JPMorgan Chase : 4Q21 Earnings Press Release

JPMorgan Chase & Co.

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

JPMORGAN CHASE REPORTS FOURTH-QUARTER 2021 NET INCOME OF $10.4 BILLION ($3.33 PER SHARE),

OR $9.0 BILLION EXCLUDING CREDIT RESERVE RELEASES OF $1.8 BILLION ($2.86 PER SHARE)1

FULL-YEAR 2021 NET INCOME OF $48.3 BILLION ($15.36 PER SHARE)

FULL-YEAR 2021 RESULTS
	ROE 19%			CET1 Capital Ratios2		Net payout LTM3,4
	1
	ROTCE 23%			Std. 13.0% | Adv. 13.8%		61%
	ROTCE ex. reserve release1	18%

FOURTH-QUARTER 2021 RESULTS5

Firmwide

Metrics

ROE 16%

ROTCE 19%

CCB

4Q21 ROE 33%

2021 ROE 41%

CIB

4Q21 ROE 22%

2021 ROE 25%

CB

4Q21 ROE 20%

2021 ROE 21%

AWM

4Q21 ROE 32%

2021 ROE 33%

• Reported revenue of $29.3 billion; managed revenue of $30.3 billion1
• Credit costs net benefit of $1.3 billion included a $1.8 billion net reserve release and $550 million of net charge-offs
• Average loans up 6%; average deposits up 17%
• $1.7 trillion of liquidity sources, including HQLA and unencumbered marketable securities6
• Average deposits up 20%; client investment assets up 22%
• Average loans down 1% YoY and up 1% QoQ; Card net charge-off rate of 1.28%
• Debit and credit card sales volume7 up 26%
• Active mobile customers8 up 11%
• #1 ranking for Global Investment Banking fees with 9.5% wallet share for the year
• Total Markets revenue of $5.3 billion, down 11%, with Fixed Income Markets down 16% and Equity Markets down 2%
• Gross Investment Banking revenue of $1.5 billion, up 50%
• Average loans down 3% YoY and up 2% QoQ; average deposits up 17%
• Assets under management (AUM) of $3.1 trillion, up 15%
• Average loans up 18% YoY and 4% QoQ; average deposits up 47%

Jamie Dimon, Chairman and CEO, commented on the financial results: "JPMorgan

Chase reported solid results across our businesses benefiting from elevated capital markets activity and a pick up in lending activity as firmwide average loans were up 6%. The economy continues to do quite well despite headwinds related to the Omicron variant, inflation and supply chain bottlenecks. Credit continues to be healthy with exceptionally low net charge-offs, and we remain optimistic on U.S. economic growth as business sentiment is upbeat and consumers are benefiting from job and wage growth."

Dimon continued: "Global IB fees were up 37%, driven by both the Corporate &

Investment Bank and Commercial Banking, due to unprecedented M&A activity, an active acquisition financing market and strong performance in IPOs. Markets revenue was down 11%, compared to a record fourth quarter last year, but up 7% versus the 2019 quarter driven by a strong performance in Equities. Asset & Wealth Management delivered robust results as we saw positive inflows into long-term products of $34 billion across all channels and regions, as well as continued strong loan growth, up 18%, primarily driven by securities-based lending. In Consumer & Community Banking, client investment assets were up 22%, with growth from higher market levels and positive net flows. Combined debit and credit card spend was up 26%, supporting accelerating Card loan growth, up 5%. Auto loans remain elevated, up 7%, although a lack of vehicle supply slowed originations to $8.5 billion, down 23%. Home lending had another strong quarter with originations at $42 billion, up 30%."

Dimon concluded: "In 2021, we extended credit and raised over $3 trillion in capital for our consumer and institutional clients around the world, which includes nonprofits and U.S. government entities, including states, municipalities, hospitals and universities. We also accelerated investments to expand our product distribution capabilities, both domestically and internationally, enhance our products and services and modernize our technology. We continue to find attractive opportunities to invest in our businesses across the firm. Our longstanding capital hierarchy remains the same - first and foremost, to invest in and grow our market-leading businesses to support our clients, customers and communities; second, to pay a sustainable competitive dividend; and then, return any remaining excess capital to shareholders."

SIGNIFICANT ITEMS

• 4Q21 results included:

• $1.8 billion net credit reserve release Firmwide ($0.47 increase in earnings per share (EPS))

• Excluding net credit reserve release1: 4Q21 net income of $9.0 billion, EPS of $2.86 and ROTCE of 17%

CAPITAL DISTRIBUTED

• Common dividend of $3.0 billion, or $1.00 per share
• $1.9 billion of common stock net repurchases in 4Q214

FORTRESS PRINCIPLES

• Book value per share of $88.07, up 8%; tangible book value per share1 of $71.53, up 8%
• Basel III common equity Tier 1 capital2 of $214 billion and Standardized ratio2 of 13.0%; Advanced ratio2 of 13.8%
• Firm supplementary leverage ratio of 5.4%

OPERATING LEVERAGE

• 4Q21 expense of $17.9 billion; reported overhead ratio of 61%; managed overhead ratio1 of 59%

SUPPORTED CONSUMERS, BUSINESSES & COMMUNITIES

• $3.2 trillion of credit and capital9 raised in 2021 n $331 billion of credit for consumers

n $22 billion of credit for U.S. small businesses n $1.3 trillion of credit for corporations

n $1.5 trillion of capital raised for corporate clients and non-U.S. government entities

n $63 billion of credit and capital raised for nonprofit and U.S. government entities, including states, municipalities, hospitals and universities

• $11 billion of loans under the Small Business Administration's Paycheck Protection Program (PPP) in 2021

Investor Contact: Mikael Grubb [phone]

Media Contact: Joseph Evangelisti [phone]

Note: Totals may not sum due to rounding

1For notes on non-GAAP financial measures, including managed basis reporting, see page 6. For additional notes see page 7.

JPMorgan Chase & Co.

News Release

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

Comparisons noted in the sections below are for the fourth quarter of 2021 versus the prior-year fourth quarter, unless otherwise specified.

JPMORGAN CHASE (JPM)

Results for JPM										3Q21		4Q20
($ millions, except per share data)		4Q21			3Q21			4Q20	$	O/(U)	O/(U) %	$	O/(U)	O/(U) %
Net revenue - reported10	$	29,257	$	29,647	$	29,335	$	(390)	(1)%	$	(78)	- %
Net revenue - managed		30,349			30,441			30,161		(92)	-		188	1
Noninterest expense		17,888			17,063			16,048		825	5		1,840	11
Provision for credit losses		(1,288)			(1,527)			(1,889)		239	16		601	32
Net income	$	10,399		$	11,687		$	12,136	$	(1,288)	(11)%	$	(1,737)	(14)%
Earnings per share - diluted	$	3.33	$	3.74	$	3.79	$	(0.41)	(11)%	$	(0.46)	(12)%
Return on common equity		16 %			18 %			19 %
Return on tangible common equity		19			22			24

Discussion of Results:

Net income was $10.4 billion, down 14%, driven by higher noninterest expense.

Net revenue of $30.3 billion, up 1%. Net interest income was $13.7 billion, up 3%, driven by balance sheet growth, partially offset by lower net interest income in CIB Markets. Noninterest revenue was $16.6 billion, down 1%, largely driven by lower revenue in CIB Markets and Home Lending, predominantly offset by higher Investment Banking fees.

Noninterest expense was $17.9 billion, up 11%, largely on higher compensation.

The provision for credit losses was a net benefit of $1.3 billion, reflecting a net reserve release of $1.8 billion driven by a more balanced outlook due to the continued resilience in the macroeconomic environment and $550 million of net charge-offs. The prior year provision was a net benefit of $1.9 billion, reflecting a net reserve release of $2.9 billion and $1.1 billion of net charge-offs. The net reserve release in the current year was comprised of $1.5 billion in Consumer, including $1.4 billion in Card, and $270 million in Wholesale. Net charge-offs of $550 million were down $500 million, largely driven by Card.

2

JPMorgan Chase & Co.

News Release

CONSUMER & COMMUNITY BANKING (CCB)

Results for CCB									3Q21		4Q20
($ millions)		4Q21		3Q21		4Q20		$	O/(U)	O/(U) %	$	O/(U)	O/(U) %
Net revenue	$	12,275	$	12,521	$	12,728	$	(246)	(2)%	$	(453)	(4)%
Consumer & Business Banking		6,172		6,157		5,744			15	-		428	7
Home Lending		1,084		1,400		1,456			(316)	(23)		(372)	(26)
Card & Auto		5,019		4,964		5,528			55	1		(509)	(9)
Noninterest expense		7,754		7,238		7,042			516	7		712	10
Provision for credit losses		(1,060)		(459)		(83)			(601)	(131)		(977)	NM
Net income	$	4,227	$	4,341	$	4,325		$	(114)	(3)%	$	(98)	(2)%

Discussion of Results:

Net income was $4.2 billion, down 2%. Net revenue was $12.3 billion, down 4%.

Consumer & Business Banking net revenue was $6.2 billion, up 7%, driven by higher asset management fees on growth in client investment assets, the impact of PPP including the accelerated recognition of deferred processing fees due to loan forgiveness, and increased debit transactions. Home Lending net revenue was $1.1 billion, down 26%, predominantly driven by lower production margins, partially offset by higher net interest income on lower prepayments. Card & Auto net revenue was $5.0 billion, down 9%, driven by higher acquisition costs in Card and lower operating lease income in Auto.

Noninterest expense was $7.8 billion, up 10%, driven by increased compensation, technology and marketing expense as we continue to invest in and grow the business.

The provision for credit losses was a net benefit of $1.1 billion, reflecting a $1.6 billion reserve release, primarily in Card driven by continued resilience in the macroeconomic environment, compared to a $900 million reserve release in the prior year. Net charge-offs were $515 million, down $302 million, driven by Card.

3

JPMorgan Chase & Co.

News Release

CORPORATE & INVESTMENT BANK (CIB)

Results for CIB									3Q21		4Q20
($ millions)		4Q21		3Q21		4Q20		$	O/(U)	O/(U) %	$	O/(U)	O/(U) %
Net revenue	$	11,534	$	12,396	$	11,352	$	(862)	(7)%	$	182	2 %
Banking		5,270		4,893		4,117			377	8		1,153	28
Markets & Securities Services		6,264		7,503		7,235			(1,239)	(17)		(971)	(13)
Noninterest expense		5,827		5,871		4,939			(44)	(1)		888	18
Provision for credit losses		(126)		(638)		(581)			512	80		455	78
Net income	$	4,847	$	5,562	$	5,349		$	(715)	(13)%	$	(502)	(9)%

Discussion of Results:

Net income was $4.8 billion, down 9%, with net revenue of $11.5 billion, up 2%.

Banking revenue was $5.3 billion, up 28%. Investment Banking revenue was $3.2 billion, up 28%, driven by higher Investment Banking fees, up 37%, predominantly driven by higher advisory fees. Payments11 revenue was $1.8 billion, up 26%, and included net gains on equity investments. Excluding these net gains, revenue was up 7%, predominantly driven by higher fees and deposits, largely offset by deposit margin compression. Lending revenue was $263 million, up 36%, predominantly driven by lower mark-to-market losses on hedges of accrual loans compared to the prior year.

Markets & Securities Services revenue was $6.3 billion, down 13%. Markets revenue was $5.3 billion, down 11%. Fixed Income Markets revenue was $3.3 billion, down 16%, driven by a challenging trading environment in Rates, as well as lower revenues in Credit and Currencies & Emerging Markets compared to a strong prior year. Equity Markets revenue was $2.0 billion, down 2%, driven by lower revenue in derivatives, largely offset by higher revenue in Prime. Securities Services revenue was $1.1 billion, relatively flat to the prior year.

Noninterest expense was $5.8 billion, up 18%, predominantly driven by higher compensation expense, including investments, as well as higher volume-related brokerage expense and higher legal expense.

The provision for credit losses was a net benefit of $126 million, driven by a net reserve release.

COMMERCIAL BANKING (CB)

Results for CB									3Q21		4Q20
($ millions)		4Q21		3Q21		4Q20		$	O/(U)	O/(U) %	$	O/(U)	O/(U) %
Net revenue	$	2,612	$	2,520	$	2,463	$	92	4 %	$	149	6 %
Noninterest expense		1,059		1,032		950			27	3		109	11
Provision for credit losses		(89)		(363)		(1,181)			274	75		1,092	92
Net income	$	1,251	$	1,407	$	2,034		$	(156)	(11)%	$	(783)	(38)%

Discussion of Results:

Net income was $1.3 billion, down 38%, driven by lower credit reserve releases compared to the prior year.

Net revenue was $2.6 billion, up 6%, driven by higher investment banking revenue.

Noninterest expense was $1.1 billion, up 11%, largely driven by investments in the business, including technology and front office hires, and higher volume- and revenue-related expense.

The provision for credit losses was a net benefit of $89 million, driven by a net reserve release. Net charge-offs were $8 million.

4

JPMorgan Chase & Co.

News Release

ASSET & WEALTH MANAGEMENT (AWM)

Results for AWM									3Q21		4Q20
($ millions)		4Q21		3Q21		4Q20		$	O/(U)	O/(U) %	$	O/(U)	O/(U) %
Net revenue	$	4,473	$	4,300	$	3,867	$	173	4 %	$	606	16 %
Noninterest expense		2,997		2,762		2,756			235	9		241	9
Provision for credit losses		(36)		(60)		(2)			24	40		(34)	NM
Net income	$	1,146	$	1,194	$	786		$	(48)	(4)%	$	360	46 %

Discussion of Results:

Net income was $1.1 billion, up 46%.

Net revenue was $4.5 billion, up 16%, predominantly driven by higher management fees and growth in deposits and loans, partially offset by deposit margin compression.

Noninterest expense was $3.0 billion, up 9%, driven by higher performance-related compensation and distribution fees, higher structural expense, as well as higher investments in the business, partially offset by lower legal expense compared to the prior year.

Assets under management were $3.1 trillion, up 15%, driven by cumulative net inflows, as well as higher market levels.

CORPORATE

Results for Corporate									3Q21		4Q20
($ millions)		4Q21		3Q21		4Q20		$	O/(U)	O/(U) %	$	O/(U)	O/(U) %
Net revenue	$	(545)	$	(1,296)	$	(249)	$	751	58 %	$	(296)	(119)%
Noninterest expense		251		160		361			91	57		(110)	(30)
Provision for credit losses		23		(7)		(42)			30	NM		65	NM
Net income/(loss)	$	(1,072)	$	(817)	$	(358)		$	(255)	(31)%	$	(714)	(199)%

Discussion of Results:

Net loss was $1.1 billion, compared with a net loss of $358 million in the prior year. The current quarter included higher tax expense that reflects the impact of the Firm's estimated full-year expected tax rate, and the reversal of state and local impacts of federal tax method changes.

Net revenue was a loss of $545 million compared with a loss of $249 million in the prior year. Net interest income was a loss of $681 million, up $160 million, primarily due to higher rates, mostly offset by continued deposit growth. Noninterest revenue was $136 million, down $456 million primarily due to lower net gains on legacy equity investments.

Noninterest expense was $251 million, down $110 million.

5