520242023Compensation expense$54,487 $51,357 $46,465 Noncompensation expense:Occupancy5,461 5,026 4,590 Technology, communications and equipment(a)11,029 9,831 9,246 Professional and outside services12,356 11,057 10,235 Marketing5,531 4,974 4,591 Other expense6,776 9,552 (c)12,045 Total noncompensation expense41,153 40,440 40,707 Total noninterest expense$95,640 $91,797 $87,172 Certain components of other expense(b)Legal expense$361 $740 $1,436 FDIC-related expense531 1,893 4,203 Operating losses1,292 1,417 1,228 (a)Includes depreciation expense associated with auto operating lease assets. Refer to Note 18 for additional information.(b)Refer to Note 6 for additional information. (c)Included a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024. Refer to Note 6 for additional information.2025 compared with 2024Compensation expense increased driven by:•growth in the number of employees, primarily front office employees, and•higher revenue-related compensation, predominantly in CIB and AWM.Noncompensation expense increased, primarily reflecting:•higher brokerage expense in CIB and higher distribution fees in AWM,•higher depreciation expense on higher auto operating lease assets in CCB,•higher investments in technology across the LOBs and Corporate and in marketing in CCB, and•higher occupancy expense, reflecting net additions and improvements to the Firm's properties, including its new headquarters, bank branches and other corporate offices,partially offset by•lower FDIC-related expense driven by releases of FDIC special assessment accruals of $763 million in Corporate, compared with an accrual increase of $725 million in the first quarter of the prior year, and Noninterest expenseYear ended December 31,(in millions)202520242023Compensation expense$54,487 $51,357 $46,465 Noncompensation expense:Occupancy5,461 5,026 4,590 Technology, communications and equipment(a)11,029 9,831 9,246 Professional and outside services12,356 11,057 10,235 Marketing5,531 4,974 4,591 Other expense6,776 9,552 (c)12,045 Total noncompensation expense41,153 40,440 40,707 Total noninterest expense$95,640 $91,797 $87,172 Certain components of other expense(b)Legal expense$361 $740 $1,436 FDIC-related expense531 1,893 4,203 Operating losses1,292 1,417 1,228 Compensation expense Noncompensation expense: Technology, communications and equipment(a) Professional and outside services (c) --- ## Modified Risk: Glossary of Terms and Acronyms **Key changes:** - Updated: "Operating losses: Primarily refer to fraud losses associated with customer deposit accounts, credit and debit cards; exclude legal expense.Over-the-counter ("OTC") derivatives: Derivative contracts that are negotiated, executed and settled bilaterally between two derivative counterparties, where one or both counterparties is a derivatives dealer." - Updated: "government agencies), and changes in the fair value of financial instruments measured under the fair value option." - Updated: "Principal transactions revenue also includes realized and unrealized gains and losses related to: •derivatives designated in qualifying hedge accounting relationships, primarily fair value hedges of commodity and foreign exchange risk; •derivatives used for specific risk management purposes, primarily to mitigate credit, foreign exchange and interest rate risks.Production revenue: Includes fees and income recognized as earned on mortgage loans originated with the intent to sell, and the impact of risk management activities associated with the mortgage pipeline and warehouse loans." - Removed: "government agencies), and changes in the fair value of financial instruments measured under the fair value option.PSU(s): Performance share units Regulatory VaR: Daily aggregated VaR calculated in accordance with regulatory rules.REO: Real estate owned Reported basis: Financial statements prepared under U.S." - Removed: "GAAP, which excludes the impact of taxable-equivalent adjustments." **Prior (2025):** requirements, defines eligible capital instruments, and prescribes rules for calculating RWA.Pillar 3: The Basel framework consists of a three "Pillar" approach. Pillar 3 encourages market discipline through disclosure requirements which allow market participants to assess the risk and capital profiles of banks.PRA: Prudential Regulation Authority Preferred stock dividends: reflects dividends declared and deemed dividends upon redemption of preferred stockPre-provision profit/(loss): Represents total net revenue less noninterest expense. The Firm believes that this financial measure is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses.Pre-tax margin: Represents income before income tax expense divided by total net revenue, which is, in management's view, a comprehensive measure of pretax performance derived by measuring earnings after all costs are taken into consideration. It is one basis upon which management evaluates the performance of AWM against the performance of their respective competitors.Principal transactions revenue: Principal transactions revenue is driven by many factors, including: •the bid-offer spread, which is the difference between the price at which a market participant is willing and able to sell an instrument to the Firm and the price at which another market participant is willing and able to buy it from the Firm, and vice versa; and •realized and unrealized gains and losses on financial instruments and commodities transactions, including those accounted for under the fair value option, primarily used in client-driven market-making activities. -Realized gains and losses result from the sale of instruments, closing out or termination of transactions, or interim cash payments. -Unrealized gains and losses result from changes in valuation. In connection with its client-driven market-making activities, the Firm transacts in debt and equity instruments, derivatives and commodities, including physical commodities inventories and financial instruments that reference commodities. Principal transactions revenue also includes realized and unrealized gains and losses related to: •derivatives designated in qualifying hedge accounting relationships, primarily fair value hedges of commodity and foreign exchange risk; •derivatives used for specific risk management purposes, primarily to mitigate credit, foreign exchange and interest rate risks.Production revenue: Includes fees and income recognized as earned on mortgage loans originated with the intent to sell, and the impact of risk management activities associated with the mortgage pipeline and warehouse loans. Production revenue also includes gains and losses on sales and lower of cost or fair value adjustments on mortgage loans held-for-sale (excluding certain repurchased loans insured by U.S. government agencies), and changes in the fair value of financial instruments measured under the fair value option.PSU(s): Performance share units Regulatory VaR: Daily aggregated VaR calculated in accordance with regulatory rules.REO: Real estate owned Reported basis: Financial statements prepared under U.S. GAAP, which excludes the impact of taxable-equivalent adjustments. Retained loans: Loans that are held-for-investment (i.e., excludes loans held-for-sale and loans at fair value). Revenue wallet: Proportion of fee revenue based on estimates of investment banking fees generated across the industry (i.e., the revenue wallet) from investment banking transactions in M&A, equity and debt underwriting, and loan syndications. Source: Dealogic, a third-party provider of investment banking competitive analysis and volume-based league tables for the above noted industry products.RHS: Rural Housing Service of the U.S. Department of Agriculture ROA: Return on assetsROE: Return on equityROTCE: Return on tangible common equityROU assets: Right-of-use assets RSU(s): Restricted stock units RWA "Risk-weighted assets": Basel III establishes two comprehensive approaches for calculating RWA (a Standardized approach and an Advanced approach) which include capital requirements for credit risk, market risk, and in the case of Basel III Advanced, also operational risk. Key differences in the calculation of credit risk RWA between the Standardized and Advanced approaches are that for Basel III Advanced, credit risk RWA is based on risk-sensitive approaches which largely rely on the use of internal credit models and parameters, whereas for Basel III Standardized, credit risk RWA is generally based on supervisory risk-weightings which vary primarily by counterparty type and asset class. Market risk RWA is calculated on a generally consistent basis between Basel III Standardized and Basel III Advanced. S&P: Standard and Poor's SAR as it pertains to Hong Kong: Special Administrative Region requirements, defines eligible capital instruments, and prescribes rules for calculating RWA.Pillar 3: The Basel framework consists of a three "Pillar" approach. Pillar 3 encourages market discipline through disclosure requirements which allow market participants to assess the risk and capital profiles of banks.PRA: Prudential Regulation Authority Preferred stock dividends: reflects dividends declared and deemed dividends upon redemption of preferred stockPre-provision profit/(loss): Represents total net revenue less noninterest expense. The Firm believes that this financial measure is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses.Pre-tax margin: Represents income before income tax expense divided by total net revenue, which is, in management's view, a comprehensive measure of pretax performance derived by measuring earnings after all costs are taken into consideration. It is one basis upon which management evaluates the performance of AWM against the performance of their respective competitors.Principal transactions revenue: Principal transactions revenue is driven by many factors, including: •the bid-offer spread, which is the difference between the price at which a market participant is willing and able to sell an instrument to the Firm and the price at which another market participant is willing and able to buy it from the Firm, and vice versa; and •realized and unrealized gains and losses on financial instruments and commodities transactions, including those accounted for under the fair value option, primarily used in client-driven market-making activities. -Realized gains and losses result from the sale of instruments, closing out or termination of transactions, or interim cash payments. -Unrealized gains and losses result from changes in valuation. In connection with its client-driven market-making activities, the Firm transacts in debt and equity instruments, derivatives and commodities, including physical commodities inventories and financial instruments that reference commodities. Principal transactions revenue also includes realized and unrealized gains and losses related to: •derivatives designated in qualifying hedge accounting relationships, primarily fair value hedges of commodity and foreign exchange risk; •derivatives used for specific risk management purposes, primarily to mitigate credit, foreign exchange and interest rate risks. requirements, defines eligible capital instruments, and prescribes rules for calculating RWA. Pillar 3: The Basel framework consists of a three "Pillar" approach. Pillar 3 encourages market discipline through disclosure requirements which allow market participants to assess the risk and capital profiles of banks. PRA: Prudential Regulation Authority Preferred stock dividends: reflects dividends declared and deemed dividends upon redemption of preferred stock Pre-provision profit/(loss): Represents total net revenue less noninterest expense. The Firm believes that this financial measure is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses. Pre-tax margin: Represents income before income tax expense divided by total net revenue, which is, in management's view, a comprehensive measure of pretax performance derived by measuring earnings after all costs are taken into consideration. It is one basis upon which management evaluates the performance of AWM against the performance of their respective competitors. Principal transactions revenue: Principal transactions revenue is driven by many factors, including: •the bid-offer spread, which is the difference between the price at which a market participant is willing and able to sell an instrument to the Firm and the price at which another market participant is willing and able to buy it from the Firm, and vice versa; and •realized and unrealized gains and losses on financial instruments and commodities transactions, including those accounted for under the fair value option, primarily used in client-driven market-making activities. -Realized gains and losses result from the sale of instruments, closing out or termination of transactions, or interim cash payments. -Unrealized gains and losses result from changes in valuation. In connection with its client-driven market-making activities, the Firm transacts in debt and equity instruments, derivatives and commodities, including physical commodities inventories and financial instruments that reference commodities. Principal transactions revenue also includes realized and unrealized gains and losses related to: •derivatives designated in qualifying hedge accounting relationships, primarily fair value hedges of commodity and foreign exchange risk; •derivatives used for specific risk management purposes, primarily to mitigate credit, foreign exchange and interest rate risks. Production revenue: Includes fees and income recognized as earned on mortgage loans originated with the intent to sell, and the impact of risk management activities associated with the mortgage pipeline and warehouse loans. Production revenue also includes gains and losses on sales and lower of cost or fair value adjustments on mortgage loans held-for-sale (excluding certain repurchased loans insured by U.S. government agencies), and changes in the fair value of financial instruments measured under the fair value option.PSU(s): Performance share units Regulatory VaR: Daily aggregated VaR calculated in accordance with regulatory rules.REO: Real estate owned Reported basis: Financial statements prepared under U.S. GAAP, which excludes the impact of taxable-equivalent adjustments. Retained loans: Loans that are held-for-investment (i.e., excludes loans held-for-sale and loans at fair value). Revenue wallet: Proportion of fee revenue based on estimates of investment banking fees generated across the industry (i.e., the revenue wallet) from investment banking transactions in M&A, equity and debt underwriting, and loan syndications. Source: Dealogic, a third-party provider of investment banking competitive analysis and volume-based league tables for the above noted industry products.RHS: Rural Housing Service of the U.S. Department of Agriculture ROA: Return on assetsROE: Return on equityROTCE: Return on tangible common equityROU assets: Right-of-use assets RSU(s): Restricted stock units RWA "Risk-weighted assets": Basel III establishes two comprehensive approaches for calculating RWA (a Standardized approach and an Advanced approach) which include capital requirements for credit risk, market risk, and in the case of Basel III Advanced, also operational risk. Key differences in the calculation of credit risk RWA between the Standardized and Advanced approaches are that for Basel III Advanced, credit risk RWA is based on risk-sensitive approaches which largely rely on the use of internal credit models and parameters, whereas for Basel III Standardized, credit risk RWA is generally based on supervisory risk-weightings which vary primarily by counterparty type and asset class. Market risk RWA is calculated on a generally consistent basis between Basel III Standardized and Basel III Advanced. S&P: Standard and Poor's SAR as it pertains to Hong Kong: Special Administrative Region Production revenue: Includes fees and income recognized as earned on mortgage loans originated with the intent to sell, and the impact of risk management activities associated with the mortgage pipeline and warehouse loans. Production revenue also includes gains and losses on sales and lower of cost or fair value adjustments on mortgage loans held-for-sale (excluding certain repurchased loans insured by U.S. government agencies), and changes in the fair value of financial instruments measured under the fair value option. PSU(s): Performance share units Regulatory VaR: Daily aggregated VaR calculated in accordance with regulatory rules. REO: Real estate owned Reported basis: Financial statements prepared under U.S. GAAP, which excludes the impact of taxable-equivalent adjustments. Retained loans: Loans that are held-for-investment (i.e., excludes loans held-for-sale and loans at fair value). Revenue wallet: Proportion of fee revenue based on estimates of investment banking fees generated across the industry (i.e., the revenue wallet) from investment banking transactions in M&A, equity and debt underwriting, and loan syndications. Source: Dealogic, a third-party provider of investment banking competitive analysis and volume-based league tables for the above noted industry products. RHS: Rural Housing Service of the U.S. Department of Agriculture ROA: Return on assets ROE: Return on equity ROTCE: Return on tangible common equity ROU assets: Right-of-use assets RSU(s): Restricted stock units RWA "Risk-weighted assets": Basel III establishes two comprehensive approaches for calculating RWA (a Standardized approach and an Advanced approach) which include capital requirements for credit risk, market risk, and in the case of Basel III Advanced, also operational risk. Key differences in the calculation of credit risk RWA between the Standardized and Advanced approaches are that for Basel III Advanced, credit risk RWA is based on risk-sensitive approaches which largely rely on the use of internal credit models and parameters, whereas for Basel III Standardized, credit risk RWA is generally based on supervisory risk-weightings which vary primarily by counterparty type and asset class. Market risk RWA is calculated on a generally consistent basis between Basel III Standardized and Basel III Advanced. S&P: Standard and Poor's SAR as it pertains to Hong Kong: Special Administrative Region 332JPMorgan Chase & Co./2024 Form 10-K 332JPMorgan Chase & Co./2024 Form 10-K 332JPMorgan Chase & Co./2024 Form 10-K 332 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** Operating losses: Primarily refer to fraud losses associated with customer deposit accounts, credit and debit cards; exclude legal expense.Over-the-counter ("OTC") derivatives: Derivative contracts that are negotiated, executed and settled bilaterally between two derivative counterparties, where one or both counterparties is a derivatives dealer. Over-the-counter cleared ("OTC-cleared") derivatives: Derivative contracts that are negotiated and executed bilaterally, but subsequently settled via a central clearing house, such that each derivative counterparty is only exposed to the default of that clearing house. Overhead ratio: Noninterest expense as a percentage of total net revenue.Parent Company: JPMorgan Chase & Co.Participating securities: Represents unvested share-based compensation awards containing nonforfeitable rights to dividends or dividend equivalents (collectively, "dividends"), which are included in the earnings per share calculation using the two-class method. JPMorganChase grants RSUs to certain employees under its share-based compensation programs, which entitle the recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of common stock. These unvested awards meet the definition of participating securities. Under the two-class method, all earnings (distributed and undistributed) are allocated to each class of common stock and participating securities, based on their respective rights to receive dividends. PCAOB: Public Company Accounting Oversight BoardPCD "Purchased credit deteriorated" assets represent acquired financial assets that as of the date of acquisition have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by the Firm.PD: Probability of defaultPillar 1: The Basel framework consists of a three "Pillar" approach. Pillar 1 establishes minimum capital requirements, defines eligible capital instruments, and prescribes rules for calculating RWA.Pillar 3: The Basel framework consists of a three "Pillar" approach. Pillar 3 encourages market discipline through disclosure requirements which allow market participants to assess the risk and capital profiles of banks.PRA: Prudential Regulation Authority Preferred stock dividends: Reflects dividends declared and deemed dividends upon redemption of preferred stockPre-provision profit/(loss): Represents total net revenue less noninterest expense. The Firm believes that this financial measure is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses.Pre-tax margin: Represents income before income tax expense divided by total net revenue, which is, in management's view, a comprehensive measure of pretax performance derived by measuring earnings after all costs are taken into consideration. It is one basis upon which management evaluates the performance of AWM against the performance of their respective competitors.Principal transactions revenue: Principal transactions revenue is driven by many factors, including: •the bid-offer spread, which is the difference between the price at which a market participant is willing and able to sell an instrument to the Firm and the price at which another market participant is willing and able to buy it from the Firm, and vice versa; and •realized and unrealized gains and losses on financial instruments and commodities transactions, including those accounted for under the fair value option, primarily used in client-driven market-making activities. -Realized gains and losses result from the sale of instruments, closing out or termination of transactions, or interim cash payments. -Unrealized gains and losses result from changes in valuation. In connection with its client-driven market-making activities, the Firm transacts in debt and equity instruments, derivatives and commodities, including physical commodities inventories and financial instruments that reference commodities. Principal transactions revenue also includes realized and unrealized gains and losses related to: •derivatives designated in qualifying hedge accounting relationships, primarily fair value hedges of commodity and foreign exchange risk; •derivatives used for specific risk management purposes, primarily to mitigate credit, foreign exchange and interest rate risks.Production revenue: Includes fees and income recognized as earned on mortgage loans originated with the intent to sell, and the impact of risk management activities associated with the mortgage pipeline and warehouse loans. Production revenue also includes gains and losses on sales and lower of cost or fair value adjustments on mortgage loans held-for-sale (excluding certain repurchased loans insured by U.S. government agencies), and changes in the fair value of financial instruments measured under the fair value option. Operating losses: Primarily refer to fraud losses associated with customer deposit accounts, credit and debit cards; exclude legal expense.Over-the-counter ("OTC") derivatives: Derivative contracts that are negotiated, executed and settled bilaterally between two derivative counterparties, where one or both counterparties is a derivatives dealer. Over-the-counter cleared ("OTC-cleared") derivatives: Derivative contracts that are negotiated and executed bilaterally, but subsequently settled via a central clearing house, such that each derivative counterparty is only exposed to the default of that clearing house. Overhead ratio: Noninterest expense as a percentage of total net revenue.Parent Company: JPMorgan Chase & Co.Participating securities: Represents unvested share-based compensation awards containing nonforfeitable rights to dividends or dividend equivalents (collectively, "dividends"), which are included in the earnings per share calculation using the two-class method. JPMorganChase grants RSUs to certain employees under its share-based compensation programs, which entitle the recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of common stock. These unvested awards meet the definition of participating securities. Under the two-class method, all earnings (distributed and undistributed) are allocated to each class of common stock and participating securities, based on their respective rights to receive dividends. PCAOB: Public Company Accounting Oversight BoardPCD "Purchased credit deteriorated" assets represent acquired financial assets that as of the date of acquisition have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by the Firm.PD: Probability of defaultPillar 1: The Basel framework consists of a three "Pillar" approach. Pillar 1 establishes minimum capital requirements, defines eligible capital instruments, and prescribes rules for calculating RWA.Pillar 3: The Basel framework consists of a three "Pillar" approach. Pillar 3 encourages market discipline through disclosure requirements which allow market participants to assess the risk and capital profiles of banks.PRA: Prudential Regulation Authority Preferred stock dividends: Reflects dividends declared and deemed dividends upon redemption of preferred stock Operating losses: Primarily refer to fraud losses associated with customer deposit accounts, credit and debit cards; exclude legal expense. Over-the-counter ("OTC") derivatives: Derivative contracts that are negotiated, executed and settled bilaterally between two derivative counterparties, where one or both counterparties is a derivatives dealer. Over-the-counter cleared ("OTC-cleared") derivatives: Derivative contracts that are negotiated and executed bilaterally, but subsequently settled via a central clearing house, such that each derivative counterparty is only exposed to the default of that clearing house. Overhead ratio: Noninterest expense as a percentage of total net revenue. Parent Company: JPMorgan Chase & Co. Participating securities: Represents unvested share-based compensation awards containing nonforfeitable rights to dividends or dividend equivalents (collectively, "dividends"), which are included in the earnings per share calculation using the two-class method. JPMorganChase grants RSUs to certain employees under its share-based compensation programs, which entitle the recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of common stock. These unvested awards meet the definition of participating securities. Under the two-class method, all earnings (distributed and undistributed) are allocated to each class of common stock and participating securities, based on their respective rights to receive dividends. PCAOB: Public Company Accounting Oversight Board PCD "Purchased credit deteriorated" assets represent acquired financial assets that as of the date of acquisition have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by the Firm. PD: Probability of default Pillar 1: The Basel framework consists of a three "Pillar" approach. Pillar 1 establishes minimum capital requirements, defines eligible capital instruments, and prescribes rules for calculating RWA. Pillar 3: The Basel framework consists of a three "Pillar" approach. Pillar 3 encourages market discipline through disclosure requirements which allow market participants to assess the risk and capital profiles of banks. PRA: Prudential Regulation Authority Preferred stock dividends: Reflects dividends declared and deemed dividends upon redemption of preferred stock Pre-provision profit/(loss): Represents total net revenue less noninterest expense. The Firm believes that this financial measure is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses.Pre-tax margin: Represents income before income tax expense divided by total net revenue, which is, in management's view, a comprehensive measure of pretax performance derived by measuring earnings after all costs are taken into consideration. It is one basis upon which management evaluates the performance of AWM against the performance of their respective competitors.Principal transactions revenue: Principal transactions revenue is driven by many factors, including: •the bid-offer spread, which is the difference between the price at which a market participant is willing and able to sell an instrument to the Firm and the price at which another market participant is willing and able to buy it from the Firm, and vice versa; and •realized and unrealized gains and losses on financial instruments and commodities transactions, including those accounted for under the fair value option, primarily used in client-driven market-making activities. -Realized gains and losses result from the sale of instruments, closing out or termination of transactions, or interim cash payments. -Unrealized gains and losses result from changes in valuation. In connection with its client-driven market-making activities, the Firm transacts in debt and equity instruments, derivatives and commodities, including physical commodities inventories and financial instruments that reference commodities. Principal transactions revenue also includes realized and unrealized gains and losses related to: •derivatives designated in qualifying hedge accounting relationships, primarily fair value hedges of commodity and foreign exchange risk; •derivatives used for specific risk management purposes, primarily to mitigate credit, foreign exchange and interest rate risks.Production revenue: Includes fees and income recognized as earned on mortgage loans originated with the intent to sell, and the impact of risk management activities associated with the mortgage pipeline and warehouse loans. Production revenue also includes gains and losses on sales and lower of cost or fair value adjustments on mortgage loans held-for-sale (excluding certain repurchased loans insured by U.S. government agencies), and changes in the fair value of financial instruments measured under the fair value option. Pre-provision profit/(loss): Represents total net revenue less noninterest expense. The Firm believes that this financial measure is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses. Pre-tax margin: Represents income before income tax expense divided by total net revenue, which is, in management's view, a comprehensive measure of pretax performance derived by measuring earnings after all costs are taken into consideration. It is one basis upon which management evaluates the performance of AWM against the performance of their respective competitors. Principal transactions revenue: Principal transactions revenue is driven by many factors, including: •the bid-offer spread, which is the difference between the price at which a market participant is willing and able to sell an instrument to the Firm and the price at which another market participant is willing and able to buy it from the Firm, and vice versa; and •realized and unrealized gains and losses on financial instruments and commodities transactions, including those accounted for under the fair value option, primarily used in client-driven market-making activities. -Realized gains and losses result from the sale of instruments, closing out or termination of transactions, or interim cash payments. -Unrealized gains and losses result from changes in valuation. In connection with its client-driven market-making activities, the Firm transacts in debt and equity instruments, derivatives and commodities, including physical commodities inventories and financial instruments that reference commodities. Principal transactions revenue also includes realized and unrealized gains and losses related to: •derivatives designated in qualifying hedge accounting relationships, primarily fair value hedges of commodity and foreign exchange risk; •derivatives used for specific risk management purposes, primarily to mitigate credit, foreign exchange and interest rate risks. Production revenue: Includes fees and income recognized as earned on mortgage loans originated with the intent to sell, and the impact of risk management activities associated with the mortgage pipeline and warehouse loans. Production revenue also includes gains and losses on sales and lower of cost or fair value adjustments on mortgage loans held-for-sale (excluding certain repurchased loans insured by U.S. government agencies), and changes in the fair value of financial instruments measured under the fair value option. JPMorgan Chase & Co./2025 Form 10-K325 JPMorgan Chase & Co./2025 Form 10-K325 JPMorgan Chase & Co./2025 Form 10-K325 JPMorgan Chase & Co./2025 Form 10-K 325 --- ## Modified Risk: December 31, 2025 **Key changes:** - Updated: "(in millions, except ratios) Loans held-for-sale and loans at fair value(a) Credit derivatives and credit-related notes used in credit portfolio management activities(b)(c) Maturity profile(d)Ratings profileDecember 31, 2024(in millions, except ratios)1 year or lessAfter 1 year through 5 yearsAfter 5 yearsTotalInvestment-gradeNoninvestment-gradeTotalTotal % of IGLoans retained$225,982 $289,199 $175,215 $690,396 $471,670 $218,726 $690,396 68 %Derivative receivables60,967 60,967 Less: Liquid securities and other cash collateral held against derivatives(28,160)(28,160)Total derivative receivables, net of collateral11,515 7,418 13,874 32,807 24,707 8,100 32,807 75 Lending-related commitments121,283 384,529 25,655 531,467 352,082 179,385 531,467 66 Subtotal358,780 681,146 214,744 1,254,670 848,459 406,211 1,254,670 68 Loans held-for-sale and loans at fair value(a)31,922 31,922 Receivables from customers51,929 51,929 Total exposure - net of liquid securities and other cash collateral held against derivatives$1,338,521 $1,338,521 Credit derivatives and credit-related notes used in credit portfolio management activities(b)(c)$(5,442)$(33,751)$(1,695)$(40,888)$(31,691)$(9,197)$(40,888)78 % Maturity profile(d) Loans held-for-sale and loans at fair value(a) Credit derivatives and credit-related notes used in credit portfolio management activities(b)(c) (a)Loans held-for-sale are primarily related to syndicated loans and loans transferred from the retained portfolio." **Prior (2025):** The following tables present the maturity and internal risk ratings profiles of the wholesale credit portfolio as of December 31, 2024 and 2023. The Firm generally considers internal ratings with qualitative characteristics equivalent to BBB-/Baa3 or higher as investment grade, and takes into consideration collateral and structural support when determining the internal risk rating for each credit facility. Refer to Note 12 for further information on internal risk ratings. Maturity profile(d)Ratings profileDecember 31, 2024(in millions, except ratios)1 year or lessAfter 1 year through 5 yearsAfter 5 yearsTotalInvestment-gradeNoninvestment-gradeTotalTotal % of IGLoans retained$225,982 $289,199 $175,215 $690,396 $471,670 $218,726 $690,396 68 %Derivative receivables60,967 60,967 Less: Liquid securities and other cash collateral held against derivatives(28,160)(28,160)Total derivative receivables, net of collateral11,515 7,418 13,874 32,807 24,707 8,100 32,807 75 Lending-related commitments121,283 384,529 25,655 531,467 352,082 179,385 531,467 66 Subtotal358,780 681,146 214,744 1,254,670 848,459 406,211 1,254,670 68 Loans held-for-sale and loans at fair value(a)31,922 31,922 Receivables from customers 51,929 51,929 Total exposure - net of liquid securities and other cash collateral held against derivatives$1,338,521 $1,338,521 Credit derivatives and credit-related notes used in credit portfolio management activities(b)(c)$(5,442)$(33,751)$(1,695)$(40,888)$(31,691)$(9,197)$(40,888)78 % Maturity profile(d) **Current (2026):** (in millions, except ratios) Loans held-for-sale and loans at fair value(a) Credit derivatives and credit-related notes used in credit portfolio management activities(b)(c) Maturity profile(d)Ratings profileDecember 31, 2024(in millions, except ratios)1 year or lessAfter 1 year through 5 yearsAfter 5 yearsTotalInvestment-gradeNoninvestment-gradeTotalTotal % of IGLoans retained$225,982 $289,199 $175,215 $690,396 $471,670 $218,726 $690,396 68 %Derivative receivables60,967 60,967 Less: Liquid securities and other cash collateral held against derivatives(28,160)(28,160)Total derivative receivables, net of collateral11,515 7,418 13,874 32,807 24,707 8,100 32,807 75 Lending-related commitments121,283 384,529 25,655 531,467 352,082 179,385 531,467 66 Subtotal358,780 681,146 214,744 1,254,670 848,459 406,211 1,254,670 68 Loans held-for-sale and loans at fair value(a)31,922 31,922 Receivables from customers51,929 51,929 Total exposure - net of liquid securities and other cash collateral held against derivatives$1,338,521 $1,338,521 Credit derivatives and credit-related notes used in credit portfolio management activities(b)(c)$(5,442)$(33,751)$(1,695)$(40,888)$(31,691)$(9,197)$(40,888)78 % Maturity profile(d) Loans held-for-sale and loans at fair value(a) Credit derivatives and credit-related notes used in credit portfolio management activities(b)(c) (a)Loans held-for-sale are primarily related to syndicated loans and loans transferred from the retained portfolio. (b)These derivatives do not qualify for hedge accounting under U.S. GAAP. (c)The notional amounts are presented on a net basis by underlying reference entity and the ratings profile shown is based on the ratings of the reference entity on which protection has been purchased. Predominantly all of the credit derivatives entered into by the Firm where it has purchased protection used in credit portfolio management activities are executed with investment-grade counterparties. In addition, the Firm obtains credit protection against certain loans in the retained loan portfolio through the issuance of credit-related notes. (d)The maturity profile of retained loans, lending-related commitments and derivative receivables is generally based on remaining contractual maturity. Derivative contracts that are in a receivable position at December 31, 2025, may become payable prior to maturity based on their cash flow profile or changes in market conditions. JPMorgan Chase & Co./2025 Form 10-K119 JPMorgan Chase & Co./2025 Form 10-K119 JPMorgan Chase & Co./2025 Form 10-K119 JPMorgan Chase & Co./2025 Form 10-K 119 --- ## Modified Risk: Net cash (used in)/provided by investing activities **Key changes:** - Updated: "JPMorgan Chase & Co./2025 Form 10-K169 JPMorgan Chase & Co./2025 Form 10-K169 JPMorgan Chase & Co./2025 Form 10-K169 JPMorgan Chase & Co./2025 Form 10-K 169" **Prior (2025):** The Notes to Consolidated Financial Statements are an integral part of these statements. 176JPMorgan Chase & Co./2024 Form 10-K 176JPMorgan Chase & Co./2024 Form 10-K 176JPMorgan Chase & Co./2024 Form 10-K 176 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** The Notes to Consolidated Financial Statements are an integral part of these statements. JPMorgan Chase & Co./2025 Form 10-K169 JPMorgan Chase & Co./2025 Form 10-K169 JPMorgan Chase & Co./2025 Form 10-K169 JPMorgan Chase & Co./2025 Form 10-K 169 --- ## Modified Risk: Notes to consolidated financial statements **Key changes:** - Updated: "Year ended December 31, 2023(in millions)Consumer, excluding credit cardCredit cardWholesaleTotalPurchases$92,205 (b)(c)(d)$ - $60,300 (d)$152,505 Sales2,202 - 43,949 46,151 Retained loans reclassified to held-for-sale(a)274 - 1,486 1,760 Year ended December 31, 2023 (in millions) (b)(c)(d) (d) Retained loans reclassified to held-for-sale(a) (a)Reclassifications of loans to held-for-sale are non-cash transactions." - Updated: "(c)Excludes purchases of retained loans of $3.7 billion, $902 million and $5.1 billion for the years ended December 31, 2025, 2024 and 2023, respectively, which are predominantly sourced through the correspondent origination channel and underwritten in accordance with the Firm's standards." **Prior (2025):** Wholesale(c)(d) • Residential real estate(a) • Auto and other(b) • Secured by real estate • Commercial and industrial • Other(e) (a)Includes scored mortgage and home equity loans held in CCB and AWM, and scored mortgage loans held in CIB. (b)Includes scored auto, business banking and consumer unsecured loans as well as overdrafts, primarily in CCB. (c)Includes loans held in CIB, AWM, Corporate, and risk-rated exposure held in CCB, for which the wholesale methodology is applied when determining the allowance for loan losses. (d)The wholesale portfolio segment's classes align with loan classifications as defined by the bank regulatory agencies, based on the loan's collateral, purpose, and type of borrower. (e)Includes loans to financial institutions, SPEs, personal investment companies and trusts, individuals and individual entities (predominantly Global Private Bank clients within AWM and J.P. Morgan Wealth Management within CCB), states and political subdivisions, as well as loans to nonprofits. Refer to Note 14 for more information on SPEs. The following tables summarize the Firm's loan balances by portfolio segment. December 31, 2024Consumer, excluding credit cardCredit cardWholesaleTotal(a)(b)(in millions)Retained$376,334 $232,860 $690,396 $1,299,590 Held-for-sale945 - 6,103 7,048 At fair value15,531 - 25,819 41,350 Total$392,810 $232,860 $722,318 $1,347,988 December 31, 2023Consumer, excluding credit cardCredit cardWholesaleTotal(a)(b)(in millions)Retained$397,275 $211,123 $672,472 $1,280,870 Held-for-sale487 - 3,498 3,985 At fair value12,331 - 26,520 38,851 Total$410,093 $211,123 $702,490 $1,323,706 Total(a)(b) Total(a)(b) (a)Excludes $6.6 billion and $6.8 billion of accrued interest receivable at December 31, 2024 and 2023, respectively. The Firm wrote off accrued interest receivable of $84 million and $49 million for the years ended December 31, 2024 and 2023, respectively. (b)Loans (other than those for which the fair value option has been elected) are presented net of unamortized discounts and premiums and net deferred loan fees or costs. These amounts were not material as of December 31, 2024 and 2023. For the discount associated with First Republic loans, refer to Note 34 on pages 319-321. The following tables provide information about the carrying value of retained loans purchased, sold and reclassified to held-for-sale during the periods indicated. Loans that were reclassified to held-for-sale and sold in a subsequent period are excluded from the sales line of these tables. 2024Year ended December 31,(in millions)Consumer, excluding credit cardCredit cardWholesaleTotalPurchases$647 (b)(c)$ - $1,432 $2,079 Sales10,440 - 45,147 55,587 Retained loans reclassified to held-for-sale(a)1,656 - 749 2,405 (b)(c) Retained loans reclassified to held-for-sale(a) 2023Year ended December 31,(in millions)Consumer, excluding credit cardCredit cardWholesaleTotalPurchases$92,205 (b)(c)(d)$ - $60,300 (d)$152,505 Sales2,202 - 43,949 46,151 Retained loans reclassified to held-for-sale(a)274 - 1,486 1,760 (b)(c)(d) (d) Retained loans reclassified to held-for-sale(a) 246JPMorgan Chase & Co./2024 Form 10-K 246JPMorgan Chase & Co./2024 Form 10-K 246JPMorgan Chase & Co./2024 Form 10-K 246 JPMorgan Chase & Co./2024 Form 10-K 2022Year ended December 31,(in millions)Consumer, excluding credit cardCredit cardWholesaleTotalPurchases$1,625 (b)(c)$ - $1,088 $2,713 Sales2,884 - 41,934 44,818 Retained loans reclassified to held-for-sale(a)229 - 1,055 1,284 (b)(c) Retained loans reclassified to held-for-sale(a) (a)Reclassifications of loans to held-for-sale are non-cash transactions. (b)Includes purchases of residential real estate loans, including the Firm's voluntary repurchases of certain delinquent loans from loan pools as permitted by Government National Mortgage Association ("Ginnie Mae") guidelines for the years ended December 31, 2024, 2023 and 2022. The Firm typically elects to repurchase these delinquent loans as it continues to service them and/or manage the foreclosure process in accordance with applicable requirements of Ginnie Mae, FHA, RHS, and/or VA. (c)Excludes purchases of retained loans of $902 million, $5.1 billion and $12.4 billion for the years ended December 31, 2024, 2023 and 2022, respectively, which are predominantly sourced through the correspondent origination channel and underwritten in accordance with the Firm's standards. (d)Includes loans acquired in the First Republic acquisition consisting of $91.9 billion in Consumer, excluding credit card and $59.2 billion in Wholesale. Refer to Note 34 for additional information. **Current (2026):** Year ended December 31, 2023(in millions)Consumer, excluding credit cardCredit cardWholesaleTotalPurchases$92,205 (b)(c)(d)$ - $60,300 (d)$152,505 Sales2,202 - 43,949 46,151 Retained loans reclassified to held-for-sale(a)274 - 1,486 1,760 Year ended December 31, 2023 (in millions) (b)(c)(d) (d) Retained loans reclassified to held-for-sale(a) (a)Reclassifications of loans to held-for-sale are non-cash transactions. (b)Includes purchases of residential real estate loans, including the Firm's voluntary repurchases of certain delinquent loans from loan pools as permitted by Government National Mortgage Association ("Ginnie Mae") guidelines for the years ended December 31, 2025, 2024 and 2023. The Firm typically elects to repurchase these delinquent loans as it continues to service them and/or manage the foreclosure process in accordance with applicable requirements of Ginnie Mae, FHA, RHS, and/or VA. (c)Excludes purchases of retained loans of $3.7 billion, $902 million and $5.1 billion for the years ended December 31, 2025, 2024 and 2023, respectively, which are predominantly sourced through the correspondent origination channel and underwritten in accordance with the Firm's standards. (d)Includes loans acquired in the First Republic acquisition consisting of $91.9 billion in Consumer, excluding credit card and $59.2 billion in Wholesale. Refer to Note 34 for additional information. --- ## Modified Risk: JPMorganChase's compliance risk and operating costs could be higher in jurisdictions with less predictable legal, regulatory and judicial frameworks. **Key changes:** - Updated: "JPMorganChase conducts business in certain jurisdictions in which the application of the rule of law is inconsistent, extralegal or less predictable, including with respect to: •the absence of a statutory, regulatory or interpretative basis for engaging in specific types of business or transactions •applicable law or judicial orders that are ambiguous, conflicting, or inconsistently applied or interpreted •actions by or at the direction of governmental authorities or officials •uncertainty concerning the enforceability of intellectual property rights or contractual or other obligations •challenges associated with competing in economies in which the government controls or protects all or a portion of the local economy or specific businesses, or where graft or corruption may be pervasive •the threat of investigations by governmental authorities, civil litigations or criminal prosecutions that are arbitrary or otherwise contrary to established legal principles in other parts of the world, and •the termination of licenses or other permissions required to operate in the relevant jurisdiction, or the suspension of business relationships with governmental entities, leading to lost revenue." **Prior (2025):** JPMorganChase's businesses and results of operations may be adversely affected by actions or initiatives by national, state or local governmental authorities that: •seek to discourage financial institutions from doing business with companies engaged in certain industries, or conversely, to penalize financial institutions that elect not to do business with such companies, or •mandate specific business practices that companies operating in the relevant jurisdiction must adopt. Because governmental policies in one jurisdiction may differ or conflict with those in other jurisdictions, JPMorganChase may face negative consequences regardless of the course of action it takes or elects not to take, including: •restrictions or prohibitions on doing business within a particular jurisdiction, or with governmental entities in a jurisdiction •the threat of enforcement actions, including under antitrust or other anti-competition laws, rules and regulations, and•harm to its reputation arising from public criticism, including from politicians, activists and other stakeholders.JPMorganChase has been prohibited from engaging in certain business activities in specific jurisdictions as a result of these types of governmental actions, and there is no assurance that it will not face similar restrictions on its business and operations in the future.Requirements for the orderly resolution of JPMorganChase could result in JPMorganChase having to restructure or reorganize its businesses and could increase its funding or operational costs or curtail its businesses.JPMorganChase is required under Federal Reserve and FDIC rules to prepare and submit periodically to those agencies a detailed plan for rapid and orderly resolution in bankruptcy, without extraordinary government support, in the event of material financial distress or failure. The evaluation of JPMorganChase's resolution plan by these agencies may change, and the requirements for resolution plans may be modified from time to time. Any such determinations or modifications could result in JPMorganChase needing to make changes to its legal entity structure or to certain internal or external activities, which could increase its funding or operational costs, or hamper its ability to serve clients and customers.If the Federal Reserve and the FDIC were both to determine that a resolution plan submitted by JPMorganChase has deficiencies, they could jointly impose more stringent capital, leverage or liquidity requirements or restrictions on JPMorganChase's growth, activities or operations. The agencies could also require that JPMorganChase restructure, reorganize or divest assets or businesses in ways that could materially and adversely affect JPMorganChase's operations and strategy. Holders of JPMorgan Chase & Co.'s debt and equity securities will absorb losses if it were to enter into a resolution.Federal Reserve rules require that JPMorgan Chase & Co. (the "Parent Company") maintain minimum levels of unsecured external long-term debt and other loss-absorbing capacity with specific terms ("eligible LTD") for purposes of recapitalizing JPMorganChase's operating subsidiaries if the Parent Company were to enter into a resolution either: •in a bankruptcy proceeding under Chapter 11 of the U.S. Bankruptcy Code, or •in a receivership administered by the FDIC under Title II of the Dodd-Frank Act ("Title II"). •the threat of enforcement actions, including under antitrust or other anti-competition laws, rules and regulations, and •harm to its reputation arising from public criticism, including from politicians, activists and other stakeholders. JPMorganChase has been prohibited from engaging in certain business activities in specific jurisdictions as a result of these types of governmental actions, and there is no assurance that it will not face similar restrictions on its business and operations in the future. **Current (2026):** JPMorganChase conducts business in certain jurisdictions in which the application of the rule of law is inconsistent, extralegal or less predictable, including with respect to: •the absence of a statutory, regulatory or interpretative basis for engaging in specific types of business or transactions •applicable law or judicial orders that are ambiguous, conflicting, or inconsistently applied or interpreted •actions by or at the direction of governmental authorities or officials •uncertainty concerning the enforceability of intellectual property rights or contractual or other obligations •challenges associated with competing in economies in which the government controls or protects all or a portion of the local economy or specific businesses, or where graft or corruption may be pervasive •the threat of investigations by governmental authorities, civil litigations or criminal prosecutions that are arbitrary or otherwise contrary to established legal principles in other parts of the world, and •the termination of licenses or other permissions required to operate in the relevant jurisdiction, or the suspension of business relationships with governmental entities, leading to lost revenue. If the legal, regulatory or judicial framework in a particular jurisdiction is susceptible to producing outcomes that are inconsistent, unexpected or contrary to established legal principles, this could create a more difficult business environment for JPMorganChase and could negatively affect its operations and reduce its earnings with respect to that jurisdiction. In addition, conducting business in a jurisdiction with a less predictable legal, regulatory or judicial framework could require JPMorganChase to devote significant additional resources to understanding, and operating its businesses in compliance with, applicable law and judicial precedents in that jurisdiction, and there can be no assurance that JPMorganChase will always be successful in doing so. 12 12 12 12 JPMorganChase's business and operations could be negatively affected by governmental policies that discourage or penalize doing business with certain industries or that require specific business practices.JPMorganChase's businesses and results of operations could be adversely affected by actions or initiatives by governmental authorities or officials that:•seek to discourage financial institutions from doing business with companies engaged in certain industries, or conversely, to penalize financial institutions that elect not to do business with such companies, or•mandate specific business practices for companies operating in the relevant jurisdiction.Governmental policies may differ or conflict across jurisdictions, which could lead to negative consequences for JPMorganChase regardless of the course of action that it takes or elects not to take, including:•prohibitions or restrictions on doing business within a particular jurisdiction, or with governmental entities in a jurisdiction •the threat of enforcement actions, including under antitrust or other anti-competition laws, and•reputational harm.Changes in the requirements for the regulatory evaluation of JPMorganChase's resolution plan could increase its funding or operational costs or require restructuring or curtailment of its businesses.JPMorganChase must periodically submit a detailed resolution plan to the Federal Reserve and the FDIC for its rapid and orderly resolution in bankruptcy, without extraordinary government support, in the event of material financial distress or failure. The regulatory requirements concerning resolution plans and the evaluation of JPMorganChase's resolution plan by the banking regulators could change over time.Any such changes could result in JPMorganChase making changes to its legal entity structure or to certain of its internal or external activities, which could increase its funding or operational costs, or hamper its ability to serve clients and customers.If the Federal Reserve and the FDIC were both to determine that a resolution plan submitted by JPMorganChase has deficiencies, they could jointly impose more stringent capital, leverage or liquidity requirements, or restrictions on JPMorganChase's growth, activities or operations. The banking regulators could also require that JPMorganChase restructure, reorganize or divest assets or businesses in ways that could materially and adversely affect JPMorganChase's operations and strategy.Holders of JPMorgan Chase & Co.'s debt and equity securities will absorb losses if it were to enter into a resolution.Federal Reserve rules require JPMorgan Chase & Co. (the "Parent Company") to maintain minimum levels of unsecured external long-term debt and other loss-absorbing capacity with specific terms ("eligible LTD") to recapitalize JPMorganChase's operating subsidiaries if the Parent Company were to enter into a resolution either in a bankruptcy proceeding under Chapter 11 of the U.S. Bankruptcy Code, or in a receivership administered by the FDIC under Title II of the Dodd-Frank Act ("Title II"). If the Parent Company were to enter into a resolution, holders of eligible LTD, other unsecured creditors and holders of equity securities of the Parent Company will absorb the losses of the Parent Company and its subsidiaries.The preferred "single point of entry" strategy under JPMorganChase's resolution plan contemplates that the Parent Company would enter bankruptcy proceedings and JPMorganChase's material subsidiaries would be recapitalized, as needed, so that they could continue normal operations or subsequently be divested or wound down in an orderly manner. As a result, the Parent Company's losses and any losses incurred by its subsidiaries would be imposed first on holders of the Parent Company's equity securities and thereafter on its unsecured creditors, including holders of eligible LTD. Claims of the Parent Company's shareholders and unsecured creditors would have a junior position to the claims of creditors of JPMorganChase's subsidiaries and to the claims of priority (as determined by statute) and secured creditors of the Parent Company.Accordingly, in a resolution of the Parent Company in bankruptcy, unsecured creditors of the Parent Company, including holders of eligible LTD of the Parent Company, would realize value only to the extent available to the Parent Company as a shareholder of JPMorgan Chase Bank, N.A. and its other subsidiaries, and only after any claims of priority and secured creditors of the Parent Company have been fully repaid.The FDIC has similarly indicated that a single point of entry recapitalization model would be its expected strategy to resolve a systemically important financial institution, such as the Parent Company, under Title II. However, the FDIC has not formally adopted or committed to any specific resolution strategy.If the Parent Company were to approach, or enter into, a resolution, none of the Parent Company, the Federal Reserve or the FDIC is obligated to follow JPMorganChase's preferred resolution strategy, and losses to unsecured creditors of the Parent Company, including holders of eligible LTD, and to holders of equity securities of the Parent Company, under whatever strategy is ultimately followed, could be JPMorganChase's business and operations could be negatively affected by governmental policies that discourage or penalize doing business with certain industries or that require specific business practices.JPMorganChase's businesses and results of operations could be adversely affected by actions or initiatives by governmental authorities or officials that:•seek to discourage financial institutions from doing business with companies engaged in certain industries, or conversely, to penalize financial institutions that elect not to do business with such companies, or•mandate specific business practices for companies operating in the relevant jurisdiction.Governmental policies may differ or conflict across jurisdictions, which could lead to negative consequences for JPMorganChase regardless of the course of action that it takes or elects not to take, including:•prohibitions or restrictions on doing business within a particular jurisdiction, or with governmental entities in a jurisdiction •the threat of enforcement actions, including under antitrust or other anti-competition laws, and•reputational harm.Changes in the requirements for the regulatory evaluation of JPMorganChase's resolution plan could increase its funding or operational costs or require restructuring or curtailment of its businesses.JPMorganChase must periodically submit a detailed resolution plan to the Federal Reserve and the FDIC for its rapid and orderly resolution in bankruptcy, without extraordinary government support, in the event of material financial distress or failure. The regulatory requirements concerning resolution plans and the evaluation of JPMorganChase's resolution plan by the banking regulators could change over time.Any such changes could result in JPMorganChase making changes to its legal entity structure or to certain of its internal or external activities, which could increase its funding or operational costs, or hamper its ability to serve clients and customers.If the Federal Reserve and the FDIC were both to determine that a resolution plan submitted by JPMorganChase has deficiencies, they could jointly impose more stringent capital, leverage or liquidity requirements, or restrictions on JPMorganChase's growth, activities or operations. The banking regulators could also require that JPMorganChase restructure, reorganize or divest assets or businesses in ways that could materially and adversely affect JPMorganChase's operations and strategy. --- ## Modified Risk: Banking & Payments loans by client coverage segment (average)(b) **Key changes:** - Updated: "Global Corporate Banking & Global Investment Banking(c) (e) Commercial & Specialized Industries(d) Employees (f) (a)Loans held-for-sale and loans at fair value primarily reflect lending-related positions originated and purchased in Markets, including loans held for securitization." - Updated: "At December 31, 2025, 2024 and 2023, mortgage loans 90 or more days past due and insured by U.S." **Prior (2025):** Employees (a)Loans held-for-sale and loans at fair value primarily reflect lending-related positions originated and purchased in Markets, including loans held for securitization. (b)Refer to page 78 for a description of each of the client coverage segments. (c)In the fourth quarter of 2023, certain deposits associated with First Republic were transferred to CIB from CCB. Selected metricsAs of or for the year ended December 31, (in millions, except ratios)202420232022Credit data and quality statisticsNet charge-offs/(recoveries)$689 (d)$588 $166 Nonperforming assets:Nonaccrual loans:Nonaccrual loans retained(a)$3,258 $1,675 $1,484 Nonaccrual loans held-for-sale and loans at fair value(b)1,502 828 848 Total nonaccrual loans4,760 2,503 2,332 Derivative receivables145 364 296 Assets acquired in loan satisfactions213 169 87 Total nonperforming assets$5,118 $3,036 $2,715 Allowance for credit losses:Allowance for loan losses$7,294 $7,326 $5,616 Allowance for lending-related commitments1,976 1,849 2,278 Total allowance for credit losses$9,270 $9,175 $7,894 Net charge-off/(recovery) rate(c)0.14 %0.13 %0.04 %Allowance for loan losses to period-end loans retained1.51 1.54 1.33 Allowance for loan losses to nonaccrual loans retained(a)224 437 378 Nonaccrual loans to total period-end loans0.91 0.49 0.50 (a)Allowance for loan losses of $435 million, $251 million and $257 million were held against these nonaccrual loans at December 31, 2024, 2023 and 2022, respectively.(b)Excludes mortgage loans past due and insured by U.S. government agencies, which are primarily 90 or more days past due. These loans have been excluded based upon the government guarantee. At December 31, 2024, 2023 and 2022, mortgage loans 90 or more days past due and insured by U.S. government agencies were $37 million, $59 million and $115 million, respectively.(c)Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate.(d)Includes $72 million related to a purchased credit deteriorated ("PCD") loan that was charged off in the fourth quarter of 2024. Selected metricsAs of or for the year ended December 31, (in millions, except ratios)202420232022Credit data and quality statisticsNet charge-offs/(recoveries)$689 (d)$588 $166 Nonperforming assets:Nonaccrual loans:Nonaccrual loans retained(a)$3,258 $1,675 $1,484 Nonaccrual loans held-for-sale and loans at fair value(b)1,502 828 848 Total nonaccrual loans4,760 2,503 2,332 Derivative receivables145 364 296 Assets acquired in loan satisfactions213 169 87 Total nonperforming assets$5,118 $3,036 $2,715 Allowance for credit losses:Allowance for loan losses$7,294 $7,326 $5,616 Allowance for lending-related commitments1,976 1,849 2,278 Total allowance for credit losses$9,270 $9,175 $7,894 Net charge-off/(recovery) rate(c)0.14 %0.13 %0.04 %Allowance for loan losses to period-end loans retained1.51 1.54 1.33 Allowance for loan losses to nonaccrual loans retained(a)224 437 378 Nonaccrual loans to total period-end loans0.91 0.49 0.50 **Current (2026):** Global Corporate Banking & Global Investment Banking(c) (e) Commercial & Specialized Industries(d) Employees (f) (a)Loans held-for-sale and loans at fair value primarily reflect lending-related positions originated and purchased in Markets, including loans held for securitization. (b)Refer to page 70 for a description of each of the client coverage segments. (c)In the second quarter of 2025, amounts were reclassified from Other to Global Corporate Banking & Global Investment Banking reflecting the subsequent alignment of certain business activities after the Firm's business segment reorganization in the second quarter of 2024. Prior-period amounts have been revised to conform with the current presentation.(d)In the second quarter of 2025, the Middle Market Banking client coverage segment was renamed Commercial & Specialized Industries.(e)On January 1, 2025, $5.6 billion of loans were realigned from Global Corporate Banking to Fixed Income Markets.(f)In the first quarter of 2025, 219 employees were transferred to Corporate as a result of the centralization of certain functions.Selected metricsAs of or for the year ended December 31, (in millions, except ratios)202520242023Credit data and quality statisticsNet charge-offs/(recoveries)$1,509 $689 (d)$588 Nonperforming assets:Nonaccrual loans:Nonaccrual loans retained(a)$3,641 $3,258 $1,675 Nonaccrual loans held-for-sale and loans at fair value(b)1,518 1,502 828 Total nonaccrual loans5,159 4,760 2,503 Derivative receivables204 145 364 Assets acquired in loan satisfactions192 213 169 Total nonperforming assets$5,555 $5,118 $3,036 Allowance for credit losses:Allowance for loan losses$7,632 $7,294 $7,326 Allowance for lending-related commitments2,738 1,976 1,849 Total allowance for credit losses$10,370 $9,270 $9,175 Net charge-off/(recovery) rate(c)0.29 %0.14 %0.13 %Allowance for loan losses to period-end loans retained1.37 1.51 1.54 Allowance for loan losses to nonaccrual loans retained(a)210 224 437 Nonaccrual loans to total period-end loans0.82 0.91 0.49 (a)Allowance for loan losses of $597 million, $435 million and $251 million were held against these nonaccrual loans at December 31, 2025, 2024 and 2023, respectively.(b)Excludes mortgage loans past due and insured by U.S. government agencies, which are primarily 90 or more days past due. These loans have been excluded based upon the government guarantee. At December 31, 2025, 2024 and 2023, mortgage loans 90 or more days past due and insured by U.S. government agencies were $128 million, $37 million and $59 million, respectively.(c)Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate.(d)Includes $72 million related to a purchased credit deteriorated ("PCD") loan that was charged off in the fourth quarter of 2024. (c)In the second quarter of 2025, amounts were reclassified from Other to Global Corporate Banking & Global Investment Banking reflecting the subsequent alignment of certain business activities after the Firm's business segment reorganization in the second quarter of 2024. Prior-period amounts have been revised to conform with the current presentation. (d)In the second quarter of 2025, the Middle Market Banking client coverage segment was renamed Commercial & Specialized Industries. (e)On January 1, 2025, $5.6 billion of loans were realigned from Global Corporate Banking to Fixed Income Markets. (f)In the first quarter of 2025, 219 employees were transferred to Corporate as a result of the centralization of certain functions. Selected metricsAs of or for the year ended December 31, (in millions, except ratios)202520242023Credit data and quality statisticsNet charge-offs/(recoveries)$1,509 $689 (d)$588 Nonperforming assets:Nonaccrual loans:Nonaccrual loans retained(a)$3,641 $3,258 $1,675 Nonaccrual loans held-for-sale and loans at fair value(b)1,518 1,502 828 Total nonaccrual loans5,159 4,760 2,503 Derivative receivables204 145 364 Assets acquired in loan satisfactions192 213 169 Total nonperforming assets$5,555 $5,118 $3,036 Allowance for credit losses:Allowance for loan losses$7,632 $7,294 $7,326 Allowance for lending-related commitments2,738 1,976 1,849 Total allowance for credit losses$10,370 $9,270 $9,175 Net charge-off/(recovery) rate(c)0.29 %0.14 %0.13 %Allowance for loan losses to period-end loans retained1.37 1.51 1.54 Allowance for loan losses to nonaccrual loans retained(a)210 224 437 Nonaccrual loans to total period-end loans0.82 0.91 0.49 --- ## Modified Risk: Distribution of Daily Backtesting Gains and Losses **Key changes:** - Updated: "138JPMorgan Chase & Co./2025 Form 10-K 138JPMorgan Chase & Co./2025 Form 10-K 138JPMorgan Chase & Co./2025 Form 10-K 138 JPMorgan Chase & Co./2025 Form 10-K" **Prior (2025):** JPMorgan Chase & Co./2024 Form 10-K145 JPMorgan Chase & Co./2024 Form 10-K145 JPMorgan Chase & Co./2024 Form 10-K145 JPMorgan Chase & Co./2024 Form 10-K 145 **Current (2026):** 138JPMorgan Chase & Co./2025 Form 10-K 138JPMorgan Chase & Co./2025 Form 10-K 138JPMorgan Chase & Co./2025 Form 10-K 138 JPMorgan Chase & Co./2025 Form 10-K --- ## Modified Risk: Critical Audit Matters **Key changes:** - Updated: "Allowance for Loan Losses - Portfolio-Based Component of the Wholesale and Credit Card Retained Loan Portfolios As described in Note 13 to the consolidated financial statements, as of December 31, 2025, the allowance for loan losses for the portfolio-based component of the wholesale and credit card retained loan portfolios was $7.6 billion and $15.6 billion, respectively, on total portfolio-based wholesale and credit card retained loans of $788.0 billion and $247.8 billion, respectively." - Updated: "These procedures included testing the effectiveness of controls relating to the allowance for loan losses related to the portfolio-based component of the wholesale and credit card retained loan portfolios, including controls over the development of the forecasted macroeconomic variables." **Prior (2025):** The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that (i) relate to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. Allowance for Loan Losses - Portfolio-based component of Wholesale Loan and Credit Card Loan Portfolios As described in Note 13 to the consolidated financial statements, the allowance for loan losses for the portfolio-based component of the wholesale and credit card loan portfolios was $22.0 billion on total portfolio-based retained loans of $919.3 billion at December 31, 2024. The Firm's allowance for loan losses represents management's estimate of expected credit losses over the remaining expected life of the Firm's loan portfolios and considers expected future changes in macroeconomic conditions. The portfolio-based component of the Firm's allowance for loan losses for the wholesale and credit card retained loan portfolios begins with a quantitative calculation of expected credit losses over the expected life of the loan by applying credit loss factors to the estimated exposure at default. The credit loss factors applied are determined based on the weighted average of five internally developed macroeconomic scenarios that take into consideration the Firm's economic outlook as derived through forecast macroeconomic variables, the most significant of which are U.S. unemployment and U.S. real gross domestic product. This quantitative calculation is further adjusted to take into consideration model imprecision, emerging risk assessments, trends and other subjective factors that are not yet otherwise reflected in the credit loss estimate. The principal considerations for our determination that performing procedures relating to the allowance for loan losses for the portfolio-based component of the wholesale and credit card loan portfolios is a critical audit matter are (i) the significant judgment and estimation by management in the forecast of macroeconomic variables, specifically U.S. unemployment and U.S. real gross domestic product, as the Firm's forecasts of economic conditions significantly affect its estimate of expected credit losses at the balance sheet date, (ii) the significant judgment and estimation by management in determining the quantitative calculation utilized in their credit loss estimates and the adjustments to take into consideration model imprecision, emerging risk assessments, trends and other subjective factors that are not yet otherwise reflected in the credit loss estimate, which in turn led to a high degree of auditor judgment, subjectivity, and effort in performing procedures and in evaluating audit evidence obtained relating to the credit loss estimates and the appropriateness of the adjustments to the credit loss estimates, and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the Firm's allowance for loan losses, including controls over model validation and generation of macroeconomic scenarios. These procedures also included, among others, testing management's process for estimating the allowance for loan losses, which involved (i) evaluating the appropriateness of the models and methodologies used in quantitative calculations; (ii) evaluating the reasonableness of forecasts of U.S. unemployment and U.S. real gross domestic product; (iii) testing the completeness and accuracy of data used in the estimate; and (iv) evaluating the reasonableness of management's adjustments to the quantitative output for the impacts of model imprecision, emerging risk assessments, trends and other subjective factors that are not yet otherwise reflected in the credit loss estimate. These procedures also included the use of professionals with specialized skill and knowledge to assist in evaluating the appropriateness of certain models, methodologies and macroeconomic variables.Fair Value of Certain Level 3 Financial InstrumentsAs described in Notes 2 and 3 to the consolidated financial statements, the Firm carries $1.5 trillion of its assets and $586.2 billion of its liabilities at fair value on a recurring basis. Included in these balances are $10.9 billion of trading assets and $51.8 billion of liabilities measured at fair value on a recurring basis, collectively financial instruments, which are classified as level 3 as they contain one or more inputs to valuation which are unobservable and significant to their fair value measurement. The Firm utilized internally developed valuation models and unobservable inputs to estimate fair value of the level 3 financial instruments. The unobservable inputs used by management to estimate the fair value of certain of these financial instruments include interest rate volatility, equity volatility, Bermudan switch value and correlation relating to interest rates, interest rate-to-foreign exchange, judgment and estimation by management in determining the quantitative calculation utilized in their credit loss estimates and the adjustments to take into consideration model imprecision, emerging risk assessments, trends and other subjective factors that are not yet otherwise reflected in the credit loss estimate, which in turn led to a high degree of auditor judgment, subjectivity, and effort in performing procedures and in evaluating audit evidence obtained relating to the credit loss estimates and the appropriateness of the adjustments to the credit loss estimates, and (iii) the audit effort involved the use of professionals with specialized skill and knowledge. Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the Firm's allowance for loan losses, including controls over model validation and generation of macroeconomic scenarios. These procedures also included, among others, testing management's process for estimating the allowance for loan losses, which involved (i) evaluating the appropriateness of the models and methodologies used in quantitative calculations; (ii) evaluating the reasonableness of forecasts of U.S. unemployment and U.S. real gross domestic product; (iii) testing the completeness and accuracy of data used in the estimate; and (iv) evaluating the reasonableness of management's adjustments to the quantitative output for the impacts of model imprecision, emerging risk assessments, trends and other subjective factors that are not yet otherwise reflected in the credit loss estimate. These procedures also included the use of professionals with specialized skill and knowledge to assist in evaluating the appropriateness of certain models, methodologies and macroeconomic variables. Fair Value of Certain Level 3 Financial Instruments As described in Notes 2 and 3 to the consolidated financial statements, the Firm carries $1.5 trillion of its assets and $586.2 billion of its liabilities at fair value on a recurring basis. Included in these balances are $10.9 billion of trading assets and $51.8 billion of liabilities measured at fair value on a recurring basis, collectively financial instruments, which are classified as level 3 as they contain one or more inputs to valuation which are unobservable and significant to their fair value measurement. The Firm utilized internally developed valuation models and unobservable inputs to estimate fair value of the level 3 financial instruments. The unobservable inputs used by management to estimate the fair value of certain of these financial instruments include interest rate volatility, equity volatility, Bermudan switch value and correlation relating to interest rates, interest rate-to-foreign exchange, 170JPMorgan Chase & Co./2024 Form 10-K 170JPMorgan Chase & Co./2024 Form 10-K 170JPMorgan Chase & Co./2024 Form 10-K 170 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that (i) relate to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. Allowance for Loan Losses - Portfolio-Based Component of the Wholesale and Credit Card Retained Loan Portfolios As described in Note 13 to the consolidated financial statements, as of December 31, 2025, the allowance for loan losses for the portfolio-based component of the wholesale and credit card retained loan portfolios was $7.6 billion and $15.6 billion, respectively, on total portfolio-based wholesale and credit card retained loans of $788.0 billion and $247.8 billion, respectively. The Firm's allowance for loan losses represents management's estimate of expected credit losses over the remaining expected life of the Firm's retained loan portfolios. The portfolio-based component begins with a quantitative calculation that covers expected credit losses over a loan's expected life. The expected credit losses are derived using a weighted average of five internally developed macroeconomic scenarios over an eight-quarter forecast period. As disclosed by management, one of the most significant judgments involved in estimating the allowance for loan losses relates to the forecasted macroeconomic variables used to estimate credit losses over the eight-quarter forecast period within management's methodology. The significant forecasted macroeconomic variables for the consumer portfolio include regional U.S. unemployment rates and U.S. HPI. The significant forecasted macroeconomic variables for the wholesale portfolio include U.S. unemployment, U.S. real GDP growth rate, U.S. equity prices, U.S. interest rates, U.S. corporate credit spreads, oil prices, U.S. commercial real estate prices and U.S. HPI. The principal considerations for our determination that performing procedures relating to the allowance for loan losses for the portfolio-based component of the wholesale and credit card retained loan portfolios is a critical audit matter are (i) the significant judgment by management when developing the allowance for loan losses related to the portfolio-based component of the wholesale and credit card retained loan portfolios; (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating management's significant assumptions related to the U.S. unemployment and the U.S. real GDP growth rate; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the allowance for loan losses related to the portfolio-based component of the wholesale and credit card retained loan portfolios, including controls over the development of the forecasted macroeconomic variables. These procedures also included, among others, (i) testing management's process for developing the allowance for loan losses related to the portfolio-based component of the wholesale and credit card retained loan portfolios (ii) testing the completeness and accuracy of certain data used in developing the forecasted macroeconomic variables and (iii) the involvement of professionals with specialized skill and knowledge to assist in evaluating (a) the appropriateness of the methodology used by management in developing the forecasted macroeconomic variables and (b) the reasonableness of the U.S. unemployment and the U.S. real GDP growth rate assumptions.Fair Value of Certain Level 3 Financial InstrumentsAs described in Note 2 to the consolidated financial statements, as of December 31, 2025, the Firm had certain financial instruments which included $2.4 billion of deposits, $5.6 billion of short-term borrowings and $46.7 billion of long-term debt, which are measured at fair value on a recurring basis and are classified as level 3. Financial instruments valued using internally developed valuation models and other valuation techniques that use significant unobservable inputs are classified within level 3 of the fair value hierarchy. The principal valuation techniques and unobservable inputs used by management to measure the fair value of certain level 3 financial instruments include the following internally developed valuation models: (i) option pricing, which uses unobservable inputs related to interest rate volatility, Bermudan switch value, interest rate correlation, interest rate-to-foreign exchange correlation, equity volatility, equity correlation, equity-to-foreign exchange correlation and equity-to-interest rate correlation and (ii) discounted cash flows, which uses unobservable inputs related to credit correlation, credit spread, recovery rate, yield and loss severity.The principal considerations for our determination that performing procedures relating to the fair value of certain level 3 financial instruments is a critical audit matter are (i) the significant judgment by management when developing the fair value estimate of certain level effort in performing procedures and evaluating management's significant assumptions related to the U.S. unemployment and the U.S. real GDP growth rate; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge. Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the allowance for loan losses related to the portfolio-based component of the wholesale and credit card retained loan portfolios, including controls over the development of the forecasted macroeconomic variables. These procedures also included, among others, (i) testing management's process for developing the allowance for loan losses related to the portfolio-based component of the wholesale and credit card retained loan portfolios (ii) testing the completeness and accuracy of certain data used in developing the forecasted macroeconomic variables and (iii) the involvement of professionals with specialized skill and knowledge to assist in evaluating (a) the appropriateness of the methodology used by management in developing the forecasted macroeconomic variables and (b) the reasonableness of the U.S. unemployment and the U.S. real GDP growth rate assumptions. Fair Value of Certain Level 3 Financial Instruments As described in Note 2 to the consolidated financial statements, as of December 31, 2025, the Firm had certain financial instruments which included $2.4 billion of deposits, $5.6 billion of short-term borrowings and $46.7 billion of long-term debt, which are measured at fair value on a recurring basis and are classified as level 3. Financial instruments valued using internally developed valuation models and other valuation techniques that use significant unobservable inputs are classified within level 3 of the fair value hierarchy. The principal valuation techniques and unobservable inputs used by management to measure the fair value of certain level 3 financial instruments include the following internally developed valuation models: (i) option pricing, which uses unobservable inputs related to interest rate volatility, Bermudan switch value, interest rate correlation, interest rate-to-foreign exchange correlation, equity volatility, equity correlation, equity-to-foreign exchange correlation and equity-to-interest rate correlation and (ii) discounted cash flows, which uses unobservable inputs related to credit correlation, credit spread, recovery rate, yield and loss severity. The principal considerations for our determination that performing procedures relating to the fair value of certain level 3 financial instruments is a critical audit matter are (i) the significant judgment by management when developing the fair value estimate of certain level JPMorgan Chase & Co./2025 Form 10-K163 JPMorgan Chase & Co./2025 Form 10-K163 JPMorgan Chase & Co./2025 Form 10-K163 JPMorgan Chase & Co./2025 Form 10-K 163 --- ## Modified Risk: Total allowance for credit losses **Key changes:** - Updated: "Net charge-off/(recovery) rate(c) Allowance for loan losses to period-end loans retained Allowance for loan losses to nonaccrual loans retained(a) (a)Allowance for loan losses of $597 million, $435 million and $251 million were held against these nonaccrual loans at December 31, 2025, 2024 and 2023, respectively." - Updated: "At December 31, 2025, 2024 and 2023, mortgage loans 90 or more days past due and insured by U.S." - Updated: "72JPMorgan Chase & Co./2025 Form 10-K 72JPMorgan Chase & Co./2025 Form 10-K 72JPMorgan Chase & Co./2025 Form 10-K 72 JPMorgan Chase & Co./2025 Form 10-K Investment banking feesYear ended December 31,(in millions)202520242023Advisory$3,497 $3,290 $2,814 Equity underwriting1,732 1,692 1,151 Debt underwriting(a)4,506 4,134 2,666 Total investment banking fees$9,735 $9,116 $6,631 Investment banking feesYear ended December 31,(in millions)202520242023Advisory$3,497 $3,290 $2,814 Equity underwriting1,732 1,692 1,151 Debt underwriting(a)4,506 4,134 2,666 Total investment banking fees$9,735 $9,116 $6,631 Investment banking feesYear ended December 31,(in millions)202520242023Advisory$3,497 $3,290 $2,814 Equity underwriting1,732 1,692 1,151 Debt underwriting(a)4,506 4,134 2,666 Total investment banking fees$9,735 $9,116 $6,631 Year ended December 31, (in millions) Advisory Equity underwriting Debt underwriting(a)" **Prior (2025):** Net charge-off/(recovery) rate(c) Allowance for loan losses to period-end loans retained Allowance for loan losses to nonaccrual loans retained(a) (a)Allowance for loan losses of $435 million, $251 million and $257 million were held against these nonaccrual loans at December 31, 2024, 2023 and 2022, respectively. (b)Excludes mortgage loans past due and insured by U.S. government agencies, which are primarily 90 or more days past due. These loans have been excluded based upon the government guarantee. At December 31, 2024, 2023 and 2022, mortgage loans 90 or more days past due and insured by U.S. government agencies were $37 million, $59 million and $115 million, respectively. (c)Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate. (d)Includes $72 million related to a purchased credit deteriorated ("PCD") loan that was charged off in the fourth quarter of 2024. 80JPMorgan Chase & Co./2024 Form 10-K 80JPMorgan Chase & Co./2024 Form 10-K 80JPMorgan Chase & Co./2024 Form 10-K 80 JPMorgan Chase & Co./2024 Form 10-K Investment banking feesYear ended December 31,(in millions)202420232022Advisory$3,290 $2,814 $3,051 Equity underwriting1,692 1,151 1,034 Debt underwriting(a)4,134 2,666 2,892 Total investment banking fees$9,116 $6,631 $6,977 Investment banking feesYear ended December 31,(in millions)202420232022Advisory$3,290 $2,814 $3,051 Equity underwriting1,692 1,151 1,034 Debt underwriting(a)4,134 2,666 2,892 Total investment banking fees$9,116 $6,631 $6,977 Investment banking feesYear ended December 31,(in millions)202420232022Advisory$3,290 $2,814 $3,051 Equity underwriting1,692 1,151 1,034 Debt underwriting(a)4,134 2,666 2,892 Total investment banking fees$9,116 $6,631 $6,977 Year ended December 31, (in millions) Advisory Equity underwriting Debt underwriting(a) **Current (2026):** Net charge-off/(recovery) rate(c) Allowance for loan losses to period-end loans retained Allowance for loan losses to nonaccrual loans retained(a) (a)Allowance for loan losses of $597 million, $435 million and $251 million were held against these nonaccrual loans at December 31, 2025, 2024 and 2023, respectively. (b)Excludes mortgage loans past due and insured by U.S. government agencies, which are primarily 90 or more days past due. These loans have been excluded based upon the government guarantee. At December 31, 2025, 2024 and 2023, mortgage loans 90 or more days past due and insured by U.S. government agencies were $128 million, $37 million and $59 million, respectively. (c)Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate. (d)Includes $72 million related to a purchased credit deteriorated ("PCD") loan that was charged off in the fourth quarter of 2024. 72JPMorgan Chase & Co./2025 Form 10-K 72JPMorgan Chase & Co./2025 Form 10-K 72JPMorgan Chase & Co./2025 Form 10-K 72 JPMorgan Chase & Co./2025 Form 10-K Investment banking feesYear ended December 31,(in millions)202520242023Advisory$3,497 $3,290 $2,814 Equity underwriting1,732 1,692 1,151 Debt underwriting(a)4,506 4,134 2,666 Total investment banking fees$9,735 $9,116 $6,631 Investment banking feesYear ended December 31,(in millions)202520242023Advisory$3,497 $3,290 $2,814 Equity underwriting1,732 1,692 1,151 Debt underwriting(a)4,506 4,134 2,666 Total investment banking fees$9,735 $9,116 $6,631 Investment banking feesYear ended December 31,(in millions)202520242023Advisory$3,497 $3,290 $2,814 Equity underwriting1,732 1,692 1,151 Debt underwriting(a)4,506 4,134 2,666 Total investment banking fees$9,735 $9,116 $6,631 Year ended December 31, (in millions) Advisory Equity underwriting Debt underwriting(a) --- ## Modified Risk: Stock Plan Administration **Key changes:** - Updated: "(a)Consists of Global Private Bank in AWM and client investment assets in J.P." - Updated: "78JPMorgan Chase & Co./2025 Form 10-K 78JPMorgan Chase & Co./2025 Form 10-K 78JPMorgan Chase & Co./2025 Form 10-K 78 JPMorgan Chase & Co./2025 Form 10-K International metricsYear ended December 31,(in billions, except where otherwise noted)202520242023Total net revenue (in millions)(a)Europe/Middle East/Africa$4,049 $3,563 $3,377 Asia-Pacific2,432 2,023 1,876 Latin America/Caribbean1,228 1,065 985 Total international net revenue7,709 6,651 6,238 North America16,364 14,927 13,589 Total net revenue(a)$24,073 $21,578 $19,827 Assets under managementEurope/Middle East/Africa$709 $604 $539 Asia-Pacific374 302 263 Latin America/Caribbean126 106 86 Total international assets under management1,209 1,012 888 North America3,582 3,033 2,534 Total assets under management$4,791 $4,045 $3,422 Client assetsEurope/Middle East/Africa$1,035 $841 $740 Asia-Pacific620 482 406 Latin America/Caribbean310 254 232 Total international client assets1,965 1,577 1,378 North America5,153 4,355 3,634 Total client assets$7,118 $5,932 $5,012 (a)Regional revenue is based on the domicile of the client." **Prior (2025):** (a) Consists of Global Private Bank in AWM and client investment assets in J.P. Morgan Wealth Management in CCB. (b)Relates to an equity plan administration business which was acquired in 2022 with the Firm's purchase of Global Shares. The increase in 2024 includes the impact of onboarding participants in the Firm's employee stock plans during the fourth quarter of 2024. 86JPMorgan Chase & Co./2024 Form 10-K 86JPMorgan Chase & Co./2024 Form 10-K 86JPMorgan Chase & Co./2024 Form 10-K 86 JPMorgan Chase & Co./2024 Form 10-K International metricsYear ended December 31,(in billions, except where otherwise noted)202420232022Total net revenue (in millions)(a)Europe/Middle East/Africa$3,563 $3,377 $3,240 Asia-Pacific2,023 1,876 1,836 Latin America/Caribbean1,065 985 967 Total international net revenue6,651 6,238 6,043 North America14,927 13,589 11,705 Total net revenue$21,578 $19,827 $17,748 Assets under managementEurope/Middle East/Africa$604 $539 $487 Asia-Pacific302 263 218 Latin America/Caribbean106 86 69 Total international assets under management1,012 888 774 North America3,033 2,534 1,992 Total assets under management$4,045 $3,422 $2,766 Client assetsEurope/Middle East/Africa$841 $740 $610 Asia-Pacific482 406 331 Latin America/Caribbean254 232 189 Total international client assets1,577 1,378 1,130 North America4,355 3,634 2,918 Total client assets$5,932 $5,012 $4,048 (a)Regional revenue is based on the domicile of the client. International metricsYear ended December 31,(in billions, except where otherwise noted)202420232022Total net revenue (in millions)(a)Europe/Middle East/Africa$3,563 $3,377 $3,240 Asia-Pacific2,023 1,876 1,836 Latin America/Caribbean1,065 985 967 Total international net revenue6,651 6,238 6,043 North America14,927 13,589 11,705 Total net revenue$21,578 $19,827 $17,748 Assets under managementEurope/Middle East/Africa$604 $539 $487 Asia-Pacific302 263 218 Latin America/Caribbean106 86 69 Total international assets under management1,012 888 774 North America3,033 2,534 1,992 Total assets under management$4,045 $3,422 $2,766 Client assetsEurope/Middle East/Africa$841 $740 $610 Asia-Pacific482 406 331 Latin America/Caribbean254 232 189 Total international client assets1,577 1,378 1,130 North America4,355 3,634 2,918 Total client assets$5,932 $5,012 $4,048 (a)Regional revenue is based on the domicile of the client. International metricsYear ended December 31,(in billions, except where otherwise noted)202420232022Total net revenue (in millions)(a)Europe/Middle East/Africa$3,563 $3,377 $3,240 Asia-Pacific2,023 1,876 1,836 Latin America/Caribbean1,065 985 967 Total international net revenue6,651 6,238 6,043 North America14,927 13,589 11,705 Total net revenue$21,578 $19,827 $17,748 Assets under managementEurope/Middle East/Africa$604 $539 $487 Asia-Pacific302 263 218 Latin America/Caribbean106 86 69 Total international assets under management1,012 888 774 North America3,033 2,534 1,992 Total assets under management$4,045 $3,422 $2,766 Client assetsEurope/Middle East/Africa$841 $740 $610 Asia-Pacific482 406 331 Latin America/Caribbean254 232 189 Total international client assets1,577 1,378 1,130 North America4,355 3,634 2,918 Total client assets$5,932 $5,012 $4,048 **Current (2026):** (a)Consists of Global Private Bank in AWM and client investment assets in J.P. Morgan Wealth Management in CCB. 78JPMorgan Chase & Co./2025 Form 10-K 78JPMorgan Chase & Co./2025 Form 10-K 78JPMorgan Chase & Co./2025 Form 10-K 78 JPMorgan Chase & Co./2025 Form 10-K International metricsYear ended December 31,(in billions, except where otherwise noted)202520242023Total net revenue (in millions)(a)Europe/Middle East/Africa$4,049 $3,563 $3,377 Asia-Pacific2,432 2,023 1,876 Latin America/Caribbean1,228 1,065 985 Total international net revenue7,709 6,651 6,238 North America16,364 14,927 13,589 Total net revenue(a)$24,073 $21,578 $19,827 Assets under managementEurope/Middle East/Africa$709 $604 $539 Asia-Pacific374 302 263 Latin America/Caribbean126 106 86 Total international assets under management1,209 1,012 888 North America3,582 3,033 2,534 Total assets under management$4,791 $4,045 $3,422 Client assetsEurope/Middle East/Africa$1,035 $841 $740 Asia-Pacific620 482 406 Latin America/Caribbean310 254 232 Total international client assets1,965 1,577 1,378 North America5,153 4,355 3,634 Total client assets$7,118 $5,932 $5,012 (a)Regional revenue is based on the domicile of the client. International metricsYear ended December 31,(in billions, except where otherwise noted)202520242023Total net revenue (in millions)(a)Europe/Middle East/Africa$4,049 $3,563 $3,377 Asia-Pacific2,432 2,023 1,876 Latin America/Caribbean1,228 1,065 985 Total international net revenue7,709 6,651 6,238 North America16,364 14,927 13,589 Total net revenue(a)$24,073 $21,578 $19,827 Assets under managementEurope/Middle East/Africa$709 $604 $539 Asia-Pacific374 302 263 Latin America/Caribbean126 106 86 Total international assets under management1,209 1,012 888 North America3,582 3,033 2,534 Total assets under management$4,791 $4,045 $3,422 Client assetsEurope/Middle East/Africa$1,035 $841 $740 Asia-Pacific620 482 406 Latin America/Caribbean310 254 232 Total international client assets1,965 1,577 1,378 North America5,153 4,355 3,634 Total client assets$7,118 $5,932 $5,012 (a)Regional revenue is based on the domicile of the client. International metricsYear ended December 31,(in billions, except where otherwise noted)202520242023Total net revenue (in millions)(a)Europe/Middle East/Africa$4,049 $3,563 $3,377 Asia-Pacific2,432 2,023 1,876 Latin America/Caribbean1,228 1,065 985 Total international net revenue7,709 6,651 6,238 North America16,364 14,927 13,589 Total net revenue(a)$24,073 $21,578 $19,827 Assets under managementEurope/Middle East/Africa$709 $604 $539 Asia-Pacific374 302 263 Latin America/Caribbean126 106 86 Total international assets under management1,209 1,012 888 North America3,582 3,033 2,534 Total assets under management$4,791 $4,045 $3,422 Client assetsEurope/Middle East/Africa$1,035 $841 $740 Asia-Pacific620 482 406 Latin America/Caribbean310 254 232 Total international client assets1,965 1,577 1,378 North America5,153 4,355 3,634 Total client assets$7,118 $5,932 $5,012 --- ## Modified Risk: Management's discussion and analysis **Key changes:** - Updated: "Refer to Note 12 for a further discussion on loans, including information about delinquencies, loan modifications and other credit quality indicators.The following table presents the change in the nonaccrual loan portfolio for the years ended December 31, 2025 and 2024." - Updated: "The following table presents the change in the nonaccrual loan portfolio for the years ended December 31, 2025 and 2024." - Updated: "Wholesale net charge-offs increased for the year ended December 31, 2025 compared to the prior year, primarily due to increases in Commercial and industrial, including in Technology, Media & Telecommunications and Healthcare, as well as estimated losses related to borrower fraud in certain secured lending facilities." **Prior (2025):** LoansIn its wholesale businesses, the Firm provides loans to a variety of clients, ranging from large corporate and institutional clients to high-net-worth individuals. Refer to Note 12 for a further discussion on loans, including information about delinquencies, loan modifications and other credit quality indicators.The following table presents the change in the nonaccrual loan portfolio for the years ended December 31, 2024 and 2023. Since December 31, 2023, nonaccrual loan exposure increased by $2.2 billion, predominantly driven by Real Estate, concentrated in Office, Healthcare and Consumer & Retail, in each case resulting from downgrades.Wholesale nonaccrual loan activityYear ended December 31, (in millions)20242023Beginning balance$2,714 $2,395 Additions5,841 3,543 Reductions:Paydowns and other2,387 1,336 Gross charge-offs780 965 Returned to performing status392 616 Sales85 307 Total reductions3,644 3,224 Net changes2,197 319 Ending balance$4,911 $2,714 The following table presents net charge-offs/recoveries, which are defined as gross charge-offs less recoveries, for the years ended December 31, 2024 and 2023. The amounts in the table below do not include gains or losses from sales of nonaccrual loans recognized in noninterest revenue.Wholesale net charge-offs/(recoveries)Year ended December 31,(in millions, except ratios)20242023Loans Average loans retained$673,310 $646,875 Gross charge-offs1,022 1,011 Gross recoveries collected(200)(132)Net charge-offs/(recoveries)822 879 Net charge-off/(recovery) rate0.12 %0.14 % LoansIn its wholesale businesses, the Firm provides loans to a variety of clients, ranging from large corporate and institutional clients to high-net-worth individuals. Refer to Note 12 for a further discussion on loans, including information about delinquencies, loan modifications and other credit quality indicators.The following table presents the change in the nonaccrual loan portfolio for the years ended December 31, 2024 and 2023. Since December 31, 2023, nonaccrual loan exposure increased by $2.2 billion, predominantly driven by Real Estate, concentrated in Office, Healthcare and Consumer & Retail, in each case resulting from downgrades.Wholesale nonaccrual loan activityYear ended December 31, (in millions)20242023Beginning balance$2,714 $2,395 Additions5,841 3,543 Reductions:Paydowns and other2,387 1,336 Gross charge-offs780 965 Returned to performing status392 616 Sales85 307 Total reductions3,644 3,224 Net changes2,197 319 Ending balance$4,911 $2,714 Loans In its wholesale businesses, the Firm provides loans to a variety of clients, ranging from large corporate and institutional clients to high-net-worth individuals. Refer to Note 12 for a further discussion on loans, including information about delinquencies, loan modifications and other credit quality indicators. The following table presents the change in the nonaccrual loan portfolio for the years ended December 31, 2024 and 2023. Since December 31, 2023, nonaccrual loan exposure increased by $2.2 billion, predominantly driven by Real Estate, concentrated in Office, Healthcare and Consumer & Retail, in each case resulting from downgrades. Wholesale nonaccrual loan activityYear ended December 31, (in millions)20242023Beginning balance$2,714 $2,395 Additions5,841 3,543 Reductions:Paydowns and other2,387 1,336 Gross charge-offs780 965 Returned to performing status392 616 Sales85 307 Total reductions3,644 3,224 Net changes2,197 319 Ending balance$4,911 $2,714 The following table presents net charge-offs/recoveries, which are defined as gross charge-offs less recoveries, for the years ended December 31, 2024 and 2023. The amounts in the table below do not include gains or losses from sales of nonaccrual loans recognized in noninterest revenue.Wholesale net charge-offs/(recoveries)Year ended December 31,(in millions, except ratios)20242023Loans Average loans retained$673,310 $646,875 Gross charge-offs1,022 1,011 Gross recoveries collected(200)(132)Net charge-offs/(recoveries)822 879 Net charge-off/(recovery) rate0.12 %0.14 % The following table presents net charge-offs/recoveries, which are defined as gross charge-offs less recoveries, for the years ended December 31, 2024 and 2023. The amounts in the table below do not include gains or losses from sales of nonaccrual loans recognized in noninterest revenue. Wholesale net charge-offs/(recoveries)Year ended December 31,(in millions, except ratios)20242023Loans Average loans retained$673,310 $646,875 Gross charge-offs1,022 1,011 Gross recoveries collected(200)(132)Net charge-offs/(recoveries)822 879 Net charge-off/(recovery) rate0.12 %0.14 % 132JPMorgan Chase & Co./2024 Form 10-K 132JPMorgan Chase & Co./2024 Form 10-K 132JPMorgan Chase & Co./2024 Form 10-K 132 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** LoansIn its wholesale businesses, the Firm provides loans to a variety of clients, ranging from large corporate and institutional clients to high-net-worth individuals. Refer to Note 12 for a further discussion on loans, including information about delinquencies, loan modifications and other credit quality indicators.The following table presents the change in the nonaccrual loan portfolio for the years ended December 31, 2025 and 2024. Since December 31, 2024, nonaccrual loan exposure increased by $273 million, driven by certain exposures in Technology, Media & Telecommunications, Utilities, Central Government, and Oil & Gas, in each case primarily resulting from downgrades, largely offset by certain exposures in Healthcare and Consumer & Retail, in each case primarily resulting from charge-off activity, upgrades, and loan sales.Wholesale nonaccrual loan activityYear ended December 31, (in millions)20252024Beginning balance$4,911 $2,714 Additions5,343 5,841 Reductions:Paydowns and other1,890 2,387 Gross charge-offs1,481 780 Returned to performing status1,538 392 Sales161 85 Total reductions5,070 3,644 Net changes273 2,197 Ending balance$5,184 $4,911 The following table presents net charge-offs/recoveries, which are defined as gross charge-offs less recoveries, for the years ended December 31, 2025 and 2024. The amounts in the table below do not include gains or losses from sales of nonaccrual loans recognized in noninterest revenue.Wholesale net charge-offs increased for the year ended December 31, 2025 compared to the prior year, primarily due to increases in Commercial and industrial, including in Technology, Media & Telecommunications and Healthcare, as well as estimated losses related to borrower fraud in certain secured lending facilities.Wholesale net charge-offs/(recoveries)Year ended December 31,(in millions, except ratios)20252024Loans Average loans retained$732,793 $673,310 Gross charge-offs1,787 1,022 Gross recoveries collected(189)(200)Net charge-offs/(recoveries)1,598 822 Net charge-off/(recovery) rate0.22 %0.12 % LoansIn its wholesale businesses, the Firm provides loans to a variety of clients, ranging from large corporate and institutional clients to high-net-worth individuals. Refer to Note 12 for a further discussion on loans, including information about delinquencies, loan modifications and other credit quality indicators.The following table presents the change in the nonaccrual loan portfolio for the years ended December 31, 2025 and 2024. Since December 31, 2024, nonaccrual loan exposure increased by $273 million, driven by certain exposures in Technology, Media & Telecommunications, Utilities, Central Government, and Oil & Gas, in each case primarily resulting from downgrades, largely offset by certain exposures in Healthcare and Consumer & Retail, in each case primarily resulting from charge-off activity, upgrades, and loan sales.Wholesale nonaccrual loan activityYear ended December 31, (in millions)20252024Beginning balance$4,911 $2,714 Additions5,343 5,841 Reductions:Paydowns and other1,890 2,387 Gross charge-offs1,481 780 Returned to performing status1,538 392 Sales161 85 Total reductions5,070 3,644 Net changes273 2,197 Ending balance$5,184 $4,911 Loans In its wholesale businesses, the Firm provides loans to a variety of clients, ranging from large corporate and institutional clients to high-net-worth individuals. Refer to Note 12 for a further discussion on loans, including information about delinquencies, loan modifications and other credit quality indicators. The following table presents the change in the nonaccrual loan portfolio for the years ended December 31, 2025 and 2024. Since December 31, 2024, nonaccrual loan exposure increased by $273 million, driven by certain exposures in Technology, Media & Telecommunications, Utilities, Central Government, and Oil & Gas, in each case primarily resulting from downgrades, largely offset by certain exposures in Healthcare and Consumer & Retail, in each case primarily resulting from charge-off activity, upgrades, and loan sales. Wholesale nonaccrual loan activityYear ended December 31, (in millions)20252024Beginning balance$4,911 $2,714 Additions5,343 5,841 Reductions:Paydowns and other1,890 2,387 Gross charge-offs1,481 780 Returned to performing status1,538 392 Sales161 85 Total reductions5,070 3,644 Net changes273 2,197 Ending balance$5,184 $4,911 The following table presents net charge-offs/recoveries, which are defined as gross charge-offs less recoveries, for the years ended December 31, 2025 and 2024. The amounts in the table below do not include gains or losses from sales of nonaccrual loans recognized in noninterest revenue.Wholesale net charge-offs increased for the year ended December 31, 2025 compared to the prior year, primarily due to increases in Commercial and industrial, including in Technology, Media & Telecommunications and Healthcare, as well as estimated losses related to borrower fraud in certain secured lending facilities.Wholesale net charge-offs/(recoveries)Year ended December 31,(in millions, except ratios)20252024Loans Average loans retained$732,793 $673,310 Gross charge-offs1,787 1,022 Gross recoveries collected(189)(200)Net charge-offs/(recoveries)1,598 822 Net charge-off/(recovery) rate0.22 %0.12 % The following table presents net charge-offs/recoveries, which are defined as gross charge-offs less recoveries, for the years ended December 31, 2025 and 2024. The amounts in the table below do not include gains or losses from sales of nonaccrual loans recognized in noninterest revenue. Wholesale net charge-offs increased for the year ended December 31, 2025 compared to the prior year, primarily due to increases in Commercial and industrial, including in Technology, Media & Telecommunications and Healthcare, as well as estimated losses related to borrower fraud in certain secured lending facilities. Wholesale net charge-offs/(recoveries)Year ended December 31,(in millions, except ratios)20252024Loans Average loans retained$732,793 $673,310 Gross charge-offs1,787 1,022 Gross recoveries collected(189)(200)Net charge-offs/(recoveries)1,598 822 Net charge-off/(recovery) rate0.22 %0.12 % 124JPMorgan Chase & Co./2025 Form 10-K 124JPMorgan Chase & Co./2025 Form 10-K 124JPMorgan Chase & Co./2025 Form 10-K 124 JPMorgan Chase & Co./2025 Form 10-K --- ## Modified Risk: Credit provided and capital raised **Key changes:** - Updated: "The Firm provided new and renewed credit and raised capital for wholesale and consumer clients during 2025, consisting of approximately: $3.3 trillionTotal credit provided and capital raised (including loans and commitments)$280billionCredit for consumers$33billionCredit for U.S." - Updated: "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.The Firm provided the following outlook information on January 13, 2026 in connection with announcing its results for the year and quarter ended December 31, 2025:Full-year 2026•Management expects net interest income to be approximately $103 billion and net interest income excluding Markets to be approximately $95 billion, market dependent." **Prior (2025):** JPMorganChase continues to support consumers, businesses and communities around the globe. The Firm provided new and renewed credit and raised capital for wholesale and consumer clients during 2024, consisting of approximately: $2.8 trillionTotal credit provided and capital raised (including loans and commitments)$250billionCredit for consumers$40billionCredit for U.S. small businesses$2.4 trillionCredit and capital for corporations and non-U.S. government entities(a)$65 billionCredit and capital for nonprofit and U.S. government entities(b) $2.8 trillion Total credit provided and capital raised (including loans and commitments) $250 billion Credit for consumers $40 billion Credit for U.S. small businesses $2.4 trillion Credit and capital for corporations and non-U.S. government entities(a) $65 billion Credit and capital for nonprofit and U.S. government entities(b) (a) Includes Individuals and Individual Entities primarily consisting of Global Private Bank clients within AWM. (b) Includes states, municipalities, hospitals and universities. 56JPMorgan Chase & Co./2024 Form 10-K 56JPMorgan Chase & Co./2024 Form 10-K 56JPMorgan Chase & Co./2024 Form 10-K 56 JPMorgan Chase & Co./2024 Form 10-K Recent events•On January 14, 2025, JPMorganChase announced new responsibilities for several of its senior executives:-Daniel Pinto, President and Chief Operating Officer ("COO"), will retire at the end of 2026. Mr. Pinto will relinquish his responsibilities as President and COO as of June 30, 2025. He will continue to serve the Firm as Vice Chairman through the end of 2026.-Jennifer Piepszak, Co-Chief Executive Officer of the Commercial & Investment Bank ("CIB"), was named a COO of the Firm, effective January 14, 2025.-Doug Petno, Co-head of Global Banking, succeeded Ms. Piepszak as Co-Chief Executive Officer of CIB.•On December 12, 2024, the Firm announced that Michele G. Buck, 63, had been elected as a director of the Firm, effective March 17, 2025. Ms. Buck is Chairman of the Board, President and CEO of The Hershey Company.OutlookThese current expectations are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the current beliefs and expectations of JPMorganChase's management, speak only as of the date of this Form 10-K, and are subject to significant risks and uncertainties. Refer to Forward-Looking Statements on page 167 and Part I, Item 1A: Risk Factors on pages 10-37 of this Form 10-K for a further discussion of certain of those risks and uncertainties and the other factors that could cause JPMorganChase's actual results to differ materially because of those risks and uncertainties. There is no assurance that actual results in 2025 will be in line with the outlook information set forth below, and the Firm does not undertake to update any forward-looking statements.JPMorganChase's current outlook for full-year 2025 should be viewed against the backdrop of the global and U.S. economies, financial markets activity, the geopolitical environment, the competitive environment, client and customer activity levels, and regulatory and legislative developments in the U.S. and other countries where the Firm does business. Each of these factors will affect the performance of the Firm. The Firm will continue to make appropriate adjustments to its businesses and operations in response to ongoing developments in the business, economic, regulatory and legal environments in which it operates.Full-year 2025•Management expects net interest income to be approximately $94.0 billion and net interest income excluding Markets to be approximately $90.0 billion, market dependent. •Management expects adjusted expense to be approximately $95.0 billion, market dependent.•Management expects the net charge-off rate in Card Services to be approximately 3.60%.Net interest income excluding Markets and adjusted expense are non-GAAP financial measures. Refer to Explanation and Reconciliation of the Firm's Use of Non-GAAP Financial Measures on pages 67-69. Recent events•On January 14, 2025, JPMorganChase announced new responsibilities for several of its senior executives:-Daniel Pinto, President and Chief Operating Officer ("COO"), will retire at the end of 2026. Mr. Pinto will relinquish his responsibilities as President and COO as of June 30, 2025. He will continue to serve the Firm as Vice Chairman through the end of 2026.-Jennifer Piepszak, Co-Chief Executive Officer of the Commercial & Investment Bank ("CIB"), was named a COO of the Firm, effective January 14, 2025.-Doug Petno, Co-head of Global Banking, succeeded Ms. Piepszak as Co-Chief Executive Officer of CIB.•On December 12, 2024, the Firm announced that Michele G. Buck, 63, had been elected as a director of the Firm, effective March 17, 2025. Ms. Buck is Chairman of the Board, President and CEO of The Hershey Company. **Current (2026):** 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 2025, consisting of approximately: $3.3 trillionTotal credit provided and capital raised (including loans and commitments)$280billionCredit for consumers$33billionCredit for U.S. small businesses$2.9 trillionCredit and capital for corporations and non-U.S. government entities(a)$76 billionCredit and capital for nonprofit and U.S. government entities(b) $3.3 trillion Total credit provided and capital raised (including loans and commitments) $280 billion Credit for consumers $33 billion Credit for U.S. small businesses $2.9 trillion Credit and capital for corporations and non-U.S. government entities(a) $76 billion Credit and capital for nonprofit and U.S. government entities(b) (a)Includes Individuals and Individual Entities primarily consisting of Global Private Bank clients within AWM. (b)Includes states, municipalities, hospitals and universities. JPMorgan Chase & Co./2025 Form 10-K49 JPMorgan Chase & Co./2025 Form 10-K49 JPMorgan Chase & Co./2025 Form 10-K49 JPMorgan Chase & Co./2025 Form 10-K 49 Recent events•On December 8, 2025, JPMorganChase announced that Todd A. Combs had resigned from the Firm's Board of Directors and would join the Firm as the head of the Strategic Investment Group within the Firm's Security and Resiliency Initiative.OutlookThe statements set forth below are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the beliefs and expectations of JPMorganChase's management, speak only as of the date on which they were made, and are subject to significant risks and uncertainties. Refer to Forward-Looking Statements on page 160 and Part I, Item 1A: Risk Factors on pages 9-31 of this Form 10-K for a further discussion of certain of those risks and uncertainties and the other factors that could cause JPMorganChase's actual results to differ materially because of those risks and uncertainties. There is no assurance that actual results in 2026 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 outlook for full-year 2026 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.The Firm provided the following outlook information on January 13, 2026 in connection with announcing its results for the year and quarter ended December 31, 2025:Full-year 2026•Management expects net interest income to be approximately $103 billion and net interest income excluding Markets to be approximately $95 billion, market dependent. •Management expects adjusted expense to be approximately $105 billion, market dependent.•Management expects the net charge-off rate in Card Services to be approximately 3.4%.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 59-61. Recent events•On December 8, 2025, JPMorganChase announced that Todd A. Combs had resigned from the Firm's Board of Directors and would join the Firm as the head of the Strategic Investment Group within the Firm's Security and Resiliency Initiative. --- ## Modified Risk: Management's discussion and analysis **Key changes:** - Removed: "on pages 54-58 and Note 34 for additional information on the First Republic acquisition." - Removed: "Refer to Note 3 for further information on structured notes." - Removed: "Certain deposits are covered by insurance protection that provides additional funding stability and results in a benefit to the LCR." - Removed: "Deposit insurance protection may be available to depositors in the countries in which the deposits are placed." - Removed: "For example, the FDIC provides deposit insurance protection for deposits placed in a U.S." **Prior (2025):** on pages 54-58 and Note 34 for additional information on the First Republic acquisition. Refer to Note 3 for further information on structured notes. Certain deposits are covered by insurance protection that provides additional funding stability and results in a benefit to the LCR. Deposit insurance protection may be available to depositors in the countries in which the deposits are placed. For example, the FDIC provides deposit insurance protection for deposits placed in a U.S. depository institution. At December 31, 2024 and 2023(a), the Firmwide estimated uninsured deposits were $1,414.0 billion and $1,347.8 billion, respectively, primarily reflecting wholesale operating deposits.Total uninsured deposits include time deposits. The table below presents an estimate of uninsured U.S. and non-U.S. time deposits, and their remaining maturities. The Firm's estimates of its uninsured U.S. time deposits are based on data that the Firm calculates periodically under applicable FDIC regulations. For purposes of this presentation, all non-U.S. time deposits are deemed to be uninsured. (in millions)December 31,2024December 31,2023U.S.Non-U.S.U.S.Non-U.S.Three months or less$119,333 $77,253 $98,606 (a)$77,466 Over three months but within 6 months11,040 12,229 17,736 5,358 Over six months but within 12 months7,056 1,542 10,294 4,820 Over 12 months823 1,924 710 2,543 Total$138,252 $92,948 $127,346 (a)$90,187 (a)Prior-period amounts have been revised to include cash collateral for certain derivatives to align with a change in the methodology for calculating uninsured U.S. time deposits.The table below shows the loan and deposit balances, the loans-to-deposits ratios, and deposits as a percentage of total liabilities, as of December 31, 2024 and 2023.As of December 31, (in billions except ratios)20242023Deposits$2,406.0 $2,400.7 Deposits as a % of total liabilities66 %68 %Loans$1,348.0 $1,323.7 Loans-to-deposits ratio56 %55 % on pages 54-58 and Note 34 for additional information on the First Republic acquisition. Refer to Note 3 for further information on structured notes. Certain deposits are covered by insurance protection that provides additional funding stability and results in a benefit to the LCR. Deposit insurance protection may be available to depositors in the countries in which the deposits are placed. For example, the FDIC provides deposit insurance protection for deposits placed in a U.S. depository institution. At December 31, 2024 and 2023(a), the Firmwide estimated uninsured deposits were $1,414.0 billion and $1,347.8 billion, respectively, primarily reflecting wholesale operating deposits. on pages 54-58 and Note 34 for additional information on the First Republic acquisition. Refer to Note 3 for further information on structured notes. Certain deposits are covered by insurance protection that provides additional funding stability and results in a benefit to the LCR. Deposit insurance protection may be available to depositors in the countries in which the deposits are placed. For example, the FDIC provides deposit insurance protection for deposits placed in a U.S. depository institution. At December 31, 2024 and 2023(a), the Firmwide estimated uninsured deposits were $1,414.0 billion and $1,347.8 billion, respectively, primarily reflecting wholesale operating deposits. Total uninsured deposits include time deposits. The table below presents an estimate of uninsured U.S. and non-U.S. time deposits, and their remaining maturities. The Firm's estimates of its uninsured U.S. time deposits are based on data that the Firm calculates periodically under applicable FDIC regulations. For purposes of this presentation, all non-U.S. time deposits are deemed to be uninsured. (in millions)December 31,2024December 31,2023U.S.Non-U.S.U.S.Non-U.S.Three months or less$119,333 $77,253 $98,606 (a)$77,466 Over three months but within 6 months11,040 12,229 17,736 5,358 Over six months but within 12 months7,056 1,542 10,294 4,820 Over 12 months823 1,924 710 2,543 Total$138,252 $92,948 $127,346 (a)$90,187 (a)Prior-period amounts have been revised to include cash collateral for certain derivatives to align with a change in the methodology for calculating uninsured U.S. time deposits.The table below shows the loan and deposit balances, the loans-to-deposits ratios, and deposits as a percentage of total liabilities, as of December 31, 2024 and 2023.As of December 31, (in billions except ratios)20242023Deposits$2,406.0 $2,400.7 Deposits as a % of total liabilities66 %68 %Loans$1,348.0 $1,323.7 Loans-to-deposits ratio56 %55 % Total uninsured deposits include time deposits. The table below presents an estimate of uninsured U.S. and non-U.S. time deposits, and their remaining maturities. The Firm's estimates of its uninsured U.S. time deposits are based on data that the Firm calculates periodically under applicable FDIC regulations. For purposes of this presentation, all non-U.S. time deposits are deemed to be uninsured. (in millions)December 31,2024December 31,2023U.S.Non-U.S.U.S.Non-U.S.Three months or less$119,333 $77,253 $98,606 (a)$77,466 Over three months but within 6 months11,040 12,229 17,736 5,358 Over six months but within 12 months7,056 1,542 10,294 4,820 Over 12 months823 1,924 710 2,543 Total$138,252 $92,948 $127,346 (a)$90,187 (a) (a) (a)Prior-period amounts have been revised to include cash collateral for certain derivatives to align with a change in the methodology for calculating uninsured U.S. time deposits. The table below shows the loan and deposit balances, the loans-to-deposits ratios, and deposits as a percentage of total liabilities, as of December 31, 2024 and 2023. As of December 31, (in billions except ratios)20242023Deposits$2,406.0 $2,400.7 Deposits as a % of total liabilities66 %68 %Loans$1,348.0 $1,323.7 Loans-to-deposits ratio56 %55 % The following table provides a summary of the average balances and average interest rates of JPMorganChase's deposits for the years ended December 31, 2024, 2023, and 2022. Year ended December 31,Average balancesAverage interest rates(in millions, except interest rates)202420232022202420232022U.S. officesNoninterest-bearing$611,734 $635,791 $691,206 NANANAInterest-bearingDemand(a)282,533 279,725 324,512 3.90 %3.50 %0.92 %Savings(b)800,964 864,558 971,788 1.39 1.10 0.28 Time223,503 145,827 62,022 4.93 4.74 2.07 Total interest-bearing deposits1,307,000 1,290,110 1,358,322 2.54 2.03 0.52 Total deposits in U.S. offices1,918,734 1,925,901 2,049,528 1.73 1.36 0.34 Non-U.S. officesNoninterest-bearing26,858 24,747 28,043 NANANAInterest-bearingDemand346,179 321,976 324,740 3.13 2.71 0.57 Time94,871 86,443 65,604 5.86 5.82 1.85 Total interest-bearing deposits441,050 408,419 390,344 3.72 3.37 0.78 Total deposits in non-U.S. offices467,908 433,166 418,387 3.50 3.18 0.73 Total deposits$2,386,642 $2,359,067 $2,467,915 2.08 %1.70 %0.41 % Year ended December 31, Demand(a) Savings(b) (a)Includes Negotiable Order of Withdrawal accounts, and certain trust accounts. (b)Includes Money Market Deposit Accounts. Refer to Note 17 for additional information on deposits. 112JPMorgan Chase & Co./2024 Form 10-K 112JPMorgan Chase & Co./2024 Form 10-K 112JPMorgan Chase & Co./2024 Form 10-K 112 JPMorgan Chase & Co./2024 Form 10-K The following table summarizes short-term and long-term funding, excluding deposits, as of December 31, 2024 and 2023, and average balances for the years ended December 31, 2024 and 2023. Refer to the Consolidated Balance Sheets Analysis on pages 63-65 and Note 11 for additional information. Sources of funds (excluding deposits)As of or for the year ended December 31, Average(in millions)2024202320242023Commercial paper$14,932 $14,737 $11,398 $12,675 Other borrowed funds13,018 8,200 12,040 9,712 Federal funds purchased567 787 1,547 1,754 Total short-term unsecured funding$28,517 $23,724 $24,985 $24,141 Securities sold under agreements to repurchase(a)$291,500 $212,804 $357,144 $249,661 Securities loaned(a)4,768 2,944 5,129 4,671 Other borrowed funds24,943 21,775 25,504 22,010 Obligations of Firm-administered multi-seller conduits(b)18,228 17,781 18,620 14,918 Total short-term secured funding$339,439 $255,304 $406,397 $291,260 Senior notes$203,639 $191,202 $199,908 $181,803 Subordinated debt16,060 19,708 18,614 20,374 Structured notes(c)98,792 86,056 93,483 76,574 Total long-term unsecured funding$318,491 $296,966 $312,005 $278,751 Credit card securitization(b)$5,312 $2,998 $5,138 $1,634 FHLB advances29,257 41,246 35,040 (g)28,865 Purchase Money Note(d)49,207 $48,989$49,090 $32,829Other long-term secured funding(e)4,463 4,624 4,676 4,513 Total long-term secured funding$88,239 $97,857 $93,944 $67,841 Preferred stock(f)$20,050 $27,404 $24,054 $27,404 Common stockholders' equity(f)$324,708 $300,474 $312,370 $282,056 Commercial paper Other borrowed funds Securities sold under agreements to repurchase(a) Securities loaned(a) Obligations of Firm-administered multi-seller conduits(b) **Current (2026):** Total uninsured deposits include time deposits. The table below presents an estimate of uninsured U.S. and non-U.S. time deposits, and their remaining maturities. The Firm's estimates of its uninsured U.S. time deposits are based on data that the Firm calculates periodically under applicable FDIC regulations. For purposes of this presentation, all non-U.S. time deposits are deemed to be uninsured. (in millions)December 31,2025December 31,2024U.S.Non-U.S.U.S.Non-U.S.Three months or less$123,236 $71,477 $119,333 $77,253 Over three months but within 6 months14,381 14,184 11,040 12,229 Over six months but within 12 months4,004 1,256 7,056 1,542 Over 12 months664 2,382 823 1,924 Total$142,285 $89,299 $138,252 $92,948 The table below shows the deposit and loan balances, deposits as a percentage of total liabilities, and the loans-to-deposits ratios, as of December 31, 2025 and 2024.As of December 31, (in billions except ratios)20252024Deposits$2,559.3 $2,406.0 Deposits as a % of total liabilities63 %66 %Loans$1,493.4 $1,348.0 Loans-to-deposits ratio58 %56 % Total uninsured deposits include time deposits. The table below presents an estimate of uninsured U.S. and non-U.S. time deposits, and their remaining maturities. The Firm's estimates of its uninsured U.S. time deposits are based on data that the Firm calculates periodically under applicable FDIC regulations. For purposes of this presentation, all non-U.S. time deposits are deemed to be uninsured. (in millions)December 31,2025December 31,2024U.S.Non-U.S.U.S.Non-U.S.Three months or less$123,236 $71,477 $119,333 $77,253 Over three months but within 6 months14,381 14,184 11,040 12,229 Over six months but within 12 months4,004 1,256 7,056 1,542 Over 12 months664 2,382 823 1,924 Total$142,285 $89,299 $138,252 $92,948 Total uninsured deposits include time deposits. The table below presents an estimate of uninsured U.S. and non-U.S. time deposits, and their remaining maturities. The Firm's estimates of its uninsured U.S. time deposits are based on data that the Firm calculates periodically under applicable FDIC regulations. For purposes of this presentation, all non-U.S. time deposits are deemed to be uninsured. (in millions)December 31,2025December 31,2024U.S.Non-U.S.U.S.Non-U.S.Three months or less$123,236 $71,477 $119,333 $77,253 Over three months but within 6 months14,381 14,184 11,040 12,229 Over six months but within 12 months4,004 1,256 7,056 1,542 Over 12 months664 2,382 823 1,924 Total$142,285 $89,299 $138,252 $92,948 The table below shows the deposit and loan balances, deposits as a percentage of total liabilities, and the loans-to-deposits ratios, as of December 31, 2025 and 2024.As of December 31, (in billions except ratios)20252024Deposits$2,559.3 $2,406.0 Deposits as a % of total liabilities63 %66 %Loans$1,493.4 $1,348.0 Loans-to-deposits ratio58 %56 % The table below shows the deposit and loan balances, deposits as a percentage of total liabilities, and the loans-to-deposits ratios, as of December 31, 2025 and 2024. As of December 31, (in billions except ratios)20252024Deposits$2,559.3 $2,406.0 Deposits as a % of total liabilities63 %66 %Loans$1,493.4 $1,348.0 Loans-to-deposits ratio58 %56 % The following table provides a summary of the average balances and average interest rates of JPMorganChase's deposits for the years ended December 31, 2025, 2024, and 2023. Year ended December 31,Average balancesAverage interest rates(in millions, except interest rates)202520242023202520242023U.S. officesNoninterest-bearing$572,014 $611,734 $635,791 NANANAInterest-bearingDemand(a)321,145 282,533 279,725 3.26 %3.90 %3.50 %Savings(b)875,519 800,964 864,558 1.41 1.39 1.10 Time222,983 223,503 145,827 3.96 4.93 4.74 Total interest-bearing deposits1,419,647 1,307,000 1,290,110 2.23 2.54 2.03 Total deposits in U.S. offices1,991,661 1,918,734 1,925,901 1.59 1.73 1.36 Non-U.S. officesNoninterest-bearing32,169 26,858 24,747 NANANAInterest-bearingDemand391,123 346,179 321,976 2.34 3.13 2.71 Time91,612 94,871 86,443 4.73 5.86 5.82 Total interest-bearing deposits482,735 441,050 408,419 2.79 3.72 3.37 Total deposits in non-U.S. offices514,904 467,908 433,166 2.62 3.50 3.18 Total deposits$2,506,565 $2,386,642 $2,359,067 1.80 %2.08 %1.70 % Year ended December 31, Demand(a) Savings(b) (a)Includes Negotiable Order of Withdrawal accounts, and certain trust accounts. (b)Includes Money Market Deposit Accounts. Refer to Note 17 for additional information on deposits. 104JPMorgan Chase & Co./2025 Form 10-K 104JPMorgan Chase & Co./2025 Form 10-K 104JPMorgan Chase & Co./2025 Form 10-K 104 JPMorgan Chase & Co./2025 Form 10-K The following table summarizes short-term and long-term funding, excluding deposits, as of December 31, 2025 and 2024, and average balances for the years ended December 31, 2025 and 2024. Refer to the Consolidated Balance Sheets Analysis on pages 55-57 and Note 11 for additional information. Sources of funds (excluding deposits)As of or for the year ended December 31, Average(in millions)2025202420252024Commercial paper$12,111 $14,932 $12,274 $11,398 Other borrowed funds15,031 13,018 14,981 12,040 Federal funds purchased199 567 1,413 1,547 Total short-term unsecured funding$27,341 $28,517 $28,668 $24,985 Securities sold under agreements to repurchase(a)$433,161 $291,500 $516,262 $357,144 Securities loaned(a)9,036 4,768 9,834 5,129 Other borrowed funds37,634 24,943 38,638 25,504 Obligations of Firm-administered multi-seller conduits(b)18,174 18,228 17,764 18,620 Total short-term secured funding$498,005 $339,439 $582,498 $406,397 Senior notes$210,571 $203,639 $209,346 $199,908 Subordinated debt20,101 16,060 17,943 18,614 Structured notes(c)130,621 98,792 113,362 93,483 Total long-term unsecured funding$361,293 $318,491 $340,651 $312,005 Credit card securitization(b)$5,884 $5,312 $5,723 $5,138 FHLB advances18,159 29,257 22,929 35,040 Purchase Money Note(d)49,435 49,207 49,312 49,090 Other long-term secured funding(e)6,319 4,463 5,756 4,676 Total long-term secured funding$79,797 $88,239 $83,720 $93,944 Preferred stock(f)$20,045 $20,050 $20,037 $24,054 Common stockholders' equity(f)$342,393 $324,708 $332,754 $312,370 Commercial paper Other borrowed funds Securities sold under agreements to repurchase(a) Securities loaned(a) Obligations of Firm-administered multi-seller conduits(b) --- ## Modified Risk: Mortgage origination channels: **Key changes:** - Removed: "Borrowers are frequently referred to a mortgage banker by a banker in a Chase branch, real estate brokers, home builders or other third parties.Correspondent - Banks, thrifts, other mortgage banks and other financial institutions that sell closed loans to the Firm.Mortgage product types: Alt-A Alt-A loans are generally higher in credit quality than subprime loans but have characteristics that would disqualify the borrower from a traditional prime loan." - Removed: "Alt-A lending characteristics may include one or more of the following: (i) limited documentation; (ii) a high CLTV ratio; (iii) loans secured by non-owner occupied properties; or (iv) a debt-to-income ratio above normal limits." - Removed: "A substantial proportion of the Firm's Alt-A loans are those where a borrower does not provide complete documentation of his or her assets or the amount or source of his or her income." - Removed: "Option ARMs The option ARM real estate loan product is an adjustable-rate mortgage loan that provides the borrower with the option each month to make a fully amortizing, interest-only or minimum payment." - Removed: "The minimum payment on an option ARM loan is based on the interest rate charged during the introductory period." **Prior (2025):** Retail - Borrowers who buy or refinance a home through direct contact with a mortgage banker employed by the Firm using a branch office, the Internet or by phone. Borrowers are frequently referred to a mortgage banker by a banker in a Chase branch, real estate brokers, home builders or other third parties.Correspondent - Banks, thrifts, other mortgage banks and other financial institutions that sell closed loans to the Firm.Mortgage product types: Alt-A Alt-A loans are generally higher in credit quality than subprime loans but have characteristics that would disqualify the borrower from a traditional prime loan. Alt-A lending characteristics may include one or more of the following: (i) limited documentation; (ii) a high CLTV ratio; (iii) loans secured by non-owner occupied properties; or (iv) a debt-to-income ratio above normal limits. A substantial proportion of the Firm's Alt-A loans are those where a borrower does not provide complete documentation of his or her assets or the amount or source of his or her income. Option ARMs The option ARM real estate loan product is an adjustable-rate mortgage loan that provides the borrower with the option each month to make a fully amortizing, interest-only or minimum payment. The minimum payment on an option ARM loan is based on the interest rate charged during the introductory period. This introductory rate is usually significantly below the fully indexed rate. The fully indexed rate is calculated using an index rate plus a margin. Once the introductory period ends, the contractual interest rate charged on the loan increases to the fully indexed rate and adjusts monthly to reflect movements in the index. The minimum payment is typically insufficient to cover interest accrued in the prior month, and any unpaid interest is deferred and added to the principal balance of the loan. Option ARM loans are subject to payment recast, which converts the loan to a variable-rate fully amortizing loan upon meeting specified loan balance and anniversary date triggers. Prime Prime mortgage loans are made to borrowers with good credit records who meet specific underwriting requirements, including prescriptive requirements related to income and overall debt levels. New prime mortgage borrowers provide full documentation and generally have reliable payment histories. Subprime Subprime loans are loans that, prior to mid-2008, were offered to certain customers with one or more high risk characteristics, including but not limited to: (i) unreliable or poor payment histories; (ii) a high LTV ratio of greater than 80% (without borrower-paid mortgage insurance); (iii) a high debt-to-income ratio; (iv) an occupancy type for the loan is other than the borrower's Retail - Borrowers who buy or refinance a home through direct contact with a mortgage banker employed by the Firm using a branch office, the Internet or by phone. Borrowers are frequently referred to a mortgage banker by a banker in a Chase branch, real estate brokers, home builders or other third parties. Correspondent - Banks, thrifts, other mortgage banks and other financial institutions that sell closed loans to the Firm. **Current (2026):** Retail - Borrowers who buy or refinance a home through direct contact with a mortgage banker employed by the Firm using a branch office, the Internet or by phone. Borrowers are frequently referred to a mortgage banker by a banker in a Chase branch, real estate brokers, home builders or other third parties. Correspondent - Banks, thrifts, other mortgage banks and other financial institutions that sell closed loans to the Firm. --- ## Modified Risk: Consolidated balance sheets **Key changes:** - Updated: "December 31, (in millions, except share data)20252024AssetsCash and due from banks$21,742 $23,372 Deposits with banks321,596 445,945 Federal funds sold and securities purchased under resale agreements (included $327,018 and $286,771 at fair value)336,426 295,001 Securities borrowed (included $98,111 and $83,962 at fair value)286,191 219,546 Trading assets (included assets pledged of $165,927 and $136,070)802,873 637,784 Available-for-sale securities (amortized cost of $507,226 and $411,045; included assets pledged of $7,735 and $10,162)507,198 406,852 Held-to-maturity securities270,134 274,468 Investment securities, net of allowance for credit losses777,332 681,320 Loans (included $70,684 and $41,350 at fair value)1,493,429 1,347,988 Allowance for loan losses(25,765)(24,345)Loans, net of allowance for loan losses1,467,664 1,323,643 Accrued interest and accounts receivable111,599 101,223 Premises and equipment36,244 32,223 Goodwill, MSRs and other intangible assets64,458 64,560 Other assets (included $15,849 and $15,122 at fair value and assets pledged of $11,984 and $6,288)198,775 178,197 Total assets(a)$4,424,900 $4,002,814 LiabilitiesDeposits (included $20,930 and $33,768 at fair value)$2,559,320 $2,406,032 Federal funds purchased and securities loaned or sold under repurchase agreements (included $360,194 and $226,329 at fair value)442,396 296,835 Short-term borrowings (included $32,460 and $26,521 at fair value)64,776 52,893 Trading liabilities216,019 192,883 Accounts payable and other liabilities (included $6,660 and $5,893 at fair value)316,794 280,672 Beneficial interests issued by consolidated VIEs (included $5 and $1 at fair value)27,951 27,323 Long-term debt (included $134,559 and $100,780 at fair value)435,206 401,418 Total liabilities(a)4,062,462 3,658,056 Commitments and contingencies (refer to Notes 28, 29 and 30)Stockholders' equityPreferred stock ($1 par value; authorized 200,000,000 shares: issued 2,005,375 and 2,005,375 shares)20,045 20,050 Common stock ($1 par value; authorized 9,000,000,000 shares; issued 4,104,933,895 shares)4,105 4,105 Additional paid-in capital91,114 90,911 Retained earnings416,055 376,166 Accumulated other comprehensive losses(4,290)(12,456)Treasury stock, at cost (1,408,661,319 and 1,307,313,494 shares)(164,591)(134,018)Total stockholders' equity362,438 344,758 Total liabilities and stockholders' equity$4,424,900 $4,002,814 Federal funds sold and securities purchased under resale agreements (included $327,018 and $286,771 at fair value) Securities borrowed (included $98,111 and $83,962 at fair value) Trading assets (included assets pledged of $165,927 and $136,070) Available-for-sale securities (amortized cost of $507,226 and $411,045; included assets pledged of $7,735 and $10,162) Loans (included $70,684 and $41,350 at fair value) Other assets (included $15,849 and $15,122 at fair value and assets pledged of $11,984 and $6,288)" **Prior (2025):** December 31, (in millions, except share data)20242023AssetsCash and due from banks$23,372 $29,066 Deposits with banks445,945 595,085 Federal funds sold and securities purchased under resale agreements (included $286,771 and $259,813 at fair value)295,001 276,152 Securities borrowed (included $83,962 and $70,086 at fair value)219,546 200,436 Trading assets (included assets pledged of $136,070 and $128,994)637,784 540,607 Available-for-sale securities (amortized cost of $411,045 and $205,456; included assets pledged of $10,162 and $9,219)406,852 201,704 Held-to-maturity securities274,468 369,848 Investment securities, net of allowance for credit losses681,320 571,552 Loans (included $41,350 and $38,851 at fair value)1,347,988 1,323,706 Allowance for loan losses(24,345)(22,420)Loans, net of allowance for loan losses1,323,643 1,301,286 Accrued interest and accounts receivable101,223 107,363 Premises and equipment32,223 30,157 Goodwill, MSRs and other intangible assets64,560 64,381 Other assets (included $15,122 and $12,306 at fair value and assets pledged of $6,288 and $6,764)178,197 159,308 Total assets(a)$4,002,814 $3,875,393 LiabilitiesDeposits (included $33,768 and $78,384 at fair value)$2,406,032 $2,400,688 Federal funds purchased and securities loaned or sold under repurchase agreements (included $226,329 and $169,003 at fair value)296,835 216,535 Short-term borrowings (included $26,521 and $20,042 at fair value)52,893 44,712 Trading liabilities192,883 180,428 Accounts payable and other liabilities (included $5,893 and $5,637 at fair value)280,672 290,307 Beneficial interests issued by consolidated VIEs (included $1 and $1 at fair value)27,323 23,020 Long-term debt (included $100,780 and $87,924 at fair value)401,418 391,825 Total liabilities(a)3,658,056 3,547,515 Commitments and contingencies (refer to Notes 28, 29 and 30)Stockholders' equityPreferred stock ($1 par value; authorized 200,000,000 shares: issued 2,005,375 and 2,740,375 shares)20,050 27,404 Common stock ($1 par value; authorized 9,000,000,000 shares; issued 4,104,933,895 shares)4,105 4,105 Additional paid-in capital90,911 90,128 Retained earnings376,166 332,901 Accumulated other comprehensive losses(12,456)(10,443)Treasury stock, at cost (1,307,313,494 and 1,228,275,301 shares)(134,018)(116,217)Total stockholders' equity344,758 327,878 Total liabilities and stockholders' equity$4,002,814 $3,875,393 Federal funds sold and securities purchased under resale agreements (included $286,771 and $259,813 at fair value) Securities borrowed (included $83,962 and $70,086 at fair value) Trading assets (included assets pledged of $136,070 and $128,994) Available-for-sale securities (amortized cost of $411,045 and $205,456; included assets pledged of $10,162 and $9,219) Loans (included $41,350 and $38,851 at fair value) Other assets (included $15,122 and $12,306 at fair value and assets pledged of $6,288 and $6,764) **Current (2026):** December 31, (in millions, except share data)20252024AssetsCash and due from banks$21,742 $23,372 Deposits with banks321,596 445,945 Federal funds sold and securities purchased under resale agreements (included $327,018 and $286,771 at fair value)336,426 295,001 Securities borrowed (included $98,111 and $83,962 at fair value)286,191 219,546 Trading assets (included assets pledged of $165,927 and $136,070)802,873 637,784 Available-for-sale securities (amortized cost of $507,226 and $411,045; included assets pledged of $7,735 and $10,162)507,198 406,852 Held-to-maturity securities270,134 274,468 Investment securities, net of allowance for credit losses777,332 681,320 Loans (included $70,684 and $41,350 at fair value)1,493,429 1,347,988 Allowance for loan losses(25,765)(24,345)Loans, net of allowance for loan losses1,467,664 1,323,643 Accrued interest and accounts receivable111,599 101,223 Premises and equipment36,244 32,223 Goodwill, MSRs and other intangible assets64,458 64,560 Other assets (included $15,849 and $15,122 at fair value and assets pledged of $11,984 and $6,288)198,775 178,197 Total assets(a)$4,424,900 $4,002,814 LiabilitiesDeposits (included $20,930 and $33,768 at fair value)$2,559,320 $2,406,032 Federal funds purchased and securities loaned or sold under repurchase agreements (included $360,194 and $226,329 at fair value)442,396 296,835 Short-term borrowings (included $32,460 and $26,521 at fair value)64,776 52,893 Trading liabilities216,019 192,883 Accounts payable and other liabilities (included $6,660 and $5,893 at fair value)316,794 280,672 Beneficial interests issued by consolidated VIEs (included $5 and $1 at fair value)27,951 27,323 Long-term debt (included $134,559 and $100,780 at fair value)435,206 401,418 Total liabilities(a)4,062,462 3,658,056 Commitments and contingencies (refer to Notes 28, 29 and 30)Stockholders' equityPreferred stock ($1 par value; authorized 200,000,000 shares: issued 2,005,375 and 2,005,375 shares)20,045 20,050 Common stock ($1 par value; authorized 9,000,000,000 shares; issued 4,104,933,895 shares)4,105 4,105 Additional paid-in capital91,114 90,911 Retained earnings416,055 376,166 Accumulated other comprehensive losses(4,290)(12,456)Treasury stock, at cost (1,408,661,319 and 1,307,313,494 shares)(164,591)(134,018)Total stockholders' equity362,438 344,758 Total liabilities and stockholders' equity$4,424,900 $4,002,814 Federal funds sold and securities purchased under resale agreements (included $327,018 and $286,771 at fair value) Securities borrowed (included $98,111 and $83,962 at fair value) Trading assets (included assets pledged of $165,927 and $136,070) Available-for-sale securities (amortized cost of $507,226 and $411,045; included assets pledged of $7,735 and $10,162) Loans (included $70,684 and $41,350 at fair value) Other assets (included $15,849 and $15,122 at fair value and assets pledged of $11,984 and $6,288) --- ## Modified Risk: As of or for the year ended December 31, 2025 **Key changes:** - Updated: "(in millions) Credit exposure(f)(g) Individuals and Individual Entities(b) Asset Managers State & Municipal Govt(c) All other(d) Total(e) 120JPMorgan Chase & Co./2025 Form 10-K 120JPMorgan Chase & Co./2025 Form 10-K 120JPMorgan Chase & Co./2025 Form 10-K 120 JPMorgan Chase & Co./2025 Form 10-K (continued from previous page)Selected metricsNoninvestment-grade30 days or more past due and accruingloansNet charge-offs/(recoveries)Credit derivative and credit-related notes (h)Liquid securities and other cash collateral held against derivativereceivablesAs of or for the year ended December 31, 2024(in millions)Creditexposure(f)(g)Investment- gradeNoncriticizedCriticized performingCriticized nonperformingReal Estate$207,050 $143,803 $50,865 $10,858 $1,524 $913 $345 $(584)$ - Individuals and Individual Entities(b)144,145 118,650 24,831 217 447 831 122 - - Asset Managers135,541 101,150 34,148 206 37 375 2 - (9,194)Consumer & Retail129,815 62,800 60,141 6,055 819 252 123 (4,320) - Technology, Media & Telecommunications84,716 45,021 28,629 10,592 474 79 94 (4,800) - Industrials72,530 37,572 30,912 3,807 239 185 91 (2,312) - Banks & Finance Companies61,287 36,884 24,119 257 27 36 - (702)(729)Healthcare64,224 44,135 17,062 2,219 808 245 56 (3,286)(34)Utilities35,871 24,205 10,256 1,273 137 1 - (2,700) - Oil & Gas31,724 19,053 12,479 188 4 9 (3)(1,711)(2)Automotive34,336 22,015 11,353 931 37 121 1 (997) - State & Municipal Govt(c)35,039 33,303 1,711 9 16 90 - (2)(1)Insurance24,267 17,847 6,198 222 - 2 - (1,077)(9,184)Chemicals & Plastics20,782 11,013 8,152 1,521 96 31 14 (1,164) - Transportation17,019 9,462 7,135 391 31 17 (20)(658) - Metals & Mining15,860 7,373 7,860 590 37 9 - (246)(2)Central Govt13,862 13,580 157 125 - 4 - (1,490)(2,051)Securities Firms9,443 5,424 4,014 5 - - - (13)(2,635)Financial Markets Infrastructure4,446 4,201 245 - - - - (1) - All other(d)140,873 117,986 22,398 398 91 10 (3)(14,825)(4,328)Subtotal$1,282,830 $875,477 $362,665 $39,864 $4,824 $3,210 $822 $(40,888)$(28,160)Loans held-for-sale and loans at fair value31,922 Receivables from customers51,929 Total(e)$1,366,681 Credit derivative and credit-related notes (h) Credit exposure(f)(g) Individuals and Individual Entities(b) State & Municipal Govt(c) All other(d) Total(e) (a)The industry rankings presented in the table as of December 31, 2024, are based on the industry rankings of the corresponding exposures as of December 31, 2025, not actual rankings of such exposures as of December 31, 2024." **Prior (2025):** The Firm focuses on the management and diversification of its industry exposures, and pays particular attention to industries with actual or potential credit concerns. Exposures that are deemed to be criticized align with the U.S. banking regulators' definition of criticized exposures, which consist of the special mention, substandard and doubtful categories. Total criticized exposure, excluding loans held-for-sale and loans at fair value, was $44.7 billion and $41.4 billion at December 31, 2024 and 2023, representing approximately 3.5% and 3.3% of total wholesale credit exposure, respectively; of the $44.7 billion, $39.9 billion was performing. The increase in criticized exposure was driven by Real Estate resulting from downgrades, primarily in Multifamily and Office, and new commitments in Technology and Media, partially offset by Consumer & Retail resulting from net portfolio activity and upgrades. The table below summarizes by industry the Firm's exposures as of December 31, 2024 and 2023. The industry of risk category is generally based on the client or counterparty's primary business activity. Refer to Note 4 for additional information on industry concentrations. Wholesale credit exposure - industries(a)Selected metricsNoninvestment-grade30 days or more past due and accruingloansNet charge-offs/(recoveries)Credit derivative and credit-related notes(h)Liquid securities and other cash collateral held against derivativereceivablesAs of or for the year ended December 31, 2024(in millions)Creditexposure(f)(g)Investment- gradeNoncriticizedCriticized performingCriticized nonperformingReal Estate$207,050 $143,803 $50,865 $10,858 $1,524 $913 $345 $(584)$ - Individuals and Individual Entities(b)144,145 118,650 24,831 217 447 831 122 - - Asset Managers135,541 101,150 34,148 206 37 375 2 - (9,194)Consumer & Retail129,815 62,800 60,141 6,055 819 252 123 (4,320) - Technology, Media & Telecommunications84,716 45,021 28,629 10,592 474 79 94 (4,800) - Industrials72,530 37,572 30,912 3,807 239 185 91 (2,312) - Healthcare64,224 44,135 17,062 2,219 808 245 56 (3,286)(34)Banks & Finance Companies61,287 36,884 24,119 257 27 36 - (702)(729)Utilities35,871 24,205 10,256 1,273 137 1 - (2,700) - State & Municipal Govt(c)35,039 33,303 1,711 9 16 90 - (2)(1)Automotive34,336 22,015 11,353 931 37 121 1 (997) - Oil & Gas31,724 19,053 12,479 188 4 9 (3)(1,711)(2)Insurance24,267 17,847 6,198 222 - 2 - (1,077)(9,184)Chemicals & Plastics20,782 11,013 8,152 1,521 96 31 14 (1,164) - Transportation17,019 9,462 7,135 391 31 17 (20)(658) - Metals & Mining15,860 7,373 7,860 590 37 9 - (246)(2)Central Govt13,862 13,580 157 125 - 4 - (1,490)(2,051)Securities Firms9,443 5,424 4,014 5 - - - (13)(2,635)Financial Markets Infrastructure4,446 4,201 245 - - - - (1) - All other(d)140,873 117,986 22,398 398 91 10 (3)(14,825)(4,328)Subtotal$1,282,830 $875,477 $362,665 $39,864 $4,824 $3,210 $822 $(40,888)$(28,160)Loans held-for-sale and loans at fair value31,922 Receivables from customers51,929 Total(e)$1,366,681 **Current (2026):** (in millions) Credit exposure(f)(g) Individuals and Individual Entities(b) Asset Managers State & Municipal Govt(c) All other(d) Total(e) 120JPMorgan Chase & Co./2025 Form 10-K 120JPMorgan Chase & Co./2025 Form 10-K 120JPMorgan Chase & Co./2025 Form 10-K 120 JPMorgan Chase & Co./2025 Form 10-K (continued from previous page)Selected metricsNoninvestment-grade30 days or more past due and accruingloansNet charge-offs/(recoveries)Credit derivative and credit-related notes (h)Liquid securities and other cash collateral held against derivativereceivablesAs of or for the year ended December 31, 2024(in millions)Creditexposure(f)(g)Investment- gradeNoncriticizedCriticized performingCriticized nonperformingReal Estate$207,050 $143,803 $50,865 $10,858 $1,524 $913 $345 $(584)$ - Individuals and Individual Entities(b)144,145 118,650 24,831 217 447 831 122 - - Asset Managers135,541 101,150 34,148 206 37 375 2 - (9,194)Consumer & Retail129,815 62,800 60,141 6,055 819 252 123 (4,320) - Technology, Media & Telecommunications84,716 45,021 28,629 10,592 474 79 94 (4,800) - Industrials72,530 37,572 30,912 3,807 239 185 91 (2,312) - Banks & Finance Companies61,287 36,884 24,119 257 27 36 - (702)(729)Healthcare64,224 44,135 17,062 2,219 808 245 56 (3,286)(34)Utilities35,871 24,205 10,256 1,273 137 1 - (2,700) - Oil & Gas31,724 19,053 12,479 188 4 9 (3)(1,711)(2)Automotive34,336 22,015 11,353 931 37 121 1 (997) - State & Municipal Govt(c)35,039 33,303 1,711 9 16 90 - (2)(1)Insurance24,267 17,847 6,198 222 - 2 - (1,077)(9,184)Chemicals & Plastics20,782 11,013 8,152 1,521 96 31 14 (1,164) - Transportation17,019 9,462 7,135 391 31 17 (20)(658) - Metals & Mining15,860 7,373 7,860 590 37 9 - (246)(2)Central Govt13,862 13,580 157 125 - 4 - (1,490)(2,051)Securities Firms9,443 5,424 4,014 5 - - - (13)(2,635)Financial Markets Infrastructure4,446 4,201 245 - - - - (1) - All other(d)140,873 117,986 22,398 398 91 10 (3)(14,825)(4,328)Subtotal$1,282,830 $875,477 $362,665 $39,864 $4,824 $3,210 $822 $(40,888)$(28,160)Loans held-for-sale and loans at fair value31,922 Receivables from customers51,929 Total(e)$1,366,681 Credit derivative and credit-related notes (h) Credit exposure(f)(g) Individuals and Individual Entities(b) State & Municipal Govt(c) All other(d) Total(e) (a)The industry rankings presented in the table as of December 31, 2024, are based on the industry rankings of the corresponding exposures as of December 31, 2025, not actual rankings of such exposures as of December 31, 2024. (b)Individuals and Individual Entities predominantly consists of Global Private Bank clients within AWM and J.P. Morgan Wealth Management within CCB, and includes exposure to personal investment companies and personal and testamentary trusts. (c)In addition to the credit risk exposure to states and municipal governments (both U.S. and non-U.S.) at December 31, 2025 and 2024, noted above, the Firm held: $6.1 billion of trading assets at both periods; $20.2 billion and $17.9 billion, respectively, of AFS securities; and $8.6 billion and $9.3 billion, respectively, of HTM securities, issued by U.S. state and municipal governments. Refer to Notes 2 and 10 for further information. (d)All other includes: SPEs and Private education and civic organizations, representing approximately 95% and 5%, respectively, at December 31, 2025, and 94% and 6%, respectively, at December 31, 2024. Refer to Note 14 for more information on exposures to SPEs. (e)Excludes cash placed with banks of $333.8 billion and $459.2 billion, at December 31, 2025 and 2024, respectively, which is predominantly placed with various central banks, primarily Federal Reserve Banks. (f)Credit exposure is net of risk participations and excludes the benefit of credit derivatives and credit-related notes used in credit portfolio management activities held against derivative receivables or loans and liquid securities and other cash collateral held against derivative receivables. (g)Credit exposure includes held-for-sale and fair value option elected lending-related commitments. (h)Represents the net notional amounts of protection purchased and sold through credit derivatives and credit-related notes used to manage the credit exposures; these derivatives do not qualify for hedge accounting under U.S. GAAP. The All other category includes purchased credit protection on certain credit indices. JPMorgan Chase & Co./2025 Form 10-K121 JPMorgan Chase & Co./2025 Form 10-K121 JPMorgan Chase & Co./2025 Form 10-K121 JPMorgan Chase & Co./2025 Form 10-K 121 --- ## Modified Risk: Risk-based capital metrics:(a) **Key changes:** - Updated: "CET1 capital Tier 1 capital Total capital (d) (d) (d) (a)As of January 1, 2025, the benefit from the CECL capital transition provision had been fully phased out." **Prior (2025):** CET1 capital Tier 1 capital Total capital (a)The capital metrics reflect the CECL capital transition provisions. (b)Includes the impacts of certain assets associated with First Republic to which the Standardized approach has been applied as permitted by the transition provisions in the U.S. capital rules. Three months ended(in millions, except ratios)December 31, 2024December 31, 2023JPMorgan Chase & Co.JPMorgan Chase Bank, N.A.JPMorgan Chase & Co.JPMorgan Chase Bank, N.A.Leverage-based capital metrics: (a)Adjusted average assets(b)$4,070,499 $3,491,283 $3,831,200 $3,337,842 Tier 1 leverage ratio7.2 %7.9 %7.2 %7.9 %Total leverage exposure$4,837,568 $4,246,516 $4,540,465 $4,038,739 SLR6.1 %6.5 %6.1 %6.5 % **Current (2026):** CET1 capital Tier 1 capital Total capital (d) (d) (d) (a)As of January 1, 2025, the benefit from the CECL capital transition provision had been fully phased out. The capital metrics for the year ended December 31, 2024 reflected the CECL capital transition provisions. (b)Includes approximately $23 billion under the Standardized approach and approximately $110 billion under the Advanced approach for both the Firm and Bank related to the Apple Card transaction. (c)Includes decreases of approximately 25 basis points under the Standardized approach for both the Firm and Bank and approximately 90 basis points and 110 basis points under the Advanced approach for the Firm and Bank, respectively, related to the Apple Card transaction. (d)Includes the impacts of certain assets associated with First Republic to which the Standardized approach has been applied as permitted by the transition provisions in the U.S. capital rules. Three months ended(in millions, except ratios)December 31, 2025December 31, 2024JPMorgan Chase & Co.JPMorgan Chase Bank, N.A.JPMorgan Chase & Co.JPMorgan Chase Bank, N.A.Leverage-based capital metrics:(a)Adjusted average assets(b)$4,472,394 $3,766,709 $4,070,499 $3,491,283 Tier 1 leverage ratio6.9 %7.8 %7.2 %7.9 %Total leverage exposure$5,302,001 $4,571,728 $4,837,568 $4,246,516 SLR5.8 %6.4 %6.1 %6.5 % --- ## Modified Risk: Allowance for credit losses and related information **Key changes:** - Updated: "(Table continued on next page)2025Year ended December 31,(in millions)Consumer,excluding credit cardCredit cardWholesaleTotalAllowance for loan lossesBeginning balance at January 1,$1,807 $14,600 $7,938 $24,345 Cumulative effect of a change in accounting principle(a)NANANANAGross charge-offs1,089 9,164 1,787 12,040 Gross recoveries collected(510)(1,492)(189)(2,191)Net charge-offs579 7,672 1,598 9,849 Provision for loan losses692 8,629 1,943 11,264 Other - - 5 5 Ending balance at December 31,$1,920 $15,557 $8,288 $25,765 Allowance for lending-related commitmentsBeginning balance at January 1,$82 $ - $2,019 $2,101 Provision for lending-related commitments1 2,200 (f)768 2,969 Other - - 1 1 Ending balance at December 31,$83 $2,200 $2,788 $5,071 Total allowance for investment securitiesNANANA$106 Total allowance for credit losses(b)$2,003 $17,757 $11,076 $30,942 Allowance for loan losses by impairment methodologyAsset-specific(c)$(647)$ - $707 $60 Portfolio-based2,567 15,557 7,581 25,705 Total allowance for loan losses$1,920 $15,557 $8,288 $25,765 Loans by impairment methodologyAsset-specific(c)$3,457 $ - $4,391 $7,848 Portfolio-based365,284 247,797 787,976 1,401,057 Total retained loans$368,741 $247,797 $792,367 $1,408,905 Collateral-dependent loansNet charge-offs$7 $ - $542 $549 Loans measured at fair value of collateral less cost to sell3,412 - 1,852 5,264 Allowance for lending-related commitments by impairment methodologyAsset-specific$ - $ - $119 $119 Portfolio-based83 2,200 (f)2,669 4,952 Total allowance for lending-related commitments(d)$83 $2,200 $2,788 $5,071 Lending-related commitments by impairment methodologyAsset-specific$ - $ - $925 $925 Portfolio-based(e)24,358 23,617 (g)555,047 603,022 Total lending-related commitments$24,358 $23,617 $555,972 $603,947 2025 Cumulative effect of a change in accounting principle(a) Other" **Prior (2025):** The table below summarizes information about the allowances for credit losses and includes a breakdown of loans and lending-related commitments by impairment methodology. Refer to Note 10 for further information on the allowance for credit losses on investment securities. (Table continued on next page)2024Year ended December 31,(in millions)Consumer,excluding credit cardCredit cardWholesaleTotalAllowance for loan lossesBeginning balance at January 1,$1,856 $12,450 $8,114 $22,420 Cumulative effect of a change in accounting principle(a)NANANANAGross charge-offs1,299 8,198 1,022 10,519 Gross recoveries collected(625)(1,056)(200)(1,881)Net charge-offs674 7,142 822 8,638 Provision for loan losses624 9,292 578 10,494 Other1 - 68 69 Ending balance at December 31,$1,807 $14,600 $7,938 $24,345 Allowance for lending-related commitmentsBeginning balance at January 1,$75 $ - $1,899 $1,974 Provision for lending-related commitments7 - 121 128 Other - - (1)(1)Ending balance at December 31,$82 $ - $2,019 $2,101 Total allowance for investment securitiesNANANA$152 Total allowance for credit losses(b)$1,889 $14,600 $9,957 $26,598 Allowance for loan losses by impairment methodologyAsset-specific(c)$(728)$ - $526 $(202)Portfolio-based2,535 14,600 7,412 24,547 Total allowance for loan losses$1,807 $14,600 $7,938 $24,345 Loans by impairment methodologyAsset-specific(c)$2,805 $ - $3,912 $6,717 Portfolio-based373,529 232,860 686,484 1,292,873 Total retained loans$376,334 $232,860 $690,396 $1,299,590 Collateral-dependent loansNet charge-offs$1 $ - $324 $325 Loans measured at fair value of collateral less cost to sell2,696 - 1,834 4,530 Allowance for lending-related commitments by impairment methodologyAsset-specific$ - $ - $109 $109 Portfolio-based82 - 1,910 1,992 Total allowance for lending-related commitments(d)$82 $ - $2,019 $2,101 Lending-related commitments by impairment methodologyAsset-specific$ - $ - $737 $737 Portfolio-based(e)25,608 19 510,254 535,881 Total lending-related commitments$25,608 $19 $510,991 $536,618 2024 Cumulative effect of a change in accounting principle(a) Other **Current (2026):** The table below summarizes information about the allowances for credit losses and includes a breakdown of loans and lending-related commitments by impairment methodology. Refer to Note 10 for further information on the allowance for credit losses on investment securities. (Table continued on next page)2025Year ended December 31,(in millions)Consumer,excluding credit cardCredit cardWholesaleTotalAllowance for loan lossesBeginning balance at January 1,$1,807 $14,600 $7,938 $24,345 Cumulative effect of a change in accounting principle(a)NANANANAGross charge-offs1,089 9,164 1,787 12,040 Gross recoveries collected(510)(1,492)(189)(2,191)Net charge-offs579 7,672 1,598 9,849 Provision for loan losses692 8,629 1,943 11,264 Other - - 5 5 Ending balance at December 31,$1,920 $15,557 $8,288 $25,765 Allowance for lending-related commitmentsBeginning balance at January 1,$82 $ - $2,019 $2,101 Provision for lending-related commitments1 2,200 (f)768 2,969 Other - - 1 1 Ending balance at December 31,$83 $2,200 $2,788 $5,071 Total allowance for investment securitiesNANANA$106 Total allowance for credit losses(b)$2,003 $17,757 $11,076 $30,942 Allowance for loan losses by impairment methodologyAsset-specific(c)$(647)$ - $707 $60 Portfolio-based2,567 15,557 7,581 25,705 Total allowance for loan losses$1,920 $15,557 $8,288 $25,765 Loans by impairment methodologyAsset-specific(c)$3,457 $ - $4,391 $7,848 Portfolio-based365,284 247,797 787,976 1,401,057 Total retained loans$368,741 $247,797 $792,367 $1,408,905 Collateral-dependent loansNet charge-offs$7 $ - $542 $549 Loans measured at fair value of collateral less cost to sell3,412 - 1,852 5,264 Allowance for lending-related commitments by impairment methodologyAsset-specific$ - $ - $119 $119 Portfolio-based83 2,200 (f)2,669 4,952 Total allowance for lending-related commitments(d)$83 $2,200 $2,788 $5,071 Lending-related commitments by impairment methodologyAsset-specific$ - $ - $925 $925 Portfolio-based(e)24,358 23,617 (g)555,047 603,022 Total lending-related commitments$24,358 $23,617 $555,972 $603,947 2025 Cumulative effect of a change in accounting principle(a) Other --- ## Modified Risk: Total long-term secured funding **Key changes:** - Updated: "(a)Includes long-term structured notes that are secured." - Updated: "106JPMorgan Chase & Co./2025 Form 10-K 106JPMorgan Chase & Co./2025 Form 10-K 106JPMorgan Chase & Co./2025 Form 10-K 106 JPMorgan Chase & Co./2025 Form 10-K" **Prior (2025):** (a)Reflects the Purchase Money Note associated with the First Republic acquisition. Refer to Note 34 for additional information. (b)Includes long-term structured notes that are secured. (c)Includes FHLB advances associated with the First Republic acquisition on May 1, 2023. Refer to Note 34 for additional information. The Firm's wholesale businesses also securitize loans for client-driven transactions; those client-driven loan securitizations are not considered to be a source of funding for the Firm and are not included in the table above. Refer to Note 14 for a further description of client-driven loan securitizations. 114JPMorgan Chase & Co./2024 Form 10-K 114JPMorgan Chase & Co./2024 Form 10-K 114JPMorgan Chase & Co./2024 Form 10-K 114 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** (a)Includes long-term structured notes that are secured. The Firm's wholesale businesses also securitize loans for client-driven transactions which are not considered to be a source of funding for the Firm and are not included in the table above. Refer to Note 14 for a further description of client-driven loan securitizations. 106JPMorgan Chase & Co./2025 Form 10-K 106JPMorgan Chase & Co./2025 Form 10-K 106JPMorgan Chase & Co./2025 Form 10-K 106 JPMorgan Chase & Co./2025 Form 10-K --- ## Modified Risk: As of or for the year ended December 31, 2025 **Key changes:** - Updated: "(in millions) Other(a)As of or for the year ended December 31, 2024 (in millions)Term loans by origination yearRevolving loans20242023202220212020Prior to 2020Within the revolving periodConverted to term loansTotalLoans by risk ratingsInvestment-grade$30,484 $17,039 $13,272 $6,288 $8,632 $7,382 $201,949 $1,482 $286,528 Noninvestment-grade11,784 7,248 5,918 3,296 1,366 1,886 42,954 194 74,646 Total retained loans$42,268 $24,287 $19,190 $9,584 $9,998 $9,268 $244,903 $1,676 $361,174 Gross charge-offs$ - $38 $3 $36 $40 $50 $6 $ - $173 Other(a) As of or for the year ended December 31, 2024 (in millions) (a)Includes loans to financial institutions, personal investment companies and trusts, individuals and individual entities (predominantly Global Private Bank clients within AWM and J.P." - Updated: "252JPMorgan Chase & Co./2025 Form 10-K 252JPMorgan Chase & Co./2025 Form 10-K 252JPMorgan Chase & Co./2025 Form 10-K 252 JPMorgan Chase & Co./2025 Form 10-K The following table presents additional information on retained loans secured by real estate, which consists of loans secured wholly or substantially by a lien or liens on real property at origination." - Updated: "Included in secured by real estate loans were $12.4 billion and $12.2 billion as of December 31, 2025 and 2024, respectively, of construction and development loans made to finance land development and on-site construction of commercial, industrial, residential, or farm buildings." **Prior (2025):** Commercial and industrial(in millions)December 31, 2024Term loans by origination yearRevolving loans20242023202220212020Prior to 2020Within the revolving periodConverted to term loansTotalLoans by risk ratingsInvestment-grade$11,564 $6,285 $6,588 $3,119 $1,067 $1,139 $41,099 $1 $70,862 Noninvestment-grade21,251 11,350 10,942 5,322 783 975 45,181 124 95,928 Total retained loans$32,815 $17,635 $17,530 $8,441 $1,850 $2,114 $86,280 $125 $166,790 Gross charge-offs$25 $22 $128 $24 $1 $50 $270 $5 $525 Commercial and industrial(in millions)December 31, 2023Term loans by origination yearRevolving loans20232022202120202019Prior to 2019Within the revolving periodConverted to term loansTotalLoans by risk ratingsInvestment-grade$14,875 $10,642 $4,276 $2,291 $1,030 $1,115 $38,394 $1 $72,624 Noninvestment-grade18,890 16,444 9,299 1,989 1,144 1,006 45,696 74 94,542 Total retained loans$33,765 $27,086 $13,575 $4,280 $2,174 $2,121 $84,090 $75 $167,166 Gross charge-offs$25 $8 $110 $55 $2 $12 $259 $8 $479 Other(a)(in millions)December 31, 2024Term loans by origination yearRevolving loans20242023202220212020Prior to 2020Within the revolving periodConverted to term loansTotalLoans by risk ratingsInvestment-grade$30,484 $17,039 $13,272 $6,288 $8,632 $7,382 $201,949 $1,482 $286,528 Noninvestment-grade11,784 7,248 5,918 3,296 1,366 1,886 42,954 194 74,646 Total retained loans$42,268 $24,287 $19,190 $9,584 $9,998 $9,268 $244,903 $1,676 $361,174 Gross charge-offs$ - $38 $3 $36 $40 $50 $6 $ - $173 Other(a) Other(a)(in millions)December 31, 2023Term loans by origination yearRevolving loans20232022202120202019Prior to 2019Within the revolving periodConverted to term loansTotalLoans by risk ratingsInvestment-grade$38,338 $18,034 $10,033 $10,099 $3,721 $6,662 $176,728 $2,194 $265,809 Noninvestment-grade14,054 8,092 6,169 2,172 811 2,001 43,801 59 77,159 Total retained loans$52,392 $26,126 $16,202 $12,271 $4,532 $8,663 $220,529 $2,253 $342,968 Gross charge-offs$5 $298 $8 $8 $ - $8 $13 $ - $340 Other(a) (a)Includes loans to financial institutions, SPEs, personal investment companies and trusts, individuals and individual entities (predominantly Global Private Bank clients within AWM and J.P. Morgan Wealth Management within CCB), states and political subdivisions, as well as loans to nonprofits. Refer to Note 14 for more information on SPEs. 260JPMorgan Chase & Co./2024 Form 10-K 260JPMorgan Chase & Co./2024 Form 10-K 260JPMorgan Chase & Co./2024 Form 10-K 260 JPMorgan Chase & Co./2024 Form 10-K The following table presents additional information on retained loans secured by real estate, which consists of loans secured wholly or substantially by a lien or liens on real property at origination. Multifamily lending includes financing for acquisition, leasing and construction of apartment buildings. Other commercial lending largely includes financing for acquisition, leasing and construction, largely for office, retail and industrial real estate. Included in secured by real estate loans were $12.2 billion and $10.2 billion as of December 31, 2024 and 2023, respectively, of construction and development loans made to finance land development and on-site construction of commercial, industrial, residential, or farm buildings. December 31,(in millions, except ratios)MultifamilyOther CommercialTotal retained loans secured by real estate202420232024202320242023Retained loans secured by real estate$101,114 $100,725 $61,318 $61,613 $162,432 $162,338 Criticized4,700 3,596 6,030 4,096 10,730 7,692 % of criticized to total retained loans secured by real estate4.65 %3.57 %9.83 %6.65 %6.61 %4.74 %Criticized nonaccrual$337 $76 $1,102 $325 $1,439 $401 % of criticized nonaccrual loans to total retained loans secured by real estate0.33 %0.08 %1.80 %0.53 %0.89 %0.25 % Geographic distribution and delinquency The following table provides information on the geographic distribution and delinquency for retained wholesale loans. December 31,(in millions)Secured by real estateCommercial and industrialOtherTotal retained loans20242023202420232024202320242023Loans by geographic distribution(a)Total U.S.$159,209 $159,499 $127,626 $127,638 $278,077 $262,499 $564,912 $549,636 Total non-U.S.3,223 2,839 39,164 39,528 83,097 80,469 125,484 122,836 Total retained loans$162,432 $162,338 $166,790 $167,166 $361,174 $342,968 $690,396 $672,472 Loan delinquencyCurrent and less than 30 days past due and still accruing$159,949 $161,314 $164,104 $164,899 $359,191 $341,128 $683,244 $667,341 30-89 days past due and still accruing918 473 868 884 1,152 1,090 2,938 2,447 90 or more days past due and still accruing(b)126 150 58 162 88 26 272 338 Criticized nonaccrual1,439 401 1,760 1,221 743 724 3,942 2,346 Total retained loans$162,432 $162,338 $166,790 $167,166 $361,174 $342,968 $690,396 $672,472 **Current (2026):** (in millions) Other(a)As of or for the year ended December 31, 2024 (in millions)Term loans by origination yearRevolving loans20242023202220212020Prior to 2020Within the revolving periodConverted to term loansTotalLoans by risk ratingsInvestment-grade$30,484 $17,039 $13,272 $6,288 $8,632 $7,382 $201,949 $1,482 $286,528 Noninvestment-grade11,784 7,248 5,918 3,296 1,366 1,886 42,954 194 74,646 Total retained loans$42,268 $24,287 $19,190 $9,584 $9,998 $9,268 $244,903 $1,676 $361,174 Gross charge-offs$ - $38 $3 $36 $40 $50 $6 $ - $173 Other(a) As of or for the year ended December 31, 2024 (in millions) (a)Includes loans to financial institutions, personal investment companies and trusts, individuals and individual entities (predominantly Global Private Bank clients within AWM and J.P. Morgan Wealth Management within CCB), states and political subdivisions, nonprofits, as well as loans to SPEs. Refer to Note 14 for more information on SPEs. 252JPMorgan Chase & Co./2025 Form 10-K 252JPMorgan Chase & Co./2025 Form 10-K 252JPMorgan Chase & Co./2025 Form 10-K 252 JPMorgan Chase & Co./2025 Form 10-K The following table presents additional information on retained loans secured by real estate, which consists of loans secured wholly or substantially by a lien or liens on real property at origination. Multifamily lending includes financing for acquisition, leasing and construction of apartment buildings. Other commercial lending largely includes financing for acquisition, leasing and construction, largely for office, retail and industrial real estate. Included in secured by real estate loans were $12.4 billion and $12.2 billion as of December 31, 2025 and 2024, respectively, of construction and development loans made to finance land development and on-site construction of commercial, industrial, residential, or farm buildings. December 31,(in millions, except ratios)MultifamilyOther CommercialTotal retained Secured by real estate loans202520242025202420252024Retained loans secured by real estate$105,130 $101,114 $60,415 $61,318 $165,545 $162,432 Criticized4,661 4,700 5,889 6,030 10,550 10,730 % of criticized to total retained loans secured by real estate4.43 %4.65 %9.75 %9.83 %6.37 %6.61 %Criticized nonaccrual$422 $337 $1,256 $1,102 $1,678 $1,439 % of criticized nonaccrual loans to total retained loans secured by real estate0.40 %0.33 %2.08 %1.80 %1.01 %0.89 % Geographic distribution and delinquency The following table provides information on the geographic distribution and delinquency for retained wholesale loans. December 31,(in millions)Secured by real estateCommercial and industrialOtherTotal retained loans20252024202520242025202420252024Loans by geographic distribution(a)Total U.S.$162,378 $159,209 $131,945 $127,626 $331,737 $278,077 $626,060 $564,912 Total non-U.S.3,167 3,223 42,458 39,164 120,682 83,097 166,307 125,484 Total retained loans$165,545 $162,432 $174,403 $166,790 $452,419 $361,174 $792,367 $690,396 Loan delinquencyCurrent and less than 30 days past due and still accruing$163,189 $159,949 $171,227 $164,104 $450,582 $359,191 $784,998 $683,244 30-89 days past due and still accruing636 918 1,220 868 1,057 1,152 2,913 2,938 90 or more days past due and still accruing(b)42 126 2 58 14 88 58 272 Criticized nonaccrual1,678 1,439 1,954 1,760 766 743 4,398 3,942 Total retained loans$165,545 $162,432 $174,403 $166,790 $452,419 $361,174 $792,367 $690,396 --- ## Modified Risk: Management's discussion and analysis **Key changes:** - Updated: "ACCOUNTING AND REPORTING DEVELOPMENTS ACCOUNTING AND REPORTING DEVELOPMENTS Financial Accounting Standards Board ("FASB") Standards Adopted since January 1, 2025StandardSummary of guidance Effects on financial statementsIncome Taxes: Improvements to Income Tax DisclosuresIssued December 2023•Requires disclosure of income taxes paid disaggregated by 1) federal, state, and foreign taxes and 2) individual jurisdiction on the basis of a quantitative threshold of equal to or greater than 5 percent of total income taxes paid (net of refunds received).•Requires disclosure of the effective tax rate reconciliation by specific categories, at a minimum, with accompanying qualitative disclosures, and separate disclosure of reconciling items based on quantitative thresholds." **Prior (2025):** FASB Standards Issued but not yet Adopted as of December 31, 2024StandardSummary of guidance Effects on financial statementsIncome Taxes: Improvements to Income Tax DisclosuresIssued December 2023•Requires disclosure of income taxes paid disaggregated by 1) federal, state, and foreign taxes and 2) individual jurisdiction on the basis of a quantitative threshold of equal to or greater than 5 percent of total income taxes paid (net of refunds received).•Requires disclosure of the effective tax rate reconciliation by specific categories, at a minimum, with accompanying qualitative disclosures, and separate disclosure of reconciling items based on quantitative thresholds. •Requires categories within the effective tax rate reconciliation to be further disaggregated if quantitative thresholds are met.•Required effective date: Annual financial statements for the year ending December 31, 2025.•The guidance can be applied on a prospective basis with the option to apply the standard retrospectively.•The Firm is evaluating the potential impact on the Consolidated Financial Statements disclosures.Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures: Disaggregation of Income Statement ExpensesIssued November 2024•Requires additional annual and interim disclosures about specific types of expenses presented in the Consolidated statements of income.•Required effective date: Annual financial statements for the year ending December 31, 2027, and interim financial statements for the year ending December 31, 2028. (a)•The guidance can be applied on a prospective basis with the option to apply the standard retrospectively.•The Firm is evaluating the potential impact on the Consolidated Financial Statements disclosures, as well as the Firm's planned date of adoption. **Current (2026):** ACCOUNTING AND REPORTING DEVELOPMENTS ACCOUNTING AND REPORTING DEVELOPMENTS Financial Accounting Standards Board ("FASB") Standards Adopted since January 1, 2025StandardSummary of guidance Effects on financial statementsIncome Taxes: Improvements to Income Tax DisclosuresIssued December 2023•Requires disclosure of income taxes paid disaggregated by 1) federal, state, and foreign taxes and 2) individual jurisdiction on the basis of a quantitative threshold of equal to or greater than 5 percent of total income taxes paid (net of refunds received).•Requires disclosure of the effective tax rate reconciliation by specific categories, at a minimum, with accompanying qualitative disclosures, and separate disclosure of reconciling items based on quantitative thresholds. •Requires categories within the effective tax rate reconciliation to be further disaggregated if quantitative thresholds are met.•Adopted retrospectively for the Firm's annual Consolidated Financial Statements for the year ended December 31, 2025.•The adoption of this guidance resulted in expanded income tax disclosures, including more detailed information about the Firm's effective tax rate and income tax expense reconciliation by specific categories, as well as disclosure of income taxes paid, disaggregated by jurisdiction. Refer to Note 25 for further information. --- ## Modified Risk: Total nonrecurring fair value gains/(losses) **Key changes:** - Updated: "(a)Included $122 million, $(197) million and $(232) million for the years ended December 31, 2025, 2024 and 2023, respectively, of net gains/(losses) as a result of the measurement alternative." **Prior (2025):** (a)Included $(197) million, $(232) million and $(338) million for the years ended December 31, 2024, 2023 and 2022, respectively, of net gains/(losses) as a result of the measurement alternative. The current period also included impairments on certain equity method investments. JPMorgan Chase & Co./2024 Form 10-K199 JPMorgan Chase & Co./2024 Form 10-K199 JPMorgan Chase & Co./2024 Form 10-K199 JPMorgan Chase & Co./2024 Form 10-K 199 **Current (2026):** (a)Included $122 million, $(197) million and $(232) million for the years ended December 31, 2025, 2024 and 2023, respectively, of net gains/(losses) as a result of the measurement alternative. Also included impairments on certain equity method investments for the years ended December 31, 2025 and 2024. 192JPMorgan Chase & Co./2025 Form 10-K 192JPMorgan Chase & Co./2025 Form 10-K 192JPMorgan Chase & Co./2025 Form 10-K 192 JPMorgan Chase & Co./2025 Form 10-K --- ## Modified Risk: Notes to consolidated financial statements **Key changes:** - Updated: "Nonaccrual loans and other credit quality indicatorsThe following table provides information on nonaccrual and geographic region as a credit quality indicator for retained auto and other consumer loans.(in millions)December 31, 2025December 31, 2024Nonaccrual loans(a)(b)$243 $249 Geographic region(c)California$9,926 $10,321 Texas7,940 7,772 Florida5,382 5,428 New York4,771 4,905 Illinois2,804 2,890 New Jersey2,347 2,468 Pennsylvania2,066 2,012 Georgia1,682 1,716 Arizona1,583 1,643 North Carolina1,578 1,597 All other25,131 26,069 Total retained loans$65,210 $66,821 (a)Generally, all consumer nonaccrual loans have an allowance." - Updated: "If the value of the underlying collateral improves subsequent to charge down, the related allowance may be negative.(b)Interest income on nonaccrual loans recognized on a cash basis was not material for the years ended December 31, 2025 and 2024.(c)The geographic regions presented in this table are ordered based on the magnitude of the corresponding loan balances at December 31, 2025.Loan modifications The Firm grants certain modifications of auto and other loans to borrowers experiencing financial difficulty.For the years ended December 31, 2025, 2024 and 2023 retained auto and other FDMs were not material.As of December 31, 2025 and 2024, there were no additional unfunded commitments to lend to borrowers experiencing financial difficulty whose loans have been modified as FDMs." - Updated: "If the value of the underlying collateral improves subsequent to charge down, the related allowance may be negative.(b)Interest income on nonaccrual loans recognized on a cash basis was not material for the years ended December 31, 2025 and 2024.(c)The geographic regions presented in this table are ordered based on the magnitude of the corresponding loan balances at December 31, 2025." - Updated: "(in millions)December 31, 2025December 31, 2024Nonaccrual loans(a)(b)$243 $249 Geographic region(c)California$9,926 $10,321 Texas7,940 7,772 Florida5,382 5,428 New York4,771 4,905 Illinois2,804 2,890 New Jersey2,347 2,468 Pennsylvania2,066 2,012 Georgia1,682 1,716 Arizona1,583 1,643 North Carolina1,578 1,597 All other25,131 26,069 Total retained loans$65,210 $66,821 (in millions)" **Prior (2025):** Nonaccrual loans and other credit quality indicatorsThe following table provides information on nonaccrual and geographic region as a credit quality indicator for retained auto and other consumer loans.(in millions)Total Auto and otherDecember 31, 2024December 31, 2023Nonaccrual loans(a)(b)$249 $177 Geographic region(c)California$10,321 $10,959 Texas7,772 8,502 Florida5,428 5,684 New York4,905 4,938 Illinois2,890 3,147 New Jersey2,468 2,609 Pennsylvania2,012 1,900 Georgia1,716 1,912 Arizona1,643 1,779 North Carolina1,597 1,714 All other26,069 27,722 Total retained loans$66,821 $70,866 (a)Generally, all consumer nonaccrual loans have an allowance. In accordance with regulatory guidance, certain nonaccrual loans that are considered collateral-dependent have been charged down to the lower of amortized cost or the fair value of their underlying collateral less costs to sell. If the value of the underlying collateral improves subsequent to charge down, the related allowance may be negative.(b)Interest income on nonaccrual loans recognized on a cash basis was not material for the years ended December 31, 2024 and 2023.(c)The geographic regions presented in this table are ordered based on the magnitude of the corresponding loan balances at December 31, 2024.Loan modifications The Firm grants certain modifications of auto and other loans to borrowers experiencing financial difficulty.For the years ended December 31, 2024 and 2023, retained auto and other FDMs were not material. As of December 31, 2024 and 2023, there were no additional commitments to lend to borrowers modified as FDMs.For periods ending prior to January 1, 2023, modifications of auto and other loans where the Firm granted concessions to borrowers who were experiencing financial difficulty were generally accounted for and reported as TDRs. Loans with short-term or other insignificant modifications that were not considered concessions were not TDRs. For the year ended December 31, 2022, auto and other TDRs were not material. Nonaccrual loans and other credit quality indicatorsThe following table provides information on nonaccrual and geographic region as a credit quality indicator for retained auto and other consumer loans.(in millions)Total Auto and otherDecember 31, 2024December 31, 2023Nonaccrual loans(a)(b)$249 $177 Geographic region(c)California$10,321 $10,959 Texas7,772 8,502 Florida5,428 5,684 New York4,905 4,938 Illinois2,890 3,147 New Jersey2,468 2,609 Pennsylvania2,012 1,900 Georgia1,716 1,912 Arizona1,643 1,779 North Carolina1,597 1,714 All other26,069 27,722 Total retained loans$66,821 $70,866 (a)Generally, all consumer nonaccrual loans have an allowance. In accordance with regulatory guidance, certain nonaccrual loans that are considered collateral-dependent have been charged down to the lower of amortized cost or the fair value of their underlying collateral less costs to sell. If the value of the underlying collateral improves subsequent to charge down, the related allowance may be negative.(b)Interest income on nonaccrual loans recognized on a cash basis was not material for the years ended December 31, 2024 and 2023.(c)The geographic regions presented in this table are ordered based on the magnitude of the corresponding loan balances at December 31, 2024. Nonaccrual loans and other credit quality indicators The following table provides information on nonaccrual and geographic region as a credit quality indicator for retained auto and other consumer loans. (in millions)Total Auto and otherDecember 31, 2024December 31, 2023Nonaccrual loans(a)(b)$249 $177 Geographic region(c)California$10,321 $10,959 Texas7,772 8,502 Florida5,428 5,684 New York4,905 4,938 Illinois2,890 3,147 New Jersey2,468 2,609 Pennsylvania2,012 1,900 Georgia1,716 1,912 Arizona1,643 1,779 North Carolina1,597 1,714 All other26,069 27,722 Total retained loans$66,821 $70,866 **Current (2026):** Nonaccrual loans and other credit quality indicatorsThe following table provides information on nonaccrual and geographic region as a credit quality indicator for retained auto and other consumer loans.(in millions)December 31, 2025December 31, 2024Nonaccrual loans(a)(b)$243 $249 Geographic region(c)California$9,926 $10,321 Texas7,940 7,772 Florida5,382 5,428 New York4,771 4,905 Illinois2,804 2,890 New Jersey2,347 2,468 Pennsylvania2,066 2,012 Georgia1,682 1,716 Arizona1,583 1,643 North Carolina1,578 1,597 All other25,131 26,069 Total retained loans$65,210 $66,821 (a)Generally, all consumer nonaccrual loans have an allowance. In accordance with regulatory guidance, certain nonaccrual loans that are considered collateral-dependent have been charged down to the lower of amortized cost or the fair value of their underlying collateral less costs to sell. If the value of the underlying collateral improves subsequent to charge down, the related allowance may be negative.(b)Interest income on nonaccrual loans recognized on a cash basis was not material for the years ended December 31, 2025 and 2024.(c)The geographic regions presented in this table are ordered based on the magnitude of the corresponding loan balances at December 31, 2025.Loan modifications The Firm grants certain modifications of auto and other loans to borrowers experiencing financial difficulty.For the years ended December 31, 2025, 2024 and 2023 retained auto and other FDMs were not material.As of December 31, 2025 and 2024, there were no additional unfunded commitments to lend to borrowers experiencing financial difficulty whose loans have been modified as FDMs. Nonaccrual loans and other credit quality indicatorsThe following table provides information on nonaccrual and geographic region as a credit quality indicator for retained auto and other consumer loans.(in millions)December 31, 2025December 31, 2024Nonaccrual loans(a)(b)$243 $249 Geographic region(c)California$9,926 $10,321 Texas7,940 7,772 Florida5,382 5,428 New York4,771 4,905 Illinois2,804 2,890 New Jersey2,347 2,468 Pennsylvania2,066 2,012 Georgia1,682 1,716 Arizona1,583 1,643 North Carolina1,578 1,597 All other25,131 26,069 Total retained loans$65,210 $66,821 (a)Generally, all consumer nonaccrual loans have an allowance. In accordance with regulatory guidance, certain nonaccrual loans that are considered collateral-dependent have been charged down to the lower of amortized cost or the fair value of their underlying collateral less costs to sell. If the value of the underlying collateral improves subsequent to charge down, the related allowance may be negative.(b)Interest income on nonaccrual loans recognized on a cash basis was not material for the years ended December 31, 2025 and 2024.(c)The geographic regions presented in this table are ordered based on the magnitude of the corresponding loan balances at December 31, 2025. Nonaccrual loans and other credit quality indicators The following table provides information on nonaccrual and geographic region as a credit quality indicator for retained auto and other consumer loans. (in millions)December 31, 2025December 31, 2024Nonaccrual loans(a)(b)$243 $249 Geographic region(c)California$9,926 $10,321 Texas7,940 7,772 Florida5,382 5,428 New York4,771 4,905 Illinois2,804 2,890 New Jersey2,347 2,468 Pennsylvania2,066 2,012 Georgia1,682 1,716 Arizona1,583 1,643 North Carolina1,578 1,597 All other25,131 26,069 Total retained loans$65,210 $66,821 (in millions) --- ## Modified Risk: Standardized/Advanced Tier 1 capital at December 31, 2025 **Key changes:** - Updated: "Standardized Tier 2 capital at December 31, 2024 Change in long-term debt and other instruments qualifying as Tier 2(c) Change in qualifying allowance for credit losses(b) Other Change in Standardized Tier 2 capital" **Prior (2025):** Standardized/Advanced Tier 1 capital at December 31, 2023 Change in CET1 capital(b) Net redemptions of noncumulative perpetual preferred stock Standardized Tier 2 capital at December 31, 2023 Change in long-term debt and other instruments qualifying as Tier 2 Change in qualifying allowance for credit losses(b) Other Change in Standardized Tier 2 capital Advanced Tier 2 capital at December 31, 2023 Change in long-term debt and other instruments qualifying as Tier 2 Change in qualifying allowance for credit losses(b)(c) Other Change in Advanced Tier 2 capital (a)Includes foreign currency translation adjustments and the impact of related derivatives. (b)Includes the impact of the CECL capital transition provisions and the cumulative effect of changes in accounting principles. Refer to Note 1 for additional information on changes in accounting principles and Note 27 for additional information on the CECL capital transition provisions. (c)As of December 31, 2024 and 2023, included an incremental $541 million and $655 million allowance for credit losses, respectively, on certain assets associated with First Republic to which the Standardized approach has been applied, as permitted by the transition provisions in the U.S. capital rules. JPMorgan Chase & Co./2024 Form 10-K103 JPMorgan Chase & Co./2024 Form 10-K103 JPMorgan Chase & Co./2024 Form 10-K103 JPMorgan Chase & Co./2024 Form 10-K 103 **Current (2026):** Standardized Tier 2 capital at December 31, 2024 Change in long-term debt and other instruments qualifying as Tier 2(c) Change in qualifying allowance for credit losses(b) Other Change in Standardized Tier 2 capital --- ## Modified Risk: Risk-based capital metrics:(a) **Key changes:** - Updated: "CET1 capital Tier 1 capital Total capital (d) (d) Risk-weighted assets(b) (d) (d) CET1 capital ratio(c) Tier 1 capital ratio(c) Total capital ratio(c) December 31, 2024(in millions, except ratios)StandardizedAdvancedJPMorgan Chase & Co.JPMorgan Chase Bank, N.A.JPMorgan Chase & Co.JPMorgan Chase Bank, N.A.Risk-based capital metrics:(a)CET1 capital$275,513 $275,732 $275,513 $275,732 Tier 1 capital294,881 275,737 294,881 275,737 Total capital325,589 296,041 311,898 (d)282,328 (d)Risk-weighted assets1,757,460 1,718,777 1,740,429 (d)1,594,072 (b)CET1 capital ratio15.7 %16.0 %15.8 %17.3 %Tier 1 capital ratio16.8 16.0 16.9 17.3 Total capital ratio18.5 17.2 17.9 17.7 JPMorgan Chase & Co." **Prior (2025):** CET1 capital Tier 1 capital Total capital December 31, 2023(in millions, except ratios)Basel III StandardizedBasel III AdvancedJPMorgan Chase & Co.JPMorgan Chase Bank, N.A.JPMorgan Chase & Co.JPMorgan Chase Bank, N.A.Risk-based capital metrics: (a)CET1 capital$250,585 $262,030 $250,585 $262,030 Tier 1 capital277,306 262,032 277,306 262,032 Total capital308,497 281,308 295,417 (b)268,392 (b)Risk-weighted assets1,671,995 1,621,789 1,669,156 (b)1,526,952 (b)CET1 capital ratio15.0 %16.2 %15.0 %17.2 %Tier 1 capital ratio16.6 16.2 16.6 17.2 Total capital ratio18.5 17.3 17.7 17.6 JPMorgan Chase & Co. JPMorgan Chase Bank, N.A. JPMorgan Chase & Co. JPMorgan Chase Bank, N.A. **Current (2026):** CET1 capital Tier 1 capital Total capital (d) (d) Risk-weighted assets(b) (d) (d) CET1 capital ratio(c) Tier 1 capital ratio(c) Total capital ratio(c) December 31, 2024(in millions, except ratios)StandardizedAdvancedJPMorgan Chase & Co.JPMorgan Chase Bank, N.A.JPMorgan Chase & Co.JPMorgan Chase Bank, N.A.Risk-based capital metrics:(a)CET1 capital$275,513 $275,732 $275,513 $275,732 Tier 1 capital294,881 275,737 294,881 275,737 Total capital325,589 296,041 311,898 (d)282,328 (d)Risk-weighted assets1,757,460 1,718,777 1,740,429 (d)1,594,072 (b)CET1 capital ratio15.7 %16.0 %15.8 %17.3 %Tier 1 capital ratio16.8 16.0 16.9 17.3 Total capital ratio18.5 17.2 17.9 17.7 JPMorgan Chase & Co. JPMorgan Chase Bank, N.A. JPMorgan Chase & Co. JPMorgan Chase Bank, N.A. --- ## Modified Risk: Current estimated LTV ratios(e)(f)(g) **Key changes:** - Updated: "Greater than 100% but less than or equal to 125% and refreshed FICO scores: Greater than 80% but less than or equal to 100% and refreshed FICO scores: Less than or equal to 80% and refreshed FICO scores: No FICO/LTV available(h) Weighted-average LTV ratio(e)(i) Weighted-average FICO(f)(i)" **Prior (2025):** No FICO/LTV available(h) Weighted-average LTV ratio(e)(i) Weighted-average FICO(f)(i) **Current (2026):** Greater than 100% but less than or equal to 125% and refreshed FICO scores: Greater than 80% but less than or equal to 100% and refreshed FICO scores: Less than or equal to 80% and refreshed FICO scores: No FICO/LTV available(h) Weighted-average LTV ratio(e)(i) Weighted-average FICO(f)(i) --- ## Modified Risk: Year ended December 31, 2025 **Key changes:** - Updated: "(in millions, except ratios) Amortized cost basis % of loan modifications to total retained credit card loans Financial effect of loan modifications Term extension and interest rate reduction(a)(b) Term extension with a reduction in the weighted average contractual interest rate from 22.88% to 3.48% Other(b)(c) Reduced weighted-average contractual interest rate from 22.75% to 8.09% Total Loan modificationsYear ended December 31, 2024(in millions, except ratios)Amortized cost basis% of loan modifications to total retained credit card loansFinancial effect of loan modificationsTerm extension and interest rate reduction(a)(b)$926 0.40 %Term extension with a reduction in the weighted average contractual interest rate from 23.64% to 3.20% Total$926 Year ended December 31, 2024 (in millions, except ratios) % of loan modifications to total retained credit card loans Term extension and interest rate reduction(a)(b) Term extension with a reduction in the weighted average contractual interest rate from 23.64% to 3.20% 248JPMorgan Chase & Co./2025 Form 10-K 248JPMorgan Chase & Co./2025 Form 10-K 248JPMorgan Chase & Co./2025 Form 10-K 248 JPMorgan Chase & Co./2025 Form 10-K Loan modificationsYear ended December 31, 2023(in millions, except ratios)Amortized cost basis% of loan modifications to total retained credit card loansFinancial effect of loan modificationsTerm extension and interest rate reduction(a)(b)$648 0.31 %Term extension with a reduction in the weighted average contractual interest rate from 23.19% to 3.64%Total$648 Year ended December 31, 2023 (in millions, except ratios) % of loan modifications to total retained credit card loans Term extension and interest rate reduction(a)(b) Term extension with a reduction in the weighted average contractual interest rate from 23.19% to 3.64% (a)Term extension includes credit card loans whose terms have been modified under long-term programs by placing the customer's credit card account on a fixed payment plan." - Updated: "(c)Primarily interest rate reduction." - Updated: "Payment status of FDMsThe following table provides information on the payment status of retained credit card FDMs during the years ended December 31, 2025, 2024 and 2023.Amortized cost basisYear ended December 31,(in millions)202520242023Current and less than 30 days past due and still accruing$1,801 $811 $558 30-89 days past due and still accruing179 74 59 90 or more days past due and still accruing104 41 31 Total $2,084 $926 $648 Defaults of FDMsDuring the year ended December 31, 2025, defaults of retained credit card FDMs that had been modified within twelve months were $111 million." **Prior (2025):** Term extension with a reduction in the weighted average contractual interest rate from 23.19% to 3.64% (a)Term extension includes credit card loans whose terms have been modified under long-term programs by placing the customer's credit card account on a fixed payment plan. (b)The interest rates represent weighted average at the time of modification. 256JPMorgan Chase & Co./2024 Form 10-K 256JPMorgan Chase & Co./2024 Form 10-K 256JPMorgan Chase & Co./2024 Form 10-K 256 JPMorgan Chase & Co./2024 Form 10-K Payment status of FDMsThe following table provides information on the payment status of retained credit card FDMs during the years ended December 31, 2024 and 2023.Amortized cost basisYear ended December 31,(in millions)20242023Current and less than 30 days past due and still accruing$811 $558 30-89 days past due and still accruing74 59 90 or more days past due and still accruing41 31 Total $926 $648 Defaults of FDMsRetained credit card FDMs that defaulted during the year ended December 31, 2024 and that were reported as FDMs in the twelve months prior to the default were not material. Retained credit card FDMs that defaulted during the year ended December 31, 2023 and that were reported as FDMs on or after January 1, 2023, the date that the Firm adopted the changes to the TDR accounting guidance were not material. Refer to Note 1 for further information.For credit card loans modified as FDMs, payment default is deemed to have occurred when the borrower misses two consecutive contractual payments. Defaulted modified credit card loans remain in the modification program and continue to be charged off in accordance with the Firm's standard charge-off policy.Financial effects of TDRs and defaults For periods ending prior to January 1, 2023, modifications of credit card loans where the Firm granted concessions to borrowers who were experiencing financial difficulty were generally accounted for and reported as TDRs. The Firm granted concessions for most of the credit card loans under long-term programs. These concessions involved placing the customer's credit card account on a fixed payment plan, generally for 60 months, and typically included reducing the interest rate on the credit card account. Substantially all modifications under the Firm's long-term programs were considered to be TDRs. Loans with short-term or other insignificant modifications that were not considered concessions were not reported as TDRs.The following table provides information about the financial effects of the concessions granted on credit card loans modified in TDRs and defaults for the periods presented. For the period disclosed, new enrollments were less than 1% of total retained credit card loans. Year ended December 31,(in millions, except weighted-average data)2022Balance of new TDRs(a)$418 Weighted-average interest rate of loans - before TDR 19.86 %Weighted-average interest rate of loans - after TDR4.13 Balance of loans that defaulted within one year of modification(b)$34 (a)Represents the outstanding balance prior to modification.(b)Represents loans modified in TDRs that experienced a payment default in the periods presented, and for which the payment default occurred within one year of the modification. The amounts presented represent the balance of such loans as of the end of the quarter in which they defaulted.For credit card loans modified in TDRs, payment default was deemed to have occurred when the borrower missed two consecutive contractual payments. Defaulted modified credit card loans remained in the modification program and continued to be charged of in accordance with the Firm's standard charge-off policy. Payment status of FDMsThe following table provides information on the payment status of retained credit card FDMs during the years ended December 31, 2024 and 2023.Amortized cost basisYear ended December 31,(in millions)20242023Current and less than 30 days past due and still accruing$811 $558 30-89 days past due and still accruing74 59 90 or more days past due and still accruing41 31 Total $926 $648 Defaults of FDMsRetained credit card FDMs that defaulted during the year ended December 31, 2024 and that were reported as FDMs in the twelve months prior to the default were not material. Retained credit card FDMs that defaulted during the year ended December 31, 2023 and that were reported as FDMs on or after January 1, 2023, the date that the Firm adopted the changes to the TDR accounting guidance were not material. Refer to Note 1 for further information.For credit card loans modified as FDMs, payment default is deemed to have occurred when the borrower misses two consecutive contractual payments. Defaulted modified credit card loans remain in the modification program and continue to be charged off in accordance with the Firm's standard charge-off policy. Payment status of FDMs The following table provides information on the payment status of retained credit card FDMs during the years ended December 31, 2024 and 2023. Amortized cost basisYear ended December 31,(in millions)20242023Current and less than 30 days past due and still accruing$811 $558 30-89 days past due and still accruing74 59 90 or more days past due and still accruing41 31 Total $926 $648 Amortized cost basis Year ended December 31, (in millions) Defaults of FDMs Retained credit card FDMs that defaulted during the year ended December 31, 2024 and that were reported as FDMs in the twelve months prior to the default were not material. Retained credit card FDMs that defaulted during the year ended December 31, 2023 and that were reported as FDMs on or after January 1, 2023, the date that the Firm adopted the changes to the TDR accounting guidance were not material. Refer to Note 1 for further information. For credit card loans modified as FDMs, payment default is deemed to have occurred when the borrower misses two consecutive contractual payments. Defaulted modified credit card loans remain in the modification program and continue to be charged off in accordance with the Firm's standard charge-off policy. Financial effects of TDRs and defaults For periods ending prior to January 1, 2023, modifications of credit card loans where the Firm granted concessions to borrowers who were experiencing financial difficulty were generally accounted for and reported as TDRs. The Firm granted concessions for most of the credit card loans under long-term programs. These concessions involved placing the customer's credit card account on a fixed payment plan, generally for 60 months, and typically included reducing the interest rate on the credit card account. Substantially all modifications under the Firm's long-term programs were considered to be TDRs. Loans with short-term or other insignificant modifications that were not considered concessions were not reported as TDRs.The following table provides information about the financial effects of the concessions granted on credit card loans modified in TDRs and defaults for the periods presented. For the period disclosed, new enrollments were less than 1% of total retained credit card loans. Year ended December 31,(in millions, except weighted-average data)2022Balance of new TDRs(a)$418 Weighted-average interest rate of loans - before TDR 19.86 %Weighted-average interest rate of loans - after TDR4.13 Balance of loans that defaulted within one year of modification(b)$34 (a)Represents the outstanding balance prior to modification.(b)Represents loans modified in TDRs that experienced a payment default in the periods presented, and for which the payment default occurred within one year of the modification. The amounts presented represent the balance of such loans as of the end of the quarter in which they defaulted.For credit card loans modified in TDRs, payment default was deemed to have occurred when the borrower missed two consecutive contractual payments. Defaulted modified credit card loans remained in the modification program and continued to be charged of in accordance with the Firm's standard charge-off policy. Financial effects of TDRs and defaults For periods ending prior to January 1, 2023, modifications of credit card loans where the Firm granted concessions to borrowers who were experiencing financial difficulty were generally accounted for and reported as TDRs. The Firm granted concessions for most of the credit card loans under long-term programs. These concessions involved placing the customer's credit card account on a fixed payment plan, generally for 60 months, and typically included reducing the interest rate on the credit card account. Substantially all modifications under the Firm's long-term programs were considered to be TDRs. Loans with short-term or other insignificant modifications that were not considered concessions were not reported as TDRs. The following table provides information about the financial effects of the concessions granted on credit card loans modified in TDRs and defaults for the periods presented. For the period disclosed, new enrollments were less than 1% of total retained credit card loans. Year ended December 31,(in millions, except weighted-average data)2022Balance of new TDRs(a)$418 Weighted-average interest rate of loans - before TDR 19.86 %Weighted-average interest rate of loans - after TDR4.13 Balance of loans that defaulted within one year of modification(b)$34 2022 Balance of new TDRs(a) Weighted-average interest rate of loans - after TDR Balance of loans that defaulted within one year of modification(b) (a)Represents the outstanding balance prior to modification. (b)Represents loans modified in TDRs that experienced a payment default in the periods presented, and for which the payment default occurred within one year of the modification. The amounts presented represent the balance of such loans as of the end of the quarter in which they defaulted. For credit card loans modified in TDRs, payment default was deemed to have occurred when the borrower missed two consecutive contractual payments. Defaulted modified credit card loans remained in the modification program and continued to be charged of in accordance with the Firm's standard charge-off policy. JPMorgan Chase & Co./2024 Form 10-K257 JPMorgan Chase & Co./2024 Form 10-K257 JPMorgan Chase & Co./2024 Form 10-K257 JPMorgan Chase & Co./2024 Form 10-K 257 **Current (2026):** (in millions, except ratios) Amortized cost basis % of loan modifications to total retained credit card loans Financial effect of loan modifications Term extension and interest rate reduction(a)(b) Term extension with a reduction in the weighted average contractual interest rate from 22.88% to 3.48% Other(b)(c) Reduced weighted-average contractual interest rate from 22.75% to 8.09% Total Loan modificationsYear ended December 31, 2024(in millions, except ratios)Amortized cost basis% of loan modifications to total retained credit card loansFinancial effect of loan modificationsTerm extension and interest rate reduction(a)(b)$926 0.40 %Term extension with a reduction in the weighted average contractual interest rate from 23.64% to 3.20% Total$926 Year ended December 31, 2024 (in millions, except ratios) % of loan modifications to total retained credit card loans Term extension and interest rate reduction(a)(b) Term extension with a reduction in the weighted average contractual interest rate from 23.64% to 3.20% 248JPMorgan Chase & Co./2025 Form 10-K 248JPMorgan Chase & Co./2025 Form 10-K 248JPMorgan Chase & Co./2025 Form 10-K 248 JPMorgan Chase & Co./2025 Form 10-K Loan modificationsYear ended December 31, 2023(in millions, except ratios)Amortized cost basis% of loan modifications to total retained credit card loansFinancial effect of loan modificationsTerm extension and interest rate reduction(a)(b)$648 0.31 %Term extension with a reduction in the weighted average contractual interest rate from 23.19% to 3.64%Total$648 Year ended December 31, 2023 (in millions, except ratios) % of loan modifications to total retained credit card loans Term extension and interest rate reduction(a)(b) Term extension with a reduction in the weighted average contractual interest rate from 23.19% to 3.64% (a)Term extension includes credit card loans whose terms have been modified under long-term programs by placing the customer's credit card account on a fixed payment plan. (b)The interest rates represent weighted average at the time of modification. (c)Primarily interest rate reduction. Payment status of FDMsThe following table provides information on the payment status of retained credit card FDMs during the years ended December 31, 2025, 2024 and 2023.Amortized cost basisYear ended December 31,(in millions)202520242023Current and less than 30 days past due and still accruing$1,801 $811 $558 30-89 days past due and still accruing179 74 59 90 or more days past due and still accruing104 41 31 Total $2,084 $926 $648 Defaults of FDMsDuring the year ended December 31, 2025, defaults of retained credit card FDMs that had been modified within twelve months were $111 million. During the years ended December 31, 2024 and 2023, defaults of retained credit card FDMs that had been modified within twelve months were not material. For credit card loans modified as FDMs, payment default is deemed to have occurred when the borrower misses two consecutive contractual payments. Defaulted modified credit card loans remain in the modification program and continue to be charged off in accordance with the Firm's standard charge-off policy. Payment status of FDMsThe following table provides information on the payment status of retained credit card FDMs during the years ended December 31, 2025, 2024 and 2023.Amortized cost basisYear ended December 31,(in millions)202520242023Current and less than 30 days past due and still accruing$1,801 $811 $558 30-89 days past due and still accruing179 74 59 90 or more days past due and still accruing104 41 31 Total $2,084 $926 $648 Defaults of FDMsDuring the year ended December 31, 2025, defaults of retained credit card FDMs that had been modified within twelve months were $111 million. During the years ended December 31, 2024 and 2023, defaults of retained credit card FDMs that had been modified within twelve months were not material. For credit card loans modified as FDMs, payment default is deemed to have occurred when the borrower misses two consecutive contractual payments. Defaulted modified credit card loans remain in the modification program and continue to be charged off in accordance with the Firm's standard charge-off policy. Payment status of FDMs The following table provides information on the payment status of retained credit card FDMs during the years ended December 31, 2025, 2024 and 2023. Amortized cost basisYear ended December 31,(in millions)202520242023Current and less than 30 days past due and still accruing$1,801 $811 $558 30-89 days past due and still accruing179 74 59 90 or more days past due and still accruing104 41 31 Total $2,084 $926 $648 Amortized cost basis Year ended December 31, (in millions) Defaults of FDMs During the year ended December 31, 2025, defaults of retained credit card FDMs that had been modified within twelve months were $111 million. During the years ended December 31, 2024 and 2023, defaults of retained credit card FDMs that had been modified within twelve months were not material. For credit card loans modified as FDMs, payment default is deemed to have occurred when the borrower misses two consecutive contractual payments. Defaulted modified credit card loans remain in the modification program and continue to be charged off in accordance with the Firm's standard charge-off policy. JPMorgan Chase & Co./2025 Form 10-K249 JPMorgan Chase & Co./2025 Form 10-K249 JPMorgan Chase & Co./2025 Form 10-K249 JPMorgan Chase & Co./2025 Form 10-K 249 --- ## Modified Risk: Competition in the financial services industry could lead to negative effects on JPMorganChase's results of operations. **Key changes:** - Updated: "JPMorganChase operates in a highly competitive environment in which it must constantly adapt to changes in financial regulation, technological advances and economic conditions." - Updated: "These advances have also allowed financial institutions and other companies to provide electronic and internet-based financial solutions, including: •lending and other extensions of credit to consumers •payments processing •cryptocurrency, including stablecoins •tokenized securities, and •online automated algorithmic-based investment advice." - Updated: "Any of these impacts could, in turn, reduce JPMorganChase's revenues." **Prior (2025):** JPMorganChase operates in a highly competitive environment in which it must evolve and adapt to changes in financial regulation, technological advances, increased public scrutiny and changes in economic conditions. JPMorganChase expects that competition in the U.S. and global financial services industry will continue to be intense. Competitors include: •other banks and financial institutions •trading, advisory and investment management firms •finance companies •technology companies, and •other non-bank firms that are engaged in providing similar as well as new products and services. JPMorganChase cannot provide assurance that the significant competition in the financial services industry will not materially and adversely affect its future results of operations. For example, aggressive or less disciplined lending practices by non-bank competitors could lead to a loss of market share for traditional banks, and in an economic downturn could result in instability in the financial services industry and adversely impact other market participants, including JPMorganChase.New competitors in the financial services industry continue to emerge. For example, technological advances and the growth of e-commerce have made it possible for non-depository institutions to offer products and services that traditionally were banking products. These advances have also allowed financial institutions and other companies to provide electronic and internet-based financial solutions, including electronic securities and cryptocurrency trading, lending and other extensions of credit to consumers, payments processing and online automated algorithmic-based investment advice. Furthermore, both financial institutions and their non-banking competitors face the risk that payments processing and other products and services, including deposits and other traditional banking products, could be significantly disrupted by the use of new technologies, such as cryptocurrencies and other applications using secure distributed ledgers, that may not require intermediation. New technologies have required and could require JPMorganChase to spend more to modify or adapt its products to attract and retain clients and customers or to match products and services offered by its competitors, including technology companies. In addition, new technologies may be used by customers, or breached or infiltrated by third parties, in unexpected ways, which can increase JPMorganChase's costs for complying with laws, rules and regulations that apply to the offering of products and services through those technologies and reduce the income that JPMorganChase earns from providing products and services through those technologies.Ongoing or increased competition may put pressure on the pricing for JPMorganChase's products and services or may cause JPMorganChase to lose market share, particularly with respect to traditional banking products. This competition may be based on quality and variety of products and services offered, transaction execution, innovation, reputation and price. The failure of any of JPMorganChase's businesses to meet the expectations of clients and customers, whether due to general market conditions, under-performance, a decision not to offer a particular product or service, changes in client and customer expectations or other factors, could affect JPMorganChase's ability to attract or retain clients and customers. Any such impact could, in turn, reduce JPMorganChase cannot provide assurance that the significant competition in the financial services industry will not materially and adversely affect its future results of operations. For example, aggressive or less disciplined lending practices by non-bank competitors could lead to a loss of market share for traditional banks, and in an economic downturn could result in instability in the financial services industry and adversely impact other market participants, including JPMorganChase. New competitors in the financial services industry continue to emerge. For example, technological advances and the growth of e-commerce have made it possible for non-depository institutions to offer products and services that traditionally were banking products. These advances have also allowed financial institutions and other companies to provide electronic and internet-based financial solutions, including electronic securities and cryptocurrency trading, lending and other extensions of credit to consumers, payments processing and online automated algorithmic-based investment advice. Furthermore, both financial institutions and their non-banking competitors face the risk that payments processing and other products and services, including deposits and other traditional banking products, could be significantly disrupted by the use of new technologies, such as cryptocurrencies and other applications using secure distributed ledgers, that may not require intermediation. New technologies have required and could require JPMorganChase to spend more to modify or adapt its products to attract and retain clients and customers or to match products and services offered by its competitors, including technology companies. In addition, new technologies may be used by customers, or breached or infiltrated by third parties, in unexpected ways, which can increase JPMorganChase's costs for complying with laws, rules and regulations that apply to the offering of products and services through those technologies and reduce the income that JPMorganChase earns from providing products and services through those technologies. Ongoing or increased competition may put pressure on the pricing for JPMorganChase's products and services or may cause JPMorganChase to lose market share, particularly with respect to traditional banking products. This competition may be based on quality and variety of products and services offered, transaction execution, innovation, reputation and price. The failure of any of JPMorganChase's businesses to meet the expectations of clients and customers, whether due to general market conditions, under-performance, a decision not to offer a particular product or service, changes in client and customer expectations or other factors, could affect JPMorganChase's ability to attract or retain clients and customers. Any such impact could, in turn, reduce 31 31 31 31 Part I Part I JPMorganChase's revenues. Increased competition also may require JPMorganChase to make additional capital investments in its businesses, or to extend more of its capital on behalf of its clients to remain competitive.The effects of climate change could adversely affect JPMorganChase's business and operations, both directly and as a result of impacts on its clients and customers.JPMorganChase operates in many regions, countries and communities around the world where its business, and the activities of its clients and customers, could be adversely affected by climate change. Climate change could manifest as a financial risk to JPMorganChase either through changes in the physical climate or from the process of transitioning to a lower-carbon economy. Both physical risks and transition risks associated with climate change could have negative impacts on the financial condition or creditworthiness of JPMorganChase's clients and customers, on JPMorganChase's exposure to affected companies and markets, and on the effectiveness of JPMorganChase's existing business strategy with respect to its operations, clients and customers.Physical risks include the increased frequency or severity of acute weather events, such as floods, wildfires and tropical cyclones, and chronic shifts in the climate, such as rising sea levels, persistent changes in precipitation levels, or increases in average ambient temperatures. Potential adverse impacts of climate-related physical risks to JPMorganChase, its clients or customers include:•declines in asset values, including due to the destruction or degradation of property•reduced availability or increased cost of insurance for clients of JPMorganChase•interruptions to business operations, including supply chain disruption, and•population migration or unemployment in affected regions.Transition risks arise from the financial and economic consequences of society's shift towards a lower-carbon economy, such as changes in public policy, adoption of new technologies or changes in consumer preferences towards low-carbon goods and services. These risks could also be influenced by changes in the physical climate. Potential adverse impacts of transition risks to JPMorganChase, its clients or customers include: •sudden devaluation of assets, including unanticipated write-downs ("stranded assets")•increased operational and compliance costs driven by changes in climate policy •increased energy costs driven by governmental actions and initiatives such as emission pricing and accelerated decarbonization policies•negative consequences to business models, and the need to make changes in response to those consequences, and•damage to JPMorganChase's reputation, including due to any perception that its business practices are contrary to public policy or the preferences of different stakeholders. Climate risks can also arise from inconsistencies and conflicts in the manner in which climate policy and financial regulations are implemented in the many regions where JPMorganChase operates, including initiatives to apply and enforce policy and regulation with extraterritorial effect. Additionally, internal models and estimations used in climate risk assessments have an increased level of uncertainty due to limited historical trend information and the absence of standardized, reliable and comprehensive greenhouse gas emissions data, which could lead to inaccurate disclosures or financial reporting. ConductConduct failure by JPMorganChase employees can harm clients and customers, impact market integrity, damage JPMorganChase's reputation and trigger litigation and regulatory action.JPMorganChase's employees interact with clients, customers, counterparties and other market and industry participants, and with each other, every day. All employees are expected to demonstrate values and exhibit the behaviors that are an integral part of JPMorganChase's Code of Conduct and Business Principles. JPMorganChase endeavors to embed conduct risk management throughout an employee's life cycle, including recruiting, onboarding, training and development, and performance management. Conduct risk management is also an integral component of JPMorganChase's promotion and compensation processes.Notwithstanding these expectations, policies and practices, certain employees have engaged in improper or illegal conduct in the past. These instances of misconduct have resulted in litigation, and resolutions of governmental investigations or enforcement actions involving consent orders, deferred prosecution agreements, non-prosecution agreements and other civil or criminal sanctions. There is no assurance that further inappropriate or unlawful actions by employees have not occurred or will not occur, lead to a violation of the terms of these resolutions (and associated consequences), or that any such actions will always be detected, deterred or prevented.JPMorganChase's reputation could be harmed by, and collateral consequences could result from, a failure by JPMorganChase's revenues. Increased competition also may require JPMorganChase to make additional capital investments in its businesses, or to extend more of its capital on behalf of its clients to remain competitive.The effects of climate change could adversely affect JPMorganChase's business and operations, both directly and as a result of impacts on its clients and customers.JPMorganChase operates in many regions, countries and communities around the world where its business, and the activities of its clients and customers, could be adversely affected by climate change. Climate change could manifest as a financial risk to JPMorganChase either through changes in the physical climate or from the process of transitioning to a lower-carbon economy. Both physical risks and transition risks associated with climate change could have negative impacts on the financial condition or creditworthiness of JPMorganChase's clients and customers, on JPMorganChase's exposure to affected companies and markets, and on the effectiveness of JPMorganChase's existing business strategy with respect to its operations, clients and customers.Physical risks include the increased frequency or severity of acute weather events, such as floods, wildfires and tropical cyclones, and chronic shifts in the climate, such as rising sea levels, persistent changes in precipitation levels, or increases in average ambient temperatures. Potential adverse impacts of climate-related physical risks to JPMorganChase, its clients or customers include:•declines in asset values, including due to the destruction or degradation of property•reduced availability or increased cost of insurance for clients of JPMorganChase•interruptions to business operations, including supply chain disruption, and•population migration or unemployment in affected regions.Transition risks arise from the financial and economic consequences of society's shift towards a lower-carbon economy, such as changes in public policy, adoption of new technologies or changes in consumer preferences towards low-carbon goods and services. These risks could also be influenced by changes in the physical climate. Potential adverse impacts of transition risks to JPMorganChase, its clients or customers include: •sudden devaluation of assets, including unanticipated write-downs ("stranded assets")•increased operational and compliance costs driven by changes in climate policy JPMorganChase's revenues. Increased competition also may require JPMorganChase to make additional capital investments in its businesses, or to extend more of its capital on behalf of its clients to remain competitive. **Current (2026):** JPMorganChase operates in a highly competitive environment in which it must constantly adapt to changes in financial regulation, technological advances and economic conditions. JPMorganChase expects that competition in the financial services industry will remain intense, with new competitors in the financial services industry continuing to emerge. For example, technological advances and the growth of e-commerce have made it possible for non-depository institutions to offer products and services that traditionally were banking products. These advances have also allowed financial institutions and other companies to provide electronic and internet-based financial solutions, including: •lending and other extensions of credit to consumers •payments processing •cryptocurrency, including stablecoins •tokenized securities, and •online automated algorithmic-based investment advice. Furthermore, both financial institutions and their non-banking competitors face the risk of disruption to payments processing and other products and services from the use of new technologies that may not require intermediation, such as tokenized securities or other products that leverage distributed ledger technology. New technologies have required and could require JPMorganChase to increase expenditures to modify its products to attract and retain clients and customers or to match products and services offered by its competitors, including technology companies. If JPMorganChase does not keep pace with rapidly changing technological advances, including the adoption of generative AI, it risks losing clients and market share to competitors, which could negatively impact revenues, operating costs and its competitive position. Competition could be intensified as the feasibility, capability and scalability of new technologies improves. In addition, new technologies (including generative AI) could be used by customers or bad actors in unexpected or disruptive ways, or could be breached or infiltrated by third parties, which could increase JPMorganChase's compliance expenses and reduce its income related to the offering of products and services through those technologies. Actions by competitors could put pressure on the pricing for JPMorganChase's products and services or could cause it to lose market share, particularly with respect to investment products and traditional banking products. In addition, advocacy by non-banking competitors for exemptions from regulatory requirements could significantly disadvantage traditional financial institutions. The failure of any of JPMorganChase's businesses to meet the expectations of clients and customers, whether due to general market conditions, under-performance, a decision not to offer a particular product or service, changes in client and customer expectations or other factors, could affect JPMorganChase's ability to attract or retain clients and customers. Any of these impacts could, in turn, reduce JPMorganChase's revenues. Increased competition also could require JPMorganChase to make additional capital investments in its businesses, or to extend more of its capital on behalf of its clients to remain competitive. Furthermore, regulatory uncertainty regarding new technologies, including inconsistent regulatory approaches within and across jurisdictions, could require JPMorganChase to modify or restrict its product and service offerings, incur higher operational or compliance costs or forgo business opportunities.JPMorganChase's operations, results, and competitive standing could be adversely affected by the development of advanced technologies such as AI.The rapid development and deployment of advanced technologies, including generative and agentic AI systems, present a range of risks to JPMorganChase's businesses and operations, including:•AI system failures, inappropriate use of AI systems, lack of transparency in AI systems, or inaccurate or biased output from AI systems resulting from rapid deployment, insufficient testing, erroneous data, ineffective model design or insufficient controls, which could disrupt operations, cause erroneous transactions, compromise data privacy, infringe on intellectual property, harm clients and customers, or impair JPMorganChase's ability to make sound business decisions•increased exposure to cyber attacks, system manipulation, or data loss if AI systems, particularly agentic systems, are not designed and implemented with appropriate safeguards to prevent systems from accessing sensitive data sources or system resources and taking actions•intensified AI-enabled cyber threats, which may allow malicious actors to exploit vulnerabilities, reverse-engineer security patches, and conduct sophisticated social engineering attacks, potentially resulting in unauthorized access to sensitive information and data breaches, especially if JPMorganChase fails to adequately maintain, secure and upgrade its technological infrastructure in response to rapidly evolving technological advances•regulatory and compliance challenges arising from rapidly evolving applicable law, including differences, inconsistencies and conflicts in international standards, which could increase costs, lead to fines and sanctions, and restrict JPMorganChase's use of AI technologies The failure of any of JPMorganChase's businesses to meet the expectations of clients and customers, whether due to general market conditions, under-performance, a decision not to offer a particular product or service, changes in client and customer expectations or other factors, could affect JPMorganChase's ability to attract or retain clients and customers. Any of these impacts could, in turn, reduce JPMorganChase's revenues. Increased competition also could require JPMorganChase to make additional capital investments in its businesses, or to extend more of its capital on behalf of its clients to remain competitive. Furthermore, regulatory uncertainty regarding new technologies, including inconsistent regulatory approaches within and across jurisdictions, could require JPMorganChase to modify or restrict its product and service offerings, incur higher operational or compliance costs or forgo business opportunities. --- ## Modified Risk: Significant accounting policies **Key changes:** - Updated: "Fair value measurementNote 2page 174Fair value optionNote 3page 196Derivative instrumentsNote 5page 202Noninterest revenue and noninterest expenseNote 6page 218Interest income and interest expenseNote 7page 222Pension and other postretirement employee benefit plansNote 8page 223Employee share-based incentivesNote 9page 226Investment securitiesNote 10page 228Securities financing activitiesNote 11page 233LoansNote 12page 236Allowance for credit lossesNote 13page 258Variable interest entitiesNote 14page 263Goodwill, mortgage servicing rights, and other intangible assetsNote 15page 272Premises and equipmentNote 16page 277LeasesNote 18page 278Accounts payable and other liabilitiesNote 19page 280Long-term debtNote 20page 281Earnings per shareNote 23page 286Income taxesNote 25page 288Off-balance sheet lending-related financial instruments, guarantees, and other commitmentsNote 28page 295LitigationNote 30page 302 Interest income and interest expense Accounts payable and other liabilities Off-balance sheet lending-related financial instruments, guarantees, and other commitments JPMorgan Chase & Co./2025 Form 10-K173 JPMorgan Chase & Co./2025 Form 10-K173 JPMorgan Chase & Co./2025 Form 10-K173 JPMorgan Chase & Co./2025 Form 10-K 173" **Prior (2025):** The following table identifies JPMorganChase's other significant accounting policies and the Note and page where a detailed description of each policy can be found. Fair value measurementNote 2page 181Fair value optionNote 3page 203Derivative instrumentsNote 5page 209Noninterest revenue and noninterest expenseNote 6page 225Interest income and Interest expenseNote 7page 229Pension and other postretirement employee benefit plansNote 8page 230Employee share-based incentivesNote 9page 233Investment securitiesNote 10page 235Securities financing activitiesNote 11page 240LoansNote 12page 243Allowance for credit lossesNote 13page 266Variable interest entitiesNote 14page 271Goodwill, mortgage servicing rights, and other intangible assetsNote 15page 280Premises and equipmentNote 16page 285LeasesNote 18page 286Accounts payable & other liabilitiesNote 19page 288Long-term debtNote 20page 289Earnings per shareNote 23page 294Income taxesNote 25page 296Off-balance sheet lending-related financial instruments, guarantees and other commitmentsNote 28page 302LitigationNote 30page 309 180JPMorgan Chase & Co./2024 Form 10-K 180JPMorgan Chase & Co./2024 Form 10-K 180JPMorgan Chase & Co./2024 Form 10-K 180 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** The following table identifies JPMorganChase's other significant accounting policies and the Note and page where a detailed description of each policy can be found. Fair value measurementNote 2page 174Fair value optionNote 3page 196Derivative instrumentsNote 5page 202Noninterest revenue and noninterest expenseNote 6page 218Interest income and interest expenseNote 7page 222Pension and other postretirement employee benefit plansNote 8page 223Employee share-based incentivesNote 9page 226Investment securitiesNote 10page 228Securities financing activitiesNote 11page 233LoansNote 12page 236Allowance for credit lossesNote 13page 258Variable interest entitiesNote 14page 263Goodwill, mortgage servicing rights, and other intangible assetsNote 15page 272Premises and equipmentNote 16page 277LeasesNote 18page 278Accounts payable and other liabilitiesNote 19page 280Long-term debtNote 20page 281Earnings per shareNote 23page 286Income taxesNote 25page 288Off-balance sheet lending-related financial instruments, guarantees, and other commitmentsNote 28page 295LitigationNote 30page 302 Interest income and interest expense Accounts payable and other liabilities Off-balance sheet lending-related financial instruments, guarantees, and other commitments JPMorgan Chase & Co./2025 Form 10-K173 JPMorgan Chase & Co./2025 Form 10-K173 JPMorgan Chase & Co./2025 Form 10-K173 JPMorgan Chase & Co./2025 Form 10-K 173 --- ## Modified Risk: Differences in the supervision and regulation of financial services firms could require JPMorganChase to modify its operations and incur higher operational and compliance costs. **Key changes:** - Updated: "Various factors could influence the scope of applicable law and supervision for a firm that provides financial services, such as the size of the firm, the businesses in which it engages and its jurisdiction of organization." **Prior (2025):** The content and application of laws, rules and regulations affecting financial services firms can vary according to factors such as the size of the firm, the jurisdiction in which it is organized or operates, and other criteria. For example: •larger firms such as JPMorganChase are often subject to more stringent supervision, regulation and regulatory scrutiny •financial technology companies and other non-traditional competitors may not be subject to banking regulation, or may be supervised by a national or state regulatory agency that does not have the same resources or regulatory priorities as the regulatory agencies that supervise more diversified financial services firms, or •the financial services regulatory and supervisory framework in a particular jurisdiction may favor financial institutions that are based in that jurisdiction. These types of differences in the regulatory and supervisory framework can result in JPMorganChase losing market share to competitors that are less regulated or not subject to regulation, especially with respect to unregulated financial products. There can also be significant differences in the ways that similar regulatory initiatives affecting the financial services industry are implemented in the U.S. and in other countries and regions in which JPMorganChase does business. For example, when adopting rules that are intended to implement a global regulatory or supervisory standard, a national regulator may introduce additional or more restrictive requirements, which can create competitive disadvantages for financial services firms, such as JPMorganChase, that may be subject to those enhanced regulations. In addition, certain national and multi-national bodies and governmental agencies outside the U.S. have adopted laws, rules or regulations that may conflict with or prohibit JPMorganChase from complying with laws, rules and regulations to which it is otherwise subject, creating conflict of law issues that also increase its risk of non-compliance in those jurisdictions. Legislative and regulatory initiatives outside the U.S. have required and could in the future require JPMorganChase to make significant modifications to its operations and legal entity structure in the relevant countries or regions in order to comply with those requirements. These include laws, rules and regulations that have been adopted or proposed, as well as regulatory expectations, relating to: •the establishment of locally-based intermediate holding companies or operating subsidiaries•requirements to maintain minimum amounts of capital or liquidity in locally-based subsidiaries•the implementation of processes within locally-based subsidiaries to comply with local regulatory requirements or expectations•the separation (or "ring fencing") of core banking products and services from markets activities•requirements for the orderly resolution of financial institutions•requirements for executing or settling transactions on exchanges or through central counterparties ("CCPs"), or for depositing funds with other financial institutions or clearing and settlement systems•position limits and reporting rules for derivatives•governance and accountability regimes•conduct of business and control requirements, and•restrictions on compensation.These types of differences, inconsistencies and conflicts in financial services regulation have required and could in the future require JPMorganChase to:•divest assets or restructure its operations•maintain higher levels of capital and liquidity, or absorb increased capital and liquidity costs •incur higher operational and compliance costs •change the prices that it charges for its products and services •curtail the products and services that it offers to its customers and clients•curtail other business opportunities, including acquisitions or principal investments, that it otherwise would have pursued•become subject to regulatory fines, penalties or other sanctions, or•incur higher costs for complying with different legal and regulatory frameworks. Any or all of these factors could harm JPMorganChase's ability to compete against other firms that are not subject to the same laws, rules and regulations or supervisory oversight, or harm JPMorganChase's businesses, results of operations and profitability.Resolving regulatory investigations can subject JPMorganChase to significant penalties and collateral consequences, and could result in higher compliance costs or restrictions on its operations.JPMorganChase is subject to heightened oversight and scrutiny from regulatory authorities in many jurisdictions. JPMorganChase has paid significant fines, provided other monetary relief, incurred other •the establishment of locally-based intermediate holding companies or operating subsidiaries •requirements to maintain minimum amounts of capital or liquidity in locally-based subsidiaries •the implementation of processes within locally-based subsidiaries to comply with local regulatory requirements or expectations •the separation (or "ring fencing") of core banking products and services from markets activities •requirements for the orderly resolution of financial institutions •requirements for executing or settling transactions on exchanges or through central counterparties ("CCPs"), or for depositing funds with other financial institutions or clearing and settlement systems •position limits and reporting rules for derivatives •governance and accountability regimes •conduct of business and control requirements, and •restrictions on compensation. These types of differences, inconsistencies and conflicts in financial services regulation have required and could in the future require JPMorganChase to: •divest assets or restructure its operations •maintain higher levels of capital and liquidity, or absorb increased capital and liquidity costs •incur higher operational and compliance costs •change the prices that it charges for its products and services •curtail the products and services that it offers to its customers and clients •curtail other business opportunities, including acquisitions or principal investments, that it otherwise would have pursued •become subject to regulatory fines, penalties or other sanctions, or •incur higher costs for complying with different legal and regulatory frameworks. Any or all of these factors could harm JPMorganChase's ability to compete against other firms that are not subject to the same laws, rules and regulations or supervisory oversight, or harm JPMorganChase's businesses, results of operations and profitability. **Current (2026):** Various factors could influence the scope of applicable law and supervision for a firm that provides financial services, such as the size of the firm, the businesses in which it engages and its jurisdiction of organization. For example: •larger firms such as JPMorganChase often face more stringent supervision and regulation •certain competitors, such as financial technology companies, may not be subject to banking regulation, or may be subject to less stringent oversight, or •the regulatory and supervisory framework in a particular jurisdiction may favor locally-based firms. A highly-regulated financial services firm such as JPMorganChase can be vulnerable to competition from firms that are less regulated or unregulated. In addition, differences in regulatory implementation between the U.S. and other countries could adversely affect JPMorganChase's businesses. For example, a national financial services regulator may impose requirements 10 10 10 10 that are stricter than a global standard, which could create competitive disadvantages for those firms, such as JPMorganChase, that are subject to the enhanced regulations. Furthermore, certain authorities outside the U.S. have adopted applicable law that could conflict with or prohibit JPMorganChase from complying with applicable law in other jurisdictions, which could create conflict of law issues and could increase risks associated with non-compliance.Regulatory initiatives outside the U.S. have required and could in the future require JPMorganChase to significantly modify its operations or legal entity structure in the places in which those initiatives are implemented, such as requirements for: •establishing locally-based intermediate holding companies or operating subsidiaries•maintaining minimum amounts of capital or liquidity in locally-based subsidiaries•implementing processes within locally-based subsidiaries for complying with applicable law•separating (or "ring fencing") core banking products and services from markets activities•the orderly resolution of financial institutions•executing or settling transactions on exchanges or through central counterparties ("CCPs"), or depositing funds with other financial institutions or clearing and settlement systems, and•governance, control, conduct of business and compensation standards.Differences, inconsistencies and conflicts in applicable law related to financial services have required and could in the future require JPMorganChase to:•divest assets or restructure its operations•maintain higher levels of capital and liquidity•incur higher operational, compliance, capital and liquidity costs•become subject to penalties•limit the products and services that it offers, or change the prices that it charges for those products and services, or•forgo business opportunities, including acquisitions or principal investments, that it otherwise would have pursued.JPMorganChase faces significant legal risks from civil and governmental proceedings, including litigation, investigations and enforcement actions.JPMorganChase is named as a defendant or is otherwise involved in many civil and governmental legal proceedings, including class actions, derivative actions and other litigation or disputes with third parties, as well as investigations and enforcement actions by U.S. and non-U.S. governmental authorities, including criminal proceedings. Actions currently pending against JPMorganChase could result in judgments, settlements or penalties adverse to JPMorganChase, and any such resolution of legal proceedings could materially and adversely affect JPMorganChase's business, financial condition or results of operations, or cause serious reputational harm. In addition, the extent of JPMorganChase's exposure to legal matters is unpredictable and could, in some cases, exceed the amount of reserves that JPMorganChase has established for those matters.Resolving an investigation by a governmental authority could subject JPMorganChase to significant penalties and other repercussions.Governmental authorities conduct both routine and targeted examinations of JPMorganChase and its subsidiaries, and JPMorganChase's businesses and operations are subject to heightened regulatory oversight. This scrutiny, or the results of such an examination, could lead to legal proceedings, including investigations or enforcement actions by governmental authorities. Furthermore, a single event involving a potential violation of applicable law could give rise to numerous and overlapping proceedings, including by multiple governmental authorities in the U.S. as well as non-U.S. authorities. In addition, if another financial institution violates applicable law relating to a particular business activity or practice, this will often give rise to legal proceedings related to the same or similar activity or practice by JPMorganChase.JPMorganChase has in the past incurred significant penalties and experienced collateral consequences and other repercussions in connection with resolving investigations and enforcement actions by governmental authorities, and it could face similar investigations, actions and resolutions in the future. JPMorganChase typically incurs higher operational and compliance costs when addressing the requirements of such resolutions, including devoting substantial resources to remediation.In connection with resolving specific investigations or enforcement actions, certain governmental authorities have required JPMorganChase and other financial institutions to admit wrongdoing with respect to the activities that gave rise to the resolution. These types of admissions could lead to negative consequences such as:•disqualification from doing business with certain clients or customers, or in specific jurisdictions•greater exposure in litigation, and •reputational harm.Furthermore, government officials globally have increasingly brought criminal actions against financial institutions and required those institutions to plead guilty to criminal offenses in connection with resolving investigations or enforcement actions by governmental authorities. These resolutions could have significant that are stricter than a global standard, which could create competitive disadvantages for those firms, such as JPMorganChase, that are subject to the enhanced regulations. Furthermore, certain authorities outside the U.S. have adopted applicable law that could conflict with or prohibit JPMorganChase from complying with applicable law in other jurisdictions, which could create conflict of law issues and could increase risks associated with non-compliance.Regulatory initiatives outside the U.S. have required and could in the future require JPMorganChase to significantly modify its operations or legal entity structure in the places in which those initiatives are implemented, such as requirements for: •establishing locally-based intermediate holding companies or operating subsidiaries•maintaining minimum amounts of capital or liquidity in locally-based subsidiaries•implementing processes within locally-based subsidiaries for complying with applicable law•separating (or "ring fencing") core banking products and services from markets activities•the orderly resolution of financial institutions•executing or settling transactions on exchanges or through central counterparties ("CCPs"), or depositing funds with other financial institutions or clearing and settlement systems, and•governance, control, conduct of business and compensation standards.Differences, inconsistencies and conflicts in applicable law related to financial services have required and could in the future require JPMorganChase to:•divest assets or restructure its operations•maintain higher levels of capital and liquidity•incur higher operational, compliance, capital and liquidity costs•become subject to penalties•limit the products and services that it offers, or change the prices that it charges for those products and services, or•forgo business opportunities, including acquisitions or principal investments, that it otherwise would have pursued.JPMorganChase faces significant legal risks from civil and governmental proceedings, including litigation, investigations and enforcement actions.JPMorganChase is named as a defendant or is otherwise involved in many civil and governmental legal proceedings, including class actions, derivative actions and other litigation or disputes with third parties, as well as investigations and enforcement actions by U.S. and non-U.S. governmental authorities, including criminal proceedings. Actions currently that are stricter than a global standard, which could create competitive disadvantages for those firms, such as JPMorganChase, that are subject to the enhanced regulations. Furthermore, certain authorities outside the U.S. have adopted applicable law that could conflict with or prohibit JPMorganChase from complying with applicable law in other jurisdictions, which could create conflict of law issues and could increase risks associated with non-compliance. Regulatory initiatives outside the U.S. have required and could in the future require JPMorganChase to significantly modify its operations or legal entity structure in the places in which those initiatives are implemented, such as requirements for: •establishing locally-based intermediate holding companies or operating subsidiaries •maintaining minimum amounts of capital or liquidity in locally-based subsidiaries •implementing processes within locally-based subsidiaries for complying with applicable law •separating (or "ring fencing") core banking products and services from markets activities •the orderly resolution of financial institutions •executing or settling transactions on exchanges or through central counterparties ("CCPs"), or depositing funds with other financial institutions or clearing and settlement systems, and •governance, control, conduct of business and compensation standards. Differences, inconsistencies and conflicts in applicable law related to financial services have required and could in the future require JPMorganChase to: •divest assets or restructure its operations •maintain higher levels of capital and liquidity •incur higher operational, compliance, capital and liquidity costs •become subject to penalties •limit the products and services that it offers, or change the prices that it charges for those products and services, or •forgo business opportunities, including acquisitions or principal investments, that it otherwise would have pursued. --- ## Modified Risk: Selected impacts of investment securities on the Consolidated statements of income **Key changes:** - Updated: "Year ended December 31, (in millions)202520242023Realized gains$674 $593 $622 Realized losses(731)(1,614)(3,802)Investment securities losses$(57)$(1,021)$(3,180)Provision for credit losses$(28)$24 $38 Year ended December 31, (in millions) JPMorgan Chase & Co./2025 Form 10-K231 JPMorgan Chase & Co./2025 Form 10-K231 JPMorgan Chase & Co./2025 Form 10-K231 JPMorgan Chase & Co./2025 Form 10-K 231" **Prior (2025):** Year ended December 31, (in millions)202420232022Realized gains$593 $622 $198 Realized losses(1,614)(3,802)(2,578)Investment securities losses$(1,021)$(3,180)$(2,380)Provision for credit losses$24 $38 $54 Year ended December 31, (in millions) 238JPMorgan Chase & Co./2024 Form 10-K 238JPMorgan Chase & Co./2024 Form 10-K 238JPMorgan Chase & Co./2024 Form 10-K 238 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** Year ended December 31, (in millions)202520242023Realized gains$674 $593 $622 Realized losses(731)(1,614)(3,802)Investment securities losses$(57)$(1,021)$(3,180)Provision for credit losses$(28)$24 $38 Year ended December 31, (in millions) JPMorgan Chase & Co./2025 Form 10-K231 JPMorgan Chase & Co./2025 Form 10-K231 JPMorgan Chase & Co./2025 Form 10-K231 JPMorgan Chase & Co./2025 Form 10-K 231 --- ## Modified Risk: As of or for the year ended December 31, 2025 **Key changes:** - Updated: "(in millions, except ratios) As of or for the year ended December 31, 2024 (in millions, except ratios)Term loans by origination yearRevolving loans20242023202220212020Prior to 2020Within the revolving periodConverted to term loansTotalLoan delinquencyCurrent$26,165 $15,953 $9,201 $7,014 $2,895 $624 $3,714 $148 $65,714 30-119 days past due190 283 259 179 53 23 40 34 1,061 120 or more days past due1 1 - 5 6 - 3 30 46 Total retained loans$26,356 $16,237 $9,460 $7,198 $2,954 $647 $3,757 $212 $66,821 % of 30+ days past due to total retained loans0.72 %1.75 %2.74 %2.50 %1.76 %3.55 %1.14 %30.19 %1.64 %Gross charge-offs$269 $348 $224 $126 $37 $82 $1 $6 $1,093 As of or for the year ended December 31, 2024 (in millions, except ratios) JPMorgan Chase & Co./2025 Form 10-K245 JPMorgan Chase & Co./2025 Form 10-K245 JPMorgan Chase & Co./2025 Form 10-K245 JPMorgan Chase & Co./2025 Form 10-K 245" **Prior (2025):** Delinquency is the primary credit quality indicator for retained auto and other loans. The following tables provide information on delinquency and gross charge-offs. December 31, 2024(in millions, except ratios)Term loans by origination yearRevolving loans20242023202220212020Prior to 2020Within the revolving periodConverted to term loansTotalLoan delinquencyCurrent$26,165 $15,953 $9,201 $7,014 $2,895 $624 $3,714 $148 $65,714 30-119 days past due190 283 259 179 53 23 40 34 1,061 120 or more days past due1 1 - 5 6 - 3 30 46 Total retained loans$26,356 $16,237 $9,460 $7,198 $2,954 $647 $3,757 $212 $66,821 % of 30+ days past due to total retained loans0.72 %1.75 %2.74 2.50 %1.76 %3.55 %1.14 %30.19 %1.64 %Gross charge-offs$269 $348 $224 $126 $37 $82 $1 $6 $1,093 December 31, 2023(in millions, except ratios)Term loans by origination yearRevolving loans20232022202120202019Prior to 2019Within the revolving periodConverted to term loansTotalLoan delinquencyCurrent$30,328 $14,797 $12,825 $6,538 $1,777 $511 $2,984 $102 $69,862 30-119 days past due276 279 231 78 43 17 19 24 967 120 or more days past due1 1 7 8 - - 3 17 37 Total retained loans$30,605 $15,077 $13,063 $6,624 $1,820 $528 $3,006 $143 $70,866 % of 30+ days past due to total retained loans0.91 %1.86 %1.75 %1.15 %2.36 %3.22 %0.73 %28.67 %1.39 %Gross charge-offs$333 $297 $161 $53 $35 $64 $ - $4 $947 JPMorgan Chase & Co./2024 Form 10-K253 JPMorgan Chase & Co./2024 Form 10-K253 JPMorgan Chase & Co./2024 Form 10-K253 JPMorgan Chase & Co./2024 Form 10-K 253 **Current (2026):** (in millions, except ratios) As of or for the year ended December 31, 2024 (in millions, except ratios)Term loans by origination yearRevolving loans20242023202220212020Prior to 2020Within the revolving periodConverted to term loansTotalLoan delinquencyCurrent$26,165 $15,953 $9,201 $7,014 $2,895 $624 $3,714 $148 $65,714 30-119 days past due190 283 259 179 53 23 40 34 1,061 120 or more days past due1 1 - 5 6 - 3 30 46 Total retained loans$26,356 $16,237 $9,460 $7,198 $2,954 $647 $3,757 $212 $66,821 % of 30+ days past due to total retained loans0.72 %1.75 %2.74 %2.50 %1.76 %3.55 %1.14 %30.19 %1.64 %Gross charge-offs$269 $348 $224 $126 $37 $82 $1 $6 $1,093 As of or for the year ended December 31, 2024 (in millions, except ratios) JPMorgan Chase & Co./2025 Form 10-K245 JPMorgan Chase & Co./2025 Form 10-K245 JPMorgan Chase & Co./2025 Form 10-K245 JPMorgan Chase & Co./2025 Form 10-K 245 --- ## Modified Risk: Management's discussion and analysis **Key changes:** - Updated: "Allowance for credit losses and related information20252024Year ended December 31,Consumer, excluding credit cardCredit cardWholesaleTotalConsumer, excluding credit cardCredit cardWholesaleTotal(in millions, except ratios)Allowance for loan lossesBeginning balance at January 1,$1,807 $14,600 $7,938 $24,345 $1,856 $12,450 $8,114 $22,420 Gross charge-offs1,089 9,164 1,787 12,040 1,299 8,198 1,022 10,519 Gross recoveries collected(510)(1,492)(189)(2,191)(625)(1,056)(200)(1,881)Net charge-offs579 7,672 1,598 9,849 674 7,142 822 8,638 Provision for loan losses692 8,629 1,943 11,264 624 9,292 578 10,494 Other - - 5 5 1 - 68 69 Ending balance at December 31,$1,920 $15,557 $8,288 $25,765 $1,807 $14,600 $7,938 $24,345 Allowance for lending-related commitmentsBeginning balance at January 1,$82 $ - $2,019 $2,101 $75 $ - $1,899 $1,974 Provision for lending-related commitments1 2,200 (d)768 2,969 7 - 121 128 Other - - 1 1 - - (1)(1)Ending balance at December 31,$83 $2,200 $2,788 $5,071 $82 $ - $2,019 $2,101 Impairment methodologyAsset-specific(a)$(647)$ - $707 $60 $(728)$ - $526 $(202)Portfolio-based2,567 15,557 7,581 25,705 2,535 14,600 7,412 24,547 Total allowance for loan losses$1,920 $15,557 $8,288 $25,765 $1,807 $14,600 $7,938 $24,345 Impairment methodologyAsset-specific$ - $ - $119 $119 $ - $ - $109 $109 Portfolio-based83 2,200 (d)2,669 4,952 82 - 1,910 1,992 Total allowance for lending-related commitments$83 $2,200 $2,788 $5,071 $82 $ - $2,019 $2,101 Total allowance for investment securitiesNANANA$106 NANANA$152 Total allowance for credit losses(b)$2,003 $17,757 $11,076 $30,942 $1,889 $14,600 $9,957 $26,598 Memo:Retained loans, end of period$368,741 $247,797 $792,367 $1,408,905 $376,334 $232,860 $690,396$1,299,590Retained loans, average371,238 231,644 732,793 1,335,675 384,001 214,033 673,3101,271,344Credit ratiosAllowance for loan losses to retained loans0.52 %6.28 %1.05 %1.83 %0.48 %6.27 %1.15 %1.87 %Allowance for loan losses to retained nonaccrual loans(c)50 NA188 311 56 NA201 339 Allowance for loan losses to retained nonaccrual loans excluding credit card50 NA188 123 56 NA201 136 Net charge-off rates0.16 3.31 0.22 0.74 0.18 3.34 0.12 0.68 (d) Asset-specific(a) (d)" **Prior (2025):** Allowance for credit losses and related information20242023Year ended December 31,Consumer, excluding credit cardCredit cardWholesaleTotalConsumer, excluding credit cardCredit cardWholesaleTotal(in millions, except ratios)Allowance for loan lossesBeginning balance at January 1,$1,856 $12,450 $8,114 $22,420 $2,040 $11,200 $6,486 $19,726 Cumulative effect of a change in accounting principle(a)NANANANA(489)(100)2(587)Gross charge-offs1,299 8,198 1,022 10,519 1,151 5,491 1,011 7,653 Gross recoveries collected(625)(1,056)(200)(1,881)(519)(793)(132)(1,444)Net charge-offs674 7,142 822 8,638 632 4,698 879 6,209 Provision for loan losses624 9,292 578 10,494 936 6,048 2,484 9,468 Other1 - 68 69 1 - 21 22 Ending balance at December 31,$1,807 $14,600 $7,938 $24,345 $1,856 $12,450 $8,114 $22,420 Allowance for lending-related commitmentsBeginning balance at January 1,$75 $ - $1,899 $1,974 $76 $ - $2,306 $2,382 Provision for lending-related commitments7 - 121 128 (1) - (407)(408)Other - - (1)(1) - - - - Ending balance at December 31,$82 $ - $2,019 $2,101 $75 $ - $1,899 $1,974 Impairment methodologyAsset-specific(b)$(728)$ - $526 $(202)$(876)$ - $392 $(484)Portfolio-based2,535 14,600 7,412 24,547 2,732 12,450 7,722 22,904 Total allowance for loan losses$1,807 $14,600 $7,938 $24,345 $1,856 $12,450 $8,114 $22,420 Impairment methodologyAsset-specific$ - $ - $109 $109 $ - $ - $89 $89 Portfolio-based82 - 1,910 1,992 75 - 1,810 1,885 Total allowance for lending-related commitments$82 $ - $2,019 $2,101 $75 $ - $1,899 $1,974 Total allowance for investment securitiesNANANA$152 NANANA$128 Total allowance for credit losses(c)$1,889 $14,600 $9,957 $26,598 $1,931 $12,450 $10,013 $24,522 Memo:Retained loans, end of period$376,334 $232,860 $690,396 $1,299,590 $397,275 $211,123 $672,472$1,280,870Retained loans, average384,001 214,033 673,310 1,271,344 364,061 191,412 646,8751,202,348Credit ratiosAllowance for loan losses to retained loans0.48 %6.27 %1.15 %1.87 %0.47 %5.90 %1.21 %1.75 %Allowance for loan losses to retained nonaccrual loans(d)56 NA201 339 51 NA346 374 Allowance for loan losses to retained nonaccrual loans excluding credit card56 NA201 136 51 NA346 166 Net charge-off rates0.183.340.120.680.17 2.45 0.14 0.52 Cumulative effect of a change in accounting principle(a) Asset-specific(b) **Current (2026):** Allowance for credit losses and related information20252024Year ended December 31,Consumer, excluding credit cardCredit cardWholesaleTotalConsumer, excluding credit cardCredit cardWholesaleTotal(in millions, except ratios)Allowance for loan lossesBeginning balance at January 1,$1,807 $14,600 $7,938 $24,345 $1,856 $12,450 $8,114 $22,420 Gross charge-offs1,089 9,164 1,787 12,040 1,299 8,198 1,022 10,519 Gross recoveries collected(510)(1,492)(189)(2,191)(625)(1,056)(200)(1,881)Net charge-offs579 7,672 1,598 9,849 674 7,142 822 8,638 Provision for loan losses692 8,629 1,943 11,264 624 9,292 578 10,494 Other - - 5 5 1 - 68 69 Ending balance at December 31,$1,920 $15,557 $8,288 $25,765 $1,807 $14,600 $7,938 $24,345 Allowance for lending-related commitmentsBeginning balance at January 1,$82 $ - $2,019 $2,101 $75 $ - $1,899 $1,974 Provision for lending-related commitments1 2,200 (d)768 2,969 7 - 121 128 Other - - 1 1 - - (1)(1)Ending balance at December 31,$83 $2,200 $2,788 $5,071 $82 $ - $2,019 $2,101 Impairment methodologyAsset-specific(a)$(647)$ - $707 $60 $(728)$ - $526 $(202)Portfolio-based2,567 15,557 7,581 25,705 2,535 14,600 7,412 24,547 Total allowance for loan losses$1,920 $15,557 $8,288 $25,765 $1,807 $14,600 $7,938 $24,345 Impairment methodologyAsset-specific$ - $ - $119 $119 $ - $ - $109 $109 Portfolio-based83 2,200 (d)2,669 4,952 82 - 1,910 1,992 Total allowance for lending-related commitments$83 $2,200 $2,788 $5,071 $82 $ - $2,019 $2,101 Total allowance for investment securitiesNANANA$106 NANANA$152 Total allowance for credit losses(b)$2,003 $17,757 $11,076 $30,942 $1,889 $14,600 $9,957 $26,598 Memo:Retained loans, end of period$368,741 $247,797 $792,367 $1,408,905 $376,334 $232,860 $690,396$1,299,590Retained loans, average371,238 231,644 732,793 1,335,675 384,001 214,033 673,3101,271,344Credit ratiosAllowance for loan losses to retained loans0.52 %6.28 %1.05 %1.83 %0.48 %6.27 %1.15 %1.87 %Allowance for loan losses to retained nonaccrual loans(c)50 NA188 311 56 NA201 339 Allowance for loan losses to retained nonaccrual loans excluding credit card50 NA188 123 56 NA201 136 Net charge-off rates0.16 3.31 0.22 0.74 0.18 3.34 0.12 0.68 (d) Asset-specific(a) (d) --- ## Modified Risk: Tax benefits **Key changes:** - Updated: "Income tax benefits (including tax benefits from dividends or dividend equivalents) related to share-based incentive arrangements recognized in the Firm's Consolidated statements of income for the years ended December 31, 2025, 2024 and 2023, were $1.4 billion, $1.0 billion and $836 million, respectively." **Prior (2025):** Income tax benefits (including tax benefits from dividends or dividend equivalents) related to share-based incentive arrangements recognized in the Firm's Consolidated statements of income for the years ended December 31, 2024, 2023 and 2022, were $1.0 billion, $836 million and $901 million, respectively. 234JPMorgan Chase & Co./2024 Form 10-K 234JPMorgan Chase & Co./2024 Form 10-K 234JPMorgan Chase & Co./2024 Form 10-K 234 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** Income tax benefits (including tax benefits from dividends or dividend equivalents) related to share-based incentive arrangements recognized in the Firm's Consolidated statements of income for the years ended December 31, 2025, 2024 and 2023, were $1.4 billion, $1.0 billion and $836 million, respectively. JPMorgan Chase & Co./2025 Form 10-K227 JPMorgan Chase & Co./2025 Form 10-K227 JPMorgan Chase & Co./2025 Form 10-K227 JPMorgan Chase & Co./2025 Form 10-K 227 --- ## Modified Risk: Consolidated statements of comprehensive income **Key changes:** - Updated: "Year ended December 31, (in millions)202520242023Net income$57,048 $58,471 $49,552 Other comprehensive income/(loss), after-taxUnrealized gains/(losses) on investment securities3,569 (87)5,381 Translation adjustments, net of hedges1,339 (858)329 Fair value hedges64 (87)(101)Cash flow hedges3,388 (882)1,724 Defined benefit pension and OPEB plans579 (63)373 DVA on fair value option elected liabilities(773)(36)(808)Total other comprehensive income/(loss), after-tax8,166 (2,013)6,898 Comprehensive income$65,214 $56,458 $56,450 Unrealized gains/(losses) on investment securities" **Prior (2025):** Year ended December 31, (in millions)202420232022Net income$58,471 $49,552 $37,676 Other comprehensive income/(loss), after-taxUnrealized gains/(losses) on investment securities(87)5,381 (11,764)Translation adjustments, net of hedges(858)329 (611)Fair value hedges(87)(101)98 Cash flow hedges(882)1,724 (5,360)Defined benefit pension and OPEB plans(63)373 (1,241)DVA on fair value option elected liabilities(36)(808)1,621 Total other comprehensive income/(loss), after-tax(2,013)6,898 (17,257)Comprehensive income$56,458 $56,450 $20,419 The Notes to Consolidated Financial Statements are an integral part of these statements. JPMorgan Chase & Co./2024 Form 10-K173 JPMorgan Chase & Co./2024 Form 10-K173 JPMorgan Chase & Co./2024 Form 10-K173 JPMorgan Chase & Co./2024 Form 10-K 173 **Current (2026):** Year ended December 31, (in millions)202520242023Net income$57,048 $58,471 $49,552 Other comprehensive income/(loss), after-taxUnrealized gains/(losses) on investment securities3,569 (87)5,381 Translation adjustments, net of hedges1,339 (858)329 Fair value hedges64 (87)(101)Cash flow hedges3,388 (882)1,724 Defined benefit pension and OPEB plans579 (63)373 DVA on fair value option elected liabilities(773)(36)(808)Total other comprehensive income/(loss), after-tax8,166 (2,013)6,898 Comprehensive income$65,214 $56,458 $56,450 Unrealized gains/(losses) on investment securities --- ## Modified Risk: Total lending-related commitments **Key changes:** - Updated: "(b)At December 31, 2025, 2024 and 2023, in addition to the allowance for credit losses in the table above, the Firm also had an allowance for credit losses of $288 million, $268 million and $243 million, respectively, associated with certain accounts receivable in CIB." - Updated: "(e)At December 31, 2025, 2024 and 2023, lending-related commitments excluded $19.2 billion, $19.2 billion and $17.2 billion, respectively, for the consumer, excluding credit card portfolio segment; $1.2 trillion, $1.0 trillion and $915.7 billion, respectively, for the credit card portfolio segment; and $40.0 billion, $20.5 billion and $19.7 billion, respectively, for the wholesale portfolio segment, which were not subject to the allowance for lending-related commitments." **Prior (2025):** (a)Represents the impact to the allowance for loan losses upon the adoption of the Financial Instruments - Credit Losses: Troubled Debt Restructurings accounting guidance. Refer to Note 1 for further information. (b)At December 31, 2024 and 2023 and 2022, in addition to the allowance for credit losses in the table above, the Firm also had an allowance for credit losses of $268 million, $243 million and $21 million, respectively, associated with certain accounts receivable in CIB. (c)Includes collateral-dependent loans, including those for which foreclosure is deemed probable, and nonaccrual risk-rated loans. (d)The allowance for lending-related commitments is reported in accounts payable and other liabilities on the Consolidated balance sheets. (e)At December 31, 2024, 2023 and 2022, lending-related commitments excluded $19.2 billion, $17.2 billion and $13.1 billion, respectively, for the consumer, excluding credit card portfolio segment; $1.0 trillion, $915.7 billion and $821.3 billion, respectively, for the credit card portfolio segment; and $20.5 billion, $19.7 billion and $9.8 billion, respectively, for the wholesale portfolio segment, which were not subject to the allowance for lending-related commitments. 268JPMorgan Chase & Co./2024 Form 10-K 268JPMorgan Chase & Co./2024 Form 10-K 268JPMorgan Chase & Co./2024 Form 10-K 268 JPMorgan Chase & Co./2024 Form 10-K (table continued from previous page)20232022Consumer,excluding credit cardCredit cardWholesaleTotalConsumer,excluding credit cardCredit cardWholesaleTotal$2,040 $11,200 $6,486 $19,726 $1,765 $10,250 $4,371 $16,386 (489)(100)2 (587)NANANANA1,151 5,491 1,011 7,653 812 3,192 322 4,326 (519)(793)(132)(1,444)(543)(789)(141)(1,473)632 4,698 879 6,209 269 2,403 181 2,853 936 6,048 2,484 9,468 543 3,353 2,293 6,189 1 - 21 22 1 - 3 4 $1,856 $12,450 $8,114 $22,420 $2,040 $11,200 $6,486 $19,726 $76 $ - $2,306 $2,382 $113 $ - $2,148 $2,261 (1) - (407)(408)(37) - 157 120 - - - - - - 1 1 $75 $ - $1,899 $1,974 $76 $ - $2,306 $2,382 NANANA$128NANANA$96 $1,931 $12,450 $10,013 $24,522 $2,116 $11,200 $8,792 $22,204 $(876)$ - $392 $(484)$(624)$223 $467 $66 2,732 12,450 7,722 22,904 2,664 10,977 6,019 19,660 $1,856 $12,450 $8,114 $22,420 $2,040 $11,200 $6,486 $19,726 $3,287 $ - $2,338 $5,625 $11,978 $796 $2,189 $14,963 393,988 211,123 670,134 1,275,245 288,775 184,379 601,481 1,074,635 $397,275 $211,123 $672,472 $1,280,870 $300,753 $185,175 $603,670 $1,089,598 $6 $ - $180 $186 $(33)$ - $16 $(17)3,216 - 1,012 4,228 3,585 - 464 4,049 $ - $ - $89 $89 $ - $ - $90 $90 75 - 1,810 1,885 76 - 2,216 2,292 $75 $ - $1,899 $1,974 $76 $ - $2,306 $2,382 $ - $ - $464 $464 $ - $ - $455 $455 28,248 - 516,577 544,825 20,423 - 461,688 482,111 $28,248 $ - $517,041 $545,289 $20,423 $ - $462,143 $482,566 JPMorgan Chase & Co./2024 Form 10-K269 JPMorgan Chase & Co./2024 Form 10-K269 JPMorgan Chase & Co./2024 Form 10-K269 JPMorgan Chase & Co./2024 Form 10-K 269 **Current (2026):** (a)Represents the impact to the allowance for loan losses upon the adoption of the Financial Instruments - Credit Losses: Troubled Debt Restructurings accounting guidance. Refer to Note 1 for further information. (b)At December 31, 2025, 2024 and 2023, in addition to the allowance for credit losses in the table above, the Firm also had an allowance for credit losses of $288 million, $268 million and $243 million, respectively, associated with certain accounts receivable in CIB. (c)Includes collateral-dependent loans, including those for which foreclosure is deemed probable, and nonaccrual risk-rated loans. (d)The allowance for lending-related commitments is reported in accounts payable and other liabilities on the Consolidated balance sheets. (e)At December 31, 2025, 2024 and 2023, lending-related commitments excluded $19.2 billion, $19.2 billion and $17.2 billion, respectively, for the consumer, excluding credit card portfolio segment; $1.2 trillion, $1.0 trillion and $915.7 billion, respectively, for the credit card portfolio segment; and $40.0 billion, $20.5 billion and $19.7 billion, respectively, for the wholesale portfolio segment, which were not subject to the allowance for lending-related commitments. (f)Represents the impact of the Apple Card transaction. (g)Includes estimated drawn loans related to the Apple Card transaction at the time that the transaction is expected to close of approximately $23 billion. 260JPMorgan Chase & Co./2025 Form 10-K 260JPMorgan Chase & Co./2025 Form 10-K 260JPMorgan Chase & Co./2025 Form 10-K 260 JPMorgan Chase & Co./2025 Form 10-K (table continued from previous page)20242023Consumer,excluding credit cardCredit cardWholesaleTotalConsumer,excluding credit cardCredit cardWholesaleTotal$1,856 $12,450 $8,114 $22,420 $2,040 $11,200 $6,486 $19,726 NANANANA(489)(100)2 (587)1,299 8,198 1,022 10,519 1,151 5,491 1,011 7,653 (625)(1,056)(200)(1,881)(519)(793)(132)(1,444)674 7,142 822 8,638 632 4,698 879 6,209 624 9,292 578 10,494 936 6,048 2,484 9,468 1 - 68 69 1 - 21 22 $1,807 $14,600 $7,938 $24,345 $1,856 $12,450 $8,114 $22,420 $75 $ - $1,899 $1,974 $76 $ - $2,306 $2,382 7 - 121 128 (1) - (407)(408) - - (1)(1) - - - - $82 $ - $2,019 $2,101 $75 $ - $1,899 $1,974 NANANA$152NANANA$128 $1,889 $14,600 $9,957 $26,598 $1,931 $12,450 $10,013 $24,522 $(728)$ - $526 $(202)$(876)$ - $392 $(484)2,535 14,600 7,412 24,547 2,732 12,450 7,722 22,904 $1,807 $14,600 $7,938 $24,345 $1,856 $12,450 $8,114 $22,420 $2,805 $ - $3,912 $6,717 $3,287 $ - $2,338 $5,625 373,529 232,860 686,484 1,292,873 393,988 211,123 670,134 1,275,245 $376,334 $232,860 $690,396 $1,299,590 $397,275 $211,123 $672,472 $1,280,870 $1 $ - $324 $325 $6 $ - $180 $186 2,696 - 1,834 4,530 3,216 - 1,012 4,228 $ - $ - $109 $109 $ - $ - $89 $89 82 - 1,910 1,992 75 - 1,810 1,885 $82 $ - $2,019 $2,101 $75 $ - $1,899 $1,974 $ - $ - $737 $737 $ - $ - $464 $464 25,608 19 510,254 535,881 28,248 - 516,577 544,825 $25,608 $19 $510,991 $536,618 $28,248 $ - $517,041 $545,289 JPMorgan Chase & Co./2025 Form 10-K261 JPMorgan Chase & Co./2025 Form 10-K261 JPMorgan Chase & Co./2025 Form 10-K261 JPMorgan Chase & Co./2025 Form 10-K 261 --- ## Modified Risk: Nonaccrual loans **Key changes:** - Updated: "December 31, (in millions)Secured by real estateCommercial and industrialOtherTotal retained loans20252024202520242025202420252024Nonaccrual loansWith an allowance$365 $366 $1,562 $1,362 $468 $555 $2,395 $2,283 Without an allowance(a)1,313 1,073 392 398 298 188 2,003 1,659 Total nonaccrual loans(b)$1,678 $1,439 $1,954 $1,760 $766 $743 $4,398 $3,942 Without an allowance(a)" **Prior (2025):** The following table provides information on retained wholesale nonaccrual loans. December 31, (in millions)Secured by real estateCommercial and industrialOtherTotal retained loans20242023202420232024202320242023Nonaccrual loansWith an allowance$366 $129 $1,362 $776 $555 $492 $2,283 $1,397 Without an allowance(a)1,073 272 398 445 188 232 1,659 949 Total nonaccrual loans(b)$1,439 $401 $1,760 $1,221 $743 $724 $3,942 $2,346 Without an allowance(a) **Current (2026):** The following table provides information on retained wholesale nonaccrual loans. December 31, (in millions)Secured by real estateCommercial and industrialOtherTotal retained loans20252024202520242025202420252024Nonaccrual loansWith an allowance$365 $366 $1,562 $1,362 $468 $555 $2,395 $2,283 Without an allowance(a)1,313 1,073 392 398 298 188 2,003 1,659 Total nonaccrual loans(b)$1,678 $1,439 $1,954 $1,760 $766 $743 $4,398 $3,942 Without an allowance(a) --- ## Modified Risk: Total client assets(a) **Key changes:** - Updated: "(b)In the first quarter of 2025, the Firm realigned certain client assets from Private Banking to Global Funds to reflect them in the client segment where the assets are invested." **Prior (2025):** (a)Includes CCB client investment assets invested in managed accounts and J.P. Morgan mutual funds where AWM is the investment manager. Client assets (continued)Year ended December 31,(in billions)202420232022Assets under management rollforwardBeginning balance$3,422 $2,766 $3,113 Net asset flows:Liquidity140 242 (55)Fixed income91 70 13 Equity114 70 35 Multi-asset19 1 (9)Alternatives10 (1)8 Market/performance/other impacts249 274 (339)Ending balance, December 31$4,045 $3,422 $2,766 Client assets rollforwardBeginning balance$5,012 $4,048 $4,295 Net asset flows486 490 49 Market/performance/other impacts434 474 (296)Ending balance, December 31$5,932 $5,012 $4,048 Selected MetricsAs of December 31,20242023ChangeFirmwide Wealth ManagementClient assets (in billions)(a)$3,756 $3,177 18 %Number of client advisors9,530 8,971 6 Stock Plan Administration(b)Number of stock plan participants (in thousands)1,327 974 36 Client assets (in billions)$270 $230 17 %(a) Consists of Global Private Bank in AWM and client investment assets in J.P. Morgan Wealth Management in CCB.(b)Relates to an equity plan administration business which was acquired in 2022 with the Firm's purchase of Global Shares. The increase in 2024 includes the impact of onboarding participants in the Firm's employee stock plans during the fourth quarter of 2024. Client assets (continued)Year ended December 31,(in billions)202420232022Assets under management rollforwardBeginning balance$3,422 $2,766 $3,113 Net asset flows:Liquidity140 242 (55)Fixed income91 70 13 Equity114 70 35 Multi-asset19 1 (9)Alternatives10 (1)8 Market/performance/other impacts249 274 (339)Ending balance, December 31$4,045 $3,422 $2,766 Client assets rollforwardBeginning balance$5,012 $4,048 $4,295 Net asset flows486 490 49 Market/performance/other impacts434 474 (296)Ending balance, December 31$5,932 $5,012 $4,048 **Current (2026):** (a)Includes CCB client investment assets invested in managed accounts and J.P. Morgan mutual funds where AWM is the investment manager. (b)In the first quarter of 2025, the Firm realigned certain client assets from Private Banking to Global Funds to reflect them in the client segment where the assets are invested. Prior period amounts have been revised to conform with the current presentation. Client assets (continued)Year ended December 31,(in billions)202520242023Assets under management rollforwardBeginning balance$4,045 $3,422 $2,766 Net asset flows:Liquidity183 140 242 Fixed income94 91 70 Equity95 114 70 Multi-asset16 19 1 Alternatives4 10 (1)Market/performance/other impacts354 249 274 Ending balance, December 31$4,791 $4,045 $3,422 Client assets rollforwardBeginning balance$5,932 $5,012 $4,048 Net asset flows553 486 490 Market/performance/other impacts633 434 474 Ending balance, December 31$7,118 $5,932 $5,012 Selected MetricsAs of December 31,20252024ChangeFirmwide Wealth ManagementClient assets (in billions)(a)$4,521 $3,756 20 %Number of client advisors10,150 9,530 7 Stock Plan AdministrationNumber of stock plan participants (in thousands)1,794 1,327 35 Client assets (in billions)$372 $270 38 %(a)Consists of Global Private Bank in AWM and client investment assets in J.P. Morgan Wealth Management in CCB. Client assets (continued)Year ended December 31,(in billions)202520242023Assets under management rollforwardBeginning balance$4,045 $3,422 $2,766 Net asset flows:Liquidity183 140 242 Fixed income94 91 70 Equity95 114 70 Multi-asset16 19 1 Alternatives4 10 (1)Market/performance/other impacts354 249 274 Ending balance, December 31$4,791 $4,045 $3,422 Client assets rollforwardBeginning balance$5,932 $5,012 $4,048 Net asset flows553 486 490 Market/performance/other impacts633 434 474 Ending balance, December 31$7,118 $5,932 $5,012 --- ## Modified Risk: Maturities and sensitivity to changes in interest rates **Key changes:** - Updated: "December 31, 2025(in millions)Within1 year(a) 1-5years5-15yearsAfter 15 yearsTotalConsumer, excluding credit cardResidential real estate$35,842 $26,960 $110,981 $159,365 $333,148 Auto and other21,009 (b)42,518 5,579 4 69,110 Total consumer, excluding credit card loans$56,851 $69,478 $116,560 $159,369 $402,258 Total credit card loans$245,850 $1,932 $15 $ - $247,797 Total consumer loans$302,701 $71,410 $116,575 $159,369 $650,055 Loans due after one year at fixed interest ratesResidential real estate$19,270 $56,134 $69,232 Auto and other42,358 3,121 4 Credit card1,932 15 - Loans due after one year at variable interest ratesResidential real estate$7,690 $54,847 $90,133 Auto and other160 2,458 - Total consumer loans$71,410 $116,575 $159,369 Within 1 year(a) (b) (a)Includes loans held-for-sale and loans at fair value." - Updated: "114JPMorgan Chase & Co./2025 Form 10-K 114JPMorgan Chase & Co./2025 Form 10-K 114JPMorgan Chase & Co./2025 Form 10-K 114 JPMorgan Chase & Co./2025 Form 10-K" **Prior (2025):** The table below sets forth loan maturities by scheduled repayments, by class of loan and the distribution between fixed and floating interest rates based on the stated terms of the loan agreements. The Firm estimated the principal repayment amounts for both the residential real estate and auto and other loan classes by calculating the weighted-average loan balance and interest rates for loan pools based on remaining loan term. Refer to Note 12 for further information on loan classes. December 31, 2024(in millions)Within1 year(a) 1-5years5-15yearsAfter 15 yearsTotalConsumer, excluding credit cardResidential real estate$21,442 $26,712 $109,608 $166,715 $324,477 Auto and other19,404 (b)43,701 5,224 4 68,333 Total consumer, excluding credit card loans$40,846 $70,413 $114,832 $166,719 $392,810 Total credit card loans$231,799 $1,048 $13 $ - $232,860 Total consumer loans$272,645 $71,461 $114,845 $166,719 $625,670 Loans due after one year at fixed interest ratesResidential real estate$19,639 $57,351 $77,865 Auto and other43,565 2,957 4 Credit card1,048 13 - Loans due after one year at variable interest ratesResidential real estate$7,073 $52,257 $88,850 Auto and other136 2,267 - Total consumer loans$71,461 $114,845 $166,719 Within 1 year(a) (b) (a)Includes loans held-for-sale and loans at fair value. (b)Includes overdrafts. 122JPMorgan Chase & Co./2024 Form 10-K 122JPMorgan Chase & Co./2024 Form 10-K 122JPMorgan Chase & Co./2024 Form 10-K 122 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** The table below sets forth loan maturities by scheduled repayments, by class of loan and the distribution between fixed and floating interest rates based on the stated terms of the loan agreements. The Firm estimated the principal repayment amounts for both the residential real estate and auto and other loan classes by calculating the weighted-average loan balance and interest rates for loan pools based on remaining loan term. Refer to Note 12 for further information on loan classes. December 31, 2025(in millions)Within1 year(a) 1-5years5-15yearsAfter 15 yearsTotalConsumer, excluding credit cardResidential real estate$35,842 $26,960 $110,981 $159,365 $333,148 Auto and other21,009 (b)42,518 5,579 4 69,110 Total consumer, excluding credit card loans$56,851 $69,478 $116,560 $159,369 $402,258 Total credit card loans$245,850 $1,932 $15 $ - $247,797 Total consumer loans$302,701 $71,410 $116,575 $159,369 $650,055 Loans due after one year at fixed interest ratesResidential real estate$19,270 $56,134 $69,232 Auto and other42,358 3,121 4 Credit card1,932 15 - Loans due after one year at variable interest ratesResidential real estate$7,690 $54,847 $90,133 Auto and other160 2,458 - Total consumer loans$71,410 $116,575 $159,369 Within 1 year(a) (b) (a)Includes loans held-for-sale and loans at fair value. (b)Includes overdrafts. 114JPMorgan Chase & Co./2025 Form 10-K 114JPMorgan Chase & Co./2025 Form 10-K 114JPMorgan Chase & Co./2025 Form 10-K 114 JPMorgan Chase & Co./2025 Form 10-K --- ## Modified Risk: 2025 compared with 2024 **Key changes:** - Updated: "Net income was $18.2 billion, up 4%." - Updated: "At December 31, 2025, 2024 and 2023, mortgage loans 90 or more days past due and insured by U.S." - Updated: "(c)Includes $2.2 billion related to the Apple Card transaction." - Updated: "At December 31, 2025, 2024 and 2023, mortgage loans 90 or more days past due and insured by U.S." - Updated: "(c)Includes $2.2 billion related to the Apple Card transaction." **Prior (2025):** Net income was $17.6 billion, down 17%. Net revenue was $71.5 billion, up 2%. Net interest income was $54.9 billion, flat when compared with the prior year, reflecting: •lower NII in Banking & Wealth Management ("BWM"), predominantly driven by deposit margin compression and lower average deposits, offset by •higher Card Services NII, predominantly driven by higher revolving balances, and •the timing impact of First Republic in Home Lending. Noninterest revenue was $16.6 billion, up 10%, predominantly driven by: •higher asset management fees reflecting higher average market levels, including the timing impact of First Republic and, to a lesser extent, net inflows, as well as higher commissions from annuity sales in BWM, •higher card income, driven by higher net interchange reflecting increased debit and credit card sales volume, and higher annual fees, partially offset by an increase in amortization related to new account origination costs, as well as •higher production revenue in Home Lending, including the timing impact of First Republic. Refer to Note 6 for additional information on card income, asset management fees, and commissions and other fees; and Critical Accounting Estimates on pages 161-164 for additional information on the credit card rewards liability. Refer to Executive Overview on page 54 and Note 34 for additional information on First Republic. Noninterest expense was $38.0 billion, up 9%, reflecting First Republic-related expense that was aligned to CCB from Corporate starting in the third quarter of 2023, impacting both compensation and noncompensation expense. The increase in expense also reflected: •higher compensation expense, largely driven by higher revenue-related compensation predominantly for advisors and bankers, and an increase in the number of employees, including in technology, and •higher noncompensation expense, largely driven by continued investments in technology and marketing, as well as higher operating losses, partially offset by lower legal expense. The provision for credit losses was $10.0 billion, reflecting:•net charge-offs of $7.9 billion, up $2.6 billion, including $2.4 billion in Card Services, reflecting the seasoning of vintages originated in recent years, credit normalization and balance growth, and•a $2.0 billion net addition to the allowance for credit losses, consisting of:-$2.2 billion in Card Services, predominantly driven by loan growth, reflecting higher revolving balances, including the seasoning of vintages originated in recent years,partially offset by-a $125 million net reduction in Home Lending, primarily due to improvements in the outlook for home prices in the first quarter of 2024. The provision in the prior year was $6.9 billion, reflecting net charge-offs of $5.3 billion, a $1.2 billion net addition to the allowance for credit losses, predominantly driven by Card Services, and a $408 million net addition to the allowance for credit losses to establish the allowance for the First Republic loans and lending-related commitments in the second quarter of 2023.Refer to Credit and Investment Risk Management on pages 117-140 and Allowance for Credit Losses on pages 137-139 for a further discussion of the credit portfolios and the allowance for credit losses. The provision for credit losses was $10.0 billion, reflecting: •net charge-offs of $7.9 billion, up $2.6 billion, including $2.4 billion in Card Services, reflecting the seasoning of vintages originated in recent years, credit normalization and balance growth, and •a $2.0 billion net addition to the allowance for credit losses, consisting of: -$2.2 billion in Card Services, predominantly driven by loan growth, reflecting higher revolving balances, including the seasoning of vintages originated in recent years, partially offset by -a $125 million net reduction in Home Lending, primarily due to improvements in the outlook for home prices in the first quarter of 2024. The provision in the prior year was $6.9 billion, reflecting net charge-offs of $5.3 billion, a $1.2 billion net addition to the allowance for credit losses, predominantly driven by Card Services, and a $408 million net addition to the allowance for credit losses to establish the allowance for the First Republic loans and lending-related commitments in the second quarter of 2023. Refer to Credit and Investment Risk Management on pages 117-140 and Allowance for Credit Losses on pages 137-139 for a further discussion of the credit portfolios and the allowance for credit losses. 74JPMorgan Chase & Co./2024 Form 10-K 74JPMorgan Chase & Co./2024 Form 10-K 74JPMorgan Chase & Co./2024 Form 10-K 74 JPMorgan Chase & Co./2024 Form 10-K Selected metricsAs of or for the year ended December 31,(in millions, except employees)202420232022Selected balance sheet data (period-end)Total assets$650,268$642,951$514,085 Loans:Banking & Wealth Management33,22131,14229,008 Home Lending(a)246,498259,181172,554 Card Services233,016211,175185,175 Auto73,61977,70568,191 Total loans586,354579,203454,928 Deposits(b)1,056,6521,094,7381,131,611 Equity54,50055,50050,000 Selected balance sheet data (average)Total assets$631,648$584,367$497,263 Loans:Banking & Wealth Management31,54430,14231,545 Home Lending(c)252,542232,115176,285 Card Services214,139191,424163,335 Auto75,00972,67468,098 Total loans573,234526,355439,263 Deposits(b)1,064,2151,126,5521,162,680 Equity54,50054,34950,000 Employees144,989141,640135,347 (a)At December 31, 2024, 2023 and 2022, Home Lending loans held-for-sale and loans at fair value were $8.1 billion, $3.4 billion and $3.0 billion, respectively.(b)In the fourth quarter of 2023, CCB transferred approximately $18.8 billion of deposits associated with First Republic to AWM and CIB.(c)Average Home Lending loans held-for-sale and loans at fair value were $7.1 billion, $4.8 billion and $7.3 billion for the years ended December 31, 2024, 2023 and 2022, respectively.Selected metricsAs of or for the year ended December 31,(in millions, except ratio data)202420232022Credit data and quality statisticsNonaccrual loans(a)$3,366 $3,740 $3,899 Net charge-offs/(recoveries)Banking & Wealth Management442 340 370 Home Lending(106)(56)(229)Card Services7,148 4,699 2,403 Auto 444 357 144 Total net charge-offs/(recoveries)$7,928 $5,340 $2,688 Net charge-off/(recovery) rateBanking & Wealth Management1.40 %1.13 %1.17 %Home Lending(0.04)(0.02)(0.14)Card Services3.34 2.45 1.47 Auto0.59 0.49 0.21 Total net charge-off/(recovery) rate1.40 %1.02 %0.62 %30+ day delinquency rateHome Lending(b)0.78 %0.66 %0.83 %Card Services2.17 2.14 1.45 Auto1.43 1.19 1.01 90+ day delinquency rate - Card Services1.14 %1.05 %0.68 %Allowance for loan lossesBanking & Wealth Management$764 $685 $722 Home Lending447 578 867 Card Services14,608 12,453 11,200 Auto 692 742 715 Total allowance for loan losses$16,511 $14,458 $13,504 (a)Excludes mortgage loans past due and insured by U.S. government agencies, which are primarily 90 or more days past due. These loans have been excluded based upon the government guarantee. At December 31, 2024, 2023 and 2022, mortgage loans 90 or more days past due and insured by U.S. government agencies were $84 million, $123 million and $187 million, respectively. In addition, the Firm's policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance(b)At December 31, 2024, 2023 and 2022, excluded mortgage loans insured by U.S. government agencies of $122 million, $176 million and $258 million, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee. Selected metricsAs of or for the year ended December 31,(in millions, except employees)202420232022Selected balance sheet data (period-end)Total assets$650,268$642,951$514,085 Loans:Banking & Wealth Management33,22131,14229,008 Home Lending(a)246,498259,181172,554 Card Services233,016211,175185,175 Auto73,61977,70568,191 Total loans586,354579,203454,928 Deposits(b)1,056,6521,094,7381,131,611 Equity54,50055,50050,000 Selected balance sheet data (average)Total assets$631,648$584,367$497,263 Loans:Banking & Wealth Management31,54430,14231,545 Home Lending(c)252,542232,115176,285 Card Services214,139191,424163,335 Auto75,00972,67468,098 Total loans573,234526,355439,263 Deposits(b)1,064,2151,126,5521,162,680 Equity54,50054,34950,000 Employees144,989141,640135,347 (a)At December 31, 2024, 2023 and 2022, Home Lending loans held-for-sale and loans at fair value were $8.1 billion, $3.4 billion and $3.0 billion, respectively.(b)In the fourth quarter of 2023, CCB transferred approximately $18.8 billion of deposits associated with First Republic to AWM and CIB.(c)Average Home Lending loans held-for-sale and loans at fair value were $7.1 billion, $4.8 billion and $7.3 billion for the years ended December 31, 2024, 2023 and 2022, respectively. Selected metricsAs of or for the year ended December 31,(in millions, except employees)202420232022Selected balance sheet data (period-end)Total assets$650,268$642,951$514,085 Loans:Banking & Wealth Management33,22131,14229,008 Home Lending(a)246,498259,181172,554 Card Services233,016211,175185,175 Auto73,61977,70568,191 Total loans586,354579,203454,928 Deposits(b)1,056,6521,094,7381,131,611 Equity54,50055,50050,000 Selected balance sheet data (average)Total assets$631,648$584,367$497,263 Loans:Banking & Wealth Management31,54430,14231,545 Home Lending(c)252,542232,115176,285 Card Services214,139191,424163,335 Auto75,00972,67468,098 Total loans573,234526,355439,263 Deposits(b)1,064,2151,126,5521,162,680 Equity54,50054,34950,000 Employees144,989141,640135,347 (in millions, except employees) Home Lending(a) Deposits(b) Home Lending(c) Deposits(b) Employees (a)At December 31, 2024, 2023 and 2022, Home Lending loans held-for-sale and loans at fair value were $8.1 billion, $3.4 billion and $3.0 billion, respectively. (b)In the fourth quarter of 2023, CCB transferred approximately $18.8 billion of deposits associated with First Republic to AWM and CIB. (c)Average Home Lending loans held-for-sale and loans at fair value were $7.1 billion, $4.8 billion and $7.3 billion for the years ended December 31, 2024, 2023 and 2022, respectively. Selected metricsAs of or for the year ended December 31,(in millions, except ratio data)202420232022Credit data and quality statisticsNonaccrual loans(a)$3,366 $3,740 $3,899 Net charge-offs/(recoveries)Banking & Wealth Management442 340 370 Home Lending(106)(56)(229)Card Services7,148 4,699 2,403 Auto 444 357 144 Total net charge-offs/(recoveries)$7,928 $5,340 $2,688 Net charge-off/(recovery) rateBanking & Wealth Management1.40 %1.13 %1.17 %Home Lending(0.04)(0.02)(0.14)Card Services3.34 2.45 1.47 Auto0.59 0.49 0.21 Total net charge-off/(recovery) rate1.40 %1.02 %0.62 %30+ day delinquency rateHome Lending(b)0.78 %0.66 %0.83 %Card Services2.17 2.14 1.45 Auto1.43 1.19 1.01 90+ day delinquency rate - Card Services1.14 %1.05 %0.68 %Allowance for loan lossesBanking & Wealth Management$764 $685 $722 Home Lending447 578 867 Card Services14,608 12,453 11,200 Auto 692 742 715 Total allowance for loan losses$16,511 $14,458 $13,504 (a)Excludes mortgage loans past due and insured by U.S. government agencies, which are primarily 90 or more days past due. These loans have been excluded based upon the government guarantee. At December 31, 2024, 2023 and 2022, mortgage loans 90 or more days past due and insured by U.S. government agencies were $84 million, $123 million and $187 million, respectively. In addition, the Firm's policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance(b)At December 31, 2024, 2023 and 2022, excluded mortgage loans insured by U.S. government agencies of $122 million, $176 million and $258 million, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee. Selected metricsAs of or for the year ended December 31,(in millions, except ratio data)202420232022Credit data and quality statisticsNonaccrual loans(a)$3,366 $3,740 $3,899 Net charge-offs/(recoveries)Banking & Wealth Management442 340 370 Home Lending(106)(56)(229)Card Services7,148 4,699 2,403 Auto 444 357 144 Total net charge-offs/(recoveries)$7,928 $5,340 $2,688 Net charge-off/(recovery) rateBanking & Wealth Management1.40 %1.13 %1.17 %Home Lending(0.04)(0.02)(0.14)Card Services3.34 2.45 1.47 Auto0.59 0.49 0.21 Total net charge-off/(recovery) rate1.40 %1.02 %0.62 %30+ day delinquency rateHome Lending(b)0.78 %0.66 %0.83 %Card Services2.17 2.14 1.45 Auto1.43 1.19 1.01 90+ day delinquency rate - Card Services1.14 %1.05 %0.68 %Allowance for loan lossesBanking & Wealth Management$764 $685 $722 Home Lending447 578 867 Card Services14,608 12,453 11,200 Auto 692 742 715 Total allowance for loan losses$16,511 $14,458 $13,504 Nonaccrual loans(a) Home Lending(b) 90+ day delinquency rate - Card Services (a)Excludes mortgage loans past due and insured by U.S. government agencies, which are primarily 90 or more days past due. These loans have been excluded based upon the government guarantee. At December 31, 2024, 2023 and 2022, mortgage loans 90 or more days past due and insured by U.S. government agencies were $84 million, $123 million and $187 million, respectively. In addition, the Firm's policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance (b)At December 31, 2024, 2023 and 2022, excluded mortgage loans insured by U.S. government agencies of $122 million, $176 million and $258 million, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee. JPMorgan Chase & Co./2024 Form 10-K75 JPMorgan Chase & Co./2024 Form 10-K75 JPMorgan Chase & Co./2024 Form 10-K75 JPMorgan Chase & Co./2024 Form 10-K 75 Selected metricsAs of or for the year ended December 31,(in billions, except ratios and where otherwise noted)202420232022Business MetricsCCB Consumer customers (in millions)84.4 82.1 79.2 CCB Small business customers (in millions)7.0 6.4 5.7 Number of branches4,966 4,897 4,787 Active digital customers (in thousands)(a)70,813 66,983 63,136 Active mobile customers (in thousands)(b)57,821 53,828 49,710 Debit and credit card sales volume$1,805.4 $1,678.6 $1,555.4 Total payments transaction volume (in trillions)(c)6.4 5.9 5.6 Banking & Wealth ManagementAverage deposits$1,049.3 $1,111.7 $1,145.7 Deposit margin2.66 %2.84 %1.71 %Business Banking average loans$19.5 $19.6 $22.3 Business Banking origination volume4.5 4.8 4.3 Client investment assets(d)1,087.6 951.1 647.1 Number of client advisors 5,755 5,456 5,029 Home LendingMortgage origination volume by channelRetail$25.5 $22.4 $38.5 Correspondent 15.3 12.7 26.9 Total mortgage origination volume(e)$40.8 $35.1 $65.4 Third-party mortgage loans serviced (period-end)$648.0 $631.2 $584.3 MSR carrying value (period-end)9.1 8.5 8.0 Card ServicesSales volume, excluding commercial card$1,259.3 $1,163.6 $1,064.7 Net revenue rate10.03 %9.72 %9.87 %Net yield on average loans9.73 9.61 9.77 New credit card accounts opened (in millions)10.0 10.0 9.6 AutoLoan and lease origination volume$40.3 $41.3 $30.4 Average auto operating lease assets11.1 10.9 14.3 (a)Users of all web and/or mobile platforms who have logged in within the past 90 days.(b)Users of all mobile platforms who have logged in within the past 90 days.(c)Total payments transaction volume includes debit and credit card sales volume and gross outflows of ACH, ATM, teller, wires, BillPay, PayChase, Zelle, person-to-person and checks. (d)Includes assets invested in managed accounts and J.P. Morgan mutual funds where AWM is the investment manager. Refer to AWM segment results on pages 84-87 for additional information.(e)Firmwide mortgage origination volume was $47.4 billion, $41.4 billion and $81.8 billion for the years ended December 31, 2024, 2023 and 2022, respectively. Selected metricsAs of or for the year ended December 31,(in billions, except ratios and where otherwise noted)202420232022Business MetricsCCB Consumer customers (in millions)84.4 82.1 79.2 CCB Small business customers (in millions)7.0 6.4 5.7 Number of branches4,966 4,897 4,787 Active digital customers (in thousands)(a)70,813 66,983 63,136 Active mobile customers (in thousands)(b)57,821 53,828 49,710 Debit and credit card sales volume$1,805.4 $1,678.6 $1,555.4 Total payments transaction volume (in trillions)(c)6.4 5.9 5.6 Banking & Wealth ManagementAverage deposits$1,049.3 $1,111.7 $1,145.7 Deposit margin2.66 %2.84 %1.71 %Business Banking average loans$19.5 $19.6 $22.3 Business Banking origination volume4.5 4.8 4.3 Client investment assets(d)1,087.6 951.1 647.1 Number of client advisors 5,755 5,456 5,029 Home LendingMortgage origination volume by channelRetail$25.5 $22.4 $38.5 Correspondent 15.3 12.7 26.9 Total mortgage origination volume(e)$40.8 $35.1 $65.4 Third-party mortgage loans serviced (period-end)$648.0 $631.2 $584.3 MSR carrying value (period-end)9.1 8.5 8.0 Card ServicesSales volume, excluding commercial card$1,259.3 $1,163.6 $1,064.7 Net revenue rate10.03 %9.72 %9.87 %Net yield on average loans9.73 9.61 9.77 New credit card accounts opened (in millions)10.0 10.0 9.6 AutoLoan and lease origination volume$40.3 $41.3 $30.4 Average auto operating lease assets11.1 10.9 14.3 Selected metricsAs of or for the year ended December 31,(in billions, except ratios and where otherwise noted)202420232022Business MetricsCCB Consumer customers (in millions)84.4 82.1 79.2 CCB Small business customers (in millions)7.0 6.4 5.7 Number of branches4,966 4,897 4,787 Active digital customers (in thousands)(a)70,813 66,983 63,136 Active mobile customers (in thousands)(b)57,821 53,828 49,710 Debit and credit card sales volume$1,805.4 $1,678.6 $1,555.4 Total payments transaction volume (in trillions)(c)6.4 5.9 5.6 Banking & Wealth ManagementAverage deposits$1,049.3 $1,111.7 $1,145.7 Deposit margin2.66 %2.84 %1.71 %Business Banking average loans$19.5 $19.6 $22.3 Business Banking origination volume4.5 4.8 4.3 Client investment assets(d)1,087.6 951.1 647.1 Number of client advisors 5,755 5,456 5,029 Home LendingMortgage origination volume by channelRetail$25.5 $22.4 $38.5 Correspondent 15.3 12.7 26.9 Total mortgage origination volume(e)$40.8 $35.1 $65.4 Third-party mortgage loans serviced (period-end)$648.0 $631.2 $584.3 MSR carrying value (period-end)9.1 8.5 8.0 Card ServicesSales volume, excluding commercial card$1,259.3 $1,163.6 $1,064.7 Net revenue rate10.03 %9.72 %9.87 %Net yield on average loans9.73 9.61 9.77 New credit card accounts opened (in millions)10.0 10.0 9.6 AutoLoan and lease origination volume$40.3 $41.3 $30.4 Average auto operating lease assets11.1 10.9 14.3 CCB Consumer customers (in millions) CCB Small business customers (in millions) Active digital customers (in thousands)(a) Active mobile customers (in thousands)(b) Debit and credit card sales volume Total payments transaction volume (in trillions)(c) Business Banking average loans Business Banking origination volume Client investment assets(d) **Current (2026):** Net income was $18.2 billion, up 4%. Net revenue was $76.0 billion, up 6%. Net interest income was $58.2 billion, up 6%, reflecting: •higher NII in Card Services, predominantly driven by higher revolving balances, and •higher NII in Banking & Wealth Management ("BWM"), driven by higher deposit margin, reflecting the impact of changes in FTP, partially offset by lower average deposit balances. Refer to Business Segment & Corporate Results on page 63 for additional information on FTP. Noninterest revenue was $17.8 billion, up 7%, driven by: •higher auto operating lease income as a result of growth in volume, and •in BWM, higher asset management fees, reflecting higher average market levels and net inflows, as well as higher deposit-related fees as a result of higher transaction volume and new accounts, partially offset by •lower card income, reflecting lower net interchange, as well as an increase in amortization related to new account origination costs, partially offset by higher annual fees. 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 6 for additional information on card income, asset management fees, and deposit-related fees; and Critical Accounting Estimates on pages 154-157 for additional information on the credit card rewards liability. Noninterest expense was $40.3 billion, up 6%, reflecting: •higher noncompensation expense, predominantly driven by higher auto lease depreciation on higher auto operating lease assets, and continued investments in marketing and technology, as well as •higher compensation expense, predominantly for bankers and advisors, and employees in technology. The provision for credit losses was $11.5 billion. Net charge-offs were $8.2 billion, up $319 million, primarily driven by Card Services, reflecting loan growth. The net addition to the allowance for credit losses of $3.2 billion which was driven by $2.2 billion related to the Apple Card transaction, loan growth in Card Services and the impact of changes in the Firm's weighted-average macroeconomic outlook, partially offset by reduced borrower uncertainty.In the prior year, the provision was $10.0 billion, net charge-offs were $7.9 billion and the net addition to the allowance for credit losses was $2.0 billion.Refer to Credit and Investment Risk Management on pages 109-132 and Allowance for Credit Losses on pages 129-131 for a further discussion of the credit portfolios and the allowance for credit losses. The provision for credit losses was $11.5 billion. Net charge-offs were $8.2 billion, up $319 million, primarily driven by Card Services, reflecting loan growth. The net addition to the allowance for credit losses of $3.2 billion which was driven by $2.2 billion related to the Apple Card transaction, loan growth in Card Services and the impact of changes in the Firm's weighted-average macroeconomic outlook, partially offset by reduced borrower uncertainty. In the prior year, the provision was $10.0 billion, net charge-offs were $7.9 billion and the net addition to the allowance for credit losses was $2.0 billion. Refer to Credit and Investment Risk Management on pages 109-132 and Allowance for Credit Losses on pages 129-131 for a further discussion of the credit portfolios and the allowance for credit losses. 66JPMorgan Chase & Co./2025 Form 10-K 66JPMorgan Chase & Co./2025 Form 10-K 66JPMorgan Chase & Co./2025 Form 10-K 66 JPMorgan Chase & Co./2025 Form 10-K Selected metricsAs of or for the year ended December 31,(in millions, except employees)202520242023Selected balance sheet data (period-end)Total assets$664,669 $650,268 $642,951 Loans:Banking & Wealth Management33,005 33,221 31,142 Home Lending(a)240,724 246,498 259,181 Card Services247,753 233,016 211,175 Auto70,585 73,619 77,705 Total loans592,067 586,354 579,203 Deposits(b)1,072,792 1,056,652 1,094,738 Equity56,000 54,500 55,500 Selected balance sheet data (average)Total assets$646,820 $631,648 $584,367 Loans:Banking & Wealth Management33,241 31,544 30,142 Home Lending(b)242,595 252,542 232,115 Card Services231,720 214,139 191,424 Auto71,359 75,009 72,674 Total loans578,915 573,234 526,355 Deposits1,057,232 1,064,215 1,126,552 Equity56,000 54,500 54,349 Employees144,196 (c)144,989 141,640 (a)At December 31, 2025, 2024 and 2023, Home Lending loans held-for-sale and loans at fair value were $11.0 billion, $8.1 billion and $3.4 billion, respectively.(b)Average Home Lending loans held-for-sale and loans at fair value were $9.5 billion, $7.1 billion and $4.8 billion for the years ended December 31, 2025, 2024 and 2023, respectively.(c)In the first quarter of 2025, 419 employees were transferred to Corporate as a result of the centralization of certain functions.Selected metricsAs of or for the year ended December 31,(in millions, except ratio data)202520242023Credit data and quality statisticsNonaccrual loans(a)$3,484 $3,366 $3,740 Net charge-offs/(recoveries)Banking & Wealth Management356 442 340 Home Lending(122)(106)(56)Card Services7,678 7,148 4,699 Auto 335 444 357 Total net charge-offs/(recoveries)$8,247 $7,928 $5,340 Net charge-off/(recovery) rateBanking & Wealth Management1.07 %1.40 %1.13 %Home Lending(0.05)(0.04)(0.02)Card Services3.31 3.34 2.45 Auto0.47 0.59 0.49 Total net charge-off/(recovery) rate1.45 %1.40 %1.02 %30+ day delinquency rateHome Lending(b)0.86 %0.78 %0.66 %Card Services2.16 2.17 2.14 Auto1.33 1.43 1.19 90+ day delinquency rate - Card Services1.10 %1.14 %1.05 %Allowance for credit losses:Allowance for loan lossesBanking & Wealth Management$765 $764 $685 Home Lending647 447 578 Card Services15,558 14,608 12,453 Auto 587 692 742 Total allowance for loan losses$17,557 $16,511 $14,458 Allowance for lending-related commitments$2,290 (c)$91 $97 Total allowance for credit losses$19,847 $16,602 $14,555 (a)Excludes mortgage loans past due and insured by U.S. government agencies, which are primarily 90 or more days past due. These loans have been excluded based upon the government guarantee. At December 31, 2025, 2024 and 2023, mortgage loans 90 or more days past due and insured by U.S. government agencies were $70 million, $84 million and $123 million, respectively. In addition, the Firm's policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance.(b)At December 31, 2025, 2024 and 2023, excluded mortgage loans insured by U.S. government agencies of $102 million, $122 million and $176 million, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee. (c)Includes $2.2 billion related to the Apple Card transaction. Selected metricsAs of or for the year ended December 31,(in millions, except employees)202520242023Selected balance sheet data (period-end)Total assets$664,669 $650,268 $642,951 Loans:Banking & Wealth Management33,005 33,221 31,142 Home Lending(a)240,724 246,498 259,181 Card Services247,753 233,016 211,175 Auto70,585 73,619 77,705 Total loans592,067 586,354 579,203 Deposits(b)1,072,792 1,056,652 1,094,738 Equity56,000 54,500 55,500 Selected balance sheet data (average)Total assets$646,820 $631,648 $584,367 Loans:Banking & Wealth Management33,241 31,544 30,142 Home Lending(b)242,595 252,542 232,115 Card Services231,720 214,139 191,424 Auto71,359 75,009 72,674 Total loans578,915 573,234 526,355 Deposits1,057,232 1,064,215 1,126,552 Equity56,000 54,500 54,349 Employees144,196 (c)144,989 141,640 (a)At December 31, 2025, 2024 and 2023, Home Lending loans held-for-sale and loans at fair value were $11.0 billion, $8.1 billion and $3.4 billion, respectively.(b)Average Home Lending loans held-for-sale and loans at fair value were $9.5 billion, $7.1 billion and $4.8 billion for the years ended December 31, 2025, 2024 and 2023, respectively.(c)In the first quarter of 2025, 419 employees were transferred to Corporate as a result of the centralization of certain functions. Selected metricsAs of or for the year ended December 31,(in millions, except employees)202520242023Selected balance sheet data (period-end)Total assets$664,669 $650,268 $642,951 Loans:Banking & Wealth Management33,005 33,221 31,142 Home Lending(a)240,724 246,498 259,181 Card Services247,753 233,016 211,175 Auto70,585 73,619 77,705 Total loans592,067 586,354 579,203 Deposits(b)1,072,792 1,056,652 1,094,738 Equity56,000 54,500 55,500 Selected balance sheet data (average)Total assets$646,820 $631,648 $584,367 Loans:Banking & Wealth Management33,241 31,544 30,142 Home Lending(b)242,595 252,542 232,115 Card Services231,720 214,139 191,424 Auto71,359 75,009 72,674 Total loans578,915 573,234 526,355 Deposits1,057,232 1,064,215 1,126,552 Equity56,000 54,500 54,349 Employees144,196 (c)144,989 141,640 (in millions, except employees) Home Lending(a) Deposits(b) Home Lending(b) Deposits Employees (c) (a)At December 31, 2025, 2024 and 2023, Home Lending loans held-for-sale and loans at fair value were $11.0 billion, $8.1 billion and $3.4 billion, respectively. (b)Average Home Lending loans held-for-sale and loans at fair value were $9.5 billion, $7.1 billion and $4.8 billion for the years ended December 31, 2025, 2024 and 2023, respectively. (c)In the first quarter of 2025, 419 employees were transferred to Corporate as a result of the centralization of certain functions. Selected metricsAs of or for the year ended December 31,(in millions, except ratio data)202520242023Credit data and quality statisticsNonaccrual loans(a)$3,484 $3,366 $3,740 Net charge-offs/(recoveries)Banking & Wealth Management356 442 340 Home Lending(122)(106)(56)Card Services7,678 7,148 4,699 Auto 335 444 357 Total net charge-offs/(recoveries)$8,247 $7,928 $5,340 Net charge-off/(recovery) rateBanking & Wealth Management1.07 %1.40 %1.13 %Home Lending(0.05)(0.04)(0.02)Card Services3.31 3.34 2.45 Auto0.47 0.59 0.49 Total net charge-off/(recovery) rate1.45 %1.40 %1.02 %30+ day delinquency rateHome Lending(b)0.86 %0.78 %0.66 %Card Services2.16 2.17 2.14 Auto1.33 1.43 1.19 90+ day delinquency rate - Card Services1.10 %1.14 %1.05 %Allowance for credit losses:Allowance for loan lossesBanking & Wealth Management$765 $764 $685 Home Lending647 447 578 Card Services15,558 14,608 12,453 Auto 587 692 742 Total allowance for loan losses$17,557 $16,511 $14,458 Allowance for lending-related commitments$2,290 (c)$91 $97 Total allowance for credit losses$19,847 $16,602 $14,555 (a)Excludes mortgage loans past due and insured by U.S. government agencies, which are primarily 90 or more days past due. These loans have been excluded based upon the government guarantee. At December 31, 2025, 2024 and 2023, mortgage loans 90 or more days past due and insured by U.S. government agencies were $70 million, $84 million and $123 million, respectively. In addition, the Firm's policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance.(b)At December 31, 2025, 2024 and 2023, excluded mortgage loans insured by U.S. government agencies of $102 million, $122 million and $176 million, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee. (c)Includes $2.2 billion related to the Apple Card transaction. Selected metricsAs of or for the year ended December 31,(in millions, except ratio data)202520242023Credit data and quality statisticsNonaccrual loans(a)$3,484 $3,366 $3,740 Net charge-offs/(recoveries)Banking & Wealth Management356 442 340 Home Lending(122)(106)(56)Card Services7,678 7,148 4,699 Auto 335 444 357 Total net charge-offs/(recoveries)$8,247 $7,928 $5,340 Net charge-off/(recovery) rateBanking & Wealth Management1.07 %1.40 %1.13 %Home Lending(0.05)(0.04)(0.02)Card Services3.31 3.34 2.45 Auto0.47 0.59 0.49 Total net charge-off/(recovery) rate1.45 %1.40 %1.02 %30+ day delinquency rateHome Lending(b)0.86 %0.78 %0.66 %Card Services2.16 2.17 2.14 Auto1.33 1.43 1.19 90+ day delinquency rate - Card Services1.10 %1.14 %1.05 %Allowance for credit losses:Allowance for loan lossesBanking & Wealth Management$765 $764 $685 Home Lending647 447 578 Card Services15,558 14,608 12,453 Auto 587 692 742 Total allowance for loan losses$17,557 $16,511 $14,458 Allowance for lending-related commitments$2,290 (c)$91 $97 Total allowance for credit losses$19,847 $16,602 $14,555 Nonaccrual loans(a) Home Lending(b) 90+ day delinquency rate - Card Services Allowance for credit losses: Allowance for lending-related commitments (c) --- ## Modified Risk: Loan delinquency(a) **Key changes:** - Updated: "% of 30+ days past due to total retained loans(b) (a)Individual delinquency classifications include mortgage loans insured by U.S." **Prior (2025):** Nonaccrual loans and other credit quality indicators The following table provides information on nonaccrual and other credit quality indicators for retained residential real estate loans. (in millions, except weighted-average data)December 31, 2024December 31, 2023Nonaccrual loans(a)(b)(c)(d)$2,984 $3,466 Current estimated LTV ratios(e)(f)(g)Greater than 125% and refreshed FICO scores:Equal to or greater than 660$72 $72 Less than 6603 - 101% to 125% and refreshed FICO scores:Equal to or greater than 660161 223 Less than 6605 4 80% to 100% and refreshed FICO scores:Equal to or greater than 6604,962 6,491 Less than 66073 102 Less than 80% and refreshed FICO scores:Equal to or greater than 660294,797 309,251 Less than 6608,534 9,277 No FICO/LTV available(h) 906 989 Total retained loans$309,513 $326,409 Weighted-average LTV ratio(e)(i)47 %49 %Weighted-average FICO(f)(i)774 770 Geographic region(h)(j) California$120,944 $127,072 New York46,854 48,815 Florida21,820 22,778 Texas14,531 15,506 Massachusetts13,511 14,213 Colorado10,465 10,800 Illinois9,835 10,856 Washington9,372 9,923 New Jersey7,554 8,050 Connecticut6,854 7,163 All other47,773 51,233 Total retained loans$309,513 $326,409 Nonaccrual loans(a)(b)(c)(d) **Current (2026):** % of 30+ days past due to total retained loans(b) (a)Individual delinquency classifications include mortgage loans insured by U.S. government agencies which were not material at December 31, 2025 and 2024. (b)Excludes mortgage loans that are 30 or more days past due insured by U.S. government agencies which were not material at December 31, 2025 and 2024. These amounts have been excluded based upon the government guarantee. (c)Purchased loans are included in the year in which they were originated. Approximately 37% of the total revolving loans are senior lien loans; the remaining balance are junior lien loans. The lien position the Firm holds is considered in the Firm's allowance for credit losses. Revolving loans that have been converted to term loans have higher delinquency rates than those that are still within the revolving period. That is primarily because the fully-amortizing payment that is generally required for those products is higher than the minimum payment options available for revolving loans within the revolving period. 242JPMorgan Chase & Co./2025 Form 10-K 242JPMorgan Chase & Co./2025 Form 10-K 242JPMorgan Chase & Co./2025 Form 10-K 242 JPMorgan Chase & Co./2025 Form 10-K Nonaccrual loans and other credit quality indicators The following table provides information on nonaccrual and other credit quality indicators for retained residential real estate loans. (in millions, except weighted-average data)December 31, 2025December 31, 2024Nonaccrual loans(a)(b)(c)(d)$3,632 $2,984 Current estimated LTV ratios(e)(f)(g)Greater than 125% and refreshed FICO scores:Equal to or greater than 660$71 $72 Less than 6604 3 Greater than 100% but less than or equal to 125% and refreshed FICO scores:Equal to or greater than 660282 161 Less than 6605 5 Greater than 80% but less than or equal to 100% and refreshed FICO scores:Equal to or greater than 6605,990 4,962 Less than 660131 73 Less than or equal to 80% and refreshed FICO scores:Equal to or greater than 660287,923 294,797 Less than 6608,435 8,534 No FICO/LTV available(h) 690 906 Total retained loans$303,531 $309,513 Weighted-average LTV ratio(e)(i)48 %47 %Weighted-average FICO(f)(i)775 774 Geographic region(h)(j) California$117,500 $120,944 New York46,378 46,854 Florida21,864 21,820 Texas14,398 14,531 Massachusetts12,985 13,511 Colorado10,316 10,465 Washington9,408 9,372 Illinois9,152 9,835 New Jersey7,486 7,554 Connecticut6,823 6,854 All other47,221 47,773 Total retained loans$303,531 $309,513 Nonaccrual loans(a)(b)(c)(d) --- ## Modified Risk: (in millions) **Key changes:** - Updated: "Remaining contractual maturity of the agreementsDecember 31, 2024(in millions)Overnight and continuousUp to 30 days30 - 90 daysGreater than 90 daysTotalTotal securities sold under repurchase agreements$308,392 $171,346 $19,932 $104,013 $603,683 Total securities loaned and other54,066 1,463 1 3,459 58,989" **Prior (2025):** Remaining contractual maturity of the agreementsDecember 31, 2023(in millions)Overnight and continuousUp to 30 days30 - 90 daysGreater than 90 daysTotalTotal securities sold under repurchase agreements$259,048 $102,941 $20,960 $77,036 $459,985 Total securities loaned and other49,610 1,544 - 988 52,142 **Current (2026):** Remaining contractual maturity of the agreementsDecember 31, 2024(in millions)Overnight and continuousUp to 30 days30 - 90 daysGreater than 90 daysTotalTotal securities sold under repurchase agreements$308,392 $171,346 $19,932 $104,013 $603,683 Total securities loaned and other54,066 1,463 1 3,459 58,989 --- ## Modified Risk: Liabilities **Key changes:** - Updated: "Securities loaned and other(a) (a)Includes securities-for-securities lending agreements of $6.6 billion and $5.9 billion at December 31, 2025 and 2024, respectively, accounted for at fair value, where the Firm is acting as lender." - Updated: "At December 31, 2025 and 2024, included $9.4 billion and $8.7 billion, respectively, of securities purchased under resale agreements; $44.0 billion and $42.9 billion, respectively, of securities borrowed; $34.9 billion and $40.9 billion, respectively, of securities sold under repurchase agreements; and securities loaned and other which were not material." **Prior (2025):** Securities loaned and other(a) (a)Includes securities-for-securities lending agreements of $5.9 billion and $5.6 billion at December 31, 2024 and 2023, respectively, accounted for at fair value, where the Firm is acting as lender. (b)In some cases, collateral exchanged with a counterparty exceeds the net asset or liability balance with that counterparty. In such cases, the amounts reported in this column are limited to the related net asset or liability with that counterparty. (c)Includes securities financing agreements that provide collateral rights, but where an appropriate legal opinion with respect to the master netting agreement has not been either sought or obtained. At December 31, 2024 and 2023, included $8.7 billion and $7.1 billion, respectively, of securities purchased under resale agreements; $42.9 billion and $50.7 billion, respectively, of securities borrowed; $40.9 billion and $30.0 billion, respectively, of securities sold under repurchase agreements; and securities loaned and other which were not material. (c) JPMorgan Chase & Co./2024 Form 10-K241 JPMorgan Chase & Co./2024 Form 10-K241 JPMorgan Chase & Co./2024 Form 10-K241 JPMorgan Chase & Co./2024 Form 10-K 241 **Current (2026):** Securities loaned and other(a) (a)Includes securities-for-securities lending agreements of $6.6 billion and $5.9 billion at December 31, 2025 and 2024, respectively, accounted for at fair value, where the Firm is acting as lender. (b)In some cases, collateral exchanged with a counterparty exceeds the net asset or liability balance with that counterparty. In such cases, the amounts reported in this column are limited to the related net asset or liability with that counterparty. (c)Includes securities financing agreements that provide collateral rights, but where an appropriate legal opinion with respect to the master netting agreement has not been either sought or obtained. At December 31, 2025 and 2024, included $9.4 billion and $8.7 billion, respectively, of securities purchased under resale agreements; $44.0 billion and $42.9 billion, respectively, of securities borrowed; $34.9 billion and $40.9 billion, respectively, of securities sold under repurchase agreements; and securities loaned and other which were not material. 234JPMorgan Chase & Co./2025 Form 10-K 234JPMorgan Chase & Co./2025 Form 10-K 234JPMorgan Chase & Co./2025 Form 10-K 234 JPMorgan Chase & Co./2025 Form 10-K The tables below present as of December 31, 2025 and 2024 the types of financial assets pledged in securities financing agreements and the remaining contractual maturity of the securities financing agreements. Gross liability balance20252024December 31, (in millions)Securities sold under repurchase agreementsSecurities loaned and otherSecurities sold under repurchase agreementsSecurities loaned and otherMortgage-backed securities:U.S. GSEs and government agencies$124,776 $ - $82,645 $ - Residential - nonagency1,685 - 2,610 - Commercial - nonagency2,285 - 2,344 - U.S. Treasury, GSEs and government agencies346,938 703 300,022 759 Obligations of U.S. states and municipalities1,624 - 1,872 - Non-U.S. government debt122,346 1,415 117,614 1,852 Corporate debt securities66,100 3,433 44,495 4,033 Asset-backed securities6,545 - 4,619 - Equity securities42,952 81,278 47,462 52,345 Total$715,251 $86,829 $603,683 $58,989 Total Remaining contractual maturity of the agreementsDecember 31, 2025(in millions)Overnight and continuousUp to 30 days30 - 90 daysGreater than 90 daysTotalTotal securities sold under repurchase agreements$406,605 $168,256 $18,169 $122,221 $715,251 Total securities loaned and other78,233 1,316 976 6,304 86,829 --- ## Modified Risk: Risk-based capital metrics:(a) **Key changes:** - Updated: "(e) (e) (b) (b)(e) (e) (c) (c) (c) (c) (c) (c) (a)As of January 1, 2025, the benefit from the CECL capital transition provision had been fully phased out." - Updated: "(b)Includes approximately $23 billion under the Standardized approach and approximately $110 billion under the Advanced approach related to the Apple Card transaction." - Updated: "(e)Includes the impacts of certain assets associated with First Republic to which the Standardized approach has been applied as permitted by the transition provisions in the U.S." **Prior (2025):** (c) (c) (c) (c) (a)The capital metrics reflect the CECL capital transition provisions. As of December 31, 2024, CET1 capital reflected the remaining $720 million CECL benefit and were fully phased in as of January 1, 2025; as of December 31, 2023, CET1 capital reflected a $1.4 billion benefit. Refer to Note 27 for additional information. (b)Represents minimum requirements and regulatory buffers applicable to the Firm for the period ended December 31, 2024. For the period ended December 31, 2023, the Basel III Standardized CET1, Tier 1, and Total capital ratio requirements applicable to the Firm were 11.4%, 12.9%, and 14.9%, respectively; the Basel III Advanced CET1, Tier 1, and Total capital ratio requirements applicable to the Firm were 11.0%, 12.5%, and 14.5%, respectively. Refer to Note 27 for additional information. (c)Includes the impacts of certain assets associated with First Republic to which the Standardized approach has been applied as permitted by the transition provisions in the U.S. capital rules. Three months ended(in millions, except ratios)December 31, 2024December 31, 2023Capital ratio requirements(c)Leverage-based capital metrics:(a)Adjusted average assets(b)$4,070,499 $3,831,200 Tier 1 leverage ratio7.2 %7.2 %4.0 %Total leverage exposure$4,837,568 $4,540,465 SLR6.1 %6.1 %5.0 % December 31, 2023 Capital ratio requirements(c) **Current (2026):** (e) (e) (b) (b)(e) (e) (c) (c) (c) (c) (c) (c) (a)As of January 1, 2025, the benefit from the CECL capital transition provision had been fully phased out. For the year ended December 31, 2024, CET1 capital reflected a $720 million benefit. Refer to Note 27 for additional information. (b)Includes approximately $23 billion under the Standardized approach and approximately $110 billion under the Advanced approach related to the Apple Card transaction. Advanced RWA is expected to reduce to approximately $30 billion once the necessary modeling steps are completed, which is expected in the near term. (c)Includes decreases of approximately 25 basis points under the Standardized approach and approximately 90 basis points under the Advanced approach related to the Apple Card transaction. The impact under the Advanced approach is expected to reduce to approximately 30 basis points once the necessary modeling steps are completed, which is expected in the near term. (d)Represents minimum requirements and regulatory buffers applicable to the Firm for the year ended December 31, 2025. For the year ended December 31, 2024, the Standardized CET1, Tier 1, and Total capital ratio requirements applicable to the Firm were 12.3%, 13.8%, and 15.8%, respectively; the Advanced CET1, Tier 1, and Total capital ratio requirements applicable to the Firm were 11.5%, 13.0%, and 15.0%, respectively. Refer to Note 27 for additional information. (e)Includes the impacts of certain assets associated with First Republic to which the Standardized approach has been applied as permitted by the transition provisions in the U.S. capital rules. Three months ended(in millions, except ratios)December 31, 2025December 31, 2024Capital ratio requirements(c)Leverage-based capital metrics:(a)Adjusted average assets(b)$4,472,394 $4,070,499 Tier 1 leverage ratio6.9 %7.2 %4.0 %Total leverage exposure$5,302,001 $4,837,568 SLR5.8 %6.1 %5.0 % --- ## Modified Risk: Allocation of allowance for loan losses **Key changes:** - Updated: "20252024December 31,(in millions, except ratios)Allowance for loan losses% of retained loans to total retained loansAllowance for loan losses% of retained loans to total retained loansResidential real estate$869 21 %$666 24 %Auto and other1,051 5 1,141 5 Consumer, excluding credit card1,920 26 1,807 29 Credit card15,557 18 14,600 18 Total consumer17,477 44 16,407 47 Secured by real estate2,226 12 2,978 12 Commercial and industrial4,240 12 3,350 13 Other1,822 32 1,610 28 Total wholesale8,288 56 7,938 53 Total$25,765 100 %$24,345 100 % JPMorgan Chase & Co./2025 Form 10-K131 JPMorgan Chase & Co./2025 Form 10-K131 JPMorgan Chase & Co./2025 Form 10-K131 JPMorgan Chase & Co./2025 Form 10-K 131" **Prior (2025):** The table below presents a breakdown of the allowance for loan losses by loan class. Refer to Note 12 for further information on loan classes. 20242023December 31,(in millions, except ratios)Allowance for loan lossesPercent of retained loans to total retained loansAllowance for loan lossesPercent of retained loans to total retained loansResidential real estate$666 24 %$817 25 %Auto and other1,141 5 1,039 6 Consumer, excluding credit card1,807 29 1,856 31 Credit card14,600 18 12,450 16 Total consumer16,407 47 14,306 47 Secured by real estate2,978 12 2,997 13 Commercial and industrial3,350 13 3,519 13 Other1,610 28 1,598 27 Total wholesale7,938 53 8,114 53 Total$24,345 100 %$22,420 100 % JPMorgan Chase & Co./2024 Form 10-K139 JPMorgan Chase & Co./2024 Form 10-K139 JPMorgan Chase & Co./2024 Form 10-K139 JPMorgan Chase & Co./2024 Form 10-K 139 **Current (2026):** The table below presents a breakdown of the allowance for loan losses by loan class. Refer to Note 12 for further information on loan classes. 20252024December 31,(in millions, except ratios)Allowance for loan losses% of retained loans to total retained loansAllowance for loan losses% of retained loans to total retained loansResidential real estate$869 21 %$666 24 %Auto and other1,051 5 1,141 5 Consumer, excluding credit card1,920 26 1,807 29 Credit card15,557 18 14,600 18 Total consumer17,477 44 16,407 47 Secured by real estate2,226 12 2,978 12 Commercial and industrial4,240 12 3,350 13 Other1,822 32 1,610 28 Total wholesale8,288 56 7,938 53 Total$25,765 100 %$24,345 100 % JPMorgan Chase & Co./2025 Form 10-K131 JPMorgan Chase & Co./2025 Form 10-K131 JPMorgan Chase & Co./2025 Form 10-K131 JPMorgan Chase & Co./2025 Form 10-K 131 --- ## Modified Risk: Interest rates and interest differential analysis of net interest income - U.S. and non-U.S. **Key changes:** - Updated: "operations for the years 2023 through 2025." - Updated: "(Table continued on next page)2025(Unaudited)Year ended December 31,(Taxable-equivalent interest and rates; in millions, except rates)Average balanceInterestRateInterest-earning assetsDeposits with banks:U.S.$160,453 $6,960 4.34 %Non-U.S.225,931 6,139 2.72 Federal funds sold and securities purchased under resale agreements:U.S.218,450 10,004 4.58 Non-U.S.172,948 6,702 3.88 Securities borrowed:U.S.185,559 7,265 3.92 Non-U.S.57,229 1,762 3.08 Trading assets - debt instruments: U.S.369,664 16,255 4.40 Non-U.S.195,613 8,686 4.44 Investment securities:U.S.684,466 26,173 3.82 Non-U.S.53,494 2,025 3.79 Loans:U.S.1,271,393 87,196 6.86 Non-U.S.128,655 6,860 5.33 All other interest-earning assets, largely U.S.(a)110,504 7,739 7.00 Total interest-earning assets3,834,359 193,766 5.05 Interest-bearing liabilitiesInterest-bearing deposits:U.S.1,419,647 31,625 2.23 Non-U.S.482,735 13,487 2.79 Federal funds purchased and securities loaned or sold under repurchase agreements:U.S.412,269 18,247 4.43 Non-U.S.115,240 4,164 3.61 Trading liabilities - debt, short-term and all other interest-bearing liabilities:U.S.215,043 7,113 3.31 Non-U.S.141,009 4,150 2.94 Beneficial interests issued by consolidated VIEs, predominantly U.S.27,052 1,218 4.50 Long-term debt:U.S.341,531 17,612 5.16 Non-U.S.9,407 282 3.00 Total interest-bearing liabilities3,163,933 97,898 3.09 Noninterest-bearing liabilities(b)670,426 Total investable funds$3,834,359 $97,898 2.55 %Net interest income and net yield:$95,868 2.50 %U.S.82,547 2.80 Non-U.S.13,321 1.51 Percentage of total assets and liabilities attributable to non-U.S." **Prior (2025):** Presented below is a summary of interest and rates segregated between U.S. and non-U.S. operations for the years 2022 through 2024. The segregation of U.S. and non-U.S. components is based on the location of the office recording the transaction. (Table continued on next page)2024(Unaudited)Year ended December 31,(Taxable-equivalent interest and rates; in millions, except rates)Average balanceInterestRateInterest-earning assetsDeposits with banks:U.S.$284,913 $15,157 5.32 %Non-U.S.205,292 7,140 3.48 Federal funds sold and securities purchased under resale agreements:U.S.193,210 10,686 5.53 Non-U.S.165,987 7,613 4.59 Securities borrowed:U.S.150,251 7,330 4.88 Non-U.S.59,493 1,878 3.16 Trading assets - debt instruments: U.S.309,568 13,579 4.39 Non-U.S.146,461 6,794 4.64 Investment securities:U.S.567,784 21,458 3.78 Non-U.S.43,457 1,882 4.33 Loans:U.S.1,211,978 85,621 7.06 Non-U.S.110,447 6,967 6.31 All other interest-earning assets, predominantly U.S.(a)88,726 8,305 9.36 Total interest-earning assets3,537,567 194,410 5.50 Interest-bearing liabilitiesInterest-bearing deposits:U.S.1,307,000 33,173 2.54 Non-U.S.441,050 16,386 3.72 Federal funds purchased and securities loaned or sold under repurchase agreements:U.S.294,476 15,949 5.42 Non-U.S.69,344 3,200 4.61 Trading liabilities - debt, short-term and all other interest-bearing liabilities:U.S.222,710 8,289 3.72 Non-U.S.130,937 4,050 3.09 Beneficial interests issued by consolidated VIEs, predominantly U.S.26,515 1,383 5.22 Long-term debt:U.S.338,166 18,760 5.55 Non-U.S.6,180 160 2.59 Total interest-bearing liabilities2,836,378 101,350 3.57 Noninterest-bearing liabilities(b)701,189 Total investable funds$3,537,567 $101,350 2.86 %Net interest income and net yield:$93,060 2.63 %U.S.80,913 2.92 Non-U.S.12,147 1.58 Percentage of total assets and liabilities attributable to non-U.S. operations:Assets24.3 Liabilities20.5 **Current (2026):** Presented below is a summary of interest and rates segregated between U.S. and non-U.S. operations for the years 2023 through 2025. The segregation of U.S. and non-U.S. components is based on the location of the office recording the transaction. (Table continued on next page)2025(Unaudited)Year ended December 31,(Taxable-equivalent interest and rates; in millions, except rates)Average balanceInterestRateInterest-earning assetsDeposits with banks:U.S.$160,453 $6,960 4.34 %Non-U.S.225,931 6,139 2.72 Federal funds sold and securities purchased under resale agreements:U.S.218,450 10,004 4.58 Non-U.S.172,948 6,702 3.88 Securities borrowed:U.S.185,559 7,265 3.92 Non-U.S.57,229 1,762 3.08 Trading assets - debt instruments: U.S.369,664 16,255 4.40 Non-U.S.195,613 8,686 4.44 Investment securities:U.S.684,466 26,173 3.82 Non-U.S.53,494 2,025 3.79 Loans:U.S.1,271,393 87,196 6.86 Non-U.S.128,655 6,860 5.33 All other interest-earning assets, largely U.S.(a)110,504 7,739 7.00 Total interest-earning assets3,834,359 193,766 5.05 Interest-bearing liabilitiesInterest-bearing deposits:U.S.1,419,647 31,625 2.23 Non-U.S.482,735 13,487 2.79 Federal funds purchased and securities loaned or sold under repurchase agreements:U.S.412,269 18,247 4.43 Non-U.S.115,240 4,164 3.61 Trading liabilities - debt, short-term and all other interest-bearing liabilities:U.S.215,043 7,113 3.31 Non-U.S.141,009 4,150 2.94 Beneficial interests issued by consolidated VIEs, predominantly U.S.27,052 1,218 4.50 Long-term debt:U.S.341,531 17,612 5.16 Non-U.S.9,407 282 3.00 Total interest-bearing liabilities3,163,933 97,898 3.09 Noninterest-bearing liabilities(b)670,426 Total investable funds$3,834,359 $97,898 2.55 %Net interest income and net yield:$95,868 2.50 %U.S.82,547 2.80 Non-U.S.13,321 1.51 Percentage of total assets and liabilities attributable to non-U.S. operations:Assets25.3 Liabilities22.0 --- ## Modified Risk: The effects of climate change could adversely affect JPMorganChase's business and operations, both directly and as a result of impacts on its clients and customers. **Key changes:** - Updated: "Both physical risks and transition risks associated with climate change could negatively impact JPMorganChase and its clients and customers." **Prior (2025):** JPMorganChase operates in many regions, countries and communities around the world where its business, and the activities of its clients and customers, could be adversely affected by climate change. Climate change could manifest as a financial risk to JPMorganChase either through changes in the physical climate or from the process of transitioning to a lower-carbon economy. Both physical risks and transition risks associated with climate change could have negative impacts on the financial condition or creditworthiness of JPMorganChase's clients and customers, on JPMorganChase's exposure to affected companies and markets, and on the effectiveness of JPMorganChase's existing business strategy with respect to its operations, clients and customers. Physical risks include the increased frequency or severity of acute weather events, such as floods, wildfires and tropical cyclones, and chronic shifts in the climate, such as rising sea levels, persistent changes in precipitation levels, or increases in average ambient temperatures. Potential adverse impacts of climate-related physical risks to JPMorganChase, its clients or customers include: •declines in asset values, including due to the destruction or degradation of property •reduced availability or increased cost of insurance for clients of JPMorganChase •interruptions to business operations, including supply chain disruption, and •population migration or unemployment in affected regions. Transition risks arise from the financial and economic consequences of society's shift towards a lower-carbon economy, such as changes in public policy, adoption of new technologies or changes in consumer preferences towards low-carbon goods and services. These risks could also be influenced by changes in the physical climate. Potential adverse impacts of transition risks to JPMorganChase, its clients or customers include: •sudden devaluation of assets, including unanticipated write-downs ("stranded assets") •increased operational and compliance costs driven by changes in climate policy •increased energy costs driven by governmental actions and initiatives such as emission pricing and accelerated decarbonization policies•negative consequences to business models, and the need to make changes in response to those consequences, and•damage to JPMorganChase's reputation, including due to any perception that its business practices are contrary to public policy or the preferences of different stakeholders. Climate risks can also arise from inconsistencies and conflicts in the manner in which climate policy and financial regulations are implemented in the many regions where JPMorganChase operates, including initiatives to apply and enforce policy and regulation with extraterritorial effect. Additionally, internal models and estimations used in climate risk assessments have an increased level of uncertainty due to limited historical trend information and the absence of standardized, reliable and comprehensive greenhouse gas emissions data, which could lead to inaccurate disclosures or financial reporting. ConductConduct failure by JPMorganChase employees can harm clients and customers, impact market integrity, damage JPMorganChase's reputation and trigger litigation and regulatory action.JPMorganChase's employees interact with clients, customers, counterparties and other market and industry participants, and with each other, every day. All employees are expected to demonstrate values and exhibit the behaviors that are an integral part of JPMorganChase's Code of Conduct and Business Principles. JPMorganChase endeavors to embed conduct risk management throughout an employee's life cycle, including recruiting, onboarding, training and development, and performance management. Conduct risk management is also an integral component of JPMorganChase's promotion and compensation processes.Notwithstanding these expectations, policies and practices, certain employees have engaged in improper or illegal conduct in the past. These instances of misconduct have resulted in litigation, and resolutions of governmental investigations or enforcement actions involving consent orders, deferred prosecution agreements, non-prosecution agreements and other civil or criminal sanctions. There is no assurance that further inappropriate or unlawful actions by employees have not occurred or will not occur, lead to a violation of the terms of these resolutions (and associated consequences), or that any such actions will always be detected, deterred or prevented.JPMorganChase's reputation could be harmed by, and collateral consequences could result from, a failure by •increased energy costs driven by governmental actions and initiatives such as emission pricing and accelerated decarbonization policies •negative consequences to business models, and the need to make changes in response to those consequences, and •damage to JPMorganChase's reputation, including due to any perception that its business practices are contrary to public policy or the preferences of different stakeholders. Climate risks can also arise from inconsistencies and conflicts in the manner in which climate policy and financial regulations are implemented in the many regions where JPMorganChase operates, including initiatives to apply and enforce policy and regulation with extraterritorial effect. Additionally, internal models and estimations used in climate risk assessments have an increased level of uncertainty due to limited historical trend information and the absence of standardized, reliable and comprehensive greenhouse gas emissions data, which could lead to inaccurate disclosures or financial reporting. Conduct **Current (2026):** Both physical risks and transition risks associated with climate change could negatively impact JPMorganChase and its clients and customers. Physical risks include the increased frequency or severity of acute weather events and shifting climate patterns, which may lead to lower asset values, increased insurance costs, and business and supply chain disruptions. Transition risks, including evolving regulatory requirements, carbon taxes and the adoption of new technologies to support lower-carbon operations, may increase compliance and operational costs, contribute to commodity price volatility and impact the profitability of clients and customers that are adapting to a low-carbon economy. Any of these impacts could have a negative effect on the financial condition of JPMorganChase, the financial condition or creditworthiness of JPMorganChase's clients and customers, JPMorganChase's exposure to affected companies and markets, or the effectiveness of JPMorganChase's existing business strategy. ConductConduct failure by JPMorganChase employees could trigger litigation and regulatory actions and harm JPMorganChase's reputation.JPMorganChase expects its employees to conduct themselves ethically and in compliance with JPMorganChase's Code of Conduct, as well as with internal policies and applicable laws and regulations. Notwithstanding these expectations, employees of JPMorganChase have in the past engaged and could in the future engage in improper or illegal conduct. These instances of misconduct have resulted and could in the future result in litigation and resolutions of investigations or enforcement actions by governmental authorities involving consent orders, deferred prosecution agreements, non-prosecution agreements and other civil or criminal sanctions and penalties. In addition, employee misconduct could lead to higher operational and compliance costs, harm JPMorganChase's reputation and result in collateral consequences for its business and operations. The foregoing risks could be heightened with respect to newly-acquired businesses if JPMorganChase fails to successfully integrate employees of those businesses or any of those employees engage in misconduct.ReputationDamage to JPMorganChase's reputation could negatively affect its business, results and prospects.Maintaining the trust, affinity and goodwill of clients, customers, employees and investors is critical to JPMorganChase's ability to operate its business successfully. JPMorganChase's reputation could be harmed by its decisions to engage or not engage with a client or in a business activity that lead to negative commercial impacts, and could also be compromised by:•inaccurate or misleading information about JPMorganChase or its clients, including results generated by AI, that is rapidly and broadly disseminated through any form of media, including social networking sites, and•concerns that JPMorganChase has treated certain clients or customers unfairlyEvents or circumstances that damage JPMorganChase's reputation could also negatively affect its business, results of operations and prospects, and could result in:•greater scrutiny from governmental authorities or criticism from politicians, including in the form of investigations by governmental authorities or litigation•unfavorable media coverage or commentary, including through social media campaigns Conduct --- ## Modified Risk: Other expense **Key changes:** - Updated: "Other expense on the Firm's Consolidated statements of income included: Year ended December 31, (in millions)202520242023Legal expense$361 $740 $1,436 FDIC-related expense(a)531 1,893 4,203 Operating losses1,292 1,417 1,228 Contribution of Visa shares - 1,000 (b) - FDIC-related expense(a) Contribution of Visa shares (b) (a) Included FDIC special assessment accrual releases of $763 million and an accrual increase of $725 million for the years ended December 31, 2025 and 2024, respectively, which are adjustments to the initial $2.9 billion estimate recorded in the fourth quarter of 2023." - Updated: "JPMorgan Chase & Co./2025 Form 10-K221 JPMorgan Chase & Co./2025 Form 10-K221 JPMorgan Chase & Co./2025 Form 10-K221 JPMorgan Chase & Co./2025 Form 10-K 221" **Prior (2025):** Other expense on the Firm's Consolidated statements of income included: Year ended December 31, (in millions)202420232022Legal expense$740 $1,436 $266 FDIC-related expense 1,893 (c)4,203 (c)860 Operating losses1,417 1,228 1,101 Contribution of Visa shares(a)1,000 - - First Republic-related expense(b)777 1,060 - (c) (c) Contribution of Visa shares(a) First Republic-related expense(b) (a) Represents the contribution of a portion of Visa C shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024. Refer to Note 2 for additional information. (b) Reflects the expenses classified within other expense, including $488 million and $360 million of integration and restructuring costs associated with First Republic for the full years ended December 31, 2024 and 2023, respectively. Additionally, the second quarter of 2023 included payments to the FDIC for the First Republic individuals who were not employees of the Firm until July 2, 2023. Refer to Note 34 for additional information on the First Republic acquisition. (c) The first quarter of 2024 included an increase of $725 million to the FDIC special assessment reflecting the FDIC's revised estimate of Deposit Insurance Fund losses. The fourth quarter of 2023 included the $2.9 billion FDIC special assessment. Refer to Note 32 for additional information on noninterest revenue and expense by segment. 228JPMorgan Chase & Co./2024 Form 10-K 228JPMorgan Chase & Co./2024 Form 10-K 228JPMorgan Chase & Co./2024 Form 10-K 228 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** Other expense on the Firm's Consolidated statements of income included: Year ended December 31, (in millions)202520242023Legal expense$361 $740 $1,436 FDIC-related expense(a)531 1,893 4,203 Operating losses1,292 1,417 1,228 Contribution of Visa shares - 1,000 (b) - FDIC-related expense(a) Contribution of Visa shares (b) (a) Included FDIC special assessment accrual releases of $763 million and an accrual increase of $725 million for the years ended December 31, 2025 and 2024, respectively, which are adjustments to the initial $2.9 billion estimate recorded in the fourth quarter of 2023. (b) Represents the contribution of a portion of Visa C shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024. Refer to Note 32 for additional information on noninterest revenue and expense by segment. JPMorgan Chase & Co./2025 Form 10-K221 JPMorgan Chase & Co./2025 Form 10-K221 JPMorgan Chase & Co./2025 Form 10-K221 JPMorgan Chase & Co./2025 Form 10-K 221 --- ## Modified Risk: Estimated future benefit payments **Key changes:** - Updated: "Year ended December 31,(in millions)2026$2,253 20271,074 20281,061 20291,031 20301,017 Years 2031-20354,834 JPMorgan Chase & Co./2025 Form 10-K225 JPMorgan Chase & Co./2025 Form 10-K225 JPMorgan Chase & Co./2025 Form 10-K225 JPMorgan Chase & Co./2025 Form 10-K 225" **Prior (2025):** The following table presents benefit payments expected to be paid for the defined benefit pension and OPEB plans for the years indicated. Year ended December 31,(in millions)2025$1,186 20261,155 20271,134 20281,095 20291,093 Years 2030-20345,229 232JPMorgan Chase & Co./2024 Form 10-K 232JPMorgan Chase & Co./2024 Form 10-K 232JPMorgan Chase & Co./2024 Form 10-K 232 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** The following table presents benefit payments expected to be paid for the defined benefit pension and OPEB plans for the years indicated. Year ended December 31,(in millions)2026$2,253 20271,074 20281,061 20291,031 20301,017 Years 2031-20354,834 JPMorgan Chase & Co./2025 Form 10-K225 JPMorgan Chase & Co./2025 Form 10-K225 JPMorgan Chase & Co./2025 Form 10-K225 JPMorgan Chase & Co./2025 Form 10-K 225 --- ## Modified Risk: Loan modifications **Key changes:** - Updated: "For the years ended December 31, 2025, 2024 and 2023 retained auto and other FDMs were not material." **Prior (2025):** The Firm grants certain modifications of auto and other loans to borrowers experiencing financial difficulty. For the years ended December 31, 2024 and 2023, retained auto and other FDMs were not material. As of December 31, 2024 and 2023, there were no additional commitments to lend to borrowers modified as FDMs. For periods ending prior to January 1, 2023, modifications of auto and other loans where the Firm granted concessions to borrowers who were experiencing financial difficulty were generally accounted for and reported as TDRs. Loans with short-term or other insignificant modifications that were not considered concessions were not TDRs. For the year ended December 31, 2022, auto and other TDRs were not material. 254JPMorgan Chase & Co./2024 Form 10-K 254JPMorgan Chase & Co./2024 Form 10-K 254JPMorgan Chase & Co./2024 Form 10-K 254 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** The Firm grants certain modifications of auto and other loans to borrowers experiencing financial difficulty. For the years ended December 31, 2025, 2024 and 2023 retained auto and other FDMs were not material. As of December 31, 2025 and 2024, there were no additional unfunded commitments to lend to borrowers experiencing financial difficulty whose loans have been modified as FDMs. 246JPMorgan Chase & Co./2025 Form 10-K 246JPMorgan Chase & Co./2025 Form 10-K 246JPMorgan Chase & Co./2025 Form 10-K 246 JPMorgan Chase & Co./2025 Form 10-K --- ## Modified Risk: Expense categories: **Key changes:** - Updated: "•Investments in the business include expenses associated with supporting medium- to longer-term JPMorgan Chase & Co./2025 Form 10-K321 JPMorgan Chase & Co./2025 Form 10-K321 JPMorgan Chase & Co./2025 Form 10-K321 JPMorgan Chase & Co./2025 Form 10-K 321" **Prior (2025):** •Volume- and/or revenue-related expenses generally correlate with changes in the related business/transaction volume or revenue. Examples include commissions and incentive compensation within the LOBs, depreciation expense related to operating lease assets, and brokerage expense related to trading transaction volume. •Investments in the business include expenses associated with supporting medium- to longer-term strategic plans of the Firm. Examples include front office growth, market expansion, initiatives in technology (including related compensation), marketing, and acquisitions. •Structural expenses are those associated with the day-to-day cost of running the Firm and are expenses not included in the above two categories. Examples include employee salaries and benefits, certain other incentive compensation, and costs related to real estate. Fannie Mae: Federal National Mortgage Association FASB: Financial Accounting Standards Board FCA: Financial Conduct Authority FCC: Firmwide Control Committee FDIC: Federal Deposit Insurance Corporation FDM: "Financial difficulty modification" applies to loan modifications effective January 1, 2023, and is deemed 328JPMorgan Chase & Co./2024 Form 10-K 328JPMorgan Chase & Co./2024 Form 10-K 328JPMorgan Chase & Co./2024 Form 10-K 328 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** •Volume- and/or revenue-related expenses generally correlate with changes in the related business/transaction volume or revenue. Examples include commissions and incentive compensation within the LOBs, depreciation expense related to operating lease assets, and brokerage expense related to trading transaction volume. •Investments in the business include expenses associated with supporting medium- to longer-term JPMorgan Chase & Co./2025 Form 10-K321 JPMorgan Chase & Co./2025 Form 10-K321 JPMorgan Chase & Co./2025 Form 10-K321 JPMorgan Chase & Co./2025 Form 10-K 321 --- ## Modified Risk: Various factors could impact JPMorganChase's workforce. **Key changes:** - Updated: "JPMorganChase's efforts to hire and retain talented employees could be hindered by factors such as: •the emerging need for more-skilled workers in an evolving workplace environment, and •targeted recruitment of JPMorganChase employees by competitors." **Prior (2025):** JPMorganChase's employees are its most important resource, and in many areas of the financial services industry, competition for qualified personnel is intense. JPMorganChase endeavors to attract talented new employees from a variety of backgrounds and retain, develop and motivate its existing employees. JPMorganChase's efforts to hire and retain talented employees could be hindered by factors such as: •the emerging need for more-skilled workers in an evolving labor and workplace environment, including due to changes in technology •targeted recruitment of JPMorganChase employees by competitors, and •modifications to or discontinuation of JPMorganChase's hybrid work models. JPMorganChase's performance and competitive position could be materially and adversely affected if it is unable to attract or retain qualified employees for its workforce or to devise and execute effective succession planning for key leadership roles, such as the Chief Executive Officer, members of the Operating Committee and other senior leaders. In addition, advances in technology, such as automation and artificial intelligence, may lead to workforce displacement. This could require JPMorganChase to invest in additional employee training, manage impacts on morale and retention, and compete for employment candidates who possess more advanced technological skills, all of which could have a negative impact on JPMorganChase's business and operations. Unfavorable changes in immigration or travel policies could adversely affect JPMorganChase's businesses and operations.JPMorganChase relies on the skills, knowledge and expertise of employees located throughout the world. Changes in immigration or travel policies in the U.S. and other countries that unduly restrict or otherwise make it more difficult for employees or their family members to work in, or travel to or transfer between, jurisdictions in which JPMorganChase has operations or conducts its business could inhibit JPMorganChase's ability to attract and retain qualified employees, and thereby dilute the quality of its workforce, or could prompt JPMorganChase to make structural changes to its worldwide or regional operating models that cause its operations to be less efficient or more costly.LegalJPMorganChase faces significant legal risks from litigation and formal and informal regulatory and government investigations.JPMorganChase is named as a defendant or is otherwise involved in many legal proceedings, including class actions, derivative actions and other litigation or disputes with third parties, as well as criminal proceedings. Actions currently pending against JPMorganChase may result in judgments, settlements, fines, penalties or other sanctions adverse to JPMorganChase. Any of these matters could materially and adversely affect JPMorganChase's business, financial condition or results of operations, or cause serious reputational harm. As a participant in the financial services industry, it is likely that JPMorganChase will continue to experience a high level of litigation and regulatory and government investigations related to its businesses and operations.Regulators and other government agencies conduct examinations of JPMorganChase and its subsidiaries both on a routine basis and in targeted exams, and JPMorganChase's businesses and operations are subject to heightened regulatory oversight. This heightened regulatory scrutiny, or the results of such an investigation or examination, may lead to additional regulatory investigations or enforcement actions. There is no assurance that those actions will not result in resolutions or other enforcement actions against JPMorganChase. Furthermore, a single event involving a potential violation of law or regulation may give rise to numerous and overlapping investigations and proceedings, either by multiple federal, state or local agencies and officials in the U.S. or, in some instances, regulators and other governmental officials in non-U.S. jurisdictions. have a negative impact on JPMorganChase's business and operations. **Current (2026):** JPMorganChase's efforts to hire and retain talented employees could be hindered by factors such as: •the emerging need for more-skilled workers in an evolving workplace environment, and •targeted recruitment of JPMorganChase employees by competitors. JPMorganChase's performance and competitive position could be materially and adversely affected if it is unable to attract or retain qualified employees or to effectively manage succession planning for key leadership roles, such as the Chief Executive Officer, members of the Operating Committee and other senior leaders. In addition, restrictive immigration or travel policies in the U.S. and other countries could inhibit JPMorganChase's ability to attract and retain qualified employees, or necessitate adjustments to operating models that could reduce operational efficiency or increase costs. Advances in technology, such as automation, AI and data science, could lead to workforce displacement. This could require JPMorganChase to invest in additional employee training, manage impacts on morale and retention, and compete for employment candidates who possess more advanced technological skills, all of which could have a negative impact on JPMorganChase's business and operations. 31 31 31 31 --- ## Modified Risk: Notes to consolidated financial statements **Key changes:** - Updated: "The following table outlines the Firm's primary uses of derivatives and the related hedge accounting designation or disclosure category." - Updated: "Notional amount of derivative contracts The following table summarizes the notional amount of free-standing derivative contracts outstanding as of December 31, 2025 and 2024.Notional amounts(b)December 31, (in billions)20252024Interest rate contractsSwaps$19,056 $20,437 Futures and forwards3,305 3,067 Written options3,775 3,067 Purchased options3,400 3,089 Total interest rate contracts29,536 29,660 Credit derivatives(a)1,381 1,191 Foreign exchange contractsCross-currency swaps5,476 4,509 Spot, futures and forwards8,187 7,005 Written options979 1,015 Purchased options953 984 Total foreign exchange contracts15,595 13,513 Equity contractsSwaps1,147 850 Futures and forwards196 206 Written options1,118 914 Purchased options971 788 Total equity contracts3,432 2,758 Commodity contractsSwaps189 148 Spot, futures and forwards270 191 Written options119 137 Purchased options120 125 Total commodity contracts698 601 Total derivative notional amounts$50,642 $47,723 (a)Refer to the Credit derivatives discussion on pages 215-217 for more information on volumes and types of credit derivative contracts.(b)Represents the sum of gross long and gross short third-party notional derivative contracts.While the notional amounts disclosed above give an indication of the volume of the Firm's derivatives activity, the notional amounts significantly exceed, in the Firm's view, the possible losses that could arise from such transactions." - Updated: "Notional amount of derivative contracts The following table summarizes the notional amount of free-standing derivative contracts outstanding as of December 31, 2025 and 2024." **Prior (2025):** Notional amount of derivative contracts The following table summarizes the notional amount of free-standing derivative contracts outstanding as of December 31, 2024 and 2023.Notional amounts(b)December 31, (in billions)20242023Interest rate contractsSwaps$20,437 $23,251 Futures and forwards3,067 2,690 Written options3,067 3,370 Purchased options3,089 3,362 Total interest rate contracts29,660 32,673 Credit derivatives(a)1,191 1,045 Foreign exchange contractsCross-currency swaps4,509 4,721 Spot, futures and forwards7,005 6,957 Written options1,015 830 Purchased options984 798 Total foreign exchange contracts13,513 13,306 Equity contractsSwaps850 639 Futures and forwards206 157 Written options914 778 Purchased options788 698 Total equity contracts2,758 2,272 Commodity contractsSwaps148 115 Spot, futures and forwards191 157 Written options137 130 Purchased options125 115 Total commodity contracts601 517 Total derivative notional amounts$47,723 $49,813 (a)Refer to the Credit derivatives discussion on pages 222-224 for more information on volumes and types of credit derivative contracts.(b)Represents the sum of gross long and gross short third-party notional derivative contracts.While the notional amounts disclosed above give an indication of the volume of the Firm's derivatives activity, the notional amounts significantly exceed, in the Firm's view, the possible losses that could arise from such transactions. For most derivative contracts, the notional amount is not exchanged; it is simply a reference amount used to calculate payments. Notional amount of derivative contracts The following table summarizes the notional amount of free-standing derivative contracts outstanding as of December 31, 2024 and 2023.Notional amounts(b)December 31, (in billions)20242023Interest rate contractsSwaps$20,437 $23,251 Futures and forwards3,067 2,690 Written options3,067 3,370 Purchased options3,089 3,362 Total interest rate contracts29,660 32,673 Credit derivatives(a)1,191 1,045 Foreign exchange contractsCross-currency swaps4,509 4,721 Spot, futures and forwards7,005 6,957 Written options1,015 830 Purchased options984 798 Total foreign exchange contracts13,513 13,306 Equity contractsSwaps850 639 Futures and forwards206 157 Written options914 778 Purchased options788 698 Total equity contracts2,758 2,272 Commodity contractsSwaps148 115 Spot, futures and forwards191 157 Written options137 130 Purchased options125 115 Total commodity contracts601 517 Total derivative notional amounts$47,723 $49,813 (a)Refer to the Credit derivatives discussion on pages 222-224 for more information on volumes and types of credit derivative contracts.(b)Represents the sum of gross long and gross short third-party notional derivative contracts.While the notional amounts disclosed above give an indication of the volume of the Firm's derivatives activity, the notional amounts significantly exceed, in the Firm's view, the possible losses that could arise from such transactions. For most derivative contracts, the notional amount is not exchanged; it is simply a reference amount used to calculate payments. Notional amount of derivative contracts The following table summarizes the notional amount of free-standing derivative contracts outstanding as of December 31, 2024 and 2023. Notional amounts(b)December 31, (in billions)20242023Interest rate contractsSwaps$20,437 $23,251 Futures and forwards3,067 2,690 Written options3,067 3,370 Purchased options3,089 3,362 Total interest rate contracts29,660 32,673 Credit derivatives(a)1,191 1,045 Foreign exchange contractsCross-currency swaps4,509 4,721 Spot, futures and forwards7,005 6,957 Written options1,015 830 Purchased options984 798 Total foreign exchange contracts13,513 13,306 Equity contractsSwaps850 639 Futures and forwards206 157 Written options914 778 Purchased options788 698 Total equity contracts2,758 2,272 Commodity contractsSwaps148 115 Spot, futures and forwards191 157 Written options137 130 Purchased options125 115 Total commodity contracts601 517 Total derivative notional amounts$47,723 $49,813 Notional amounts(b) Swaps Futures and forwards Written options Purchased options **Current (2026):** The following table outlines the Firm's primary uses of derivatives and the related hedge accounting designation or disclosure category. Type of DerivativeUse of DerivativeDesignation and disclosureAffected segment or unitPage referenceManage specifically identified risk exposures in qualifying hedge accounting relationships:•Interest rateHedge fixed rate assets and liabilitiesFair value hedgeCorporate211-212•Interest rateHedge floating-rate assets and liabilitiesCash flow hedgeCorporate213•Foreign exchange Hedge foreign currency-denominated assets and liabilitiesFair value hedgeCorporate211-212•Foreign exchange Hedge foreign currency-denominated forecasted revenue and expenseCash flow hedgeCorporate213•Foreign exchange Hedge the value of the Firm's investments in non-U.S. dollar functional currency entitiesNet investment hedgeCorporate214•Commodity Hedge commodity inventoryFair value hedgeCIB, AWM211-212Manage specifically identified risk exposures not designated in qualifying hedge accounting relationships:•Interest rateManage the risk associated with mortgage commitments, warehouse loans and MSRsSpecified risk managementCCB214•CreditManage the credit risk associated with wholesale lending exposuresSpecified risk managementCIB, AWM214•Interest rate and foreign exchangeManage the risk associated with certain other specified assets and liabilitiesSpecified risk managementCorporate, CIB214Market-making derivatives and other activities:•VariousMarket-making and related risk managementMarket-making and otherCIB214•VariousOther derivativesMarket-making and otherCIB, AWM, Corporate214 •Interest rate Corporate •Interest rate Corporate •Foreign exchange Hedge foreign currency-denominated assets and liabilities Fair value hedge Corporate •Foreign exchange Hedge foreign currency-denominated forecasted revenue and expense Corporate •Foreign exchange Hedge the value of the Firm's investments in non-U.S. dollar functional currency entities Net investment hedge Corporate •Commodity Fair value hedge Manage specifically identified risk exposures not designated in qualifying hedge accounting relationships: •Interest rate Manage the risk associated with mortgage commitments, warehouse loans and MSRs •Credit Manage the credit risk associated with wholesale lending exposures Specified risk management CIB, AWM •Interest rate and foreign exchange Specified risk management Corporate, CIB Market-making derivatives and other activities: •Various Market-making and other •Various Market-making and other 204JPMorgan Chase & Co./2025 Form 10-K 204JPMorgan Chase & Co./2025 Form 10-K 204JPMorgan Chase & Co./2025 Form 10-K 204 JPMorgan Chase & Co./2025 Form 10-K Notional amount of derivative contracts The following table summarizes the notional amount of free-standing derivative contracts outstanding as of December 31, 2025 and 2024.Notional amounts(b)December 31, (in billions)20252024Interest rate contractsSwaps$19,056 $20,437 Futures and forwards3,305 3,067 Written options3,775 3,067 Purchased options3,400 3,089 Total interest rate contracts29,536 29,660 Credit derivatives(a)1,381 1,191 Foreign exchange contractsCross-currency swaps5,476 4,509 Spot, futures and forwards8,187 7,005 Written options979 1,015 Purchased options953 984 Total foreign exchange contracts15,595 13,513 Equity contractsSwaps1,147 850 Futures and forwards196 206 Written options1,118 914 Purchased options971 788 Total equity contracts3,432 2,758 Commodity contractsSwaps189 148 Spot, futures and forwards270 191 Written options119 137 Purchased options120 125 Total commodity contracts698 601 Total derivative notional amounts$50,642 $47,723 (a)Refer to the Credit derivatives discussion on pages 215-217 for more information on volumes and types of credit derivative contracts.(b)Represents the sum of gross long and gross short third-party notional derivative contracts.While the notional amounts disclosed above give an indication of the volume of the Firm's derivatives activity, the notional amounts significantly exceed, in the Firm's view, the possible losses that could arise from such transactions. For most derivative contracts, the notional amount is not exchanged; it is simply a reference amount used to calculate payments. Notional amount of derivative contracts The following table summarizes the notional amount of free-standing derivative contracts outstanding as of December 31, 2025 and 2024.Notional amounts(b)December 31, (in billions)20252024Interest rate contractsSwaps$19,056 $20,437 Futures and forwards3,305 3,067 Written options3,775 3,067 Purchased options3,400 3,089 Total interest rate contracts29,536 29,660 Credit derivatives(a)1,381 1,191 Foreign exchange contractsCross-currency swaps5,476 4,509 Spot, futures and forwards8,187 7,005 Written options979 1,015 Purchased options953 984 Total foreign exchange contracts15,595 13,513 Equity contractsSwaps1,147 850 Futures and forwards196 206 Written options1,118 914 Purchased options971 788 Total equity contracts3,432 2,758 Commodity contractsSwaps189 148 Spot, futures and forwards270 191 Written options119 137 Purchased options120 125 Total commodity contracts698 601 Total derivative notional amounts$50,642 $47,723 (a)Refer to the Credit derivatives discussion on pages 215-217 for more information on volumes and types of credit derivative contracts.(b)Represents the sum of gross long and gross short third-party notional derivative contracts.While the notional amounts disclosed above give an indication of the volume of the Firm's derivatives activity, the notional amounts significantly exceed, in the Firm's view, the possible losses that could arise from such transactions. For most derivative contracts, the notional amount is not exchanged; it is simply a reference amount used to calculate payments. Notional amount of derivative contracts The following table summarizes the notional amount of free-standing derivative contracts outstanding as of December 31, 2025 and 2024. Notional amounts(b)December 31, (in billions)20252024Interest rate contractsSwaps$19,056 $20,437 Futures and forwards3,305 3,067 Written options3,775 3,067 Purchased options3,400 3,089 Total interest rate contracts29,536 29,660 Credit derivatives(a)1,381 1,191 Foreign exchange contractsCross-currency swaps5,476 4,509 Spot, futures and forwards8,187 7,005 Written options979 1,015 Purchased options953 984 Total foreign exchange contracts15,595 13,513 Equity contractsSwaps1,147 850 Futures and forwards196 206 Written options1,118 914 Purchased options971 788 Total equity contracts3,432 2,758 Commodity contractsSwaps189 148 Spot, futures and forwards270 191 Written options119 137 Purchased options120 125 Total commodity contracts698 601 Total derivative notional amounts$50,642 $47,723 Notional amounts(b) Swaps Futures and forwards Written options Purchased options --- ## Modified Risk: Maturities and sensitivity to changes in interest rates **Key changes:** - Updated: "December 31, 2025(in millions) 1 year or less(b)After 1 year through 5 yearsAfter 5 years through 15 yearsAfter 15 yearsTotalWholesale loans:Secured by real estate$13,998 $66,811 $60,499 $38,638 $179,946 Commercial and industrial52,480 118,190 18,486 156 189,312 Other217,587 203,197 45,169 8,163 474,116 Total wholesale loans$284,065 $388,198 $124,154 $46,957 $843,374 Loans due after one year at fixed interest ratesSecured by real estate$14,737 $14,356 $915 Commercial and industrial5,728 2,109 7 Other28,116 15,459 4,797 Loans due after one year at variable interest rates(a)Secured by real estate$52,074 $46,143 $37,722 Commercial and industrial112,463 16,377 148 Other175,080 29,710 3,368 Total wholesale loans$388,198 $124,154 $46,957" **Prior (2025):** The table below sets forth wholesale loan maturities and the distribution between fixed and floating interest rates based on the stated terms of the loan agreements by loan class. Refer to Note 12 for further information on loan classes. December 31, 2024(in millions, except ratios) 1 year or less(b)After 1 year through 5 yearsAfter 5 years through 15 yearsAfter 15 yearsTotalWholesale loans:Secured by real estate$12,474 $57,125 $57,967 $42,597 $170,163 Commercial and industrial55,731 109,839 8,587 94 174,251 Other182,722 150,346 36,281 8,555 377,904 Total wholesale loans$250,927 $317,310 $102,835 $51,246 $722,318 Loans due after one year at fixed interest ratesSecured by real estate$13,119 $17,943 $935 Commercial and industrial3,964 1,231 7 Other26,929 15,542 5,824 Loans due after one year at variable interest rates(a)Secured by real estate$44,006 $40,024 $41,662 Commercial and industrial105,875 7,356 87 Other123,417 20,739 2,731 Total wholesale loans$317,310 $102,835 $51,246 **Current (2026):** The table below sets forth wholesale loan maturities and the distribution between fixed and floating interest rates based on the stated terms of the loan agreements by loan class. Refer to Note 12 for further information on loan classes. December 31, 2025(in millions) 1 year or less(b)After 1 year through 5 yearsAfter 5 years through 15 yearsAfter 15 yearsTotalWholesale loans:Secured by real estate$13,998 $66,811 $60,499 $38,638 $179,946 Commercial and industrial52,480 118,190 18,486 156 189,312 Other217,587 203,197 45,169 8,163 474,116 Total wholesale loans$284,065 $388,198 $124,154 $46,957 $843,374 Loans due after one year at fixed interest ratesSecured by real estate$14,737 $14,356 $915 Commercial and industrial5,728 2,109 7 Other28,116 15,459 4,797 Loans due after one year at variable interest rates(a)Secured by real estate$52,074 $46,143 $37,722 Commercial and industrial112,463 16,377 148 Other175,080 29,710 3,368 Total wholesale loans$388,198 $124,154 $46,957 --- ## Modified Risk: Total assets acquired in loan satisfactions **Key changes:** - Updated: "Refer to Credit derivatives on page 128 and Note 5 for additional information." **Prior (2025):** Credit derivatives and credit-related notes used in credit portfolio management activities(b) (a)Receivables from customers reflect held-for-investment margin loans to brokerage clients in CIB, CCB and AWM; these are reported within accrued interest and accounts receivable on the Consolidated balance sheets. (b)Represents the net notional amount of protection purchased and sold through credit derivatives and credit-related notes used to manage both performing and nonperforming wholesale credit exposures; these derivatives do not qualify for hedge accounting under U.S. GAAP. Refer to Credit derivatives on page 136 and Note 5 for additional information. 126JPMorgan Chase & Co./2024 Form 10-K 126JPMorgan Chase & Co./2024 Form 10-K 126JPMorgan Chase & Co./2024 Form 10-K 126 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** Credit derivatives and credit-related notes used in credit portfolio management activities(b) (a)Receivables from customers reflect held-for-investment margin loans to brokerage clients in CIB, CCB and AWM; these are reported within accrued interest and accounts receivable on the Consolidated balance sheets. (b)Represents the net notional amount of protection purchased and sold through credit derivatives and credit-related notes used to manage both performing and nonperforming wholesale credit exposures; these derivatives do not qualify for hedge accounting under U.S. GAAP. Refer to Credit derivatives on page 128 and Note 5 for additional information. 118JPMorgan Chase & Co./2025 Form 10-K 118JPMorgan Chase & Co./2025 Form 10-K 118JPMorgan Chase & Co./2025 Form 10-K 118 JPMorgan Chase & Co./2025 Form 10-K --- ## Modified Risk: Statements of income and comprehensive income **Key changes:** - Updated: "Interest expense to subsidiaries and affiliates(a) Other interest expense(a) Balance sheetsDecember 31, (in millions)20252024AssetsCash and due from banks$39 $38 Deposits with banking subsidiaries(b)9,751 9,762 Trading assets - intercompany14,885 43,214 Advances to, and receivables from, subsidiaries:Bank and bank holding company136 142 Non-bank24 79 Investments (at equity) in subsidiaries and affiliates:Bank and bank holding company669,449 603,044 Non-bank1,223 1,238 Other assets14,537 12,097 Total assets$710,044 $669,614 Liabilities and stockholders' equityBorrowings from, and payables to, subsidiaries and affiliates$79,317 $72,881 Short-term borrowings - - Other liabilities13,656 12,349 Long-term debt(c)(d)254,633 239,626 Total liabilities(d)347,606 324,856 Total stockholders' equity362,438 344,758 Total liabilities and stockholders' equity$710,044 $669,614 Balance sheetsDecember 31, (in millions)20252024AssetsCash and due from banks$39 $38 Deposits with banking subsidiaries(b)9,751 9,762 Trading assets - intercompany14,885 43,214 Advances to, and receivables from, subsidiaries:Bank and bank holding company136 142 Non-bank24 79 Investments (at equity) in subsidiaries and affiliates:Bank and bank holding company669,449 603,044 Non-bank1,223 1,238 Other assets14,537 12,097 Total assets$710,044 $669,614 Liabilities and stockholders' equityBorrowings from, and payables to, subsidiaries and affiliates$79,317 $72,881 Short-term borrowings - - Other liabilities13,656 12,349 Long-term debt(c)(d)254,633 239,626 Total liabilities(d)347,606 324,856 Total stockholders' equity362,438 344,758 Total liabilities and stockholders' equity$710,044 $669,614 Deposits with banking subsidiaries(b) Long-term debt(c)(d)" **Prior (2025):** Interest expense/(income) to subsidiaries and affiliates(a) Other interest expense/(income)(a) Balance sheetsDecember 31, (in millions)20242023AssetsCash and due from banks$38 $42 Deposits with banking subsidiaries9,762 9,804 Trading assets43,214 3,198 Advances to, and receivables from, subsidiaries:Bank and bank holding company142 152 Non-bank79 21 Investments (at equity) in subsidiaries and affiliates:Bank and bank holding company603,044 568,472 Non-bank1,238 1,045 Other assets12,097 8,962 Total assets$669,614 $591,696 Liabilities and stockholders' equityBorrowings from, and payables to, subsidiaries and affiliates$72,881 $22,777 Short-term borrowings - 999 Other liabilities12,349 11,500 Long-term debt(b)(c)239,626 228,542 Total liabilities(c)324,856 263,818 Total stockholders' equity344,758 327,878 Total liabilities and stockholders' equity$669,614 $591,696 Balance sheetsDecember 31, (in millions)20242023AssetsCash and due from banks$38 $42 Deposits with banking subsidiaries9,762 9,804 Trading assets43,214 3,198 Advances to, and receivables from, subsidiaries:Bank and bank holding company142 152 Non-bank79 21 Investments (at equity) in subsidiaries and affiliates:Bank and bank holding company603,044 568,472 Non-bank1,238 1,045 Other assets12,097 8,962 Total assets$669,614 $591,696 Liabilities and stockholders' equityBorrowings from, and payables to, subsidiaries and affiliates$72,881 $22,777 Short-term borrowings - 999 Other liabilities12,349 11,500 Long-term debt(b)(c)239,626 228,542 Total liabilities(c)324,856 263,818 Total stockholders' equity344,758 327,878 Total liabilities and stockholders' equity$669,614 $591,696 Long-term debt(b)(c) **Current (2026):** Interest expense to subsidiaries and affiliates(a) Other interest expense(a) Balance sheetsDecember 31, (in millions)20252024AssetsCash and due from banks$39 $38 Deposits with banking subsidiaries(b)9,751 9,762 Trading assets - intercompany14,885 43,214 Advances to, and receivables from, subsidiaries:Bank and bank holding company136 142 Non-bank24 79 Investments (at equity) in subsidiaries and affiliates:Bank and bank holding company669,449 603,044 Non-bank1,223 1,238 Other assets14,537 12,097 Total assets$710,044 $669,614 Liabilities and stockholders' equityBorrowings from, and payables to, subsidiaries and affiliates$79,317 $72,881 Short-term borrowings - - Other liabilities13,656 12,349 Long-term debt(c)(d)254,633 239,626 Total liabilities(d)347,606 324,856 Total stockholders' equity362,438 344,758 Total liabilities and stockholders' equity$710,044 $669,614 Balance sheetsDecember 31, (in millions)20252024AssetsCash and due from banks$39 $38 Deposits with banking subsidiaries(b)9,751 9,762 Trading assets - intercompany14,885 43,214 Advances to, and receivables from, subsidiaries:Bank and bank holding company136 142 Non-bank24 79 Investments (at equity) in subsidiaries and affiliates:Bank and bank holding company669,449 603,044 Non-bank1,223 1,238 Other assets14,537 12,097 Total assets$710,044 $669,614 Liabilities and stockholders' equityBorrowings from, and payables to, subsidiaries and affiliates$79,317 $72,881 Short-term borrowings - - Other liabilities13,656 12,349 Long-term debt(c)(d)254,633 239,626 Total liabilities(d)347,606 324,856 Total stockholders' equity362,438 344,758 Total liabilities and stockholders' equity$710,044 $669,614 Deposits with banking subsidiaries(b) Long-term debt(c)(d) --- ## Modified Risk: Parallel shift: **Key changes:** - Updated: "dollar rates, including hedges of non-U.S." - Removed: "This inclusion had no impact on total sensitivities but increased U.S." - Removed: "dollar and decreased non-U.S." - Removed: "dollar sensitivities." - Removed: "Subsequent to this change, non-U.S." **Prior (2025):** (a)Reflects the simultaneous shift of U.S. dollar and non-U.S. dollar rates, and the inclusion of the hedges of non-U.S. dollar capital investments. This inclusion had no impact on total sensitivities but increased U.S. dollar and decreased non-U.S. dollar sensitivities. Subsequent to this change, non-U.S. dollar sensitivities were insignificant. (b)At December 31, 2023, represents the total of the Firm's U.S. dollar and non-U.S. dollar sensitivities as previously reported. The change in the Firm's sensitivities as of December 31, 2024, compared to December 31, 2023, were primarily driven by Treasury and CIO balance sheet actions where the Firm added duration through investment securities activity, cash flow hedges of retained loans and fair value hedges of Firm debt. The impact on the sensitivities of the Treasury and CIO balance sheet actions were largely offset by the impact of deposits, primarily from the second quarter of 2024 update of the deposit rates paid assumptions for certain consumer and wholesale deposit products. Additionally, the results as of December 31, 2024 reflected the update to include hedges of the Firm's non-U.S. dollar capital investments. Although total results were not impacted, these hedges increase U.S. dollar sensitivities and decrease non-U.S. dollar sensitivities. In the absence of these updates the Firm's sensitivities as of December 31, 2024, would have been different by the amounts reported in the following table: Amounts by which reported sensitivities would have been differentDecember 31, 2024(in billions)Impact from update in the second quarter of 2024Impact from update in the fourth quarter of 2024U.S. dollar:Parallel shift:+100 bps shift in rates$(1.0)$(0.6)-100 bps shift in rates0.9 0.6 +200 bps shift in rates(1.9)(1.3)-200 bps shift in rates1.5 1.3 Steeper yield curve:+100 bps shift in long-term rates - - -100 bps shift in short-term rates0.9 0.6 Flatter yield curve:+100 bps shift in short-term rates(1.0)(0.6)-100 bps shift in long-term rates - - Non-U.S. dollar:Parallel shift: +100 bps shift in rates - 0.6 -100 bps shift in rates - (0.6)Economic Value SensitivityIn addition to earnings-at-risk, which is measured as a sensitivity to a baseline of earnings over the next 12 months, the Firm also measures Economic Value Sensitivity ("EVS"). EVS stress tests the longer-term economic value of equity by measuring the sensitivity of the Firm's current balance sheet, primarily retained loans, deposits, debt and investment securities as well as related hedges, under various interest rate scenarios. The Firm's pricing and cash flow assumptions associated with deposits, as well as prepayment assumptions for loans and securities, are significant factors in the EVS measure. In accordance with the CTC interest rate risk management policy, the Firm has established limits on EVS as a percentage of TCE.Certain assumptions used in the EVS measure may differ from those required in the fair value measurement note to the Consolidated Financial Statements. For example, certain assets and liabilities with no stated maturity, such as credit card receivables and deposits, have longer assumed durations in the EVS measure. Additional information on long-term debt and held to maturity investment securities is disclosed on page 201 in Note 2. Amounts by which reported sensitivities would have been differentDecember 31, 2024(in billions)Impact from update in the second quarter of 2024Impact from update in the fourth quarter of 2024U.S. dollar:Parallel shift:+100 bps shift in rates$(1.0)$(0.6)-100 bps shift in rates0.9 0.6 +200 bps shift in rates(1.9)(1.3)-200 bps shift in rates1.5 1.3 Steeper yield curve:+100 bps shift in long-term rates - - -100 bps shift in short-term rates0.9 0.6 Flatter yield curve:+100 bps shift in short-term rates(1.0)(0.6)-100 bps shift in long-term rates - - Non-U.S. dollar:Parallel shift: +100 bps shift in rates - 0.6 -100 bps shift in rates - (0.6) **Current (2026):** (a)Reflects the simultaneous shift of U.S. dollar and non-U.S. dollar rates, including hedges of non-U.S. dollar capital investments. Non-U.S. dollar sensitivities were insignificant. The change in the Firm's sensitivities as of December 31, 2025 compared to December 31, 2024, was primarily driven by the net impact of Treasury and CIO actual and forecasted actions, including an increase in cash flow hedges of floating rate loans and in investment securities, both of which add duration. The net impact of these actions was largely offset, and more than offset for the -200 bps parallel shift in rates, by the effects from changes in Firmwide deposits. Economic value sensitivityIn addition to earnings-at-risk, which is measured as a sensitivity to a baseline of earnings over the next 12 months, the Firm also measures economic value sensitivity ("EVS"). EVS stress tests the longer-term economic value of equity by measuring the sensitivity of the Firm's current balance sheet, primarily retained loans, deposits, debt and investment securities as well as related hedges, under various interest rate scenarios. The Firm's pricing and cash flow assumptions associated with deposits, as well as prepayment assumptions for loans and securities, are significant factors in the EVS measure. In accordance with the CTC interest rate risk management policy, the Firm has established limits on EVS as a percentage of TCE.Certain assumptions used in the EVS measure may differ from those required in the fair value measurement note to the Consolidated Financial Statements. For example, certain assets and liabilities with no stated maturity, such as credit card receivables and deposits, have longer assumed durations in the EVS measure. Additional information on long-term debt and held to maturity investment securities is disclosed on page 194 in Note 2. --- ## Modified Risk: (Unaudited) **Key changes:** - Updated: "Year ended December 31, (Taxable-equivalent interest and rates; in millions, except rates) Securities borrowed: All other interest-earning assets, largely U.S.(a) Trading liabilities - debt, short-term and all other interest-bearing liabilities: Noninterest-bearing liabilities(b) (a)The rates reflect the impact of interest earned on cash collateral where that cash collateral has been netted against certain derivative payables." - Updated: "Refer to the "Net interest income" discussion in Consolidated Results of Operations on pages 51-54 for further information." **Prior (2025):** Year ended December 31, (Taxable-equivalent interest and rates; in millions, except rates) Securities borrowed: All other interest-earning assets, predominantly U.S.(a) Trading liabilities - debt, short-term and all other interest-bearing liabilities: Noninterest-bearing liabilities(b) (a)The rates reflect the impact of interest earned on cash collateral where that cash collateral has been netted against certain derivative payables. (b)Represents the amount of noninterest-bearing liabilities funding interest-earning assets. Refer to the "Net interest income" discussion in Consolidated Results of Operations on pages 59-62 for further information. 324JPMorgan Chase & Co./2024 Form 10-K 324JPMorgan Chase & Co./2024 Form 10-K 324JPMorgan Chase & Co./2024 Form 10-K 324 JPMorgan Chase & Co./2024 Form 10-K (Table continued from previous page)20232022Average balanceInterestRateAverage balanceInterestRate$296,784 $15,348 5.17 %$456,366 $7,418 1.63 %202,612 6,449 3.18 214,407 1,621 0.76 155,304 8,330 5.36 130,213 2,191 1.68 161,855 6,749 4.17 176,937 2,441 1.38 133,805 6,239 4.66 142,736 1,811 1.27 59,423 1,744 2.93 62,780 426 0.68 248,541 10,721 4.31 170,975 5,414 3.17 128,387 5,280 4.11 112,133 3,683 3.28 568,505 17,469 3.07 623,285 10,994 1.76 36,295 1,481 4.08 30,700 602 1.96 1,137,162 76,884 6.76 985,187 48,953 4.97 110,914 6,705 6.05 115,131 3,924 3.41 86,121 7,669 8.90 128,229 3,763 2.93 3,325,708 171,068 5.14 3,349,079 93,241 2.78 1,290,110 26,253 2.03 1,358,322 7,026 0.52 408,419 13,763 3.37 390,344 3,056 0.78 197,049 10,639 5.40 173,016 3,083 1.78 59,037 2,620 4.44 69,746 638 0.91 205,388 7,774 3.79 194,570 2,384 1.23 118,685 3,516 2.96 119,512 1,609 1.35 18,648 953 5.11 11,208 226 2.02 293,218 15,749 5.37 246,670 8,026 3.25 3,215 54 1.68 3,410 49 1.44 2,593,769 81,321 3.14 2,566,798 26,097 1.02 731,939 782,281 $3,325,708 $81,321 2.45 %$3,349,079 $26,097 0.78 %$89,747 2.70 %$67,144 2.00 %77,923 3.01 58,950 2.27 11,824 1.61 8,194 1.09 24.7 24.9 20.2 20.6 JPMorgan Chase & Co./2024 Form 10-K325 JPMorgan Chase & Co./2024 Form 10-K325 JPMorgan Chase & Co./2024 Form 10-K325 JPMorgan Chase & Co./2024 Form 10-K 325 **Current (2026):** Year ended December 31, (Taxable-equivalent interest and rates; in millions, except rates) Securities borrowed: All other interest-earning assets, largely U.S.(a) Trading liabilities - debt, short-term and all other interest-bearing liabilities: Noninterest-bearing liabilities(b) (a)The rates reflect the impact of interest earned on cash collateral where that cash collateral has been netted against certain derivative payables. (b)Represents the amount of noninterest-bearing liabilities funding interest-earning assets. Refer to the "Net interest income" discussion in Consolidated Results of Operations on pages 51-54 for further information. JPMorgan Chase & Co./2025 Form 10-K317 JPMorgan Chase & Co./2025 Form 10-K317 JPMorgan Chase & Co./2025 Form 10-K317 JPMorgan Chase & Co./2025 Form 10-K 317 (Table continued from previous page)20242023Average balanceInterestRateAverage balanceInterestRate$284,913 $15,157 5.32 %$296,784 $15,348 5.17 %205,292 7,140 3.48 202,612 6,449 3.18 193,210 10,686 5.53 155,304 8,330 5.36 165,987 7,613 4.59 161,855 6,749 4.17 150,251 7,330 4.88 133,805 6,239 4.66 59,493 1,878 3.16 59,423 1,744 2.93 309,568 13,579 4.39 248,541 10,721 4.31 146,461 6,794 4.64 128,387 5,280 4.11 567,784 21,458 3.78 568,505 17,469 3.07 43,457 1,882 4.33 36,295 1,481 4.08 1,211,978 85,621 7.06 1,137,162 76,884 6.76 110,447 6,967 6.31 110,914 6,705 6.05 88,726 8,305 9.36 86,121 7,669 8.90 3,537,567 194,410 5.50 3,325,708 171,068 5.14 1,307,000 33,173 2.54 1,290,110 26,253 2.03 441,050 16,386 3.72 408,419 13,763 3.37 294,476 15,949 5.42 197,049 10,639 5.40 69,344 3,200 4.61 59,037 2,620 4.44 222,710 8,289 3.72 205,388 7,774 3.79 130,937 4,050 3.09 118,685 3,516 2.96 26,515 1,383 5.22 18,648 953 5.11 338,166 18,760 5.55 293,218 15,749 5.37 6,180 160 2.59 3,215 54 1.68 2,836,378 101,350 3.57 2,593,769 81,321 3.14 701,189 731,939 $3,537,567 $101,350 2.86 %$3,325,708 $81,321 2.45 %$93,060 2.63 %$89,747 2.70 %80,913 2.92 77,923 3.01 12,147 1.58 11,824 1.61 24.3 24.7 20.5 20.2 318JPMorgan Chase & Co./2025 Form 10-K 318JPMorgan Chase & Co./2025 Form 10-K 318JPMorgan Chase & Co./2025 Form 10-K 318 JPMorgan Chase & Co./2025 Form 10-K --- ## Modified Risk: A significant inadequacy in disclosure or financial reporting controls could negatively affect JPMorganChase's business, operations and reputation. **Key changes:** - Updated: "JPMorganChase is subject to complex global financial reporting obligations that require continuous enhancements to disclosures in its financial statements and regulatory reports." **Prior (2025):** JPMorganChase's businesses and operations are subject to complex and evolving laws, rules and regulations, both within and outside the U.S., requiring continuous enhancements to various disclosures in its financial statements and regulatory reports. There can be no assurance that JPMorganChase's disclosure controls and procedures will be effective in every circumstance, or that a material weakness or significant deficiency in internal control over financial reporting will not occur. Any such lapse, weakness or deficiency could result in inaccurate financial reporting which, in turn, could:•materially and adversely affect JPMorganChase's business and results of operations or financial condition•restrict its ability to access the capital markets •require it to expend significant resources to correct the lapse, weakness or deficiency•expose it to litigation or regulatory fines, penalties or other sanctions•harm its reputation, or •otherwise diminish investor confidence in JPMorganChase. StrategicJPMorganChase's results or competitive standing could suffer if its management fails to develop and execute effective business strategies, and to anticipate changes affecting those strategies.The development and execution of effective business strategies by JPMorganChase's management, along with the ability to anticipate and respond to shifts in the competitive environment, are critical to JPMorganChase's competitive standing and to achieving its strategic objectives. These strategies relate to:•the products and services that JPMorganChase offers•the geographies in which it operates•the types of clients and customers that it serves•the businesses that it acquires or in which it invests•the counterparties with which it does business•the technologies that it adopts or in which it invests, which may include new and currently unproven technologies, and•the methods, distribution channels and third party service providers by or through which it offers products and services. If management makes choices about these strategies and goals that prove to be incorrect, are based on incomplete, inaccurate or fraudulent information, do not accurately assess the competitive landscape and industry trends, or fail to address changing regulatory and market environments or the expectations of clients, customers, investors, employees and other stakeholders, then the franchise values and growth prospects of JPMorganChase's businesses may suffer and its earnings could decline.JPMorganChase's growth prospects also depend on management's ability to develop and execute effective business plans to address these strategic priorities, both in the near term and over longer time horizons. Management's effectiveness in this regard will affect deficiency could result in inaccurate financial reporting which, in turn, could: •materially and adversely affect JPMorganChase's business and results of operations or financial condition •restrict its ability to access the capital markets •require it to expend significant resources to correct the lapse, weakness or deficiency •expose it to litigation or regulatory fines, penalties or other sanctions •harm its reputation, or •otherwise diminish investor confidence in JPMorganChase. Strategic **Current (2026):** JPMorganChase is subject to complex global financial reporting obligations that require continuous enhancements to disclosures in its financial statements and regulatory reports. JPMorganChase's disclosure and financial reporting controls may not always be effective, and a material weakness or significant deficiency in internal control over financial reporting could occur. Any such significant lapse, weakness or deficiency could result in inaccurate financial reporting which, in turn, could: •materially and adversely affect JPMorganChase's business and results of operations or financial condition •restrict its ability to access the capital markets •require it to expend significant resources to correct the lapse, weakness or deficiency •expose it to litigation and penalties, and •cause reputational harm. Strategic --- ## Modified Risk: JPMorganChase's businesses could be adversely affected if it fails to identify and address operational risks associated with the introduction of or changes to products, services, delivery platforms or technologies. **Key changes:** - Updated: "JPMorganChase may not always identify or recognize the full extent of operational risks that could arise from: •the introduction of a new product or service, including platforms for the delivery or distribution of products or services •the acquisition or integration of, or investment in, a new business, product or portfolio, including the development of any related technological capabilities •the adoption of a new technology, or •changes to existing products, services, delivery platforms, businesses and technologies." **Prior (2025):** When JPMorganChase launches a new product or service, introduces a new platform for the delivery or 25 25 25 25 Part I Part I distribution of products or services (including mobile connectivity, electronic trading and cloud computing), acquires or invests in a business, makes changes to an existing product, service or delivery platform, or adopts a new technology, it may not fully appreciate or identify new operational risks that may arise from those changes, including increased reliance on third party providers, or may fail to implement adequate controls to mitigate the risks associated with those changes. Any significant failure in this regard could diminish JPMorganChase's ability to operate one or more of its businesses or result in:•potential liability to clients, counterparties and customers•higher compliance, operational or integration costs •higher litigation costs, including regulatory fines, penalties and other sanctions•damage to JPMorganChase's reputation•impairment of JPMorganChase's liquidity•regulatory intervention, or •weaker competitive standing.Any of the foregoing consequences could materially and adversely affect JPMorganChase's businesses and results of operations.JPMorganChase's business and operations rely on its ability, and the ability of key external parties, to maintain appropriately-staffed workforces, and on the competence, trustworthiness, health and safety of employees.JPMorganChase's ability to operate its businesses efficiently and profitably, to offer products and services that meet the expectations of its clients and customers, and to maintain an effective risk management framework is highly dependent on its ability to staff its operations appropriately and on the competence, trustworthiness, health and safety of its employees. JPMorganChase's businesses and operations similarly rely on the workforces of third parties, including employees of vendors, custodians and financial markets infrastructures, and of businesses that it may seek to acquire. JPMorganChase's businesses could be materially and adversely affected by:•the ineffective implementation of business decisions•any failure to institute controls that appropriately address risks associated with business activities, or to appropriately train employees with respect to those risks and controls•staffing shortages, particularly in tight labor markets•the possibility that significant portions of JPMorganChase's workforce are unable to work effectively, including because of illness, quarantines, shelter-in-place arrangements, government actions or other restrictions in connection with health emergencies, the spread of infectious diseases, epidemics or pandemics, or due to extraordinary events beyond JPMorganChase's control such as natural disasters or an outbreak or escalation of hostilities•a significant operational breakdown or failure, theft, fraud or other unlawful conduct, or•other negative outcomes caused by human error or misconduct by an employee of JPMorganChase or of another party on which JPMorganChase's businesses or operations rely.JPMorganChase's operations could also be impaired if the measures taken by it or by governmental authorities to protect the health and safety of its employees are ineffective, or if any external party on which JPMorganChase relies fails to take appropriate and effective actions to protect the health and safety of its employees.JPMorganChase faces substantial legal and operational risks in the processing and safeguarding of personal information.JPMorganChase's businesses and operations are subject to complex and evolving laws, rules and regulations, both within and outside the U.S., governing the privacy and protection of personal information of individuals. Governmental authorities around the world have adopted and are considering the adoption of numerous legislative and regulatory initiatives concerning privacy, data protection and security. Litigation or enforcement actions relating to these laws, rules and regulations could result in fines or orders requiring that JPMorganChase change its data-related practices, which could have an adverse effect on JPMorganChase's ability to provide products and otherwise harm its business operations.Implementing processes relating to JPMorganChase's collection, use, sharing and storage of personal information to comply with all applicable laws, rules and regulations in all relevant jurisdictions, including where the laws of different jurisdictions are in conflict, can:•increase JPMorganChase's compliance and operating costs•hinder the development of new products or services, curtail the offering of existing products or services, or affect how products and services are offered to clients and customers•demand significant oversight by JPMorganChase's management, and •require JPMorganChase to structure its businesses, operations and systems in less efficient ways. Not all of JPMorganChase's clients, customers, vendors, counterparties and other external parties may have appropriate controls in place to protect the confidentiality, integrity or availability of the distribution of products or services (including mobile connectivity, electronic trading and cloud computing), acquires or invests in a business, makes changes to an existing product, service or delivery platform, or adopts a new technology, it may not fully appreciate or identify new operational risks that may arise from those changes, including increased reliance on third party providers, or may fail to implement adequate controls to mitigate the risks associated with those changes. Any significant failure in this regard could diminish JPMorganChase's ability to operate one or more of its businesses or result in:•potential liability to clients, counterparties and customers•higher compliance, operational or integration costs •higher litigation costs, including regulatory fines, penalties and other sanctions•damage to JPMorganChase's reputation•impairment of JPMorganChase's liquidity•regulatory intervention, or •weaker competitive standing.Any of the foregoing consequences could materially and adversely affect JPMorganChase's businesses and results of operations.JPMorganChase's business and operations rely on its ability, and the ability of key external parties, to maintain appropriately-staffed workforces, and on the competence, trustworthiness, health and safety of employees.JPMorganChase's ability to operate its businesses efficiently and profitably, to offer products and services that meet the expectations of its clients and customers, and to maintain an effective risk management framework is highly dependent on its ability to staff its operations appropriately and on the competence, trustworthiness, health and safety of its employees. JPMorganChase's businesses and operations similarly rely on the workforces of third parties, including employees of vendors, custodians and financial markets infrastructures, and of businesses that it may seek to acquire. JPMorganChase's businesses could be materially and adversely affected by:•the ineffective implementation of business decisions•any failure to institute controls that appropriately address risks associated with business activities, or to appropriately train employees with respect to those risks and controls•staffing shortages, particularly in tight labor markets•the possibility that significant portions of JPMorganChase's workforce are unable to work effectively, including because of illness, quarantines, shelter-in-place arrangements, government actions or other restrictions in connection with health distribution of products or services (including mobile connectivity, electronic trading and cloud computing), acquires or invests in a business, makes changes to an existing product, service or delivery platform, or adopts a new technology, it may not fully appreciate or identify new operational risks that may arise from those changes, including increased reliance on third party providers, or may fail to implement adequate controls to mitigate the risks associated with those changes. Any significant failure in this regard could diminish JPMorganChase's ability to operate one or more of its businesses or result in: •potential liability to clients, counterparties and customers •higher compliance, operational or integration costs •higher litigation costs, including regulatory fines, penalties and other sanctions •damage to JPMorganChase's reputation •impairment of JPMorganChase's liquidity •regulatory intervention, or •weaker competitive standing. Any of the foregoing consequences could materially and adversely affect JPMorganChase's businesses and results of operations. **Current (2026):** JPMorganChase may not always identify or recognize the full extent of operational risks that could arise from: •the introduction of a new product or service, including platforms for the delivery or distribution of products or services •the acquisition or integration of, or investment in, a new business, product or portfolio, including the development of any related technological capabilities •the adoption of a new technology, or •changes to existing products, services, delivery platforms, businesses and technologies. Any significant failure by JPMorganChase to identify the operational risks associated with these types of changes, or to implement adequate controls to mitigate those risks, has resulted and could in the future result in: •hindering JPMorganChase's ability to operate its businesses •potential liability to clients, counterparties and customers •impairment of JPMorganChase's liquidity •weaker competitive standing •higher compliance, operational or integration costs •regulatory intervention •losses from fraudulent transactions •higher litigation costs and penalties, or •reputational harm. Any of the foregoing consequences could materially and adversely affect JPMorganChase's businesses and results of operations. --- ## Modified Risk: Net amounts **Key changes:** - Updated: "208JPMorgan Chase & Co./2025 Form 10-K 208JPMorgan Chase & Co./2025 Form 10-K 208JPMorgan Chase & Co./2025 Form 10-K 208 JPMorgan Chase & Co./2025 Form 10-K 20252024December 31, (in millions)Gross derivative payablesAmounts netted on the Consolidated balance sheetsNet derivative payablesGross derivative payablesAmounts netted on the Consolidated balance sheetsNetderivative payablesU.S." **Prior (2025):** 20242023December 31, (in millions)Gross derivative payablesAmounts netted on the Consolidated balance sheetsNet derivative payablesGross derivative payablesAmounts netted on the Consolidated balance sheetsNetderivative payablesU.S. GAAP nettable derivative payablesInterest rate contracts:OTC$138,215 $(130,375)$7,840 $161,901 $(152,467)$9,434 OTC-cleared134,555 (134,262)293 76,007 (75,729)278 Exchange-traded(a)363 (352)11 436 (390)46 Total interest rate contracts273,133 (264,989)8,144 238,344 (228,586)9,758 Credit contracts:OTC11,381 (10,133)1,248 10,332 (9,313)1,019 OTC-cleared1,779 (1,765)14 1,639 (1,636)3 Total credit contracts13,160 (11,898)1,262 11,971 (10,949)1,022 Foreign exchange contracts:OTC251,860 (238,292)13,568 209,386 (199,173)10,213 OTC-cleared772 (678)94 552 (470)82 Exchange-traded(a)14 - 14 6 - 6 Total foreign exchange contracts252,646 (238,970)13,676 209,944 (199,643)10,301 Equity contracts:OTC44,394 (38,298)6,096 29,999 (27,360)2,639 Exchange-traded(a)49,578 (49,193)385 33,137 (29,083)4,054 Total equity contracts93,972 (87,491)6,481 63,136 (56,443)6,693 Commodity contracts:OTC6,918 (5,206)1,712 8,788 (5,192)3,596 OTC-cleared84 (84) - 120 (120) - Exchange-traded(a)5,182 (4,919)263 5,376 (5,192)184 Total commodity contracts12,184 (10,209)1,975 14,284 (10,504)3,780 Derivative payables with appropriate legal opinion645,095 (613,557)31,538 (d)537,679 (506,125)31,554 (d)Derivative payables where an appropriate legal opinion has not been either sought or obtained8,123 8,123 9,293 9,293 Total derivative payables recognized on the Consolidated balance sheets$653,218 $39,661 $546,972 $40,847 Collateral not nettable on the Consolidated balance sheets(b)(c)(10,163)(4,547)Net amounts$29,498 $36,300 **Current (2026):** 208JPMorgan Chase & Co./2025 Form 10-K 208JPMorgan Chase & Co./2025 Form 10-K 208JPMorgan Chase & Co./2025 Form 10-K 208 JPMorgan Chase & Co./2025 Form 10-K 20252024December 31, (in millions)Gross derivative payablesAmounts netted on the Consolidated balance sheetsNet derivative payablesGross derivative payablesAmounts netted on the Consolidated balance sheetsNetderivative payablesU.S. GAAP nettable derivative payablesInterest rate contracts:OTC$135,045 $(128,464)$6,581 $138,215 $(130,375)$7,840 OTC-cleared121,702 (121,557)145 134,555 (134,262)293 Exchange-traded(a)104 (101)3 363 (352)11 Total interest rate contracts256,851 (250,122)6,729 273,133 (264,989)8,144 Credit contracts:OTC14,848 (13,196)1,652 11,381 (10,133)1,248 OTC-cleared2,446 (2,416)30 1,779 (1,765)14 Total credit contracts17,294 (15,612)1,682 13,160 (11,898)1,262 Foreign exchange contracts:OTC175,485 (162,455)13,030 251,860 (238,292)13,568 OTC-cleared897 (850)47 772 (678)94 Exchange-traded(a)9 (3)6 14 - 14 Total foreign exchange contracts176,391 (163,308)13,083 252,646 (238,970)13,676 Equity contracts:OTC53,530 (41,552)11,978 44,394 (38,298)6,096 Exchange-traded(a)61,363 (60,659)704 49,578 (49,193)385 Total equity contracts114,893 (102,211)12,682 93,972 (87,491)6,481 Commodity contracts:OTC14,176 (9,786)4,390 6,918 (5,206)1,712 OTC-cleared79 (79) - 84 (84) - Exchange-traded(a)9,334 (9,291)43 5,182 (4,919)263 Total commodity contracts23,589 (19,156)4,433 12,184 (10,209)1,975 Derivative payables with appropriate legal opinion589,018 (550,409)38,609 (d)645,095 (613,557)31,538 (d)Derivative payables where an appropriate legal opinion has not been either sought or obtained7,720 7,720 8,123 8,123 Total derivative payables recognized on the Consolidated balance sheets$596,738 $46,329 $653,218 $39,661 Collateral not nettable on the Consolidated balance sheets(b)(c)(18,478)(10,163)Net amounts$27,851 $29,498 --- ## Modified Risk: JPMorganChase's results could be materially affected by market fluctuations and significant changes in the valuation of financial instruments. **Key changes:** - Updated: "The value of securities, derivatives and other financial instruments that JPMorganChase owns or in which it makes markets could be materially affected by market fluctuations." **Prior (2025):** The value of securities, derivatives and other financial instruments which JPMorganChase owns or in which it makes markets can be materially affected by market fluctuations. Market volatility, illiquid market conditions and other disruptions in the financial markets may make it extremely difficult to value certain financial instruments. Subsequent valuations of financial instruments in future periods, in light of factors then prevailing, may result in significant changes in the value of these instruments. In addition, at the time of any disposition of these financial instruments, the price that JPMorganChase ultimately realizes will depend on the demand and liquidity in the market at that time and may be materially lower than their current fair value. Any of these factors could cause a decline in the value of financial instruments that JPMorganChase owns or in which it makes markets, which may have an adverse effect on JPMorganChase's results of operations. JPMorganChase's risk management and monitoring processes, including its stress testing framework, seek to quantify and manage JPMorganChase's exposure to more extreme market moves. However, JPMorganChase's hedging and other risk management strategies may not be effective, and it could incur significant losses, if extreme market events were to occur. Credit **Current (2026):** The value of securities, derivatives and other financial instruments that JPMorganChase owns or in which it makes markets could be materially affected by market fluctuations. Market volatility, illiquid market conditions and other fluctuations in the financial markets could make it extremely difficult to value certain financial instruments. Subsequent valuations of financial instruments in future periods, in light of factors then prevailing, could result in significant changes in the value of these instruments. In addition, when JPMorganChase disposes of a financial instrument, the price that it realizes will depend on demand and liquidity in the market at the time of disposition, and that price could be materially lower than the current fair 16 16 16 16 value of the instrument. Any of these factors could cause a decline in the value of financial instruments that JPMorganChase owns or in which it makes markets, which could have an adverse effect on its results of operations. Furthermore, JPMorganChase's hedging and other risk management strategies may not always be effective, and it could incur significant losses, if extreme market events were to occur.CreditJPMorganChase could be negatively affected by adverse changes in the financial condition of clients, counterparties, CCPs and other market participants.JPMorganChase routinely executes transactions with clients and counterparties such as corporations, financial institutions, asset managers, hedge funds, securities exchanges and government entities globally. Many of these transactions expose JPMorganChase to the credit risk of its clients and counterparties, and JPMorganChase could incur losses and become involved in disputes and litigation in connection with a default by a client or counterparty. JPMorganChase could also face losses or liability if a financial institution providing custodial services for client assets becomes insolvent. If a CCP through which JPMorganChase executes contracts suffers a financial or operational failure or otherwise defaults, JPMorganChase would be required to replace the relevant contracts, which would increase its operational costs and potentially result in losses. In addition, if a member of a CCP in which JPMorganChase is also a member defaults on its obligations to the CCP, JPMorganChase could incur losses due to requirements that each member of the CCP absorb a portion of those losses. Furthermore, JPMorganChase could be subject to bearing its share of non-default losses incurred by a CCP, including losses from custodial, settlement or investment activities or due to cyber or other security breaches.As part of its clearing services activities, JPMorganChase is exposed to the risk of nonperformance by its clients, which it seeks to mitigate by requiring clients to provide adequate collateral. JPMorganChase is also exposed to intra-day credit risk of its clients in connection with providing cash management, clearing, custodial and other transaction services. If such a client becomes bankrupt or insolvent, JPMorganChase could:•incur losses•become involved in disputes and litigation with CCPs, the client's bankruptcy estate and other creditors, or •be subject to investigations by governmental authorities.In addition, JPMorganChase has in the past, and could in the future, experience instances in which borrowers or other counterparties engage in fraudulent activity related to the accounting, reporting or representation of collateral. Such practices have resulted and could in the future result in losses for JPMorganChase potentially undermining the effectiveness of collateral requirements and negatively affecting JPMorganChase's financial condition and results of operations. All of the foregoing events could increase JPMorganChase's operational and litigation costs, and JPMorganChase could suffer losses to the extent that the realized value of any collateral that it has received is insufficient to cover those losses.Transactions with governmental entities can expose JPMorganChase to enhanced sovereign, credit, operational, legal and reputation risks. Governmental entities may claim that actions taken by government officials were beyond the legal authority of those officials or repudiate transactions authorized by a previous incumbent government. These types of actions have in the past caused, and could in the future cause, JPMorganChase to suffer losses or hamper its ability to conduct business in the relevant jurisdiction. In addition, JPMorganChase could incur losses if applicable law limits its ability to resolve disputes and litigation when a client in that jurisdiction defaults or otherwise fails to make agreed-upon payments.Disputes could arise with counterparties to derivatives contracts concerning the terms, the settlement procedures or the value of underlying collateral. The resolution of those disputes could cause JPMorganChase to incur losses, including unexpected transaction, operational and legal costs. These consequences could also impair JPMorganChase's ability to effectively manage its credit risk exposure from its market activities, or cause reputational harm.The financial or operational failure of a significant market participant, such as a major financial institution or a CCP, or concerns about the creditworthiness or operational sustainability of one or more market participants, could cause substantial and cascading disruption within the financial markets, including in circumstances where coordinated action by multiple other market participants is required to address the problem. JPMorganChase's businesses could be significantly disrupted by such an event, especially if it has significant interrelationships with, and credit exposure to, the faltering market participant, or if the event causes other market participants to default, incur significant losses or experience liquidity issues.JPMorganChase could suffer losses if the value of collateral declines.During periods of market stress or illiquidity, JPMorganChase's credit risk could increase when:•JPMorganChase fails to realize the estimated value of the collateral it holds•collateral is liquidated at prices that are insufficient to recover the full amount owed to it, or value of the instrument. Any of these factors could cause a decline in the value of financial instruments that JPMorganChase owns or in which it makes markets, which could have an adverse effect on its results of operations. Furthermore, JPMorganChase's hedging and other risk management strategies may not always be effective, and it could incur significant losses, if extreme market events were to occur.CreditJPMorganChase could be negatively affected by adverse changes in the financial condition of clients, counterparties, CCPs and other market participants.JPMorganChase routinely executes transactions with clients and counterparties such as corporations, financial institutions, asset managers, hedge funds, securities exchanges and government entities globally. Many of these transactions expose JPMorganChase to the credit risk of its clients and counterparties, and JPMorganChase could incur losses and become involved in disputes and litigation in connection with a default by a client or counterparty. JPMorganChase could also face losses or liability if a financial institution providing custodial services for client assets becomes insolvent. If a CCP through which JPMorganChase executes contracts suffers a financial or operational failure or otherwise defaults, JPMorganChase would be required to replace the relevant contracts, which would increase its operational costs and potentially result in losses. In addition, if a member of a CCP in which JPMorganChase is also a member defaults on its obligations to the CCP, JPMorganChase could incur losses due to requirements that each member of the CCP absorb a portion of those losses. Furthermore, JPMorganChase could be subject to bearing its share of non-default losses incurred by a CCP, including losses from custodial, settlement or investment activities or due to cyber or other security breaches.As part of its clearing services activities, JPMorganChase is exposed to the risk of nonperformance by its clients, which it seeks to mitigate by requiring clients to provide adequate collateral. JPMorganChase is also exposed to intra-day credit risk of its clients in connection with providing cash management, clearing, custodial and other transaction services. If such a client becomes bankrupt or insolvent, JPMorganChase could:•incur losses•become involved in disputes and litigation with CCPs, the client's bankruptcy estate and other creditors, or •be subject to investigations by governmental authorities.In addition, JPMorganChase has in the past, and could in the future, experience instances in which borrowers or other counterparties engage in fraudulent activity related to the accounting, reporting or representation value of the instrument. Any of these factors could cause a decline in the value of financial instruments that JPMorganChase owns or in which it makes markets, which could have an adverse effect on its results of operations. Furthermore, JPMorganChase's hedging and other risk management strategies may not always be effective, and it could incur significant losses, if extreme market events were to occur. Credit --- ## Modified Risk: Liabilities **Key changes:** - Updated: "Securities loaned and other(a) December 31, 2024(in millions)Gross amountsAmounts netted on the Consolidated balance sheetsAmounts presented on the Consolidated balance sheetsAmounts notnettable on the Consolidatedbalance sheets(b)Net amounts(c)AssetsSecurities purchased under resale agreements$607,154 $(312,183)$294,971 $(282,220)$12,751 Securities borrowed267,917 (48,371)219,546 (170,702)48,844 LiabilitiesSecurities sold under repurchase agreements$603,683 $(312,183)$291,500 $(249,763)$41,737 Securities loaned and other(a)58,989 (48,371)10,618 (10,557)61 Amounts not nettable on the Consolidated balance sheets(b) Net amounts(c) Assets Securities purchased under resale agreements Securities borrowed" **Prior (2025):** Securities loaned and other(a) December 31, 2023(in millions)Gross amountsAmounts netted on the Consolidated balance sheetsAmounts presented on the Consolidated balance sheetsAmounts notnettable on the Consolidatedbalance sheets(b)Net amounts(c)AssetsSecurities purchased under resale agreements$523,308 $(247,181)$276,127 $(267,582)$8,545 Securities borrowed244,046 (43,610)200,436 (144,543)55,893 LiabilitiesSecurities sold under repurchase agreements$459,985 $(247,181)$212,804 $(182,011)$30,793 Securities loaned and other(a)52,142 (43,610)8,532 (8,501)31 Amounts not nettable on the Consolidated balance sheets(b) Net amounts(c) Assets Securities purchased under resale agreements Securities borrowed **Current (2026):** Securities loaned and other(a) December 31, 2024(in millions)Gross amountsAmounts netted on the Consolidated balance sheetsAmounts presented on the Consolidated balance sheetsAmounts notnettable on the Consolidatedbalance sheets(b)Net amounts(c)AssetsSecurities purchased under resale agreements$607,154 $(312,183)$294,971 $(282,220)$12,751 Securities borrowed267,917 (48,371)219,546 (170,702)48,844 LiabilitiesSecurities sold under repurchase agreements$603,683 $(312,183)$291,500 $(249,763)$41,737 Securities loaned and other(a)58,989 (48,371)10,618 (10,557)61 Amounts not nettable on the Consolidated balance sheets(b) Net amounts(c) Assets Securities purchased under resale agreements Securities borrowed --- ## Modified Risk: JPMorganChase faces significant legal risks from civil and governmental proceedings, including litigation, investigations and enforcement actions. **Key changes:** - Updated: "JPMorganChase is named as a defendant or is otherwise involved in many civil and governmental legal proceedings, including class actions, derivative actions and other litigation or disputes with third parties, as well as investigations and enforcement actions by U.S." **Prior (2025):** JPMorganChase is named as a defendant or is otherwise involved in many legal proceedings, including class actions, derivative actions and other litigation or disputes with third parties, as well as criminal proceedings. Actions currently pending against JPMorganChase may result in judgments, settlements, fines, penalties or other sanctions adverse to JPMorganChase. Any of these matters could materially and adversely affect JPMorganChase's business, financial condition or results of operations, or cause serious reputational harm. As a participant in the financial services industry, it is likely that JPMorganChase will continue to experience a high level of litigation and regulatory and government investigations related to its businesses and operations. Regulators and other government agencies conduct examinations of JPMorganChase and its subsidiaries both on a routine basis and in targeted exams, and JPMorganChase's businesses and operations are subject to heightened regulatory oversight. This heightened regulatory scrutiny, or the results of such an investigation or examination, may lead to additional regulatory investigations or enforcement actions. There is no assurance that those actions will not result in resolutions or other enforcement actions against JPMorganChase. Furthermore, a single event involving a potential violation of law or regulation may give rise to numerous and overlapping investigations and proceedings, either by multiple federal, state or local agencies and officials in the U.S. or, in some instances, regulators and other governmental officials in non-U.S. jurisdictions. 36 36 36 36 In addition, if another financial institution violates a law or regulation relating to a particular business activity or practice, this will often give rise to an investigation by regulators and other governmental agencies of the same or similar activity or practice by JPMorganChase. JPMorganChase could become subject to a significant regulatory investigation and be unable to disclose specific information concerning that investigation to the public if such a disclosure would violate JPMorganChase's obligations under applicable rules and regulations to maintain the confidentiality of confidential supervisory information, even if the resolution of that investigation could have a material adverse effect on JPMorganChase's business, operations, results or financial condition.Regulatory investigations, examinations or other initiatives by U.S. and non-U.S. governmental authorities may subject JPMorganChase to judgments, settlements, fines, penalties or other sanctions, and may require JPMorganChase to restructure its operations and activities or to cease offering certain products or services. All of these potential outcomes could harm JPMorganChase's reputation or lead to higher operational costs, thereby reducing JPMorganChase's profitability, or result in collateral consequences. In addition, the extent of JPMorganChase's exposure to legal and regulatory matters can be unpredictable and could, in some cases, exceed the amount of reserves that JPMorganChase has established for those matters. In addition, if another financial institution violates a law or regulation relating to a particular business activity or practice, this will often give rise to an investigation by regulators and other governmental agencies of the same or similar activity or practice by JPMorganChase. JPMorganChase could become subject to a significant regulatory investigation and be unable to disclose specific information concerning that investigation to the public if such a disclosure would violate JPMorganChase's obligations under applicable rules and regulations to maintain the confidentiality of confidential supervisory information, even if the resolution of that investigation could have a material adverse effect on JPMorganChase's business, operations, results or financial condition.Regulatory investigations, examinations or other initiatives by U.S. and non-U.S. governmental authorities may subject JPMorganChase to judgments, settlements, fines, penalties or other sanctions, and may require JPMorganChase to restructure its operations and activities or to cease offering certain products or services. All of these potential outcomes could harm JPMorganChase's reputation or lead to higher operational costs, thereby reducing JPMorganChase's profitability, or result in collateral consequences. In addition, the extent of JPMorganChase's exposure to legal and regulatory matters can be unpredictable and could, in some cases, exceed the amount of reserves that JPMorganChase has established for those matters. In addition, if another financial institution violates a law or regulation relating to a particular business activity or practice, this will often give rise to an investigation by regulators and other governmental agencies of the same or similar activity or practice by JPMorganChase. JPMorganChase could become subject to a significant regulatory investigation and be unable to disclose specific information concerning that investigation to the public if such a disclosure would violate JPMorganChase's obligations under applicable rules and regulations to maintain the confidentiality of confidential supervisory information, even if the resolution of that investigation could have a material adverse effect on JPMorganChase's business, operations, results or financial condition. Regulatory investigations, examinations or other initiatives by U.S. and non-U.S. governmental authorities may subject JPMorganChase to judgments, settlements, fines, penalties or other sanctions, and may require JPMorganChase to restructure its operations and activities or to cease offering certain products or services. All of these potential outcomes could harm JPMorganChase's reputation or lead to higher operational costs, thereby reducing JPMorganChase's profitability, or result in collateral consequences. In addition, the extent of JPMorganChase's exposure to legal and regulatory matters can be unpredictable and could, in some cases, exceed the amount of reserves that JPMorganChase has established for those matters. 37 37 37 37 **Current (2026):** JPMorganChase is named as a defendant or is otherwise involved in many civil and governmental legal proceedings, including class actions, derivative actions and other litigation or disputes with third parties, as well as investigations and enforcement actions by U.S. and non-U.S. governmental authorities, including criminal proceedings. Actions currently pending against JPMorganChase could result in judgments, settlements or penalties adverse to JPMorganChase, and any such resolution of legal proceedings could materially and adversely affect JPMorganChase's business, financial condition or results of operations, or cause serious reputational harm. In addition, the extent of JPMorganChase's exposure to legal matters is unpredictable and could, in some cases, exceed the amount of reserves that JPMorganChase has established for those matters.Resolving an investigation by a governmental authority could subject JPMorganChase to significant penalties and other repercussions.Governmental authorities conduct both routine and targeted examinations of JPMorganChase and its subsidiaries, and JPMorganChase's businesses and operations are subject to heightened regulatory oversight. This scrutiny, or the results of such an examination, could lead to legal proceedings, including investigations or enforcement actions by governmental authorities. Furthermore, a single event involving a potential violation of applicable law could give rise to numerous and overlapping proceedings, including by multiple governmental authorities in the U.S. as well as non-U.S. authorities. In addition, if another financial institution violates applicable law relating to a particular business activity or practice, this will often give rise to legal proceedings related to the same or similar activity or practice by JPMorganChase.JPMorganChase has in the past incurred significant penalties and experienced collateral consequences and other repercussions in connection with resolving investigations and enforcement actions by governmental authorities, and it could face similar investigations, actions and resolutions in the future. JPMorganChase typically incurs higher operational and compliance costs when addressing the requirements of such resolutions, including devoting substantial resources to remediation.In connection with resolving specific investigations or enforcement actions, certain governmental authorities have required JPMorganChase and other financial institutions to admit wrongdoing with respect to the activities that gave rise to the resolution. These types of admissions could lead to negative consequences such as:•disqualification from doing business with certain clients or customers, or in specific jurisdictions•greater exposure in litigation, and •reputational harm.Furthermore, government officials globally have increasingly brought criminal actions against financial institutions and required those institutions to plead guilty to criminal offenses in connection with resolving investigations or enforcement actions by governmental authorities. These resolutions could have significant pending against JPMorganChase could result in judgments, settlements or penalties adverse to JPMorganChase, and any such resolution of legal proceedings could materially and adversely affect JPMorganChase's business, financial condition or results of operations, or cause serious reputational harm. In addition, the extent of JPMorganChase's exposure to legal matters is unpredictable and could, in some cases, exceed the amount of reserves that JPMorganChase has established for those matters. --- ## Modified Risk: Consolidated statements of income **Key changes:** - Updated: "Year ended December 31, (in millions, except per share data)202520242023RevenueInvestment banking fees$9,615 $8,910 $6,519 Principal transactions27,212 24,787 24,460 Lending- and deposit-related fees9,093 7,606 7,413 Asset management fees20,327 17,801 15,220 Commissions and other fees8,539 7,530 6,836 Investment securities losses(57)(1,021)(3,180)Mortgage fees and related income1,381 1,401 1,176 Card income4,720 5,497 4,784 Other income6,174 12,462 5,609 Noninterest revenue87,004 84,973 68,837 Interest income193,341 193,933 170,588 Interest expense97,898 101,350 81,321 Net interest income95,443 92,583 89,267 Total net revenue182,447 177,556 158,104 Provision for credit losses14,212 10,678 9,320 Noninterest expenseCompensation expense54,487 51,357 46,465 Occupancy expense5,461 5,026 4,590 Technology, communications and equipment expense11,029 9,831 9,246 Professional and outside services12,356 11,057 10,235 Marketing5,531 4,974 4,591 Other expense6,776 9,552 12,045 Total noninterest expense95,640 91,797 87,172 Income before income tax expense72,595 75,081 61,612 Income tax expense15,547 16,610 12,060 Net income$57,048 $58,471 $49,552 Net income applicable to common stockholders$55,681 $56,868 $47,760 Net income per common share dataBasic earnings per share$20.05 $19.79 $16.25 Diluted earnings per share20.02 19.75 16.23 Weighted-average basic shares2,776.5 2,873.9 2,938.6 Weighted-average diluted shares2,781.5 2,879.0 2,943.1 The Notes to Consolidated Financial Statements are an integral part of these statements." **Prior (2025):** Year ended December 31, (in millions, except per share data)202420232022RevenueInvestment banking fees$8,910 $6,519 $6,686 Principal transactions24,787 24,460 19,912 Lending- and deposit-related fees7,606 7,413 7,098 Asset management fees17,801 15,220 14,096 Commissions and other fees7,530 6,836 6,581 Investment securities losses(1,021)(3,180)(2,380)Mortgage fees and related income1,401 1,176 1,250 Card income5,497 4,784 4,420 Other income12,462 5,609 4,322 Noninterest revenue84,973 68,837 61,985 Interest income193,933 170,588 92,807 Interest expense101,350 81,321 26,097 Net interest income92,583 89,267 66,710 Total net revenue177,556 158,104 128,695 Provision for credit losses10,678 9,320 6,389 Noninterest expenseCompensation expense51,357 46,465 41,636 Occupancy expense5,026 4,590 4,696 Technology, communications and equipment expense9,831 9,246 9,358 Professional and outside services11,057 10,235 10,174 Marketing4,974 4,591 3,911 Other expense9,552 12,045 6,365 Total noninterest expense91,797 87,172 76,140 Income before income tax expense75,081 61,612 46,166 Income tax expense16,610 12,060 8,490 Net income$58,471 $49,552 $37,676 Net income applicable to common stockholders$56,868 $47,760 $35,892 Net income per common share dataBasic earnings per share$19.79 $16.25 $12.10 Diluted earnings per share19.75 16.23 12.09 Weighted-average basic shares2,873.9 2,938.6 2,965.8 Weighted-average diluted shares2,879.0 2,943.1 2,970.0 The Notes to Consolidated Financial Statements are an integral part of these statements. Investment securities losses 172JPMorgan Chase & Co./2024 Form 10-K 172JPMorgan Chase & Co./2024 Form 10-K 172JPMorgan Chase & Co./2024 Form 10-K 172 JPMorgan Chase & Co./2024 Form 10-K **Current (2026):** Year ended December 31, (in millions, except per share data)202520242023RevenueInvestment banking fees$9,615 $8,910 $6,519 Principal transactions27,212 24,787 24,460 Lending- and deposit-related fees9,093 7,606 7,413 Asset management fees20,327 17,801 15,220 Commissions and other fees8,539 7,530 6,836 Investment securities losses(57)(1,021)(3,180)Mortgage fees and related income1,381 1,401 1,176 Card income4,720 5,497 4,784 Other income6,174 12,462 5,609 Noninterest revenue87,004 84,973 68,837 Interest income193,341 193,933 170,588 Interest expense97,898 101,350 81,321 Net interest income95,443 92,583 89,267 Total net revenue182,447 177,556 158,104 Provision for credit losses14,212 10,678 9,320 Noninterest expenseCompensation expense54,487 51,357 46,465 Occupancy expense5,461 5,026 4,590 Technology, communications and equipment expense11,029 9,831 9,246 Professional and outside services12,356 11,057 10,235 Marketing5,531 4,974 4,591 Other expense6,776 9,552 12,045 Total noninterest expense95,640 91,797 87,172 Income before income tax expense72,595 75,081 61,612 Income tax expense15,547 16,610 12,060 Net income$57,048 $58,471 $49,552 Net income applicable to common stockholders$55,681 $56,868 $47,760 Net income per common share dataBasic earnings per share$20.05 $19.79 $16.25 Diluted earnings per share20.02 19.75 16.23 Weighted-average basic shares2,776.5 2,873.9 2,938.6 Weighted-average diluted shares2,781.5 2,879.0 2,943.1 The Notes to Consolidated Financial Statements are an integral part of these statements. Investment securities losses JPMorgan Chase & Co./2025 Form 10-K165 JPMorgan Chase & Co./2025 Form 10-K165 JPMorgan Chase & Co./2025 Form 10-K165 JPMorgan Chase & Co./2025 Form 10-K 165 --- ## Modified Risk: Income/(loss) before income tax expense/(benefit) **Key changes:** - Updated: "Income tax expense/(benefit) Net income Average equity Return on equity 308JPMorgan Chase & Co./2025 Form 10-K 308JPMorgan Chase & Co./2025 Form 10-K 308JPMorgan Chase & Co./2025 Form 10-K 308 JPMorgan Chase & Co./2025 Form 10-K (Table continued from previous page)As of or for the year ended December 31, (in millions, except ratios)CorporateReconciling Items(a) Total202520242023202520242023202520242023Noninterest revenue$911 $7,608 (g)$132 $(2,709)$(2,560)$(3,782)$87,004 $84,973 (g)$68,837 Net interest income6,114 9,786 7,906 (425)(477)(480)95,443 92,583 89,267 Total net revenue7,025 17,394 8,038 (3,134)(3,037)(4,262)182,447 177,556 158,104 Provision for credit losses7 10 171 - - - 14,212 10,678 9,320 Total noninterest expense(d)1,825 3,994 (h)5,601 - - - 95,640 91,797 (h)87,172 Income/(loss) before income tax expense/(benefit)5,193 13,390 2,266 (3,134)(3,037)(4,262)72,595 75,081 61,612 Income tax expense/(benefit)673 (f)2,789 (555)(3,134)(3,037)(4,262)15,547 16,610 12,060 Net income$4,520 $10,601 $2,821 $ - $ - $ - $57,048 $58,471 $49,552 Average equity$111,254 $110,370 $73,529 NANANA$332,754 $312,370 $282,056 Total assets1,329,632 1,323,967 1,348,437 NANANA4,424,900 4,002,814 3,875,393 Return on equityNMNMNMNMNMNM17 %18 %17 %Overhead ratioNMNMNMNMNMNM52 52 55 Reconciling Items(a) (g) (g) Provision for credit losses Total noninterest expense(d) (h) (h)" **Prior (2025):** (Table continued from previous page)As of or for the year ended December 31, (in millions, except ratios)CorporateReconciling Items(a) Total202420232022202420232022202420232022Noninterest revenue$7,608 (f)$132 $(1,798)$(2,560)$(3,782)$(3,148)$84,973 (f)$68,837 $61,985 Net interest income9,786 7,906 1,878 (477)(480)(434)92,583 89,267 66,710 Total net revenue17,394 8,038 80 (3,037)(4,262)(3,582)177,556 158,104 128,695 Provision for credit losses10 171 22 - - - 10,678 9,320 6,389 Total noninterest expense(d)3,994 (g)5,601 1,034 - - - 91,797 (g)87,172 76,140 Income/(loss) before income tax expense/(benefit)13,390 2,266 (976)(3,037)(4,262)(3,582)75,081 61,612 46,166 Income tax expense/(benefit)2,789 (555)(233)(3,037)(4,262)(3,582)16,610 12,060 8,490 Net income/(loss)$10,601 $2,821 $(743)$ - $ - $ - $58,471 $49,552 $37,676 Average equity$110,370 $73,529 $58,068 $ - $ - $ - $312,370 $282,056 $253,068 Total assets1,323,967 1,348,437 1,328,219 NANANA4,002,814 3,875,393 3,665,743 Return on equityNMNMNMNMNMNM18 %17 %14 %Overhead ratioNMNMNMNMNMNM52 55 59 Reconciling Items(a) (f) (f) Provision for credit losses Total noninterest expense(d) (g) (g) **Current (2026):** Income tax expense/(benefit) Net income Average equity Return on equity 308JPMorgan Chase & Co./2025 Form 10-K 308JPMorgan Chase & Co./2025 Form 10-K 308JPMorgan Chase & Co./2025 Form 10-K 308 JPMorgan Chase & Co./2025 Form 10-K (Table continued from previous page)As of or for the year ended December 31, (in millions, except ratios)CorporateReconciling Items(a) Total202520242023202520242023202520242023Noninterest revenue$911 $7,608 (g)$132 $(2,709)$(2,560)$(3,782)$87,004 $84,973 (g)$68,837 Net interest income6,114 9,786 7,906 (425)(477)(480)95,443 92,583 89,267 Total net revenue7,025 17,394 8,038 (3,134)(3,037)(4,262)182,447 177,556 158,104 Provision for credit losses7 10 171 - - - 14,212 10,678 9,320 Total noninterest expense(d)1,825 3,994 (h)5,601 - - - 95,640 91,797 (h)87,172 Income/(loss) before income tax expense/(benefit)5,193 13,390 2,266 (3,134)(3,037)(4,262)72,595 75,081 61,612 Income tax expense/(benefit)673 (f)2,789 (555)(3,134)(3,037)(4,262)15,547 16,610 12,060 Net income$4,520 $10,601 $2,821 $ - $ - $ - $57,048 $58,471 $49,552 Average equity$111,254 $110,370 $73,529 NANANA$332,754 $312,370 $282,056 Total assets1,329,632 1,323,967 1,348,437 NANANA4,424,900 4,002,814 3,875,393 Return on equityNMNMNMNMNMNM17 %18 %17 %Overhead ratioNMNMNMNMNMNM52 52 55 Reconciling Items(a) (g) (g) Provision for credit losses Total noninterest expense(d) (h) (h) --- ## Modified Risk: Notes to consolidated financial statements **Key changes:** - Updated: "Product/instrumentValuation methodologyClassification in the fair value hierarchyFund investments (e.g., mutual/collective investment funds, private equity funds, hedge funds, and real estate funds)Net asset value• NAV is supported by the ability to redeem and purchase at the NAV levelLevel 1• Adjustments to the NAV as required, for restrictions on redemption (e.g., lock-up periods or withdrawal limitations) or where observable activity is limitedLevel 2 or 3(a)Beneficial interests issued by consolidated VIEsValued using observable market information, where available.Level 2 or 3In the absence of observable market information, valuations are based on the fair value of the underlying assets held by the VIE.Structured notes (included in deposits, short-term borrowings and long-term debt)Valuations are based on discounted cash flow analyses that consider the embedded derivative and the terms and payment structure of the note.The embedded derivative features are considered using models such as the Black-Scholes option pricing model, simulation models, or a combination of models that may use observable or unobservable valuation inputs, depending on the embedded derivative." - Updated: "Refer to page 191 of this Note.Level 2 or 3 Level 2 or 3(a) Valuations are based on discounted cash flow analyses that consider the embedded derivative and the terms and payment structure of the note." - Updated: "Refer to page 191 of this Note." - Updated: "178JPMorgan Chase & Co./2025 Form 10-K 178JPMorgan Chase & Co./2025 Form 10-K 178JPMorgan Chase & Co./2025 Form 10-K 178 JPMorgan Chase & Co./2025 Form 10-K The following table presents the assets and liabilities reported at fair value as of December 31, 2025 and 2024, by major product category and fair value hierarchy." **Prior (2025):** Product/instrumentValuation methodologyClassifications in the fair value hierarchyDerivativesActively traded derivatives, e.g., exchange-traded derivatives, that are valued using quoted prices.Level 1Derivatives that are valued using models such as the Black-Scholes option pricing model, simulation models, or a combination of models that may use observable or unobservable valuation inputs as well as considering the contractual terms.The key valuation inputs used will depend on the type of derivative and the nature of the underlying instruments and may include equity prices, commodity prices, foreign exchange rates, volatilities, correlations, CDS spreads, recovery rates and prepayment speed.Level 2 or 3In addition, specific inputs used for derivatives that are valued based on models with significant unobservable inputs are as follows:Interest rate and FX exotic derivatives specific inputs include:• Interest rate curve• Interest rate volatility• Interest rate spread volatility• Bermudan switch value• Interest rate correlation• Interest rate-FX correlation• Foreign exchange correlationCredit derivatives specific inputs include:• Credit correlation between the underlying debt instrumentsEquity derivatives specific inputs include:• Forward equity price• Equity volatility• Equity correlation• Equity-FX correlation• Equity-IR correlationCommodity derivatives specific inputs include:• Forward commodity price• Commodity volatility• Commodity correlationAdditionally, adjustments are made to reflect counterparty credit quality (CVA) and the impact of funding (FVA). Refer to page 198 of this Note.Mortgage servicing rightsRefer to Mortgage servicing rights in Note 15.Level 3Private equity direct investmentsFair value is estimated using all available information; the range of potential inputs include:Level 2 or 3• Transaction prices• Trading multiples of comparable public companies• Operating performance of the underlying portfolio company• Adjustments as required, since comparable public companies are not identical to the company being valued, and for company-specific issues including lack of liquidity• Additional available inputs relevant to the investment Derivatives that are valued using models such as the Black-Scholes option pricing model, simulation models, or a combination of models that may use observable or unobservable valuation inputs as well as considering the contractual terms. The key valuation inputs used will depend on the type of derivative and the nature of the underlying instruments and may include equity prices, commodity prices, foreign exchange rates, volatilities, correlations, CDS spreads, recovery rates and prepayment speed. • Interest rate curve • Interest rate volatility • Interest rate spread volatility • Bermudan switch value • Interest rate correlation • Interest rate-FX correlation • Foreign exchange correlation • Credit correlation between the underlying debt instruments • Forward equity price • Equity volatility • Equity correlation • Equity-FX correlation • Equity-IR correlation • Forward commodity price • Commodity volatility • Commodity correlation Additionally, adjustments are made to reflect counterparty credit quality (CVA) and the impact of funding (FVA). Refer to page 198 of this Note. Refer to Mortgage servicing rights in Note 15. • Transaction prices • Adjustments as required, since comparable public companies are not identical to the company being valued, and for company-specific issues including lack of liquidity 184JPMorgan Chase & Co./2024 Form 10-K 184JPMorgan Chase & Co./2024 Form 10-K 184JPMorgan Chase & Co./2024 Form 10-K 184 JPMorgan Chase & Co./2024 Form 10-K Product/instrumentValuation methodologyClassification in the fair value hierarchyFund investments (e.g., mutual/collective investment funds, private equity funds, hedge funds, and real estate funds)Net asset value• NAV is supported by the ability to redeem and purchase at the NAV levelLevel 1• Adjustments to the NAV as required, for restrictions on redemption (e.g., lock-up periods or withdrawal limitations) or where observable activity is limitedLevel 2 or 3(a)Beneficial interests issued by consolidated VIEsValued using observable market information, where available.Level 2 or 3In the absence of observable market information, valuations are based on the fair value of the underlying assets held by the VIE.Structured notes (included in deposits, short-term borrowings and long-term debt)Valuations are based on discounted cash flow analyses that consider the embedded derivative and the terms and payment structure of the note.The embedded derivative features are considered using models such as the Black-Scholes option pricing model, simulation models, or a combination of models that may use observable or unobservable valuation inputs, depending on the embedded derivative. The specific inputs used vary according to the nature of the embedded derivative features, as described in the discussion above regarding derivatives valuation. Adjustments are then made to this base valuation to reflect the Firm's own credit risk (DVA). Refer to page 198 of this Note.Level 2 or 3 Level 2 or 3(a) Valuations are based on discounted cash flow analyses that consider the embedded derivative and the terms and payment structure of the note. The embedded derivative features are considered using models such as the Black-Scholes option pricing model, simulation models, or a combination of models that may use observable or unobservable valuation inputs, depending on the embedded derivative. The specific inputs used vary according to the nature of the embedded derivative features, as described in the discussion above regarding derivatives valuation. Adjustments are then made to this base valuation to reflect the Firm's own credit risk (DVA). Refer to page 198 of this Note. (a)Excludes certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient. JPMorgan Chase & Co./2024 Form 10-K185 JPMorgan Chase & Co./2024 Form 10-K185 JPMorgan Chase & Co./2024 Form 10-K185 JPMorgan Chase & Co./2024 Form 10-K 185 **Current (2026):** Product/instrumentValuation methodologyClassification in the fair value hierarchyFund investments (e.g., mutual/collective investment funds, private equity funds, hedge funds, and real estate funds)Net asset value• NAV is supported by the ability to redeem and purchase at the NAV levelLevel 1• Adjustments to the NAV as required, for restrictions on redemption (e.g., lock-up periods or withdrawal limitations) or where observable activity is limitedLevel 2 or 3(a)Beneficial interests issued by consolidated VIEsValued using observable market information, where available.Level 2 or 3In the absence of observable market information, valuations are based on the fair value of the underlying assets held by the VIE.Structured notes (included in deposits, short-term borrowings and long-term debt)Valuations are based on discounted cash flow analyses that consider the embedded derivative and the terms and payment structure of the note.The embedded derivative features are considered using models such as the Black-Scholes option pricing model, simulation models, or a combination of models that may use observable or unobservable valuation inputs, depending on the embedded derivative. The specific inputs used vary according to the nature of the embedded derivative features, as described in the discussion above regarding derivatives valuation. Adjustments are then made to this base valuation to reflect the Firm's own credit risk (DVA). Refer to page 191 of this Note.Level 2 or 3 Level 2 or 3(a) Valuations are based on discounted cash flow analyses that consider the embedded derivative and the terms and payment structure of the note. The embedded derivative features are considered using models such as the Black-Scholes option pricing model, simulation models, or a combination of models that may use observable or unobservable valuation inputs, depending on the embedded derivative. The specific inputs used vary according to the nature of the embedded derivative features, as described in the discussion above regarding derivatives valuation. Adjustments are then made to this base valuation to reflect the Firm's own credit risk (DVA). Refer to page 191 of this Note. (a)Excludes certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient. 178JPMorgan Chase & Co./2025 Form 10-K 178JPMorgan Chase & Co./2025 Form 10-K 178JPMorgan Chase & Co./2025 Form 10-K 178 JPMorgan Chase & Co./2025 Form 10-K The following table presents the assets and liabilities reported at fair value as of December 31, 2025 and 2024, by major product category and fair value hierarchy. Assets and liabilities measured at fair value on a recurring basisFair value hierarchyDecember 31, 2025 (in millions)Level 1Level 2Level 3Derivative netting adjustments(f)Total fair valueFederal funds sold and securities purchased under resale agreements$ - $327,018 $ - $ - $327,018 Securities borrowed - 98,111 - - 98,111 Trading assets:Debt instruments:Mortgage-backed securities:U.S. GSEs and government agencies(a) - 157,834 307 - 158,141 Residential - nonagency - 2,002 5 - 2,007 Commercial - nonagency - 1,937 - - 1,937 Total mortgage-backed securities - 161,773 312 - 162,085 U.S. Treasury, GSEs and government agencies(a)225,255 18,629 - - 243,884 Obligations of U.S. states and municipalities - 6,129 1 - 6,130 Certificates of deposit, bankers' acceptances and commercial paper - 1,345 - - 1,345 Non-U.S. government debt securities (b)77,385 47,054 245 - 124,684 Corporate debt securities - 45,053 454 - 45,507 Loans - 11,782 1,143 - 12,925 Asset-backed securities - 3,986 27 - 4,013 Total debt instruments302,640 295,751 2,182 - 600,573 Equity securities107,585 2,153 138 - 109,876 Physical commodities(c)20,880 947 30 - 21,857 Other - 12,346 444 - 12,790 Total debt and equity instruments(d)431,105 311,197 2,794 - 745,096 Derivative receivables:Interest rate1,579 276,565 3,740 (256,483)25,401 Credit - 12,018 1,006 (12,545)479 Foreign exchange111 181,318 1,807 (163,881)19,355 Equity(b)806 95,098 1,819 (91,856)5,867 Commodity - 29,961 554 (23,840)6,675 Total derivative receivables2,496 594,960 8,926 (548,605)57,777 Total trading assets(e)433,601 906,157 11,720 (548,605)802,873 Available-for-sale securities:Mortgage-backed securities:U.S. GSEs and government agencies(a)1 90,971 - - 90,972 Residential - nonagency - 5,991 - - 5,991 Commercial - nonagency - 4,481 3 - 4,484 Total mortgage-backed securities1 101,443 3 - 101,447 U.S. Treasury and government agencies315,361 461 - - 315,822 Obligations of U.S. states and municipalities - 20,240 - - 20,240 Non-U.S. government debt securities(b)34,308 11,347 - - 45,655 Corporate debt securities - 20 108 - 128 Asset-backed securities:Collateralized loan obligations - 21,947 - - 21,947 Other(a) - 1,959 - - 1,959 Total available-for-sale securities349,670 157,417 111 - 507,198 Loans - 67,622 3,062 - 70,684 Mortgage servicing rights - - 9,167 - 9,167 Other assets(e)6,864 6,890 1,047 - 14,801 Total assets measured at fair value on a recurring basis$790,135 $1,563,215 $25,107 $(548,605)$1,829,852 Deposits$ - $18,574 $2,356 $ - $20,930 Federal funds purchased and securities loaned or sold under repurchase agreements - 360,194 - - 360,194 Short-term borrowings - 26,902 5,558 - 32,460 Trading liabilities:Debt and equity instruments(d)135,366 33,998 326 - 169,690 Derivative payables:Interest rate2,071 253,078 2,434 (250,122)7,461 Credit - 15,487 2,141 (15,612)2,016 Foreign exchange118 176,521 1,502 (163,308)14,833 Equity(b)1,210 110,451 5,356 (102,211)14,806 Commodity - 25,799 570 (19,156)7,213 Total derivative payables3,399 581,336 12,003 (550,409)46,329 Total trading liabilities138,765 615,334 12,329 (550,409)216,019 Accounts payable and other liabilities3,967 2,655 38 - 6,660 Beneficial interests issued by consolidated VIEs - 5 - - 5 Long-term debt - 87,886 46,673 - 134,559 Total liabilities measured at fair value on a recurring basis$142,732 $1,111,550 $66,954 $(550,409)$770,827 Derivative netting adjustments(f) U.S. GSEs and government agencies(a) U.S. Treasury, GSEs and government agencies(a) Certificates of deposit, bankers' acceptances and commercial paper Non-U.S. government debt securities (b) Physical commodities(c) --- ## Modified Risk: JPMorganChase's businesses are highly regulated and are significantly affected by applicable law and supervisory expectations. **Key changes:** - Updated: "JPMorganChase must comply with applicable law in all of the jurisdictions around the world where it does business." **Prior (2025):** JPMorganChase is a financial services firm with operations worldwide. JPMorganChase must comply with the laws, rules and regulations that apply to its operations in all of the jurisdictions around the world in which it does business, and financial services firms such as JPMorganChase are subject to extensive and constantly-evolving regulation and supervision. The regulation and supervision of JPMorganChase significantly affects the way that it conducts its business and structures its operations, and JPMorganChase could be required to make changes to its business and operations in response to supervisory expectations or decisions or to new or changed laws, rules and regulations. These types of developments could result in JPMorganChase incurring additional costs or experiencing a reduction in revenues to comply with applicable laws, rules and regulations, which could reduce its profitability. Furthermore, JPMorganChase's entry into or acquisition of a new business or an increase in its principal investments may require JPMorganChase to comply with additional laws, rules, and regulations.Additionally, JPMorganChase's ability to execute certain business initiatives could become more challenging due to increased regulation in the financial services industry, such as limitations on late payment, overdraft and interchange fees. This could adversely affect JPMorganChase's earnings from its consumer businesses, prompting the reevaluation or adjustment of certain businesses or product offerings, as well as the reallocation of resources and incurrence of restructuring costs, which could impact revenue and profitability in the affected lines of business.In response to new and existing laws, rules and regulations and expanded supervision, JPMorganChase has in the past been and could in the future be, required to:•limit the products and services that it offers•reduce the liquidity that it can provide through its market-making activities•refrain from engaging in business opportunities that it might otherwise pursue•pay higher taxes (including as part of any minimum global tax regime), assessments, levies or other governmental charges, including in connection with the resolution of tax examinations•incur losses, including with respect to fraudulent transactions perpetrated against its customers•dispose of certain assets, and do so at times or prices that are disadvantageous•impose restrictions on certain business activities, or•increase the prices that it charges for products and services, which could reduce the demand for them.Any failure by JPMorganChase to comply with the laws, rules and regulations to which it is subject could result in:•increased regulatory and supervisory scrutiny•regulatory and governmental enforcement actions•the imposition of fines, penalties or other sanctions•increased exposure to litigation, or•harm to its reputation. rules and regulations. These types of developments could result in JPMorganChase incurring additional costs or experiencing a reduction in revenues to comply with applicable laws, rules and regulations, which could reduce its profitability. Furthermore, JPMorganChase's entry into or acquisition of a new business or an increase in its principal investments may require JPMorganChase to comply with additional laws, rules, and regulations. Additionally, JPMorganChase's ability to execute certain business initiatives could become more challenging due to increased regulation in the financial services industry, such as limitations on late payment, overdraft and interchange fees. This could adversely affect JPMorganChase's earnings from its consumer businesses, prompting the reevaluation or adjustment of certain businesses or product offerings, as well as the reallocation of resources and incurrence of restructuring costs, which could impact revenue and profitability in the affected lines of business. In response to new and existing laws, rules and regulations and expanded supervision, JPMorganChase has in the past been and could in the future be, required to: •limit the products and services that it offers •reduce the liquidity that it can provide through its market-making activities •refrain from engaging in business opportunities that it might otherwise pursue •pay higher taxes (including as part of any minimum global tax regime), assessments, levies or other governmental charges, including in connection with the resolution of tax examinations •incur losses, including with respect to fraudulent transactions perpetrated against its customers •dispose of certain assets, and do so at times or prices that are disadvantageous •impose restrictions on certain business activities, or •increase the prices that it charges for products and services, which could reduce the demand for them. Any failure by JPMorganChase to comply with the laws, rules and regulations to which it is subject could result in: •increased regulatory and supervisory scrutiny •regulatory and governmental enforcement actions •the imposition of fines, penalties or other sanctions •increased exposure to litigation, or •harm to its reputation. 11 11 11 11 Part I Part I Differences and inconsistencies in financial services regulation and supervision can negatively impact JPMorganChase's businesses, operations and financial results.The content and application of laws, rules and regulations affecting financial services firms can vary according to factors such as the size of the firm, the jurisdiction in which it is organized or operates, and other criteria. For example:•larger firms such as JPMorganChase are often subject to more stringent supervision, regulation and regulatory scrutiny•financial technology companies and other non-traditional competitors may not be subject to banking regulation, or may be supervised by a national or state regulatory agency that does not have the same resources or regulatory priorities as the regulatory agencies that supervise more diversified financial services firms, or •the financial services regulatory and supervisory framework in a particular jurisdiction may favor financial institutions that are based in that jurisdiction.These types of differences in the regulatory and supervisory framework can result in JPMorganChase losing market share to competitors that are less regulated or not subject to regulation, especially with respect to unregulated financial products.There can also be significant differences in the ways that similar regulatory initiatives affecting the financial services industry are implemented in the U.S. and in other countries and regions in which JPMorganChase does business. For example, when adopting rules that are intended to implement a global regulatory or supervisory standard, a national regulator may introduce additional or more restrictive requirements, which can create competitive disadvantages for financial services firms, such as JPMorganChase, that may be subject to those enhanced regulations.In addition, certain national and multi-national bodies and governmental agencies outside the U.S. have adopted laws, rules or regulations that may conflict with or prohibit JPMorganChase from complying with laws, rules and regulations to which it is otherwise subject, creating conflict of law issues that also increase its risk of non-compliance in those jurisdictions.Legislative and regulatory initiatives outside the U.S. have required and could in the future require JPMorganChase to make significant modifications to its operations and legal entity structure in the relevant countries or regions in order to comply with those requirements. These include laws, rules and regulations that have been adopted or proposed, as well as regulatory expectations, relating to:•the establishment of locally-based intermediate holding companies or operating subsidiaries•requirements to maintain minimum amounts of capital or liquidity in locally-based subsidiaries•the implementation of processes within locally-based subsidiaries to comply with local regulatory requirements or expectations•the separation (or "ring fencing") of core banking products and services from markets activities•requirements for the orderly resolution of financial institutions•requirements for executing or settling transactions on exchanges or through central counterparties ("CCPs"), or for depositing funds with other financial institutions or clearing and settlement systems•position limits and reporting rules for derivatives•governance and accountability regimes•conduct of business and control requirements, and•restrictions on compensation.These types of differences, inconsistencies and conflicts in financial services regulation have required and could in the future require JPMorganChase to:•divest assets or restructure its operations•maintain higher levels of capital and liquidity, or absorb increased capital and liquidity costs •incur higher operational and compliance costs •change the prices that it charges for its products and services •curtail the products and services that it offers to its customers and clients•curtail other business opportunities, including acquisitions or principal investments, that it otherwise would have pursued•become subject to regulatory fines, penalties or other sanctions, or•incur higher costs for complying with different legal and regulatory frameworks. Any or all of these factors could harm JPMorganChase's ability to compete against other firms that are not subject to the same laws, rules and regulations or supervisory oversight, or harm JPMorganChase's businesses, results of operations and profitability.Resolving regulatory investigations can subject JPMorganChase to significant penalties and collateral consequences, and could result in higher compliance costs or restrictions on its operations.JPMorganChase is subject to heightened oversight and scrutiny from regulatory authorities in many jurisdictions. JPMorganChase has paid significant fines, provided other monetary relief, incurred other Differences and inconsistencies in financial services regulation and supervision can negatively impact JPMorganChase's businesses, operations and financial results.The content and application of laws, rules and regulations affecting financial services firms can vary according to factors such as the size of the firm, the jurisdiction in which it is organized or operates, and other criteria. For example:•larger firms such as JPMorganChase are often subject to more stringent supervision, regulation and regulatory scrutiny•financial technology companies and other non-traditional competitors may not be subject to banking regulation, or may be supervised by a national or state regulatory agency that does not have the same resources or regulatory priorities as the regulatory agencies that supervise more diversified financial services firms, or •the financial services regulatory and supervisory framework in a particular jurisdiction may favor financial institutions that are based in that jurisdiction.These types of differences in the regulatory and supervisory framework can result in JPMorganChase losing market share to competitors that are less regulated or not subject to regulation, especially with respect to unregulated financial products.There can also be significant differences in the ways that similar regulatory initiatives affecting the financial services industry are implemented in the U.S. and in other countries and regions in which JPMorganChase does business. For example, when adopting rules that are intended to implement a global regulatory or supervisory standard, a national regulator may introduce additional or more restrictive requirements, which can create competitive disadvantages for financial services firms, such as JPMorganChase, that may be subject to those enhanced regulations.In addition, certain national and multi-national bodies and governmental agencies outside the U.S. have adopted laws, rules or regulations that may conflict with or prohibit JPMorganChase from complying with laws, rules and regulations to which it is otherwise subject, creating conflict of law issues that also increase its risk of non-compliance in those jurisdictions.Legislative and regulatory initiatives outside the U.S. have required and could in the future require JPMorganChase to make significant modifications to its operations and legal entity structure in the relevant countries or regions in order to comply with those requirements. These include laws, rules and regulations that have been adopted or proposed, as well as regulatory expectations, relating to: **Current (2026):** JPMorganChase must comply with applicable law in all of the jurisdictions around the world where it does business. Like other financial services firms, JPMorganChase is subject to extensive supervision and regulation that significantly affects the way that it conducts its business and structures its operations. The supervisory and regulatory framework also imposes requirements for JPMorganChase to implement and maintain compliance programs, and the complexity of these programs can increase its risks of non-compliance. In addition, entering into or acquiring a new business or expanding current business could increase the scope of applicable law or supervision and regulation to which JPMorganChase is subject. JPMorganChase has in the past and could in the future be required to modify its business and operations in response to changes in applicable law, regulatory decisions or supervisory expectations, such as: •limiting the products and services that it offers •increasing the prices that it charges for products and services, which could reduce the demand for them •reducing the liquidity that it provides through market-making activities •paying higher taxes or other governmental charges •absorbing losses arising from fraudulent transactions perpetrated against its clients and customers•disposing of certain assets, and doing so at disadvantageous times or prices•forgoing business opportunities that it might otherwise pursue, or •otherwise restricting its business activities.These types of changes could increase JPMorganChase's costs or reduce its revenues. In addition, any failure by JPMorganChase to comply with applicable law or meet supervisory expectations could result in:•increased regulatory scrutiny•enforcement actions by governmental authorities•the imposition of penalties•increased exposure to litigation, or•reputational harm.Furthermore, regulators or governmental authorities could adopt new interpretations of applicable law or supervisory expectations, and in certain circumstances, JPMorganChase could be required to demonstrate that prior conduct complies with these new interpretations. This situation could increase the risks associated with non-compliance and result in the imposition of penalties or enforcement actions. In addition, the business or operations of financial services firms such as JPMorganChase may be negatively affected by executive orders or other executive branch actions that seek to regulate those businesses or operations.Differences in the supervision and regulation of financial services firms could require JPMorganChase to modify its operations and incur higher operational and compliance costs.Various factors could influence the scope of applicable law and supervision for a firm that provides financial services, such as the size of the firm, the businesses in which it engages and its jurisdiction of organization. For example:•larger firms such as JPMorganChase often face more stringent supervision and regulation •certain competitors, such as financial technology companies, may not be subject to banking regulation, or may be subject to less stringent oversight, or•the regulatory and supervisory framework in a particular jurisdiction may favor locally-based firms.A highly-regulated financial services firm such as JPMorganChase can be vulnerable to competition from firms that are less regulated or unregulated. In addition, differences in regulatory implementation between the U.S. and other countries could adversely affect JPMorganChase's businesses. For example, a national financial services regulator may impose requirements •absorbing losses arising from fraudulent transactions perpetrated against its clients and customers •disposing of certain assets, and doing so at disadvantageous times or prices •forgoing business opportunities that it might otherwise pursue, or •otherwise restricting its business activities. These types of changes could increase JPMorganChase's costs or reduce its revenues. In addition, any failure by JPMorganChase to comply with applicable law or meet supervisory expectations could result in: •increased regulatory scrutiny •enforcement actions by governmental authorities •the imposition of penalties •increased exposure to litigation, or •reputational harm. Furthermore, regulators or governmental authorities could adopt new interpretations of applicable law or supervisory expectations, and in certain circumstances, JPMorganChase could be required to demonstrate that prior conduct complies with these new interpretations. This situation could increase the risks associated with non-compliance and result in the imposition of penalties or enforcement actions. In addition, the business or operations of financial services firms such as JPMorganChase may be negatively affected by executive orders or other executive branch actions that seek to regulate those businesses or operations. --- ## Modified Risk: 2025 compared with 2024 **Key changes:** - Updated: "Assets under management were $4.8 trillion, up 18%, and client assets were $7.1 trillion, up 20%." **Prior (2025):** Assets under management were $4.0 trillion and client assets were $5.9 trillion, each up 18%, driven by continued net inflows and higher market levels. Client assetsDecember 31, (in billions)202420232022Assets by asset classLiquidity$1,083 $926 $654 Fixed income851 751 638 Equity1,128 868 670 Multi-asset764 680 603 Alternatives219 197 201 Total assets under management4,045 3,422 2,766 Custody/brokerage/administration/deposits1,887 1,590 1,282 Total client assets(a)$5,932 $5,012 $4,048 Assets by client segmentPrivate Banking$1,234 $974 $751 Global Institutional1,692 1,488 1,252 Global Funds1,119 960 763 Total assets under management$4,045 $3,422 $2,766 Private Banking$2,974 $2,452 $1,964 Global Institutional1,820 1,594 1,314 Global Funds1,138 966 770 Total client assets(a)$5,932 $5,012 $4,048 Custody/brokerage/ administration/deposits **Current (2026):** Assets under management were $4.8 trillion, up 18%, and client assets were $7.1 trillion, up 20%. These increases were driven by higher market levels and continued net inflows. Client assetsDecember 31, (in billions)202520242023Assets by asset classLiquidity$1,279 $1,083 $926 Fixed income998 851 751 Equity1,400 1,128 868 Multi-asset884 764 680 Alternatives230 219 197 Total assets under management4,791 4,045 3,422 Custody/brokerage/administration/deposits2,327 1,887 1,590 Total client assets(a)$7,118 $5,932 $5,012 Assets by client segmentPrivate Banking(b)$1,414 $1,162 $924 Global Institutional1,953 1,692 1,488 Global Funds(b)1,424 1,191 1,010 Total assets under management$4,791 $4,045 $3,422 Private Banking(b)$3,549 $2,902 $2,402 Global Institutional2,121 1,820 1,594 Global Funds(b)1,448 1,210 1,016 Total client assets(a)$7,118 $5,932 $5,012 Alternatives Custody/brokerage/ administration/deposits --- ## Modified Risk: Trading arrangements **Key changes:** - Updated: "The following table provides information concerning Rule 10b5-1 trading arrangements (as defined in Item 408 of Regulation S-K under the Securities Exchange Act of 1934) adopted in the fourth quarter of 2025 by any director or officer who is subject to the filing requirements of Section 16 of the Securities Exchange Act of 1934 (each a "Section 16 Director or Officer")." - Updated: "No non-Rule 10b5-1 trading arrangements (as defined in Item 408 of Regulation S-K under the Securities Exchange Act of 1934) were adopted by any Section 16 Director or Officer during the fourth quarter of 2025." - Updated: "(b)Transaction by trust of which Ms." - Updated: "(d)Unless otherwise stated, the aggregate number of shares to be sold pursuant to each trading arrangement is dependent on the terms and conditions of, and taxes on, the applicable PSUs, and therefore, is indeterminable at this time." **Prior (2025):** The following table provides information concerning Rule 10b5-1 trading arrangements (as defined in Item 408 of Regulation S-K under the Securities Exchange Act of 1934) adopted in the fourth quarter of 2024 by any director or any officer who is subject to the filing requirements of Section 16 of the Securities Exchange Act of 1934 ("Section 16 Director or Officer"). These trading arrangements are intended to satisfy the affirmative defense of Rule 10b5-1(c). Certain of the Firm's Section 16 Directors or Officers may participate in employee stock purchase plans, 401(k) plans or dividend reinvestment plans of the Firm that have been designed to comply with Rule 10b5-1(c). No non-Rule 10b5-1 trading arrangements (as defined in Item 408 of Regulation S-K under the Securities Exchange Act of 1934) were adopted by any Section 16 Director or Officer during the fourth quarter of 2024. Additionally, no Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were terminated by any Section 16 Director or Officer in the fourth quarter of 2024. NameTitleAdoption dateDuration(c)Aggregate number of shares to be soldLori BeerChief Information OfficerNovember 15, 2024November 15, 2024 - March 31, 20254,105 James Dimon(a)Chairman and CEONovember 7, 2024November 7, 2024 - August 1, 20251,000,000 Robin LeopoldHead of Human ResourcesNovember 4, 2024November 4, 2024 - December 31, 20252,500 Jennifer Piepszak(b)Co-CEO, CIBOctober 30, 2024October 30, 2024 - March 31, 20258,545 Troy RohrbaughCo-CEO, CIBNovember 15, 2024November 15, 2024 - June 30, 202575,000 Duration(c) Aggregate number of shares to be sold Lori Beer Chief Information Officer November 15, 2024 - March 31, 2025 James Dimon(a) James Dimon (a) Chairman and CEO November 7, 2024 - August 1, 2025 Robin Leopold Head of Human Resources November 4, 2024 - December 31, 2025 Jennifer Piepszak(b) Jennifer Piepszak (b) Co-CEO, CIB October 30, 2024 - March 31, 2025 Troy Rohrbaugh Co-CEO, CIB November 15, 2024 - June 30, 2025 (a)Transaction by trusts and an entity of which Mr. Dimon has either a direct or indirect pecuniary interest. (b)On January 14, 2025, JPMorganChase announced that Ms. Piepszak became a Chief Operating Officer of the Firm, effective January 14, 2025. (c)Sales under the trading arrangement will not commence until completion of the required cooling off period under Rule 10b5-1. Subject to compliance with Rule 10b5-1, duration could cease earlier than the final date shown above to the extent that the aggregate number of shares to be sold under the trading arrangement have been sold. (c) Item 9C. Disclosure regarding Foreign Jurisdictions that Prevent Inspections.Not applicable. Item 9C. Disclosure regarding Foreign Jurisdictions that Prevent Inspections.Not applicable. Item 9C. Disclosure regarding Foreign Jurisdictions that Prevent Inspections. Not applicable. 41 41 41 41 **Current (2026):** The following table provides information concerning Rule 10b5-1 trading arrangements (as defined in Item 408 of Regulation S-K under the Securities Exchange Act of 1934) adopted in the fourth quarter of 2025 by any director or officer who is subject to the filing requirements of Section 16 of the Securities Exchange Act of 1934 (each a "Section 16 Director or Officer"). These trading arrangements are intended to satisfy the affirmative defense of Rule 10b5-1(c). Certain of the Firm's Section 16 Directors or Officers may participate in employee stock purchase plans, 401(k) plans or dividend reinvestment plans of the Firm that have been designed to comply with Rule 10b5-1(c). No non-Rule 10b5-1 trading arrangements (as defined in Item 408 of Regulation S-K under the Securities Exchange Act of 1934) were adopted by any Section 16 Director or Officer during the fourth quarter of 2025. Additionally, no Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were terminated by any Section 16 Director or Officer in the fourth quarter of 2025. NameTitleAdoption dateDuration(c)Aggregate number of shares to be sold(d)Ashley BaconChief Risk OfficerNovember 12, 2025November 12, 2025 - June 30, 202650% of the net issued shares received as a result of Performance Share Units ("PSUs") vesting on March 25, 2026Jeremy BarnumChief Financial OfficerNovember 14, 2025November 14, 2025 - June 30, 202650% of the net issued shares received as a result of PSUs vesting on March 25, 2026Lori BeerChief Information OfficerNovember 13, 2025November 13, 2025 - June 30, 202650% of the net issued shares received as a result of PSUs vesting on March 25, 2026James Dimon(a)Chairman and CEONovember 10, 2025November 10, 2025 - August 7, 2026200,000Mary ErdoesCEO, AWMNovember 12, 2025November 12, 2025 - June 30, 202650% of the net issued shares received as a result of PSUs vesting on March 25, 2026Marianne Lake(b)CEO, CCBNovember 12, 2025November 12, 2025 - June 30, 202650% of the net issued shares received as a result of PSUs vesting on March 25, 2026Robin LeopoldHead of Human ResourcesNovember 14, 2025November 14, 2025 - June 30, 2026865Douglas PetnoCo-CEO, CIBNovember 14, 2025November 14, 2025 - June 30, 202650% of the net issued shares received as a result of PSUs vesting on March 25, 2026Jennifer PiepszakChief Operating OfficerNovember 13, 2025November 13, 2025 - June 30, 202650% of the net issued shares received as a result of PSUs vesting on March 25, 2026Troy RohrbaughCo-CEO, CIBNovember 13, 2025November 13, 2025 - June 30, 202650,000 Duration(c) Aggregate number of shares to be sold(d) James Dimon(a) Marianne Lake(b) (a)Transaction by trusts of which Mr. Dimon has either a direct or indirect pecuniary interest. (b)Transaction by trust of which Ms. Lake has either a direct or indirect pecuniary interest. (c)Sales under the trading arrangement will not commence until completion of the required cooling off period under Rule 10b5-1. Subject to compliance with Rule 10b5-1, duration could cease earlier than the final date shown above to the extent that the aggregate number of shares to be sold under the trading arrangement have been sold. (d)Unless otherwise stated, the aggregate number of shares to be sold pursuant to each trading arrangement is dependent on the terms and conditions of, and taxes on, the applicable PSUs, and therefore, is indeterminable at this time. 35 35 35 35 --- ## Modified Risk: Management's discussion and analysis: **Key changes:** - Updated: "Introduction Executive Overview Consolidated Results of Operations Consolidated Balance Sheets and Cash Flows Analysis Explanation and Reconciliation of the Firm's Use of Non-GAAP Financial Measures Business Segment & Corporate Results Firmwide Risk Management Strategic Risk Management Capital Risk Management Liquidity Risk Management Reputation Risk Management Credit and Investment Risk Management Credit Portfolio Consumer Credit Portfolio Wholesale Credit Portfolio Allowance for Credit Losses Investment Portfolio Risk Management Market Risk Management Country Risk Management Climate Risk Management Operational Risk Management Critical Accounting Estimates Used by the Firm Accounting and Reporting Developments Forward-Looking Statements" **Prior (2025):** Financial:Audited financial statements:50Three-Year Summary of Consolidated Financial Highlights168Management's Report on Internal Control Over Financial Reporting51Five-Year Stock Performance169Report of Independent Registered Public Accounting FirmManagement's discussion and analysis:172Consolidated Financial Statements52Introduction177Notes to Consolidated Financial Statements54Executive Overview59Consolidated Results of Operations63Consolidated Balance Sheets and Cash Flows AnalysisSupplementary information:67Explanation and Reconciliation of the Firm's Use of Non-GAAP Financial Measures322Distribution of assets, liabilities and stockholders' equity; interest rates and interest differentials70Business Segment & Corporate Results327Glossary of Terms and Acronyms91Firmwide Risk Management96Strategic Risk Management97Capital Risk Management108Liquidity Risk Management117Credit and Investment Risk Management141Market Risk Management150Country Risk Management152Climate Risk Management153Operational Risk Management161Critical Accounting Estimates Used by the Firm165Accounting and Reporting Developments167Forward-Looking Statements Three-Year Summary of Consolidated Financial Highlights Management's Report on Internal Control Over Financial Reporting Five-Year Stock Performance Report of Independent Registered Public Accounting Firm Consolidated Financial Statements Introduction Notes to Consolidated Financial Statements Executive Overview Consolidated Results of Operations Consolidated Balance Sheets and Cash Flows Analysis Explanation and Reconciliation of the Firm's Use of Non-GAAP Financial Measures Distribution of assets, liabilities and stockholders' equity; interest rates and interest differentials Business Segment & Corporate Results Glossary of Terms and Acronyms Firmwide Risk Management Strategic Risk Management Capital Risk Management Liquidity Risk Management Credit and Investment Risk Management Market Risk Management Country Risk Management Climate Risk Management Operational Risk Management Critical Accounting Estimates Used by the Firm Accounting and Reporting Developments Forward-Looking Statements JPMorgan Chase & Co./2024 Form 10-K49 JPMorgan Chase & Co./2024 Form 10-K49 JPMorgan Chase & Co./2024 Form 10-K49 JPMorgan Chase & Co./2024 Form 10-K 49 Financial Financial **Current (2026):** Introduction Executive Overview Consolidated Results of Operations Consolidated Balance Sheets and Cash Flows Analysis Explanation and Reconciliation of the Firm's Use of Non-GAAP Financial Measures Business Segment & Corporate Results Firmwide Risk Management Strategic Risk Management Capital Risk Management Liquidity Risk Management Reputation Risk Management Credit and Investment Risk Management Credit Portfolio Consumer Credit Portfolio Wholesale Credit Portfolio Allowance for Credit Losses Investment Portfolio Risk Management Market Risk Management Country Risk Management Climate Risk Management Operational Risk Management Critical Accounting Estimates Used by the Firm Accounting and Reporting Developments Forward-Looking Statements --- ## Modified Risk: Governance and oversight **Key changes:** - Updated: "The governance structure for the Global Cybersecurity and Technology Controls organization is designed to appropriately identify, escalate and mitigate cybersecurity risks." **Prior (2025):** The Global Chief Information Security Officer ("CISO") reports to the Global Chief Information Officer, and is a member of key cybersecurity governance forums. The CISO leads the Global Cybersecurity and Technology Controls organization, which is responsible for identifying technology and cybersecurity risks and for implementing and maintaining controls to manage cybersecurity threats. The CISO and the members of senior management within Global Technology and the Cybersecurity and Technology Controls organizations all have relevant expertise and experience in cybersecurity and information technology risk management, including relevant experience at the Firm, at other financial services companies or in other highly-regulated industries. The CISO is responsible for the Firm's Information Security Program, which is designed to prevent, detect and respond to cyber attacks in order to help safeguard the confidentiality, integrity and availability of the Firm's infrastructure, resources and information. The program includes managing the Firm's global cybersecurity operations centers, providing training, conducting cybersecurity event simulation exercises, implementing the Firm's policies and standards relating to technology risk and cybersecurity management, and enhancing, as needed, the Firm's cybersecurity capabilities. The Firm's Information Security Program includes the following functions: Cyber Operations, which is responsible for implementing and maintaining controls designed to detect and defend the Firm against cyber attacks, and includes a dedicated function for incident response and ongoing monitoring for cybersecurity threats and vulnerabilities, including those among the Firm's third-party suppliers. Cyber Operations , which is responsible for implementing and maintaining controls designed to detect and defend the Firm against cyber attacks, and includes a dedicated function for incident response and ongoing monitoring for cybersecurity threats and vulnerabilities, including those among the Firm's third-party suppliers. Technology Governance, Risk & Controls, which is responsible for operationalizing technology risk and control frameworks, analyzing regulatory developments that may impact the Firm, and developing control catalogs and assessments of controls, as well as overseeing governance and reporting of technology and cybersecurity risk. Security Awareness, which provides awareness and training that reinforces information risk and security management practices and compliance with the Firm's policies, standards and practices. The training is mandatory for all employees globally on a periodic basis, and it is supplemented by Firmwide testing initiatives, including periodic phishing tests. The Firm also provides specialized security training to JPMorgan Chase & Co./2024 Form 10-K155 JPMorgan Chase & Co./2024 Form 10-K155 JPMorgan Chase & Co./2024 Form 10-K155 JPMorgan Chase & Co./2024 Form 10-K 155 **Current (2026):** The governance structure for the Global Cybersecurity and Technology Controls organization is designed to appropriately identify, escalate and mitigate cybersecurity risks. Cybersecurity risk management and its governance and oversight are integrated into the Firm's operational risk management framework, including through the escalation of key risk and control issues to management and the development of risk mitigation plans for heightened risk and control issues. IRM independently assesses and challenges the activities and risk management practices of the Global Cybersecurity and Technology Controls organization related to the identification, assessment, measurement and mitigation of cybersecurity risk. As needed, the Firm engages third-party assessors or auditing firms with industry-recognized expertise on cybersecurity matters to review specific aspects of the Firm's cybersecurity risk management framework, processes and controls. The governance and oversight for cybersecurity risk management includes governance forums that inform management of key areas of concern regarding the prevention, detection, mitigation and remediation of cybersecurity risks. The Cybersecurity and Technology Controls Operating Committee ("CTOC") is the principal management committee that oversees the Firm's assessment and management of cybersecurity risk, including oversight of the implementation and maintenance of appropriate controls in support of the Firm's Information Security Program. The membership of the CTOC includes senior representatives from the Global Cybersecurity and Technology Controls organization and relevant corporate functions, including IRM and Internal Audit. The CTOC escalates key operational risk and control issues, as appropriate, to the Global Technology Operating Committee ("GTOC") or its business control committee or to the appropriate LOB and Corporate Control Committees. The GTOC is responsible for the governance of the Firmwide Global Technology organization, including oversight of Firmwide technology strategies, the delivery of technology and technology operations, the effective use of information technology resources, and monitoring and resolving key operational risk and control matters arising in the Global Technology organization.As part of its oversight of management's implementation and maintenance of the Firm's risk management framework, the Firm's Board of Directors receives periodic updates from the CIO, the CISO and senior members of the CTOC concerning cybersecurity matters. These updates generally include information regarding cybersecurity and technology developments, the Firm's Information Security Program and recommended changes to that program, cybersecurity policies and practices, and ongoing initiatives to improve information security, as well as any significant cybersecurity incidents and the Firm's efforts to address those incidents. The Audit Committee and the Risk Committee assist the Board in this oversight. The Cybersecurity and Technology Controls Operating Committee ("CTOC") is the principal management committee that oversees the Firm's assessment and management of cybersecurity risk, including oversight of the implementation and maintenance of appropriate controls in support of the Firm's Information Security Program. The membership of the CTOC includes senior representatives from the Global Cybersecurity and Technology Controls organization and relevant corporate functions, including IRM and Internal Audit. The CTOC escalates key operational risk and control issues, as appropriate, to the Global Technology Operating Committee ("GTOC") or its business control committee or to the appropriate LOB and Corporate Control Committees. The GTOC is responsible for the governance of the Firmwide Global Technology organization, including oversight of Firmwide technology strategies, the delivery of technology and technology operations, the effective use of information technology resources, and monitoring and resolving key operational risk and control matters arising in the Global Technology organization. As part of its oversight of management's implementation and maintenance of the Firm's risk management framework, the Firm's Board of Directors receives periodic updates from the CIO, the CISO and senior members of the CTOC concerning cybersecurity matters. These updates generally include information regarding cybersecurity and technology developments, the Firm's Information Security Program and recommended changes to that program, cybersecurity policies and practices, and ongoing initiatives to improve information security, as well as any significant cybersecurity incidents and the Firm's efforts to address those incidents. The Audit Committee and the Risk Committee assist the Board in this oversight. JPMorgan Chase & Co./2025 Form 10-K149 JPMorgan Chase & Co./2025 Form 10-K149 JPMorgan Chase & Co./2025 Form 10-K149 JPMorgan Chase & Co./2025 Form 10-K 149 --- *Data sourced from SEC EDGAR. Last updated 2026-05-05.*