Transcription
EARNINGS RELEASE FINANCIAL SUPPLEMENTFOURTH QUARTER 2021
JPMORGAN CHASE & CO.TABLE OF CONTENTSPage(s)Consolidated ResultsConsolidated Financial HighlightsConsolidated Statements of IncomeConsolidated Balance SheetsCondensed Average Balance Sheets and Annualized YieldsReconciliation from Reported to Managed BasisSegment Results - Managed BasisCapital and Other Selected Balance Sheet ItemsEarnings Per Share and Related Information2–345678910Business Segment ResultsConsumer & Community Banking (“CCB”)Corporate & Investment Bank (“CIB”)Commercial Banking (“CB”)Asset & Wealth Management Credit-Related Information24–27Non-GAAP Financial MeasuresGlossary of Terms and Acronyms (a)28(a) Refer to the Glossary of Terms and Acronyms on pages 305–311 of JPMorgan Chase & Co.’s (the “Firm’s”) Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 Form 10-K”) andthe Glossary of Terms and Acronyms and Line of Business Metrics on pages 185-190 and pages 191-193, respectively, of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended September 30,2021.
JPMORGAN CHASE & CO.CONSOLIDATED FINANCIAL HIGHLIGHTS(in millions, except per share and ratio data)QUARTERLY TRENDSSELECTED INCOME STATEMENT DATAReported BasisTotal net revenue (a)Total noninterest expensePre-provision profit (b)Provision for credit lossesNET INCOME4Q21 Managed Basis (c)Total net revenueTotal noninterest expensePre-provision profit (b)Provision for credit lossesNET INCOMEEARNINGS PER SHARE DATANet income:BasicDilutedAverage shares: BasicDilutedMARKET AND PER COMMON SHARE DATAMarket capitalizationCommon shares at period-endBook value per shareTangible book value per share (“TBVPS”) (b)Cash dividends declared per share29,25717,88811,369(1,288)10,3993Q21 30,34917,88812,461(1,288)10,399 3.333.332,977.32,981.8 (1,527)11,687 30,44117,06313,378(1,527)11,687 1Q21 5.1 85)11,948 (f)3.793.783,036.63,041.9 464,7782,988.284.8568.910.90FULL YEAR32,26618,72513,541(4,156)14,3004Q20 1)(1)(12)(12)(3)(3) ,11918,72514,394(4,156)14,300 4.514.503,073.53,078.9 460,8203,027.182.3166.560.904Q21 Change3Q214Q20 20212020 121,64971,34350,306(9,256)48,334 ,13127(4)NM668.898.883,082.43,087.47373(2)(2) 387,4923,049.481.7566.113.6020(3)886 15.3915.363,021.53,026.6 466,2062,944.188.0771.533.80 FINANCIAL RATIOS (d)Return on common equity (“ROE”)Return on tangible common equity (“ROTCE”) (b)Return on assets16 %191.0818 %221.2418 %231.2923 %291.6119 %241.4219 %231.3012 %140.91CAPITAL RATIOS (e)Common equity Tier 1 (“CET1”) capital ratioTier 1 capital ratioTotal capital ratioTier 1 leverage ratioSupplementary leverage ratio (“SLR”)13.0 % (g)15.0(g)16.8(g)6.5(g)5.4(g)12.9 %15.016.96.65.513.0 %15.117.16.65.413.1 %15.017.26.76.713.1 %15.017.37.06.913.0 % (g)15.0(g)16.8(g)6.5(g)5.4(g)13.1 %15.017.37.06.9(a)(b)(c)(d)(e)(f)(g)2021 Change2020In the first quarter of 2021, the Firm reclassified certain deferred investment tax credits from accounts payable and other liabilities to other assets to be a reduction to the carrying value of certain tax-oriented investments. The reclassification also resulted in an increase inincome tax expense and a corresponding increase in other income, with no effect on net income. Prior-period amounts have been revised to conform with the current presentation, including the Firm’s effective income tax rate. The reclassification did not change the Firm’sresults of operations on a managed basis.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 page 9 for a reconciliation of common stockholders’ equity to TCE. Refer to page 28 for a further discussion ofthese measures.Refer to Reconciliation from Reported to Managed Basis on page 7 for a further discussion of managed basis.Quarterly ratios are based upon annualized amounts.The capital metrics reflect the relief provided by the Federal Reserve Board (the “Federal Reserve”) in response to the COVID-19 pandemic, including the Current Expected Credit Losses ("CECL") capital transition provisions that became effective in the first quarter of 2020 andexpired on December 31, 2021. For the periods ended December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020, the impact of the CECL capital transition provisions resulted in an increase to CET1 capital of 2.9 billion, 3.3 billion, 3.8 billion, 4.5 billion and 5.7 billion, respectively. The cumulative impact of 2.9 billion not recognized in CET1 capital at December 31, 2021 will be phased in at 25% per year beginning January 1, 2022. For the periods ended March 31, 2021 and December 31, 2020, theSLR reflected the temporary exclusions of U.S. Treasury securities and deposits at Federal Reserve Banks, which became effective April 1, 2020 and remained in effect through March 31, 2021. Refer to Capital Risk Management on pages 48-53 of the Firm’s Quarterly Reporton Form 10-Q for the quarterly period ended September 30, 2021 for additional information on the Firm’s capital metrics. Refer to Regulatory Developments Relating to the COVID-19 Pandemic on pages 52-53 and Capital Risk Management on pages 91-101 of the Firm’s 2020Form 10-K for additional information.On September 21, 2021, the Board of Directors declared a quarterly common stock dividend of 1.00 per share.Estimated.Page 2
JPMORGAN CHASE & CO.CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED(in millions, except ratio and headcount data)QUARTERLY TRENDS4Q21SELECTED BALANCE SHEET DATA (period-end)Total assets (a)Loans:Consumer, excluding credit card loansCredit card loansWholesale loansTotal LoansDeposits:U.S. . offices:Noninterest-bearingInterest-bearingTotal deposits(a)(b)(c)4Q20 3,684,256 3,689,336 291279,35444 %HeadcountLINE OF BUSINESS NET INCOME/(LOSS)Consumer & Community BankingCorporate & Investment BankCommercial BankingAsset & Wealth ManagementCorporateNET INCOME1Q21 3,757,576Loans-to-deposits ratioLINE OF BUSINESS NET REVENUE (b)Consumer & Community BankingCorporate & Investment BankCommercial BankingAsset & Wealth ManagementCorporateTOTAL NET REVENUE2Q21 3,743,567Long-term debtCommon stockholders’ equityTotal stockholders’ equity95% CONFIDENCE LEVEL - TOTAL VaRAverage VaR3Q21FULL YEAR4Q21 Change3Q214Q2043 %271,025 3745 %265,790 12,27511,5342,6124,473(545)30,349 4,2274,8471,2511,146(1,072)10,399 3644 %260,110(c) 12,52112,3962,5204,300(1,296)30,441 4,3415,5621,4071,194(817)11,687 4312,76013,2142,4834,107(1,169)31,395 5,6344,9851,4201,153(1,244)11,948 10611 % 12,51714,6052,3934,077(473)33,119 6,7285,7401,1681,244(580)14,300 20202021 Change2020 3,743,567 89294,127281,685249,291279,35474547 %259,350 —%202144 %11 %47 )30,161(2)(7)4458—(4)2616(119)1 50,07351,74910,00816,957(3,483) 125,304 51,26849,2849,31314,240(1,176) 3)(13)(11)(4)(31)(11)(2)(9)(38)46(199)(14) 1552410358(112)66 20,93021,1345,2464,737(3,713)48,334255,351 8,21717,0942,5782,992(1,750)29,1316In the first quarter of 2021, the Firm reclassified certain deferred investment tax credits. Prior-period amounts have been revised to conform with the current presentation. Refer to footnote (a) on page 2 for further information.Refer to Reconciliation from Reported to Managed Basis on page 7 for a further discussion of managed basis.Prior-period amount has been revised to conform with the current presentation.Page 3
JPMORGAN CHASE & CO.CONSOLIDATED STATEMENTS OF INCOME(in millions, except per share and ratio data)QUARTERLY TRENDSREVENUEInvestment banking feesPrincipal transactionsLending- and deposit-related feesAsset management, administration and commissionsInvestment securities gains/(losses)Mortgage fees and related incomeCard incomeOther income (a)Noninterest revenueInterest incomeInterest expenseNet interest incomeTOTAL NET REVENUE 91,41813,60129,257 ,4801,40013,08029,647 ,0941,35312,74130,479 11,38212,88932,266FULL YEAR 01,29213,25829,3354Q21 Change3Q214Q206%35 311043(1)—2021 7,8645,55352,311121,6492020 239,96054,563119,9512021 Change202039 %(10)816NM(30)15(1)6(10)(44)(4)1NMProvision for credit 6)17,480NONINTEREST EXPENSECompensation expenseOccupancy expenseTechnology, communications and equipment expenseProfessional and outside servicesMarketingOther expense (b)TOTAL NONINTEREST EXPENSEIncome before income tax expenseIncome tax expense (a)NET 6,65635,8156,68429,1313.803.79(11)(11)(12)(12)NET INCOME PER COMMON SHARE DATABasic earnings per shareDiluted earnings per shareFINANCIAL RATIOSReturn on common equity (c)Return on tangible common equity (c)(d)Return on assets (c)Effective income tax rate (a)Overhead ratio(a)(b)(c)(d) 3.333.3316 %191.0817.861 3.743.7418 %221.2417.258 3.793.7818 %231.2920.958 4.514.5023 %291.6119.258 19 %241.4220.055 15.3915.3619 %231.3018.959 8.898.88102(4)1623(8)7666866737312 %140.9118.756In the first quarter of 2021, the Firm reclassified certain deferred investment tax credits. Prior-period amounts have been revised to conform with the current presentation. Refer to footnote (a) on page 2 for further information.Included Firmwide legal expense of 137 million, 76 million, 185 million, 28 million and 276 million for the three months ended December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020, respectively, and 426 million and 1.1 billionfor the full year 2021 and 2020 respectively.Quarterly ratios are based upon annualized amounts.Refer to page 28 for further discussion of ROTCE.Page 4
JPMORGAN CHASE & CO.CONSOLIDATED BALANCE SHEETS(in millions)Dec 31,2021ASSETSCash and due from banksDeposits with banksFederal funds sold and securities purchased underresale agreementsSecurities borrowedTrading assets:Debt and equity instrumentsDerivative receivablesAvailable-for-sale (“AFS”) securitiesHeld-to-maturity (”HTM”) securities, net of allowance for credit lossesInvestment securities, net of allowance for credit lossesLoansLess: Allowance for loan lossesLoans, net of allowance for loan lossesAccrued interest and accounts receivablePremises and equipmentGoodwill, MSRs and other intangible assetsOther assets (a)TOTAL ASSETSLIABILITIESDepositsFederal funds purchased and securities loaned or soldunder repurchase agreementsShort-term borrowingsTrading liabilities:Debt and equity instrumentsDerivative payablesAccounts payable and other liabilities (a)Beneficial interests issued by consolidated VIEsLong-term debtTOTAL LIABILITIESSTOCKHOLDERS’ EQUITYPreferred stockCommon stockAdditional paid-in capitalRetained earningsAccumulated other comprehensive income/(loss)Shares held in RSU Trust, at costTreasury stock, at costTOTAL STOCKHOLDERS’ EQUITYTOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY(a)(b) 26,438714,396Sep 30,2021 25,857734,012Jun 30,2021 Mar 31,202126,592678,829 Dec 31, 2021ChangeSep 30,Dec 31,20212020Dec 31,202025,397685,675 8102,57027,07056,691181,498 1518,1501,026,465116,39526,99656,566175,104 5419,5001,021,454125,25326,63154,655209,254 3,684,256 2,462,303 2,402,353 2,305,217 2,278,112 (84)—(105,415)294,127 0,041 86,386 4,75426,92654,588200,247 80,714 ,012,85328,328984,52590,50327,10953,428151,539 79,354 ��(20)511In the first quarter of 2021, the Firm reclassified certain deferred investment tax credits. Prior-period amounts have been revised to conform with the current presentation. Refer to footnote (a) on page 2 for further information.Prior-period amounts have been revised to conform with the current presentation.Page 5
JPMORGAN CHASE & CO.CONDENSED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS(in millions, except rates)QUARTERLY TRENDSAVERAGE BALANCESASSETSDeposits with banksFederal funds sold and securities purchased under resale agreementsSecurities borrowedTrading assets - debt instrumentsInvestment securitiesLoansAll other interest-earning assets (a)Total interest-earning assetsTrading assets - equity and other instrumentsTrading assets - derivative receivablesAll other noninterest-earning assets (b)TOTAL ASSETSLIABILITIESInterest-bearing depositsFederal funds purchased and securities loaned orsold under repurchase agreementsShort-term borrowings (c)Trading liabilities - debt and all other interest-bearing liabilities (d)Beneficial interests issued by consolidated VIEsLong-term debtTotal interest-bearing liabilitiesNoninterest-bearing depositsTrading liabilities - equity and other instrumentsTrading liabilities - derivative payablesAll other noninterest-bearing liabilities (b)TOTAL LIABILITIESPreferred stockCommon stockholders’ equityTOTAL STOCKHOLDERS’ EQUITYTOTAL LIABILITIES AND STOCKHOLDERS’ EQUITYAVERAGE RATES (e)INTEREST-EARNING ASSETSDeposits with banksFederal funds sold and securities purchased under resale agreementsSecurities borrowed (f)Trading assets - debt instrumentsInvestment securitiesLoansAll other interest-earning assets (a)Total interest-earning assetsINTEREST-BEARING LIABILITIESInterest-bearing depositsFederal funds purchased and securities loaned orsold under repurchase agreementsShort-term borrowings (c)Trading liabilities - debt and all other interest-bearing liabilities (d)(f)Beneficial interests issued by consolidated VIEsLong-term debtTotal interest-bearing liabilities4Q21 3Q212Q211Q21 13,219,786177,31565,574262,544 3,725,219 1,800,654 1,696,850 1,669,376 1,610,467 288,643 87,785 83,515 75,854 71,735 3,398,713(3)62(16)(1)4(1)14(2)332——30.09 %0.35(0.15)2.431.323.990.641.80 (h)(h)0.06 ,730247,532 060,254130,6463,337,855150,77066,024277,006 3,831,6550.09 ,212281,992 3,728,687FULL YEAR4Q21 Change3Q214Q20 (h)(h)0.04 1225,290 3,398,713(h)(h)0.03 51 %(18)39(18)13649135(12)23132021 2021 ,035,399123,0793,215,942172,82269,101267,337 3,725,202 18 1,694,865 ,318186,7553,441,20733,027250,968283,995 66,764 3,202,15021518(24)(2)162612(2)16171066160.07 749227,813 3,202,150(h)(h)0.17 10.220.410.960.101.122.270.46INTEREST RATE SPREADNET YIELD ON INTEREST-EARNING ASSETS1.58 %1.63 %1.58 %1.62 %1.57 %1.62 %1.64 %1.69 %1.74 %1.80 %1.59 %1.64 %1.88 %1.98 %Memo: Net yield on interest-earning assets excluding CIB Markets (g)1.90 %1.91 %1.90 %1.93 %2.01 %1.91 %2.30 %(a)(b)(c)(d)(e)(f)(g)(h)62 %(2)33(12)163561643(6)1716Includes 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.In the first quarter of 2021, the Firm reclassified certain deferred investment tax credits. Prior-period amounts have been revised to conform with the current presentation. Refer to footnote (a) on page 2 for further information.Includes commercial paper.All other interest-bearing liabilities include brokerage-related customer payables.Interest includes the effect of related hedging derivatives. Taxable-equivalent amounts are used where applicable.Negative interest income and yields are related to the impact of current interest rates combined with the fees paid on client-driven securities borrowed balances. The negative interest expense related to prime brokerage customer payables is recognized in interest expense andreported within trading liabilities - debt and all other liabilities.Net yield on interest-earning assets excluding CIB Markets is a non-GAAP financial measure. Refer to page 28 for a further discussion of this measure.Prior-period amounts have been revised to conform with the current presentation.Page 6
JPMORGAN CHASE & CO.RECONCILIATION FROM REPORTED TO MANAGED BASIS(in millions, except ratios)The Firm prepares its Consolidated Financial Statements using accounting principles generally accepted in the U.S. (“U.S. GAAP”). That presentation, which is referred to as “reported” basis, provides the reader with an understanding of the Firm’s results that can be trackedconsistently from year-to-year and enables a comparison of the Firm’s performance with other companies’ U.S. GAAP financial statements. In addition to analyzing the Firm’s results on a reported basis, management reviews Firmwide results, including the overhead ratio, on a“managed” basis; these Firmwide managed basis results are non-GAAP financial measures. The Firm also reviews the results of the lines of business on a managed basis. Refer to the notes on Non-GAAP Financial Measures on page 28 for additional information onmanaged basis.The following summary table provides a reconciliation from reported U.S. GAAP results to managed basis.QUARTERLY TRENDS4Q21OTHER INCOMEOther income - reported (a)Fully taxable-equivalent adjustments (a)(b)Other income - managedTOTAL NONINTEREST REVENUETotal noninterest revenue - reportedFully taxable-equivalent adjustmentsTotal noninterest revenue - managedNET INTEREST INCOMENet interest income - reportedFully taxable-equivalent adjustments (b)Net interest income - managedTOTAL NET REVENUETotal net revenue - reportedFully taxable-equivalent adjustmentsTotal net revenue - managedPRE-PROVISION PROFITPre-provision profit - reportedFully taxable-equivalent adjustmentsPre-provision profit - managedINCOME BEFORE INCOME TAX EXPENSEIncome before income tax expense - reportedFully taxable-equivalent adjustmentsIncome before income tax expense - managedINCOME TAX EXPENSEIncome tax expense - reported (a)Fully taxable-equivalent adjustments (a)(b)Income tax expense - managedOVERHEAD RATIOOverhead ratio - reportedOverhead ratio - managed(a)(b) 3Q211,1809842,164 15,65698416,640 13,60110813,709 29,2571,09230,349 11,3691,09212,461 12,6571,09213,749 2,2581,0923,350 61 %59 2Q211,3326902,022 16,56769017,257 13,08010413,184 29,64779430,441 12,58479413,378 14,11179414,905 2,4247943,218 58 %56 FULL YEAR1Q211,1958072,002 17,73880718,545 12,74110912,850 30,47991631,395 12,81291613,728 15,09791616,013 3,1499164,065 58 %56 4Q21 Change3Q214Q204Q201,1237441,867 19,37774420,121 12,88910912,998 32,26685333,119 13,54185314,394 17,69785318,550 3,3978534,250 58 %57 20211,4117292,140(11)%437(16)%351 16,07772916,806(5)43(4)(3)35(1) 13,2589713,3554443113 29,33582630,161(1)38——321 13,28782614,113(10)38(7)(14)32(12) 15,17682616,002(10)38(8)(17)32(14) 3,0408263,866(7)384(26)32(13) 55 %53 2021 Change202020204,8303,2258,055 69,3383,22572,563 52,31143052,741 121,6493,655125,304 50,3063,65553,961 59,5623,65563,217 11,2283,65514,883 59 %57 268235456 %54In the first quarter of 2021, the Firm reclassified certain deferred investment tax credits. Prior-period amounts have been revised to conform with the current presentation. Refer to footnote (a) on page 2 for further information.Predominantly recognized in CIB, CB and Corporate.Page 7
JPMORGAN CHASE & CO.SEGMENT RESULTS - MANAGED BASIS(in millions)QUARTERLY TRENDS4Q21TOTAL NET REVENUE (fully taxable-equivalent (“FTE”))Consumer & Community BankingCorporate & Investment BankCommercial BankingAsset & Wealth ManagementCorporateTOTAL NET REVENUETOTAL NONINTEREST EXPENSEConsumer & Community BankingCorporate & Investment BankCommercial BankingAsset & Wealth ManagementCorporateTOTAL NONINTEREST EXPENSEPRE-PROVISION PROFIT/(LOSS)Consumer & Community BankingCorporate & Investment BankCommercial BankingAsset & Wealth ManagementCorporatePRE-PROVISION PROFITPROVISION FOR CREDIT LOSSESConsumer & Community BankingCorporate & Investment BankCommercial BankingAsset & Wealth ManagementCorporatePROVISION FOR CREDIT LOSSESNET INCOME/(LOSS)Consumer & Community BankingCorporate & Investment BankCommercial BankingAsset & Wealth ManagementCorporateTOTAL NET INCOME 3Q2112,27511,5342,6124,473(545)30,349 7,7545,8271,0592,99725117,888 4,5215,7071,5531,476(796)12,461 (1,060)(126)(89)(36)23(1,288) 4,2274,8471,2511,146(1,072)10,399 2Q2112,52112,3962,5204,300(1,296)30,441 7,2385,8711,0322,76216017,063 5,2836,5251,4881,538(1,456)13,378 (459)(638)(363)(60)(7)(1,527) 4,3415,5621,4071,194(817)11,687 FULL YEAR1Q2112,76013,2142,4834,107(1,169)31,395 7,0626,5239812,58651517,667 5,6986,6911,5021,521(1,684)13,728 (1,868)(79)(377)(10)49(2,285) 5,6344,9851,4201,153(1,244)11,948 4Q2012,51714,6052,3934,077(473)33,119 7,2027,1049692,57487618,725 5,3157,5011,4241,503(1,349)14,394 (3,602)(331)(118)(121)16(4,156) 6,7285,7401,1681,244(580)14,300 4Q21 (119)1 7(1)395751018119(30)11 0)(11)333(30)(12) 92NMNM32(2)(9)(38)46(199)(14) 202050,07351,74910,00816,957(3,483)125,304 29,25625,3254,04110,9191,80271,343 20,81726,4245,9676,038(5,285)53,961 (6,989)(1,174)(947)(227)81(9,256) 20,93021,1345,2464,737(3,713)48,334 2021 2(1,750)29,131NMNMNMNM23NM1552410358(112)66Page 8
JPMORGAN CHASE & CO.CAPITAL AND OTHER SELECTED BALANCE SHEET ITEMS(in millions, except ratio data)Dec 31,2021Sep 30,2021Jun 30,2021Mar 31,2021Dec 31,2020Dec 31, 2021ChangeSep 30,Dec 31,20212020CAPITAL (a)Risk-based capital metricsStandardizedCET1 capitalTier 1 capitalTotal capitalRisk-weighted assetsCET1 capital ratioTier 1 capital ratioTotal capital ratio 213,949(e)246,201(e)274,939(e)1,641,394(e)13.0 % (e)15.0(e)16.8(e) 209,917244,207274,9941,628,40612.9 %15.016.9 209,010241,356274,4431,601,63113.0 %15.117.1 206,078237,333271,4071,577,00713.1 %15.017.2 205,078234,844269,9231,560,60913.1 %15.017.32%1—14%525AdvancedCET1 capitalTier 1 capitalTotal capitalRisk-weighted assetsCET1 capital ratioTier 1 capital ratioTotal capital ratio 213,949(e)246,201(e)265,846(e)1,549,168(e)13.8 % (e)15.9(e)17.2(e) 209,917244,207264,4691,544,51213.6 %15.817.1 209,010241,356262,3641,514,38613.8 %15.917.3 206,078237,333258,6351,503,82813.7 %15.817.2 205,078234,844257,2281,484,43113.8 %15.817.3211—4534 3,782,074(e)6.5 % (e) 3,675,8036.6 % 3,680,8306.6 % 3,565,5456.7 % 3,353,3197.0 %3134,571,985(e)5.4 % (e)4,463,9045.5 %4,456,5575.4 %3,522,6296.7 %3,401,5426.9 %234Leverage-based capital metricsAdjusted average assets (b)Tier 1 leverage ratioTotal leverage exposureSLRTANGIBLE COMMON EQUITY (period-end) (c)Common stockholders’ equityLess: GoodwillLess: Other intangible assetsAdd: Certain deferred tax liabilities (d)Total tangible common equity 259,28950,3158822,499 210,591 255,20350,3139022,500 206,488 253,54849,2568502,461 205,903 249,15149,2438752,457 201,490 249,29149,2489042,453 201,5922—(2)—242(2)24TANGIBLE COMMON EQUITY (average) (c)Common stockholders’ equityLess: GoodwillLess: Other intangible assetsAdd: Certain deferred tax liabilities (d)Total tangible common equity 253,80550,3628962,502 205,049 253,55649,4578492,480 205,730 250,84949,2608642,459 203,184 245,54249,2498912,455 197,857 241,67247,8427522,416 195,494—261—551945 —3(2)—268(2)6INTANGIBLE ASSETS (period-end)GoodwillMortgage servicing rightsOther intangible assetsTotal intangible assets(a)(b)(c)(d)(e) 50,3155,49488256,691 50,3135,35190256,566 49,2564,54985054,655 49,2434,47087554,588 49,2483,27690453,428FULL YEAR2021 250,96849,5848762,474202,9822020 236,86547,8207812,399190,6632021 Change20206%41236The capital metrics reflect the relief provided by the Federal Reserve Board in response to the COVID-19 pandemic, including the CECL capital transition provisions that became effective in the first quarter of 2020 and expired on December 31, 2021. For the periods endedDecember 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020, the impact of the CECL capital transition provisions resulted in an increase to CET1 capital of 2.9 billion, 3.3 billion, 3.8 billion, 4.5 billion and 5.7 billion, respectively. Thecumulative impact of 2.9 billion not recognized in CET1 capital at December 31, 2021 will be phased in at 25% per year beginning January 1, 2022. For the periods ended March 31, 2021 and December 31, 2020, the SLR reflected the temporary exclusions of U.S. Treasurysecurities and deposits at Federal Reserve Banks, which became effective April 1, 2020 and remained in effect through March 31, 2021. Refer to Capital Risk Management on pages 48-53 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended September30, 2021 for additional information on the Firm’s capital metrics. Refer to Regulatory Developments Relating to the COVID-19 Pandemic on pages 52-53 and Capital Risk Management on pages 91-101 of the Firm’s 2020 Form 10-K for additional information.Adjusted average assets, for purposes of calculating the leverage ratios, includes total quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 capital, predominantly goodwill and other intangible assets.Refer to page 28 for further discussion of TCE.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.Estimated.Page 9
JPMORGAN CHASE & CO.EARNINGS
JPMORGAN CHASE & CO. CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except ratio and headcount data) QUARTERLY TRENDS FULL YEAR 4Q21 Change 2021 Change
