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extraordinarily difficult legal, regulatory and political environment that followed.We have long contended that these factors explained why bank stock price/earnings ratios were appropriately depressed. And we believe the anticipatedreversal of many negatives and an increasingly more favorable businessenvironment, coupled with our sustained, strong business results, are among thereasons our stock price has done so well this past year.We do not worry about the stock price in the short run, and we do not worry aboutquarterly earnings. Our mindset is that we consistently build the company — ifyou do the right things, the stock price will take care of itself. In the next section,I discuss in more detail how we think about building shareholder value for the longrun while also taking care of customers, employees and communities.JPMorgan Chase stock is owned by large institutions, pension plans, mutual fundsand directly by individual investors. However, it is important to remember thatin almost all cases, the ultimate owner is an individual. Well over 100 millionpeople in the United States own stocks, and a large percentage of them, in oneway or another, own JPMorgan Chase stock. Many of these people are veterans,teachers, police officers, firefighters, retirees, or those saving for a home, schoolor retirement. Your management team goes to work every day recognizing theenormous responsibility that we have to perform for our shareholders.In this letter, I discuss the issues highlighted below — which describe many of oursuccesses and opportunities, as well as our challenges and responses.6

I.JPMorgan Chase Business StrategiesPage 81.How has the company grown?Page 82.How will the company continue to grow? What are the organic growthopportunities?Page 103.Why is organic growth a better way to grow — and why is it sometimes difficult?Page 124.Is there a conflict between building shareholder value vs. serving customers,taking care of employees and lifting up communities?Page 13Transparency, financial discipline and a fortress balance sheet. Why is thisdiscipline so important?Page 186.What risks worry us the most? And what could go wrong?Page 217.How is the company dealing with bureaucracy and complacency that ofteninfect large companies?Page 26What are the firm’s views on succession?Page 285.8.II. Public PolicyPage 291.What has gone wrong in public policy?Page 302.Poor public policy — how has this happened?Page 323.We can fix this problem through intelligent, thoughtful, analytical andcomprehensive policy.Page 334.The need for solutions through collaborative, competent government.Page 345.A competitive business tax system is a key pillar of a growth strategy.Page 356.We should reform and expand the Earned Income Tax Credit and investin the workforce of the future.Page 377.America’s growing fiscal deficit and fixing our entitlement programs.Page 398.Why is smart regulation vs. just more regulation so important?Page 419.Public company corporate governance — how would you change it? Andthe case against earnings guidance.Page 4310. Global engagement, trade and immigration — America’s role in the worldis critical.Page 447

I. J P M ORG AN CHA S E BUS IN ESS ST R AT EGI E SSince our business leaders describe their businesses later in this report, I am not going to berepetitive within this section. I encourage you to read their letters following this Letter toShareholders. Instead, in this section, I deal with some critical themes around how we runthis company – in good times and in bad times – and how we are continuing to build forwhat we think will be a bright future.1. How has the company grown?Below is a powerful representation of howwe have grown and built client franchisesover time.You can see from the numbers circled withinthe chart below that we have grown ourmarket share fairly substantially in most ofour businesses. In some cases, these marketClient Franchises Built Over the Long Term200620163.6%8.3%8.7%11 (25)8%NM15.9% 6613,079 805.1%14 (38)10%16%21.5% 1,0635,258 2358.5%16 (40)9%13%22.4% 1,1925,130 2738.7%Global Investment Banking fees4Market share4Total Markets revenue5Market share5FICC5Market share5Equities5Market share5Assets under custody (AUC)( T)#28.7%#86.3%#77.0%#85.0% 13.9#17.9%#111.2%#111.7%#210.1% 20.5#18.1%#111.0%#111.4%co–#110.3% 23.5CommercialBanking# of top 50 MSAs with dedicated teamsBankersNew relationships (gross)Gross Investment Banking revenue ( B)Average loans ( B)Average deposits ( B)Multifamily lending7261,203NA 0.7 53.6 73.6#28471,642911 2.3 179.4 174.4#1501,7661,062 2.3 198.1 177.0#1 Top 3 in overall Middle Market, large Middle Marketand Asset Based Lending Bookrunner21 Industry-leading credit performance — 6th straightyear of net recoveries or single digit NCO rateAsset & WealthManagementMutual funds with a 4/5 star rating8Ranking of long-term client asset flows9Active AUM market share10North America Private Bank (Euromoney)Client assets ( T)Client assets market share11Average loans ( B)# of Wealth Management client advisors119NA1.8%#1 1.33% 26.51,506220#22.5%#1 2.54% 112.92,504235#22.4%#1 2.84% 123.52,605 86% of 10-year long-term mutual fund assets undermanagement (AUM) in top 2 quartiles22 #2 in 5-year cumulative long-term client asset flowsamong publicly traded peers #1 Private Bank in N.A. and LatAm23 Revenue and long-term AUM growth 90% since 2006Deposits market share# of top 50 Chase marketswhere we are #1 (top 3)Average deposits growth rateActive mobile customers growth rateCredit card sales market share2Merchant processing volume3 ( B)# of branchesClient investment assets ( B)Business Banking primary market share241Consumer &CommunityBankingCorporate &InvestmentBank2017 Relationships with 50% of U.S. households I ndustry-leading deposit growth12 #1 U.S. credit card issuer13 #1 U.S. co-brand credit card issuer14 #1 U.S. credit and debit payments volume15 #2 merchant acquirer16 80% of Fortune 500 companies do business with us #1 in both N.A. and EMEA Investment Banking fees17 #1 in Global Long-Term Debt and Loan Syndications17 #1 in FICC productivity18 Top 3 Custodian globally with AUC of 23.5T19 #1 in USD payment volumes with 20% share in 201720 In Total Markets, J.P. Morgan has ranked #1 in eachyear since 201225 Equities and Prime are now ranked co-#125 J.P. Morgan Research ranked as the #1 GlobalResearch Firm26For information on footnotes 1–23, refer to slides 105-106 in the 2018 JPMorgan Chase Strategic Update presentation, which is available on JPMorgan Chase & Co.’s vestor-relations/document/3cea4108 strategic update.pdf), under the heading Investor Relations, Events & Presentations,JPMorgan Chase 2018 Investor Day, and on Form 8-K as furnished to the U.S. Securities and Exchange Commission (SEC) on February 27, 2018, which is available on the SEC’swebsite (www.sec.gov).24Source: Barlow Research Associates, Primary Bank Market Share Database as of 4Q17. Rolling eight quarter average of small businesses with revenues of 100,000 – 25 million25Source: Preliminary Coalition Global Industry Revenue Pool based on internal business structure, 201726Source: Institutional Investor magazine survey of large investors, 2017NM Not meaningfulNA Not availableFICC Fixed Income, Currencies and CommoditiesN.A. North America8EMEA Europe/Middle East/AfricaMSAs Metropolitan Statistical AreasLatAm Latin America/CaribbeanB BillionsT Trillions

I. JPMORG AN CHAS E BUS INESS STRATEGIESshare increases were due to our acquisitionsof Bear Stearns and Washington Mutual. Butin all cases, this growth is driven by consistent and disciplined investment in our businesses. The chart below shows how we tryto measure customer satisfaction in multipleways. For the most part, we have seen a risein these scores as well. It is a given that youwill not grow your share – unless you aresatisfying your customers – and we knowthey can always walk across the street to beserved by another bank.Increasing Customer SatisfactionU.S. retail banking satisfaction1ChaseIndustry averageBig banks2 Regional banks Midsized banks2011201220132014201520162017Source: J.D. Power U.S. Retail Banking Satisfaction Study, 20172Big banks defined as top six U.S. banks1Other important metricsIncreasing market share is a sign of increasing customer satisfactionConsumer & Community Banking Chase continues to lead the big banks and the industry average in U.S. Consumer Bank Customer Satisfaction studies includingbeing ranked #1 in retail banking advice in the U.S. and ranked #2 in the first ever National Bank study1 Customer satisfaction, measured by Net Promoter Scores (“NPS”), has continued to increase across most of our businessessince we brought CCB together five years ago. NPS increased year over year in Merchant Services, Business Banking, HomeLending, and Auto Digitally-engaged customers who bank with Chase are more satisfied than all other households, with higher NPS ( 19%),higher retention rates ( 10 percentage points), and higher card spend ( 118%) Digitally-engaged established customers who use Chase as their primary bank also have 40% more deposits and investmentswith usCorporate & Investment Bank Highest ever client satisfaction and retention levels for Custody & Fund ServicesCommercial Banking NPS for Commercial Banking Middle Market clients increased from 35 to 45 from 2011 to 20172 #1 in overall satisfaction, perceived satisfaction, customer relationships and transactions/payments processing3Asset & Wealth Management J.P. Morgan has ranked as the #1 private bank in the U.S. for nine consecutive years and #1 in Latin America for fiveconsecutive years4 J.P. Morgan has ranked as the Leading Pan-European Fund Management Firm for eight consecutive years51Source: J.D. Power 2018 U.S. Retail Banking Advice Study & 2017 National Bank Satisfaction StudySource: Greenwich Associates Commercial Banking Study, 2017Source: CFO magazine's Commercial Banking Survey, 20174Source: Euromoney, 20185Source: Thomson Reuters, 2017239

I. JPMOR GA N CH A SE BU S I N ESS ST R AT EG I ES2. How will the company continue to grow? What are the organic growth opportunities?We have good market share in most businesses, but we see organic growth opportunities almost everywhere – some large andsome small. Following are a few examples:Consumer & Community Banking We recently announced that we will startto expand the consumer branch businessinto cities like Boston, Philadelphia andWashington, D.C. Over the next five years,we hope to expand to another 15-20 newmarkets. We know the competition istough, but we have much to offer. WhenJPMorgan Chase comes to town, we comenot just with our consumer branches butalso with mortgages, investments, creditcards, private banking, small and midsizedbusiness banking, government businessand corporate responsibility initiatives tosupport our communities. In addition, this year we are rolling outmany new exciting products and havemade several improvements around thecustomer’s experience, including a fullymobile bank pilot (Finn), digital accountopenings, facial recognition in our app,the Amazon Prime Rewards Visa card anda simpler online application for BusinessBanking customers. We also are adding many tools that willhelp our customers manage their financialaffairs. For example, in the credit card business, we will be allowing our customersto review and decide how and where theywant their cards and credit lines to be used.In Consumer Banking, we are adding financial planning tools and insights that helpcustomers make the most of their money –and there’s more coming.Corporate & Investment Bank We see growth opportunities even inFixed Income, Currencies and Commodities, where we already have the #1 marketshare at 11.4%. There may be some underlying growth as the capital markets of theworld grow, even though this is partiallyoffset by declining margins like wehave experienced over the last 30 years.However, we see opportunities to gainshare in various products and in certainregions where we have low share. This opportunity would be true for Investment Banking, too. Country by countryand industry by industry, there are stillplenty of opportunities to increase our lowmarket share. For example, we have 10%share in the United States but less than5% share in Asia. In Treasury Services and Custody, whereour market shares are 4.7% and 8.0%,respectively, we believe we can growsignificantly by adding bankers, buildingbetter technology, entering new countries,building better products and continuing todo a great job for clients. In this business,while you make large initial investmentsin order to grow, when you gain clients,they usually stick with you for a long time. Over time, we do expect to expand ourCorporate & Investment Bank into newcountries, which will benefit all the businesses within this franchise.Commercial Banking This past year, Commercial Banking hascompleted its expansion into the top 50markets in the United States – this willdrive growth for decades. And remember,when Commercial Banking opens itsdoors, it also helps drive the growth ofour Private Bank and the Corporate &Investment Bank businesses. Commercial Banking has added manyspecialized industry bankers to betterserve those specific segments.10

I. JPMORG AN CHAS E BUS INESS STRATEGIESAsset & Wealth Management In the United States, our share of theultra-high-net-worth market ( 10 millionor greater) is 8%. We believe we have asuperior business and that we can growour share by essentially adding bankers,branches and better products. In the high-net-worth business ( 3 millionto 10 million) and the Chase affluentbusiness ( 500,000 to 5 million), ourmarket shares are only 1% and 4%, respectively. We have no doubt that we can growby adding bankers and locations, particularly because we have some exciting newproducts coming soon. There is no reasonwe can’t more than double our share overthe next 10 years. We are also adding new products, likeindex funds and exchange-traded funds(ETF), that we believe will help drivegrowth.Across the companyIn addition, we are undertaking manyinitiatives across the company that will helpgrow our businesses and better serve ourcustomers. On the payments front, we have developed multiple products to make wholesalepayments better, easier and faster. Weare rolling out these products across ourplatforms, and they should help us solidifyand grow our position. On the consumer side, we have introduced Chase Pay, the digital equivalentto using a debit or credit card, whichallows customers to pay online or in-storewith their mobile phone. We also introduced Zelle, a real-time consumer-toconsumer payments system, whichallows customers to easily, safely andimmediately send money to their friendsand family. We expect these productsto drive lots of customer interactionsand make our payments offeringscompelling, even as some very smartfintech competitors emerge. Across the company – not just in technology – we have thousands of employeeswho are data scientists or have advanceddegrees in science, technology, engineering and math. Of the nearly 50,000people in technology at the company,more than 31,000 are in development andengineering jobs, and more than 2,500are in digital technology. Think of thesetalented individuals as driving changeacross the company. Artificial intelligence, big data and machinelearning are helping us reduce risk andfraud, upgrade service, improve underwriting and enhance marketing across thefirm. And this is just the beginning. Our shared technology infrastructure– our networks, data centers, and thepublic and private cloud – decreases costs,enhances efficiency and makes all ourbusinesses more productive. In addition,this allows us to embrace the fact thatevery business and merchant has its ownsoftware and also wants easy, integratedaccess to our products and services. Weare delivering on that through the creationof a common JPMorgan Chase API (application programming interface) store thatallows customers to add simple, securepayments to their software. And we arebuilding everything digital – both for individual customers and large corporations –from onboarding to idea generation. Increasingly, the management teamsof Consumer & Community Banking,Corporate & Investment Bank,Commercial Banking and Asset & WealthManagement share ideas, share platformsand serve each other’s customers. Thesuccess of any one business almost alwayshelps the other three.11

I. JPMOR GA N CH A SE BU S I N ESS ST R AT EG I ES Privacy and safety – we spend an enormous amount of resources to protectall of our clients and customers fromfraud, cybersecurity risk and invasionof their privacy. These capabilities areextraordinary, and we will continue torelentlessly build them. As part of this, wehave consistently warned our customersabout privacy issues, which will becomeincreasingly critical for all industriesas consumers realize the severity ofthe problem. Last year, we wrote abouta new arrangement with Intuit thatbears repeating – it briefly describedthe problem and presented a solution,which we hope might set a standard forprotecting customers while giving themcontrol of their data.For years, we have been describing therisks – to banks and customers – that arisewhen customers freely give away theirbank passcodes to third-party services,allowing virtually unlimited access totheir data. Customers often do not knowthe liability this may create for them iftheir passcode is misused, and, in manycases, they do not realize how their dataare being used. For example, access tothe data may continue for years aftercustomers have stopped using the thirdparty services.We recently completed a newarrangement with Intuit, which we thinkrepresents an important step forward.In addition to protecting the bank, thecustomers and even the third party (inthis case, Intuit), it allows customers toshare data – how and when they want.Under this arrangement, customers canchoose whatever they would like to shareand opt to turn these selections on or offas they see fit. The data will be “pushed”to Intuit, eliminating the need for sharingbank passcodes, which protects the bankand our customers and reduces potentialliabilities on Intuit’s part as well. We arehoping this sets a new standard for datasharing relationships.Events from the past year underscore theimportance of efforts like this. As questionsare raised about how consumers’ information is shared and protected, I stronglybelieve that data privacy and security shouldbe a way in which we and other businessescompete to serve customers.3. Why is organic growth a better way to grow — and why is it sometimes difficult?Organic growth is all about hiring andtraining bankers, opening branches,improving or innovating new products andbuilding new technology. It is hard work.In fact, institutionally, there is often a lotof resistance to it. It’s easier not to addexpenses, even when they are good for t

and JPMorgan Chase & Co. merger (7/1/2004—12/31/2017) Compounded annual gain 12.7% 8.8% 3.9% Overall gain 403.5% 210.4% 193.1% Tangible book value over time captures the company's use of capital, balance sheet and profitability. In this chart, we are looking at heritage Bank One shareholders and JPMorgan Chase & Co. shareholders.