1320745015325

JPMORGAN CHASE BANK,
NATIONAL ASSOCIATION
(a wholly-owned subsidiary of JPMorgan Chase & Co.)
CONSOLIDATED FINANCIAL STATEMENTS

For the three years ended December 31, 2017
FOR THE THREE YEARS ENDED DECEMBER 31, 2017
Page
Independent Auditor’s Report ....................................................................................................................................... 1
Consolidated Financial Statements:

Consolidated Statements of Income................................................................................................................................ 2
Consolidated Statements of Comprehensive Income ...................................................................................................... 3
Consolidated Balance Sheets........................................................................................................................................... 4
Consolidated Statements of Changes in Stockholder’s Equity ........................................................................................ 5
Consolidated Statements of Cash Flows.......................................................................................................................... 6
Notes to Consolidated Financial Statements................................................................................................................... 7-132
Supplementary Information (unaudited):

Glossary of Terms and Acronyms .................................................................................................................................... 133-137
Report of Independent Auditors
To the Board of Directors and Stockholder of JPMorgan Chase Bank, National Association
We have audited the accompanying consolidated financial statements of JPMorgan Chase Bank, National Association and its
subsidiaries, which comprise the consolidated balance sheets as of December 31, 2017 and 2016, and the related
consolidated statements of income, comprehensive income, changes in stockholder’s equity and cash flows for each of the
three years in the period ended December 31, 2017.
Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are
free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on the consolidated financial statements based on our audits. We conducted our
audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated
financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material
misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, we
consider internal control relevant to the Company’s preparation and fair presentation of the consolidated financial statements
in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the Company’s internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial
position of JPMorgan Chase Bank, National Association and its subsidiaries as of December 31, 2017 and 2016, and the results
of its operations and its cash flows for each of the three years in the period ended December 31, 2017 in accordance with
accounting principles generally accepted in the United States of America.
February 27, 2018
PricewaterhouseCoopers LLP 300 Madison Avenue New York, NY 10017
JPMorgan Chase Bank, National Association/2017 Consolidated Financial Statements 1

Consolidated statements of income
JPMorgan Chase Bank, National Association
Year ended December 31, (in millions) 2017 2016 2015

Revenue
Investment banking fees $ 3,419 $ 2,699 $ 1,931
Principal transactions 9,880 9,963 9,085
Lending- and deposit-related fees 5,940 5,780 5,693
Asset management, administration and commissions 11,730 11,133 11,263
Securities gains/(losses) (73) 130 202
Mortgage fees and related income 1,616 2,487 2,513
Card income 4,510 4,246 4,333
Other income 4,771 4,806 4,671
Noninterest revenue 41,793 41,244 39,691
Interest income 48,099 41,584 37,425
Interest expense 7,067 4,642 3,736
Net interest income 41,032 36,942 33,689
Total net revenue 82,825 78,186 73,380
Provision for credit losses 1,845 2,486 1,376
Noninterest expense
Compensation expense 24,291 23,240 23,128
Occupancy expense 3,450 3,301 3,438
Technology, communications and equipment expense 7,256 6,390 5,747
Professional and outside services 5,066 4,989 5,268
Marketing 949 881 796
Other expense 10,304 9,659 10,719
Total noninterest expense 51,316 48,460 49,096
Income before income tax expense 29,664 27,240 22,908
Income tax expense 10,734 7,868 5,980
Net income $ 18,930 $ 19,372 $ 16,928
The Notes to Consolidated Financial Statements are an integral part of these statements.
2 JPMorgan Chase Bank, National Association/2017 Consolidated Financial Statements

Consolidated statements of comprehensive income

Net income $ 18,930 $ 19,372 $ 16,928
Other comprehensive income/(loss), after–tax
Unrealized gains/(losses) on investment securities 687 (1,037) (2,104)
Translation adjustments, net of hedges (309) 4 (17)
Cash flow hedges 176 (55) 46
Defined benefit pension and OPEB plans 11 (27) 139
DVA on fair value option elected liabilities (55) (51) —
Total other comprehensive income/(loss), after–tax 510 (1,166) (1,936)
Comprehensive income $ 19,440 $ 18,206 $ 14,992

Consolidated balance sheets
December 31, (in millions, except share data) 2017 2016

Assets
Cash and due from banks $ 21,890 $ 21,202
Deposits with banks 439,989 388,655
Federal funds sold and securities purchased under resale agreements (included $2,894 and $5,349 at fair value) 155,214 172,607
Securities borrowed (included $3,049 and $0 at fair value) 39,009 32,497
Trading assets (included assets pledged of $49,939 and $51,303) 249,223 245,329
Securities (included $199,364 and $234,870 at fair value and assets pledged of $23,170 and $19,116) 247,097 285,038
Loans (included $2,508 and $2,228 at fair value) 826,213 792,119
Allowance for loan losses (10,081) (10,715)
Loans, net of allowance for loan losses 816,132 781,404
Accrued interest and accounts receivable 48,063 40,805
Premises and equipment 13,481 13,491
Goodwill, MSRs and other intangible assets 33,570 33,396
Other assets (included $7,454 and $41 at fair value and assets pledged of $1,465 and $1,429) 77,110 68,379
Total assets(a) $ 2,140,778 $ 2,082,803
Liabilities
Deposits (included $21,380 and $13,965 at fair value) $ 1,534,907 $ 1,480,238
Federal funds purchased and securities loaned or sold under repurchase agreements (included $3,405 and $399 at
fair value) 94,692 74,778
Short-term borrowings (included $5,577 and $5,571 at fair value) 8,993 12,179
Trading liabilities 96,737 111,700
Accounts payable and other liabilities (included $7,454 and $7,494 at fair value) 91,200 84,239
Beneficial interests issued by consolidated variable interest entities 4,853 7,451
Long-term debt (included $21,401 and $14,936 at fair value) 97,711 107,131
Total liabilities(a) 1,929,093 1,877,716
Commitments and contingencies (see Notes 25, 26 and 27)
Stockholder’s equity
Preferred stock ($1 par value; authorized 15,000,000 shares: issued 0 shares) — —
Common stock ($12 par value; authorized 200,000,000 shares; issued 148,761,243 shares) 1,785 1,785
Additional paid-in capital 94,283 94,125
Retained earnings 114,242 108,312
Accumulated other comprehensive income 1,375 865
Total stockholder’s equity 211,685 205,087
Total liabilities and stockholder’s equity $ 2,140,778 $ 2,082,803
(a) The following table presents information on assets and liabilities related to variable interest entities (“VIEs”) that are consolidated by JPMorgan Chase Bank, N.A. at December 31,
2017 and 2016. The difference between total VIE assets and liabilities represents JPMorgan Chase Bank, N.A.’s interests in those entities, which were eliminated in consolidation.
December 31, (in millions) 2017 2016

Assets
Trading assets $ 1,380 $ 2,655
Loans 27,072 29,695
All other assets 1,698 2,150
Total assets $ 30,150 $ 34,500
Liabilities
Beneficial interests issued by consolidated variable interest entities $ 4,853 $ 7,451
All other liabilities 254 377
Total liabilities $ 5,107 $ 7,828
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 JPMorgan
Chase Bank, N.A. At December 31, 2017 and 2016, JPMorgan Chase Bank, N.A. provided limited program-wide credit enhancement of $2.7 billion and $2.4 billion, respectively,
related to its JPMorgan Chase Bank, N.A.-administered multi-seller conduits, which are eliminated in consolidation. For further discussion, see Note 15.

Consolidated statements of changes in stockholder’s equity

Common stock
Balance at January 1 and December 31 $ 1,785 $ 1,785 $ 1,785
Additional paid-in capital
Balance at January 1 94,125 92,782 90,801
Cash capital contribution from JPMorgan Chase & Co. — 327 4
Adjustments to capital due to transactions with JPMorgan Chase & Co. 158 1,016 1,977
Balance at December 31 94,283 94,125 92,782
Retained earnings
Balance at January 1 108,312 98,951 89,082
Cumulative effect of change in accounting principle — (11) —
Net income 18,930 19,372 16,928
Cash dividends paid to JPMorgan Chase & Co. (13,000) (10,000) (8,000)
Net internal legal entity mergers — — 941
Balance at December 31 114,242 108,312 98,951
Accumulated other comprehensive income
Balance at January 1 865 2,020 3,956
Cumulative effect of change in accounting principle — 11 —
Other comprehensive income/(loss) 510 (1,166) (1,936)
Balance at December 31 1,375 865 2,020
Total stockholder’s equity $ 211,685 $ 205,087 $ 195,538

Consolidated statements of cash flows

Operating activities
Net income $ 18,930 $ 19,372 $ 16,928
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
Depreciation and amortization 5,863 5,144 4,559
Deferred tax expense (105) 1,964 1,050
Other 73 (130) (202)
Originations and purchases of loans held-for-sale (94,628) (61,107) (49,197)
Proceeds from sales, securitizations and paydowns of loans held-for-sale 93,264 60,196 50,451
Net change in:
Trading assets 9,927 2,955 38,192
Securities borrowed (6,462) (6,977) 7,106
Accrued interest and accounts receivable (7,741) (4,535) 1,623
Other assets (1,414) 4,936 (486)
Trading liabilities (28,084) 6,156 (22,417)
Accounts payable and other liabilities 1,118 (14) (1,938)
Other operating adjustments 4,341 7,099 1,024
Net cash provided by/(used in) operating activities (3,073) 37,545 48,069
Investing activities
Net change in:
Deposits with banks (51,334) (72,305) 164,927
Federal funds sold and securities purchased under resale agreements 17,415 (24,180) (6,666)
Held-to-maturity securities:
Proceeds from paydowns and maturities 4,563 6,218 6,099
Purchases (2,349) (143) (6,204)
Available-for-sale securities:
Proceeds from paydowns and maturities 55,583 65,478 76,303
Proceeds from sales 89,418 45,853 37,362
Purchases (105,134) (122,253) (68,027)
Proceeds from sales and securitizations of loans held-for-investment 15,791 15,429 17,975
Other changes in loans, net (56,535) (77,085) (104,819)
All other investing activities, net (101) (286) 2,544
Net cash provided by/(used in) investing activities (32,683) (163,274) 119,494
Financing activities
Net change in:
Deposits 42,875 169,139 (131,456)
Federal funds purchased and securities loaned or sold under repurchase agreements 19,877 (2,472) (17,057)
Short-term borrowings (4,412) (17,971) (8,103)
Beneficial interests issued by consolidated variable interest entities (988) (926) (5,587)
Proceeds from long-term borrowings 20,511 37,406 16,728
Payments of long-term borrowings (30,200) (47,987) (22,719)
Cash capital contribution from JPMorgan Chase & Co. — 327 4
Dividends paid to JPMorgan Chase & Co. (13,000) (10,000) (8,000)
All other financing activities, net 1,698 200 1,620
Net cash provided by/(used in) financing activities 36,361 127,716 (174,570)
Effect of exchange rate changes on cash and due from banks 83 (144) (271)
Net increase/(decrease) in cash and due from banks 688 1,843 (7,278)
Cash and due from banks at the beginning of the period 21,202 19,359 26,637
Cash and due from banks at the end of the period $ 21,890 $ 21,202 $ 19,359
Cash interest paid $ 6,978 $ 4,552 $ 3,366
Cash income taxes paid, net(a) 3,736 3,613 8,272
(a) Includes $1.5 billion, $2.6 billion, and $7.5 billion paid to JPMorgan Chase & Co. in 2017, 2016 and 2015, respectively.

Notes to consolidated financial statements
Note 1 – Overview and basis of presentation

JPMorgan Chase Bank, National Association (“JPMorgan JPMorgan Chase is subject to comprehensive consolidated
Chase Bank, N.A.”), is a wholly-owned bank subsidiary of supervision, regulation and examination by the Federal
JPMorgan Chase & Co. (“JPMorgan Chase”), which is a Reserve. The Federal Reserve acts as an “umbrella
leading global financial services firm and one of the largest regulator” and certain of JPMorgan Chase’s subsidiaries are
banking institutions in the United States of America regulated directly by additional regulatory authorities
(“U.S.”), with operations worldwide. JPMorgan Chase Bank, based on the particular activities of those subsidiaries. For
N.A. is a national banking association that is chartered by example, JPMorgan Chase’s national bank subsidiaries,
the office of the Comptroller of the Currency (“OCC”), a JPMorgan Chase Bank, N.A. and Chase Bank USA, N.A., are
bureau of the United States Department of the Treasury. subject to supervision and regulation by the OCC and, with
JPMorgan Chase Bank, N.A.’s main office is located in respect to certain matters, by the Federal Reserve and the
Columbus, Ohio, and it has retail branches in 23 states. Federal Deposit Insurance Corporation (the “FDIC”). Certain
JPMorgan Chase Bank, N.A. operates nationally as well as non-bank subsidiaries, such as JPMorgan Chase’s U.S.
through non-U.S. bank branches and subsidiaries, and broker-dealers, are subject to supervision and regulation by
representative offices. JPMorgan Chase Bank, N.A. either the Securities and Exchange Commission (the “SEC”) and,
directly or through such offices, branches and subsidiaries subsidiaries that engage in certain futures-related and
offers a wide range of banking services to its U.S. and non- swaps-related activities are subject to supervision and
U.S. customers including investment banking, financial regulation by the Commodity Futures Trading Commission
services for consumers and small businesses, commercial (“CFTC”). J.P. Morgan Securities plc, is a U.K. bank licensed
banking, financial transactions processing and asset within the European Economic Area (the “EEA”) to
management. Under the J.P. Morgan and Chase brands, undertake all banking activity and is regulated by the U.K.
JPMorgan Chase Bank, N.A. serves millions of customers in Prudential Regulation Authority (the “PRA”), a subsidiary of
the U.S. and many of the world’s most prominent corporate, the Bank of England which has responsibility for prudential
institutional and government clients. regulation of banks and other systemically important
The JPMorgan Chase Bank, N.A. Board of Directors is institutions, and by the U.K. Financial Conduct Authority
responsible for the oversight of the management of (“FCA”), which regulates conduct matters for all market
JPMorgan Chase Bank, N.A. The JPMorgan Chase Bank, N.A. participants. JPMorgan Chase’s other non-U.S. subsidiaries
Board accomplishes this function acting directly and are regulated by the banking and securities regulatory
through the principal standing committees of JPMorgan authorities in the countries in which they operate. See
Chase’s Board of Directors. Risk and control oversight on Securities and broker-dealer regulation, Investment
behalf of JPMorgan Chase Bank N.A. is primarily the management regulation and Derivatives regulation below.
responsibility of the Directors’ Risk Policy Committee In addition, JPMorgan Chase’s consumer activities are
(“DRPC”) and Audit Committee of JPMorgan Chase’s Board subject to supervision and regulation by the Consumer
of Directors, respectively, and, with respect to Financial Protection Bureau (“CFPB”) and to regulation
compensation and other management-related matters, the under various state statutes which are enforced by the
Compensation & Management Development Committee of respective state’s Attorney General.
JPMorgan Chase’s Board of Directors. Scope of permissible business activities. The Bank Holding
The accounting and financial reporting policies of JPMorgan Company Act generally restricts BHCs from engaging in
Chase Bank, N.A. and its subsidiaries conform to accounting business activities other than the business of banking and
principles generally accepted in the U.S. (“U.S. GAAP”). certain closely-related activities. Financial holding
Additionally, where applicable, the policies conform to the companies generally can engage in a broader range of
accounting and reporting guidelines prescribed by financial activities than are otherwise permissible for BHCs,
regulatory authorities. including underwriting, dealing and making markets in
securities, and making merchant banking investments in
Certain amounts reported in prior periods have been non-financial companies. The Federal Reserve has the
reclassified to conform with the current presentation. authority to limit a financial holding company’s ability to
Supervision and regulation conduct otherwise permissible activities if the financial
JPMorgan Chase and its subsidiaries (including JPMorgan holding company or any of its depository institution
Chase Bank, N.A.) are subject to extensive and subsidiaries ceases to meet the applicable eligibility
comprehensive regulation under state and federal laws in requirements (including requirements that the financial
the U.S., as well as the applicable laws of each of the holding company and each of its U.S. depository institution
various jurisdictions outside the U.S. in which JPMorgan subsidiaries maintain their status as “well-capitalized” and
Chase does business. “well-managed”). The Federal Reserve may also impose
Financial holding company: corrective capital and/or managerial requirements on the
Consolidated supervision by the Board of Governors of the financial holding company and may, for example, require
Federal Reserve System (the “Federal Reserve”). As a bank divestiture of the holding company’s depository institutions
holding company (“BHC”) and a financial holding company, if the deficiencies persist. Federal regulations also provide

that if any depository institution controlled by a financial requirements between Standardized and Advanced
holding company fails to maintain a satisfactory rating approaches. The Basel III Reforms include revisions to both
under the Community Reinvestment Act, the Federal the standardized and internal ratings-based approach for
Reserve must prohibit the financial holding company and its credit risk, streamlining of the available approaches under
subsidiaries from engaging in any activities other than those the credit valuation adjustment (“CVA”) framework, a
permissible for bank holding companies. In addition, a revised approach for operational risk, revisions to the
financial holding company must obtain Federal Reserve measurement and calibration of the leverage ratio, and a
approval before engaging in certain banking and other capital floor based on 72.5% of the revised Standardized
financial activities both in the U.S. and internationally, as approaches. The Basel Committee expects national
further described under Regulation of acquisitions below. regulatory authorities to implement the Basel III Reforms in
Activities restrictions under the Volcker Rule. Section 619 the laws of their respective jurisdictions and to require
(the “Volcker Rule”) of the Wall Street Reform and banking organizations subject to such laws to meet most of
Consumer Protection Act (the “Dodd-Frank Act”) prohibits the revised requirements by January 1, 2022, with certain
banking entities, including JPMorgan Chase, from engaging elements being phased in through January 1, 2027. U.S.
in certain “proprietary trading” activities, subject to banking regulators will now propose requirements
exceptions for underwriting, market-making, risk-mitigating applicable to U.S. financial institutions.
hedging and certain other activities. In addition, the Volcker Stress tests. The Federal Reserve has adopted supervisory
Rule limits the sponsorship of, and investment in, “covered stress tests for large bank holding companies, including
funds” (as defined by the Volcker Rule) and imposes limits JPMorgan Chase, which form part of the Federal Reserve’s
on certain transactions between JPMorgan Chase and its annual Comprehensive Capital Analysis and Review
sponsored funds (see JPMorgan Chase’s subsidiary banks — (“CCAR”) framework. Under the framework, JPMorgan
Restrictions on transactions with affiliates below). The Chase must conduct semi-annual company-run stress tests
period during which banking entities were required to bring and, in addition, must submit an annual capital plan to the
covered funds into conformance with the Volcker Rule Federal Reserve, taking into account the results of separate
ended on July 21, 2017. The Volcker Rule requires banking stress tests designed by JPMorgan Chase and the Federal
entities to establish comprehensive compliance programs Reserve. In reviewing JPMorgan Chase’s capital plan, the
reasonably designed to help ensure and monitor Federal Reserve considers both quantitative and qualitative
compliance with the restrictions under the Volcker Rule, factors. Qualitative assessments include, among other
including, in order to distinguish permissible from things, the comprehensiveness of the plan, the assumptions
impermissible risk-taking activities, the measurement, and analysis underlying the plan, and the extent to which
monitoring and reporting of certain key metrics. JPMorgan Chase has satisfied certain supervisory matters
Capital and liquidity requirements. The Federal Reserve related to JPMorgan Chase’s processes and analyses,
establishes capital and leverage requirements for JPMorgan including the design and operational effectiveness of the
Chase and evaluates its compliance with such requirements. controls governing such processes. Moreover, JPMorgan
The OCC establishes similar capital and leverage Chase is required to receive a notice of non-objection from
requirements for JPMorgan Chase’s national banking the Federal Reserve before taking capital actions, such as
subsidiaries. Under Basel III, bank holding companies and paying dividends, implementing common equity repurchase
banks are required to measure their liquidity against two programs or redeeming or repurchasing capital
specific liquidity tests: the liquidity coverage ratio (“LCR”) instruments. The OCC requires JPMorgan Chase Bank, N.A.
and the net stable funding ratio (“NSFR”). In the U.S., the to perform separate, similar annual stress tests. JPMorgan
final LCR rule (“U.S. LCR”) became effective on January 1, Chase publishes each year the results of its mid-cycle stress
2015. In April 2016, the U.S. banking regulators issued a tests under JPMorgan Chase’s internally-developed
proposed rule for NSFR, but no final rule has been issued. “severely adverse” scenario and the results of its (and its
On December 19, 2016, the Federal Reserve published final two primary subsidiary banks’) annual stress tests under
U.S. LCR public disclosure requirements. Beginning in the the supervisory “severely adverse” scenarios provided by
second quarter of 2017, JPMorgan Chase began disclosing the Federal Reserve and the OCC. JPMorgan Chase is
its consolidated LCR pursuant to the U.S. LCR rule. On required to file its 2018 annual CCAR submission on April 5,
September 8, 2016, the Federal Reserve published the 2018. Results will be published by the Federal Reserve by
framework that will apply to the setting of the June 30, 2018, with disclosures of results by BHCs,
countercyclical capital buffer. The Federal Reserve reviews including JPMorgan Chase, to follow within 15 days. The
the amount of this buffer at least annually, and on mid-cycle capital stress test submissions are due on October
December 1, 2017, the Federal Reserve reaffirmed setting 5, 2018 and BHCs, including JPMorgan Chase, will publish
this buffer at 0%. Banking supervisors globally continue to results by November 4, 2018. In December 2017, the
consider refinements and enhancements to the Basel III Federal Reserve released a set of proposals intended to
capital framework for financial institutions. On December 7, provide more detailed disclosure and transparency
2017, the Basel Committee issued Basel III: Finalizing post- concerning the Federal Reserve’s approach, design and
crisis reforms (“Basel III Reforms”), which seeks to reduce governance of the supervisory stress testing process. The
excessive variability in RWA and converge capital proposals were open for public comment through January
22, 2018.

Enhanced prudential standards. The Financial Stability JPMorgan Chase’s non-U.S. subsidiaries are subject to
Oversight Council (“FSOC”), among other things, resolution and recovery planning requirements in the
recommends prudential standards and reporting and jurisdictions in which they operate.
disclosure requirements to the Federal Reserve for Regulators in the U.S. and abroad have proposed and
systemically important financial institutions (“SIFIs”), such implemented measures designed to address the possibility
as JPMorgan Chase. The Federal Reserve has adopted or perception that large financial institutions, including
several rules to implement the heightened prudential JPMorgan Chase, may be “too big to fail,” and to provide
standards, including final rules relating to risk management safeguards so that, if a large financial institution does fail, it
and corporate governance of subject BHCs. BHCs with $50 can be resolved without the use of public funds. Higher
billion or more in total consolidated assets are required to capital surcharges on global systemically important banks
comply with enhanced liquidity and overall risk (“GSIBs”), requirements for certain large bank holding
management standards, and their boards of directors are companies to maintain a minimum amount of long-term
required to conduct appropriate oversight of their risk debt to facilitate orderly resolution of those firms (referred
management activities. to as Total Loss Absorbing Capacity (“TLAC”)), and the
Orderly liquidation authority and resolution and recovery. International Swaps and Derivatives Association (“ISDA”)
The FDIC requires each insured depository institution protocol relating to the “close-out” of derivatives
(“IDI”) with $50 billion or more in assets, such as JPMorgan transactions during the resolution of a large cross-border
Chase Bank, N.A. and Chase Bank USA, N.A., to provide an financial institution, are examples of initiatives to address
IDI resolution plan. “too big to fail.” For further information on the ISDA close-
In addition, as a BHC with assets of $50 billion or more, out protocol, see Derivatives regulation below.
JPMorgan Chase is required to submit periodically to the Holding company as source of strength for bank subsidiaries.
Federal Reserve and the FDIC a plan for resolution under JPMorgan Chase & Co. is required to serve as a source of
the Bankruptcy Code in the event of material distress or financial strength for its depository institution subsidiaries
failure (a “resolution plan”). On December 19, 2017, the and to commit resources to support those subsidiaries. This
Federal Reserve and the FDIC announced joint support may be required by the Federal Reserve at times
determinations on the 2017 resolution plans of eight when JPMorgan Chase might otherwise determine not to
systemically important domestic banking institutions, provide it.
including that of JPMorgan Chase, and extended the filing Regulation of acquisitions. Acquisitions by bank holding
deadline for the next resolution plan for each of these companies and their banks are subject to multiple
entities until July 1, 2019. The agencies determined that requirements by the Federal Reserve and the OCC. For
JPMorgan Chase’s 2017 resolution plan did not have any example, financial holding companies and bank holding
“deficiencies,” which are weaknesses severe enough to companies are required to obtain the approval of the
trigger a resubmission process that could result in more Federal Reserve before they may acquire more than 5% of
stringent requirements, or any “shortcomings,” which are the voting shares of an unaffiliated bank. In addition,
less-severe weaknesses that would need to be addressed in acquisitions by financial companies are prohibited if, as a
the next resolution plan. result of the acquisition, the total liabilities of the financial
Certain financial companies, including JPMorgan Chase and company would exceed 10% of the total liabilities of all
certain of its subsidiaries, can also be subjected to financial companies. In addition, for certain acquisitions,
resolution under an “orderly liquidation authority.” The U.S. JPMorgan Chase must provide written notice to the Federal
Treasury Secretary, in consultation with the President of the Reserve prior to acquiring direct or indirect ownership or
United States, must first make certain extraordinary control of any voting shares of any company with over $10
financial distress and systemic risk determinations, and billion in assets that is engaged in activities that are
action must be recommended by the FDIC and the Federal “financial in nature.”
Reserve. Absent such actions, JPMorgan Chase, as a BHC, JPMorgan Chase’s subsidiary banks:
would remain subject to resolution under the Bankruptcy JPMorgan Chase’s two principal subsidiary banks, JPMorgan
Code. In December 2013, the FDIC issued a draft policy Chase Bank, N.A. and Chase Bank USA, N.A., are FDIC-
statement describing its “single point of entry” strategy for insured national banks regulated by the OCC. As national
resolution of systemically important financial institutions banks, the activities of JPMorgan Chase Bank, N.A. and
under the orderly liquidation authority. This strategy seeks Chase Bank USA, N.A. are limited to those specifically
to keep operating subsidiaries of the BHC open and impose authorized under the National Bank Act and related
losses on shareholders and creditors of the holding interpretations by the OCC.
company in receivership according to their statutory order FDIC deposit insurance. The FDIC deposit insurance fund
of priority. provides insurance coverage for certain deposits and is
The OCC has published guidelines establishing standards for funded through assessments on banks, such as JPMorgan
recovery planning by insured national banks, and JPMorgan Chase Bank, N.A. and Chase Bank USA, N.A. Changes in the
Chase Bank, N.A. and Chase Bank USA, N.A. have submitted methodology used to calculate such assessments, resulting
their recovery plans to the OCC. In addition, certain of from the enactment of the Dodd-Frank Act, significantly

increased the assessments that JPMorgan Chase’s bank subsidiaries unless the loans are secured in specified
subsidiaries pay annually to the FDIC. The FDIC instituted a amounts and comply with certain other requirements. For
new assessment surcharge on insured depository more information, see Note 24. In addition, the Volcker Rule
institutions with total consolidated assets greater than $10 imposes a prohibition on such transactions between any
billion in order to raise the reserve ratio for the FDIC JPMorgan Chase entity and covered funds for which a
deposit insurance fund. JPMorgan Chase entity serves as the investment manager,
FDIC powers upon a bank insolvency. Upon the insolvency of investment advisor, commodity trading advisor or sponsor,
an insured depository institution, such as JPMorgan Chase as well as, subject to a limited exception, any covered fund
Bank, N.A., the FDIC could be appointed as the conservator controlled by such funds.
or receiver under the Federal Deposit Insurance Act Dividend restrictions. Federal law imposes limitations on the
(“FDIA”). The FDIC has broad powers to transfer any assets payment of dividends by national banks, such as JPMorgan
and liabilities without the approval of the institution’s Chase Bank, N.A. See Note 23 for the amount of dividends
creditors. that JPMorgan Chase Bank, N.A. could pay, at January 1,
Cross-guarantee. An FDIC-insured depository institution can 2018, to JPMorgan Chase without the approval of its
be held liable for any loss incurred or expected to be banking regulators.
incurred by the FDIC if another FDIC-insured institution that In addition to the dividend restrictions described above, the
is under common control with such institution is in default OCC and the Federal Reserve have authority to prohibit or
or is deemed to be “in danger of default” (commonly limit the payment of dividends of the bank subsidiaries they
referred to as “cross-guarantee” liability). An FDIC cross- supervise, if, in the banking regulator’s opinion, payment of
guarantee claim against a depository institution is generally a dividend would constitute an unsafe or unsound practice
superior in right of payment to claims of the holding in light of the financial condition of the bank.
company and its affiliates against such depository Depositor preference. Under federal law, the claims of a
institution. receiver of an insured depository institution for
Prompt corrective action and early remediation. The Federal administrative expense and the claims of holders of U.S.
Deposit Insurance Corporation Improvement Act of 1991 deposit liabilities (including the FDIC and deposits in non-
requires the relevant federal banking regulator to take U.S. branches that are dually payable in the U.S. and in a
“prompt corrective action” with respect to a depository non-U.S. branch) have priority over the claims of other
institution if that institution does not meet certain capital unsecured creditors of the institution, including public
adequacy standards. While these regulations apply only to noteholders and depositors in non-U.S. branches. As a
banks, such as JPMorgan Chase Bank, N.A. and Chase Bank result, such persons could receive substantially less than
USA, N.A., the Federal Reserve is authorized to take the depositors in U.S. offices of the depository institution.
appropriate action against the parent BHC, such as CFPB regulation and supervision, and other consumer
JPMorgan Chase & Co., based on the undercapitalized status regulations. JPMorgan Chase and its national bank
of any bank subsidiary. In certain instances, the BHC would subsidiaries, including JPMorgan Chase Bank, N.A. and
be required to guarantee the performance of the capital Chase Bank USA, N.A., are subject to supervision and
restoration plan for its undercapitalized subsidiary. regulation by the CFPB with respect to federal consumer
OCC Heightened Standards. The OCC has established protection laws, including laws relating to fair lending and
guidelines setting forth heightened standards for large the prohibition of unfair, deceptive or abusive acts or
banks. The guidelines establish minimum standards for the practices in connection with the offer, sale or provision of
design and implementation of a risk governance framework consumer financial products and services. These laws
for banks. While the bank can use certain components of include the Truth-in-Lending, Equal Credit Opportunity Act
the parent company’s risk governance framework, the (“ECOA”), Fair Credit Reporting, Fair Debt Collection
framework must ensure that the bank’s risk profile is easily Practice, Electronic Funds Transfer, Credit Card
distinguished and separate from the parent for risk Accountability, Responsibility and Disclosure (“CARD”) and
management purposes. The bank’s board or risk committee Home Mortgage Disclosure Acts. The CFPB has authority to
is responsible for approving the bank’s risk governance impose new disclosure requirements for certain consumer
framework, providing active oversight of the bank’s risk- financial products and services. The CFPB’s rule-making
taking activities, and holding management accountable for efforts have addressed mortgage-related topics, including
adhering to the risk governance framework. ability to repay and qualified mortgage standards,
Restrictions on transactions with affiliates. The bank mortgage servicing standards, loan originator
subsidiaries of JPMorgan Chase (including subsidiaries of compensation standards, high-cost mortgage requirements,
those banks) are subject to certain restrictions imposed by Home Mortgage Disclosure Act requirements, appraisal and
federal law on extensions of credit to, investments in stock escrow standards and requirements for higher-priced
or securities of, and derivatives, securities lending and mortgages. The CFPB continues to issue informal guidance
certain other transactions with, JPMorgan Chase & Co. and on a variety of topics (such as the collection of consumer
certain other affiliates. These restrictions prevent JPMorgan debts and credit card marketing practices). Other areas of
Chase & Co. and other affiliates from borrowing from such focus include sales incentives, pre-authorized electronic
funds transfers, “add-on” products, matters involving

consumer populations considered vulnerable by the CFPB, DOL have been delayed until July 1, 2019. Furthermore, the
credit reporting, and the furnishing of credit scores to DOL is performing a review of the rule and the related
individuals. As part of its regulatory oversight, the CFPB has exemptions in accordance with a February 2017
authority to take enforcement actions against firms that memorandum from the President. Subject to the outcome
offer certain products and services to consumers, including of the DOL’s review, it is expected that the rule and related
JPMorgan Chase. prohibited transaction exemptions will have a significant
Securities and broker-dealer regulation: impact on the fee and compensation practices at financial
JPMorgan Chase conducts securities underwriting, dealing institutions that offer investment advice to retail retirement
and brokerage activities in the U.S. through J.P. Morgan clients. In addition to the impact of the DOL’s fiduciary rule,
Securities LLC and other non-bank broker-dealer JPMorgan Chase’s asset and wealth management businesses
subsidiaries, all of which are subject to regulations of the may be affected by ongoing rule-making and
SEC, the Financial Industry Regulatory Authority and the implementation of new regulations by the SEC and certain
New York Stock Exchange, among others. JPMorgan Chase U.S. states relating to enhanced standards of conduct for
conducts similar securities activities outside the U.S. subject broker-dealers and certain other market participants.
to local regulatory requirements. In the U.K., those In the European Union (“EU”), substantial revisions to the
activities are conducted by J.P. Morgan Securities plc, a Markets in Financial Instruments Directive (“MiFID II”)
subsidiary of JPMorgan Chase Bank, N.A., and are regulated became effective across EU member states beginning
by the PRA and the FCA. Broker-dealers are subject to laws January 3, 2018. These revisions introduced expanded
and regulations covering all aspects of the securities requirements for a broad range of investment management
business, including sales and trading practices, securities activities, including product governance, transparency on
offerings, publication of research reports, use of customers’ costs and charges, independent investment advice,
funds, the financing of clients’ purchases, capital structure, inducements, record keeping and client reporting. In
record-keeping and retention, and the conduct of their addition, final regulations on European Money Market Fund
directors, officers and employees. In addition, rules adopted Reform were published in July 2017 and, following an 18-
by the U.S. Department of Labor (“DOL”) have imposed
month transition period for existing funds, will implement
(among other things) a new standard of care applicable to
new requirements to enhance the liquidity and stability of
broker-dealers when dealing with customers. For more
money market funds in the EU.
information see Investment management regulation below.
Derivatives regulation:
Investment management regulation: JPMorgan Chase is subject to comprehensive regulation of
JPMorgan Chase’s asset and wealth management businesses its derivatives businesses. The regulations impose capital
are subject to significant regulation in numerous and margin requirements (including the collecting and
jurisdictions around the world relating to, among other posting of variation margin and initial margin in respect of
things, the safeguarding and management of client assets, non-centrally cleared derivatives), require central clearing
offerings of funds and marketing activities. Certain of of standardized over-the-counter (“OTC”) derivatives,
JPMorgan Chase’s subsidiaries are registered with, and require that certain standardized over-the-counter swaps be
subject to oversight by, the SEC as investment advisers. As traded on regulated trading venues, and provide for
such, JPMorgan Chase’s registered investment advisers are reporting of certain mandated information. In addition, the
subject to the fiduciary and other obligations imposed Dodd-Frank Act requires the registration of “swap dealers”
under the Investment Advisers Act of 1940 and the rules and “major swap participants” with the CFTC and of
and regulations promulgated thereunder, as well as various “security-based swap dealers” and “major security-based
state securities laws. For information regarding swap participants” with the SEC. JPMorgan Chase Bank,
investigations and litigation in connection with disclosures N.A., J.P. Morgan Securities LLC, J.P. Morgan Securities plc
to clients related to proprietary products, see Note 27. and J.P. Morgan Ventures Energy Corporation have
JPMorgan Chase’s asset and wealth management businesses registered with the CFTC as swap dealers, and JPMorgan
continue to be affected by ongoing rule-making and Chase Bank, N.A., J.P. Morgan Securities LLC and J.P. Morgan
implementation of new regulations. The DOL’s fiduciary Securities plc may be required to register with the SEC as
rule, which became effective June 9, 2017, has significantly security-based swap dealers. As a result of their registration
expanded the universe of persons viewed as investment as swap dealers or security-based swap dealers, these
advice fiduciaries to retirement plans and individual entities will be subject to a comprehensive regulatory
retirement accounts (“IRAs”) under the Employee framework applicable to their swap or security-based swap
Retirement Income Security Act of 1974, as amended activities, which includes capital requirements, rules
(“ERISA”). The prohibited transaction exemptions issued in regulating their swap activities, rules requiring the
connection with the rule require adherence to “impartial collateralization of uncleared swaps, rules regarding
conduct standards” (including a requirement to act in the segregation of counterparty collateral, business conduct
“best interest” of retirement clients), although compliance and documentation standards, record-keeping and
with requirements relating to conditions requiring new reporting obligations, and anti-fraud and anti-manipulation
client contracts, implementation of policies and procedures, requirements. Further, some of the rules for derivatives
websites and other disclosures to both investors and the apply extraterritorially to U.S. firms doing business with

clients outside of the U.S., as well as to the overseas laundering and the financing of terrorism. The BSA includes
activities of non-U.S. subsidiaries of JPMorgan Chase that a variety of record-keeping and reporting requirements
either deal with U.S. persons or that are guaranteed by U.S. (such as cash transaction and suspicious activity reporting),
subsidiaries of JPMorgan Chase; however, the full scope of as well as due diligence/know your customer
the extra-territorial impact of the U.S. swaps regulation has documentation requirements. In January 2013, JPMorgan
not been finalized and therefore remains unclear. The effect Chase entered into Consent Orders with its banking
of these rules may require banking entities, such as regulators relating to JPMorgan Chase’s Bank Secrecy Act/
JPMorgan Chase, to modify the structure of their derivatives Anti-Money Laundering policies, procedures and controls;
businesses and face increased operational and regulatory JPMorgan Chase has taken significant steps to modify and
costs. In the EU, the implementation of the European enhance its processes and controls with respect to its Anti-
Market Infrastructure Regulation (“EMIR”) and MiFID II will Money Laundering procedures and to remediate the issues
result in comparable, but not identical, changes to the identified in the Consent Order. JPMorgan Chase is also
European regulatory regime for derivatives. The combined subject to the regulations and economic sanctions programs
effect of the U.S. and EU requirements, and the potential administered by the U.S. Treasury’s Office of Foreign Assets
conflicts and inconsistencies between them, present Control (“OFAC”).
challenges and risks to the structure and operating model of Anti-Corruption:
JPMorgan Chase’s derivatives businesses. JPMorgan Chase is subject to laws and regulations relating
JPMorgan Chase and other financial institutions have to corrupt and illegal payments to government officials and
agreed to adhere to the 2015 Universal Resolution Stay others in the jurisdictions in which it operates, including the
Protocol (the “Protocol”) developed by ISDA in response to U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act.
regulator concerns that the close-out of derivatives and In November 2016, JPMorgan Chase entered into a Consent
other financial transactions during the resolution of a large Order with the Federal Reserve to resolve its investigation
cross-border financial institution could impede resolution relating to a former hiring program for candidates referred
efforts and potentially destabilize markets. The Protocol by clients, potential clients and government officials in the
provides for the contractual recognition of cross-border Asia Pacific region. JPMorgan Chase has taken significant
stays under various statutory resolution regimes and a steps to modify and enhance its processes and controls with
contractual stay on certain cross-default rights. respect to the hiring of referred candidates and to
In the U.S., one subsidiary of JPMorgan Chase, J.P. Morgan remediate the issues identified in the Consent Order.
Securities LLC, is registered as a futures commission Compensation practices:
merchant, and other subsidiaries are either registered with JPMorgan Chase’s compensation practices are subject to
the CFTC as commodity pool operators and commodity oversight by the Federal Reserve, as well as other agencies.
trading advisors or are exempt from such registration. The Federal Reserve has issued guidance jointly with the
These CFTC-registered subsidiaries are also members of the FDIC and the OCC that is designed to ensure that incentive
National Futures Association. compensation paid by banking organizations does not
Data regulation: encourage imprudent risk-taking that threatens the
JPMorgan Chase and its subsidiaries are subject to federal, organizations’ safety and soundness. In addition, under the
state and international laws and regulations concerning the Dodd-Frank Act, federal regulators, including the Federal
use and protection of certain customer, employee and other Reserve, must issue regulations or guidelines requiring
personal and confidential information, including those covered financial institutions, including JPMorgan Chase, to
imposed by the Gramm-Leach-Bliley Act and the Fair Credit report the structure of all incentive-based compensation
Reporting Act, as well as the EU Data Protection Directive. arrangements and prohibit incentive-based payment
In addition, various U.S. regulators, including the Federal arrangements that encourage inappropriate risks by
Reserve, the OCC and the SEC, have increased their focus on providing compensation that is excessive or that could lead
cybersecurity and data privacy through guidance, to material financial loss to the institution. The Federal
examinations and regulations. Reserve has conducted a review of the incentive
compensation policies and practices of a number of large
In May 2018, the General Data Protection Regulation banking institutions, including JPMorgan Chase. The
(“GDPR”) will replace the EU Data Protection Directive, and Financial Stability Board has established standards covering
it will have a significant impact on how businesses can compensation principles for banks. In addition, the SEC has
collect and process the personal data of EU individuals. In issued regulations that will require public companies to
addition, numerous proposals regarding privacy and data begin to disclose the pay ratio between the company’s
protection are pending before U.S. and non-U.S. legislative median employee and the company’s chief executive officer
and regulatory bodies. or other principal executive officer in the proxy statement
The Bank Secrecy Act and Economic Sanctions: for the 2018 annual meeting of shareholders. JPMorgan
The Bank Secrecy Act (“BSA”) requires all financial Chase’s compensation practices are also subject to
institutions, including banks and securities broker-dealers, regulation and oversight by local regulators in other
to, among other things, establish a risk-based system of jurisdictions. In Europe, the Fourth Capital Requirements
internal controls reasonably designed to prevent money Directive (“CRD IV”) includes compensation provisions and

the European Banking Authority has instituted guidelines on GSIB) to establish a single EU-located IPU. The full impact of
compensation policies which in certain countries, such as the proposal on JPM’s EU operations and legal entities will
the U.K., are implemented or supplemented by further local be heavily influenced by the outcome of the EU legislative
regulations or guidelines. The implementation of the process, including whether any flexibility is introduced to
Federal Reserve’s and other banking regulators’ guidelines the requirement.
regarding compensation are expected to evolve over the Consistent with the G20 and EU policy frameworks, U.K.
next several years, and may affect the manner in which regulators have adopted a range of policy measures that
JPMorgan Chase structures its compensation programs and have significantly changed the markets and prudential
practices. regulatory environment in the U.K. In addition, U.K.
Significant international regulatory initiatives: regulators have introduced measures to enhance
In the EU, there is an extensive and complex program of accountability of individuals, and promote forward-looking
final and proposed regulatory enhancement that reflects, in conduct risk identification and mitigation, including by
part, the EU’s commitments to policies of the Group of introducing the Senior Managers and Certification Regimes.
Twenty Finance Ministers and Central Bank Governors On June 23, 2016, the U.K. voted by referendum to leave
(“G20”) together with other plans specific to the EU. The EU the European Union. The U.K. government invoked Article
operates a European Systemic Risk Board that monitors 50 of the Lisbon Treaty on March 29, 2017, starting a two-
financial stability, together with European Supervisory year period for the formal exit negotiations. This means that
Authorities (“ESA”) that set detailed regulatory rules and the U.K. will leave the EU on March 29, 2019 unless the
encourage supervisory convergence across the EU’s timeline is unanimously extended by the remaining 27 EU
Member States. The EU is currently reviewing the ESA Member States (“EU27”) and the U.K. In December 2017,
framework. The EU has also created a Single Supervisory the EU27 agreed that “sufficient progress” had been made
Mechanism for the euro-zone, under which the regulation of on the terms of the U.K.’s withdrawal to allow parallel talks
all banks in that zone will be under the auspices of the on the future relationship, which are expected to begin in
European Central Bank, together with a Single Resolution March 2018. The U.K.’s priorities in negotiating the future
Mechanism and Single Resolution Board, having jurisdiction relationship are to seek a bilateral free trade agreement
over bank resolution in the zone. At both the G20 and EU with the EU27 that facilitates the “greatest possible access”
levels, various proposals are under consideration to address to the Single Market. However, the U.K. will not seek to
risks associated with global financial institutions. continue its membership in the Single Market. The current
In the EU, this includes EMIR, which requires, among other EU27 position is that a free trade agreement should be
things, the central clearing of certain standardized balanced, ambitious and wide-ranging, that the U.K.’s
derivatives and risk mitigation for uncleared OTC participation in the Single Market or parts thereof must
derivatives, and MiFID II, which gives effect to the G20 end, and that there will not be any sector-specific carve-
commitment to move trading of standardized OTC outs, such as for financial services. Both the EU27 and the
derivatives to exchanges or electronic trading platforms. U.K. are open to the idea of a “transitional arrangement.”
MiFID II significantly enhances requirements for pre- and The U.K.’s departure from the EU will have a significant
post-trade transparency, transaction reporting and investor impact across JPMorgan Chase’s European businesses,
protection. MiFID II also introduces a commodities position including business and legal entity reorganization, and may
limits and reporting regime. EMIR became effective in lead to direct and indirect changes to EU27 and U.K.
2012, although some requirements apply on a phased basis regulatory approaches. The situation remains highly
and certain aspects of the regulation are currently being uncertain, particularly in relation to whether a transition
reviewed. MiFID II became effective across EU Member period is implemented and whether financial services will
States on January 3, 2018, after a one-year delay. be included in any future free trade agreement.
The EU is also currently considering or implementing Consolidation
significant revisions to laws covering securities settlement; The Consolidated Financial Statements include the accounts
mutual funds and pensions; payments; anti-money of JPMorgan Chase Bank, N.A. and other entities in which
laundering controls; data security and privacy; transparency JPMorgan Chase Bank, N.A. has a controlling financial
and disclosure of securities financing transactions; interest. All material intercompany balances and
benchmarks; resolution of banks, investment firms and transactions have been eliminated.
market infrastructures; and capital and liquidity Assets held for clients in an agency or fiduciary capacity by
requirements for banks and investment firms. The capital JPMorgan Chase Bank, N.A. are not assets of JPMorgan
and liquidity legislation for banks and investment firms will Chase Bank, N.A. and are not included on the Consolidated
implement in the EU many of the finalized Basel III capital balance sheets.
and liquidity standards, including in relation to the leverage
ratio, market risk capital, and a net stable funding ratio. The JPMorgan Chase Bank, N.A. determines whether it has a
legislation also proposes an intermediate parent controlling financial interest in an entity by first evaluating
undertaking (“IPU”) requirement for foreign banks, which whether the entity is a voting interest entity or a variable
will require non-EU banks operating in Europe (with total EU interest entity.
assets greater than EUR30 billion or which are part of a

Voting Interest Entities have rights to those cash flows. SPEs are generally
Voting interest entities are entities that have sufficient structured to insulate investors from claims on the SPE’s
equity and provide the equity investors voting rights that assets by creditors of other entities, including the creditors
enable them to make significant decisions relating to the of the seller of the assets.
entity’s operations. For these types of entities, JPMorgan The primary beneficiary of a VIE (i.e., the party that has a
Chase Bank, N.A.’s determination of whether it has a controlling financial interest) is required to consolidate the
controlling interest is primarily based on the amount of assets and liabilities of the VIE. The primary beneficiary is
voting equity interests held. Entities in which JPMorgan the party that has both (1) the power to direct the activities
Chase Bank, N.A. has a controlling financial interest, of the VIE that most significantly impact the VIE’s economic
through ownership of the majority of the entities’ voting performance; and (2) through its interests in the VIE, the
equity interests, or through other contractual rights that obligation to absorb losses or the right to receive benefits
give JPMorgan Chase Bank, N.A. control, are consolidated from the VIE that could potentially be significant to the VIE.
by JPMorgan Chase Bank, N.A.
To assess whether JPMorgan Chase Bank, N.A. has the
Investments in companies in which JPMorgan Chase Bank, power to direct the activities of a VIE that most significantly
N.A. has significant influence over operating and financing impact the VIE’s economic performance, JPMorgan Chase
decisions (but does not own a majority of the voting equity Bank, N.A. considers all the facts and circumstances,
interests) are accounted for (i) in accordance with the including its role in establishing the VIE and its ongoing
equity method of accounting (which requires JPMorgan rights and responsibilities. This assessment includes, first,
Chase Bank, N.A. to recognize its proportionate share of the identifying the activities that most significantly impact the
entity’s net earnings), or (ii) at fair value if the fair value VIE’s economic performance; and second, identifying which
option was elected. These investments are generally party, if any, has power over those activities. In general, the
included in other assets, with income or loss included in parties that make the most significant decisions affecting
other income. the VIE (such as asset managers, collateral managers,
Certain JPMorgan Chase Bank, N.A.-sponsored asset servicers, or owners of call options or liquidation rights over
management funds are structured as limited partnerships the VIE’s assets) or have the right to unilaterally remove
or certain limited liability companies. For many of these those decision-makers are deemed to have the power to
entities, JPMorgan Chase Bank, N.A. is a general partner or direct the activities of a VIE.
managing member, but the non-affiliated partners or To assess whether JPMorgan Chase Bank, N.A. has the
members have the ability to remove JPMorgan Chase Bank, obligation to absorb losses of the VIE or the right to receive
N.A as the general partner or managing member without benefits from the VIE that could potentially be significant to
cause (i.e., kick-out rights), based on a simple majority vote, the VIE, JPMorgan Chase Bank, N.A. considers all of its
or the non-affiliated partners or members have rights to economic interests, including debt and equity investments,
participate in important decisions. Accordingly, JPMorgan servicing fees, and derivatives or other arrangements
Chase Bank, N.A. does not consolidate these voting interest deemed to be variable interests in the VIE. This assessment
entities. However, in the limited cases where the non- requires that JPMorgan Chase Bank, N.A. apply judgment in
managing partners or members do not have substantive determining whether these interests, in the aggregate, are
kick-out or participating rights, JPMorgan Chase Bank, N.A. considered potentially significant to the VIE. Factors
evaluates the funds as VIEs and consolidates if it is the considered in assessing significance include: the design of
general partner or managing member and has a potentially the VIE, including its capitalization structure; subordination
significant interest. of interests; payment priority; relative share of interests
Variable Interest Entities held across various classes within the VIE’s capital
VIEs are entities that, by design, either (1) lack sufficient structure; and the reasons why the interests are held by
equity to permit the entity to finance its activities without JPMorgan Chase Bank, N.A.
additional subordinated financial support from other JPMorgan Chase Bank, N.A. performs on-going
parties, or (2) have equity investors that do not have the reassessments of: (1) whether entities previously evaluated
ability to make significant decisions relating to the entity’s under the majority voting-interest framework have become
operations through voting rights, or do not have the VIEs, based on certain events, and are therefore subject to
obligation to absorb the expected losses, or do not have the the VIE consolidation framework; and (2) whether changes
right to receive the residual returns of the entity. in the facts and circumstances regarding JPMorgan Chase
The most common type of VIE is a special purpose entity Bank, N.A.’s involvement with a VIE cause JPMorgan Chase
(“SPE”). SPEs are commonly used in securitization Bank, N.A.’s consolidation conclusion to change.
transactions in order to isolate certain assets and distribute Use of estimates in the preparation of consolidated
the cash flows from those assets to investors. The basic SPE financial statements
structure involves a company selling assets to the SPE; the The preparation of the Consolidated Financial Statements
SPE funds the purchase of those assets by issuing securities requires management to make estimates and assumptions
to investors. The legal documents that govern the that affect the reported amounts of assets and liabilities,
transaction specify how the cash earned on the assets must revenue and expense, and disclosures of contingent assets
be allocated to the SPE’s investors and other parties that
and liabilities. Actual results could be different from these Typical master netting agreements for these types of
estimates. transactions also often contain a collateral/margin
agreement that provides for a security interest in, or title
Foreign currency translation
transfer of, securities or cash collateral/margin to the party
JPMorgan Chase Bank, N.A. revalues assets, liabilities,
that has the right to demand margin (the “demanding
revenue and expense denominated in non-U.S. currencies
party”). The collateral/margin agreement typically requires
into U.S. dollars using applicable exchange rates.
a party to transfer collateral/margin to the demanding
Gains and losses relating to translating functional currency party with a value equal to the amount of the margin deficit
financial statements for U.S. reporting are included in other on a net basis across all transactions governed by the
comprehensive income/(loss) (“OCI”) within stockholder’s master netting agreement, less any threshold. The
equity. Gains and losses relating to nonfunctional currency collateral/margin agreement grants to the demanding
transactions, including non-U.S. operations where the party, upon default by the counterparty, the right to set-off
functional currency is the U.S. dollar, are reported in the any amounts payable by the counterparty against any
Consolidated statements of income. posted collateral or the cash equivalent of any posted
Offsetting assets and liabilities collateral/margin. It also grants to the demanding party the
U.S. GAAP permits entities to present derivative receivables right to liquidate collateral/margin and to apply the
and derivative payables with the same counterparty and the proceeds to an amount payable by the counterparty.
related cash collateral receivables and payables on a net For further discussion of JPMorgan Chase Bank, N.A.’s
basis on the Consolidated balance sheets when a legally derivative instruments, see Note 6. For further discussion of
enforceable master netting agreement exists. U.S. GAAP JPMorgan Chase Bank, N.A.’s repurchase and reverse
also permits securities sold and purchased under repurchase agreements, and securities borrowing and
repurchase agreements and securities borrowed or loaned lending agreements, see Note 12.
under securities loan agreements to be presented net when
specified conditions are met, including the existence of a Statements of cash flows
legally enforceable master netting agreement. JPMorgan For JPMorgan Chase Bank, N.A.’s Consolidated statements
Chase Bank, N.A. has elected to net such balances when the of cash flows, cash is defined as those amounts included in
specified conditions are met. cash and due from banks.
JPMorgan Chase Bank, N.A. uses master netting agreements Significant accounting policies
with third parties and affiliates to mitigate counterparty The following table identifies JPMorgan Chase Bank, N.A.’s
credit risk in certain transactions, including derivative, other significant accounting policies and the Note and page
securities repurchase and reverse repurchase, and where a detailed description of each policy can be found.
securities loaned and borrow transactions. A master netting Fair value measurement Note 3 Page 20
agreement is a single agreement with a counterparty that
permits multiple transactions governed by that agreement Fair value option Note 4 Page 38
to be terminated or accelerated and settled through a single Derivative instruments Note 6 Page 43
payment in a single currency in the event of a default (e.g., Noninterest revenue Note 7 Page 57
bankruptcy, failure to make a required payment or Interest income and interest expense Note 8 Page 60
securities transfer or deliver collateral or margin when
Pension and other postretirement
due). Upon the exercise of derivatives termination rights by employee benefit plans Note 9 Page 61
the non-defaulting party (i) all transactions are terminated,
Employee share-based incentives Note 10 Page 65
(ii) all transactions are valued and the positive values of “in
the money” transactions are netted against the negative Securities Note 11 Page 67
values of “out of the money” transactions and (iii) the only Securities financing activities Note 12 Page 72
remaining payment obligation is of one of the parties to pay Loans Note 13 Page 75
the netted termination amount. Upon exercise of default Allowance for credit losses Note 14 Page 95
rights under repurchase agreements and securities loan
Variable interest entities Note 15 Page 100
agreements in general (i) all transactions are terminated
and accelerated, (ii) all values of securities or cash held or Goodwill and Mortgage servicing rights Note 16 Page 108
to be delivered are calculated, and all such sums are netted Premises and equipment Note 17 Page 110
against each other and (iii) the only remaining payment Long-term debt Note 19 Page 111
obligation is of one of the parties to pay the netted
Related party transactions Note 20 Page 112
termination amount.
Income taxes Note 22 Page 115
Off–balance sheet lending-related
financial instruments, guarantees and
other commitments Note 25 Page 120
Litigation Note 27 Page 127

Note 2 – ACCOUNTING AND REPORTING DEVELOPMENTS

SEC Staff Accounting Bulletin adopted during 2017
Bulletin Summary of guidance Effects on financial statements
Application of U.S. • Provides guidance on the accounting for • The TCJA resulted in a $2.1 billion decrease in net income driven by a deemed
GAAP related to the income taxes in the context of the TCJA. repatriation charge and adjustments to the value of JPMorgan Chase Bank, N.A.’s
Tax Cuts and Jobs Act • For impacts of the tax law changes that tax oriented investments, partially offset by a benefit from the revaluation of
(“TCJA”) (SEC Staff JPMorgan Chase Bank, N.A.’s net deferred tax liability. Certain of these amounts
are reasonably estimable, requires the
Accounting Bulletin may be refined in accordance with SEC Staff Accounting Bulletin No. 118.
recognition of provisional amounts in
No. 118) year-end 2017 financial statements. • Refer to Note 22 for additional information related to the impacts of the TCJA.
Issued December 2017 • Provides a 1-year measurement period
in which to refine previously recorded
provisional amounts based on new
information or interpretations.
FASB Standards issued but not adopted as of December 31, 2017

Standard Summary of guidance Effects on financial statements
Revenue recognition – • Requires that revenue from contracts • Adopted January 1, 2018.
revenue from with customers be recognized upon • JPMorgan Chase Bank, N.A. adopted the revenue recognition guidance using the
contracts with transfer of control of a good or service full retrospective method of adoption.
customers in the amount of consideration
expected to be received. • The adoption of the guidance did not result in any material changes in the timing
Issued May 2014 or presentation of JPMorgan Chase Bank, N.A.’s revenue recognition.
• Changes the accounting for certain
contract costs, including whether they • JPMorgan Chase Bank, N.A.’s Note 7 qualitative disclosures are consistent with the
guidance.
may be offset against revenue in the
Consolidated statements of income, and
requires additional disclosures about
revenue and contract costs.
• May be adopted using a full
retrospective approach or a modified,
cumulative effect approach wherein the
guidance is applied only to existing
contracts as of the date of initial
application, and to new contracts
transacted after that date.
Recognition and • Requires that certain equity instruments • JPMorgan Chase Bank, N.A. early adopted the provisions of this guidance related
measurement of be measured at fair value, with changes to presenting DVA in OCI for financial liabilities where the fair value option has
financial assets and in fair value recognized in earnings. been elected, effective January 1, 2016. JPMorgan Chase Bank, N.A. adopted the
financial liabilities • Provides a measurement alternative for portions of the guidance that were not eligible for early adoption on January 1,
equity securities without readily 2018.
Issued January 2016
determinable fair values to be • Upon adoption, JPMorgan Chase Bank, N.A. elected the measurement alternative
measured at cost less impairment (if for its equity securities that do not have readily determinable fair values, and
any), plus or minus observable price JPMorgan Chase Bank, N.A. did not record a cumulative-effect adjustment related
changes from an identical or similar to the adoption of this guidance.
investment of the same issuer. Any such
price changes will be reflected in
earnings beginning in the period of
adoption.
• Generally requires a cumulative-effect
adjustment to retained earnings as of
the beginning of the reporting period of
adoption, except for those equity
securities that are eligible for the
measurement alternative.
Classification of • Provides targeted amendments to the • Adopted January 1, 2018.

certain cash receipts classification of certain cash flows, • No material impact upon adoption as JPMorgan Chase Bank, N.A. was either in
and cash payments in including treatment of cash payments compliance with the amendments or the amounts to which it is applied are
the statement of cash for settlement of zero-coupon debt immaterial.
flows instruments and distributions received
Issued August 2016 from equity method investments.
• Requires retrospective application to all
periods presented.

FASB Standards issued but not adopted as of December 31, 2017 (continued)
Treatment of • Requires inclusion of restricted cash in • Adopted January 1, 2018.
restricted cash on the the cash and cash equivalents balances • The adoption of the guidance will result in reclassification of restricted cash
statement of cash in the Consolidated statements of cash balances into Cash and restricted cash on the Consolidated statements of cash
flows flows. flows in the first half of 2018. JPMorgan Chase Bank, N.A. will include Cash and
Issued November • Requires additional disclosures to due from banks and Deposits with banks in Cash and restricted cash in the
2016 supplement the Consolidated Consolidated statements of cash flows, resulting in Deposits with banks no longer
statements of cash flows. being reflected in Investing activities.
• Requires retrospective application to all • In addition, to align with the presentation of Cash and restricted cash on the
periods presented. Consolidated statements of cash flows, JPMorgan Chase Bank, N.A. will reclassify
restricted cash balances to Cash and due from banks and to Deposits with banks
from Other assets and disclose the total for Cash and restricted cash on JPMorgan
Chase Bank, N.A.’s Consolidated balance sheets in the first half of 2018.
Definition of a • Narrows the definition of a business • Adopted January 1, 2018.

business and clarifies that, to be considered a • No impact upon adoption because the guidance is to be applied prospectively.
business, the fair value of the gross Subsequent to adoption, fewer transactions will be treated as acquisitions or
Issued January 2017 assets acquired (or disposed of) may dispositions of a business.
not be substantially all concentrated in
a single identifiable asset or a group of
similar assets.
• In addition, in order to be considered a
business, a set of activities and assets
must include, at a minimum, an input
and a substantive process that together
significantly contribute to the ability to
create outputs.
Presentation of net • Requires the service cost component of • Adopted January 1, 2018.
periodic pension cost net periodic pension and • The adoption of the guidance in the first quarter of 2018 will result in an increase
and net periodic postretirement benefit cost to be in compensation expense and a reduction in other expense of $75 million and
postretirement reported separately in the consolidated $78 million for the years ended December 31, 2017 and 2016, respectively.
benefit cost results of operations from the other
components (e.g., expected return on
Issued March 2017 assets, interest costs, amortization of
gains/losses and prior service costs).
• Requires retrospective application and
presentation in the consolidated results
of operations of the service cost
component in the same line item as
other employee compensation costs
and presentation of the other
components in a different line item
from the service cost component.
Premium amortization • Requires amortization of premiums to • JPMorgan Chase Bank, N.A. early adopted the new guidance on January 1, 2018.
on purchased callable the earliest call date on debt securities • The new guidance primarily impacts obligations of U.S. states and municipalities
debt securities with call features that are explicit, held in JPMorgan Chase Bank, N.A.’s investment securities portfolio.
noncontingent and callable at fixed • The adoption of this guidance resulted in a cumulative-effect adjustment that
Issued March 2017 prices and on preset dates. reduced retained earnings by approximately $494 million as of January 1, 2018,
with a corresponding increase of $252 million (after tax) in AOCI and related
• Does not impact securities held at a adjustments to securities and tax liabilities.
discount; the discount continues to be
• Subsequent to adoption, although the guidance will reduce the interest income
amortized to the contractual maturity. recognized prior to the earliest call date for callable debt securities held at a
• Requires adoption on a modified premium, the effect of this guidance on JPMorgan Chase Bank, N.A.’s net interest
retrospective basis through a income is not expected to be material.
cumulative-effect adjustment directly
to retained earnings as of the
beginning of the period of adoption.

Hedge accounting • Reduces earnings volatility by better • JPMorgan Chase Bank, N.A. early adopted the new guidance on January 1, 2018.
aligning the accounting with the • The adoption of the guidance did not result in a material cumulative-effect
Issued August 2017 economics of the risk management adjustment to retained earnings and AOCI.
activities.
• JPMorgan Chase Bank, N.A. will also amend its qualitative and quantitative
• Expands the ability for certain hedges disclosures within its derivative instruments note to the Consolidated Financial
of interest rate risk to qualify for hedge Statements in the first half of 2018.
accounting.
• In accordance with the new guidance, JPMorgan Chase Bank, N.A. elected to
• Allows recognition of ineffectiveness in transfer certain securities from HTM to AFS. The amendments provide JPMorgan
cash flow hedges and net investment Chase Bank, N.A. with additional hedge accounting alternatives for its AFS
hedges in OCI. securities (including those transferred under the election) to be considered as
• Allows a one-time election at adoption JPMorgan Chase Bank, N.A. manages it structural interest rate risk and regulatory
to transfer certain securities classified capital. JPMorgan Chase Bank, N.A. is currently evaluating those risk management
as held-to-maturity to available-for- alternatives and intends to manage the transferred securities in a manner
sale. consistent with its existing AFS securities. This transfer is a non-cash transaction
• Simplifies hedge documentation at fair value.
requirements.
Reclassification of • Provides an election to reclassify from • JPMorgan Chase Bank, N.A. early adopted the new guidance on January 1, 2018.
Certain Tax Effects AOCI to retained earnings stranded tax • The adoption of the guidance resulted in a cumulative-effect adjustment that
from AOCI effects due to the revaluation of decreased retained earnings in the amount of $186 million. This amount is an
deferred tax assets and liabilities as a estimate that may be refined in accordance with SEC Staff Accounting Bulletin No.
Issued February 2018 result of changes in applicable tax rates 118, and represents the removal of the stranded tax effects from AOCI, thereby
under the TCJA. allowing the tax effects within AOCI to reflect the new respective corporate
• Requires additional disclosures related income tax rate.
to JPMorgan Chase Bank, N.A.’s election • Refer to Note 22 for additional information related to the impacts of the TCJA.
to reclassify amounts from AOCI to
retained earnings and JPMorgan Chase
Bank, N.A.’s policy for releasing income
tax effects from AOCI.
• The guidance is required to be applied
retrospectively to each period (or
periods) in which the effect of the
change in the federal corporate income
tax rate is recognized.
Leases • Requires lessees to recognize all leases • Required effective date: January 1, 2019.(a)
longer than twelve months on the • JPMorgan Chase Bank, N.A. is in the process of its implementation which has
Issued February 2016 Consolidated balance sheets as lease included an initial evaluation of its leasing contracts and activities. As a lessee,
liabilities with corresponding right-of- JPMorgan Chase Bank, N.A. is developing its methodology to estimate the right-of-
use assets. use assets and lease liabilities, which is based on the present value of lease
• Requires lessees and lessors to classify payments. JPMorgan Chase Bank, N.A. expects to recognize lease liabilities and
most leases using principles similar to corresponding right-of-use assets (at their present value) related to
existing lease accounting, but predominantly all of the $9 billion of future minimum payments required under
eliminates the “bright line” operating leases as disclosed in Note 26. However, the population of contracts
classification tests. subject to balance sheet recognition and their initial measurement remains under
• Permits JPMorgan Chase Bank, N.A. to evaluation. JPMorgan Chase Bank, N.A. does not expect material changes to the
generally account for its existing leases recognition of operating lease expense in its Consolidated statements of income.
consistent with current guidance, • JPMorgan Chase Bank, N.A. plans to adopt the new guidance in the first quarter of
except for the incremental balance 2019.
sheet recognition.
• Expands qualitative and quantitative
disclosures regarding leasing
arrangements.
• May be adopted using a modified,
cumulative effect approach wherein the
guidance is applied only to existing
contracts as of the date of initial
application, and to new contracts
transacted after that date.

Financial instruments • Replaces existing incurred loss • Required effective date: January 1, 2020.(a)
– credit losses impairment guidance and establishes a • JPMorgan Chase Bank, N.A. has begun its implementation efforts by establishing a
single allowance framework for Firmwide, cross-discipline governance structure. JPMorgan Chase Bank, N.A. is
Issued June 2016 financial assets carried at amortized currently identifying key interpretive issues, and is assessing existing credit loss
cost (including Held-to-maturity forecasting models and processes against the new guidance to determine what
(“HTM”) securities), which will reflect modifications may be required.
management’s estimate of credit losses
over the full remaining expected life of • JPMorgan Chase Bank, N.A. expects that the new guidance will result in an
the financial assets. increase in its allowance for credit losses due to several factors, including:
• Eliminates existing guidance for PCI 1. The allowance related to JPMorgan Chase Bank, N.A.’s loans and commitments
loans, and requires recognition of an will increase to cover credit losses over the full remaining expected life of the
allowance for expected credit losses on portfolio, and will consider expected future changes in macroeconomic
financial assets purchased with more conditions
than insignificant credit deterioration 2. The nonaccretable difference on PCI loans will be recognized as an allowance,
since origination. offset by an increase in the carrying value of the related loans
• Amends existing impairment guidance 3. An allowance will be established for estimated credit losses on HTM securities
for AFS securities to incorporate an • The extent of the increase is under evaluation, but will depend upon the nature
allowance, which will allow for reversals and characteristics of JPMorgan Chase Bank, N.A.’s portfolio at the adoption date,
of impairment losses in the event that and the macroeconomic conditions and forecasts at that date.
the credit of an issuer improves.
• Requires a cumulative-effect
adjustment to retained earnings as of
the beginning of the reporting period of
adoption.
Goodwill • Requires an impairment loss to be • Required effective date: January 1, 2020.(a)

recognized when the estimated fair • Based on current impairment test results, JPMorgan Chase Bank, N.A. does not
Issued January 2017 value of a reporting unit falls below its expect a material effect on the Consolidated Financial Statements.
carrying value.
• After adoption, the guidance may result in more frequent goodwill impairment
• Eliminates the second condition in the losses due to the removal of the second condition.
current guidance that requires an
impairment loss to be recognized only if • JPMorgan Chase Bank, N.A. is evaluating the timing of adoption.
the estimated implied fair value of the
goodwill is below its carrying value.
(a) Early adoption is permitted.

Note 3 – Fair value measurement

JPMorgan Chase Bank, N.A. carries a portion of its assets conducted across JPMorgan Chase. The VGF is chaired by
and liabilities at fair value. These assets and liabilities are the Firmwide head of the VCG (under the direction of
predominantly carried at fair value on a recurring basis JPMorgan Chase’s Controller).
(i.e., assets and liabilities that are measured and reported
Price verification process
at fair value on JPMorgan Chase Bank, N.A.’s Consolidated
The VCG verifies fair value estimates provided by the risk-
balance sheets). Certain assets (e.g., held-for-sale loans),
taking functions by leveraging independently derived prices,
liabilities and unfunded lending-related commitments are
valuation inputs and other market data, where available.
measured at fair value on a nonrecurring basis; that is, they
Where independent prices or inputs are not available, the
are not measured at fair value on an ongoing basis but are
VCG performs additional review to ensure the
subject to fair value adjustments only in certain
reasonableness of the estimates. The additional review may
circumstances (for example, when there is evidence of
include evaluating the limited market activity including
impairment).
client unwinds, benchmarking valuation inputs to those
Fair value is defined as the price that would be received to used for similar instruments, decomposing the valuation of
sell an asset or paid to transfer a liability in an orderly structured instruments into individual components,
transaction between market participants at the comparing expected to actual cash flows, reviewing profit
measurement date. Fair value is based on quoted market and loss trends, and reviewing trends in collateral valuation.
prices or inputs, where available. If prices or quotes are not There are also additional levels of management review for
available, fair value is based on valuation models and other more significant or complex positions.
valuation techniques that consider relevant transaction
The VCG determines any valuation adjustments that may be
characteristics (such as maturity) and use as inputs
required to the estimates provided by the risk-taking
observable or unobservable market parameters, including
functions. No adjustments to quoted prices are applied for
yield curves, interest rates, volatilities, equity or debt
instruments classified within level 1 of the fair value
prices, foreign exchange rates and credit curves. Valuation
hierarchy (see below for further information on the fair
adjustments may be made to ensure that financial
value hierarchy). For other positions, judgment is required
instruments are recorded at fair value, as described below.
to assess the need for valuation adjustments to
The level of precision in estimating unobservable market appropriately reflect liquidity considerations, unobservable
inputs or other factors can affect the amount of gain or loss parameters, and, for certain portfolios that meet specified
recorded for a particular position. Furthermore, while criteria, the size of the net open risk position. The
JPMorgan Chase Bank, N.A. believes its valuation methods determination of such adjustments follows a consistent
are appropriate and consistent with those of other market framework across JPMorgan Chase Bank, N.A.:
participants, the methods and assumptions used reflect
• Liquidity valuation adjustments are considered where an
management judgment and may vary across JPMorgan
observable external price or valuation parameter exists
Chase Bank, N.A.’s businesses and portfolios.
but is of lower reliability, potentially due to lower market
JPMorgan Chase Bank, N.A. uses various methodologies and activity. Liquidity valuation adjustments are applied and
assumptions in the determination of fair value. The use of determined based on current market conditions. Factors
different methodologies or assumptions by other market that may be considered in determining the liquidity
participants compared with those used by JPMorgan Chase adjustment include analysis of: (1) the estimated bid-
Bank, N.A. could result in JPMorgan Chase Bank, N.A. offer spread for the instrument being traded; (2)
deriving a different estimate of fair value at the reporting alternative pricing points for similar instruments in
date. active markets; and (3) the range of reasonable values
that the price or parameter could take.
Valuation process
Risk-taking functions are responsible for providing fair value • JPMorgan Chase Bank, N.A. manages certain portfolios
estimates for assets and liabilities carried on the of financial instruments on the basis of net open risk
Consolidated balance sheets at fair value. JPMorgan Chase’s exposure and, as permitted by U.S. GAAP, has elected to
Valuation Control Group (“VCG”), which is part of JPMorgan estimate the fair value of such portfolios on the basis of
Chase’s Finance function and independent of the risk-taking a transfer of the entire net open risk position in an
functions, is responsible for verifying these estimates and orderly transaction. Where this is the case, valuation
determining any fair value adjustments that may be adjustments may be necessary to reflect the cost of
required to ensure that JPMorgan Chase Bank, N.A.’s exiting a larger-than-normal market-size net open risk
positions are recorded at fair value. The Valuation position. Where applied, such adjustments are based on
Governance Forum (“VGF”) is composed of senior finance factors that a relevant market participant would
and risk executives and is responsible for overseeing the consider in the transfer of the net open risk position,
management of risks arising from valuation activities including the size of the adverse market move that is

likely to occur during the period required to reduce the existing models, prior to implementation in the operating
net open risk position to a normal market-size. environment. In certain circumstances, the head of the
Model Risk function may grant exceptions to JPMorgan
• Unobservable parameter valuation adjustments may be
Chase Bank, N.A.’s policy to allow a model to be used prior
made when positions are valued using prices or input
to review or approval. The Model Risk function may also
parameters to valuation models that are unobservable
require the user to take appropriate actions to mitigate the
due to a lack of market activity or because they cannot
model risk if it is to be used in the interim. These actions
be implied from observable market data. Such prices or
will depend on the model and may include, for example,
parameters must be estimated and are, therefore,
limitation of trading activity.
subject to management judgment. Unobservable
parameter valuation adjustments are applied to reflect Valuation hierarchy
the uncertainty inherent in the resulting valuation A three-level valuation hierarchy has been established
estimate. under U.S. GAAP for disclosure of fair value measurements.
The valuation hierarchy is based on the transparency of
• Where appropriate, JPMorgan Chase Bank, N.A.also
inputs to the valuation of an asset or liability as of the
applies adjustments to its estimates of fair value in order
measurement date. The three levels are defined as follows.
to appropriately reflect counterparty credit quality
(credit valuation adjustments (“CVA”)), JPMorgan Chase • Level 1 – inputs to the valuation methodology are
Bank, N.A.’s own creditworthiness (debit valuation quoted prices (unadjusted) for identical assets or
adjustments (“DVA”)) and the impact of funding (funding liabilities in active markets.
valuation adjustments (“FVA”)), using a consistent
• Level 2 – inputs to the valuation methodology include
framework across JPMorgan Chase Bank, N.A.
quoted prices for similar assets and liabilities in active
Valuation model review and approval markets, and inputs that are observable for the asset or
If prices or quotes are not available for an instrument or a liability, either directly or indirectly, for substantially the
similar instrument, fair value is generally determined using full term of the financial instrument.
valuation models that consider relevant transaction data
• Level 3 – one or more inputs to the valuation
such as maturity and use as inputs market-based or
methodology are unobservable and significant to the fair
independently sourced parameters. Where this is the case
value measurement.
the price verification process described above is applied to
the inputs to those models. A financial instrument’s categorization within the valuation
hierarchy is based on the lowest level of input that is
Under JPMorgan Chase Bank, N.A.’s Estimations and Model
significant to the fair value measurement.
Risk Management Policy, the Model Risk function reviews
and approves new models, as well as material changes to

The following table describes the valuation methodologies generally used by JPMorgan Chase Bank, N.A. to measure its significant
products/instruments at fair value, including the general classification of such instruments pursuant to the valuation hierarchy.
Classifications in the valuation

Product/instrument Valuation methodology hierarchy
Securities financing agreements Valuations are based on discounted cash flows, which consider: Predominantly level 2
• Derivative features: for further information refer to the
discussion of derivatives below.
• Market rates for the respective maturity
• Collateral characteristics
Loans and lending-related commitments – wholesale
Loans carried at fair value (e.g. Where observable market data is available, valuations are based on: Level 2 or 3
trading loans and non-trading
loans) and associated lending- • Observed market prices (circumstances are infrequent)
related commitments • Relevant broker quotes
• Observed market prices for similar instruments
Where 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 credit default swaps
(“CDS”); or benchmark credit curves developed by JPMorgan
Chase Bank, N.A., by industry and credit rating
• Prepayment speed
Loans held-for-investment and Valuations are based on discounted cash flows, which consider: Predominantly level 3
associated lending related
commitments • Credit spreads, derived from the cost of CDS; or benchmark credit
curves developed by JPMorgan Chase Bank, N.A., by industry and
credit rating
Lending-related commitments are valued similarly to loans and reflect the
portion of an unused commitment expected, based on JPMorgan Chase
Bank, N.A.’s average portfolio historical experience, to become funded
prior to an obligor default.
For information regarding the valuation of loans measured at collateral
value, see Note 13.
Loans – consumer
Held-for-investment consumer Valuations are based on discounted cash flows, which consider: Predominantly level 2
loans, excluding credit card
• Credit losses – which consider expected and current default rates,
and loss severity
• Discount rates
• Servicing costs
For information regarding the valuation of loans measured at collateral
value, see Note 13.
Held-for-investment credit card Valuations are based on discounted cash flows, which consider: Level 3
receivables
• Credit costs - the allowance for loan losses is considered a
reasonable proxy for the credit cost
• Projected interest income, late-fee revenue and loan repayment
rates
• Discount rates
• Servicing costs
Trading loans – conforming Fair value is based on observable prices for mortgage-backed securities Predominantly level 2
residential mortgage loans (“MBS”) with similar collateral and incorporates adjustments to these
expected to be sold (Consumer & prices to account for differences between the securities and the value of
community banking business, the underlying loans, which include credit characteristics, portfolio
Corporate & investment banking composition, and liquidity.
business)

Classifications in the
Product/instrument Valuation methodology, inputs and assumptions valuation hierarchy
Investment and trading securities Quoted market prices are used where available. Level 1
In 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 flows
In addition, the following inputs to discounted cash flows are used for the
following products:
Mortgage- and asset-backed securities (“ABS”) specific inputs:
• Deal-specific payment and loss allocations
• Current market assumptions related to yield, prepayment speed,
conditional default rates and loss severity
Collateralized loan obligations (“CLOs”), specific inputs:
• Deal-specific payment and loss allocations
• Expected prepayment speed, conditional default rates, loss severity
• Credit spreads
• Credit rating data
Physical commodities Valued using observable market prices or data. Predominantly Level 1 and 2
Derivatives Exchange-traded derivatives that are actively traded and valued using the Level 1
exchange price.
Derivatives that are valued using models such as the Black-Scholes option Level 2 or 3
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, interest rate yield curves, foreign exchange rates,
volatilities, correlations, CDS spreads and recovery rates. Additionally,
the credit quality of the counterparty and of JPMorgan Chase Bank, N.A.
as well as market funding levels may also be considered.
In addition, specific inputs used for derivatives that are valued based on
models with significant unobservable inputs are as follows:
Structured credit derivatives specific inputs include:
• CDS spreads and recovery rates
• Credit correlation between the underlying debt instruments
Equity option specific inputs include:
• Equity volatilities
• Equity correlation
• Equity-FX correlation
• Equity-IR correlation
Interest rate and FX exotic options specific inputs include:
• Interest rate spread volatility
• Interest rate correlation
• Foreign exchange correlation
• Interest rate-FX correlation
Commodity derivatives specific inputs include:
• Commodity volatility
• Forward commodity price
Additionally, adjustments are made to reflect counterparty credit quality
(CVA) and the impact of funding (FVA).

Classification in the
Product/instrument Valuation methodology, inputs and assumptions valuation hierarchy
Mortgage servicing rights See Mortgage servicing rights in Note 16. Level 3
(“MSRs”)
Fund investments (e.g. mutual/ Net asset value (“NAV”)
collective investment funds, • NAV is supported by the ability to redeem and purchase at the NAV Level 1
private equity funds, hedge level.
funds, and real estate funds)
• Adjustments to the NAV as required, for restrictions on redemption
(e.g., lock-up periods or withdrawal limitations) or where observable Level 2 or 3
(a)
activity is limited.
Beneficial interests issued by Valued using observable market information, where available. Level 2 or 3
consolidated VIEs
In the absence of observable market information, valuations are based on
the fair value of the underlying assets held by the VIE.
Long-term debt, not carried at Valuations are based on discounted cash flows, which consider: Predominantly level 2
fair value • Market rates for respective maturity
Structured notes (included in • Valuations are based on discounted cash flow analyses that consider Level 2 or 3
deposits, short-term borrowings the embedded derivative and the terms and payment structure of
and long-term debt) 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 JPMorgan Chase Bank, N.A.’s own credit risk
(DVA).
(a) Excludes certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient.

The following table presents the assets and liabilities reported at fair value as of December 31, 2017 and 2016 by major
product category and fair value hierarchy.
Assets and liabilities measured at fair value on a recurring basis

Fair value hierarchy
Derivative netting
December 31, 2017 (in millions) Level 1 Level 2 Level 3 adjustments Total fair value
Federal funds sold and securities purchased under resale agreements $ — $ 2,894 $ — $ — $ 2,894
Securities borrowed — 3,049 — — 3,049
Trading assets:
Debt instruments:
Mortgage-backed securities:
U.S. government agencies(a) — 2,981 289 — 3,270
Residential – nonagency — 1,036 24 — 1,060
Commercial – nonagency — 109 2 — 111
Total mortgage-backed securities — 4,126 315 — 4,441
U.S. Treasury and government agencies(a) 4,254 — 1 — 4,255
Obligations of U.S. states and municipalities — 4,285 15 — 4,300
Certificates of deposit, bankers’ acceptances and commercial paper — 38 — — 38
Non-U.S. government debt securities 28,837 28,777 78 — 57,692
Corporate debt securities — 16,310 191 — 16,501
Loans — 35,079 2,332 — 37,411
Asset-backed securities — 589 51 — 640
Total debt instruments 33,091 89,204 2,983 — 125,278
Equity securities 52,950 32 121 — 53,103
Physical commodities(b) 1,774 — — — 1,774
Other — 14,039 350 — 14,389
Total debt and equity instruments(c) 87,815 103,275 3,454 — 194,544
Derivative receivables:
Interest rate 68 317,904 1,911 (295,441) 24,442
Credit — 20,987 1,208 (21,481) 714
Foreign exchange 851 159,842 580 (145,215) 16,058
Equity — 51,183 6,323 (50,403) 7,103
Commodity — 39,723 381 (33,796) 6,308
Total derivative receivables(d)(e) 919 589,639 10,403 (546,336) 54,625
Total trading assets(f) 88,734 692,914 13,857 (546,336) 249,169
U.S. government agencies(a) — 70,280 — — 70,280
Commercial – nonagency — 4,880 — — 4,880
U.S. Treasury and government agencies(a) 22,745 — — — 22,745
Obligations of U.S. states and municipalities — 30,175 — — 30,175
Certificates of deposit — 59 — — 59
Non-U.S. government debt securities 18,140 9,154 — — 27,294
Corporate debt securities — 2,757 — — 2,757
Asset-backed securities:
Collateralized loan obligations — 20,720 276 — 20,996
Other — 8,773 — — 8,773
Equity securities 38 — — — 38
Total available-for-sale securities 40,923 158,164 277 — 199,364
Loans — 2,232 276 — 2,508
Mortgage servicing rights — — 6,030 — 6,030
Other assets(f) 7,454 — — — 7,454
Total assets measured at fair value on a recurring basis $ 137,111 $ 859,253 $ 20,440 $ (546,336) $ 470,468
Deposits $ — $ 17,230 $ 4,150 $ — $ 21,380
Federal funds purchased and securities loaned or sold under repurchase agreements — 3,405 — — 3,405
Short-term borrowings — 3,973 1,604 — 5,577
Trading liabilities:
Debt and equity instruments(c) 45,597 14,834 37 — 60,468
Derivative payables:
Interest rate 54 288,043 1,653 (282,736) 7,014
Credit — 21,026 1,241 (21,182) 1,085
Foreign exchange 826 154,952 1,021 (144,201) 12,598
Equity — 54,976 8,210 (53,935) 9,251
Commodity — 39,808 1,029 (34,516) 6,321
Total derivative payables(d)(e) 880 558,805 13,154 (536,570) 36,269
Total trading liabilities 46,477 573,639 13,191 (536,570) 96,737
Accounts payable and other liabilities 7,454 — — — 7,454
Long-term debt — 11,247 10,154 — 21,401
Total liabilities measured at fair value on a recurring basis $ 53,931 $ 609,494 $ 29,099 $ (536,570) $ 155,954


Derivative netting
December 31, 2016 (in millions) Level 1 Level 2 Level 3 adjustments Total fair value
Federal funds sold and securities purchased under resale agreements $ — $ 5,349 $ — $ — $ 5,349
Securities borrowed — — — — —
Trading assets:
Debt instruments:
U.S. government agencies(a) — 74 369 — 443
Residential – nonagency — 818 11 — 829
Commercial – nonagency — 89 6 — 95
Total mortgage-backed securities — 981 386 — 1,367
U.S. Treasury and government agencies(a) 13,516 52 — — 13,568
Obligations of U.S. states and municipalities — 3,897 19 — 3,916
Certificates of deposit, bankers’ acceptances and commercial paper — 245 — — 245
Non-U.S. government debt securities 28,443 22,994 46 — 51,483
Corporate debt securities — 14,158 318 — 14,476
Loans — 28,758 4,325 — 33,083
Asset-backed securities — 696 70 — 766
Total debt instruments 41,959 71,781 5,164 — 118,904
Equity securities 51,480 19 89 — 51,588
Physical commodities(b) 1,102 — — — 1,102
Other — 9,486 281 — 9,767
Total debt and equity instruments(c) 94,541 81,286 5,534 — 181,361
Derivative receivables:
Interest rate 289 607,393 2,658 (582,320) 28,020
Credit — 27,759 1,390 (27,916) 1,233
Foreign exchange 816 233,854 928 (212,279) 23,319
Equity — 47,816 3,089 (45,879) 5,026
Commodity 158 34,774 358 (28,970) 6,320
Total derivative receivables(d) 1,263 951,596 8,423 (897,364) 63,918
Total trading assets(f) 95,804 1,032,882 13,957 (897,364) 245,279
U.S. government agencies(a) — 64,005 — — 64,005
Commercial – nonagency — 8,691 — — 8,691
U.S. Treasury and government agencies(a) 44,072 29 — — 44,101
Obligations of U.S. states and municipalities — 28,897 — — 28,897
Certificates of deposit — 106 — — 106
Non-U.S. government debt securities 22,793 12,495 — — 35,288
Corporate debt securities — 4,958 — — 4,958
Collateralized loan obligations — 26,738 663 — 27,401
Other — 6,926 — — 6,926
Equity securities 54 — — — 54
Total available-for-sale securities 66,919 167,287 664 — 234,870
Loans — 1,660 568 — 2,228
Mortgage servicing rights — — 6,096 — 6,096
Other assets(f) — — 41 — 41
Total assets measured at fair value on a recurring basis $ 162,723 $ 1,207,178 $ 21,326 $ (897,364) $ 493,863
Deposits $ — $ 11,844 $ 2,121 $ — $ 13,965
Federal funds purchased and securities loaned or sold under repurchase agreements — 399 — — 399
Short-term borrowings — 4,552 1,019 — 5,571
Trading liabilities:
Debt and equity instruments(c) 50,393 12,636 36 — 63,065
Derivative payables:
Interest rate 184 575,305 1,657 (566,601) 10,545
Credit — 27,042 1,294 (27,038) 1,298
Foreign exchange 932 232,508 2,459 (215,433) 20,466
Equity — 50,262 4,577 (46,307) 8,532
Commodity 173 34,773 323 (27,475) 7,794
Total derivative payables(d) 1,289 919,890 10,310 (882,854) 48,635
Total trading liabilities 51,682 932,526 10,346 (882,854) 111,700
Accounts payable and other liabilities 7,494 — — — 7,494
Long-term debt — 7,274 7,662 — 14,936
Total liabilities measured at fair value on a recurring basis $ 59,176 $ 956,595 $ 21,148 $ (882,854) $ 154,065
(a) At December 31, 2017 and 2016, included total U.S. government-sponsored enterprise obligations of $49.1 billion and $46.3 billion, respectively, which were predominantly
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 JPMorgan Chase Bank, N.A.’s physical commodities inventories are either not applicable or immaterial to
the value of the inventory. Therefore, net realizable value approximates fair value for JPMorgan Chase Bank, N.A.’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. For a further discussion of JPMorgan Chase Bank, N.A.’s hedge accounting relationships, see Note 6. To provide consistent fair
value disclosure information, all physical commodities inventories have been included in each period presented.

(c) Balances reflect the reduction of securities owned (long positions) by the amount of identical securities sold but not yet purchased (short positions).
(d) As permitted under U.S. GAAP, JPMorgan Chase Bank, N.A. 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. For purposes of the tables above, JPMorgan Chase Bank, N.A. does not reduce derivative receivables and derivative
payables balances for this netting adjustment, either within or across the levels of the fair value hierarchy, as such netting is not relevant to a presentation based on the
transparency of inputs to the valuation of an asset or liability. The level 3 balances would be reduced if netting were applied, including the netting benefit associated with cash
collateral. Additionally, includes derivative receivables and payables with affiliates on a net basis. See Note 20 for information regarding our derivative activities with affiliates.
(e) Reflects JPMorgan Chase Bank, N.A.’s adoption of rulebook changes made by two Central counterparty clearinghouses (“CCPs”) that require or allow JPMorgan Chase Bank, N.A.
to treat certain OTC-cleared derivative transactions as daily settled. For further information, see Note 6.
(f) 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 December 31, 2017 and 2016, the fair values of these investments, which include certain hedge funds, private equity funds, real estate and other funds,
were $54 million and $50 million, respectively.
Transfers between levels for instruments carried at fair

value on a recurring basis
For the years ended December 31, 2017, 2016, and 2015 During the year ended December 31, 2015, transfers from
there were no significant transfers between levels 1 and 2. level 3 to level 2 and from level 2 to level 3 included the
following:
During the year ended December 31, 2017, transfers from
level 3 to level 2 included the following: • $3.5 billion of long-term debt and $1.0 billion of
deposits driven by an increase in observability on
• $1.8 billion of equity derivative receivables and $1.6
certain structured notes with embedded interest rate
billion of equity derivative payables as a result of an
and FX derivatives and a reduction in the significance of
increase in observability and a decrease in the
unobservable inputs of certain structured notes with
significance of unobservable inputs.
embedded equity derivatives.
• $1.5 billion of trading loans driven by an increase in
• $4.4 billion of gross equity derivative receivables and
observability.
$3.6 billion of equity derivative payables as a result of
During the year ended December 31, 2017, transfers from an increase in observability and a decrease in the
level 2 to level 3 included the following: significance of unobservable inputs, partially offset by
• $3.4 billion of gross equity derivative receivables and transfers into level 3 resulting in net transfers of $2.7
$3.4 billion of gross equity derivative payables as a billion and $2.3 billion respectively; $1.5 billion of
result of a decrease in observability and an increase in foreign exchange derivative receivables as a result of an
the significance of unobservable inputs. increase in observability of certain valuation input.
• $1.4 billion of long-term debt driven by a decrease in • $2.6 billion of trading loans driven by an increase in
observability. observability of certain collateralized financing
transactions; and $2.3 billion of corporate debt driven
by a reduction in the significance of unobservable inputs
level 3 to level 2 included the following:
and an increase in observability for certain structured
• $1.3 billion of equity derivative receivables as a result of products.
an increase in observability and a decrease in the
All transfers are assumed to occur at the beginning of the
significance of unobservable inputs.
quarterly reporting period in which they occur.
• $1.0 billion of long-term debt driven by an increase in
observability and a reduction in the significance of
unobservable inputs for certain structured notes.
level 2 to level 3 included the following:
• $1.7 billion of gross equity derivative receivables and
$1.9 billion of gross equity derivative payables as a
result of a decrease in observability and an increase in
the significance of unobservable inputs.
• $1.0 billion of trading loans driven by a decrease in
observability.

Level 3 valuations
JPMorgan Chase Bank, N.A. has established well-structured The range of values presented in the table is representative
processes for determining fair value, including for of the highest and lowest level input used to value the
instruments where fair value is estimated using significant significant groups of instruments within a product/
unobservable inputs (level 3). For further information on instrument classification. Where provided, the weighted
JPMorgan Chase Bank, N.A.’s valuation process and a averages of the input values presented in the table are
detailed discussion of the determination of fair value for calculated based on the fair value of the instruments that
individual financial instruments, see pages 20–24 of this the input is being used to value.
Note.
In JPMorgan Chase Bank, N.A.’s view, the input range and
Estimating fair value requires the application of judgment. the weighted average value do not reflect the degree of
The type and level of judgment required is largely input uncertainty or an assessment of the reasonableness
dependent on the amount of observable market information of JPMorgan Chase Bank, N.A.’s estimates and assumptions.
available to JPMorgan Chase Bank, N.A. For instruments Rather, they reflect the characteristics of the various
valued using internally developed valuation models and instruments held by JPMorgan Chase Bank, N.A. and the
other valuation techniques that use significant relative distribution of instruments within the range of
unobservable inputs and are therefore classified within characteristics. For example, two option contracts may have
level 3 of the fair value hierarchy, judgments used to similar levels of market risk exposure and valuation
estimate fair value are more significant than those required uncertainty, but may have significantly different implied
when estimating the fair value of instruments classified volatility levels because the option contracts have different
within levels 1 and 2. underlyings, tenors, or strike prices. The input range and
weighted average values will therefore vary from period-to-
In arriving at an estimate of fair value for an instrument
period and parameter-to-parameter based on the
within level 3, management must first determine the
characteristics of the instruments held by JPMorgan Chase
appropriate valuation model or other valuation technique to
Bank, N.A. at each balance sheet date.
use. Second, due to the lack of observability of significant
inputs, management must assess all relevant empirical data For JPMorgan Chase Bank, N.A.’s derivatives and structured
in deriving valuation inputs including transaction details, notes positions classified within level 3 at December 31,
yield curves, interest rates, prepayment speed, default 2017, interest rate correlation inputs used in estimating
rates, volatilities, correlations, equity or debt prices, fair value were concentrated towards the upper end of the
valuations of comparable instruments, foreign exchange range; equity correlation, equity-FX and equity-IR
rates and credit curves. correlation inputs were concentrated in the middle of the
range; commodity correlation inputs were concentrated in
The following table presents JPMorgan Chase Bank, N.A.’s
the middle of the range; credit correlation inputs were
primary level 3 financial instruments, the valuation
concentrated towards the lower end of the range; and the
techniques used to measure the fair value of those financial
interest rate-foreign exchange (“IR-FX”) correlation inputs
instruments, the significant unobservable inputs, the range
were concentrated towards the lower end of the range. In
of values for those inputs and, for certain instruments, the
addition, the interest rate spread volatility inputs used in
weighted averages of such inputs. While the determination
estimating fair value were distributed across the range;
to classify an instrument within level 3 is based on the
equity volatilities and commodity volatilities were
significance of the unobservable inputs to the overall fair
concentrated towards the lower end of the range; and
value measurement, level 3 financial instruments typically
forward commodity prices used in estimating the fair value
include observable components (that is, components that
of commodity derivatives were concentrated towards the
are actively quoted and can be validated to external
lower end of the range. Recovery rate, yield, prepayment
sources) in addition to the unobservable components. The
speed, conditional default rate, loss severity and price
level 1 and/or level 2 inputs are not included in the table. In
inputs used in estimating the fair value of credit derivatives
addition, JPMorgan Chase Bank, N.A. manages the risk of
were distributed across the range; and credit spreads were
the observable components of level 3 financial instruments
concentrated towards the lower end of the range.
using securities and derivative positions that are classified
within levels 1 or 2 of the fair value hierarchy.

Level 3 inputs(a)
December 31, 2017
Fair value Principal valuation
Product/Instrument (in millions) technique Unobservable inputs(g) Range of input values Weighted average
Residential mortgage-backed securities $ 1,368 Discounted cash flows Yield 3% 16% 6%
and loans(b)
Prepayment speed 0% - 13% 9%
Conditional default rate 0% - 5% 1%
Loss severity 0% - 60% 2%
Commercial mortgage-backed securities
and loans(c) 635 Market comparables Price $ 0 - $ 100 $ 94
Obligations of U.S. states and
municipalities 15 Market comparables Price $ 67 – $ 100 $ 90
Corporate debt securities 191 Market comparables Price $ 1 – $ 137 $ 83
Loans(d) 921 Market comparables Price $ 13 – $ 104 $ 87
Asset-backed securities 276 Discounted cash flows Credit spread 204bps 205bps 205bps
Prepayment speed 20% 20%
Conditional default rate 2% 2%
Loss severity 30% 30%
51 Market comparables Price $2 - $94 $ 46
Net interest rate derivatives 22 Option pricing Interest rate spread volatility 27bps - 38bps
Interest rate correlation (50)% - 98%
IR-FX correlation 60% - 70%
236 Discounted cash flows Prepayment speed 0% - 30%
Net credit derivatives (38) Discounted cash flows Credit correlation 40% - 75%
Credit spread 6bps - 1,489bps
Recovery rate 20% - 70%
Yield 1% - 20%
Prepayment speed 4% - 21%
Conditional default rate 0% - 100%
Loss severity 4% - 100%
5 Market comparables Price $ 10 - $ 98
Net foreign exchange derivatives (245) Option pricing IR-FX correlation (50)% - 70%
(196) Discounted cash flows Prepayment speed 7%
Net equity derivatives (1,887) Option pricing Equity volatility 20% - 55%
Equity correlation 0% - 85%
Equity-FX correlation (50)% - 30%
Equity-IR correlation 10% - 40%
Net commodity derivatives (648) Option pricing Forward commodity price $54 - $68 per barrel
Commodity volatility 5% - 46%
Commodity correlation (40)% - 70%
MSRs 6,030 Discounted cash flows Refer to Note 16
Other assets 350 Discounted cash flows Credit spread 40bps – 70bps 55bps
Long-term debt, short-term borrowings, 15,908 Option pricing Interest rate spread volatility 27bps – 38bps
and deposits(e)
Interest rate correlation (50)% – 98%
IR-FX correlation (50)% – 70%
Equity correlation 0% – 85%
Equity-FX correlation (50)% – 30%
Equity-IR correlation 10% – 40%
Other level 3 assets and liabilities, net(f) 163
(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) Includes U.S. government agency securities of $289 million, nonagency securities of $25 million and trading loans of $1.1 billion.
(c) Includes nonagency securities of $2 million, trading loans of $357 million and non-trading loans of $276 million.
(d) Includes trading loans of $921 million.
(e) Long-term debt, short-term borrowings and deposits include structured notes issued by JPMorgan Chase Bank, N.A. that are predominantly financial instruments containing
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 level 3 assets and liabilities that 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.

Changes in and ranges of unobservable inputs a decrease in a fair value measurement of assets valued at a
The following discussion provides a description of the premium to par and an increase in a fair value
impact on a fair value measurement of a change in each measurement of assets valued at a discount to par.
unobservable input in isolation, and the interrelationship
Prepayment speeds may vary from collateral pool to
between unobservable inputs, where relevant and
collateral pool, and are driven by the type and location of
significant. The impact of changes in inputs may not be
the underlying borrower, and the remaining tenor of the
independent, as a change in one unobservable input may
obligation as well as the level and type (e.g., fixed or
give rise to a change in another unobservable input. Where
floating) of interest rate being paid by the borrower.
relationships do exist between two unobservable inputs,
Typically collateral pools with higher borrower credit quality
those relationships are discussed below. Relationships may
have a higher prepayment rate than those with lower
also exist between observable and unobservable inputs (for
borrower credit quality, all other factors being equal.
example, as observable interest rates rise, unobservable
prepayment rates decline); such relationships have not Conditional default rate – The conditional default rate is a
been included in the discussion below. In addition, for each measure of the reduction in the outstanding collateral
of the individual relationships described below, the inverse balance underlying a collateralized obligation as a result of
relationship would also generally apply. defaults. While there is typically no direct relationship
between conditional default rates and prepayment speeds,
The following discussion also provides a description of
collateralized obligations for which the underlying collateral
attributes of the underlying instruments and external
has high prepayment speeds will tend to have lower
market factors that affect the range of inputs used in the
conditional default rates. An increase in conditional default
valuation of JPMorgan Chase Bank, N.A.’s positions.
rates would generally be accompanied by an increase in loss
Yield – The yield of an asset is the interest rate used to severity and an increase in credit spreads. An increase in
discount future cash flows in a discounted cash flow the conditional default rate, in isolation, would result in a
calculation. An increase in the yield, in isolation, would decrease in a fair value measurement. Conditional default
result in a decrease in a fair value measurement. rates reflect the quality of the collateral underlying a
securitization and the structure of the securitization itself.
Credit spread – The credit spread is the amount of
Based on the types of securities owned in JPMorgan Chase
additional annualized return over the market interest rate
Bank, N.A.’s market-making portfolios, conditional default
that a market participant would demand for taking
rates are most typically at the lower end of the range
exposure to the credit risk of an instrument. The credit
presented.
spread for an instrument forms part of the discount rate
used in a discounted cash flow calculation. Generally, an Loss severity – The loss severity (the inverse concept is the
increase in the credit spread would result in a decrease in a recovery rate) is the expected amount of future realized
fair value measurement. losses resulting from the ultimate liquidation of a particular
loan, expressed as the net amount of loss relative to the
The yield and the credit spread of a particular mortgage-
outstanding loan balance. An increase in loss severity is
backed security primarily reflect the risk inherent in the
generally accompanied by an increase in conditional default
instrument. The yield is also impacted by the absolute level
rates. An increase in the loss severity, in isolation, would
of the coupon paid by the instrument (which may not
result in a decrease in a fair value measurement.
correspond directly to the level of inherent risk). Therefore,
the range of yield and credit spreads reflects the range of The loss severity applied in valuing a mortgage-backed
risk inherent in various instruments owned by JPMorgan security investment depends on factors relating to the
Chase Bank, N.A. The risk inherent in mortgage-backed underlying mortgages, including the LTV ratio, the nature of
securities is driven by the subordination of the security the lender’s lien on the property and other instrument-
being valued and the characteristics of the underlying specific factors.
mortgages within the collateralized pool, including
Correlation – Correlation is a measure of the relationship
borrower FICO scores, loan-to-value (“LTV”) ratios for
between the movements of two variables (e.g., how the
residential mortgages and the nature of the property and/
change in one variable influences the change in the other).
or any tenants for commercial mortgages. For corporate
Correlation is a pricing input for a derivative product where
debt securities, obligations of U.S. states and municipalities
the payoff is driven by one or more underlying risks.
and other similar instruments, credit spreads reflect the
Correlation inputs are related to the type of derivative (e.g.,
credit quality of the obligor and the tenor of the obligation.
interest rate, credit, equity, foreign exchange and
Prepayment speed – The prepayment speed is a measure of commodity) due to the nature of the underlying risks. When
the voluntary unscheduled principal repayments of a parameters are positively correlated, an increase in one
prepayable obligation in a collateralized pool. Prepayment parameter will result in an increase in the other parameter.
speeds generally decline as borrower delinquencies rise. An When parameters are negatively correlated, an increase in
increase in prepayment speeds, in isolation, would result in one parameter will result in a decrease in the other

parameter. An increase in correlation can result in an Changes in level 3 recurring fair value measurements
increase or a decrease in a fair value measurement. Given a The following tables include a rollforward of the
short correlation position, an increase in correlation, in Consolidated balance sheets amounts (including changes in
isolation, would generally result in a decrease in a fair value fair value) for financial instruments classified by JPMorgan
measurement. The range of correlation inputs between Chase Bank, N.A. within level 3 of the fair value hierarchy
risks within the same asset class are generally narrower for the years ended December 31, 2017, 2016 and 2015.
than those between underlying risks across asset classes. In When a determination is made to classify a financial
addition, the ranges of credit correlation inputs tend to be instrument within level 3, the determination is based on the
narrower than those affecting other asset classes. significance of the unobservable parameters to the overall
fair value measurement. However, level 3 financial
The level of correlation used in the valuation of derivatives
instruments typically include, in addition to the
with multiple underlying risks depends on a number of
unobservable or level 3 components, observable
factors including the nature of those risks. For example, the
components (that is, components that are actively quoted
correlation between two credit risk exposures would be
and can be validated to external sources); accordingly, the
different than that between two interest rate risk
gains and losses in the table below include changes in fair
exposures. Similarly, the tenor of the transaction may also
value due in part to observable factors that are part of the
impact the correlation input, as the relationship between
valuation methodology. Also, JPMorgan Chase Bank, N.A.
the underlying risks may be different over different time
risk-manages the observable components of level 3
periods. Furthermore, correlation levels are very much
financial instruments using securities and derivative
dependent on market conditions and could have a relatively
positions that are classified within level 1 or 2 of the fair
wide range of levels within or across asset classes over
value hierarchy; as these level 1 and level 2 risk
time, particularly in volatile market conditions.
management instruments are not included below, the gains
Volatility – Volatility is a measure of the variability in or losses in the following tables do not reflect the effect of
possible returns for an instrument, parameter or market JPMorgan Chase Bank, N.A.’s risk management activities
index given how much the particular instrument, parameter related to such level 3 instruments.
or index changes in value over time. Volatility is a pricing
input for options, including equity options, commodity
options, and interest rate options. Generally, the higher the
volatility of the underlying, the riskier the instrument. 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.

Fair value measurements using significant unobservable inputs

Change in
unrealized
gains/(losses)
Total related to
Fair value realized/ Fair financial
Year ended at unrealized Transfers Transfers value at instruments held
December 31, 2017 January gains/ into (out of) Dec. 31, at Dec. 31,
(in millions) 1, 2017 (losses) Purchases(f) Sales Settlements(g) level 3(h) level 3(h) 2017 2017
Assets:
Trading assets:
Debt instruments:
U.S. government agencies $ 369 $ (11) $ 155 $ (163) $ (61) $ — $ — $ 289 $ (17)
Residential – nonagency 11 3 5 — (4) 18 (9) 24 4
Commercial – nonagency 6 5 1 (5) (9) 4 — 2 —
Total mortgage-backed
securities 386 (3) 161 (168) (74) 22 (9) 315 (13)
U.S. Treasury and
government agencies — — — — — 1 — 1 —
Obligations of U.S. states
and municipalities 19 1 — — (5) — — 15 1
Non-U.S. government debt
securities 46 — 560 (519) — 62 (71) 78 —
Corporate debt securities 318 13 514 (472) (121) 101 (162) 191 5
Loans 4,325 225 2,172 (2,613) (1,071) 760 (1,466) 2,332 44
Asset-backed securities 70 23 243 (251) (14) 25 (45) 51 6
Total debt instruments 5,164 259 3,650 (4,023) (1,285) 971 (1,753) 2,983 43
Equity securities 89 33 51 (44) (5) 16 (19) 121 23
Other 281 133 151 (51) (205) 60 (19) 350 110
Total trading assets – debt
and equity instruments 5,534 425 (c) 3,852 (4,118) (1,495) 1,047 (1,791) 3,454 176 (c)
Net derivative receivables: (a)
Interest rate 1,001 (87) 142 (194) (494) 41 (151) 258 (688)
Credit 96 (170) 5 (6) — 81 (39) (33) 7
Foreign exchange (1,531) 1 12 (23) 893 (33) 240 (441) 9
Equity (1,488) (243) 2,106 (1,162) (943) 26 (183) (1,887) 172
Commodity 35 (329) — — (375) 39 (18) (648) 22
Total net derivative
receivables (1,887) (828) (c) 2,265 (1,385) (919) 154 (151) (2,751) (478) (c)
Asset-backed securities 663 15 — (50) (352) — — 276 14
Other 1 — — — — — — 1 —
Total available-for-sale
securities 664 15 (d)
— (50) (352) — — 277 14 (d)
Loans 568 34 (c) 1 (26) (301) — — 276 3 (c)
Mortgage servicing rights 6,096 (232) (e) 1,103 (140) (797) — — 6,030 (232) (e)
Other assets 41 9 (c) — (13) (37) — — — — (c)

Change in
unrealized
(gains)/losses
Total related to
Fair value realized/ Fair financial
Year ended at unrealized Transfers Transfers value at instruments held
December 31, 2017 January (gains)/ into (out of) Dec. 31, at Dec. 31,
(in millions) 1, 2017 losses Purchases Sales Issuances Settlements(g) level 3(h) level 3(h) 2017 2017
Liabilities:(b)
Deposits $ 2,121 $ 169 (c)(i) $ — $ — $ 2,990 $ (287) $ 12 $ (855) $ 4,150 $ 192 (c)(i)
Short-term borrowings 1,019 102 (c)(i) — — 3,019 (2,488) 147 (195) 1,604 109 (c)(i)
Trading liabilities – debt and

equity instruments 36 (2) (c) (43) 45 — 1 — — 37 — (c)
Beneficial interests issued by

consolidated VIEs — — (c) — — — — — — — — (c)
Long-term debt 7,662 1,080 (c)(i) — — 7,613 (7,213) 1,398 (386) 10,154 761 (c)(i)

Change in
unrealized
gains/(losses)
Total related to
Fair realized/ Fair financial
Year ended value at unrealized Transfers Transfers value at instruments held
Assets:
Trading assets:
Debt instruments:
Residential – nonagency 19 (4) 6 (6) (3) — (1) 11 (3)
Commercial – nonagency 6 (1) 2 (1) — — — 6 1
securities 689 (25) 86 (253) (110) — (1) 386 (38)
and municipalities 26 — — — (7) — 19 —
securities 74 2 108 (125) (2) 18 (29) 46 (7)
Corporate debt securities 482 (28) 457 (342) (177) 128 (202) 318 (21)
Loans 5,364 (351) 2,101 (1,949) (1,074) 1,010 (776) 4,325 (184)
Asset-backed securities 78 20 297 (262) (52) — (11) 70 7
Total debt instruments 6,713 (382) 3,049 (2,931) (1,422) 1,156 (1,019) 5,164 (243)
Equity securities 88 — 30 (37) (2) 10 — 89 (3)
Other 342 212 610 (392) (413) 24 (102) 281 30
and equity instruments 7,143 (170) (c) 3,689 (3,360) (1,837) 1,190 (1,121) 5,534 (216) (c)
Net derivative receivables:(a)

Interest rate 605 771 319 (183) (722) (12) 223 1,001 (292)
Credit 535 (737) 5 (4) 231 30 36 96 7
Foreign exchange (898) 87 64 (124) (649) (41) 30 (1,531) (356)
Equity (1,223) (261) 2,720 (2,370) (12) (106) (236) (1,488) (114)
Commodity (1,324) 767 6 — 604 1 (19) 35 464
receivables (2,305) 627 (c) 3,114 (2,681) (548) (128) 34 (1,887) (291) (c)
Asset-backed securities 779 2 — — (118) — — 663 2
Other 1 — — — — — — 1 —
securities 780 2 (d)
— — (118) — 664 2 (d)
Loans 1,408 (48) (c) 259 — (738) — (313) 568 (42) (c)
Mortgage servicing rights 6,608 (163) (e) 679 (109) (919) — — 6,096 (163) (e)
Other assets 5,670 (13) (c) 30 (3,331) (2,316) 1 — 41 (2) (c)
Change in
unrealized
(gains)/losses
Total related to
(in millions) 1, 2016 losses Purchases Sales issuances Settlements(g) level 3(h) level 3(h) 2016 2016
Liabilities: (b)
Deposits $ 2,970 $ (11) (c) $ 1 $ — $ 1,354 $ (1,289) $ (904) $ 2,121 $ (178) (c)
Short-term borrowings 636 (232) (c) — — 1,712 (1,156) 117 (58) 1,019 (57) (c)

equity instruments 48 (22) (c) (1) 24 — (10) 1 (4) 36 (1) (c)

consolidated VIEs — (11) (c) — — 157 (146) — — — — (c)
Long-term debt 6,783 81 (c)(j) — — 5,066 (j) (3,658) 372 (982) 7,662 304 (c)(j)

Change in
unrealized
gains/(losses)
Total related to
Assets:
Trading assets:
Debt instruments:
Residential – nonagency 438 (24) 139 (254) (6) — (274) 19 (4)
Commercial – nonagency 217 (7) 43 (91) (16) — (140) 6 1
securities 1,559 (66) 302 (543) (149) — (414) 689 (40)
and municipalities 59 — — — (5) 5 (33) 26 —
securities 302 9 205 (123) (64) 16 (271) 74 (15)
Corporate debt securities 2,756 (63) 1,103 (1,064) (89) 165 (2,326) 482 (3)
Loans 9,830 (254) 2,995 (4,149) (1,189) 465 (2,334) 5,364 (128)
Asset-backed securities 374 (29) 121 (294) (14) — (80) 78 (12)
Total debt instruments 14,880 (403) 4,726 (6,173) (1,510) 651 (5,458) 6,713 (198)
Equity securities 73 22 52 (35) (28) 13 (9) 88 33
Other 1,184 110 1,642 (1,476) (234) 28 (912) 342 99
and equity instruments 16,137 (271) (c) 6,420 (7,684) (1,772) 692 (6,379) 7,143 (66) (c)
Net derivative receivables: (a)
Interest rate 335 1,146 545 (245) (709) 12 (479) 605 218
Credit 185 110 145 (133) 129 28 71 535 256
Foreign exchange (761) 627 40 (137) (277) 52 (442) (898) 151
Equity (560) 649 3,021 (3,889) (28) 342 (758) (1,223) 74
Commodity (805) (893) (245) (12) 657 (13) (13) (1,324) (780)
receivables (1,606) 1,639 (c) 3,506 (4,416) (228) 421 (1,621) (2,305) (81) (c)
Asset-backed securities 833 (22) 48 (20) (60) — — 779 (28)
Other 129 — — — (29) — (99) 1 —
securities 962 (22) (d)
48 (20) (89) — (99) 780 (28) (d)
Loans 2,213 (143) (c) 1,170 — (985) — (847) 1,408 (40) (c)
Mortgage servicing rights 7,436 (405) (e) 985 (486) (922) — — 6,608 (405) (e)
Other assets 4,593 (2) (c) 19 (3,334) 4,394 — — 5,670 (4) (c)
Change in
unrealized
(gains)/losses
Total related to
(in millions) 1, 2015 losses Purchases Sales Issuances Settlements(g) level 3(h) level 3(h) 2015 2015
Liabilities: (b)
Deposits $ 2,883 $ (16) (c) $ 1 $ — $ 1,945 $ (830) $ — $ (1,013) $ 2,970 $ (14) (c)
Short-term borrowings 1,426 (682) (c) — — 3,078 (2,753) 131 (564) 636 (48) (c)

equity instruments 51 15 (c) (141) 134 — (15) 7 (3) 48 (5) (c)

consolidated VIEs 18 (17) (c) — — 208 (209) — — — (c)
(c) (c)
Long-term debt 6,970 (414) (58) — 6,373 (5,082) 183 (1,189) 6,783 319
(a) All level 3 derivatives are presented on a net basis, irrespective of underlying counterparty.
(b) Level 3 liabilities as a percentage of total JPMorgan Chase Bank, N.A. liabilities accounted for at fair value (including liabilities measured at fair value on a nonrecurring basis)
were 19%, 14% and 15% at December 31, 2017, 2016 and 2015, respectively.

(c) Predominantly reported in principal transactions revenue, except for changes in fair value for consumer & community banking business 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, as well as other-than-temporary impairment (“OTTI”) losses that are recorded in earnings, are reported in securities gains. Unrealized
gains/(losses) are reported in OCI. There were no realized gains/(losses) and foreign exchange hedge accounting adjustments recorded in income on AFS securities for the years
ended December 31, 2017, 2016 and 2015. Unrealized gains/(losses) recorded on AFS securities in OCI were $15 million, $2 million and $(25) million for the years ended
December 31, 2017, 2016 and 2015, respectively.
(e) Changes in fair value for the consumer & community banking business’s MSRs are reported in mortgage fees and related income.
(f) Loan originations are included in purchases.
(g) Includes financial assets and liabilities that have matured, been partially or fully repaid, impacts of modifications, and deconsolidation associated with beneficial interests in VIEs
and other items.
(h) All transfers into and/or out of level 3 are based on changes in the observability of the valuation inputs and are assumed to occur at the beginning of the interim
reporting period in which they occur.
(i) 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.
Unrealized loss were $6 million for the year ended December 31, 2017. There were no realized gains for the year ended December 31, 2017.
(j) The prior period amounts have been revised to conform with the current period presentation.
Level 3 analysis
Consolidated balance sheets changes Gains and losses
Level 3 assets (including assets measured at fair value on a The following describes significant components of total
nonrecurring basis) were 1.0% of total JPMorgan Chase realized/unrealized gains/(losses) for instruments
Bank, N.A. assets and 4.5% of total assets measured at fair measured at fair value on a recurring basis for the years
value at December 31, 2017, compared with 1.1% and ended December 31, 2017, 2016 and 2015. For further
4.5%, respectively, at December 31, 2016. The following information on these instruments, see Changes in level 3
describes significant changes to level 3 assets since recurring fair value measurements rollforward tables on
December 31, 2016, for those items measured at fair value pages 31–35.
on a recurring basis. For further information on changes
2017
impacting items measured at fair value on a nonrecurring
• 1.3 billion of net losses on liabilities largely driven by
basis, see Assets and liabilities measured at fair value on a
market movements in long-term debt
nonrecurring basis on page 36.
2016
For the year ended December 31, 2017
• There were no individually significant movements for the
Level 3 assets were $20.4 billion at December 31, 2017,
year ended December 31, 2016
reflecting a decrease of $886 million from December 31,
2016, largely due to the following: 2015
• $1.1 billion increase in principal transactions on • $2.4 billion of net gains in interest rate, foreign
derivative receivables exchange and equity derivative receivables largely due
to market movements; partially offset by losses on
• $2.1 billion decrease in trading assets — debt and equity commodity derivatives due to market movements
instruments was driven by a decrease of $2.0 billion in
trading loans due to settlements and transfers • $1.1 billion of net gains in liabilities due to market
movements

Assets and liabilities measured at fair value on a nonrecurring basis

The following tables present the assets reported on a nonrecurring basis at fair value as of December 31, 2017 and 2016, by
major product category and fair value hierarchy.
Total fair
December 31, 2017 (in millions) Level 1 Level 2 Level 3 value
Loans $ — $ 25 $ 596 (a)
$ 621
Other assets — 228 181 409
Total assets measured at fair value on a nonrecurring basis — 253 777 (a)
1,030

Total fair
December 31, 2016 (in millions) Level 1 Level 2 Level 3 value
Loans $ — $ 730 $ 590 $ 1,320
Other assets — 3 228 231
Total assets measured at fair value on a nonrecurring basis — 733 818 1,551
(a) Of the $777 million in level 3 assets measured at fair value on a nonrecurring basis as of December 31, 2017, $442 million related to residential real estate loans carried at the
net realizable value of the underlying collateral (e.g., collateral-dependent loans and other loans charged off in accordance with regulatory guidance). These amounts are
classified as level 3 as they are valued using a broker’s price opinion and discounted based upon JPMorgan Chase Bank, N.A.’s experience with actual liquidation values. These
discounts to the broker price opinions ranged from 13% to 48% with a weighted average of 27%.
There were no material liabilities measured at fair value on a nonrecurring basis at December 31, 2017 and 2016.
Nonrecurring fair value changes

The following table presents the total change in value of requirements. Accordingly, the fair value disclosures
assets and liabilities for which a fair value adjustment has provided in the following table include only a partial
been recognized for the years ended December 31, 2017, estimate of the fair value of JPMorgan Chase Bank, N.A.’s
2016 and 2015, related to financial instruments held at assets and liabilities. For example, JPMorgan Chase Bank,
those dates. N.A. has developed long-term relationships with its
customers through its deposit base and credit card
December 31, (in millions) 2017 2016 2015
accounts, commonly referred to as core deposit intangibles
Loans $ (159) $ (209) $ (225) and credit card relationships. In the opinion of
Other Assets (141) 35 (61) management, these items, in the aggregate, add significant
Accounts payable and other value to JPMorgan Chase Bank, N.A., but their fair value is
liabilities (1) — (8)
not disclosed in this Note.
Total nonrecurring fair value
gains/(losses) $ (301) $ (174) $ (294) Financial instruments for which carrying value approximates
fair value
For further information about the measurement of impaired Certain financial instruments that are not carried at fair
collateral-dependent loans, and other loans where the value on the Consolidated balance sheets are carried at
carrying value is based on the fair value of the underlying amounts that approximate fair value, due to their short-
collateral (e.g., residential mortgage loans charged off in term nature and generally negligible credit risk. These
accordance with regulatory guidance), see Note 13. instruments include cash and due from banks, deposits with
Additional disclosures about the fair value of financial banks, federal funds sold, securities purchased under resale
instruments that are not carried on the Consolidated agreements and securities borrowed, short-term
balance sheets at fair value receivables and accrued interest receivable, short-term
U.S. GAAP requires disclosure of the estimated fair value of borrowings, federal funds purchased, securities loaned and
certain financial instruments, and the methods and sold under repurchase agreements, accounts payable, and
significant assumptions used to estimate their fair value. accrued liabilities. In addition, U.S. GAAP requires that the
Financial instruments within the scope of these disclosure fair value of deposit liabilities with no stated maturity (i.e.,
requirements are included in the following table. However, demand, savings and certain money market deposits) be
certain financial instruments and all nonfinancial equal to their carrying value; recognition of the inherent
instruments are excluded from the scope of these disclosure 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, 2017 and 2016, 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. For additional information regarding the financial
instruments within the scope of this disclosure, and the methods and significant assumptions used to estimate their fair value,
see pages 21–24 of this Note.
December 31, 2017 December 31, 2016
Estimated fair value hierarchy Estimated fair value hierarchy
Total Total
Carrying estimated Carrying estimated
(in billions) value Level 1 Level 2 Level 3 fair value value Level 1 Level 2 Level 3 fair value
Financial assets
Cash and due from banks $ 21.9 $ 21.9 $ — $ — $ 21.9 $ 21.2 $ 21.2 $ — $ — $ 21.2
Deposits with banks 440.0 386.5 53.5 — 440.0 388.7 352.4 36.3 — 388.7
Accrued interest and accounts
receivable 47.3 — 47.3 — 47.3 40.8 — 40.7 — 40.7
Federal funds sold and
securities purchased under
resale agreements 152.3 — 152.3 — 152.3 167.3 — 167.1 0.2 167.3
Securities borrowed 36.0 — 36.0 — 36.0 32.5 — 32.5 — 32.5
Securities, held-to-maturity 47.7 — 48.7 — 48.7 50.1 — 50.9 — 50.9
Loans, net of allowance for
loan losses(a)(b) 813.6 — 219.3 597.5 816.8 779.2 — 29.3 744.9 774.2
Other 48.0 — 39.3 9.2 48.5 48.4 — 39.2 9.0 48.2
Financial liabilities
Deposits $ 1,513.5 $ — $ 1,513.6 $ — $ 1,513.6 $ 1,466.2 $ — $ 1,466.4 $ — $ 1,466.4
Federal funds purchased and
securities loaned or sold
under repurchase agreements 91.3 — 91.3 — 91.3 74.4 — 74.4 — 74.4
Short-term borrowings 3.4 — 3.2 0.2 3.4 6.6 — 6.6 — 6.6
Accounts payable and other
liabilities 61.8 — 58.9 2.7 61.6 52.7 — 49.7 3.0 52.7
consolidated VIEs 4.9 — 4.9 — 4.9 7.5 — 7.4 — 7.4
Long-term debt and junior
subordinated deferrable
interest debentures 76.3 — 72.8 2.7 75.5 92.2 — 90.1 2.0 92.1
(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. The
difference between the estimated fair value and carrying value of a financial asset or liability is the result of the different methodologies used to
determine fair value as compared with carrying value. For example, credit losses are estimated for a financial asset’s remaining life in a fair value
calculation but are estimated for a loss emergence period in the allowance for loan loss calculation; future loan income (interest and fees) is
incorporated in a fair value calculation but is generally not considered in the allowance for loan losses. For a further discussion of JPMorgan Chase Bank,
N.A.’s methodologies for estimating the fair value of loans and lending-related commitments, see Valuation hierarchy on pages 21–24.
(b) For the year ended December 31, 2017, JPMorgan Chase Bank, N.A. transferred certain residential mortgage loans from Level 3 to Level 2 as a result of an
increase in observability.

The majority of JPMorgan Chase Bank, N.A.’s lending-related commitments are not carried at fair value on a recurring basis on
the Consolidated balance sheets. The carrying value of the wholesale allowance for lending-related commitments and the
estimated fair value of these wholesale lending-related commitments were as follows for the periods indicated.
December 31, 2017 December 31, 2016
Estimated fair value hierarchy Estimated fair value hierarchy
Total Total
Carrying estimated Carrying estimated
(in billions) value(a) Level 1 Level 2 Level 3 fair value value(a) Level 1 Level 2 Level 3 fair value
Wholesale lending-
related commitments $ 1.1 $ — $ — $ 1.6 $ 1.6 $ 1.1 $ — $ — $ 2.1 $ 2.1
(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.
JPMorgan Chase Bank, N.A. does not estimate the fair value cases as permitted by law, without notice. For a further
of consumer lending-related commitments. In many cases, discussion of the valuation of lending-related commitments,
JPMorgan Chase Bank, N.A. can reduce or cancel these see page 22 of this Note.
commitments by providing the borrower notice or, in some
Note 4 – Fair value option

The fair value option provides an option to elect fair value JPMorgan Chase Bank, N.A.’s election of fair value includes
as an alternative measurement for selected financial assets, the following instruments:
financial liabilities, unrecognized firm commitments, and
• Loans purchased or originated as part of securitization
written loan commitments.
warehousing activity, subject to bifurcation accounting,
JPMorgan Chase Bank, N.A. has elected to measure certain or managed on a fair value basis, including lending-
instruments at fair value for several reasons including to related commitments
mitigate income statement volatility caused by the • Certain securities financing arrangements with an
differences between the measurement basis of elected embedded derivative and/or a maturity of greater than
instruments (e.g., certain instruments elected were one year
previously accounted for on an accrual basis) and the
associated risk management arrangements that are • Owned beneficial interests in securitized financial assets
accounted for on a fair value basis, as well as to better that contain embedded credit derivatives, which would
reflect those instruments that are managed on a fair value otherwise be required to be separately accounted for as
basis. a derivative instrument
• Structured notes, which are predominantly financial
instruments that contain embedded derivatives, that are
issued as part of the corporate & investment banking
business’s client-driven activities
• Certain long-term beneficial interests issued by the
corporate & investment banking business’s consolidated
securitization trusts where the underlying assets are
carried at fair value

Changes in fair value under the fair value option election
The following table presents the changes in fair value included in the Consolidated statements of income for the years ended
December 31, 2017, 2016 and 2015, 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.
2017 2016 2015

Total Total Total
changes changes changes
in fair in fair in fair
Principal All other value Principal All other value Principal All other value
December 31, (in millions) transactions income recorded transactions income recorded transactions income recorded
Federal funds sold and securities
purchased under resale
agreements $ 22 $ — $ 22 $ (56) $ — $ (56) $ (32) $ — $ (32)
Securities borrowed 50 — 50 1 — 1 (6) — (6)
Trading assets:
Debt and equity instruments,
excluding loans 1,851 2 (c) 1,853 144 — 144 603 — 603
Loans reported as trading
assets:
Changes in instrument-
specific credit risk 298 14 (c) 312 423 43 (c) 466 101 41 (c) 142
Other changes in fair value 216 747 (c) 963 68 684 (c) 752 200 818 (c) 1,018
Loans:
Changes in instrument-specific
credit risk (1) — (1) 13 — 13 37 — 37
Other changes in fair value (12) 3 (c) (9) (7) — (7) 4 — 4
Other assets — 3 (d)
3 (6) — (d)
(6) (2) 5 (d)
3
Deposits(a) (546) — (546) (165) — (165) 94 — 94
Federal funds purchased and
securities loaned or sold under
repurchase agreements (38) — (38) 12 — 12 6 — 6
Short-term borrowings(a) (1,186) — (1,186) 21 — 21 194 — 194
Trading liabilities (1) — (1) 6 — 6 (20) — (20)
consolidated VIEs — — — — — — 14 — 14
Long-term debt(a)(b) (969) — (969) (632) — (632) 1,052 — 1,052
(a) Unrealized gains/(losses) due to instrument-specific credit risk (DVA) for liabilities for which the fair value option has been elected is recorded in OCI,
while realized gains/(losses) are recorded in principal transactions revenue. DVA for 2015 was included in principal transactions revenue, and includes the
impact of JPMorgan Chase Bank, N.A.’s own credit quality on the inception value of liabilities as well as the impact of changes in JPMorgan Chase Bank,
N.A.’s own credit quality subsequent to issuance. See Notes 3 and 21 for further information. Realized gains/(losses) due to instrument-specific credit risk
recorded in principal transaction revenue were not material for the years ended December 31, 2017 and 2016.
(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.

Determination of instrument-specific credit risk for items • Long-term debt: Changes in value attributable to
for which a fair value election was made instrument-specific credit risk were derived principally
The following describes how the gains and losses that are from observable changes in JPMorgan Chase Bank,
attributable to changes in instrument-specific credit risk, N.A.’s credit spread.
were determined. • Resale and repurchase agreements, securities borrowed
• Loans and lending-related commitments: For floating- agreements and securities lending agreements:
rate instruments, all changes in value are attributed to Generally, for these types of agreements, there is a
instrument-specific credit risk. For fixed-rate requirement that collateral be maintained with a market
instruments, an allocation of the changes in value for the value equal to or in excess of the principal amount
period is made between those changes in value that are loaned; as a result, there would be no adjustment or an
interest rate-related and changes in value that are immaterial adjustment for instrument-specific credit risk
credit-related. Allocations are generally based on an related to these agreements.
analysis of borrower-specific credit spread and recovery
information, where available, or benchmarking to similar
entities or industries.
Difference between aggregate fair value and aggregate remaining contractual principal balance outstanding
The following table reflects the difference between the aggregate fair value and the aggregate remaining contractual principal
balance outstanding as of December 31, 2017 and 2016, for loans, long-term debt and long-term beneficial interests for
which the fair value option has been elected.
2017 2016
Fair value Fair value
over/ over/
(under) (under)
Contractual contractual Contractual contractual
principal principal principal principal
December 31, (in millions) outstanding Fair value outstanding outstanding Fair value outstanding
Loans(a)
Nonaccrual loans
Loans reported as trading assets $ 2,703 $ 1,073 $ (1,630) $ 1,986 $ 477 $ (1,509)
Loans 39 — (39) — — —
Subtotal 2,742 1,073 (1,669) 1,986 477 (1,509)
All other performing loans
Loans reported as trading assets 36,637 36,338 (299) 33,736 32,606 (1,130)
Loans 2,539 2,508 (31) 2,259 2,228 (31)
Total loans $ 41,918 $ 39,919 $ (1,999) $ 37,981 $ 35,311 $ (2,670)
Long-term debt
Principal-protected debt $ 6,253 (c) $ 6,024 $ (229) $ 3,577 (c) $ 3,280 $ (297)
Nonprincipal-protected debt (b)
— 15,377 NA NA 11,656 NA
Total long-term debt NA $ 21,401 NA NA $ 14,936 NA
(a) There were no performing loans that were ninety days or more past due as of December 31, 2017 and 2016.
(b) Remaining contractual principal is not applicable to nonprincipal-protected notes. Unlike principal-protected structured notes, for which JPMorgan Chase
Bank, N.A. is obligated to return a stated amount of principal at the maturity of the note, nonprincipal-protected structured notes do not obligate
JPMorgan Chase Bank, N.A. to return a stated amount of principal at maturity, but 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 JPMorgan Chase Bank, N.A. as issuer for both
nonprincipal-protected and principal protected notes.
(c) Where JPMorgan Chase Bank, N.A. 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 JPMorgan Chase Bank, N.A.’s next call date.
At December 31, 2017 and 2016, the contractual amount of lending-related commitments for which the fair value option was
elected was $7.4 billion and $4.6 billion, respectively, with a corresponding fair value of $(82) million and $(131) million,
respectively. For further information regarding off-balance sheet lending-related financial instruments, see Note 25.

Note 5 – Credit risk concentrations
Concentrations of credit risk arise when a number of clients, In JPMorgan Chase Bank, N.A.’s consumer portfolio,
counterparties or customers are engaged in similar business concentrations are evaluated primarily by product and by
activities or activities in the same geographic region, or when U.S. geographic region, with a key focus on trends and
they have similar economic features that would cause their concentrations at the portfolio level, where potential credit
ability to meet contractual obligations to be similarly affected risk concentrations can be remedied through changes in
by changes in economic conditions. underwriting policies and portfolio guidelines. In the
JPMorgan Chase Bank, N.A. regularly monitors various wholesale portfolio, credit risk concentrations are evaluated
segments of its credit portfolios to assess potential credit primarily by industry and monitored regularly on both an
risk concentrations and to obtain additional collateral when aggregate portfolio level and on an individual client or
counterparty basis. JPMorgan Chase Bank, N.A.’s wholesale
deemed necessary and permitted under JPMorgan Chase
exposure is managed through loan syndications and
Bank, N.A.’s agreements. Senior management is significantly
participations, loan sales, securitizations, credit derivatives,
involved in the credit approval and review process, and risk
master netting agreements, collateral and other risk-
levels are adjusted as needed to reflect JPMorgan Chase reduction techniques. For additional information on loans,
Bank, N.A.’s risk appetite. see Note 13.
JPMorgan Chase Bank, N.A. does not believe that its
exposure to any particular loan product (e.g., option
adjustable rate mortgages (“ARMs”)), or industry segment
(e.g., real estate), or its exposure to residential real estate
loans with high LTV ratios, results in a significant
concentration of credit risk.
Terms of loan products and collateral coverage are included
in JPMorgan Chase Bank, N.A.’s assessment when extending
credit and establishing its allowance for loan losses.

The table below presents both on–balance sheet and off–balance sheet consumer and wholesale-related credit exposure by
JPMorgan Chase Bank, N.A.’s three credit portfolio segments as of December 31, 2017 and 2016.
In 2017 JPMorgan Chase Bank, N.A. revised its methodology for the assignment of industry classifications, to better monitor
and manage concentrations. This largely resulted in the re-assignment of holding companies from Other to the industry of risk
category based on the primary business activity of the holding company's underlying entities. In the tables and industry
discussions below, the prior period amounts have been revised to conform with the current period presentation.
2017 2016
Credit On-balance sheet Off-balance Credit On-balance sheet Off-balance
December 31, (in millions) exposure(f) Loans Derivatives sheet(g) exposure Loans Derivatives sheet(g)
(h)
Total consumer, excluding credit card $ 421,198 $ 372,645 $ — $ 48,553 $ 418,059 $ 364,598 $ — $ 53,461
Total credit card 53,162 41,035 — 12,127 47,076 35,878 — 11,198
(h)
Total consumer 474,360 413,680 — 60,680 465,135 400,476 — 64,659
Wholesale-related(a)
Real Estate 139,403 113,642 153 25,608 134,179 105,796 204 28,179
Consumer & Retail 87,651 31,016 1,114 55,521 84,609 29,801 1,082 53,726
Technology, Media & Telecommunications 59,246 13,663 2,265 43,318 63,296 14,061 1,292 47,943
Healthcare 55,341 15,698 2,110 37,533 48,829 14,906 2,303 31,620
Industrials 55,262 18,154 1,160 35,948 55,726 17,288 1,658 36,780
Banks & Finance Cos 54,021 30,880 6,784 16,357 54,808 27,714 13,657 13,437
Oil & Gas 41,023 12,493 1,561 26,969 40,243 13,147 1,860 25,236
Asset Managers 31,801 11,326 7,707 12,768 31,671 10,093 10,646 10,932
Utilities 28,859 6,083 1,806 20,970 29,536 7,061 969 21,506
State & Municipal Govt(b) 27,828 11,407 2,810 13,611 27,387 11,518 2,118 13,751
Central Govt 19,129 3,375 13,884 1,870 20,346 3,964 14,173 2,209
Chemicals & Plastics 15,934 5,654 197 10,083 15,043 5,292 271 9,480
Transportation 15,776 6,714 975 8,087 19,006 8,971 751 9,284
Automotive 14,820 4,903 342 9,575 16,736 4,964 1,196 10,576
Metals & Mining 14,160 4,728 691 8,741 13,402 4,349 436 8,617
Insurance 14,087 1,411 2,802 9,874 13,505 1,119 3,377 9,009
Securities Firms 4,366 1,679 1,680 1,007 4,055 1,300 1,913 842
Financial Markets Infrastructure 4,073 351 2,536 1,186 4,878 347 2,461 2,070
All other(c) 148,030 113,749 4,048 30,233 137,756 105,441 3,551 28,764
Subtotal 830,810 406,926 54,625 369,259 815,011 387,132 63,918 363,961
Loans held-for-sale and loans at fair value 5,607 5,607 — — 4,511 4,511 — —
Receivables from customers and other(d) 1,635 — — — 1,197 — — —
Total wholesale-related 838,052 412,533 54,625 369,259 820,719 391,643 63,918 363,961
(h)
Total exposure(e)(f) $1,312,412 $ 826,213 $ 54,625 $ 429,939 $1,285,854 $ 792,119 $ 63,918 $ 428,620
(a) The industry rankings presented in the table as of December 31, 2016, are based on the industry rankings of the corresponding exposures at December 31, 2017,
not actual rankings of such exposures at December 31, 2016.
(b) In addition to the credit risk exposure to states and municipal governments (both U.S. and non-U.S.) at December 31, 2017 and 2016, noted above, JPMorgan
Chase Bank, N.A. held: $4.3 billion and $3.9 billion, respectively, of trading securities; $30.2 billion and $28.9 billion, respectively, of AFS securities; and 14.4
billion and $14.5 billion, respectively, of HTM securities, issued by U.S. state and municipal governments. For further information, see Note 3 and Note 11.
(c) All other includes: individuals; SPEs; and private education and civic organizations. For more information on exposures to SPEs, see Note 15.
(d) Receivables from customers primarily represent held-for-investment margin loans to brokerage customers (prime services, the asset & wealth management
business and the consumer & community banking business) that are collateralized through assets maintained in the clients’ brokerage accounts, as such no
allowance is held against these receivables. These receivables are reported within accrued interest and accounts receivable on JPMorgan Chase Bank, N.A.’s
Consolidated balance sheets.
(e) Excludes cash placed with banks of $401.8 billion and $367.9 billion, at December 31, 2017 and 2016, 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 used in credit portfolio management activities held against derivative
receivables or loans and liquid securities and other cash collateral held against derivative receivables.
(g) Represents lending-related financial instruments.
(h) The prior period amounts have been revised to conform with the current period presentation.

Note 6 – Derivative instruments
Derivative contracts derive their value from underlying Commodities contracts are used to manage the price risk of
asset prices, indices, reference rates, other inputs or a certain commodities inventories. Gains or losses on these
combination of these factors and may expose derivative instruments are expected to substantially offset
counterparties to risks and rewards of an underlying asset the depreciation or appreciation of the related inventory.
or liability without having to initially invest in, own or
exchange the asset or liability. JPMorgan Chase Bank, N.A. Credit derivatives are used to manage the counterparty
makes markets in derivatives for clients and also uses credit risk associated with loans and lending-related
derivatives to hedge or manage its own risk exposures. commitments. Credit derivatives compensate the purchaser
Predominantly all of JPMorgan Chase Bank, N.A.’s when the entity referenced in the contract experiences a
derivatives are entered into for market-making or risk credit event, such as bankruptcy or a failure to pay an
management purposes. obligation when due. Credit derivatives primarily consist of
CDS. For a further discussion of credit derivatives, see the
Market-making derivatives discussion in the Credit derivatives section on pages 53–56
The majority of JPMorgan Chase Bank, N.A.’s derivatives are of this Note.
entered into for market-making purposes. Clients use
derivatives to mitigate or modify interest rate, credit, For more information about risk management derivatives,
foreign exchange, equity and commodity risks. JPMorgan see the risk management derivatives gains and losses table
Chase Bank, N.A. actively manages the risks from its on page 53 of this Note, and the hedge accounting gains
exposure to these derivatives by entering into other and losses tables on pages 51–53 of this Note.
derivative transactions or by purchasing or selling other Derivative counterparties and settlement types
financial instruments that partially or fully offset the JPMorgan Chase Bank, N.A. enters into OTC derivatives with
exposure from client derivatives. third parties and JPMorgan Chase affiliates, which are
Risk management derivatives negotiated and settled bilaterally with the derivative
JPMorgan Chase Bank, N.A. manages certain market and counterparty. JPMorgan Chase Bank, N.A. also enters into,
credit risk exposures using derivative instruments, including as principal, certain exchange-traded derivatives (“ETD”)
derivatives in hedge accounting relationships and other such as futures and options, and “cleared” over-the-counter
derivatives that are used to manage risks associated with (“OTC-cleared”) derivative contracts with CCPs. ETD
specified assets and liabilities. contracts are generally standardized contracts traded on an
exchange and cleared by the CCP, which is JPMorgan Chase
Interest rate contracts are used to minimize fluctuations in Bank, N.A.’s counterparty from the inception of the
earnings that are caused by changes in interest rates. Fixed- transactions. OTC-cleared derivatives are traded on a
rate assets and liabilities appreciate or depreciate in market bilateral basis and then novated to the CCP for clearing.
value as interest rates change. Similarly, interest income
and expense increases or decreases as a result of variable- Derivative clearing services
rate assets and liabilities resetting to current market rates, JPMorgan Chase Bank, N.A. provides clearing services for
and as a result of the repayment and subsequent clients in which JPMorgan Chase Bank, N.A. acts as a
origination or issuance of fixed-rate assets and liabilities at clearing member at certain derivative exchanges and
current market rates. Gains or losses on the derivative clearing houses. JPMorgan Chase Bank, N.A. does not
instruments that are related to such assets and liabilities reflect the clients’ derivative contracts in its Consolidated
are expected to substantially offset this variability in Financial Statements. For further information on JPMorgan
earnings. JPMorgan Chase Bank, N.A. generally uses Chase Bank, N.A.’s clearing services, see Note 25.
interest rate swaps, forwards and futures to manage the Accounting for derivatives
impact of interest rate fluctuations on earnings. All free-standing derivatives that JPMorgan Chase Bank,
Foreign currency forward contracts are used to manage the N.A. executes for its own account are required to be
foreign exchange risk associated with certain foreign recorded on the Consolidated balance sheets at fair value.
currency–denominated (i.e., non-U.S. dollar) assets and As permitted under U.S. GAAP JPMorgan Chase Bank, N.A.
liabilities and forecasted transactions, as well as JPMorgan nets derivative assets and liabilities, and the related cash
Chase Bank, N.A.’s net investments in certain non-U.S. collateral receivables and payables, when a legally
subsidiaries or branches whose functional currencies are enforceable master netting agreement exists between
not the U.S. dollar. As a result of fluctuations in foreign JPMorgan Chase Bank, N.A. and the derivative counterparty.
currencies, the U.S. dollar–equivalent values of the foreign For further discussion of the offsetting of assets and
currency–denominated assets and liabilities or the liabilities, see Note 1. The accounting for changes in value
forecasted revenues or expenses increase or decrease. of a derivative depends on whether or not the transaction
Gains or losses on the derivative instruments related to has been designated and qualifies for hedge accounting.
these foreign currency–denominated assets or liabilities, or Derivatives that are not designated as hedges are reported
forecasted transactions, are expected to substantially offset and measured at fair value through earnings. The tabular
this variability. disclosures on pages 47–53 of this Note provide additional
information on the amount of, and reporting for, derivative

assets, liabilities, gains and losses. For further discussion of There are three types of hedge accounting designations: fair
derivatives embedded in structured notes, see Notes 3 value hedges, cash flow hedges and net investment hedges.
and 4. JPMorgan Chase Bank, N.A. uses fair value hedges primarily
Derivatives designated as hedges to hedge fixed-rate long-term debt, AFS securities and
JPMorgan Chase Bank, N.A. applies hedge accounting to certain commodities inventories. For qualifying fair value
certain derivatives executed for risk management purposes hedges, the changes in the fair value of the derivative, and
– generally interest rate, foreign exchange and commodity in the value of the hedged item for the risk being hedged,
derivatives. However, JPMorgan Chase Bank, N.A. does not are recognized in earnings. If the hedge relationship is
seek to apply hedge accounting to all of the derivatives terminated, then the adjustment to the hedged item
involved in its risk management activities. For example, continues to be reported as part of the basis of the hedged
JPMorgan Chase Bank, N.A. does not apply hedge item, and for benchmark interest rate hedges, is amortized
accounting to purchased CDS used to manage the credit risk to earnings as a yield adjustment. Derivative amounts
of loans and lending-related commitments, because of the affecting earnings are recognized consistent with the
difficulties in qualifying such contracts as hedges. For the classification of the hedged item – primarily net interest
same reason, JPMorgan Chase Bank, N.A. does not apply income and principal transactions revenue.
hedge accounting to certain interest rate and foreign JPMorgan Chase Bank, N.A. uses cash flow hedges primarily
exchange derivatives used for risk management purposes. to hedge the exposure to variability in forecasted cash flows
To qualify for hedge accounting, a derivative must be highly from floating-rate assets and liabilities and foreign
effective at reducing the risk associated with the exposure currency–denominated revenue and expense. For qualifying
being hedged. In addition, for a derivative to be designated cash flow hedges, the effective portion of the change in the
as a hedge, the risk management objective and strategy fair value of the derivative is recorded in OCI and recognized
must be documented. Hedge documentation must identify in the Consolidated statements of income when the hedged
the derivative hedging instrument, the asset or liability or cash flows affect earnings. Derivative amounts affecting
forecasted transaction and type of risk to be hedged, and earnings are recognized consistent with the classification of
how the effectiveness of the derivative is assessed the hedged item – primarily interest income, interest
prospectively and retrospectively. To assess effectiveness, expense, noninterest revenue and compensation expense.
JPMorgan Chase Bank, N.A. uses statistical methods such as The ineffective portions of cash flow hedges are
regression analysis, as well as nonstatistical methods immediately recognized in earnings. If the hedge
including dollar-value comparisons of the change in the fair relationship is terminated, then the value of the derivative
value of the derivative to the change in the fair value or recorded in accumulated other comprehensive income/
cash flows of the hedged item. The extent to which a (loss) (“AOCI”) is recognized in earnings when the cash
derivative has been, and is expected to continue to be, flows that were hedged affect earnings. For hedge
effective at offsetting changes in the fair value or cash flows relationships that are discontinued because a forecasted
of the hedged item must be assessed and documented at transaction is not expected to occur according to the
least quarterly. Any hedge ineffectiveness (i.e., the amount original hedge forecast, any related derivative values
by which the gain or loss on the designated derivative recorded in AOCI are immediately recognized in earnings.
instrument does not exactly offset the change in the hedged JPMorgan Chase Bank, N.A. uses net investment hedges to
item attributable to the hedged risk) must be reported in protect the value of JPMorgan Chase Bank, N.A.’s net
current-period earnings. If it is determined that a derivative investments in certain non-U.S. subsidiaries or branches
is not highly effective at hedging the designated exposure, whose functional currencies are not the U.S. dollar. For
hedge accounting is discontinued. foreign currency qualifying net investment hedges, changes
in the fair value of the derivatives are recorded in the
translation adjustments account within AOCI.

The following table outlines JPMorgan Chase Bank, N.A.’s primary uses of derivatives and the related hedge accounting
designation or disclosure category.
Page
Type of Derivative Use of Derivative Designation and disclosure reference
Manage specifically identified risk exposures in qualifying hedge accounting relationships:
• Interest rate Hedge fixed rate assets and liabilities Fair value hedge 51
• Interest rate Hedge floating-rate assets and liabilities Cash flow hedge 52
• Foreign exchange Hedge foreign currency-denominated assets and liabilities Fair value hedge 51
• Foreign exchange Hedge foreign currency-denominated forecasted revenue and expense Cash flow hedge 52
• Foreign exchange Hedge the value of JPMorgan Chase Bank, N.A.’s investments in non-U.S. Net investment hedge 53
subsidiaries
• Commodity Hedge commodity inventory Fair value hedge 51
Manage specifically identified risk exposures not designated in qualifying hedge accounting relationships:
• Interest rate Manage the risk of the mortgage pipeline, warehouse loans and MSRs Specified risk management 53
• Credit Manage the credit risk of wholesale lending exposures Specified risk management 53
• Interest rate and Manage the risk of certain other specified assets and liabilities Specified risk management 53
foreign exchange
Market-making derivatives and other activities:
• Various Market-making and related risk management Market-making and other 53
• Various Other derivatives Market-making and other 53

Notional amount of derivative contracts While the notional amounts disclosed above give an
The following table summarizes the notional amount of indication of the volume of JPMorgan Chase Bank, N.A.’s
derivative contracts outstanding as of December 31, 2017 derivatives activity, the notional amounts significantly
and 2016. exceed, in JPMorgan Chase Bank, N.A.’s view, the possible
losses that could arise from such transactions. For most
Notional amounts(b)
derivative transactions, the notional amount is not
December 31, (in billions) 2017 2016 exchanged; it is used simply as a reference to calculate
Interest rate contracts payments.
Swaps $ 21,371 $ 22,261
Futures and forwards 4,519 4,917
Written options 3,582 3,101
Purchased options 4,003 3,514
Total interest rate contracts 33,475 33,793
Credit derivatives(a) 1,498 2,010
Foreign exchange contracts
Cross-currency swaps 3,978 3,379
Spot, futures and forwards 5,962 5,385
Written options 788 735
Purchased options 777 721
Total foreign exchange contracts 11,505 10,220
Equity contracts
Swaps 497 360
Futures and forwards 75 47
Total equity contracts 1,623 1,264
Commodity contracts
Swaps 516 448
Spot, futures and forwards 173 131
Total commodity contracts 908 786
Total derivative notional amounts $ 49,009 $ 48,073
(a) For more information on volumes and types of credit derivative
contracts, see the Credit derivatives discussion on pages 53–56.
(b) Represents the sum of gross long and gross short notional derivative
contracts with third-parties and JPMorgan Chase affiliates. For
additional information on related party derivatives, see Note 20.

Impact of derivatives on the Consolidated balance sheets
The tables below include derivative receivables and payables with affiliates on a net basis. See Note 20 for information
regarding our derivative activities with affiliates.
The following table summarizes information on derivative receivables and payables (before and after netting adjustments) that
are reflected on JPMorgan Chase Bank, N.A.’s Consolidated balance sheets as of December 31, 2017 and 2016, by accounting
designation (e.g., whether the derivatives were designated in qualifying hedge accounting relationships or not) and contract
type.
Gross derivative balances as of December 31, 2017, reflect JPMorgan Chase Bank, N.A.’s adoption of rulebook changes made
by two CCPs, that require or allow JPMorgan Chase Bank, N.A. to treat certain OTC-cleared derivative transactions with that CCP
as settled each day. If such rulebook changes had been in effect as of December 31, 2016, the impact would have been a
reduction in gross derivative receivables and payables of $227.1 billion and $224.7 billion, respectively, and a corresponding
decrease in amounts netted, with no impact to the Consolidated balance sheets.
Free-standing derivative receivables and payables(a)

Gross derivative receivables Gross derivative payables
Not Total Net Not Total Net
December 31, 2017 designated Designated derivative derivative designated Designated derivative derivative
(in millions) as hedges as hedges receivables receivables(b) as hedges as hedges payables payables(b)
Trading assets and liabilities
Interest rate $ 319,044 $ 838 $ 319,882 $ 24,442 $ 289,658 $ 92 $ 289,750 $ 7,014
Credit 22,195 — 22,195 714 22,268 — 22,268 1,085
Foreign exchange 160,914 359 161,273 16,058 155,837 962 156,799 12,598
Equity 57,507 — 57,507 7,103 63,186 — 63,186 9,251
Commodity 40,085 19 40,104 6,308 40,433 403 40,836 6,321
Total fair value of trading
assets and liabilities $ 599,745 $ 1,216 $ 600,961 $ 54,625 $ 571,382 $ 1,457 $ 572,839 $ 36,269
Gross derivative receivables Gross derivative payables

Not Total Net Not Total Net
December 31, 2016 designated Designated derivative derivative designated Designated derivative derivative
(in millions) as hedges as hedges receivables receivables(b) as hedges as hedges payables payables(b)
Trading assets and liabilities
Interest rate $ 608,615 $ 1,725 $ 610,340 $ 28,020 $ 575,626 $ 1,520 $ 577,146 $ 10,545
Credit 29,149 — 29,149 1,233 28,336 — 28,336 1,298
Foreign exchange 234,301 1,297 235,598 23,319 235,409 490 235,899 20,466
Equity 50,905 — 50,905 5,026 54,839 — 54,839 8,532
Commodity 35,287 3 35,290 6,320 35,268 1 35,269 7,794
Total fair value of trading
assets and liabilities $ 958,257 $ 3,025 $ 961,282 $ 63,918 $ 929,478 $ 2,011 $ 931,489 $ 48,635
(a) Balances exclude structured notes for which the fair value option has been elected. See Note 4 for further information.
(b) As permitted under U.S. GAAP, JPMorgan Chase Bank, N.A. 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.

Derivatives netting
The following tables present, as of December 31, 2017 and 2016, 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 JPMorgan Chase Bank, N.A. 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 below.
In addition to the cash collateral received and transferred that is presented on a net basis with derivative receivables and
payables, JPMorgan Chase Bank, N.A. receives and transfers additional collateral (financial instruments and cash). These
amounts mitigate counterparty credit risk associated with JPMorgan Chase Bank, N.A.’s derivative instruments, but are not
eligible for net presentation:
• collateral that consists of non-cash financial instruments (generally U.S. government and agency securities and other G7
government securities) and cash collateral held at third party custodians, which are shown separately as “Collateral not
nettable on the Consolidated balance sheets” in the tables below, up to the fair value exposure amount.
• 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 below; 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 below.
2017 2016
Amounts netted Amounts netted
Gross on the Net Gross on the Net
derivative Consolidated derivative derivative Consolidated derivative
December 31, (in millions) receivables balance sheets receivables receivables balance sheets receivables
U.S. GAAP nettable derivative receivables
Interest rate contracts:
OTC $ 309,464 $ (289,039) $ 20,425 $ 368,159 $ (347,647) $ 20,512
OTC–cleared 6,531 (6,318) 213 234,525 (234,446) 79
Exchange-traded(a) 185 (84) 101 241 (227) 14
Total interest rate contracts 316,180 (295,441) 20,739 602,925 (582,320) 20,605
Credit contracts:
OTC 14,393 (14,311) 82 22,638 (22,177) 461
OTC–cleared 7,225 (7,170) 55 5,746 (5,739) 7
Total credit contracts 21,618 (21,481) 137 28,384 (27,916) 468
Foreign exchange contracts:
OTC 156,415 (143,554) 12,861 228,427 (211,087) 17,340
OTC–cleared 1,696 (1,654) 42 1,238 (1,165) 73
Total foreign exchange contracts 158,252 (145,215) 13,037 229,769 (212,279) 17,490
Equity contracts:
OTC 43,606 (41,322) 2,284 39,097 (38,298) 799
Exchange-traded(a) 10,072 (9,081) 991 9,075 (7,581) 1,494
Total equity contracts 53,678 (50,403) 3,275 48,172 (45,879) 2,293
Commodity contracts:
OTC 30,971 (25,096) 5,875 28,255 (22,206) 6,049
Exchange-traded(a) 8,853 (8,700) 153 6,792 (6,764) 28
Total commodity contracts 39,824 (33,796) 6,028 35,047 (28,970) 6,077
Derivative receivables with appropriate legal
opinion $ 589,552 $ (546,336) (b)
$ 43,216 $ 944,297 $ (897,364) (b)
$ 46,933
Derivative receivables where an appropriate legal
opinion has not been either sought or obtained 11,409 11,409 16,985 16,985
Total derivative receivables recognized on the
Consolidated balance sheets $ 600,961 $ 54,625 $ 961,282 $ 63,918
Collateral not nettable on the Consolidated
balance sheets(c)(d) (13,234) (18,594)
Net amounts $ 41,391 $ 45,324

2017 2016
Amounts netted Amounts netted
Gross on the Net Gross on the Net
derivative Consolidated derivative derivative Consolidated derivative
December 31, (in millions) payables balance sheets payables payables balance sheets payables
U.S. GAAP nettable derivative payables
Interest rate contracts:
OTC $ 282,317 $ (276,723) $ 5,594 $ 345,931 $ (336,778) $ 9,153
OTC–cleared 6,005 (5,929) 76 229,649 (229,648) 1
Total interest rate contracts 288,449 (282,736) 5,713 575,776 (566,601) 9,175
Credit contracts:
OTC 15,209 (14,398) 811 21,944 (21,397) 547
OTC–cleared 6,801 (6,784) 17 5,641 (5,641) —
Total credit contracts 22,010 (21,182) 828 27,585 (27,038) 547
Foreign exchange contracts:
OTC 151,968 (142,641) 9,327 229,290 (214,266) 15,024
OTC–cleared 1,555 (1,553) 2 1,158 (1,158) —
Total foreign exchange contracts 153,621 (144,201) 9,420 230,776 (215,433) 15,343
Equity contracts:
OTC 49,146 (44,861) 4,285 43,013 (38,743) 4,270
Total equity contracts 58,706 (53,935) 4,771 51,167 (46,307) 4,860
Commodity contracts:
OTC 31,614 (25,807) 5,807 27,729 (20,624) 7,105
Total commodity contracts 40,469 (34,516) 5,953 34,818 (27,475) 7,343
Derivative payables with appropriate legal opinion $ 563,255 $ (536,570) (b)
$ 26,685 $ 920,122 $ (882,854) (b)
$ 37,268
Derivative payables where an appropriate legal
opinion has not been either sought or obtained 9,584 9,584 11,367 11,367
Total derivative payables recognized on the
Consolidated balance sheets $ 572,839 $ 36,269 $ 931,489 $ 48,635
Collateral not nettable on the Consolidated balance
sheets(c)(d) (4,180) (8,926)
Net amounts $ 32,089 $ 39,709
(a) Exchange-traded derivative balances that relate to futures contracts are settled daily.
(b) Net derivatives receivable included cash collateral netted of $55.9 billion and $71.4 billion at December 31, 2017 and 2016, respectively. Net derivatives
payable included cash collateral netted of $46.1 billion and $56.9 billion related to OTC and OTC-cleared derivatives at December 31, 2017 and 2016,
respectively.
(c) Represents liquid security collateral as well as 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.
(d) Derivative collateral relates only to OTC and OTC-cleared derivative instruments.

Liquidity risk and credit-related contingent features collateral or termination features that may be triggered
In addition to the specific market risks introduced by each upon a ratings downgrade, and the associated collateral
derivative contract type, derivatives expose JPMorgan JPMorgan Chase Bank, N.A. has posted in the normal course
Chase Bank, N.A. to credit risk — the risk that derivative of business, at December 31, 2017 and 2016.
counterparties may fail to meet their payment obligations
under the derivative contracts and the collateral, if any, OTC and OTC-cleared derivative payables containing
downgrade triggers
held by JPMorgan Chase Bank, N.A. proves to be of
insufficient value to cover the payment obligation. It is the December 31, (in millions) 2017 2016
policy of JPMorgan Chase Bank, N.A. to actively pursue, Aggregate fair value of net derivative
where possible, the use of legally enforceable master payables $ 11,669 $ 21,200
netting arrangements and collateral agreements to mitigate Collateral posted 9,947 19,195
derivative counterparty credit risk. The amount of
derivative receivables reported on the Consolidated balance The following table shows the impact of a single-notch and
sheets is the fair value of the derivative contracts after two-notch downgrade of the long-term issuer ratings of
giving effect to legally enforceable master netting JPMorgan Chase Bank, N.A. and its subsidiaries at
agreements and cash collateral held by JPMorgan Chase December 31, 2017 and 2016, related to OTC and OTC-
Bank, N.A. cleared derivative contracts with contingent collateral or
While derivative receivables expose JPMorgan Chase Bank, termination features that may be triggered upon a ratings
N.A. to credit risk, derivative payables expose JPMorgan downgrade. Derivatives contracts generally require
Chase Bank, N.A. to liquidity risk, as the derivative contracts additional collateral to be posted or terminations to be
typically require JPMorgan Chase Bank, N.A. to post cash or triggered when the predefined threshold rating is breached.
securities collateral with counterparties as the fair value of A downgrade by a single rating agency that does not result
the contracts moves in the counterparties’ favor or upon in a rating lower than a preexisting corresponding rating
specified downgrades in JPMorgan Chase Bank, N.A.’s and provided by another major rating agency will generally not
its subsidiaries’ respective credit ratings. Certain derivative result in additional collateral (except in certain instances in
contracts also provide for termination of the contract, which additional initial margin may be required upon a
generally upon a downgrade of either JPMorgan Chase ratings downgrade), nor in termination payments
Bank, N.A. or the counterparty, at the fair value of the requirements. The liquidity impact in the table is calculated
derivative contracts. The following table shows the based upon a downgrade below the lowest current rating of
aggregate fair value of net derivative payables related to the rating agencies referred to in the derivative contract.
OTC and OTC-cleared derivatives that contain contingent
Liquidity impact of downgrade triggers on OTC and OTC-cleared derivatives

2017 2016
Single-notch Two-notch Single-notch Two-notch
December 31, (in millions) downgrade downgrade downgrade downgrade
Amount of additional collateral to be posted upon downgrade(a) $ 79 $ 1,982 $ 560 $ 2,489
Amount required to settle contracts with termination triggers upon downgrade(b) 320 649 606 1,049
(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 JPMorgan Chase Bank, N.A. 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. JPMorgan Chase Bank, N.A. generally accounts for such transfers as collateralized financing transactions as
described in Note 12, but in limited circumstances they may qualify to be accounted for as a sale and a derivative under U.S.
GAAP. There were no such transfers accounted for as a sale where the associated derivative was outstanding at December 31,
2017, and such transfers at December 31, 2016 were not material.

Impact of derivatives on the Consolidated statements of income
The following tables provide information related to gains and losses recorded on derivatives based on their hedge accounting
designation or purpose. See Note 20 for information regarding our derivative activities with affiliates.
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, 2017,
2016 and 2015, respectively. JPMorgan Chase Bank, N.A. includes gains/(losses) on the hedging derivative and the related
hedged item in the same line item in the Consolidated statements of income.
Gains/(losses) recorded in income Income statement impact due to:
Total income
statement Hedge Excluded
Year ended December 31, 2017 (in millions) Derivatives Hedged items impact ineffectiveness(e) components(f)
Contract type
Interest rate(a)(b) $ 52 $ (253) $ (201) $ 2 $ (203)
Foreign exchange(c) (3,159) 3,523 364 — 364
Commodity(d) (85) 96 11 — 11
Total $ (3,192) $ 3,366 $ 174 $ 2 $ 172

Total income
Contract type
Interest rate(a)(b) $ 435 $ (706) $ (271) $ 2 $ (273)
Foreign exchange(c) 2,556 (2,258) 298 — 298
Commodity(d) (81) 96 15 — 15
Total $ 2,910 $ (2,868) $ 42 $ 2 $ 40

Total income
Contract type
Interest rate(a)(b) $ (123) $ (233) $ (356) $ 26 $ (382)
Foreign exchange(c) 6,900 (6,921) (21) — (21)
Commodity(d) 600 (638) (38) (11) (27)
Total $ 7,377 $ (7,792) $ (415) $ 15 $ (430)
(a) Primarily consists of hedges of the benchmark (e.g., London Interbank Offered Rate (“LIBOR”)) interest rate risk of fixed-rate AFS securities. Gains and
losses were recorded in net interest income.
(b) Excludes the amortization expense associated with the inception hedge accounting adjustment applied to the hedged item. This expense is recorded in net
interest income and substantially offsets the income statement impact of the excluded components.
(c) Primarily consists of hedges of the foreign currency risk of 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, 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) Hedge ineffectiveness is the amount by which the gain or loss on the designated derivative instrument does not exactly offset the gain or loss on the
hedged item attributable to the hedged risk.
(f) 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 and time values.

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, 2017, 2016 and 2015,
respectively. JPMorgan Chase Bank, N.A. includes the gain/(loss) on the hedging derivative and the change in cash flows on the
hedged item in the same line item in the Consolidated statements of income.
Gains/(losses) recorded in income and other comprehensive income/(loss)
Hedge
Derivatives – ineffectiveness
effective portion Total income Derivatives – Total change
recorded
Year ended December 31, 2017 reclassified from directly in statement effective portion in OCI
(in millions) AOCI to income income(c) impact recorded in OCI for period
Contract type
Interest rate(a) $ (17) $ — $ (17) $ 12 $ 29
Foreign exchange (b)
(117) — (117) 135 252
Total $ (134) $ — $ (134) $ 147 $ 281

Hedge
effective portion recorded Total income Derivatives – Total change
Contract type
Interest rate(a) $ (74) $ — $ (74) $ (55) $ 19
Foreign exchange(b) (286) — (286) (394) (108)
Total $ (360) $ — $ (360) $ (449) $ (89)

Hedge
effective portion recorded Total income Derivatives – Total change
Contract type
Interest rate(a) $ (93) $ — $ (93) $ (44) $ 49
Foreign exchange(b) (81) — (81) (53) 28
Total $ (174) $ — $ (174) $ (97) $ 77
(a) Primarily consists of benchmark interest rate hedges of LIBOR-indexed floating-rate assets and floating-rate liabilities. 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.
(c) Hedge ineffectiveness is the amount by which the cumulative gain or loss on the designated derivative instrument exceeds the present value of the
cumulative expected change in cash flows on the hedged item attributable to the hedged risk.
JPMorgan Chase Bank, N.A. did not experience any forecasted transactions that failed to occur for the years ended 2017 and
2016. In 2015, JPMorgan Chase Bank, N.A. reclassified approximately $150 million of net losses from AOCI to other income
because JPMorgan Chase Bank, N.A. determined that it was probable that the forecasted interest payment cash flows would
not occur as a result of the planned reduction in wholesale non-operating deposits.
Over the next 12 months, JPMorgan Chase Bank, N.A. expects that approximately $96 million (after-tax) of net gains recorded
in AOCI at December 31, 2017, related to cash flow hedges will be recognized in income. For terminated cash flow hedges, the
maximum length of time over which forecasted transactions are remaining is approximately five years. For open cash flow
hedges, the maximum length of time over which forecasted transactions are hedged is approximately seven years. JPMorgan
Chase Bank, N.A.’s longer-dated forecasted transactions relate to core lending and borrowing activities.

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, 2017, 2016 and
2015.
2017 2016 2015
Excluded Excluded Excluded
components components components
recorded Effective recorded Effective recorded Effective
Year ended December 31, directly in portion directly in portion directly in portion
(in millions) income(a) recorded in OCI income(a) recorded in OCI income(a) recorded in OCI
Foreign exchange derivatives $ (172) $ (847) $ (247) $ (109) $ (317) $ 1,541
(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. Amounts related to excluded components are recorded in other income. JPMorgan Chase Bank, N.A. measures the
ineffectiveness of net investment hedge accounting relationships based on changes in spot foreign currency rates, and therefore there was no significant
ineffectiveness for net investment hedge accounting relationships during 2017, 2016 and 2015.
Gains and losses on derivatives used for specified risk Credit derivatives
management purposes Credit derivatives are financial instruments whose value is
The following table presents pre-tax gains/(losses) recorded derived from the credit risk associated with the debt of a
on a limited number of derivatives, not designated in hedge third-party issuer (the reference entity) and which allow
accounting relationships, that are used to manage risks one party (the protection purchaser) to transfer that risk to
associated with certain specified assets and liabilities, another party (the protection seller). Credit derivatives
including certain risks arising from the mortgage pipeline, expose the protection purchaser to the creditworthiness of
warehouse loans, MSRs, wholesale lending exposures and the protection seller, as the protection seller is required to
foreign currency denominated assets and liabilities. make payments under the contract when the reference
entity experiences a credit event, such as a bankruptcy, a
Derivatives gains/(losses) failure to pay its obligation or a restructuring. The seller of
recorded in income
Year ended December 31,
credit protection receives a premium for providing
(in millions) 2017 2016 2015 protection but has the risk that the underlying instrument
Contract type referenced in the contract will be subject to a credit event.
Interest rate(a) $ 331 $ 1,174 $ 853 JPMorgan Chase Bank, N.A. is both a purchaser and seller of
Credit(b) (74) (283) 70 protection in the credit derivatives market and uses these
Foreign exchange(c) (40) 34 17 derivatives for two primary purposes. First, in its capacity
Total $ 217 $ 925 $ 940 as a market-maker, JPMorgan Chase Bank, N.A. actively
(a) Primarily represents interest rate derivatives used to hedge the interest manages a portfolio of credit derivatives by purchasing and
rate risk inherent in the mortgage pipeline, warehouse loans and MSRs, as selling credit protection, predominantly on corporate debt
well as written commitments to originate warehouse loans. Gains and obligations, to meet the needs of customers. Second, as an
losses were recorded predominantly in mortgage fees and related income.
(b) Relates to credit derivatives used to mitigate credit risk associated with
end-user, JPMorgan Chase Bank, N.A. uses credit derivatives
lending exposures in JPMorgan Chase Bank, N.A.’s wholesale businesses. to manage credit risk associated with lending exposures
These derivatives do not include credit derivatives used to mitigate (loans and unfunded commitments) and derivatives
counterparty credit risk arising from derivative receivables, which is counterparty exposures in JPMorgan Chase Bank, N.A.’s
included in gains and losses on derivatives related to market-making
activities and other derivatives. Gains and losses were recorded in principal wholesale businesses, and to manage the credit risk arising
transactions revenue. from certain financial instruments in JPMorgan Chase Bank,
(c) Primarily relates to derivatives used to mitigate foreign exchange risk of N.A.’s market-making businesses. Following is a summary of
specified foreign currency-denominated assets and liabilities. Gains and
various types of credit derivatives.
losses were recorded in principal transactions revenue.
Credit default swaps
Gains and losses on derivatives related to market-making Credit derivatives may reference the credit of either a single
activities and other derivatives reference entity (“single-name”) or a broad-based index.
JPMorgan Chase Bank, N.A. makes markets in derivatives in
JPMorgan Chase Bank, N.A. purchases and sells protection
order to meet the needs of customers and uses derivatives
on both single- name and index-reference obligations.
to manage certain risks associated with net open risk
Single-name CDS and index CDS contracts are either OTC or
positions from its market-making activities, including the
counterparty credit risk arising from derivative receivables. OTC-cleared derivative contracts. Single-name CDS are used
All derivatives not included in the hedge accounting or to manage the default risk of a single reference entity, while
specified risk management categories above are included in index CDS contracts are used to manage the credit risk
this category. Gains and losses on these derivatives are associated with the broader credit markets or credit market
primarily recorded in principal transactions revenue. See segments. Like the S&P 500 and other market indices, a
Note 7 for information on principal transactions revenue. CDS index consists of a portfolio of CDS across many

reference entities. New series of CDS indices are periodically Credit-related notes
established with a new underlying portfolio of reference A credit-related note is a funded credit derivative where the
entities to reflect changes in the credit markets. If one of issuer of the credit-related note purchases from the note
the reference entities in the index experiences a credit investor credit protection on a reference entity or an index.
event, then the reference entity that defaulted is removed Under the contract, the investor pays the issuer the par
from the index. CDS can also be referenced against specific value of the note at the inception of the transaction, and in
portfolios of reference names or against customized return, the issuer pays periodic payments to the investor,
exposure levels based on specific client demands: for based on the credit risk of the referenced entity. The issuer
example, to provide protection against the first $1 million also repays the investor the par value of the note at
of realized credit losses in a $10 million portfolio of maturity unless the reference entity (or one of the entities
exposure. Such structures are commonly known as tranche that makes up a reference index) experiences a specified
CDS. credit event. If a credit event occurs, the issuer is not
obligated to repay the par value of the note, but rather, the
For both single-name CDS contracts and index CDS
issuer pays the investor the difference between the par
contracts, upon the occurrence of a credit event, under the
value of the note and the fair value of the defaulted
terms of a CDS contract neither party to the CDS contract
reference obligation at the time of settlement. Neither party
has recourse to the reference entity. The protection
to the credit-related note has recourse to the defaulting
purchaser has recourse to the protection seller for the
reference entity.
difference between the face value of the CDS contract and
the fair value of the reference obligation at settlement of The following tables present a summary of the notional
the credit derivative contract, also known as the recovery amounts of credit derivatives and credit-related notes
value. The protection purchaser does not need to hold the JPMorgan Chase Bank, N.A. sold and purchased as of
debt instrument of the underlying reference entity in order December 31, 2017 and 2016. Upon a credit event,
to receive amounts due under the CDS contract when a JPMorgan Chase Bank, N.A. as a seller of protection would
credit event occurs. typically pay out only 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. JPMorgan Chase Bank, N.A. 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 through credit-related notes.

JPMorgan Chase Bank, N.A. 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 JPMorgan Chase Bank, N.A.’s view, the risks associated with such derivatives.
Total credit derivatives and credit-related notes
Maximum payout/Notional amount
Protection purchased Net protection Other
Protection with identical (sold)/ protection
December 31, 2017 (in millions) sold underlyings(b) purchased(c) purchased(d)
Credit derivatives
Credit default swaps $ (676,017) $ 686,171 $ 10,154 $ 4,948
Other credit derivatives(a) (59,001) 60,595 1,594 11,747
Total credit derivatives (735,018) 746,766 11,748 16,695
Credit-related notes (18) — (18) 7,906
Total $ (735,036) $ 746,766 $ 11,730 $ 24,601
Maximum payout/Notional amount

Protection purchased Net protection Other
Protection with identical (sold)/ protection
December 31, 2016 (in millions) sold underlyings(b) purchased(c) purchased(d)
Credit derivatives
Credit default swaps $ (950,474) $ 962,598 $ 12,123 $ 7,935
Other credit derivatives(a) (37,415) 38,671 1,256 13,179
Total credit derivatives (987,889) 1,001,269 13,379 21,114
Credit-related notes (36) — (36) 4,113
Total $ (987,925) $ 1,001,269 $ 13,343 $ 25,227
(a) Other credit derivatives largely consists of credit swap options.

(b) 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.
(c) 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.
(d) Represents protection purchased by JPMorgan Chase Bank, N.A. on referenced instruments (single-name, portfolio or index) where JPMorgan Chase Bank,
N.A. has not sold any protection on the identical reference instrument.

The following tables summarize the notional amounts by the ratings, maturity profile, and total fair value, of credit derivatives
and credit-related notes as of December 31, 2017 and 2016, where JPMorgan Chase Bank, N.A. 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 and credit-related notes where JPMorgan Chase Bank, N.A. is the purchaser of protection are comparable to the
profile reflected below.
Protection sold – credit derivatives and credit-related notes ratings(a)/maturity profile

Total Fair value
December 31, 2017 notional Fair value of of Net fair
(in millions) <1 year 1–5 years >5 years amount receivables(b) payables(b) value
Risk rating of reference entity
Investment-grade $ (163,593) $ (320,201) $ (30,463) $ (514,257) $ 8,516 $ (858) $ 7,658
Noninvestment-grade (73,687) (134,156) (12,936) (220,779) 7,391 (4,638) 2,753
Total $ (237,280) $ (454,357) $ (43,399) $ (735,036) $ 15,907 $ (5,496) $ 10,411
Total Fair value

December 31, 2016 notional Fair value of of Net fair
(in millions) <1 year 1–5 years >5 years amount receivables(b) payables(b) value
Risk rating of reference entity
Investment-grade $ (274,489) $ (383,580) $ (34,440) $ (692,509) $ 7,838 $ (2,981) $ 4,857
Noninvestment-grade (107,933) (170,021) (17,462) (295,416) 8,175 (8,255) (80)
Total $ (382,422) $ (553,601) $ (51,902) $ (987,925) $ 16,013 $ (11,236) $ 4,777
(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 and cash collateral received by JPMorgan Chase
Bank, N.A.

Note 7 – Noninterest revenue and noninterest expense
Investment banking fees
Principal transactions
This revenue category includes debt and equity
Principal transactions revenue is driven by many factors,
underwriting and advisory fees. As an underwriter,
including the bid-offer spread, which is the difference
JPMorgan Chase Bank, N.A. helps clients raise capital via
between the price at which JPMorgan Chase Bank, N.A. is
public offering and private placement of various types of
willing to buy a financial or other instrument and the price
debt instruments and equity securities. Underwriting fees
at which JPMorgan Chase Bank, N.A. is willing to sell that
are primarily based on the issuance price and quantity of
instrument. It also consists of the realized (as a result of the
the underlying instruments, and are recognized as revenue
sale of instruments, closing out or termination of
typically upon execution of the client’s transaction.
transactions, or interim cash payments) and unrealized (as
JPMorgan Chase Bank, N.A. also manages and syndicates
a result of changes in valuation) gains and losses on
loan arrangements. Credit arrangement and syndication
financial and other instruments (including those accounted
fees, included within debt underwriting fees, are recorded
for under the fair value option) primarily used in client-
as revenue after satisfying certain retention, timing and
driven market-making activities and on private equity
yield criteria.
investments. In connection with its client-driven market-
JPMorgan Chase Bank, N.A. also provides advisory services, making activities, JPMorgan Chase Bank, N.A. transacts in
assisting its clients with mergers and acquisitions, debt and equity instruments, derivatives and commodities
divestitures, restructuring and other complex transactions. (including physical commodities inventories and financial
Advisory fees are recognized as revenue typically upon instruments that reference commodities).
execution of the client’s transaction.
Principal transactions revenue also includes certain realized
Year ended December 31, and unrealized gains and losses related to hedge accounting
(in millions) 2017 2016 2015 and specified risk-management activities, including: (a)
Underwriting certain derivatives designated in qualifying hedge
Equity $ 540 $ 410 $ 517 accounting relationships (primarily fair value hedges of
Debt 2,136 1,722 750 commodity and foreign exchange risk), (b) certain
Total underwriting 2,676 2,132 1,267 derivatives used for specific risk management purposes,
Advisory 743 567 664 primarily to mitigate credit risk and foreign exchange risk,
Total investment banking fees $ 3,419 $ 2,699 $ 1,931 and (c) other derivatives. For further information on the
income statement classification of gains and losses from
derivatives activities, see Note 6.
In the financial commodity markets, JPMorgan Chase Bank,
N.A. transacts in OTC derivatives (e.g., swaps, forwards,
options) and ETD that reference a wide range of underlying
commodities. In the physical commodity markets,
JPMorgan Chase Bank, N.A. primarily purchases and sells
precious and base metals and may hold other commodities
inventories under financing and other arrangements with
clients.

The following table presents all realized and unrealized Asset management, administration and commissions
gains and losses recorded in principal transactions revenue. This revenue category includes fees from investment
This table excludes interest income and interest expense on management and related services, custody, brokerage
trading assets and liabilities, which are an integral part of services and other products. JPMorgan Chase Bank, N.A.
the overall performance of JPMorgan Chase Bank, N.A.’s manages assets on behalf of its clients, including investors
client-driven market-making activities. See Note 8 for in JPMorgan Chase Bank, N.A.-sponsored funds and owners
further information on interest income and interest of separately managed investment accounts. Management
expense. Trading revenue is presented primarily by fees are typically based on the value of assets under
instrument type. JPMorgan Chase Bank, N.A.’s client-driven management and are collected and recognized at the end of
market-making businesses generally utilize a variety of each period over which the management services are
instrument types in connection with their market-making provided and the value of the managed assets is known.
and related risk-management activities; accordingly, the JPMorgan Chase Bank, N.A. also receives performance-
trading revenue presented in the table below is not based management fees, which are earned based on
representative of the total revenue of any individual line of exceeding certain benchmarks or other performance
business. targets and are accrued and recognized when the
probability of reversal is remote, typically at the end of the
(in millions) 2017 2016 2015 related billing period. JPMorgan Chase Bank, N.A. has
Trading revenue by instrument
contractual arrangements with third parties to provide
type distribution and other services in connection with its asset
Interest rate $ 3,200 $ 2,841 $ 2,782 management activities. Amounts paid to third-party service
Credit 653 1,229 930 providers are recorded in professional and outside services
Foreign exchange 2,826 2,944 2,700 expense.
Equity 2,784 2,357 2,043 Year ended December 31,
Commodity 415 504 610 (in millions) 2017 2016 2015
Total trading revenue 9,878 9,875 9,065 Asset management fees
Private equity gains 2 88 20 Investment management fees $ 2,039 $ 1,994 $ 2,086
Principal transactions $ 9,880 $ 9,963 $ 9,085 All other asset management fees(a) 52 58 40
Total asset management fees 2,091 2,052 2,126
Lending- and deposit-related fees Total administration fees(b) 2,026 1,914 2,027
Lending-related fees include fees earned from loan
commitments, standby letters of credit, financial Commissions and other fees
guarantees, and other loan-servicing activities. Deposit- Brokerage commissions(c) 1,115 982 1,033
related fees include fees earned in lieu of compensating All other commissions and fees 6,498 6,185 6,077
balances, and fees earned from performing cash Total commissions and fees 7,613 7,167 7,110
management activities and other deposit account services. Total asset management,
Lending- and deposit-related fees in this revenue category administration and
commissions $ 11,730 $ 11,133 $ 11,263
are recognized over the period in which the related service
(a) JPMorgan Chase Bank, N.A. receives other asset management fees for
is provided. services that are ancillary to investment management services, including
commissions earned on sales or distribution of mutual funds to clients.
Year ended December 31, (in millions) 2017 2016 2015 These fees are recorded as revenue at the time the service is rendered or, in
Lending-related fees $ 1,117 $ 1,121 $ 1,148 the case of certain distribution fees based on the underlying fund’s asset
Deposit-related fees 4,823 4,659 4,545 value and/or investor redemption, recorded over time as the investor
remains in the fund or upon investor redemption.
Total lending- and deposit-related fees $ 5,940 $ 5,780 $ 5,693 (b) JPMorgan Chase Bank, N.A. receives administrative fees predominantly from
custody, securities lending, fund services and securities clearance fees.
These fees are recorded as revenue over the period in which the related
service is provided.
(c) JPMorgan Chase Bank, N.A. acts as a broker, facilitating its clients’ purchase
and sale of securities and other financial instruments. It collects and
recognizes brokerage commissions as revenue upon occurrence of the
client transaction. JPMorgan Chase Bank, N.A. reports certain costs paid to
third-party clearing houses and exchanges net against commission revenue.

In addition, included in all other commissions and fees are Other income
fees earned by JPMorgan Chase Bank, N.A. for providing Other income on JPMorgan Chase Bank, N.A.’s Consolidated
operational support and services to JPMorgan Chase and its statements of income included the following:
subsidiaries. See Note 20 for further information on related
party transactions.
Operating lease income $ 3,605 $ 2,714 $ 2,075
Mortgage fees and related income
This revenue category primarily reflects the consumer & Operating lease income is recognized on a straight–line
community banking business’s home lending production basis over the lease term.
and servicing revenue, including fees and income derived
from mortgages originated with the intent to sell; mortgage Noninterest expense
sales and servicing including losses related to the Other expense
repurchase of previously sold loans; the impact of risk- Other expense on JPMorgan Chase Bank, N.A.’s Consolidated
management activities associated with the mortgage statements of income included the following:
pipeline, warehouse loans and MSRs; and revenue related to Year ended December 31,
any residual interests held from mortgage securitizations. (in millions) 2017 2016 2015
This revenue category also includes gains and losses on Legal expense/(benefit) $ (139) $ (289) $ 2,035
sales and lower of cost or fair value adjustments for Federal Deposit Insurance
mortgage loans held-for-sale, as well as changes in fair Corporation (“FDIC”)-related
expense 1,396 1,217 1,157
value for mortgage loans originated with the intent to sell
and measured at fair value under the fair value option.
Changes in the fair value of MSRs are reported in mortgage
fees and related income. For a further discussion of MSRs,
see Note 16. Net interest income from mortgage loans is
recorded in interest income.
Card income
This revenue category includes interchange income from
credit and debit cards and fees earned from processing card
transactions for merchants, both of which are recognized
when purchases are made by a cardholder. Card income
also includes other lending fees and related costs. The card
income earned by JPMorgan Chase Bank, N.A. results from
activity in the merchant services business and from a
participation arrangement with a bank affiliate of JPMorgan
Chase Bank, N.A.

Note 8 – Interest income and Interest expense

Interest income and interest expense are recorded in the Interest income and interest expense includes the current-
Consolidated statements of income and classified based on period interest accruals for financial instruments measured
the nature of the underlying asset or liability. at fair value, except for derivatives and financial
The following table presents the components of interest instruments containing embedded derivatives that would be
income and interest expense: separately accounted for in accordance with U.S. GAAP,
absent the fair value option election; for those instruments,
Year ended December 31, all changes in fair value including any interest elements, are
(in millions) 2017 2016 2015
reported in principal transactions revenue. For financial
Interest income
instruments that are not measured at fair value, the related
Loans $30,316 $26,506 $22,925 interest is included within interest income or interest
Taxable securities 5,520 5,519 6,522 expense, as applicable. For further information on
Non-taxable securities(a) 1,718 1,632 1,562 accounting for interest income and interest expense related
Total securities 7,238 7,151 8,084 to loans, securities, securities financing (i.e. securities
Trading assets 4,700 4,578 4,097 purchased or sold under resale or repurchase agreements;
Federal funds sold and securities borrowed; and securities loaned) and long-term
securities purchased under debt, see Notes 13, 11, 12 and 19, respectively.
resale agreements 1,252 1,370 960
Securities borrowed(b) 67 2 (10)
Deposits with banks 4,071 1,753 1,176
All other interest-earning
assets 455 224 193
Total interest income 48,099 41,584 37,425
Interest expense
Interest-bearing deposits 3,785 1,744 1,409
Federal funds purchased
and securities loaned or
sold under repurchase
agreements 524 408 253
Trading liabilities - debt,
short-term and all other
interest-bearing liabilities 1,366 1,295 1,311
Long-term debt 1,299 1,091 682
Beneficial interests issued
by consolidated VIEs 93 104 81
Total interest expense 7,067 4,642 3,736
Net interest income 41,032 36,942 33,689
Net interest income after
provision for credit losses $39,187 $34,456 $32,313
(a) Represents securities that are tax-exempt for U.S. federal income tax
purposes.
(b) Negative interest income is related to client-driven demand for certain
securities combined with the impact of low interest rates. This is matched
book activity and the negative interest expense on the corresponding
securities loaned is recognized in interest expense.

Note 9 – Pension and other postretirement benefit cost over subsequent periods as discussed in the
employee benefit plans Gains and losses section of this Note. Additionally, service
cost, interest cost, and investment returns that would
JPMorgan Chase Bank, N.A. has various defined benefit otherwise be classified separately are aggregated and
pension plans and other postretirement employee benefit reported net within compensation expense.
(“OPEB”) plans that provide benefits to its employees.
Substantially all of JPMorgan Chase Bank, N.A.’s U.S. The following table presents the changes in benefit
employees are provided pension benefits through JPMorgan obligations, plan assets, the net funded status, and the pre-
Chase’s qualified noncontributory U.S. defined benefit tax pension amounts recorded in AOCI on the Consolidated
pension plan. In addition, JPMorgan Chase Bank, N.A. offers balance sheets for JPMorgan Chase Bank, N.A.’s significant
postretirement medical and life insurance benefits to defined benefit pension plans, and the weighted-average
certain U.S. retirees and postretirement medical benefits to actuarial annualized assumptions for the projected and
qualifying U.S. employees through JPMorgan Chase plans. accumulated postretirement benefit obligations.
Consolidated disclosures of information about the defined Defined benefit
benefit pension and OPEB plans of JPMorgan Chase, As of or for the year ended pension plans
including the funded status of the plans, components of December 31, (in millions) 2017 2016
benefit cost and weighted-average actuarial assumptions Change in benefit obligation
are included in Note 8 on pages 195–200 of the 2017 Form Benefit obligation, beginning of year $ (3,490) $ (3,462)
10-K.
Benefits earned during the year (29) (36)
JPMorgan Chase Bank, N.A.’s U.S. defined benefit pension Interest cost on benefit obligations (83) (104)
expense and postretirement medical benefit expense are Employee contributions (7) (7)
determined based upon employee participation in the Net gain/(loss) (127) (540)
JPMorgan Chase plans and effected through an
Benefits paid 163 132
intercompany charge from JPMorgan Chase, which is cash
settled monthly. Plan settlements 30 21
Foreign exchange impact and other (314) 506
JPMorgan Chase Bank, N.A. was charged $195 million,
$180 million and $194 million in 2017, 2016 and 2015, Benefit obligation, end of year(a) $ (3,857) $ (3,490)
respectively, for its share of the U.S. qualified defined Change in plan assets
benefit pension plan expense; and it was charged $1 million Fair value of plan assets, beginning of
year $ 3,431 $ 3,511
for each of the years 2017, 2016 and 2015, for its share of
the U.S. OPEB plan expense. Actual return on plan assets 294 537
JPMorgan Chase Bank, N.A.
JPMorgan Chase Bank, N.A. also offers benefits through contributions 52 58
defined benefit pension plans to qualifying employees in
Employee contributions 7 7
certain non-U.S. locations.
Benefits paid (163) (132)
It is JPMorgan Chase Bank, N.A.’s policy to fund the pension
Plan settlements (30) (21)
plans in amounts sufficient to meet the requirements under
Foreign exchange impact and other 330 (529)
applicable laws. The 2018 contributions to the non-U.S.
defined benefit pension plans are expected to be $46 Fair value of plan assets, end of year(a) $ 3,921 $ 3,431
million of which $30 million are contractually required. Net funded/(unfunded) status(b) $ 64 $ (59)
JPMorgan Chase Bank, N.A. also offers certain qualifying Accumulated benefit obligation, end
of year $ (3,857) $ (3,490)
employees in the U.S. the ability to participate in a number
Pretax pension amounts recorded in AOCI
of nonqualified noncontributory defined benefit pension
plans that are unfunded. These plans provide supplemental Net gain/(loss) $ (550) $ (567)
defined pension benefits to certain employees. Prior service credit/(loss) 6 8
JPMorgan Chase Bank, N.A. employees may also participate Accumulated other comprehensive
income/(loss), pretax, end of year $ (544) $ (559)
in one of the two qualified defined contribution plans
Weighted-average assumptions used to determine benefit obligations
offered by JPMorgan Chase in the U.S. and other similar
Discounted rate(c) 0.60 - 3.70% 0.60 - 4.30%
arrangements offered by JPMorgan Chase Bank, N.A. in
certain non-U.S. locations. Rate of compensation increase 2.25 - 3.00 2.25 - 3.00
Pension and OPEB accounting generally requires that the (a) At December 31, 2017 and 2016, included U.S. benefit obligation of
difference between plan assets at fair value and the benefit $(107) million and $(113) million, respectively. There are no assets
for the U.S. plans.
obligation be measured and recorded on the balance sheet. (b) Represents plans with an aggregate overfunded balance of $293
Plans that are overfunded (excess of plan assets over million and $204 million at December 31, 2017 and 2016,
benefit obligation) are recorded in other assets and plans respectively, and plans with an aggregate underfunded balance of
that are underfunded (excess benefit obligation over plan $229 million and $263 million at December 31, 2017 and 2016,
assets) are recorded within other liabilities. Gains or losses respectively.
(c) For the non-U.S. defined benefit pension plans, the discount rate
resulting from changes in the benefit obligation and the
assumption ranges are 0.60 - 2.40% and 0.60 - 2.60% for 2017 and
value of plan assets are recorded in other comprehensive 2016, respectively.
income (“OCI”) and recognized as part of the net periodic

Gains and losses
For JPMorgan Chase Bank, N.A.’s defined benefit pension The estimated pretax amounts that will be amortized from
plans, fair value is used to determine the expected return AOCI into net periodic benefit cost in 2018 are as follows.
on plan assets. Amortization of net gains and losses is
included in annual net periodic benefit cost if, as of the Defined benefit
(in millions) pension plans
beginning of the year, the net gain or loss exceeds 10% of
Net loss/(gain) $ 23
the greater of the PBO or the fair value of the plan assets.
Prior service cost/(credit) (2)
Any excess is amortized over the average future service
period of defined benefit pension plan participants, which Total $ 21
for the non-U.S. defined benefit pension plans is the period
appropriate for the affected plan. In addition, prior service Plan assumptions
costs are amortized over the average remaining service For the U.K. defined benefit pension plans, which represent
period of active employees expected to receive benefits the most significant of JPMorgan Chase Bank, N.A.’s non-
under the plan when the prior service cost is first U.S. defined benefit pension plans, procedures are used to
recognized. develop the expected long-term rate of return on plan
The following table presents the components of net periodic assets, taking into consideration local market conditions
benefit costs reported in the Consolidated statements of and the specific allocation of plan assets. The expected
income for JPMorgan Chase Bank, N.A.’s significant defined long-term rate of return on U.K. plan assets is an average of
benefit pension and defined contribution plans, and in other projected long-term returns for each asset class. The return
comprehensive income for the significant defined benefit on equities has been selected by reference to the yield on
pension plans, and the weighted-average annualized long-term U.K. government bonds plus an equity risk
actuarial assumptions for the net periodic benefit cost. premium above the risk-free rate. The expected return on
“AA” rated long-term corporate bonds is based on an
Defined benefit pension plans
implied yield for similar bonds.
(in millions) 2017 2016 2015 The discount rate for the U.K. defined benefit pension plan
Components of net periodic benefit represents a rate of appropriate duration from the analysis
cost
of yield curves provided by JPMorgan Chase Bank, N.A.’s
Benefits earned during the year $ 29 $ 36 $ 38
Interest cost on benefit obligations 83 104 116
actuaries.
Expected return on plan assets (136) (139) (150) JPMorgan Chase Bank, N.A.’s non-U.S. defined benefit
Amortization: pension plans expense is sensitive to the discount rate. A
Net (gain)/loss 34 25 40 25-basis point decline in the discount rates for the non-U.S.
Prior service cost/(credit) (2) (2) (2)
plans would result in an increase in the 2018 non-U.S.
Special termination benefits — — 1
defined benefit pension plan expense of approximately $15
Settlement loss 2 4 —
million.
Net periodic defined benefit cost 10 28 43
Other defined benefit pension plans(a) 15 15 18
Total defined benefit plans 25 43 61
Total defined contribution plans 680 676 667
Total pension and OPEB cost included
in compensation expense $ 705 $ 719 $ 728
Changes in plan assets and benefit
obligations recognized in other
comprehensive income
Net (gain)/loss arising during the year $ (33) $ 139 $ (54)
Amortization of net loss (34) (25) (40)
Amortization of prior service (cost)/
credit 2 2 2
Settlement loss (2) (4) —
Foreign exchange impact and other 52 (80) (132)
Total recognized in other
comprehensive income $ (15) $ 32 $ (224)
Total recognized in net periodic
benefit cost and other
comprehensive income $ (5) $ 60 $ (181)
Weighted-average assumptions used to determine net periodic benefit costs

Discount rate(b) 0.60 - 4.30% 0.90 - 4.50% 1.00 - 4.00%
Expected long-term rate of
return on plan assets 0.70 - 4.30 0.80 - 4.60 0.90 - 4.80
Rate of compensation
increase 2.25 - 3.00 2.25 - 4.30 2.75 - 4.20
(a) Includes various defined benefit pension plans which are individually immaterial.
(b) For the non-U.S. defined benefit pension plans, the discount rate assumption
ranges are 0.60 - 2.50%, 0.90 - 3.70% and 1.00- 3.60% for 2017, 2016 and
2015, respectively.

Investment strategy and asset allocation
The investment policy for the U.K. defined benefit pension
plans, which represent the most significant of the non-U.S.
defined benefit pension plans, is to maximize returns
subject to an appropriate level of risk relative to the plans’
liabilities. To reduce the volatility in returns relative to the
plans’ liability profiles, the U.K. defined benefit pension
plans’ largest asset allocations are to debt securities of
appropriate durations. Other assets, mainly equity
securities, are then invested for capital appreciation, to
provide long-term investment growth. Asset allocations and
asset managers for the U.K. defined benefit pension plans
are reviewed regularly and the portfolios are rebalanced
when deemed necessary.
As of December 31, 2017, assets held by JPMorgan Chase
Bank, N.A.’s non-U.S. defined benefit pension plans do not
include JPMorgan Chase common stock, except through
indirect exposures through investments in third-party stock-
index funds. The non-U.S. plans hold investments in funds
that are sponsored or managed by affiliates of JPMorgan
Chase Bank, N.A. in the amount of $1.5 billion and $1.2
billion as of December 31, 2017 and 2016, respectively.
The following table presents the weighted-average asset
allocation of the fair values of total plan assets at
December 31 for the years indicated, as well as the
respective approved asset allocation ranges by asset class,
for JPMorgan Chase Bank, N.A.’s non-U.S. defined benefit
pension plans.
% of plan assets
Asset
December 31, Allocation 2017 2016
Asset class
Debt securities(a) 58% 60% 60%
Equity securities 40 38 39
Real Estate 1 1 —
Alternatives 1 1 1
Total 100% 100% 100%
(a) Debt securities primarily include cash, corporate debt and non-U.S.
government debt securities.

Fair value measurement of the plans’ assets and liabilities
For information on fair value measurements, including descriptions of level 1 and 2 of the fair value hierarchy and the
valuation methods employed by JPMorgan Chase Bank, N.A., see Note 3.
Pension plan assets and liabilities measured at fair value

Defined benefit pension plans
2017 2016
December 31, Total fair Total fair
(in millions) Level 1 Level 2 value Level 1 Level 2 value
Cash and cash equivalents $ 118 $ 1 $ 119 $ 122 $ 2 $ 124
Equity securities 1,047 183 1,230 980 154 1,134
Mutual funds 87 — 87 — — —
Common/collective trust funds 169 — 169 118 — 118
Corporate debt securities(a) — 775 775 — 715 715
Non-U.S. government debt securities 235 696 931 213 570 783
Mortgage-backed securities 5 8 13 3 10 13
Derivative receivables — 179 179 — 219 219
Other(b) 155 60 215 223 53 276
Total assets measured at fair value(c) $ 1,816 $ 1,902 $ 3,718 $ 1,659 $ 1,723 $ 3,382
Derivative payables $ — $ (131) $ (131) $ — $ (194) $ (194)
Total liabilities measured at fair value $ — $ (131) $ (131) $ — $ (194) $ (194)
(a) Corporate debt securities include debt securities of U.S. and non-U.S. corporations.
(b) Other consists primarily of money market funds and insurance contracts. Money market funds are primarily classified within level 1 of the fair value hierarchy given
they are valued using market observable prices. Insurance contracts are guaranteed return investments subject to the credit risk of the insurance company and are
classified in level 2 of the valuation hierarchy.
(c) At December 31, 2017 and 2016, excludes $334 million and $243 million, respectively, of certain non-U.S. defined benefit pension plan investments that are
measured at fair value using the net asset value per share (or its equivalent) as a practical expedient, which are not required to be classified in the fair value
hierarchy.
Estimated future benefit payments

The following table presents benefit payments expected to
be paid, which include the effect of expected future service,
for the years indicated.
Defined
Year ended December 31, benefit
(in millions) pension plans
2018 $ 125
2019 123
2020 130
2021 135
2022 139
Years 2023–2027 761

Note 10 – Employee share-based incentives
Employee share-based awards Once the PSUs have vested, the shares of common stock
JPMorgan Chase Bank, N.A.’s employees receive annual that are delivered, after applicable tax withholding, must be
incentive compensation based on their performance, the held for an additional two-year period, typically for a total
performance of their business and JPMorgan Chase’s combined vesting and holding period of five years from the
consolidated operating results. JPMorgan Chase Bank, N.A.’s grant date.
employees participate, to the extent they meet minimum
eligibility requirements, in various share-based incentive Under the LTI Plans, stock options and stock appreciation
plans sponsored by JPMorgan Chase. For additional rights (“SARs”) have generally been granted with an
information regarding JPMorgan Chase’s employee share- exercise price equal to the fair value of JPMorgan Chase’s
based incentives, see Note 9 on pages 201-202 of the 2017 common stock on the grant date. JPMorgan Chase
Form 10-K. periodically grants employee stock options to individual
employees. There were no material grants of stock options
In 2017, 2016 and 2015, JPMorgan Chase granted long- or SARs in 2017, 2016 and 2015. SARs generally expire ten
term share-based awards to certain employees under its years after the grant date.
Long-Term Incentive Plan (“LTIP”), as amended and restated
effective May 19, 2015. Under the terms of the LTIP, as of JPMorgan Chase Bank, N.A. separately recognizes
December 31, 2017, 67 million shares of JPMorgan Chase’s compensation expense for each tranche of each award, net
common stock were available for issuance through of estimated forfeitures, as if it were a separate award with
May 2019. The LTIP is the only active plan under which its own vesting date. Generally, for each tranche granted,
JPMorgan Chase is currently granting share-based incentive compensation expense is recognized on a straight-line basis
awards. In the following discussion, the LTIP, plus prior from the grant date until the vesting date of the respective
JPMorgan Chase plans and plans assumed as the result of tranche, provided that the employees will not become full-
acquisitions, are referred to collectively as the “LTI Plans,” career eligible during the vesting period. For awards with
and such plans constitute JPMorgan Chase’s share-based full-career eligibility provisions and awards granted with no
incentive plans. future substantive service requirement, JPMorgan Chase
Bank, N.A. accrues the estimated value of awards expected
Restricted stock units (“RSUs”) are awarded at no cost to to be awarded to employees as of the grant date without
the recipient upon their grant. Generally, RSUs are granted giving consideration to the impact of post-employment
annually and vest at a rate of 50% after two years and restrictions. For each tranche granted to employees who
50% after three years and are converted into shares of will become full-career eligible during the vesting period,
common stock as of the vesting date. In addition, RSUs compensation expense is recognized on a straight-line basis
typically include full-career eligibility provisions, which from the grant date until the earlier of the employee’s full-
allow employees to continue to vest upon voluntary career eligibility date or the vesting date of the respective
termination based on age or service-related requirements, tranche.
subject to post-employment and other restrictions. All RSU
awards are subject to forfeiture until vested and contain In January 2008, JPMorgan Chase awarded to its Chairman
clawback provisions that may result in cancellation under and Chief Executive Officer up to 2 million SARs. The terms
certain specified circumstances. Generally, RSUs entitle the of this award are distinct from, and more restrictive than,
recipient to receive cash payments equivalent to any other equity grants regularly awarded by JPMorgan Chase.
dividends paid on the underlying common stock during the On July 15, 2014, the Compensation & Management
period the RSUs are outstanding. Development Committee and Board of Directors determined
that all requirements for the vesting of the 2 million SAR
In January 2017 and 2016, JPMorgan Chase’s Board of awards had been met and thus, the awards became
Directors approved the grant of performance share units exercisable. The SARs, which had an expiration date of
(“PSUs”) to members of JPMorgan Chase’s Operating January 2018, were exercised by Mr. Dimon in October
Committee under the variable compensation program for 2017 at the exercise price of $39.83 per share (the price of
performance years 2016 and 2015. PSUs are subject to JPMorgan Chase common stock on the date of grant).
JPMorgan Chase’s achievement of specified performance
criteria over a three-year period. The number of awards
that vest can range from zero to 150% of the grant
amount. The awards vest and are converted into shares of
common stock in the quarter after the end of the
performance period, which is generally three years. In
addition, dividends are notionally reinvested in JPMorgan
Chase’s common stock and will be delivered only in respect
of any earned shares.

RSUs, PSUs, employee stock options and SARs activity

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 employee stock options and 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 JPMorgan Chase Bank, N.A.’s RSUs, PSUs, employee stock options and SARs activity for 2017.
RSUs/PSUs Options/SARs
Year ended December 31, 2017 Weighted- Weighted-average

Weighted- average remaining Aggregate
(in thousands, except weighted-average data, and Number of average grant Number of exercise contractual life intrinsic
where otherwise stated) units date fair value awards price (in years) value
Outstanding, January 1 56,868 $ 57.20 24,975 $ 40.71
Granted 18,829 84.21 96 90.71
Exercised or vested (23,069) 58.08 (10,911) 40.52
Forfeited (1,522) 62.58 (48) 56.94
Canceled NA NA (8) 252.04
Transferred 238 57.20 222 40.71
Outstanding, December 31 51,344 $ 66.51 14,326 $ 40.89 3.5 $ 955,826
Exercisable, December 31 NA NA 12,842 40.07 3.3 867,309
The total fair value of RSUs that vested during the years ended December 31, 2017, 2016 and 2015, was $2.0 billion, $1.5
billion and $1.9 billion, respectively. The total intrinsic value of options exercised during the years ended December 31, 2017,
2016 and 2015, was $553 million, $278 million and $284 million, respectively.
Compensation expense Tax benefits

JPMorgan Chase Bank, N.A. recognized the following Effective January 1, 2016, JPMorgan Chase adopted new
compensation expense related to its various employee accounting guidance related to employee share-based
share-based incentive plans in its Consolidated statements payments. As a result of the adoption of this new guidance,
of income. JPMorgan Chase Bank, N.A. is recognizing its share of excess
tax benefits (including tax benefits from dividends or
Year ended December 31, (in millions) 2017 2016 2015 dividend equivalents) on share-based payment awards are
Cost of prior grants of RSUs, PSUs and recognized within income tax expense in the Consolidated
SARs that are amortized over their statements of income. Income tax benefits related to share-
applicable vesting periods $ 802 $ 705 $ 730
based incentive arrangements recognized in JPMorgan
Accrual of estimated costs of share- Chase Bank, N.A.’s Consolidated statements of income for
based awards to be granted in future
periods including those to full-career the years ended December 31, 2017, 2016 and 2015, were
eligible employees 687 627 597 $739 million, $626 million and $498 million, respectively.
Total compensation expense related
to employee share-based incentive
plans $ 1,489 $ 1,332 $ 1,327
At December 31, 2017, approximately $516 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 1.1 years. JPMorgan Chase
Bank, N.A. does not capitalize any compensation expense
related to share-based compensation awards to employees.

Note 11 – Securities
Securities are classified as trading, AFS or HTM. Securities classified as trading assets are discussed in Note 3.
Predominantly all of JPMorgan Chase Bank, N.A.’s AFS and HTM securities are held by the corporate function in connection with
its asset-liability management activities. At December 31, 2017, 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 ratings which correspond to ratings as defined by S&P and Moody’s). AFS securities are carried at fair value on
the Consolidated balance sheets. Unrealized gains and losses, after any applicable hedge accounting adjustments, are reported
as net increases or decreases to AOCI. The specific identification method is used to determine realized gains and losses on AFS
securities, which are included in securities gains/(losses) on the Consolidated statements of income. HTM debt securities,
which management has the intent and ability to hold until maturity, are carried at amortized cost on the Consolidated balance
sheets. For both AFS and HTM debt securities, purchase discounts or premiums are generally amortized into interest income
over the contractual life of the security.
The amortized cost and estimated fair value of the investment securities portfolio were as follows for the dates indicated.
2017 2016
Gross Gross Gross Gross
Amortized unrealized unrealized Fair Amortized unrealized unrealized Fair
December 31, (in millions) cost gains losses value cost gains losses value
Available-for-sale debt securities
U.S. government agencies(a) $ 69,879 $ 736 $ 335 $ 70,280 $ 63,367 $ 1,112 $ 474 $ 64,005
Residential:
U.S.(b) 8,193 185 14 8,364 8,171 100 28 8,243
Non-U.S. 2,882 122 1 3,003 6,049 158 7 6,200
Commercial 4,791 94 5 4,880 8,602 108 19 8,691
Total mortgage-backed securities 85,745 1,137 355 86,527 86,189 1,478 528 87,139
U.S. Treasury and government agencies(a) 22,510 266 31 22,745 44,822 75 796 44,101
Obligations of U.S. states and municipalities 28,444 1,764 33 30,175 27,769 1,311 183 28,897
Certificates of deposit 59 — — 59 106 — — 106
Non-U.S. government debt securities 26,900 426 32 27,294 34,497 836 45 35,288
Corporate debt securities 2,657 101 1 2,757 4,916 64 22 4,958
Collateralized loan obligations 20,928 69 1 20,996 27,352 75 26 27,401
Other 8,725 72 24 8,773 6,913 59 46 6,926
Total available-for-sale debt securities 195,968 3,835 477 199,326 232,564 3,898 1,646 234,816
Available-for-sale equity securities 38 — — 38 42 12 — 54
Total available-for-sale securities $ 196,006 $ 3,835 $ 477 $ 199,364 $ 232,606 $ 3,910 $ 1,646 $ 234,870
Held-to-maturity debt securities
U.S. government agencies(c) 27,577 558 40 28,095 29,910 638 37 30,511
Commercial 5,783 1 74 5,710 5,783 — 129 5,654
Total mortgage-backed securities 33,360 559 114 33,805 35,693 638 166 36,165
Obligations of U.S. states and municipalities 14,373 554 80 14,847 14,475 374 125 14,724
Total held-to-maturity securities 47,733 1,113 194 48,652 50,168 1,012 291 50,889
Total securities $ 243,739 $ 4,948 $ 671 $ 248,016 $ 282,774 $ 4,922 $ 1,937 $ 285,759
(a) Includes total U.S. government-sponsored enterprise obligations with a fair value of $45.8 billion for the years ended December 31, 2017 and 2016,
which were predominantly mortgage-related.
(b) Prior period amounts have been revised to conform with the current period presentation.
(c) Included total U S. government-sponsored enterprise obligations with amortized cost of $22.0 billion and $25.6 billion at December 31, 2017 and 2016,
respectively, which were mortgage-related.

Securities impairment
The following tables present the fair value and gross unrealized losses for the investment securities portfolio by aging category
at December 31, 2017 and 2016.
Securities with gross unrealized losses
Less than 12 months 12 months or more
Gross unrealized Gross unrealized Total fair Total gross
December 31, 2017 (in millions) Fair value losses Fair value losses value unrealized losses
U.S. government agencies $ 36,037 $ 139 $ 7,711 $ 196 $ 43,748 $ 335
Residential:
U.S. 1,112 5 596 9 1,708 14
Non-U.S. — — 266 1 266 1
Commercial 528 4 335 1 863 5
Total mortgage-backed securities 37,677 148 8,908 207 46,585 355
U.S. Treasury and government agencies 1,834 11 373 20 2,207 31
Obligations of U.S. states and municipalities 931 7 1,652 26 2,583 33
Certificates of deposit — — — — — —
Non-U.S. government debt securities 6,500 15 811 17 7,311 32
Corporate debt securities — — 52 1 52 1
Collateralized loan obligations — — 276 1 276 1
Other 3,521 20 720 4 4,241 24
Total available-for-sale debt securities 50,463 201 12,792 276 63,255 477
Available-for-sale equity securities — — — — — —
U.S. government agencies 4,070 38 205 2 4,275 40
Commercial 3,706 41 1,882 33 5,588 74
Obligations of U.S. states and municipalities 584 9 2,131 71 2,715 80
Total held-to-maturity securities 8,360 88 4,218 106 12,578 194
Total securities with gross unrealized losses $ 58,823 $ 289 $ 17,010 $ 382 $ 75,833 $ 671

Securities with gross unrealized losses
Less than 12 months 12 months or more
Gross unrealized Gross unrealized Total fair Total gross
December 31, 2016 (in millions) Fair value losses Fair value losses value unrealized losses
U.S. government agencies $ 29,856 $ 463 $ 506 $ 11 $ 30,362 $ 474
Residential:
U.S.(a) 1,373 6 1,073 22 2,446 28
Non-U.S. — — 886 7 886 7
Commercial 2,328 16 1,056 3 3,384 19
U.S. Treasury and government agencies 23,543 796 — — 23,543 796
Obligations of U.S. states and municipalities 7,147 180 55 3 7,202 183
Certificates of deposit — — — — — —
Non-U.S. government debt securities 4,436 36 421 9 4,857 45
Corporate debt securities 797 2 829 20 1,626 22
Collateralized loan obligations 766 2 5,263 24 6,029 26
Other 739 6 1,992 40 2,731 46
Total available-for-sale debt securities 70,985 1,507 12,081 139 83,066 1,646
Available-for-sale equity securities — — — — — —
U.S. government agencies 3,129 37 — — 3,129 37
Commercial 5,163 114 441 15 5,604 129
Total mortgage-backed securities 8,292 151 441 15 8,733 166
Obligations of U.S. states and municipalities 4,702 125 — — 4,702 125
Total held-to-maturity securities 12,994 276 441 15 13,435 291
Total securities with gross unrealized losses $ 83,979 $ 1,783 $ 12,522 $ 154 $ 96,501 $ 1,937
(a) Prior period amounts have been revised to conform with the current period presentation.
Gross unrealized losses

JPMorgan Chase Bank, N.A. has recognized unrealized recorded investment, JPMorgan Chase Bank, N.A. considers
losses on securities that it intends to sell as OTTI. JPMorgan an impairment to be other-than-temporary when there is an
Chase Bank, N.A. does not intend to sell any of the adverse change in expected cash flows. For AFS equity
remaining securities with an unrealized loss in AOCI as of securities, JPMorgan Chase Bank, N.A. considers a decline in
December 31, 2017, and it is not likely that JPMorgan fair value to be other-than-temporary if it is probable that
Chase Bank, N.A. will be required to sell these securities JPMorgan Chase Bank, N.A. will not recover its cost basis.
before recovery of their amortized cost basis. Except for the Potential OTTI is considered using a variety of factors,
securities for which credit losses have been recognized in including the length of time and extent to which the market
income, JPMorgan Chase Bank, N.A. believes that the value has been less than cost; adverse conditions
securities with an unrealized loss in AOCI are not other- specifically related to the industry, geographic area or
than-temporarily impaired as of December 31, 2017. financial condition of the issuer or underlying collateral of a
Other-than-temporary impairment security; payment structure of the security; changes to the
AFS debt and equity securities and HTM debt securities in rating of the security by a rating agency; the volatility of the
unrealized loss positions are analyzed as part of JPMorgan fair value changes; and JPMorgan Chase Bank, N.A.’s intent
Chase Bank, N.A.’s ongoing assessment of OTTI. For most and ability to hold the security until recovery.
types of debt securities, JPMorgan Chase Bank, N.A. For AFS debt securities, JPMorgan Chase Bank, N.A.
considers a decline in fair value to be other-than-temporary recognizes OTTI losses in earnings if JPMorgan Chase Bank,
when JPMorgan Chase Bank, N.A. does not expect to N.A. has the intent to sell the debt security, or if it is more
recover the entire amortized cost basis of the security. For likely than not that JPMorgan Chase Bank, N.A. will be
beneficial interests in securitizations that are rated below required to sell the debt security before recovery of its
“AA” at their acquisition, or that can be contractually amortized cost basis. In these circumstances the
prepaid or otherwise settled in such a way that JPMorgan impairment loss is equal to the full difference between the
Chase Bank, N.A. would not recover substantially all of its amortized cost basis and the fair value of the securities. For

debt securities in an unrealized loss position that JPMorgan Securities gains and losses
Chase Bank, N.A. has the intent and ability to hold, the The following table presents realized gains and losses and
expected cash flows to be received from the securities are OTTI from AFS securities that were recognized in income.
evaluated to determine if a credit loss exists. In the event of
a credit loss, only the amount of impairment associated (in millions) 2017 2016 2015
with the credit loss is recognized in income. Amounts Realized gains $ 1,007 $ 388 $ 351
relating to factors other than credit losses are recorded in
Realized losses (1,073) (230) (127)
OCI.
OTTI losses(a) (7) (28) (22)
JPMorgan Chase Bank, N.A.’s cash flow evaluations take into Net securities gains/(losses) $ (73) $ 130 $ 202
account the factors noted above and expectations of
relevant market and economic data as of the end of the OTTI losses
reporting period. For securities issued in a securitization, Credit losses recognized in income $ — $ (1) $ (1)
JPMorgan Chase Bank, N.A. estimates cash flows Securities JPMorgan Chase Bank,
N.A. intends to sell(a) (7) (27) (21)
considering underlying loan-level data and structural
Total OTTI losses recognized in
features of the securitization, such as subordination, excess income $ (7) $ (28) $ (22)
spread, overcollateralization or other forms of credit
(a) Excludes realized losses on securities sold of $6 million, $24 million
enhancement, and compares the losses projected for the
and $5 million for the years ended December 31, 2017, 2016 and
underlying collateral (“pool losses”) against the level of 2015, respectively, that had been previously reported as an OTTI loss
credit enhancement in the securitization structure to due to the intention to sell the securities.
determine whether these features are sufficient to absorb
Changes in the credit loss component of credit-impaired
the pool losses, or whether a credit loss exists. JPMorgan
debt securities
Chase Bank, N.A. also performs other analyses to support
The cumulative credit loss component, including any
its cash flow projections, such as first-loss analyses or stress
changes therein, of OTTI losses that have been recognized in
scenarios.
income related to AFS debt securities was not material as of
For equity securities, OTTI losses are recognized in earnings and during the years ended December 31, 2017, 2016 and
if JPMorgan Chase Bank, N.A.intends to sell the security. In 2015.
other cases JPMorgan Chase Bank, N.A. considers the
relevant factors noted above, as well as JPMorgan Chase
Bank, N.A.’s intent and ability to retain its investment for a
period of time sufficient to allow for any anticipated
recovery in market value, and whether evidence exists to
support a realizable value equal to or greater than the cost
basis. Any impairment loss on an equity security is equal to
the full difference between the cost basis and the fair value
of the security.

Contractual maturities and yields
The following table presents the amortized cost and estimated fair value at December 31, 2017, of JPMorgan Chase Bank,
N.A.’s investment securities portfolio by contractual maturity.
By remaining maturity Due in one Due after one year Due after five years Due after
December 31, 2017 (in millions) year or less through five years through 10 years 10 years(c) Total
Mortgage-backed securities(a)
Amortized cost $ 3 $ 698 $ 6,119 $ 78,925 $ 85,745
Fair value 3 708 6,278 79,538 86,527
Average yield(b) 4.76% 2.10% 3.09% 3.34% 3.32%
U.S. Treasury and government agencies
Amortized cost $ 60 $ — $ 17,437 $ 5,013 $ 22,510
Fair value 60 — 17,542 5,143 22,745
Average yield(b) 1.72% —% 1.96% 1.76% 1.91%
Obligations of U.S. states and municipalities
Amortized cost $ 73 $ 611 $ 999 $ 26,761 $ 28,444
Fair value 72 620 1,047 28,436 30,175
Average yield(b) 1.78% 2.65% 5.15% 5.44% 5.36%
Certificates of deposit
Amortized cost $ 59 $ — $ — $ — $ 59
Fair value 59 — — — 59
Average yield(b) 0.50% —% —% —% 0.50%
Non-U.S. government debt securities
Amortized cost $ 5,020 $ 13,665 $ 8,215 $ — $ 26,900
Fair value 5,022 13,845 8,427 — 27,294
Average yield(b) 3.09% 1.55% 1.19% —% 1.73%
Corporate debt securities
Amortized cost $ 150 $ 1,159 $ 1,203 $ 145 $ 2,657
Fair value 151 1,197 1,255 154 2,757
Average yield(b) 3.07% 3.60% 3.58% 3.22% 3.54%
Asset-backed securities
Amortized cost $ — $ 3,372 $ 13,046 $ 13,235 $ 29,653
Fair value — 3,353 13,080 13,336 29,769
Average yield(b) —% 2.14% 2.58% 2.35% 2.43%
Total available-for-sale debt securities
Amortized cost $ 5,365 $ 19,505 $ 47,019 $ 124,079 $ 195,968
Fair value 5,367 19,723 47,629 126,607 199,326
Average yield(b) 3.03% 1.83% 2.25% 3.63% 3.10%
Available-for-sale equity securities
Amortized cost $ — $ — $ — $ 38 $ 38
Fair value — — — 38 38
Average yield(b) —% —% —% 0.43% 0.43%
Total available-for-sale securities
Amortized cost $ 5,365 $ 19,505 $ 47,019 $ 124,117 $ 196,006
Fair value 5,367 19,723 47,629 126,645 199,364
Average yield(b) 3.03% 1.83% 2.25% 3.63% 3.10%
Mortgage-backed securities(a)
Amortized Cost $ — $ — $ 49 $ 33,311 $ 33,360
Fair value — — 49 33,756 33,805
Average yield(b) —% —% 2.88% 3.27% 3.27%
Obligations of U.S. states and municipalities
Amortized cost $ — $ 66 $ 2,019 $ 12,288 $ 14,373
Fair value — 65 2,067 12,715 14,847
Average yield(b) —% 4.74% 4.30% 4.72% 4.66%
Total held-to-maturity securities
Amortized cost $ — $ 66 $ 2,068 $ 45,599 $ 47,733
Fair value — 65 2,116 46,471 48,652
Average yield(b) —% 4.75% 4.26% 3.66% 3.69%

(a) As of December 31, 2017, mortgage-backed securities issued by Fannie Mae exceeded 10% of JPMorgan Chase Bank, N.A.’s total stockholder’s equity; the amortized cost and
fair value of such securities was $55.1 billion and $56.0 billion, respectively.
(b) 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. Taxable-equivalent amounts are used
where applicable and reflect the estimated impact of the enactment of the Tax Cuts and Jobs Act (“TCJA”). 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.
(c) Includes securities with no stated maturity. Substantially all of JPMorgan Chase Bank, N.A.’s U.S. residential MBS and collateralized mortgage obligations are due in 10 years
years or more, based on contractual maturity. The estimated weighted-average life, which reflects anticipated future prepayments, is approximately six years for agency
residential MBS, three years for agency residential collateralized mortgage obligations and three years for nonagency residential collateralized mortgage obligations.
Note 12 – Securities financing activities

JPMorgan Chase Bank, N.A. enters into resale agreements, Securities financing transactions expose JPMorgan Chase
repurchase agreements, securities borrowed transactions Bank, N.A. primarily to credit and liquidity risk. To manage
and securities loaned transactions (collectively, “securities these risks, JPMorgan Chase Bank, N.A. monitors the value
financing agreements”) primarily to finance JPMorgan of the underlying securities (predominantly high-quality
Chase Bank, N.A.’s inventory positions, acquire securities to securities collateral, including government-issued debt and
cover short positions, accommodate customers’ financing agency MBS) that it has received from or provided to its
needs, settle other securities obligations and to deploy counterparties compared to the value of cash proceeds and
JPMorgan Chase Bank, N.A.’s excess cash. exchanged collateral, and either requests additional
collateral or returns securities or collateral when
Securities financing agreements are treated as appropriate. Margin levels are initially established based
collateralized financings on JPMorgan Chase Bank, N.A.’s upon the counterparty, the type of underlying securities,
Consolidated balance sheets. Resale and repurchase and the permissible collateral, and are monitored on an
agreements are generally carried at the amounts at which ongoing basis.
the securities will be subsequently sold or repurchased. In resale agreements and securities borrowed transactions,
Securities borrowed and securities loaned transactions are JPMorgan Chase Bank, N.A. is exposed to credit risk to the
generally carried at the amount of cash collateral advanced extent that the value of the securities received is less than
or received. Where appropriate under applicable accounting initial cash principal advanced and any collateral amounts
guidance, resale and repurchase agreements with the same exchanged. In repurchase agreements and securities loaned
counterparty are reported on a net basis. For further transactions, credit risk exposure arises to the extent that
discussion of the offsetting of assets and liabilities, see the value of underlying securities exceeds the value of the
Note 1. Fees received and paid in connection with securities initial cash principal advanced, and any collateral amounts
financing agreements are recorded in interest income and exchanged.
interest expense on the Consolidated statements of income. Additionally, JPMorgan Chase Bank, N.A. typically enters
JPMorgan Chase Bank, N.A. has elected the fair value option into master netting agreements and other similar
for certain securities financing agreements. For further arrangements with its counterparties, which provide for the
information regarding the fair value option, see Note 4. The right to liquidate the underlying securities and any
securities financing agreements for which the fair value collateral amounts exchanged in the event of a
option has been elected are reported within securities counterparty default. It is also JPMorgan Chase Bank, N.A.’s
purchased under resale agreements, securities loaned or policy to take possession, where possible, of the securities
sold under repurchase agreements, and securities borrowed underlying resale agreements and securities borrowed
on the Consolidated balance sheets. Generally, for transactions. For further information regarding assets
agreements carried at fair value, current-period interest pledged and collateral received in securities financing
accruals are recorded within interest income and interest agreements, see Note 26.
expense, with changes in fair value reported in principal As a result of JPMorgan Chase Bank, N.A.’s credit risk
transactions revenue. However, for financial instruments mitigation practices with respect to resale and securities
containing embedded derivatives that would be separately borrowed agreements as described above, JPMorgan Chase
accounted for in accordance with accounting guidance for Bank, N.A. did not hold any reserves for credit impairment
hybrid instruments, all changes in fair value, including any with respect to these agreements as of December 31, 2017
interest elements, are reported in principal transactions and 2016.
revenue.

The table below summarizes the gross and net amounts of JPMorgan Chase Bank, N.A.’s securities financing agreements, as of
December 31, 2017, and 2016. When JPMorgan Chase Bank, N.A. has obtained an appropriate legal opinion with respect to
the master netting agreement with a counterparty and where other relevant netting criteria under U.S. GAAP are met,
JPMorgan Chase Bank, N.A. nets, on the Consolidated balance sheets, the balances outstanding under its securities financing
agreements with the same counterparty. In addition, JPMorgan Chase Bank, N.A. exchanges securities and/or cash collateral
with its counterparties; this collateral also reduces the economic exposure with the counterparty. Such collateral, along with
securities financing balances that do not meet all these relevant netting criteria under U.S. GAAP, is presented as “Amounts not
nettable on the Consolidated balance sheets,” and reduces the “Net amounts” presented below, if JPMorgan Chase Bank, N.A.
has an appropriate legal opinion with respect to the master netting agreement with the counterparty. Where a legal opinion
has not been either sought or obtained, the securities financing balances are presented gross in the “Net amounts” below, and
related collateral does not reduce the amounts presented.
2017
Amounts netted on Amounts presented Amounts not nettable

the Consolidated on the Consolidated on the Consolidated
December 31, (in millions) Gross amounts balance sheets balance sheets(b) balance sheets(c) Net amounts(d)
Assets
Securities purchased under resale agreements $ 346,606 $ (191,712) $ 154,894 $ (146,035) $ 8,859
Securities borrowed 40,349 (1,340) 39,009 (36,386) 2,623
Liabilities
Securities sold under repurchase agreements $ 275,452 $ (191,712) $ 83,740 $ (80,769) $ 2,971
Securities loaned and other(a) 17,534 (1,340) 16,194 (16,017) 177
2016
Amounts netted on Amounts presented Amounts not nettable

the Consolidated on the Consolidated on the Consolidated
December 31, (in millions) Gross amounts balance sheets balance sheets(b) balance sheets(c) Net amounts(d)
Assets
Securities purchased under resale agreements $ 320,678 $ (148,236) $ 172,442 $ (165,651) $ 6,791
Securities borrowed 32,497 — 32,497 (30,175) 2,322
Liabilities
Securities sold under repurchase agreements $ 214,823 $ (148,236) $ 66,587 $ (64,082) $ 2,505
Securities loaned and other(a) 14,996 — 14,996 (14,093) 903
(a) Includes securities-for-securities lending transactions of $7.5 billion at both December 31, 2017 and 2016, accounted for at fair value, where JPMorgan
Chase Bank, N.A. is acting as lender. These amounts are presented within accounts payable and other liabilities in the Consolidated balance sheets.
(b) Includes securities financing agreements accounted for at fair value. At December 31, 2017 and 2016, included securities purchased under resale
agreements of $2.9 billion and $5.3 billion, respectively, and securities sold under agreements to repurchase of $3.4 billion and $399 million,
respectively. There were $3.0 billion of securities borrowed at December 31, 2017, and there were no securities borrowed at December 31, 2016. There
were no securities loaned accounted for at fair value in either period.
(c) 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 asset or liability with that counterparty.
(d) 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, 2017 and 2016, included $6.9 billion and $4.5 billion, respectively, of securities
purchased under resale agreements; $1.6 billion and $1.9 billion, respectively, of securities borrowed; $441 million and $523 million, respectively, of
securities sold under agreements to repurchase; and $2 million and $11 million, respectively, of securities loaned and other.

The tables below present as of December 31, 2017, and 2016 the types of financial assets pledged in securities financing
agreements and the remaining contractual maturity of the securities financing agreements.
Gross liability balance

2017 2016
Securities sold Securities sold
under repurchase Securities loaned under repurchase Securities loaned
December 31, (in millions) agreements and other(b) agreements and other(b)
U.S. government agencies(a) $ 3,046 $ — $ 783 $ —
Residential - nonagency 832 — 2,076 —
Commercial - nonagency 46 — 139 —
U.S. Treasury and government agencies(a) 88,982 7,010 52,023 7,036
Non-U.S. government debt 172,197 2,585 150,599 1,617
Corporate debt securities 9,910 411 8,097 465
Asset-backed securities 439 1 1,106 —
Equity securities — 7,527 — 5,878
Total $ 275,452 $ 17,534 $ 214,823 $ 14,996
Remaining contractual maturity of the agreements
Overnight and Greater than

2017 (in millions) continuous Up to 30 days 30 – 90 days 90 days Total
Total securities sold under repurchase agreements $ 65,759 $ 145,226 $ 43,892 $ 20,575 $ 275,452
Total securities loaned and other (b)
15,683 166 — 1,685 17,534
Remaining contractual maturity of the agreements
Overnight and Greater than

2016 (in millions) continuous Up to 30 days 30 – 90 days 90 days Total
Total securities sold under repurchase agreements $ 31,776 $ 122,979 $ 39,398 $ 20,670 $ 214,823
Total securities loaned and other(b) 12,880 1,388 520 208 14,996
(a) Prior period amounts were revised to conform with the current period presentation.
(b) Includes securities-for-securities lending transactions of $7.5 billion at both December 31, 2017 and 2016, accounted for at fair value, where JPMorgan
Chase Bank, N.A. is acting as lender. These amounts are presented within accounts payable and other liabilities on the Consolidated balance sheets.
Transfers not qualifying for sale accounting

At December 31, 2017 and 2016, JPMorgan Chase Bank, N.A. held $1.5 billion and $5.8 billion, 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 predominantly in short-term borrowings on
the Consolidated balance sheets.

Note 13 – Loans
Loan accounting framework balance, all interest cash receipts are applied to reduce the
The accounting for a loan depends on management’s carrying value of the loan (the cost recovery method). For
strategy for the loan, and on whether the loan was credit- consumer loans, application of this policy typically results in
impaired at the date of acquisition. JPMorgan Chase Bank, JPMorgan Chase Bank, N.A. recognizing interest income on
N.A. accounts for loans based on the following categories: nonaccrual consumer loans on a cash basis.
• Originated or purchased loans held-for-investment (i.e., A loan may be returned to accrual status when repayment is
“retained”), other than PCI loans reasonably assured and there has been demonstrated
• Loans held-for-sale performance under the terms of the loan or, if applicable,
the terms of the restructured loan.
• Loans at fair value
• PCI loans held-for-investment As permitted by regulatory guidance, credit card loans are
generally exempt from being placed on nonaccrual status;
The following provides a detailed accounting discussion of accordingly, interest and fees related to credit card loans
these loan categories: continue to accrue until the loan is charged off or paid in
Loans held-for-investment (other than PCI loans) full. However, JPMorgan Chase Bank, N.A. separately
Originated or purchased loans held-for-investment, other establishes an allowance, which is offset against loans and
than PCI loans, are recorded at the principal amount charged to interest income, for the estimated uncollectible
outstanding, net of the following: charge-offs; interest portion of accrued and billed interest and fee income on
applied to principal (for loans accounted for on the cost credit card loans. The allowance is established with a charge
recovery method); unamortized discounts and premiums; to interest income and is reported as an offset to loans.
and net deferred loan fees or costs. Credit card loans also Allowance for loan losses
include billed finance charges and fees net of an allowance The allowance for loan losses represents the estimated
for uncollectible amounts. probable credit losses inherent in the held-for-investment
Interest income loan portfolio at the balance sheet date and is recognized
Interest income on performing loans held-for-investment, on the balance sheet as a contra asset, which brings the
other than PCI loans, is accrued and recognized as interest recorded investment to the net carrying value. Changes in
income at the contractual rate of interest. Purchase price the allowance for loan losses are recorded in the provision
discounts or premiums, as well as net deferred loan fees or for credit losses on JPMorgan Chase Bank, N.A.’s
costs, are amortized into interest income over the Consolidated statements of income. See Note 14 for further
contractual life of the loan to produce a level rate of return. information on JPMorgan Chase Bank, N.A.’s accounting
policies for the allowance for loan losses.
Nonaccrual loans
Nonaccrual loans are those on which the accrual of interest Charge-offs
has been suspended. Loans (other than credit card loans Consumer loans, other than risk-rated business banking and
and certain consumer loans insured by U.S. government auto loans, and PCI loans, are generally charged off or
agencies) are placed on nonaccrual status and considered charged down to the net realizable value of the underlying
nonperforming when full payment of principal and interest collateral (i.e., fair value less costs to sell), with an offset to
is not expected, regardless of delinquency status, or when the allowance for loan losses, upon reaching specified
principal and interest has been in default for a period of 90 stages of delinquency in accordance with standards
days or more, unless the loan is both well-secured and in established by the Federal Financial Institutions
the process of collection. A loan is determined to be past Examination Council (“FFIEC”). Residential real estate loans
due when the minimum payment is not received from the and non-modified credit card loans are generally charged
borrower by the contractually specified due date or for off no later than 180 days past due. Scored auto, student
certain loans (e.g., residential real estate loans), when a and modified credit card loans are charged off no later than
monthly payment is due and unpaid for 30 days or more. 120 days past due.
Finally, collateral-dependent loans are typically maintained Certain consumer loans will be charged off or charged down
on nonaccrual status. to their net realizable value earlier than the FFIEC charge-
On the date a loan is placed on nonaccrual status, all off standards in certain circumstances as follows:
interest accrued but not collected is reversed against • Loans modified in a troubled debt restructuring (“TDR”)
interest income. In addition, the amortization of deferred that are determined to be collateral-dependent.
amounts is suspended. Interest income on nonaccrual loans
may be recognized as cash interest payments are received • Loans to borrowers who have experienced an event that
(i.e., on a cash basis) if the recorded loan balance is suggests a loss is either known or highly certain are
deemed fully collectible; however, if there is doubt subject to accelerated charge-off standards (e.g.,
regarding the ultimate collectibility of the recorded loan residential real estate and auto loans are charged off

within 60 days of receiving notification of a bankruptcy Loans held-for-sale

filing). Held-for-sale loans are measured at the lower of cost or fair
value, with valuation changes recorded in noninterest
• Auto loans upon repossession of the automobile.
revenue. For consumer loans, the valuation is performed on
Other than in certain limited circumstances, JPMorgan a portfolio basis. For wholesale loans, the valuation is
Chase Bank, N.A. typically does not recognize charge-offs performed on an individual loan basis.
on government-guaranteed loans.
Interest income on loans held-for-sale is accrued and
Wholesale loans, risk-rated business banking loans and risk- recognized based on the contractual rate of interest.
rated auto loans are charged off when it is highly certain
Loan origination fees or costs and purchase price discounts
that a loss has been realized, including situations where a
or premiums are deferred in a contra loan account until the
loan is determined to be both impaired and collateral-
related loan is sold. The deferred fees or costs and
dependent. The determination of whether to recognize a
discounts or premiums are an adjustment to the basis of the
charge-off includes many factors, including the
loan and therefore are included in the periodic
prioritization of JPMorgan Chase Bank, N.A.’s claim in
determination of the lower of cost or fair value adjustments
bankruptcy, expectations of the workout/restructuring of
and/or the gain or loss recognized at the time of sale.
the loan and valuation of the borrower’s equity or the loan
collateral. Held-for-sale loans are subject to the nonaccrual policies
described above.
When a loan is charged down to the estimated net realizable
value, the determination of the fair value of the collateral Because held-for-sale loans are recognized at the lower of
depends on the type of collateral (e.g., securities, real cost or fair value, JPMorgan Chase Bank, N.A.’s allowance
estate). In cases where the collateral is in the form of liquid for loan losses and charge-off policies do not apply to these
securities, the fair value is based on quoted market prices loans.
or broker quotes. For illiquid securities or other financial
Loans at fair value
assets, the fair value of the collateral is estimated using a
Loans used in a market-making strategy or risk managed on
discounted cash flow model.
a fair value basis are measured at fair value, with changes
For residential real estate loans, collateral values are based in fair value recorded in noninterest revenue.
upon external valuation sources. When it becomes likely
Interest income on these loans is accrued and recognized
that a borrower is either unable or unwilling to pay,
based on the contractual rate of interest. Changes in fair
JPMorgan Chase Bank, N.A. obtains a broker’s price opinion
value are recognized in noninterest revenue. Loan
of the home based on an exterior-only valuation (“exterior
origination fees are recognized upfront in noninterest
opinions”), which is then updated at least every six months
revenue. Loan origination costs are recognized in the
thereafter. As soon as practicable after JPMorgan Chase
associated expense category as incurred.
Bank, N.A. receives the property in satisfaction of a debt
(e.g., by taking legal title or physical possession), JPMorgan Because these loans are recognized at fair value, JPMorgan
Chase Bank, N.A. generally obtains an appraisal based on an Chase Bank, N.A.’s allowance for loan losses and charge-off
inspection that includes the interior of the home (“interior policies do not apply to these loans.
appraisals”). Exterior opinions and interior appraisals are
See Note 4 for further information on JPMorgan Chase
discounted based upon JPMorgan Chase Bank, N.A.’s
Bank, N.A.’s elections of fair value accounting under the fair
experience with actual liquidation values as compared with
value option. See Note 3 and Note 4 for further information
the estimated values provided by exterior opinions and
on loans carried at fair value and classified as trading
interior appraisals, considering state-specific factors.
assets.
For commercial real estate loans, collateral values are
PCI loans
generally based on appraisals from internal and external
PCI loans held-for-investment are initially measured at fair
valuation sources. Collateral values are typically updated
value. PCI loans have evidence of credit deterioration since
every six to twelve months, either by obtaining a new
the loan’s origination date and therefore it is probable, at
appraisal or by performing an internal analysis, in
acquisition, that all contractually required payments will not
accordance with JPMorgan Chase Bank, N.A.’s policies.
be collected. Because PCI loans are initially measured at fair
JPMorgan Chase Bank, N.A. also considers both borrower-
value, which includes an estimate of future credit losses, no
and market-specific factors, which may result in obtaining
allowance for loan losses related to PCI loans is recorded at
appraisal updates or broker price opinions at more frequent
the acquisition date. See page 87 of this Note for
intervals.
information on accounting for PCI loans subsequent to their
acquisition.

Loan classification changes Loans, except for credit card loans, modified in a TDR are
Loans in the held-for-investment portfolio that management generally placed on nonaccrual status, although in many
decides to sell are transferred to the held-for-sale portfolio cases such loans were already on nonaccrual status prior to
at the lower of cost or fair value on the date of transfer. modification. These loans may be returned to performing
Credit-related losses are charged against the allowance for status (the accrual of interest is resumed) if the following
loan losses; non-credit related losses such as those due to criteria are met: (i) the borrower has performed under the
changes in interest rates or foreign currency exchange rates modified terms for a minimum of six months and/or six
are recognized in noninterest revenue. payments, and (ii) JPMorgan Chase Bank, N.A. has an
expectation that repayment of the modified loan is
In the event that management decides to retain a loan in
reasonably assured based on, for example, the borrower’s
the held-for-sale portfolio, the loan is transferred to the
debt capacity and level of future earnings, collateral values,
held-for-investment portfolio at the lower of cost or fair
LTV ratios, and other current market considerations. In
value on the date of transfer. These loans are subsequently
certain limited and well-defined circumstances in which the
assessed for impairment based on JPMorgan Chase Bank,
loan is current at the modification date, such loans are not
N.A.’s allowance methodology. For a further discussion of
placed on nonaccrual status at the time of modification.
the methodologies used in establishing JPMorgan Chase
Bank, N.A.’s allowance for loan losses, see Note 14. Because loans modified in TDRs are considered to be
impaired, these loans are measured for impairment using
Loan modifications
JPMorgan Chase Bank, N.A.’s established asset-specific
JPMorgan Chase Bank, N.A. seeks to modify certain loans in
allowance methodology, which considers the expected re-
conjunction with its loss-mitigation activities. Through the
default rates for the modified loans. A loan modified in a
modification, JPMorgan Chase Bank, N.A. grants one or
TDR generally remains subject to the asset-specific
more concessions to a borrower who is experiencing
allowance methodology throughout its remaining life,
financial difficulty in order to minimize JPMorgan Chase
regardless of whether the loan is performing and has been
Bank, N.A.’s economic loss and avoid foreclosure or
returned to accrual status and/or the loan has been
repossession of the collateral, and to ultimately maximize
removed from the impaired loans disclosures (i.e., loans
payments received by JPMorgan Chase Bank, N.A. from the
restructured at market rates). For further discussion of the
borrower. The concessions granted vary by program and by
methodology used to estimate JPMorgan Chase Bank, N.A.’s
borrower-specific characteristics, and may include interest
asset-specific allowance, see Note 14.
rate reductions, term extensions, payment deferrals,
principal forgiveness, or the acceptance of equity or other Foreclosed property
assets in lieu of payments. JPMorgan Chase Bank, N.A. acquires property from
borrowers through loan restructurings, workouts, and
Such modifications are accounted for and reported as TDRs.
foreclosures. Property acquired may include real property
A loan that has been modified in a TDR is generally
(e.g., residential real estate, land, and buildings) and
considered to be impaired until it matures, is repaid, or is
commercial and personal property (e.g., automobiles,
otherwise liquidated, regardless of whether the borrower
aircraft, railcars, and ships).
performs under the modified terms. In certain limited
cases, the effective interest rate applicable to the modified JPMorgan Chase Bank, N.A. recognizes foreclosed property
loan is at or above the current market rate at the time of upon receiving assets in satisfaction of a loan (e.g., by
the restructuring. In such circumstances, and assuming that taking legal title or physical possession). For loans
the loan subsequently performs under its modified terms collateralized by real property, JPMorgan Chase Bank, N.A.
and JPMorgan Chase Bank, N.A. expects to collect all generally recognizes the asset received at foreclosure sale
contractual principal and interest cash flows, the loan is or upon the execution of a deed in lieu of foreclosure
disclosed as impaired and as a TDR only during the year of transaction with the borrower. Foreclosed assets are
the modification; in subsequent years, the loan is not reported in other assets on the Consolidated balance sheets
disclosed as an impaired loan or as a TDR so long as and initially recognized at fair value less costs to sell. Each
repayment of the restructured loan under its modified quarter the fair value of the acquired property is reviewed
terms is reasonably assured. 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.

Loan portfolio
JPMorgan Chase Bank, N.A.’s loan portfolio is divided into three portfolio segments, which are the same segments used by
JPMorgan Chase Bank, N.A. to determine the allowance for loan losses: Consumer, excluding credit card; Credit card; and
Wholesale. Within each portfolio segment JPMorgan Chase Bank, N.A. monitors and assesses the credit risk in the following
classes of loans, based on the risk characteristics of each loan class.
Consumer, excluding Credit card Wholesale(g)

credit card(a)
Residential real estate – excluding PCI • Credit card loans(f) • Commercial and industrial
• Residential mortgage(b) • Real estate
• Home equity(c) • Financial institutions
Other consumer loans • Government agencies
• Auto(d) • Other(h)
• Consumer & business banking(d)(e)
• Student
Residential real estate – PCI
• Home equity
• Prime mortgage
• Subprime mortgage
• Option ARMs
(a) Includes loans held in the consumer & community banking business, prime mortgage and home equity loans held in the asset & wealth management
business and prime mortgage loans held in the corporate function.
(b) Predominantly includes prime (including option ARMs) and subprime loans.
(c) Includes senior and junior lien home equity loans.
(d) Includes certain business banking and auto dealer risk-rated loans that apply the wholesale methodology for determining the allowance for loan losses;
these loans are managed by the consumer & community banking business, and therefore, for consistency in presentation, are included with the other
consumer loan classes.
(e) Predominantly includes business banking loans.
(f) Predominantly includes credit card loans acquired pursuant to a participation agreement with Chase Bank USA, N.A., a related-party, and subsequent
draws on revolving credit lines associated with the participation agreement.
(g) Includes loans held in the corporate & investment banking, commercial banking and asset & wealth management businesses and in the corporate function.
Excludes prime mortgage and home equity loans held in the asset & wealth management businesses and prime mortgage loans held in the corporate
function. Classes are internally defined and may not align with regulatory definitions.
(h) Includes loans to: individuals; SPEs; and private education and civic organizations. For more information on SPEs, see Note 15.
The following tables summarize JPMorgan Chase Bank, N.A.’s loan balances by portfolio segment.
December 31, 2017 Consumer, excluding
(in millions) credit card Credit card(a) Wholesale Total
(b)
Retained $ 372,517 $ 40,911 $ 406,926 $ 820,354
Held-for-sale 128 124 3,099 3,351
At fair value — — 2,508 2,508
Total $ 372,645 $ 41,035 $ 412,533 $ 826,213
December 31, 2016 Consumer, excluding

(in millions) credit card Credit card(a) Wholesale Total
(b)
Retained $ 364,360 $ 35,773 $ 387,132 $ 787,265
Held-for-sale 238 105 2,283 2,626
At fair value — — 2,228 2,228
Total $ 364,598 $ 35,878 $ 391,643 $ 792,119
(a) Includes accrued interest and fees net of an allowance for the uncollectible portion of accrued interest and fee income.
(b) Loans (other than PCI loans and 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, 2017 and 2016.

The following table provides information about the carrying value of retained loans purchased, sold and reclassified to held-
for-sale during the periods indicated. This table excludes loans recorded at fair value. JPMorgan Chase Bank, N.A. manages its
exposure to credit risk on an ongoing basis. Selling loans is one way that JPMorgan Chase Bank, N.A. reduces its credit
exposures.
2017
Year ended December 31, Consumer, excluding
(in millions) credit card Credit card Wholesale Total
(a)(b)
Purchases $ 3,461 $ — $ 1,799 $ 5,260
Sales 3,405 — 11,063 14,468
(c)
Retained loans reclassified to held-for-sale 6,340 — 1,229 7,569
2016
(a)(b)
Purchases $ 4,116 $ — $ 1,448 $ 5,564
Sales 6,368 — 8,739 15,107
Retained loans reclassified to held-for-sale 321 — 2,381 2,702
2015
(a)(b)
Purchases $ 5,279 $ — $ 1,066 $ 6,345
Sales 5,049 — 9,195 14,244
Retained loans reclassified to held-for-sale 1,439 79 642 2,160
(a) Purchases predominantly represent JPMorgan Chase Bank, N.A.’s voluntary repurchase of certain delinquent loans from loan pools as permitted by
Government National Mortgage Association (“Ginnie Mae”) guidelines. JPMorgan Chase Bank, N.A. 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, the Federal Housing
Administration (“FHA”), Rural Housing Service (“RHS”) and/or the U.S. Department of Veterans Affairs (“VA”).
(b) Excludes purchases of retained loans sourced through the correspondent origination channel and underwritten in accordance with JPMorgan Chase Bank,
N.A.’s standards. Such purchases were $23.5 billion, $30.4 billion and $50.3 billion for the years ended December 31, 2017, 2016 and 2015,
respectively.
(c) Includes the JPMorgan Chase Bank, N.A.’s student loan portfolio which was sold in 2017.
The following table provides information about gains and losses on loan sales, including lower of cost or fair value adjustments,
on loan sales by portfolio segment.
Net gains/(losses) on sales of loans (including lower of cost or fair value adjustments) (a)
Consumer, excluding credit card(b) $ (126) $ 231 $ 305

Credit card (8) (12) (3)
Wholesale 38 26 15
Total net gains/(losses) on sales of loans (including lower of cost or fair value adjustments) $ (96) $ 245 $ 317
(a) Excludes sales related to loans accounted for at fair value.

(b) Includes amounts related to JPMorgan Chase Bank, N.A.’s student loan portfolio which was sold in 2017.

Consumer, excluding credit card, loan portfolio

Consumer loans, excluding credit card loans, consist Delinquency rates are a primary credit quality indicator for
primarily of residential mortgages, home equity loans and consumer loans. Loans that are more than 30 days past due
lines of credit, auto loans, consumer and business banking provide an early warning of borrowers who may be
loans and student loans, with a focus on serving the prime experiencing financial difficulties and/or who may be unable
consumer credit market. The portfolio also includes home or unwilling to repay the loan. As the loan continues to age,
equity loans secured by junior liens, prime mortgage loans it becomes more clear whether the borrower is likely either
with an interest-only payment period, and certain payment- unable or unwilling to pay. In the case of residential real
option loans that may result in negative amortization. estate loans, late-stage delinquencies (greater than 150
days past due) are a strong indicator of loans that will
The table below provides information about retained
ultimately result in a foreclosure or similar liquidation
consumer loans, excluding credit card, by class. In 2017,
transaction. In addition to delinquency rates, other credit
JPMorgan Chase Bank, N.A sold its student loan portfolio.
quality indicators for consumer loans vary based on the
December 31, (in millions) 2017 2016 class of loan, as follows:
Residential real estate – excluding PCI For residential real estate loans, including both non-PCI and
Residential mortgage(a) $ 216,468 $ 192,455 PCI portfolios, the current estimated LTV ratio, or the
Home equity 33,442 39,049 combined LTV ratio in the case of junior lien loans, is an
Other consumer loans indicator of the potential loss severity in the event of
Auto 66,242 65,814 default. Additionally, LTV or combined LTV ratios can
Consumer & business banking (a)
25,789 24,306 provide insight into a borrower’s continued willingness to
Student(a) — 7,057
pay, as the delinquency rate of high-LTV loans tends to be
greater than that for loans where the borrower has equity
Residential real estate – PCI
in the collateral. The geographic distribution of the loan
Home equity 10,799 12,902
collateral also provides insight as to the credit quality of the
Prime mortgage 6,479 7,602
portfolio, as factors such as the regional economy, home
Subprime mortgage 2,609 2,941 price changes and specific events such as natural disasters,
Option ARMs 10,689 12,234 will affect credit quality. The borrower’s current or
Total retained loans $ 372,517 $ 364,360 “refreshed” FICO score is a secondary credit-quality
(a) Certain loan portfolios have been reclassified. The prior period amounts have
indicator for certain loans, as FICO scores are an indication
been revised to conform with the current period presentation. of the borrower’s credit payment history. Thus, a loan to a
borrower with a low FICO score (less than 660) is
considered to be of higher risk than a loan to a borrower
with a higher FICO score. Further, a loan to a borrower with
a high LTV ratio and a low FICO score is at greater risk of
default than a loan to a borrower that has both a high LTV
ratio and a high FICO score.
• For scored auto and scored business banking loans,
geographic distribution is an indicator of the credit
performance of the portfolio. Similar to residential real
estate loans, geographic distribution provides insights
into the portfolio performance based on regional
economic activity and events.
• Risk-rated business banking and auto loans are similar
to wholesale loans in that the primary credit quality
indicators are the risk rating that is assigned to the loan
and whether the loans are considered to be criticized
and/or nonaccrual. Risk ratings are reviewed on a
regular and ongoing basis by Credit Risk Management
and are adjusted as necessary for updated information
about borrowers’ ability to fulfill their obligations. For
further information about risk-rated wholesale loan
credit quality indicators, see page 92 of this Note.

Residential real estate — excluding PCI loans
The following table provides information by class for residential real estate — excluding retained PCI loans.
Residential real estate – excluding PCI loans

Total residential real estate –
Residential mortgage(g) Home equity excluding PCI
December 31,
(in millions, except ratios) 2017 2016 2017 2016 2017 2016
Loan delinquency(a)
Current $ 208,692 $ 184,109 $ 32,383 $ 37,927 $ 241,075 $ 222,036
30–149 days past due 4,230 3,824 671 646 4,901 4,470
150 or more days past due 3,546 4,522 388 476 3,934 4,998
Total retained loans $ 216,468 $ 192,455 $ 33,442 $ 39,049 $ 249,910 $ 231,504
% of 30+ days past due to total retained loans(b) 0.77% 0.75% 3.17% 2.87% 1.09% 1.11%
90 or more days past due and government guaranteed(c) $ 4,170 $ 4,856 $ — $ — $ 4,170 $ 4,856
Nonaccrual loans 2,172 2,253 1,610 1,844 3,782 4,097
Current estimated LTV ratios(d)(e)
Greater than 125% and refreshed FICO scores:

Equal to or greater than 660 $ 37 $ 30 $ 10 $ 70 $ 47 $ 100
Less than 660 19 48 3 15 22 63
101% to 125% and refreshed FICO scores:

Equal to or greater than 660 36 135 296 668 332 803
Less than 660 88 177 95 220 183 397

Equal to or greater than 660 4,369 4,025 1,675 2,960 6,044 6,985
Less than 660 483 717 569 945 1,052 1,662
Less than 80% and refreshed FICO scores:
Equal to or greater than 660 194,752 169,570 25,255 27,307 220,007 196,877
Less than 660 6,945 6,753 3,850 4,380 10,795 11,133
No FICO/LTV available 1,257 1,649 1,689 2,484 2,946 4,133
U.S. government-guaranteed 8,482 9,351 — — 8,482 9,351
Geographic region
California $ 68,855 $ 59,802 $ 6,580 $ 7,641 $ 75,435 $ 67,443
New York 27,470 24,912 6,864 7,975 34,334 32,887
Illinois 14,501 13,125 2,520 2,946 17,021 16,071
Texas 12,507 10,771 2,021 2,224 14,528 12,995
Florida 9,596 8,393 1,847 2,132 11,443 10,525
New Jersey 7,142 6,374 1,957 2,252 9,099 8,626
Washington 6,962 5,450 1,026 1,228 7,988 6,678
Colorado 7,335 6,306 631 677 7,966 6,983
Massachusetts 6,323 5,834 295 371 6,618 6,205
Arizona 4,109 3,595 1,438 1,771 5,547 5,366
All other(f) 51,668 47,893 8,263 9,832 59,931 57,725
(a) Individual delinquency classifications include mortgage loans insured by U.S. government agencies as follows: current included $2.4 billion and $2.5 billion; 30–149 days past
due included $3.2 billion and $3.1 billion; and 150 or more days past due included $2.9 billion and $3.8 billion at December 31, 2017 and 2016, respectively.
(b) At December 31, 2017 and 2016, residential mortgage loans excluded mortgage loans insured by U.S. government agencies of $6.1 billion and $6.9 billion, respectively, that
are 30 or more days past due. These amounts have been excluded based upon the government guarantee.
(c) These balances, which are 90 days or more past due, were excluded from nonaccrual loans as the loans are guaranteed by U.S. government agencies. Typically, the principal
balance of the loans is insured and interest is guaranteed at a specified reimbursement rate subject to meeting agreed-upon servicing guidelines. At December 31, 2017, and
2016, these balances included $1.5 billion and $2.2 billion, respectively, of loans that are no longer accruing interest based on the agreed-upon servicing guidelines. For the
remaining balance, interest is being accrued at the guaranteed reimbursement rate. There were no loans that were not guaranteed by U.S. government agencies that are 90 or
more days past due and still accruing interest at December 31, 2017, and 2016.
(d) 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. These property values do not represent actual appraised loan level collateral values; as such, the resulting ratios are necessarily imprecise and
should be viewed as estimates. Current estimated combined LTV for junior lien home equity loans considers all available lien positions, as well as unused lines, related to the
property.
(e) Refreshed FICO scores represent each borrower’s most recent credit score, which is obtained by JPMorgan Chase Bank, N.A. on at least a quarterly basis.
(f) At December 31, 2017 and 2016, included mortgage loans insured by U.S. government agencies of $8.5 billion and $9.4 billion, respectively.
(g) Certain loan portfolios have been reclassified. The prior period amounts have been revised to conform with the current period presentation.

The following table represents JPMorgan Chase Bank, N.A.’s delinquency statistics for junior lien home equity loans and lines as
of December 31, 2017 and 2016.
Total loans Total 30+ day delinquency rate

December 31, (in millions, except ratios) 2017 2016 2017 2016
HELOCs:(a)
Within the revolving period(b) $ 6,360 $ 10,297 0.50% 1.27%
Beyond the revolving period 13,527 13,265 3.56 3.05
HELOANs 1,371 1,861 3.50 2.85
Total $ 21,258 $ 25,423 2.64% 2.32%
(a) These HELOCs are predominantly revolving loans for a 10-year period, after which time the HELOC converts to a loan with a 20-year amortization period,
but also include HELOCs that allow interest-only payments beyond the revolving period.
(b) JPMorgan Chase Bank, N.A. manages the risk of HELOCs during their revolving period by closing or reducing the undrawn line to the extent permitted by
law when borrowers are experiencing financial difficulty.
HELOCs beyond the revolving period and HELOANs have higher delinquency rates than HELOCs 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 HELOCs within the revolving period. The higher delinquency rates associated with
amortizing HELOCs and HELOANs are factored into JPMorgan Chase Bank, N.A.’s allowance for loan losses.
Impaired loans
The table below sets forth information about JPMorgan Chase Bank, N.A.’s residential real estate impaired loans, excluding PCI
loans. These loans are considered to be impaired as they have been modified in a TDR. All impaired loans are evaluated for an
asset-specific allowance as described in Note 14.
Total residential real estate

Residential mortgage Home equity – excluding PCI
December 31,
(in millions) 2017 2016 2017 2016 2017 2016
Impaired loans
With an allowance $ 4,402 $ 4,681 $ 1,236 $ 1,266 $ 5,638 $ 5,947
Without an allowance (a)
1,211 1,341 882 998 2,093 2,339
Total impaired loans(b)(c) $ 5,613 $ 6,022 $ 2,118 $ 2,264 $ 7,731 $ 8,286
Allowance for loan losses related to
impaired loans $ 62 $ 68 $ 111 $ 121 $ 173 $ 189
Unpaid principal balance of impaired
loans(d) 7,732 8,274 3,701 3,846 11,433 12,120
Impaired loans on nonaccrual status (e)
1,741 1,752 1,031 1,116 2,772 2,868
(a) Represents collateral-dependent residential real estate loans that are charged off to the fair value of the underlying collateral less costs to sell. JPMorgan
Chase Bank, N.A. 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 TDRs, regardless of their delinquency status. At December 31,
2017, Chapter 7 residential real estate loans included approximately 12% of home equity and 15% of residential mortgages that were 30 days or more
past due.
(b) At December 31, 2017 and 2016, $3.8 billion and $3.4 billion, respectively, of loans modified subsequent to repurchase from Ginnie Mae in accordance
with the standards of the appropriate government agency (i.e., FHA, VA, RHS) are not included in the table above. When such loans perform subsequent to
modification in accordance with Ginnie Mae guidelines, they are generally sold back into Ginnie Mae loan pools. Modified loans that do not re-perform
become subject to foreclosure.
(c) Predominantly all residential real estate impaired loans, excluding PCI loans, are in the U.S.
(d) Represents the contractual amount of principal owed at December 31, 2017 and 2016. The unpaid principal balance differs from the impaired loan
balances due to various factors including charge-offs, net deferred loan fees or costs, and unamortized discounts or premiums on purchased loans.
(e) As of December 31, 2017 and 2016, nonaccrual loans included $2.2 billion and $2.3 billion, respectively, of TDRs for which the borrowers were less than
90 days past due. For additional information about loans modified in a TDR that are on nonaccrual status refer to the Loan accounting framework on pages
75–77 of this Note.

The following table presents average impaired loans and the related interest income reported by JPMorgan Chase Bank, N.A.
Interest income on Interest income on impaired

Year ended December 31, Average impaired loans impaired loans(a) loans on a cash basis(a)
(in millions) 2017 2016 2015 2017 2016 2015 2017 2016 2015
Residential mortgage $ 5,789 $ 6,365 $ 7,092 $ 287 $ 305 $ 325 $ 75 $ 77 $ 84
Home equity 2,189 2,311 2,340 127 124 128 80 80 84
Total residential real estate – excluding PCI $ 7,978 $ 8,676 $ 9,432 $ 414 $ 429 $ 453 $ 155 $ 157 $ 168
(a) Generally, interest income on loans modified in TDRs is recognized on a cash basis until such time as the borrower has made a minimum of six payments
under the new terms, unless the loan is deemed to be collateral-dependent.
Loan modifications
Modifications of residential real estate loans, excluding PCI loans, are generally accounted for and reported as TDRs. There
were no additional commitments to lend to borrowers whose residential real estate loans, excluding PCI loans, have been
modified in TDRs.
The following table presents new TDRs reported by JPMorgan Chase Bank, N.A.
(in millions) 2017 2016 2015
Residential mortgage $ 373 $ 254 $ 259
Home equity 321 385 394
Total residential real estate –
excluding PCI $ 694 $ 639 $ 653
Nature and extent of modifications

The U.S. Treasury’s Making Home Affordable programs, as well as JPMorgan Chase Bank, N.A.’s proprietary modification
programs, generally provide various concessions to financially troubled borrowers including, but not limited to, interest rate
reductions, term or payment extensions and deferral 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, excluding PCI loans, were modified under
JPMorgan Chase Bank, N.A.’s loss mitigation programs described above during the periods presented. This table excludes
Chapter 7 loans where the sole concession granted is the discharge of debt.
Total residential real estate

Residential mortgage Home equity – excluding PCI
Year ended Dec. 31, 2017 2016 2015 2017 2016 2015 2017 2016 2015
Number of loans approved for a
trial modification 1,281 1,936 2,662 2,321 3,744 3,916 3,602 5,680 6,578
Number of loans permanently
modified 2,624 3,320 3,080 5,624 4,824 4,248 8,248 8,144 7,328
Concession granted:(a)
Interest rate reduction 63% 76% 71% 59% 75% 66% 60% 76% 68%
Term or payment extension 72 90 81 69 83 89 70 86 86
Principal and/or interest
deferred 15 16 26 10 19 23 12 18 24
Principal forgiveness 16 26 28 13 9 7 14 16 16
Other(b) 33 25 11 31 6 — 32 13 5
(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. A significant portion of trial modifications include interest rate
reductions and/or term or payment extensions.
(b) Predominantly represents variable interest rate to fixed interest rate modifications.

Financial effects of modifications and redefaults

The following table provides information about the financial effects of the various concessions granted in modifications of
residential real estate loans, excluding PCI, under the loss mitigation programs described above and about redefaults of certain
loans modified in TDRs for the periods presented. The following table presents only the final financial effects of permanent
modifications and does not include temporary concessions offered through trial modifications. This table also excludes Chapter
7 loans where the sole concession granted is the discharge of debt.
Year ended Total residential real estate –

December 31, Residential mortgage Home equity excluding PCI
(in millions, except weighted-
average data and number of
loans) 2017 2016 2015 2017 2016 2015 2017 2016 2015
Weighted-average interest rate of
loans with interest rate
reductions – before TDR 5.15% 5.59% 5.69% 4.95% 4.99% 5.21% 5.06% 5.36% 5.52%
Weighted-average interest rate of
loans with interest rate
reductions – after TDR 2.99 2.93 2.81 2.64 2.34 2.35 2.83 2.69 2.65
Weighted-average remaining
contractual term (in years) of
loans with term or payment
extensions – before TDR 24 24 25 21 18 18 23 22 22
Weighted-average remaining
contractual term (in years) of
loans with term or payment
extensions – after TDR 38 38 37 39 38 35 38 38 36
Charge-offs recognized upon
permanent modification $ 2 $ 4 $ 11 $ 1 $ 1 $ 4 $ 3 $ 5 $ 15
Principal deferred 12 30 55 10 23 26 22 53 81
Principal forgiven 20 44 66 13 7 6 33 51 72
Balance of loans that redefaulted
within one year of permanent
modification(a) $ 124 $ 98 $ 131 $ 56 $ 39 $ 21 $ 180 $ 137 $ 152
(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. For
residential real estate loans modified in TDRs, payment default is deemed to occur when the loan becomes two contractual payments past due. In the event that a
modified loan redefaults, it is probable that the loan will ultimately be liquidated through foreclosure or another similar type of liquidation transaction. Redefaults of
loans modified within the last 12 months may not be representative of ultimate redefault levels.
At December 31, 2017, the weighted-average estimated Active and suspended foreclosure
remaining lives of residential real estate loans, excluding At December 31, 2017 and 2016, JPMorgan Chase Bank,
PCI loans, permanently modified in TDRs were 14 years for N.A. had non-PCI residential real estate loans, excluding
residential mortgage and 10 years for home equity. The those insured by U.S. government agencies, with a carrying
estimated remaining lives of these loans reflect estimated value of $787 million and $931 million, respectively, that
prepayments, both voluntary and involuntary (i.e., were not included in REO, but were in the process of active
foreclosures and other forced liquidations). or suspended foreclosure.

Other consumer loans
The table below provides information for other consumer retained loan classes, including auto and business banking loans. This
table excludes student loans that were sold in 2017.
Auto Consumer & business banking(c)
December 31,
(in millions, except ratios) 2017 2016 2017 2016
Loan delinquency (a)
Current $ 65,651 $ 65,029 $ 25,454 $ 23,919

30–119 days past due 584 773 213 247
120 or more days past due 7 12 122 140
Total retained loans $ 66,242 $ 65,814 $ 25,789 $ 24,306
% of 30+ days past due to total retained loans 0.89% 1.19% 1.30% 1.59%
Nonaccrual loans(a) 141 214 283 287
Geographic region
California $ 8,445 $ 7,975 $ 5,032 $ 4,426
Texas 7,013 7,041 2,916 2,954
New York 4,023 4,078 4,195 3,979
Illinois 3,916 3,984 2,017 1,758
Florida 3,350 3,374 1,424 1,195
Arizona 2,221 2,209 1,383 1,307
Ohio 2,105 2,194 1,380 1,402
Michigan 1,418 1,567 1,357 1,343
New Jersey 2,044 2,031 721 623
Louisiana 1,656 1,814 849 979
All other 30,051 29,547 4,515 4,340
Loans by risk ratings(b)
Noncriticized $ 15,604 $ 13,899 $ 17,938 $ 16,858
Criticized performing 93 201 791 816
Criticized nonaccrual 9 94 213 217
(a) There were no loans that were 90 or more days past due and still accruing interest at December 31, 2017 and 2016.
(b) For risk-rated business banking and auto loans, the primary credit quality indicator is the risk rating of the loan, including whether the loans are considered to be
criticized and/or nonaccrual.
(c) Certain loan portfolios have been reclassified. The prior period amounts have been revised to conform with the current period presentation.

Other consumer impaired loans and loan Loan modifications

modifications Certain other consumer loan modifications are considered
The following table sets forth information about JPMorgan to be TDRs as they provide various concessions to
Chase Bank, N.A.’s other consumer impaired loans, including borrowers who are experiencing financial difficulty. All of
risk-rated business banking and auto loans that have been placed these TDRs are reported as impaired loans. The following
on nonaccrual status, and loans that have been modified in TDRs. table provides information about JPMorgan Chase Bank,
N.A.’s other consumer loans modified in TDRs. New TDRs
December 31, (in millions) 2017 2016 were not material for the years ended December 31, 2017
Impaired loans and 2016.
With an allowance $ 272 $ 614
Without an allowance(a) 26 30 December 31, (in millions) 2017 2016
Total impaired loans(b)(c) $ 298 $ 644 Loans modified in TDRs(a)(b) $ 102 $ 362
Allowance for loan losses related to TDRs on nonaccrual status 72 226
impaired loans $ 73 $ 119
(a) The impact of these modifications was not material to JPMorgan Chase
Unpaid principal balance of impaired
loans(d) 402 753 Bank, N.A. for the years ended December 31, 2017 and 2016.
(b) Additional commitments to lend to borrowers whose loans have been
Impaired loans on nonaccrual status 268 508
modified in TDRs as of December 31, 2017 and 2016 were
(a) When discounted cash flows, collateral value or market price equals or immaterial.
exceeds the recorded investment in the loan, the loan does not require
an allowance. This typically occurs when the impaired loans have been
partially charged off and/or there have been interest payments
received and applied to the loan balance.
(b) Predominantly all other consumer impaired loans are in the U.S.
(c) Other consumer average impaired loans were $427 million, $635
million and $566 million for the years ended December 31, 2017,
2016 and 2015, respectively. The related interest income on impaired
loans, including those on a cash basis, was not material for the years
ended December 31, 2017, 2016 and 2015.
(d) Represents the contractual amount of principal owed at December 31,
2017 and 2016. The unpaid principal balance differs from the
impaired loan balances due to various factors, including charge-offs,
interest payments received and applied to the principal balance, net
deferred loan fees or costs and unamortized discounts or premiums on
purchased loans.

Purchased credit-impaired loans
PCI loans are initially recorded at fair value at acquisition. The excess of cash flows expected to be collected over the
PCI loans acquired in the same fiscal quarter may be carrying value of the underlying loans is referred to as the
aggregated into one or more pools, provided that the loans accretable yield. This amount is not reported on JPMorgan
have common risk characteristics. A pool is then accounted Chase Bank, N.A.’s Consolidated balance sheets but is
for as a single asset with a single composite interest rate accreted into interest income at a level rate of return over
and an aggregate expectation of cash flows. With respect to the remaining estimated lives of the underlying pools of
the Washington Mutual transaction, all of the consumer PCI loans.
loans were aggregated into pools of loans with common risk
If the timing and/or amounts of expected cash flows on PCI
characteristics.
loan pools were determined not to be reasonably estimable,
On a quarterly basis, JPMorgan Chase Bank, N.A. estimates no interest would be accreted and the loan pools would be
the total cash flows (both principal and interest) expected reported as nonaccrual loans; however, since the timing and
to be collected over the remaining life of each pool. These amounts of expected cash flows for JPMorgan Chase Bank,
estimates incorporate assumptions regarding default rates, N.A.’s PCI consumer loan pools are reasonably estimable,
loss severities, the amounts and timing of prepayments and interest is being accreted and the loan pools are being
other factors that reflect then-current market conditions. reported as performing loans.
Probable decreases in expected cash flows (i.e., increased
The liquidation of PCI loans, which may include sales of
credit losses) trigger the recognition of impairment, which
loans, receipt of payment in full from the borrower, or
is then measured as the present value of the expected
foreclosure, results in removal of the loans from the
principal loss plus any related forgone interest cash flows,
underlying PCI pool. When the amount of the liquidation
discounted at the pool’s effective interest rate. Impairments
proceeds (e.g., cash, real estate), if any, is less than the
are recognized through the provision for credit losses and
unpaid principal balance of the loan, the difference is first
an increase in the allowance for loan losses. Probable and
applied against the PCI pool’s nonaccretable difference for
significant increases in expected cash flows (e.g., decreased
principal losses (i.e., the lifetime credit loss estimate
credit losses, the net benefit of modifications) would first
established as a purchase accounting adjustment at the
reverse any previously recorded allowance for loan losses
acquisition date). When the nonaccretable difference for a
with any remaining increases recognized prospectively as a
particular loan pool has been fully depleted, any excess of
yield adjustment over the remaining estimated lives of the
the unpaid principal balance of the loan over the liquidation
underlying loans. The impacts of (i) prepayments, (ii)
proceeds is written off against the PCI pool’s allowance for
changes in variable interest rates, and (iii) any other
loan losses. Write-offs of PCI loans also include other
changes in the timing of expected cash flows are generally
adjustments, primarily related to interest forgiveness
recognized prospectively as adjustments to interest income.
modifications. Because JPMorgan Chase Bank, N.A.’s PCI
JPMorgan Chase Bank, N.A. continues to modify certain PCI loans are accounted for at a pool level, JPMorgan Chase
loans. The impact of these modifications is incorporated Bank, N.A. does not recognize charge-offs of PCI loans when
into JPMorgan Chase Bank, N.A.’s quarterly assessment of they reach specified stages of delinquency (i.e., unlike non-
whether a probable and significant change in expected cash PCI consumer loans, these loans are not charged off based
flows has occurred, and the loans continue to be accounted on FFIEC standards).
for and reported as PCI loans. In evaluating the effect of
The PCI portfolio affects JPMorgan Chase Bank, N.A.’s
modifications on expected cash flows, JPMorgan Chase
results of operations primarily through: (i) contribution to
Bank, N.A. incorporates the effect of any forgone interest
net interest margin; (ii) expense related to defaults and
and also considers the potential for redefault. JPMorgan
servicing resulting from the liquidation of the loans; and
Chase Bank, N.A. develops product-specific probability of
(iii) any provision for loan losses. The PCI loans acquired in
default estimates, which are used to compute expected
the Washington Mutual transaction were funded based on
credit losses. In developing these probabilities of default,
the interest rate characteristics of the loans. For example,
JPMorgan Chase Bank, N.A. considers the relationship
variable-rate loans were funded with variable-rate liabilities
between the credit quality characteristics of the underlying
and fixed-rate loans were funded with fixed-rate liabilities
loans and certain assumptions about home prices and
with a similar maturity profile. A net spread will be earned
unemployment based upon industry-wide data. JPMorgan
on the declining balance of the portfolio, which is estimated
Chase Bank, N.A. also considers its own historical loss
as of December 31, 2017, to have a remaining weighted-
experience to-date based on actual redefaulted modified
average life of 9 years.
PCI loans.

Residential real estate – PCI loans

The table below sets forth information about JPMorgan Chase Bank, N.A.’s consumer, excluding credit card, PCI loans.
Home equity Prime mortgage Subprime mortgage Option ARMs Total PCI
December 31,
(in millions, except ratios) 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016
Carrying value(a) $10,799 $12,902 $ 6,479 $ 7,602 $ 2,609 $ 2,941 $10,689 $12,234 $30,576 $35,679
Related allowance for loan losses(b) 1,133 1,433 863 829 150 — 79 49 2,225 2,311
Loan delinquency (based on unpaid principal
balance)
Current $10,272 $12,423 $ 5,839 $ 6,840 $ 2,640 $ 3,005 $ 9,662 $11,074 $28,413 $33,342
30–149 days past due 356 291 336 336 381 361 547 555 1,620 1,543
150 or more days past due 392 478 327 451 176 240 689 917 1,584 2,086
Total loans $11,020 $13,192 $ 6,502 $ 7,627 $ 3,197 $ 3,606 $10,898 $12,546 $31,617 $36,971
% of 30+ days past due to total loans 6.79% 5.83% 10.20% 10.32% 17.42% 16.67% 11.34% 11.73% 10.13% 9.82%
Current estimated LTV ratios (based on unpaid
principal balance)(c)(d)
Greater than 125% and refreshed FICO scores:
Equal to or greater than 660 $ 33 $ 69 $ 4 $ 6 $ 2 $ 7 $ 6 $ 12 $ 45 $ 94
Less than 660 21 39 16 17 20 31 9 18 66 105
Equal to or greater than 660 274 555 16 52 20 39 43 83 353 729
Less than 660 132 256 42 84 75 135 71 144 320 619
Equal to or greater than 660 1,195 1,860 221 442 119 214 316 558 1,851 3,074
Less than 660 559 804 230 381 309 439 371 609 1,469 2,233
Lower than 80% and refreshed FICO scores:
Equal to or greater than 660 6,134 6,676 3,551 3,967 895 919 6,113 6,754 16,693 18,316
Less than 660 2,095 2,183 2,103 2,287 1,608 1,645 3,499 3,783 9,305 9,898
No FICO/LTV available 577 750 319 391 149 $ 177 $ 470 $ 585 1,515 1,903
Total unpaid principal balance $11,020 $13,192 $ 6,502 $ 7,627 $ 3,197 $ 3,606 $10,898 $12,546 $31,617 $36,971
Geographic region (based on unpaid principal
balance)
California $ 6,555 $ 7,899 $ 3,716 $ 4,396 $ 797 $ 899 $ 6,225 $ 7,128 $17,293 $20,322
Florida 1,137 1,306 428 501 296 332 878 1,026 2,739 $ 3,165
New York 607 697 457 515 330 363 628 711 2,022 $ 2,286
Washington 532 673 135 167 61 68 238 290 966 $ 1,198
Illinois 273 314 200 226 161 178 249 282 883 $ 1,000
New Jersey 242 280 178 210 110 125 336 401 866 $ 1,016
Massachusetts 79 94 149 173 98 110 307 346 633 $ 723
Maryland 57 64 129 144 132 145 232 267 550 $ 620
Arizona 203 241 106 124 60 68 156 181 525 $ 614
Virginia 66 77 123 142 51 56 280 314 520 $ 589
All other 1,269 1,547 881 1,029 1,101 1,262 1,369 1,600 4,620 $ 5,438
Total unpaid principal balance $11,020 $13,192 $ 6,502 $ 7,627 $ 3,197 $ 3,606 $10,898 $12,546 $31,617 $36,971
(a) Carrying value includes the effect of fair value adjustments that were applied to the consumer PCI portfolio at the date of acquisition.
(b) Management concluded as part of JPMorgan Chase Bank, N.A.’s regular assessment of the PCI loan pools, that it was probable that higher expected credit losses
would result in a decrease in expected cash flows. As a result, an allowance for loan losses for impairment of these pools has been recognized.
(c) 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. These property values do not represent actual appraised loan level collateral values; as such, the resulting ratios
are necessarily imprecise and should be viewed as estimates. Current estimated combined LTV for junior lien home equity loans considers all available lien
positions, as well as unused lines, related to the property.
(d) Refreshed FICO scores represent each borrower’s most recent credit score, which is obtained by JPMorgan Chase Bank, N.A. on at least a quarterly basis.

Approximately 25% of the PCI home equity portfolio are senior lien loans; the remaining balance are junior lien HELOANs or
HELOCs. The following table sets forth delinquency statistics for PCI junior lien home equity loans and lines of credit based on
the unpaid principal balance as of December 31, 2017 and 2016.
December 31, Total loans Total 30+ day delinquency rate

(in millions, except ratios) 2017 2016 2017 2016
HELOCs: (a)
Within the revolving period(b) $ 51 $ 2,126 1.96% 3.67%

Beyond the revolving period 7,875 7,452 4.63 4.03
HELOANs 360 465 5.28 5.38
Total $ 8,286 $ 10,043 4.65% 4.01%
(a) In general, these HELOCs are revolving loans for a 10-year period, after which time the HELOC converts to an interest-only loan with a balloon payment at
the end of the loan’s term.
(b) Substantially all undrawn HELOCs within the revolving period have been closed.
(c) Includes loans modified into fixed rate amortizing loans.
The table below sets forth the accretable yield activity for JPMorgan Chase Bank, N.A.’s PCI consumer loans for the years ended
December 31, 2017, 2016 and 2015, and represents JPMorgan Chase Bank, N.A.’s estimate of gross interest income expected
to be earned over the remaining life of the PCI loan portfolios. The table excludes the cost to fund the PCI portfolios, and
therefore the accretable yield does not represent net interest income expected to be earned on these portfolios.
Total PCI
(in millions, except ratios) 2017 2016 2015
Beginning balance $ 11,768 $ 13,491 $ 14,592
Accretion into interest income (1,396) (1,555) (1,700)
Changes in interest rates on variable-rate loans 503 260 279
Other changes in expected cash flows(a) 284 (428) 230
Reclassification from nonaccretable difference(b) — — $ 90
Balance at December 31 $ 11,159 $ 11,768 $ 13,491
Accretable yield percentage 4.53% 4.35% 4.20%
(a) Other changes in expected cash flows may vary from period to period as JPMorgan Chase Bank, N.A. continues to refine its cash flow model, for example cash flows
expected to be collected due to the impact of modifications and changes in prepayment assumptions.
(b) Reclassifications from the nonaccretable difference in the year ended December 31, 2015 were driven by continued improvement in home prices and
delinquencies, as well as increased granularity in the impairment estimates.
Active and suspended foreclosure

At December 31, 2017 and 2016, JPMorgan Chase Bank, N.A. had PCI residential real estate loans with an unpaid principal
balance of $1.3 billion and $1.7 billion, respectively, that were not included in REO, but were in the process of active or
suspended foreclosure.

Credit card loan portfolio

The credit card portfolio predominantly includes credit card The table below sets forth information about JPMorgan
loans acquired pursuant to a participation agreement with Chase Bank, N.A.’s credit card loans.
Chase Bank USA, N.A., a related-party, and subsequent
As of or for the year ended December 31,
draws on revolving credit lines associated with the (in millions, except ratios) 2017 2016
participation agreement. Delinquency rates are the primary Net charge-offs $ 1,140 $ 876
credit quality indicator for credit card loans as they provide % of net charge-offs to retained loans 3.08% 2.66%
an early warning that borrowers may be experiencing Loan delinquency
difficulties (30 days past due); information on those Current and less than 30 days past due
borrowers that have been delinquent for a longer period of and still accruing $ 40,092 $ 35,137
time (90 days past due) is also considered. In addition to 30–89 days past due and still accruing 397 315
delinquency rates, the geographic distribution of the loans 90 or more days past due and still accruing 422 321
provides insight as to the credit quality of the portfolio Total retained credit card loans $ 40,911 $ 35,773
based on the regional economy. Loan delinquency ratios
% of 30+ days past due to total retained
While the borrower’s credit score is another general loans 2.00% 1.78%
indicator of credit quality, JPMorgan Chase Bank, N.A. does % of 90+ days past due to total retained
loans 1.03 0.90
not view credit scores as a primary indicator of credit
Credit card loans by geographic region
quality because the borrower’s credit score tends to be a
California $ 6,428 $ 5,483
lagging indicator. The distribution of such scores provides a
Texas 4,121 3,574
general indicator of credit quality trends within the
New York 3,689 3,197
portfolio; however, the score does not capture all factors Florida 2,581 2,238
that would be predictive of future credit performance. Illinois 2,294 2,022
Refreshed FICO score information, which is obtained at least New Jersey 1,762 1,574
quarterly, for a statistically significant random sample of Ohio 1,268 1,145
the credit card portfolio is indicated in the following table. Pennsylvania 1,256 1,140
FICO is considered to be the industry benchmark for credit Colorado 1,141 971
scores. Michigan 992 889
All other 15,379 13,540
The credit card portfolio generally includes accounts to Total retained credit card loans $ 40,911 $ 35,773
prime consumer borrowers. However, certain cardholders’ Percentage of portfolio based on carrying
FICO scores may decrease over time, depending on the value with estimated refreshed FICO
scores
performance of the cardholder and changes in credit score
Equal to or greater than 660 84.2% 84.7%
calculation.
Less than 660 14.4 13.9
No FICO available 1.4 1.4

Credit card impaired loans and loan modifications Loan modifications
The table below sets forth information about JPMorgan Credit card borrowers, who are experiencing financial
Chase Bank, N.A.’s impaired credit card loans. All of these difficulty may be offered a number of loan modification
loans are considered to be impaired as they have been programs. Modifications under long-term programs involve
modified in TDRs. placing the customer on a fixed payment plan, generally for
60 months. Short-term programs may be offered for
borrowers who may be in need of temporary relief;
Impaired credit card loans with an however, none are currently being offered. Modifications
allowance(a)(b)
under all short- and long-term programs typically include
Credit card loans with modified payment
terms(c) $ 297 $ 254 reducing the interest rate on the credit card. Substantially
Modified credit card loans that have all modifications are considered to be TDRs.
reverted to pre-modification payment
terms(d) 16 31 If the cardholder does not comply with the modified
Total impaired credit card loans(e) $ 313 $ 285 payment terms, then the credit card loan continues to age
Allowance for loan losses related to and will ultimately be charged-off in accordance with
impaired credit card loans $ 99 $ 83 JPMorgan Chase Bank, N.A.’s standard charge-off policy. In
(a) The carrying value and the unpaid principal balance are the same for credit most cases, JPMorgan Chase Bank, N.A. does not reinstate
card impaired loans. the borrower’s line of credit.
(b) There were no impaired loans without an allowance.
(c) Represents credit card loans outstanding to borrowers enrolled in a credit New enrollments in these loan modification programs for
card modification program as of the date presented.
the years ended December 31, 2017, 2016 and 2015, were
(d) Represents credit card loans that were modified in TDRs but that have
subsequently reverted back to the loans’ pre-modification payment terms. $184 million, $139 million and $111 million, respectively.
At both December 31, 2017 and 2016, $10 million and $22 million,
respectively, of loans have reverted back to the pre-modification payment Financial effects of modifications and redefaults
terms of the loans due to noncompliance with the terms of the modified The following table provides information about the financial
loans. The remaining $7 million and $9 million at December 31, 2017 and
effects of the concessions granted on credit card loans
2016, respectively, of these loans are to borrowers who have successfully
completed a short-term modification program. JPMorgan Chase Bank, N.A. modified in TDRs and redefaults for the periods presented.
continues to report these loans as TDRs since the borrowers’ credit lines
remain closed.
(e) Predominantly all impaired credit card loans are in the U.S. Year ended December 31,
(in millions, except
weighted-average data) 2017 2016 2015
The following table presents average balances of impaired
credit card loans and interest income recognized on those Weighted-average interest rate
of loans – before TDR 16.59% 15.56% 14.77%
loans.
Weighted-average interest rate
of loans – after TDR 4.89 4.76 4.40
(in millions) 2017 2016 2015 Loans that redefaulted within
one year of modification(a) $ 18 $ 17 $ 16
Average impaired credit card loans $ 295 $ 288 $ 325
Interest income on (a) Represents loans modified in TDRs that experienced a payment default in
impaired credit card loans 14 14 15 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 interim period in which they defaulted.
For credit card loans modified in TDRs, a substantial

portion of these loans are expected to be charged-off in
accordance with JPMorgan Chase Bank, N.A.’s standard
charge-off policy. Based on historical experience, the
estimated weighted-average default rate for modified credit
card loans was expected to be 31.54%, 28.87% and
25.08% as of December 31, 2017, 2016 and 2015,
respectively.

Wholesale loan portfolio

Wholesale loans include loans made to a variety of clients, Risk ratings are reviewed on a regular and ongoing basis by
ranging from large corporate and institutional clients to Credit Risk Management and are adjusted as necessary for
high-net-worth individuals. updated information affecting the obligor’s ability to fulfill
its obligations.
The primary credit quality indicator for wholesale loans is
the risk rating assigned to each loan. Risk ratings are used As noted above, the risk rating of a loan considers the
to identify the credit quality of loans and differentiate risk industry in which the obligor conducts its operations. As
within the portfolio. Risk ratings on loans consider the part of the overall credit risk management framework,
probability of default (“PD”) and the loss given default JPMorgan Chase Bank, N.A. focuses on the management
(“LGD”). The PD is the likelihood that a loan will default. The and diversification of its industry and client exposures, with
LGD is the estimated loss on the loan that would be realized particular attention paid to industries with actual or
upon the default of the borrower and takes into potential credit concern. See Note 5 for further detail on
consideration collateral and structural support for each industry concentrations.
credit facility.
Management considers several factors to determine an
appropriate risk rating, including the obligor’s debt capacity
and financial flexibility, the level of the obligor’s earnings,
the amount and sources for repayment, the level and nature
of contingencies, management strength, and the industry
and geography in which the obligor operates. JPMorgan
Chase Bank, N.A.’s definition of criticized aligns with the
banking regulatory definition of criticized exposures, which
consist of special mention, substandard and doubtful
categories. Risk ratings generally represent ratings profiles
similar to those defined by S&P and Moody’s. Investment-
grade ratings range from “AAA/Aaa” to “BBB-/Baa3.”
Noninvestment-grade ratings are classified as noncriticized
(“BB+/Ba1 and B-/B3”) and criticized (“CCC+”/“Caa1 and
below”), and the criticized portion is further subdivided into
performing and nonaccrual loans, representing
management’s assessment of the collectibility of principal
and interest. Criticized loans have a higher probability of
default than noncriticized loans.

The table below provides information by class of receivable for the retained loans in the Wholesale portfolio segment.
In 2017 JPMorgan Chase Bank, N.A. revised its methodology for the assignment of industry classifications, to better monitor
and manage concentrations. This largely resulted in the re-assignment of holding companies from Other to the industry of risk
category based on the primary business activity of the holding company's underlying entities. In the tables and industry
discussions below, the prior period amounts have been revised to conform with the current period presentation.
Below are summaries of JPMorgan Chase Bank, N.A’s exposures as of December 31, 2017 and 2016. For additional
information on industry concentrations, see Note 5.
As of or for the Commercial Financial Total
year ended and industrial Real estate institutions Government agencies Other(d) retained loans
December 31,
(in millions,
except ratios) 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016
Loans by risk
ratings
Investment-
grade $ 67,378 $ 64,832 $ 98,467 $ 88,649 $ 32,559 $ 29,403 $14,440 $ 15,053 $103,186 $ 95,317 $ 316,030 $ 293,254
Noninvestment-
grade:
Noncriticized 46,499 47,330 14,329 16,149 12,880 10,961 342 423 10,066 9,708 84,116 84,571
Criticized
performing 3,933 6,187 710 798 206 200 — 6 259 162 5,108 7,353
Criticized
nonaccrual 1,296 1,490 136 200 2 9 — — 238 255 1,672 1,954
Total
noninvestment-
grade 51,728 55,007 15,175 17,147 13,088 11,170 342 429 10,563 10,125 90,896 93,878
Total retained
loans $119,106 $119,839 $ 113,642 $105,796 $ 45,647 $ 40,573 $14,782 $ 15,482 $113,749 $105,442 $ 406,926 $ 387,132
% of total
criticized to
total retained
loans 4.39% 6.41% 0.74% 0.94 % 0.46% 0.52% —% 0.04% 0.44% 0.40% 1.67% 2.40%
% of nonaccrual
loans to total
retained loans 1.09 1.24 0.12 0.19 — 0.02 — — 0.21 0.24 0.41 0.50
Loans by
geographic
distribution(a)
Total non-U.S. $ 28,470 $ 30,564 $ 3,101 $ 3,303 $ 16,786 $ 15,138 $ 2,905 $ 3,726 $ 44,111 $ 38,774 $ 95,373 $ 91,505
Total U.S. 90,636 89,275 110,541 102,493 28,861 25,435 11,877 11,756 69,638 66,668 311,553 295,627
Total retained
loans $119,106 $119,839 $113,642 $105,796 $45,647 $40,573 $14,782 $15,482 $113,749 $105,442 $406,926 $387,132
Net charge-offs/
(recoveries) $ 117 $ 345 $ (4) $ (7) $ 6 $ (1) $ 5 $ (1) $ (5) $ 6 $ 119 $ 342
% of net
charge-offs/
(recoveries) to
end-of-period
retained loans 0.10% 0.28% —% (0.01)% 0.01% —% 0.03% —% —% 0.01% 0.03% 0.09%
Loan
delinquency(b)
Current and less
than 30 days
past due and
still accruing $117,486 $117,995 $ 113,251 $105,390 $ 45,615 $ 40,518 $14,770 $ 15,371 $112,612 $104,591 $ 403,734 $ 383,865
30–89 days
past due and
still accruing 216 268 242 204 15 25 8 107 898 582 1,379 1,186
90 or more days
past due and
still accruing(c) 108 86 13 2 15 21 4 4 1 14 141 127
Criticized
nonaccrual 1,296 1,490 136 200 2 9 — — 238 255 1,672 1,954
Total retained
loans $119,106 $119,839 $ 113,642 $105,796 $ 45,647 $ 40,573 $14,782 $ 15,482 $113,749 $105,442 $ 406,926 $ 387,132
(a) The U.S. and non-U.S. distribution is determined based predominantly on the domicile of the borrower.
(b) The credit quality of wholesale loans is assessed primarily through ongoing review and monitoring of an obligor’s ability to meet contractual obligations rather than relying on
the past due status, which is generally a lagging indicator of credit quality.
(c) Represents loans that are considered well-collateralized and therefore still accruing interest.
(d) Other includes: individuals; SPEs; holding companies; and private education and civic organizations. For more information on exposures to SPEs, see Note 15.

The following table presents additional information on the real estate class of loans within the Wholesale portfolio for the
periods indicated. Exposure consists primarily of secured commercial loans, of which multifamily is the largest segment.
Multifamily lending finances acquisition, leasing and construction of apartment buildings, and includes exposure to real
estate investment trusts (“REITs”). Other commercial lending largely includes financing for acquisition, leasing and
construction, largely for office, retail and industrial real estate, and includes exposure to REITs. Included in real estate loans is
$10.8 billion and $9.2 billion as of December 31, 2017 and 2016, respectively, of construction and development exposure
consisting of loans originally purposed for construction and development, general purpose loans for builders, as well as loans
for land subdivision and pre-development.
Multifamily Other Commercial Total real estate loans

December 31,
(in millions, except ratios) 2017 2016 2017 2016 2017 2016
Real estate retained loans $ 77,597 $ 72,143 $ 36,045 $ 33,653 $ 113,642 $ 105,796
Criticized 491 539 355 459 846 998
% of criticized to total real estate retained loans 0.63% 0.75% 0.98% 1.36% 0.74% 0.94%
Criticized nonaccrual $ 44 $ 57 $ 92 $ 143 $ 136 $ 200
% of criticized nonaccrual to total real estate retained loans 0.06% 0.08% 0.26% 0.42% 0.12% 0.19%
Wholesale impaired loans and loan modifications

Wholesale impaired loans consist of loans that have been placed on nonaccrual status and/or that have been modified in a TDR.
All impaired loans are evaluated for an asset-specific allowance as described in Note 14.
The table below sets forth information about JPMorgan Chase Bank, N.A.’s wholesale impaired loans.
Commercial Financial Government Total
and industrial Real estate institutions agencies Other retained loans
December 31,
(in millions) 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016
Impaired loans
With an allowance $ 1,111 $ 1,127 $ 79 $ 124 $ 93 $ 9 $ — $ — $ 168 $ 180 $ 1,451 $ 1,440
Without an allowance(a) 227 414 60 87 — — — — 70 76 357 577
Total impaired loans $ 1,338 $ 1,541 $ 139 $ 211 $ 93 $ 9 $ — $ — $ 238 $ 256 $ 1,808 (c) $ 2,017 (c)
Allowance for loan losses related

to impaired loans $ 372 $ 258 $ 11 $ 18 $ 4 $ 3 $ — $ — $ 43 $ 63 $ 430 $ 342
Unpaid principal balance of
impaired loans(b) 1,604 1,754 201 295 94 12 — — 255 284 2,154 2,345
(a) When the discounted cash flows, collateral value or market price equals or exceeds the recorded investment in the loan, the loan does not require an allowance. This typically
occurs when the impaired loans have been partially charged-off and/or there have been interest payments received and applied to the loan balance.
(b) Represents the contractual amount of principal owed at December 31, 2017 and 2016. The unpaid principal balance differs from the impaired loan balances due to various
factors, including charge-offs; interest payments received and applied to the carrying value; net deferred loan fees or costs; and unamortized discount or premiums on
purchased loans.
(c) Based upon the domicile of the borrower, largely consists of loans in the U.S.
The following table presents JPMorgan Chase Bank, N.A.’s Certain loan modifications are considered to be TDRs as
average impaired loans for the years ended 2017, 2016 they provide various concessions to borrowers who are
and 2015. experiencing financial difficulty. All TDRs are reported as
impaired loans in the tables above. TDRs were $614 million
and $733 million as of December 31, 2017 and 2016.
Commercial and industrial $ 1,145 $ 1,478 $ 453
Real estate 164 210 249
Financial institutions 20 13 13
Government agencies — — 1
Other 231 213 129
Total(a) $ 1,560 $ 1,914 $ 845
(a) The related interest income on accruing impaired loans and interest income
recognized on a cash basis were not material for the years ended December 31,
2017, 2016 and 2015.

Note 14 – Allowance for credit losses
JPMorgan Chase Bank, N.A.’s allowance for loan losses equivalent amounts of pools of loan exposures with similar
represents management’s estimate of probable credit losses risk characteristics over a loss emergence period to arrive
inherent in the JPMorgan Chase Bank, N.A.’s retained loan at an estimate of incurred credit losses. Estimated loss
portfolio, which consists of the two consumer portfolio emergence periods may vary by product and may change
segments (primarily scored) and the wholesale portfolio over time; management applies judgment in estimating loss
segment (risk-rated). JPMorgan Chase Bank, N.A.’s The emergence periods, using available credit information and
allowance for loan losses includes a formula-based trends. In addition, management applies judgment to the
component, an asset-specific component, and a component statistical loss estimates for each loan portfolio category,
related to PCI loans, as described below. Management also using delinquency trends and other risk characteristics to
estimates an allowance for wholesale and certain consumer estimate the total incurred credit losses in the portfolio.
lending-related commitments using methodologies similar Management uses additional statistical methods and
to those used to estimate the allowance on the underlying considers actual portfolio performance, including actual
loans. losses recognized on defaulted loans and collateral
valuation trends, to review the appropriateness of the
During the first half of 2017, JPMorgan Chase Bank, N.A
primary statistical loss estimate. The economic impact of
refined its credit loss estimates relating to the wholesale
potential modifications of residential real estate loans is not
portfolio by incorporating the use of internal historical data
included in the statistical calculation because of the
versus external credit rating agency default statistics to
uncertainty regarding the type and results of such
estimate Probability of Default (“PD”). In addition, an
modifications.
adjustment to the statistical calculation for wholesale
lending-related commitments was incorporated similar to The statistical calculation is then adjusted to take into
the adjustment applied for wholesale loans. The impacts of consideration model imprecision, external factors and
these refinements were not material to the allowance for current economic events that have occurred but that are not
credit losses. JPMorgan Chase Bank, N.A.’s policies used to yet reflected in the factors used to derive the statistical
determine its allowance for credit losses are described in calculation; these adjustments are accomplished in part by
the following paragraphs. analyzing the historical loss experience for each major
Determining the appropriateness of the allowance is product segment. However, it is difficult to predict whether
complex and requires judgment by management about the historical loss experience is indicative of future loss levels.
effect of matters that are inherently uncertain. Subsequent Management applies judgment in making this adjustment,
evaluations of the loan portfolio, in light of the factors then taking into account uncertainties associated with current
prevailing, may result in significant changes in the macroeconomic and political conditions, quality of
allowances for loan losses and lending-related underwriting standards, borrower behavior, and other
commitments in future periods. At least quarterly, the relevant internal and external factors affecting the credit
allowance for credit losses is reviewed by the CRO, the Chief quality of the portfolio. In certain instances, the
Financial Officer (“CFO”) and the Controller of JPMorgan interrelationships between these factors create further
Chase and discussed with the DRPC and the Audit uncertainties. The application of different inputs into the
Committee JPMorgan Chase Bank, N.A. As of December 31, statistical calculation, and the assumptions used by
2017, JPMorgan Chase Bank, N.A. deemed the allowance management to adjust the statistical calculation, are subject
for credit losses to be appropriate (i.e., sufficient to absorb to management judgment, and emphasizing one input or
probable credit losses inherent in the portfolio). assumption over another, or considering other inputs or
assumptions, could affect the estimate of the allowance for
Formula-based component
credit losses for the consumer credit portfolio.
The formula-based component is based on a statistical
calculation to provide for incurred credit losses in all Overall, the allowance for credit losses for consumer
consumer loans and performing risk-rated loans. All loans portfolios is sensitive to changes in the economic
restructured in TDRs as well as any impaired risk-rated environment (e.g., unemployment rates), delinquency rates,
loans have an allowance assessed as part of the asset- the realizable value of collateral (e.g., housing prices), FICO
specific component, while PCI loans have an allowance scores, borrower behavior and other risk factors. While all
assessed as part of the PCI component. See Note 13 for of these factors are important determinants of overall
more information on TDRs, Impaired loans and PCI loans. allowance levels, changes in the various factors may not
occur at the same time or at the same rate, or changes may
Formula-based component - Consumer loans and certain
be directionally inconsistent such that improvement in one
lending-related commitments
factor may offset deterioration in another. In addition,
The formula-based allowance for credit losses for the
changes in these factors would not necessarily be consistent
consumer portfolio segments is calculated by applying
across all geographies or product types. Finally, it is difficult
statistical credit loss factors (estimated PD and loss
to predict the extent to which changes in these factors
severities) to the recorded investment balances or loan-

would ultimately affect the frequency of losses, the severity In addition to the statistical credit loss estimates applied to
of losses or both. the wholesale portfolio, management applies its judgment
to adjust the statistical estimates for wholesale loans and
Formula-based component - Wholesale loans and lending-
lending-related commitments, taking into consideration
related commitments
model imprecision, external factors and economic events
JPMorgan Chase Bank, N.A.’s methodology for determining
that have occurred but are not yet reflected in the loss
the allowance for loan losses and the allowance for lending-
factors. Historical experience of both LGD and PD are
related commitments involves the early identification of
considered when estimating these adjustments. Factors
credits that are deteriorating. The formula-based
related to concentrated and deteriorating industries also
component of the allowance for wholesale loans and
are incorporated where relevant. These estimates are based
lending-related commitments is calculated by applying
on management’s view of uncertainties that relate to
statistical credit loss factors (estimated PD and LGD) to the
current macroeconomic conditions, quality of underwriting
recorded investment balances or loan-equivalent over a loss
standards and other relevant internal and external factors
emergence period to arrive at an estimate of incurred credit
affecting the credit quality of the current portfolio.
losses in the portfolio. Estimated loss emergence periods
may vary by funded versus unfunded status of the Asset-specific component
instrument and may change over time. The asset-specific component of the allowance relates to
loans considered to be impaired, which includes loans that
JPMorgan Chase Bank, N.A. assesses the credit quality of its
have been modified in TDRs as well as risk-rated loans that
borrower or counterparty and assigns a risk rating. Risk
have been placed on nonaccrual status. To determine the
ratings are assigned at origination or acquisition, and if
asset-specific component of the allowance, larger risk-rated
necessary, adjusted for changes in credit quality over the
loans (primarily loans in the wholesale portfolio segment)
life of the exposure. In assessing the risk rating of a
are evaluated individually, while smaller loans (both risk-
particular loan or lending-related commitment, among the
rated and scored) are evaluated as pools using historical
factors considered are the obligor’s debt capacity and
loss experience for the respective class of assets.
financial flexibility, the level of the obligor’s earnings, the
amount and sources for repayment, the level and nature of JPMorgan Chase Bank, N.A. generally measures the asset-
contingencies, management strength, and the industry and specific allowance as the difference between the recorded
geography in which the obligor operates. These factors are investment in the loan and the present value of the cash
based on an evaluation of historical and current information flows expected to be collected, discounted at the loan’s
and involve subjective assessment and interpretation. original effective interest rate. Subsequent changes in
Determining risk ratings involves significant judgment; impairment are reported as an adjustment to the allowance
emphasizing one factor over another or considering for loan losses. In certain cases, the asset-specific allowance
additional factors could affect the risk rating assigned by is determined using an observable market price, and the
JPMorgan Chase Bank, N.A. allowance is measured as the difference between the
recorded investment in the loan and the loan’s fair value.
A PD estimate is determined based on the JPMorgan Chase
Collateral-dependent loans are charged down to the fair
Bank, N.A.’s history of defaults over more than one credit
value of collateral less costs to sell. For any of these
cycle.
impaired loans, the amount of the asset-specific allowance
LGD estimate is a judgment-based estimate assigned to required to be recorded, if any, is dependent upon the
each loan or lending-related commitment. The estimate recorded investment in the loan (including prior charge-
represents the amount of economic loss if the obligor were offs), and either the expected cash flows or fair value of
to default. The type of obligor, quality of collateral, and the collateral. See Note 13 for more information about charge-
seniority of JPMorgan Chase Bank, N.A.’s lending exposure offs and collateral-dependent loans.
in the obligor’s capital structure affect LGD.
The asset-specific component of the allowance for impaired
JPMorgan Chase Bank, N.A. applies judgment in estimating loans that have been modified in TDRs (including forgone
PD, LGD, loss emergence period and loan-equivalent used in interest, principal forgiveness, as well as other concessions)
calculating the allowance for credit losses. Estimates of PD, incorporates the effect of the modification on the loan’s
LGD, loss emergence period and loan-equivalent used are expected cash flows, which considers the potential for
subject to periodic refinement based on any changes to redefault. For residential real estate loans modified in TDRs,
underlying external or JPMorgan Chase Bank, N.A.-specific JPMorgan Chase Bank, N.A. develops product-specific
historical data. Changes to the time period used for PD and probability of default estimates, which are applied at a loan
LGD estimates could also affect the allowance for credit level to compute expected losses. In developing these
losses. The use of different inputs, estimates or probabilities of default, JPMorgan Chase Bank, N.A.
methodologies could change the amount of the allowance considers the relationship between the credit quality
for credit losses determined appropriate by JPMorgan characteristics of the underlying loans and certain
Chase Bank, N.A. assumptions about home prices and unemployment, based

upon industry-wide data. JPMorgan Chase Bank, N.A. also PCI loans
considers its own historical loss experience to-date based In connection with the acquisition of certain PCI loans,
on actual redefaulted modified loans. For credit card loans which are accounted for as described in Note 13, the
modified in TDRs, expected losses incorporate projected allowance for loan losses for the PCI portfolio is based on
redefaults based on JPMorgan Chase Bank, N.A.’s historical quarterly estimates of the amount of principal and interest
experience by type of modification program. For wholesale cash flows expected to be collected over the estimated
loans modified in TDRs, expected losses incorporate remaining lives of the loans.
management’s expectation of the borrower’s ability to
These cash flow projections are based on estimates
repay under the modified terms.
regarding default rates (including redefault rates on
Estimating the timing and amounts of future cash flows is modified loans), loss severities, the amounts and timing of
highly judgmental as these cash flow projections rely upon prepayments and other factors that are reflective of current
estimates such as loss severities, asset valuations, default and expected future market conditions. These estimates are
rates (including redefault rates on modified loans), the dependent on assumptions regarding the level of future
amounts and timing of interest or principal payments home prices, and the duration of current overall economic
(including any expected prepayments) or other factors that conditions, among other factors. These estimates and
are reflective of current and expected market conditions. assumptions require significant management judgment and
These estimates are, in turn, dependent on factors such as certain assumptions are highly subjective.
the duration of current overall economic conditions,
industry-, portfolio-, or borrower-specific factors, the
expected outcome of insolvency proceedings as well as, in
certain circumstances, other economic factors, including
the level of future home prices. All of these estimates and
assumptions require significant management judgment and
certain assumptions are highly subjective.

Allowance for credit losses and related information

The table below summarizes information about the allowances for loan losses and lending-relating commitments, and includes
a breakdown of loans and lending-related commitments by impairment methodology.
2017
Consumer,
Year ended December 31, excluding
Allowance for loan losses
Beginning balance at January 1, $ 5,195 $ 1,042 $ 4,478 $ 10,715
Gross charge-offs 1,779 1,250 213 3,242
Gross recoveries (634) (110) (93) (837)
Net charge-offs 1,145 1,140 120 2,405
Write-offs of PCI loans(a) 86 — — 86
Provision for loan losses 613 1,519 (277) 1,855
Other — — 2 2
Ending balance at December 31, $ 4,577 $ 1,421 $ 4,083 $ 10,081
Allowance for loan losses by impairment methodology

Asset-specific(b) $ 246 $ 99 (c) $ 430 $ 775
Formula-based 2,106 1,322 3,653 7,081
PCI 2,225 — — 2,225
Total allowance for loan losses $ 4,577 $ 1,421 $ 4,083 $ 10,081
Loans by impairment methodology

Asset-specific $ 8,029 $ 313 $ 1,808 $ 10,150
Formula-based 333,912 40,598 405,115 779,625
PCI 30,576 — 3 30,579
Impaired collateral-dependent loans

Net charge-offs $ 65 $ — $ 31 $ 96
Loans measured at fair value of collateral less cost to sell 2,131 — 233 2,364
Allowance for lending-related commitments

Beginning balance at January 1, $ 26 $ — $ 1,052 $ 1,078
Provision for lending-related commitments 7 — (17) (10)
Other — — — —
Ending balance at December 31, $ 33 $ — $ 1,035 $ 1,068
Allowance for lending-related commitments by impairment methodology

Asset-specific $ — $ — $ 187 $ 187
Formula-based 33 — 848 881
Total allowance for lending-related commitments $ 33 $ — $ 1,035 $ 1,068
Lending-related commitments by impairment methodology

Asset-specific $ — $ — $ 731 $ 731
Formula-based 48,553 12,127 368,528 429,208
Total lending-related commitments $ 48,553 $ 12,127 $ 369,259 $ 429,939
(a) Write-offs of PCI loans are recorded against the allowance for loan losses when actual losses for a pool exceed estimated losses that were recorded as purchase accounting
adjustments at the time of acquisition. A write-off of a PCI loan is recognized when the underlying loan is removed from a pool.
(b) Includes risk-rated loans that have been placed on nonaccrual status and loans that have been modified in a TDR.
(c) The asset-specific credit card allowance for loan losses is related to loans that have been modified in a TDR; such allowance is calculated based on the loans’ original contractual
interest rates and does not consider any incremental penalty rates.
(d) The prior period amounts have been revised to conform to current period presentation.

(table continued from previous page)
2016 2015
Consumer, Consumer,
excluding excluding
credit card Credit card Wholesale Total credit card Credit card Wholesale Total
$ 5,803 $ 727 $ 4,277 $ 10,807 $ 6,969 $ 735 $ 3,648 $ 11,352

1,502 967 398 2,867 1,640 752 88 2,480
(588) (91) (56) (735) (674) (79) (106) (859)
914 876 342 2,132 966 673 (18) 1,621
156 — — 156 208 — — 208
471 1,191 541 2,203 (64) 670 604 1,210
(9) — 2 (7) 72 (5) 7 74
$ 5,195 $ 1,042 $ 4,478 $ 10,715 $ 5,803 $ 727 $ 4,277 $ 10,807
$ 308 $ 83 (c) $ 342 $ 733 $ 364 $ 91 (c) $ 273 $ 728

2,576 959 4,136 7,671 2,697 636 4,004 7,337
2,311 — — 2,311 2,742 — — 2,742
$ 5,195 $ 1,042 $ 4,478 $ 10,715 $ 5,803 $ 727 $ 4,277 $ 10,807
$ 8,930 $ 285 $ 2,017 $ 11,232 $ 9,595 $ 288 $ 1,015 $ 10,898

319,751 35,488 385,112 740,351 293,707 30,701 355,012 679,420
35,679 — 3 35,682 40,998 — 4 41,002
$ 364,360 $ 35,773 $ 387,132 $ 787,265 $ 344,300 $ 30,989 $ 356,031 $ 731,320
$ 97 $ — $ 7 $ 104 $ 104 $ — $ 16 $ 120

2,390 — 300 2,690 2,564 — 283 2,847
$ 14 $ — $ 772 $ 786 $ 13 $ — $ 606 $ 619

— — 283 283 1 — 165 166
12 — (3) 9 — — 1 1
$ 26 $ — $ 1,052 $ 1,078 $ 14 $ — $ 772 $ 786
$ — $ — $ 169 $ 169 $ — $ — $ 73 $ 73
26 — 883 909 14 — 699 713
$ 26 $ — $ 1,052 $ 1,078 $ 14 $ — $ 772 $ 786
$ — $ — $ 506 $ 506 $ — $ — $ 193 $ 193

53,461 (d)
11,198 363,455 428,114 (d)
57,027 (d)
10,386 360,589 428,002 (d)
$ 53,461 (d)
$ 11,198 $ 363,961 $ 428,620 (d)
$ 57,027 (d)
$ 10,386 $ 360,782 $ 428,195 (d)

Note 15 – Variable interest entities

For a further description of JPMorgan Chase Bank, N.A.’s accounting policies regarding consolidation of VIEs, see Note 1.
The following table summarizes the most significant types of JPMorgan Chase Bank, N.A.-sponsored VIEs by each JPMorgan
Chase Bank, N.A. business. JPMorgan Chase Bank, N.A. considers a “sponsored” VIE to include any entity where: (1) JPMorgan
Chase Bank, N.A. is the primary beneficiary of the structure; (2) the VIE is used by JPMorgan Chase Bank, N.A. to securitize
JPMorgan Chase Bank, N.A. assets; (3) the VIE issues financial instruments with the JPMorgan Chase Bank, N.A. name; or (4)
the entity is a JPMorgan Chase Bank, N.A.–administered asset-backed commercial paper conduit.
JPMorgan Chase Consolidated Financial

Bank, N.A. Statements page
business Transaction Type Activity reference
Consumer & Mortgage securitization trusts Servicing and securitization of both originated and 100-102
community banking purchased residential mortgages
Mortgage and other securitization trusts Securitization of both originated and purchased
residential and commercial mortgages and other 100-102
consumer loans
Corporate &
investment banking Multi-seller conduits Assist clients in accessing the financial markets in a cost-
efficient manner and structures transactions to meet 102-103
investor needs
Municipal bond vehicles Financing municipal bond investments 103
JPMorgan Chase Bank, N.A.’s other businesses are also involved with VIEs (both third-party and JPMorgan Chase Bank, N.A.-
sponsored), but to a lesser extent, as follows:
• Commercial banking business: The commercial banking business provides financing and lending-related services to a wide
spectrum of clients, including certain third party-sponsored entities that may meet the definition of a VIE. The commercial
banking business does not control the activities of these entities and does not consolidate these entities. The commercial
banking business’ maximum loss exposure, regardless of whether the entity is a VIE, is generally limited to loans and
lending-related commitments which are reported and disclosed in the same manner as any other third-party transaction.
• Corporate function: The corporate function is involved with entities that may meet the definition of VIEs; however these
entities are generally subject to specialized investment company accounting, which does not require the consolidation of
investments, including VIEs. In addition, the corporate function invests in securities generally issued by third parties which
may meet the definition of VIEs (e.g., issuers of asset-backed securities). In general, JPMorgan Chase Bank, N.A. does not
have the power to direct the significant activities of these entities and therefore does not consolidate these entities. See
Note 11 for further information on JPMorgan Chase Bank, N.A.’s investment securities portfolio.
In addition, the corporate & investment banking business also invests in and provides financing and other services to VIEs
sponsored by third parties. See page 105 of this Note for more information on the VIEs sponsored by third parties.
Significant JPMorgan Chase Bank, N.A.-sponsored variable interest entities

Mortgage and other securitization trusts
JPMorgan Chase Bank, N.A. securitizes (or has securitized) originated and purchased residential mortgages, commercial
mortgages and other consumer loans primarily in its consumer & community banking and corporate & investment banking
businesses. Depending on the particular transaction, as well as the respective business involved, JPMorgan Chase Bank, N.A.
may act as the servicer of the loans and/or retain certain beneficial interests in the securitization trusts.

The following table presents the total unpaid principal amount of assets held in JPMorgan Chase Bank, N.A.-sponsored private-
label securitization entities, including those in which JPMorgan Chase Bank, N.A. has continuing involvement, and those that
are consolidated by JPMorgan Chase Bank, N.A. 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 transactions. In certain instances, JPMorgan Chase Bank, N.A.’s only continuing involvement is
servicing the loans. See Securitization activity on page 106 of this Note for further information regarding JPMorgan Chase
Bank, N.A.’s cash flows with and interests retained in nonconsolidated VIEs, and pages 106-107 of this Note for information on
JPMorgan Chase Bank, N.A.’s loan sales to U.S. government agencies.
JPMorgan Chase Bank, N.A. interest in securitized assets in

Principal amount outstanding nonconsolidated VIEs(c)(d)
Assets held in Total interests

Total assets Assets nonconsolidated held by
held in securitization
held by consolidated VIEs with Other JPMorgan
securitization securitization continuing financial Chase Bank,
December 31, 2017 (in millions) VIEs VIEs involvement Trading assets Securities assets N.A.
Securitization-related(a)
Residential mortgage:
Prime/Alt-A and option ARMs $ 48,599 $ 3,615 $ 39,370 $ 215 $ 845 $ — $ 1,060
Subprime 12,716 — 11,978 — — — —
Commercial and other(b) 92,278 63 23,604 61 1,042 157 1,260
Total $ 153,593 $ 3,678 $ 74,952 $ 276 $ 1,887 $ 157 $ 2,320
JPMorgan Chase Bank, N.A. interest in securitized assets in

Principal amount outstanding nonconsolidated VIEs(c)(d)
Assets held in Total interests

Total assets Assets nonconsolidated held by
held in securitization
held by consolidated VIEs with Other JPMorgan
securitization securitization continuing financial Chase Bank,
December 31, 2016 (in millions) VIEs VIEs involvement Trading assets Securities assets N.A.
Securitization-related(a)
Prime/Alt-A and option ARMs $ 52,258 $ 4,209 $ 42,881 (e) $ 124 $ 1,203 $ — $ 1,327
Subprime 14,260 — 13,421 — — — —
Commercial and other(b) 91,084 107 22,989 (e) 3 1,712 — 1,715
Total $ 157,602 $ 4,316 $ 79,291 (e) $ 127 $ 2,915 $ — $ 3,042
(a) Excludes U.S. government agency securitizations. See pages 106-107 of this Note for information on JPMorgan Chase Bank, N.A.’s loan sales to U.S.
government agencies.
(b) Consists of securities backed by commercial loans (predominantly real estate) and non-mortgage-related consumer receivables purchased from third
parties.
(c) Excludes the following: retained servicing (see Note 16 for a discussion of MSRs); securities retained from loan sales to U.S. government agencies; interest
rate and foreign exchange derivatives primarily used to manage interest rate and foreign exchange risks of securitization entities (See Note 6 for further
information on derivatives). There were no senior and subordinated securities purchased in connection with the corporate & investment banking business’s
secondary market-making activities at December 31, 2017 and 2016, respectively.
(d) As of December 31, 2017 and 2016, 67% and 88%, respectively, of JPMorgan Chase Bank, N.A.’s retained securitization interests, which are
predominantly carried at fair value and include amounts required to be held pursuant to credit risk retention rules, were risk-rated “A” or better, on an
S&P-equivalent basis. The retained interests in prime residential mortgages consisted of $1.0 billion and $1.3 billion of investment-grade and $23 million
and $44 million of noninvestment-grade retained interests at December 31, 2017 and 2016, respectively. The retained interests in commercial and other
securitizations trusts consisted of $1.0 billion and $1.7 billion of investment-grade and $212 million and zero of noninvestment-grade retained interests
at December 31, 2017 and 2016, respectively.
(e) Prior period results were revised to conform with the current period presentation.

Residential mortgage Commercial mortgages and other consumer securitizations

JPMorgan Chase Bank, N.A. securitizes residential mortgage The corporate & investment banking business originates
loans originated by the consumer & community banking and securitizes commercial mortgage loans, and engages in
business, as well as residential mortgage loans purchased underwriting and trading activities involving the securities
from third parties by either the consumer & community issued by securitization trusts. The corporate & investment
banking business or the corporate & investment banking banking business may retain unsold senior and/or
business. The consumer & community banking business subordinated interests (including amounts required to be
generally retains servicing for all residential mortgage loans held pursuant to credit risk retention rules) in commercial
it originated or purchased, and for certain mortgage loans mortgage securitizations at the time of securitization but,
purchased by the corporate & investment banking business. generally, JPMorgan Chase Bank, N.A. does not service
For securitizations of loans serviced by the consumer & commercial loan securitizations. For commercial mortgage
community banking business, JPMorgan Chase Bank, N.A. securitizations the power to direct the significant activities
has the power to direct the significant activities of the VIE of the VIE generally is held by the servicer or investors in a
because it is responsible for decisions related to loan specified class of securities (“controlling class”). JPMorgan
modifications and workouts. The consumer & community Chase Bank, N.A. generally does not retain an interest in the
banking business may also retain an interest upon controlling class in its sponsored commercial mortgage
securitization. securitization transactions. See the table on page 104 of
this Note for more information on the consolidated
In addition, the corporate & investment banking business
commercial mortgage securitizations, and the table on the
engages in underwriting and trading activities involving
previous page of this Note for further information on
securities issued by JPMorgan Chase Bank, N.A.-sponsored
interests held in nonconsolidated securitizations.
securitization trusts. As a result, the corporate & investment
banking business at times retains senior and/or Multi-seller conduits
subordinated interests (including residual interests and Multi-seller conduit entities are separate bankruptcy
amounts required to be held pursuant to credit risk remote entities that provide secured financing,
retention rules) in residential mortgage securitizations at collateralized by pools of receivables and other financial
the time of securitization, and/or reacquires positions in the assets, to customers of JPMorgan Chase Bank, N.A. The
secondary market in the normal course of business. In conduits fund their financing facilities through the issuance
certain instances, as a result of the positions retained or of highly rated commercial paper. The primary source of
reacquired by the corporate & investment banking business repayment of the commercial paper is the cash flows from
or held by the consumer & community banking business, the pools of assets. In most instances, the assets are
when considered together with the servicing arrangements structured with deal-specific credit enhancements provided
entered into by the consumer & community banking to the conduits by the customers (i.e., sellers) or other third
business, JPMorgan Chase Bank, N.A. is deemed to be the parties. Deal-specific credit enhancements are generally
primary beneficiary of certain securitization trusts. See the structured to cover a multiple of historical losses expected
table on page 104 of this Note for more information on on the pool of assets, and are typically in the form of
consolidated residential mortgage securitizations. overcollateralization provided by the seller. The deal-
specific credit enhancements mitigate JPMorgan Chase
JPMorgan Chase Bank, N.A. does not consolidate a
Bank, N.A.’s potential losses on its agreements with the
residential mortgage securitization (JPMorgan Chase Bank,
conduits.
N.A.-sponsored or third-party-sponsored) when it is not the
servicer (and therefore does not have the power to direct To ensure timely repayment of the commercial paper, and
the most significant activities of the trust) or does not hold to provide the conduits with funding to provide financing to
a beneficial interest in the trust that could potentially be customers in the event that the conduits do not obtain
significant to the trust. See the table on page 104 of this funding in the commercial paper market, each asset pool
Note for more information on the consolidated residential financed by the conduits has a minimum 100% deal-
mortgage securitizations, and the table on the previous specific liquidity facility associated with it provided by
page of this Note for further information on interests held JPMorgan Chase Bank, N.A. JPMorgan Chase Bank, N.A. also
in nonconsolidated residential mortgage securitizations. provides the multi-seller conduit vehicles with uncommitted
program-wide liquidity facilities and program-wide credit
enhancement in the form of standby letters of credit. The
amount of program-wide credit enhancement required is
based upon commercial paper issuance and approximates
10% of the outstanding balance of commercial paper.

JPMorgan Chase Bank, N.A. consolidates its JPMorgan Chase Municipal bond vehicles
Bank, N.A.-administered multi-seller conduits, as it has both Municipal bond vehicles or tender option bond (“TOB”) trusts
the power to direct the significant activities of the conduits allow institutions to finance their municipal bond investments
and a potentially significant economic interest in the at short-term rates. In a typical TOB transaction, the trust
conduits. As administrative agent and in its role in purchases highly rated municipal bond(s) of a single issuer
structuring transactions, JPMorgan Chase Bank, N.A. makes and funds the purchase by issuing two types of securities: (1)
decisions regarding asset types and credit quality, and puttable floating-rate certificates (“Floaters”) and (2) inverse
manages the commercial paper funding needs of the floating-rate residual interests (“Residuals”). The Floaters are
conduits. JPMorgan Chase Bank, N.A.’s interests that could typically purchased by money market funds or other short-
potentially be significant to the VIEs include the fees term investors and may be tendered, with requisite notice, to
received as administrative agent and liquidity and program- the TOB trust. The Residuals are retained by the investor
wide credit enhancement provider, as well as the potential seeking to finance its municipal bond investment. TOB
exposure created by the liquidity and credit enhancement transactions where the Residual is held by a third party
facilities provided to the conduits. See page 104 of this investor are typically known as Customer TOB trusts, and Non-
Note for further information on consolidated VIE assets and Customer TOB trusts are transactions where the Residual is
liabilities. retained by JPMorgan Chase Bank, N.A. Customer TOB trusts
are sponsored by a third party; see page 105 on this Note for
In the normal course of business, JPMorgan Chase Bank,
further information. JPMorgan Chase Bank, N.A. serves as
N.A. makes markets in and invests in commercial paper
sponsor for all Non-Customer TOB transactions. JPMorgan
issued by JPMorgan Chase Bank, N.A.-administered multi-
Chase Bank, N.A. may provide various services to a TOB trust,
seller conduits. JPMorgan Chase Bank, N.A. held $20.4
including liquidity or tender option provider, and/or sponsor.
billion and $21.2 billion of the commercial paper issued by
JPMorgan Chase Bank, N.A.-administered multi-seller JPMorgan Chase Bank, N.A. often serves as the sole liquidity
conduits at December 31, 2017 and 2016, respectively, or tender option provider for the TOB trusts. The liquidity
which have been eliminated in consolidation. JPMorgan provider’s obligation to perform is conditional and is limited
Chase Bank, N.A.’s investments reflect its funding needs and by certain events (“Termination Events”), which include
capacity and were not driven by market illiquidity. Other bankruptcy or failure to pay by the municipal bond issuer or
than the amounts required to be held pursuant to credit risk credit enhancement provider, an event of taxability on the
retention rules, JPMorgan Chase Bank, N.A. is not obligated municipal bonds or the immediate downgrade of the
under any agreement to purchase the commercial paper municipal bond to below investment grade. In addition, the
issued by JPMorgan Chase Bank, N.A.-administered multi- liquidity provider’s exposure is typically further limited by
seller conduits. the high credit quality of the underlying municipal bonds,
the excess collateralization in the vehicle, or, in certain
JPMorgan Chase Bank, N.A. provides deal-specific liquidity
transactions, the reimbursement agreements with the
as well as program-wide liquidity and credit enhancement
Residual holders.
to its administered multi-seller conduits, which have been
eliminated in consolidation. The administered multi-seller Holders of the Floaters may “put,” or tender, their Floaters
conduits then provide certain of their clients with lending- to the TOB trust. If the remarketing agent cannot
related commitments. The unfunded commitments were successfully remarket the Floaters to another investor, the
$8.8 billion and $7.4 billion at December 31, 2017 and liquidity provider either provides a loan to the TOB trust for
2016, respectively, and are reported as off-balance sheet the TOB trust’s purchase of the Floaters, or it directly
lending-related commitments. For more information on off- purchases the tendered Floaters.
balance sheet lending-related commitments, see Note 25.
TOB trusts are considered to be variable interest entities.
JPMorgan Chase Bank, N.A. consolidates Non-Customer TOB
trusts because as the Residual holder, JPMorgan Chase
Bank, N.A. has the right to make decisions that significantly
impact the economic performance of the municipal bond
vehicle, and it has the right to receive benefits and bear
losses that could potentially be significant to the municipal
bond vehicle. See page 104 of this Note for further
information on consolidated municipal bond vehicles.

Consolidated VIE assets and liabilities

The following table presents information on assets and liabilities related to VIEs consolidated by JPMorgan Chase Bank, N.A. as
Assets Liabilities
Beneficial
Trading Total interests in Total
December 31, 2017 (in millions) assets Loans Other(d) assets(e) VIE assets(f) Other(g) liabilities
VIE program type(a)
JPMorgan Chase Bank, N.A.-administered
multi-seller conduits $ — $ 23,411 $ 48 $ 23,459 $ 3,045 $ 53 $ 3,098
Municipal bond vehicles 1,278 — 3 1,281 1,360 2 1,362
Mortgage securitization entities(b) — 3,661 55 3,716 314 199 513
Student loan securitization entities(c) — — — — — — —
Other 102 — 1,592 1,694 134 — 134
Total $ 1,380 $ 27,072 $ 1,698 $ 30,150 $ 4,853 $ 254 $ 5,107
Assets Liabilities
Beneficial
Trading Total interests in Total
December 31, 2016 (in millions) assets Loans Other(d) assets(e) VIE assets(f) Other(g) liabilities
VIE program type(a)
JPMorgan Chase Bank, N.A.-administered
multi-seller conduits $ — $ 23,760 $ 43 $ 23,803 $ 2,719 $ 56 $ 2,775
Municipal bond vehicles 2,540 — 5 2,545 2,673 2 2,675
Mortgage securitization entities(b) — 4,246 103 4,349 355 313 668
Student loan securitization entities(c) — 1,689 59 1,748 1,527 4 1,531
Other 115 — 1,940 2,055 177 2 179
Total $ 2,655 $ 29,695 $ 2,150 $ 34,500 $ 7,451 $ 377 $ 7,828
(a) Excludes intercompany transactions, which are eliminated in consolidation.
(b) Includes residential and commercial mortgage securitizations.
(c) JPMorgan Chase Bank, N.A. deconsolidated the student loan securitization entities in the first half of 2017 as it no longer had a controlling financial
interest in these entities as a result of the sale of the student loan portfolio.
(d) Includes assets classified as cash and other assets on the Consolidated balance sheets.
(e) The assets of the consolidated VIEs included in the program types above are used to settle the liabilities of those entities. The difference between total
assets and total liabilities recognized for consolidated VIEs represents JPMorgan Chase Bank, N.A.’s interest in the consolidated VIEs for each program
type.
(f) The interest-bearing beneficial interest liabilities issued by consolidated VIEs are classified in the line item on the Consolidated balance sheets titled,
“Beneficial interests issued by consolidated variable interest entities.” The holders of these beneficial interests do not have recourse to the general credit
of JPMorgan Chase Bank, N.A. Included in beneficial interests in VIE assets are long-term beneficial interests of $447 million and $2.1 billion at
December 31, 2017 and 2016, respectively. For additional information on interest bearing long-term beneficial interest, see Note 19.
(g) Includes liabilities classified as accounts payable and other liabilities on the Consolidated balance sheets.

VIEs sponsored by third parties
JPMorgan Chase Bank, N.A. enters into transactions with the Residual holder. In those transactions, upon the
VIEs structured by other parties. These include, for termination of the vehicle, JPMorgan Chase Bank, N.A. has
example, acting as a derivative counterparty, liquidity recourse to the third party Residual holders for any
provider, investor, underwriter, placement agent, shortfall. JPMorgan Chase Bank, N.A. does not have any
remarketing agent, trustee or custodian. These transactions intent to protect Residual holders from potential losses on
are conducted at arm’s-length, and individual credit any of the underlying municipal bonds. JPMorgan Chase
decisions are based on the analysis of the specific VIE, Bank, N.A. does not consolidate Customer TOB trusts, since
taking into consideration the quality of the underlying JPMorgan Chase Bank, N.A. does not have the power to
assets. Where JPMorgan Chase Bank, N.A. does not have the make decisions that significantly impact the economic
power to direct the activities of the VIE that most performance of the municipal bond vehicle. JPMorgan
significantly impact the VIE’s economic performance, or a Chase Bank, N.A. maximum exposure as a liquidity provider
variable interest that could potentially be significant, to Customer TOB trusts at December 31, 2017 and 2016,
JPMorgan Chase Bank, N.A. generally does not consolidate was $5.3 billion and $5.0 billion, respectively. The fair
the VIE, but it records and reports these positions on its value of assets held by such VIEs at December 31, 2017
Consolidated balance sheets in the same manner it would and 2016 was $9.0 billion and 8.6 billion, respectively. For
record and report positions in respect of any other third- more information on off-balance sheet lending-related
party transaction. commitments, see Note 25.
Tax credit vehicles Loan securitizations
JPMorgan Chase Bank, N.A. holds investments in JPMorgan Chase Bank, N.A. has securitized and sold a
unconsolidated tax credit vehicles, which are limited variety of loans, including residential mortgage, credit card,
partnerships and similar entities that construct, own and student and commercial (primarily related to real estate)
operate affordable housing and wind projects. These loans, as well as debt securities. The purposes of these
entities are primarily considered VIEs. A third party is securitization transactions were to satisfy investor demand
typically the general partner or managing member and has and to generate liquidity for JPMorgan Chase Bank, N.A.
control over the significant activities of the tax credit
For loan securitizations in which JPMorgan Chase Bank, N.A.
vehicles, and accordingly JPMorgan Chase Bank, N.A. does
is not required to consolidate the trust, JPMorgan Chase
not consolidate tax credit vehicles. JPMorgan Chase Bank,
Bank, N.A. records the transfer of the loan receivable to the
N.A. generally invests in these partnerships as a limited
trust as a sale when all of the following accounting criteria
partner and earns a return primarily through the receipt of
for a sale are met: (1) the transferred financial assets are
tax credits allocated to the projects. The maximum loss
legally isolated from JPMorgan Chase Bank, N.A.’s creditors;
exposure, represented by equity investments and funding
(2) the transferee or beneficial interest holder can pledge
commitments, was $7.8 billion and $8.6 billion, of which
or exchange the transferred financial assets; and
$2.4 billion and $2.7 billion was unfunded at December 31,
(3) JPMorgan Chase Bank, N.A. does not maintain effective
2017 and 2016 respectively. In order to reduce the risk of
control over the transferred financial assets (e.g., JPMorgan
loss, JPMorgan Chase Bank, N.A. assesses each project and
Chase Bank, N.A. cannot repurchase the transferred assets
withholds varying amounts of its capital investment until
before their maturity and it does not have the ability to
qualification of the project for tax credits. See Note 22 for
unilaterally cause the holder to return the transferred
further information on affordable housing tax credits. For
assets).
more information on off-balance sheet lending-related
commitments, see Note 25. For loan securitizations accounted for as a sale, JPMorgan
Chase Bank, N.A. recognizes a gain or loss based on the
Customer municipal bond vehicles (TOB trusts)
difference between the value of proceeds received
JPMorgan Chase Bank, N.A. may provide various services to
(including cash, beneficial interests, or servicing assets
Customer TOB trusts, including remarketing agent, liquidity
received) and the carrying value of the assets sold. Gains
or tender option provider. In certain Customer TOB
and losses on securitizations are reported in noninterest
transactions, JPMorgan Chase Bank, N.A. as liquidity
revenue.
provider, has entered into a reimbursement agreement with

Securitization activity
The following table provides information related to JPMorgan Chase Bank, N.A.’s securitization activities for the years ended
December 31, 2017, 2016 and 2015, related to assets held in JPMorgan Chase Bank, N.A.-sponsored securitization entities
that were not consolidated by JPMorgan Chase Bank, N.A., and where sale accounting was achieved at the time of the
securitization.
2017 2016 2015
Year ended December 31, Credit Residential Commercial Credit Residential Commercial Credit Residential Commercial
(in millions, except rates) card(b) mortgage(c) and other(d) card(b) mortgage(c) and other(d) card(b) mortgage(c) and other(d)
Principal securitized $ — $ 5,532 $ 10,252 $ 3,320 $ 1,817 $ 8,964 $ 3,330 $ 3,008 $ 11,983
Pretax gain/(loss) — — (e) — (e) (1) — (e) — (e) (2) — (e) — (e)
All cash flows during the period:
Proceeds received from loan sales

as cash $ — $ 5,627 $ 10,123 $ 3,320 $ 1,760 $ 9,094 $ 3,330 $ 2,077 $ 11,661
Proceeds received from loan sales
as securities or other financial
assets — 34 214 — 71 — — 945 350
Total proceeds received from loan

sales $ — $ 5,661 $ 10,337 $ 3,320 $ 1,831 $ 9,094 $ 3,330 $ 3,022 $ 12,011
Servicing fees collected — 525 2 — 477 3 — 528 3
Proceeds from collections
reinvested in revolving
securitizations — — — 38,991 — — 44,734 — —
Purchases of previously transferred

financial assets (or the underlying
collateral)(a) — 1 — — 37 — — 2 —
Cash flows received on interests — 383 632 9,317 408 830 15,309 321 533
(a) Includes cash paid by JPMorgan Chase Bank, N.A. to reacquire assets from off–balance sheet, nonconsolidated entities – for example, loan repurchases due to
representation and warranties and servicer clean-up calls.
(b) For the years ended December 31, 2016 and 2015, includes securitization activity related to JPMorgan Chase Bank, N.A.’s undivided interest in credit card
securitization trusts. On November 1, 2016, JPMorgan Chase Bank, N.A. sold its undivided interests in the Trusts to an affiliate.
(c) Includes prime/Alt-A, subprime, and option ARMs. Excludes certain loan securitization transactions entered into with Ginnie Mae, Fannie Mae and Freddie Mac.
(d) Includes commercial mortgage and other consumer loans.
(e) JPMorgan Chase Bank, N.A. elected the fair value option for loans pending securitization. The carrying value of these loans accounted for at fair value approximated
the proceeds received from securitization.
Key assumptions used to value retained interests originated Loans and excess MSRs sold to U.S. government-
during the year are shown in the table below. sponsored enterprises, loans in securitization
transactions pursuant to Ginnie Mae guidelines, and other
Year ended December 31, 2017 2016 2015 third-party-sponsored securitization entities
Residential mortgage retained interest: In addition to the amounts reported in the securitization
Weighted-average life (in years) 3.8 4.1 — activity tables above, JPMorgan Chase Bank, N.A., in the
Weighted-average discount rate 3.0% 2.9% —% normal course of business, sells originated and purchased
Commercial mortgage retained interest: mortgage loans and certain originated excess MSRs on a
Weighted-average life (in years) 5.3 — — nonrecourse basis, predominantly to U.S. government
Weighted-average discount rate 4.7% —% —% sponsored enterprises (“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). JPMorgan Chase
Bank, N.A.also sells loans into securitization transactions
pursuant to Ginnie Mae guidelines; these loans are typically
insured or guaranteed by another U.S. government agency.
JPMorgan Chase Bank, N.A. does not consolidate the
securitization vehicles underlying these transactions as it is
not the primary beneficiary. For a limited number of loan
sales, JPMorgan Chase Bank, N.A. is obligated to share a
portion of the credit risk associated with the sold loans with
the purchaser. See Note 25 for additional information about
JPMorgan Chase Bank, N.A.’s loan sales- and securitization-
related indemnifications.

See Note 16 for additional information about the impact of Options to repurchase delinquent loans
JPMorgan Chase Bank, N.A.’s sale of certain excess MSRs. In addition to JPMorgan Chase Bank, N.A.’s obligation to
repurchase certain loans due to material breaches of
The following table summarizes the activities related to
representations and warranties as discussed in Note 25.
loans sold to the U.S. GSEs, loans in securitization
JPMorgan Chase Bank, N.A. also has the option to
transactions pursuant to Ginnie Mae guidelines, and other
repurchase delinquent loans that it services for Ginnie Mae
third-party-sponsored securitization entities.
loan pools, as well as for other U.S. government agencies
Year ended December 31, under certain arrangements. JPMorgan Chase Bank, N.A.
(in millions) 2017 2016 2015 typically elects to repurchase delinquent loans from Ginnie
Carrying value of loans sold $ 64,542 $ 52,869 $ 42,161 Mae loan pools as it continues to service them and/or
Proceeds received from loan manage the foreclosure process in accordance with the
sales as cash $ 117 $ 592 $ 313 applicable requirements, and such loans continue to be
Proceeds from loans sales as insured or guaranteed. When JPMorgan Chase Bank, N.A.’s
securities(a) 63,542 51,852 41,615
repurchase option becomes exercisable, such loans must be
Total proceeds received from reported on the Consolidated balance sheets as a loan with
loan sales(b) $ 63,659 $ 52,444 $ 41,928
a corresponding liability.
Gains on loan sales(c)(d)
$ 163 $ 222 $ 299
(a) Predominantly includes securities from U.S. GSEs and Ginnie Mae that December 31,
are generally sold shortly after receipt. (in millions) 2017 2016
(b) Excludes the value of MSRs retained upon the sale of loans. Loans repurchased or option to
(c) Gains on loan sales include the value of MSRs. repurchase(a) $ 8,617 $ 9,543
(d) The carrying value of the loans accounted for at fair value Real estate owned 95 142
approximated the proceeds received upon loan sale.
Foreclosed government-guaranteed
residential mortgage loans(b) 527 1,007
(a) Predominantly all of these amounts relate to loans that have been
repurchased from Ginnie Mae loan pools.
(b) Relates to voluntary repurchases of loans, which are included in
accrued interest and accounts receivable.
Loan delinquencies and liquidation losses

The table below includes information about components of nonconsolidated securitized financial assets held in JPMorgan
Chase Bank, N.A.-sponsored private-label securitization entities, in which JPMorgan Chase Bank, N.A. has continuing
involvement, and delinquencies as of December 31, 2017 and 2016.
Securitized assets 90 days past due Liquidation losses
As of or for the year ended December 31, (in millions) 2017 2016 2017 2016 2017 2016
Securitized loans
Prime/ Alt-A & option ARMs $ 39,370 $ 42,881 (a)
$ 3,178 $ 4,026 (a)
$ 479 $ 677 (a)
Subprime 11,978 13,421 2,070 2,635 418 720 (a)
Commercial and other 23,604 22,989 (a)

78 653 (a)
1 372 (a)
Total loans securitized $ 74,952 $ 79,291 $ 5,326 $ 7,314 $ 898 $ 1,769

(a) Prior period results were revised to conform with the current period presentation.

Note 16 – Goodwill and Mortgage servicing rights

Goodwill material impairment charge to earnings in a future period
Goodwill is recorded upon completion of a business related to some portion of the associated goodwill.
combination as the difference between the purchase price
Mortgage servicing rights
and the fair value of the net assets acquired. Subsequent to
MSRs represent the fair value of expected future cash flows
initial recognition, goodwill is not amortized but is tested
for performing servicing activities for others. The fair value
for impairment during the fourth quarter of each fiscal year,
considers estimated future servicing fees and ancillary
or more often if events or circumstances, such as adverse
revenue, offset by estimated costs to service the loans, and
changes in the business climate, indicate there may be
generally declines over time as net servicing cash flows are
impairment.
received, effectively amortizing the MSR asset against
The following table presents changes in the carrying contractual servicing and ancillary fee income. MSRs are
amount of goodwill. either purchased from third parties or recognized upon sale
or securitization of mortgage loans if servicing is retained.
(in millions) 2017 2016 2015
As permitted by U.S. GAAP, JPMorgan Chase Bank, N.A. has
Balance at beginning of period(a) $ 27,130 $ 27,100 $ 27,282
elected to account for its MSRs at fair value. JPMorgan
Changes during the period from:
Chase Bank, N.A. treats its MSRs as a single class of
Business combinations(b) 199 — 28
servicing assets based on the availability of market inputs
Dispositions — — (59)
used to measure the fair value of its MSR asset and its
Other(c) 21 30 (151)
treatment of MSRs as one aggregate pool for risk
Balance at December 31,(a) $ 27,350 $ 27,130 $ 27,100
management purposes. JPMorgan Chase Bank, N.A.
(a) Reflects gross goodwill balances as JPMorgan Chase Bank, N.A. has not estimates the fair value of MSRs using an option-adjusted
recognized any impairment losses to date. spread (“OAS”) model, which projects MSR cash flows over
(b) For 2017, represents consumer & community banking business
goodwill in connection with an acquisition. multiple interest rate scenarios in conjunction with
(c) Includes foreign currency translation adjustments and other tax- JPMorgan Chase Bank, N.A.’s prepayment model, and then
related adjustments. discounts these cash flows at risk-adjusted rates. The model
Impairment testing considers portfolio characteristics, contractually specified
Goodwill was not impaired at December 31, 2017, 2016 servicing fees, prepayment assumptions, delinquency rates,
and 2015. costs to service, late charges and other ancillary revenue,
and other economic factors. JPMorgan Chase Bank, N.A.
The goodwill impairment test is performed in two steps. In compares fair value estimates and assumptions to
the first step, the current fair value of JPMorgan Chase observable market data where available, and also considers
Bank, N.A. is compared with its carrying value, including recent market activity and actual portfolio experience.
goodwill and other intangible assets. If the fair value is in
The fair value of MSRs is sensitive to changes in interest
excess of the carrying value, then the goodwill is considered
rates, including their effect on prepayment speeds. MSRs
to be not impaired. If the fair value is less than the carrying
typically decrease in value when interest rates decline
value, then a second step is performed. In the second step,
because declining interest rates tend to increase
the implied current fair value of the goodwill is determined
prepayments and therefore reduce the expected life of the
by comparing the fair value of JPMorgan Chase Bank, N.A.
net servicing cash flows that comprise the MSR asset.
(as determined in step one) to the fair value of the net
Conversely, securities (e.g., mortgage-backed securities),
assets of JPMorgan Chase Bank, N.A. as if it was being
principal-only certificates and certain derivatives (i.e., those
acquired in a business combination. The resulting implied
for which JPMorgan Chase Bank, N.A. receives fixed-rate
current fair value of goodwill is then compared with the
interest payments) increase in value when interest rates
carrying value of JPMorgan Chase Bank, N.A.’s goodwill. If
decline. JPMorgan Chase Bank, N.A. uses combinations of
the carrying value of the goodwill exceeds its implied
derivatives and securities to manage the risk of changes in
current fair value, then an impairment charge is recognized
the fair value of MSRs. The intent is to offset any interest-
for the excess. If the carrying value of goodwill is less than
rate related changes in the fair value of MSRs with changes
its implied current fair value, then no goodwill impairment
in the fair value of the related risk management
is recognized.
instruments.
Declines in business performance, increases in credit losses,
increases in capital requirements, as well as deterioration in
economic or market conditions, estimates of adverse
regulatory or legislative changes or increases in the
estimated market cost of equity, could cause the estimated
fair values of JPMorgan Chase Bank, N.A.’s, or its associated
goodwill to decline in the future, which could result in a

The following table summarizes MSR activity for the years The table below outlines the key economic assumptions
ended December 31, 2017, 2016 and 2015. used to determine the fair value of JPMorgan Chase Bank,
N.A.’s MSRs at December 31, 2017 and 2016, and outlines
As of or for the year ended
December 31, (in millions, except where the sensitivities of those fair values to immediate adverse
otherwise noted) 2017 2016 2015 changes in those assumptions, as defined below.
Fair value at beginning of period $ 6,096 $ 6,608 $ 7,436
December 31,
MSR activity: (in millions, except rates) 2017 2016
Originations of MSRs 1,103 679 550 Weighted-average prepayment speed
Purchase of MSRs — — 435 assumption (“CPR”) 9.35% 9.41%
Disposition of MSRs(a) (140) (109) (486) Impact on fair value of 10% adverse change $ (221) $ (231)
Net additions 963 570 499 Impact on fair value of 20% adverse change (427) (445)
Changes due to collection/realization of Weighted-average option adjusted spread 9.04% 8.55%
expected cash flows (797) (919) (922) Impact on fair value of 100 basis points
adverse change $ (250) $ (248)
Changes in valuation due to inputs and
assumptions: Impact on fair value of 200 basis points
adverse change (481) (477)
Changes due to market interest rates
and other(b) (202) (72) (160)
CPR: Constant prepayment rate.
Changes in valuation due to other
inputs and assumptions: Changes in fair value based on variation in assumptions
Projected cash flows (e.g., cost to generally cannot be easily extrapolated, because the
service) (102) (35) (112)
Discount rates (19) 7 (10) relationship of the change in the assumptions to the change
Prepayment model changes and in fair value are often highly interrelated and may not be
other(c) 91 (63) (123) linear. In this table, the effect that a change in a particular
Total changes in valuation due to assumption may have on the fair value is calculated without
other inputs and assumptions (30) (91) (245)
changing any other assumption. In reality, changes in one
Total changes in valuation due to factor may result in changes in another, which would either
inputs and assumptions $ (232) $ (163) $ (405)
magnify or counteract the impact of the initial change.
Fair value at December 31, $ 6,030 $ 6,096 $ 6,608
Change in unrealized gains/(losses)
included in income related to MSRs
held at December 31, $ (232) $ (163) $ (405)
Contractual service fees, late fees and
other ancillary fees included in income $ 1,886 $ 2,124 $ 2,533
Third-party mortgage loans serviced at
December 31, (in billions) $ 555.0 $ 593.3 $ 677.0
Servicer advances, net of an allowance
for uncollectible amounts, at
December 31, (in billions)(d) $ 4.0 $ 4.7 $ 6.5
(a) 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; JPMorgan Chase Bank, N.A. acquired the remaining
balance of those SMBS as trading securities.
(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 JPMorgan Chase Bank, N.A. 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.
JPMorgan Chase Bank, N.A.’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,
JPMorgan Chase Bank, N.A. 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.

Note 17 – Premises and equipment Note 18 – Deposits

Premises and equipment, including leasehold At December 31, 2017 and 2016, noninterest-bearing and
improvements, are carried at cost less accumulated interest-bearing deposits were as follows.
depreciation and amortization. JPMorgan Chase Bank, N.A.
computes depreciation using the straight-line method over
U.S. offices
the estimated useful life of an asset. For leasehold
Noninterest-bearing $ 397,080 $ 405,536
improvements, JPMorgan Chase Bank, N.A. uses the
Interest-bearing (included $15,006 and
straight-line method computed over the lesser of the $12,298 at fair value)(a) 874,806 830,735
remaining term of the leased facility or the estimated useful Total deposits in U.S. offices 1,271,886 1,236,271
life of the leased asset. Non-U.S. offices
JPMorgan Chase Bank, N.A. capitalizes certain costs Noninterest-bearing 16,282 15,072
associated with the acquisition or development of internal- Interest-bearing (included $6,374 and
use software. Once the software is ready for its intended $1,667 at fair value)(a) 246,739 228,895
use, these costs are amortized on a straight-line basis over Total deposits in non-U.S. offices 263,021 243,967
the software’s expected useful life and reviewed for Total deposits $1,534,907 $1,480,238
impairment on an ongoing basis. (a) Includes structured notes classified as deposits for which the fair value
option has been elected. For further discussion, see Note 4.
At December 31, 2017 and 2016, time deposits in

denominations of $250,000 or more were as follows.
U.S. offices $ 40,377 $ 39,598
Non-U.S. offices(a) 30,103 31,678
Total(a) $ 70,480 $ 71,276
(a) The prior period amounts have been revised to conform with the
current period presentation.
At December 31, 2017, the maturities of interest-bearing

time deposits were as follows.
December 31, 2017
(in millions) U.S. Non-U.S. Total
2018 $ 36,926 $ 28,506 $ 65,432
2019 13,941 540 14,481
2020 2,341 22 2,363
2021 4,283 26 4,309
2022 2,305 443 2,748
After 5 years 3,395 1,697 5,092
Total $ 63,191 $ 31,234 $ 94,425

Note 19 – Long-term debt
JPMorgan Chase Bank, N.A. 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 JPMorgan Chase Bank, N.A. 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, 2017.
By remaining maturity at 2017 2016

December 31,
(in millions, except rates) Under 1 year 1-5 years After 5 years Total Total
Long-term debt payable to
JPMorgan Chase & Co. and
affiliates
Senior debt: Variable rate $ 381 $ 20,249 $ 91 $ 20,721 $ 21,380
Interest rates(a) —% 1.71% —% 1.71% 0.91%
Subordinated debt: Variable rate $ — $ — $ — $ — $ 250
Interest rates(a) —% —% —% —% 2.80%
Subtotal $ 381 $ 20,249 $ 91 $ 20,721 $ 21,630
Long-term debt issued to unrelated
parties
Federal Home Loan Banks (“FHLB”)
advances: Fixed rate $ 4 $ 34 $ 130 $ 168 $ 179
Variable rate 10,450 24,800 11,000 46,250 58,040
Interest rates(a) 1.58-1.75% 1.46-1.80% 1.18-1.47% 1.18-1.80% 0.41-1.13%
Senior debt: Fixed rate $ 1,053 $ 3,743 $ 6,676 $ 11,472 $ 7,877
Variable rate 6,916 8,511 3,360 18,787 15,521
Interest rates(a) 0.22-2.09% 1.65-2.26% 1.00-7.28% 0.22-7.28% 0.00-7.28%
Subordinated debt: Fixed rate $ — $ — $ 313 $ 313 $ 3,884
Variable rate — — — — —
Interest rates(a) —% —% 8.25% 8.25% 6.00-8.25%
Subtotal $ 18,423 $ 37,088 $ 21,479 $ 76,990 $ 85,501
Total long-term debt(b)(c)(d) $ 18,804 $ 57,337 $ 21,570 $ 97,711 (f)(g) $ 107,131
Long-term beneficial interests:
Fixed rate $ 78 $ 14 $ — $ 92 $ 107
Variable rate — 42 314 356 1,952
Interest rates 2.5% 2.83-3.38% 1.98-3.75% 1.98-3.75% 1.07-3.75%
Total long-term beneficial
interests(e) $ 78 $ 56 $ 314 $ 448 $ 2,059
(a) The interest rates shown are the range of contractual rates in effect at December 31, 2017 and 2016, 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 use of these derivative
instruments modifies JPMorgan Chase Bank, N.A.’s exposure to the contractual interest rates disclosed in the table above. Including the effects of the hedge
accounting derivatives, the range of modified rates in effect at December 31, 2017, for total long-term debt was 0.22% to 7.28%, versus the contractual range of
0.22% to 8.25% presented in the table above. The interest rate ranges shown exclude structured notes accounted for at fair value.
(b) Included long-term debt of $49.3 billion and $60.4 billion secured by assets totaling $208.4 billion and $205.1 billion at December 31, 2017 and 2016,
respectively. The amount of long-term debt secured by assets does not include amounts related to hybrid instruments.
(c) Included $21.4 billion and $14.9 billion of long-term debt accounted for at fair value at December 31, 2017 and 2016, respectively.
(d) Included $2.0 billion and $1.5 billion of outstanding zero-coupon notes at December 31, 2017 and 2016, respectively. The aggregate principal amount of these
notes at their respective maturities is $4.0 billion and $2.9 billion, respectively. The aggregate principal amount reflects the contractual principal payment at
maturity, which may exceed the contractual principal payment at JPMorgan Chase Bank, N.A.’s next call date, if applicable.
(e) Included on the Consolidated balance sheets in beneficial interests issued by consolidated VIEs. Excluded short-term commercial paper and other short-term
beneficial interests of $4.4 billion and $5.4 billion at December 31, 2017 and 2016, respectively.
(f) At December 31, 2017, long-term debt in the aggregate of $38.6 billion was redeemable at the option of JPMorgan Chase Bank, N.A., in whole or in part, prior to
maturity, based on the terms specified in the respective instruments.
(g) The aggregate carrying values of debt that matures in each of the five years subsequent to 2017 is $18.8 billion in 2018, $39.4 billion in 2019, $9.5 billion in
2020, $6.4 billion in 2021 and $2.0 billion in 2022.

The weighted-average contractual interest rates for total JPMorgan Chase Bank, N.A’s unsecured debt does not
long-term debt excluding structured notes accounted for at contain requirements that would call for an acceleration of
fair value were 1.60% and 1.20% as of December 31, payments, maturities or changes in the structure of the
2017 and 2016, respectively. In order to modify exposure existing debt, provide any limitations on future borrowings
to interest rate movements, JPMorgan Chase Bank, N.A. or require additional collateral, based on unfavorable
utilizes derivative instruments, primarily interest rate changes in JPMorgan Chase Bank, N.A’s credit ratings,
swaps, in conjunction with some of its debt issuances. The financial ratios or earnings.
use of these instruments modifies JPMorgan Chase Bank,
N.A.’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
1.59% and 1.06% as of December 31, 2017 and 2016,
respectively.
Note 20 – Related party transactions

JPMorgan Chase Bank, N.A. regularly enters into transactions with JPMorgan Chase and its various subsidiaries.
Significant revenue- and expense-related transactions with these related parties are listed below.

Interest income $ 1,046 $ 615 $ 150
Interest expense 1,379 656 298
Net interest expense (333) (41) (148)
Noninterest revenue(a)
Principal transactions 1,871 2,433 (3,637)
All other income 6,125 6,769 6,906
Total noninterest revenue 7,996 9,202 3,269
Noninterest expense 5,806 5,692 3,875
Total net revenue $ 1,857 $ 3,469 $ (754)
Significant balances with these related parties are listed below.

Assets
Deposits with banks(b) $ 51,001 $ 32,500
Federal funds sold and securities purchased under resale agreements 41,014 72,097
Accrued interest and accounts receivable 13,479 11,936
All other assets 11,990 12,305
Liabilities
Deposits(c) 92,385 107,749
Federal funds purchased and securities loaned or sold under repurchase agreements 19,213 14,501
Accounts payable and other liabilities 11,826 12,118
Long-term debt 20,716 21,630
(a) The prior period amounts have been revised to conform with the current presentation.
(b) Primarily includes deposits placed with Chase Bank USA, N.A.
(c) At both December 31, 2017 and 2016, included $20.0 billion that was pledged to support extensions of credit and other transactions requiring collateral
with affiliates as defined by Section 23A under the Federal Reserve Act, which defines the constraints that apply to U.S. banks in certain of their
interactions with affiliates.

Derivative transactions
In addition to the information presented in the tables above, JPMorgan Chase Bank, N.A. executes derivative transactions with
affiliates as part of its client driven market-making activities and to facilitate hedging certain risks for its affiliates. To
accomplish this, JPMorgan Chase Bank, N.A. enters into substantially offsetting derivative transactions with third-parties and
records both the third party and related-party gains and losses in principal transactions revenue. The following table
summarizes information on derivative receivables and payables with affiliates before and after netting adjustments for legally
enforceable master netting agreements as of December 31, 2017 and December 31, 2016.
2017 2016
Gross derivative Net derivative Gross derivative Net derivative
December 31, (in billions) receivable/payable receivable/payable receivable/payable receivable/payable
Derivative receivables from affiliates $ 48,110 $ 140 $ 44,023 $ 1,363
Derivative payables to affiliates 48,115 94 44,185 1,524
Servicing agreements and fee arrangements

Through servicing agreements, JPMorgan Chase Bank, N.A. provides and receives operational support and services to and from
JPMorgan Chase and its subsidiaries. These servicing agreements cover certain occupancy, marketing, communication and
technology services, and other shared corporate service costs. JPMorgan Chase Bank, N.A. is allocated or allocates a share of
the cost of the services over the relevant service period based on the agreed methodology. Fees earned by JPMorgan Chase
Bank, N.A. for services provided to affiliates are recorded in all other income, and fees incurred by JPMorgan Chase Bank, N.A.
for services from affiliates are recorded in noninterest expense.

Note 21 – Accumulated other comprehensive income/(loss)

AOCI includes the after-tax change in unrealized gains and losses on investment securities, foreign currency translation
adjustments (including the impact of related derivatives), cash flow hedging activities, and net loss and prior service costs/(credit)
related to JPMorgan Chase Bank, N.A.’s defined benefit pension and OPEB plans.
Unrealized DVA on fair
gains/(losses) Translation value option Accumulated other
Year ended December 31, on investment adjustments, Cash flow Defined benefit pension elected comprehensive
(in millions) securities(b) net of hedges hedges and OPEB plans liabilities income/(loss)
Balance at December 31, 2014 $ 4,537 $ (23) $ (91) $ (467) $ — $ 3,956
Net change (2,104) (17) 46 139 — (1,936)
Balance at December 31, 2015 $ 2,433 $ (40) $ (45) $ (328) $ — $ 2,020
Cumulative effect of change in
accounting principle(a) — — — — 11 11
Net change (1,037) 4 (55) (27) (51) (1,166)
Balance at December 31, 2016 $ 1,396 $ (36) $ (100) $ (355) (40) $ 865
Net change 687 (309) 176 11 (55) 510
Balance at December 31, 2017 $ 2,083 $ (345) $ 76 $ (344) $ (95) $ 1,375
(a) Effective January 1, 2016, JPMorgan Chase Bank, N.A. adopted new accounting guidance related to the recognition and measurement of financial liabilities where the fair value
option has been elected. This guidance requires the portion of the total change in fair value caused by changes in JPMorgan Chase Bank, N.A. own credit risk (DVA) to be
presented separately in OCI; previously these amounts were recognized in net income.
(b) Represents the after-tax difference between the fair value and amortized cost of securities accounted for as AFS, including net unamortized unrealized gains and losses related
to AFS securities transferred to HTM.
The following table presents the pre-tax and after-tax changes in the components of OCI.
2017 2016 2015
Tax After- Tax After- Tax After-
Year ended December 31, (in millions) Pretax effect tax Pretax effect tax Pretax effect tax
Unrealized gains/(losses) on investment securities:
Net unrealized gains/(losses) arising during the period $ 1,012 $ (371) $ 641 $(1,528) $ 572 $ (956) $(3,247) $ 1,269 $ (1,978)
Reclassification adjustment for realized (gains)/losses
included in net income(a) 73 (27) 46 (130) 49 (81) (202) 76 (126)
Net change 1,085 (398) 687 (1,658) 621 (1,037) (3,449) 1,345 (2,104)
Translation adjustments(b):
Translation 844 (616) 228 118 (43) 75 (1,542) 562 (980)
Hedges (847) 310 (537) (109) 38 (71) 1,541 (578) 963
Net change (3) (306) (309) 9 (5) 4 (1) (16) (17)
Cash flow hedges:
Net unrealized gains/(losses) arising during the period 147 (55) 92 (449) 168 (281) (97) 36 (61)
Reclassification adjustment for realized (gains)/losses
included in net income(c)(d) 134 (50) 84 360 (134) 226 174 (67) 107
Net change 281 (105) 176 (89) 34 (55) 77 (31) 46
Defined benefit pension and OPEB plans:
Net gains/(losses) arising during the period 38 (14) 24 (150) 54 (96) 57 (21) 36
Reclassification adjustments included in net income(e):
Amortization of net loss 34 (12) 22 25 (10) 15 40 (15) 25
Prior service costs/(credits) (2) 1 (1) (2) 1 (1) (2) 1 (1)
Settlement loss/(gain) 2 (1) 1 4 (1) 3 — — —
Foreign exchange and other (52) 17 (35) 80 (28) 52 132 (53) 79
Net change 20 (9) 11 (43) 16 (27) 227 (88) 139
DVA on fair value option elected liabilities, net
change: $ (86) $ 31 $ (55) $ (83) $ 32 $ (51) $ — $ — $ —
Total other comprehensive income/(loss) $ 1,297 $ (787) $ 510 $(1,864) $ 698 $(1,166) $(3,146) $ 1,210 $ (1,936)
(a) The pre-tax amount is reported in securities gains/(losses) in the Consolidated statements of income.
(b) Reclassifications of pretax realized gains/(losses) on translation adjustments and related hedges are reported in other income/expense in the Consolidated statements of
income. The amounts were not material for the periods presented.
(c) The pre-tax amounts are primarily recorded in noninterest revenue, net interest income and compensation expense in the Consolidated statements of income.
(d) In 2015, JPMorgan Chase Bank, N.A. reclassified approximately $150 million of net losses from AOCI to other income because JPMorgan Chase Bank, N.A. determined that it is
probable that the forecasted interest payment cash flows would not occur. For additional information, see Note 6.
(e) The pre-tax amount is reported in compensation expense in the Consolidated statements of income.

Note 22 – Income taxes
The results of operations of JPMorgan Chase Bank, N.A. are Impact of the TCJA
included in the consolidated federal, New York State, New On December 22, 2017, the TCJA was signed into law.
York City and other state income tax returns filed by JPMorgan Chase Bank, N.A.’s effective tax rate increased in
JPMorgan Chase. Pursuant to a tax sharing agreement, 2017 driven by a $2.1 billion income tax expense
JPMorgan Chase allocates to JPMorgan Chase Bank, N.A. its representing the estimated impact of the enactment of the
share of the consolidated income tax expense or benefit TCJA. The $2.1 billion tax expense was predominantly
based upon statutory rates applied to JPMorgan Chase driven by a deemed repatriation of JPMorgan Chase Bank,
Bank, N.A.’s earnings as if it were filing separate income tax N.A.’s unremitted non-U.S. earnings and adjustments to the
returns. JPMorgan Chase Bank, N.A. uses the asset and value of certain tax-oriented investments partially offset by
liability method to provide for income taxes on all a benefit from the revaluation of JPMorgan Chase Bank,
transactions recorded in the Consolidated Financial
N.A.’s net deferred tax liability.
Statements. Valuation allowances are established when
necessary to reduce deferred tax assets to an amount that The deemed repatriation of JPMorgan Chase Bank, N.A.’s
in the opinion of management, is more likely than not to be unremitted non-U.S. earnings is based on the post-1986
realized. State and local income taxes are provided on earnings and profits of each controlled foreign
JPMorgan Chase Bank, N.A.’s taxable income at the effective corporation. The calculation resulted in an estimated
income tax rate applicable to the consolidated JPMorgan income tax expense of $3.9 billion. Furthermore,
Chase entity. accounting for income taxes requires the remeasurement of
The tax sharing arrangement between JPMorgan Chase and certain deferred tax assets and liabilities based on the rates
JPMorgan Chase Bank, N.A. allows for intercompany at which they are expected to reverse in the
payments to or from JPMorgan Chase for outstanding future. JPMorgan Chase Bank, N.A. remeasured its deferred
current tax assets or liabilities. tax asset and liability balances in December of 2017 to the
Due to the inherent complexities arising from the nature of new statutory U.S. federal income tax rate of 21% as well
JPMorgan Chase Bank, N.A.’s businesses, and from as any federal benefit associated with state and local
conducting business and being taxed in a substantial deferred income taxes. The remeasurement resulted in an
number of jurisdictions, significant judgments and estimated income tax benefit of $2.2 billion.
estimates are required to be made. Agreement of tax
The deemed repatriation and remeasurement of deferred
liabilities between JPMorgan Chase Bank, N.A. and the
many tax jurisdictions in which JPMorgan Chase Bank, N.A. taxes were calculated based on all available information
files tax returns may not be finalized for several years. Thus, and published legislative guidance. These amounts are
JPMorgan Chase Bank, N.A.’s final tax-related assets and considered to be estimates under SEC Staff Accounting
liabilities may ultimately be different from those currently Bulletin No. 118 as JPMorgan Chase Bank, N.A. anticipates
reported. refinements to both calculations. Anticipated refinements
will result from the issuance of future legislative and
Effective tax rate and expense accounting guidance as well as those in the normal course
A reconciliation of the applicable statutory U.S. federal of business, including true-ups to the tax liability on the tax
income tax rate to the effective tax rate for each of the return as filed and the resolution of tax audits.
years ended December 31, 2017, 2016 and 2015, is
presented in the following table. Adjustments were also recorded to income tax expense for
certain tax-oriented investments. These adjustments were
Effective tax rate due to changes to affordable housing proportional
Year ended December 31, 2017 2016 2015 amortization resulting from the reduction of the federal
Statutory U.S. federal tax rate 35.0% 35.0% 35.0% income tax rate under the TCJA. SEC Staff Accounting
Increase/(decrease) in tax rate Bulletin No. 118 does not apply to these adjustments.
resulting from:
U.S. state and local income
taxes, net of U.S. federal
income tax benefit 1.7 2.0 2.8
Tax-exempt income (3.0) (3.0) (3.3)
Non-U.S. subsidiary earnings(a) (2.2) (2.3) (5.2)
Business tax credits (2.3) (2.2) (2.6)
Nondeductible legal expense — 0.4 0.7
Impact of the TCJA 7.2 — —
Other, net (0.2) (1.0) (1.3)
Effective tax rate 36.2% 28.9% 26.1%
(a) Predominantly includes earnings of U.K. subsidiaries that were deemed

to be reinvested indefinitely through December 31, 2017.

The components of income tax expense/(benefit) included Prior to December 31, 2017, U.S. federal income taxes had
in the Consolidated statements of income were as follows not been provided on the undistributed earnings of certain
for each of the years ended December 31, 2017, 2016, and non-U.S. subsidiaries, to the extent that such earnings had
2015. been reinvested abroad for an indefinite period of time.
JPMorgan Chase Bank, N.A. will no longer maintain the
Income tax expense/(benefit) indefinite reinvestment assertion on the undistributed
Year ended December 31, earnings of those non-U.S. subsidiaries in light of the
(in millions) 2017 2016 2015
enactment of the TCJA. The U.S. federal and state and local
Current income tax expense/(benefit)
income taxes associated with the undistributed and
U.S. federal $ 8,111 $ 3,683 $ 3,109 previously untaxed earnings of those non-U.S. subsidiaries
Non-U.S. 2,151 1,565 963 was included in the deemed repatriation charge recorded as
U.S. state and local 577 656 858 of December 31, 2017.
Total current income tax expense/
(benefit) 10,839 5,904 4,930 JPMorgan Chase Bank, N.A. will treat any tax it may incur on
Deferred income tax expense/(benefit) global intangible low tax income as a period cost to tax
U.S. federal (73) 1,865 1,013 expense when the tax is incurred.
Non-U.S. (146) (73) (94) Affordable housing tax credits
U.S. state and local 114 172 131 JPMorgan Chase Bank, N.A. recognized $1.7 billion, $1.6
Total deferred income tax expense/ billion and $1.5 billion of tax credits and other tax benefits
(benefit) (105) 1,964 1,050
associated with investments in affordable housing projects
Total income tax expense $ 10,734 $ 7,868 $ 5,980 within income tax expense for the years 2017, 2016 and
2015, respectively. The amount of amortization of such
Total income tax expense includes $199 million, $34
investments reported in income tax expense under the
million and $311 million of tax benefits recorded in 2017,
current period presentation during these years was $1.6
2016, and 2015, respectively, as a result of tax audit
billion, $1.1 billion and $1.0 billion, respectively. The
resolutions.
carrying value of these investments, which are reported in
Tax effect of items recorded in Stockholder’s equity other assets on JPMorgan Chase Bank, N.A.’s Consolidated
The preceding table does not reflect the tax effect of certain balance sheets, was $7.7 billion and $8.5 billion at
items that are recorded each period directly in stockholder’s December 31, 2017 and 2016, respectively. The amount of
equity. The tax effect of all items recorded directly to commitments related to these investments, which are
stockholder’s equity resulted in an decrease of $785 million reported in accounts payable and other liabilities on
in 2017, an increase of $695 million in 2016, and an JPMorgan Chase Bank, N.A.’s Consolidated balance sheets,
increase of $1.2 billion in 2015. was $2.4 billion and $2.7 billion at December 31, 2017 and
2016, respectively. The results are inclusive of any impacts
Results from Non-U.S. earnings
from the TJCA.
The following table presents the U.S. and non-U.S.
components of income before income tax expense for the Deferred taxes
years ended December 31, 2017, 2016 and 2015. Deferred income tax expense/(benefit) results from
differences between assets and liabilities measured for
(in millions) 2017 2016 2015 financial reporting purposes versus income tax return
U.S. $ 22,296 $ 20,203 $ 16,691
purposes. Deferred tax assets are recognized if, in
management’s judgment, their realizability is determined to
Non-U.S.(a) 7,368 7,037 6,217
be more likely than not. If a deferred tax asset is
Income before income tax expense $ 29,664 $ 27,240 $ 22,908
determined to be unrealizable, a valuation allowance is
(a) For purposes of this table, non-U.S. income is defined as income established. The significant components of deferred tax
generated from operations located outside the U.S. assets and liabilities are reflected in the following table as

December 31, (in millions) 2017 2016 As JPMorgan Chase Bank, N.A. is presently under audit by a
Deferred tax assets number of taxing authorities, it is reasonably possible that
Allowance for loan losses $ 2,565 $ 4,385 over the next 12 months the resolution of these
Employee benefits 469 1,539
examinations may increase or decrease the gross balance of
unrecognized tax benefits by as much as approximately
Accrued expenses and other 1,622 3,399
$1.3 million. Upon settlement of an audit, the change in the
Non-U.S. operations 322 3,640
unrecognized tax benefit would result from payment or
Tax attribute carryforwards 49 40 income statement recognition.
Gross deferred tax assets 5,027 13,003
Valuation allowance (27) (14)
The following table presents a reconciliation of the
beginning and ending amount of unrecognized tax benefits
Deferred tax assets, net of valuation
allowance $ 5,000 $ 12,989 for the years ended December 31, 2017, 2016 and 2015.
Deferred tax liabilities
Depreciation and amortization $ 1,339 $ 2,058 (in millions) 2017 2016 2015
Mortgage servicing rights, net of Balance at January 1, $ 2,416 $ 2,032 $ 2,195
hedges 2,757 4,807
Increases based on tax positions
Leasing transactions 3,317 3,852 related to the current period 805 103 265
Non-U.S. operations 319 3,357 Increases based on tax positions
related to prior periods 494 452 393
Other, net 1,406 2,035
Decreases based on tax positions
Gross deferred tax liabilities 9,138 16,109 related to prior periods (183) (130) (672)
Net deferred tax (liabilities)/assets $ (4,138) $ (3,120) Decreases related to cash
settlements with taxing authorities (327) (3) (149)
JPMorgan Chase Bank has recorded deferred tax assets of Decreases related to a lapse of
$49 million at December 31, 2017, in connection applicable statute of limitations — (38) —
with U.S. federal and non-U.S. net operating loss (“NOL”) Balance at December 31, $ 3,204 $ 2,416 $ 2,032
carryforwards. At December 31, 2017, total U.S. federal
After-tax interest expense/(benefit) and penalties related to
NOL carryforwards were approximately $47 million and
income tax liabilities recognized in income tax expense were
non-U.S. NOL carryforwards were approximately $128
$79 million, $94 million and $4 million in 2017, 2016 and
million. If not utilized, the U.S. federal NOL carryforwards
2015, respectively.
will expire between 2029 and 2036. Certain non-U.S. NOL
carryforwards will expire between 2028 and 2034 whereas At December 31, 2017 and 2016, in addition to the liability
others have an unlimited carryforward period. for unrecognized tax benefits, JPMorgan Chase Bank, N.A.
had accrued $414 million and $493 million, respectively,
The valuation allowance at December 31, 2017, was due to for income tax-related interest and penalties.
certain non-U.S. NOL carryforwards.
Tax examination status
Unrecognized tax benefits JPMorgan Chase Bank, N.A. is continually under
At December 31, 2017, 2016 and 2015, JPMorgan Chase examination by the Internal Revenue Service, by taxing
Bank, N.A.’s unrecognized tax benefits, excluding related authorities throughout the world, and by many state and
interest expense and penalties, were $3.2 billion $2.4 local jurisdictions throughout the U.S. The following table
billion and $2.0 billion, respectively, of which $2.4 billion, summarizes the status of significant income tax
$1.9 billion and $1.6 billion, respectively, if recognized, examinations of JPMorgan Chase Bank, N.A. and its
would reduce the annual effective tax rate. Included in the consolidated subsidiaries as of December 31, 2017.
amount of unrecognized tax benefits are certain items that
would not affect the effective tax rate if they were Periods under
December 31, 2017 examination Status
recognized in the Consolidated statements of income. These
unrecognized items include the tax effect of certain JPMorgan Chase – U.S. 2003 – 2005 At Appellate level
temporary differences, the portion of gross state and local JPMorgan Chase – U.S. 2006 – 2010 Field examination of
unrecognized tax benefits that would be offset by the amended returns;
certain matters at
benefit from associated U.S. federal income tax deductions, Appellate level
and the portion of gross non-U.S. unrecognized tax benefits
JPMorgan Chase – U.S. 2011 – 2013 Field Examination
that would have offsets in other jurisdictions. JPMorgan
JPMorgan Chase – 2011 – 2012 Field Examination
Chase is presently under audit by a number of taxing California
authorities, most notably by the Internal Revenue Service as JPMorgan Chase – U.K. 2006 – 2015 Field examination of
summarized in the Tax examination status table below. certain select entities

Note 23 – Restrictions on cash and Note 24 – Regulatory capital

intercompany funds transfers JPMorgan Chase Bank, N.A.’s banking regulator, the OCC,
The business of JPMorgan Chase Bank, N.A. is subject to establishes capital requirements, including well-capitalized
examination and regulation by the OCC. JPMorgan Chase standards for national banks.
Bank, N.A. is a member of the U.S. Federal Reserve System, Basel III overview
and its deposits in the U.S. are insured by the FDIC, subject
Basel III capital rules for JPMorgan Chase Bank, N.A., set
to applicable limits.
forth two comprehensive approaches for calculating risk-
The Federal Reserve requires depository institutions to weighted assets (“RWA”): a standardized approach (“Basel
maintain cash reserves with a Federal Reserve Bank. The III Standardized”) and an advanced approach (“Basel III
average required amount of reserve balances deposited by Advanced”). Certain of the requirements of Basel III are
JPMorgan Chase Bank, N.A. with a Federal Reserve Bank
subject to phase-in periods that began on January 1, 2014
was approximately $24.9 billion and $19.3 billion in 2017
and continue through the end of 2018 (“transitional
and 2016, respectively.
period”).
Restrictions imposed by U.S. federal law prohibit JPMorgan
Chase & Co. and certain of its affiliates from borrowing from The three categories of risk-based capital and their
JPMorgan Chase Bank, N.A. and other banking subsidiaries predominant components under the Basel III Transitional
unless the loans are secured in specified amounts. Such rules are illustrated below:
secured loans by JPMorgan Chase Bank, N.A. to any
particular affiliate, together with certain other transactions
with such affiliate (collectively referred to as “covered
transactions”), are generally limited to 10% of JPMorgan
Chase Bank, N.A.’s total capital, as determined by the risk-
based capital guidelines; the aggregate amount of covered
transactions between JPMorgan Chase Bank, N.A. and all
affiliates is limited to 20% of JPMorgan Chase Bank, N.A.’s
total capital.
In addition to dividend restrictions set forth in statutes and
regulations, the OCC, and under certain circumstances 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 JPMorgan Chase Bank, N.A. 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.
At January 1, 2018, JPMorgan Chase Bank, N.A. could pay,
in the aggregate, approximately $15 billion in dividends to
JPMorgan Chase without the prior approval of its relevant
banking regulators. The capacity to pay dividends in 2018 Risk-weighted assets
will be supplemented by JPMorgan Chase Bank, N.A.’s Basel III establishes capital requirements for calculating
earnings during the year. credit risk RWA and market risk RWA, and in the case of
Basel III Advanced, operational risk RWA. Key differences in
In compliance with rules and regulations established by U.S.
the calculation of credit risk RWA between the Standardized
and non-U.S. regulators, as of December 31, 2017 and
and Advanced approaches are that for Basel III Advanced,
2016, cash in the amount of $8.9 billion and $6.1 billion,
credit risk RWA is based on risk-sensitive approaches which
respectively, were segregated in special bank accounts for
largely rely on the use of internal credit models and
the benefit of securities and futures brokerage customers.
parameters, whereas for Basel III Standardized, credit risk
Also, as of December 31, 2017 and 2016, JPMorgan Chase
RWA is generally based on supervisory risk-weightings
Bank, N.A. had:
which vary primarily by counterparty type and asset class.
• Receivables of $3.1 billion and $4.0 billion, respectively, Market risk RWA is calculated on a generally consistent
consisting of cash pledged with clearing organizations for basis between Basel III Standardized and Basel III Advanced.
the benefit of customers. In addition to the RWA calculated under these approaches,
In addition, as of December 31, 2017 and 2016, JPMorgan JPMorgan Chase Bank, N.A. may supplement such amounts
Chase Bank, N.A. had other restricted cash of $2.8 billion to incorporate management judgment and feedback from
and $3.0 billion, respectively, primarily representing cash its bank regulators.
reserves held at non-U.S. central banks and held for other
general purposes.

Supplementary leverage ratio (“SLR”) The following table presents the minimum ratios to which
Basel III also includes a requirement for Advanced Approach JPMorgan Chase Bank, N.A. is subject as of December 31,
banking organizations to calculate a SLR. The SLR is defined 2017.
as Tier 1 capital under Basel III divided by JPMorgan Chase
Minimum capital Well-capitalized
Bank, N.A.’s total leverage exposure. Total leverage ratios(a)(c) ratios(b)
exposure is calculated by taking JPMorgan Chase Bank, Capital ratios
N.A.’s total average on-balance sheet assets, less amounts
CET1 5.75% 6.50%
permitted to be deducted for Tier 1 capital, and adding
Tier 1 7.25 8.00
certain off-balance sheet exposures, such as undrawn
Total 9.25 10.00
commitments and derivatives potential future exposure. As
Tier 1 leverage 4.00 5.00
a well-capitalized IDI, JPMorgan Chase Bank, N.A. is
required to have a minimum SLR of at least 6%, effective Note: The table above is as defined by the regulations issued by the OCC and FDIC and
to which JPMorgan Chase Bank, N.A. and its IDI subsidiaries are subject.
January 1, 2018.
(a) Represents requirements for JPMorgan Chase Bank, N.A. and its subsidiaries. The
Risk-based capital regulatory minimums CET1 minimum capital ratio includes 1.25% resulting from the phase-in of the
2.5% capital conservation buffer that is applicable to IDI subsidiaries.
The Basel III rules include minimum capital ratio (b) Represents requirements for IDI subsidiaries pursuant to regulations issued
requirements that are subject to phase-in periods through under the FDIC Improvement Act.
(c) For the period ended December 31, 2016, the CET1, Tier 1, Total and Tier 1
the end of 2018. leverage minimum capital ratios applicable to JPMorgan Chase Bank, N.A. were
5.125%, 6.625%, 8.625% and 4.0%, respectively.
JPMorgan Chase Bank, N.A. is required to hold additional
amounts of capital to serve as a “capital conservation As of December 31, 2017, and 2016, JPMorgan Chase
buffer”. The capital conservation buffer is intended to be Bank, N.A. was well-capitalized and met all capital
used to absorb potential losses in times of financial or requirements to which it was subject.
economic stress. If not maintained, JPMorgan Chase Bank,
N.A. could be limited in the amount of capital that may be
distributed. The capital conservation buffer is subject to a
phase-in period that began January 1, 2016 and continues
through the end of 2018. When fully phased-in, JPMorgan
Chase Bank, N.A. will be required to hold a 2.5% capital
conservation buffer.
The countercyclical capital buffer takes into account the
macro financial environment in which large, internationally
active banks function. On September 8, 2016 the Federal
Reserve published the framework that will apply to the
setting of the countercyclical capital buffer. As of December
1, 2017, the Federal Reserve reaffirmed setting the U.S.
countercyclical capital buffer at 0%, and stated that it will
review the amount at least annually. The countercyclical
capital buffer can be increased if the Federal Reserve, FDIC
and OCC determine that credit growth in the economy has
become excessive and can be set at up to an additional
2.5% of RWA subject to a 12-month implementation period.
Under the risk-based capital guidelines of the OCC,
JPMorgan Chase Bank, N.A. is required to maintain
minimum ratios of CET1, Tier 1 and Total capital to RWA, as
well as a minimum leverage ratio (which is defined as Tier 1
capital divided by adjusted quarterly average assets).
Failure to meet these minimum requirements could cause
the OCC to take action.

The following table presents the regulatory capital, assets Note 25 – Off–balance sheet lending-related
and risk-based capital ratios for JPMorgan Chase Bank, N.A. financial instruments, guarantees, and other
under both Basel III Standardized Transitional and Basel III
Advanced Transitional at December 31, 2017 and 2016.
commitments
JPMorgan Chase Bank, N.A. provides lending-related
JPMorgan Chase Bank, N.A. financial instruments (e.g., commitments and guarantees)
Basel III Standardized Basel III Advanced to meet the financing needs of its clients or customers. The
Transitional Transitional contractual amount of these financial instruments
(in millions, Dec 31, Dec 31, Dec 31, Dec 31, represents the maximum possible credit risk to JPMorgan
except ratios) 2017 2016 2017 2016
Chase Bank, N.A. should the counterparty draw upon the
Regulatory
capital
commitment or JPMorgan Chase Bank, N.A. be required to
fulfill its obligation under the guarantee, and should the
CET1 capital $ 184,375 $ 179,319 $ 184,375 $ 179,319
counterparty subsequently fail to perform according to the
Tier 1 capital(a) 184,375 179,341 184,375 179,341
terms of the contract. Most of these commitments and
Total capital 195,839 191,662 189,419 184,637
guarantees are refinanced, extended, cancelled, or expire
Assets without being drawn or a default occurring. As a result, the
Risk-weighted 1,335,809 1,311,240 (e) 1,226,534 1,262,613 total contractual amount of these instruments is not, in
JPMorgan Chase Bank, N.A.’s view, representative of its
Adjusted
average(b) 2,116,031 2,088,851 2,116,031 2,088,851 expected future credit exposure or funding requirements.
Capital ratios(c) To provide for probable credit losses inherent in wholesale
CET1 13.8% 13.7% (e) 15.0% 14.2% and certain consumer lending-commitments, an allowance
Tier 1(a) 13.8 13.7 (e) 15.0 14.2 for credit losses on lending-related commitments is
Total 14.7 14.6 (e) 15.4 14.6
maintained. See Note 14 for further information regarding
the allowance for credit losses on lending-related
Tier 1 leverage(d) 8.7 8.6 8.7 8.6
commitments. The following table summarizes the
(a) Includes the deduction associated with the permissible holdings of contractual amounts and carrying values of off-balance
covered funds (as defined by the Volcker Rule). The deduction was not
material as of December 31, 2017 and 2016. sheet lending-related financial instruments, guarantees and
(b) Adjusted average assets, for purposes of calculating the Tier 1 leverage other commitments at December 31, 2017 and 2016. The
ratio, includes total quarterly average assets adjusted for unrealized amounts in the table below for credit card and home equity
gains/(losses) on AFS securities, less deductions for goodwill and other
intangible assets, defined benefit pension plan assets, and deferred tax lending-related commitments represent the total available
assets related to tax attributes, including NOLs. credit for these products. JPMorgan Chase Bank, N.A. has
(c) For each of the risk-based capital ratios, the capital adequacy of JPMorgan not experienced, and does not anticipate, that all available
Chase Bank, N.A. and its IDI subsidiaries is evaluated against the lower of
the two ratios as calculated under Basel III approaches (Standardized or lines of credit for these products will be utilized at the same
Advanced) as required by the Collins Amendment of the Dodd-Frank Act time. JPMorgan Chase Bank, N.A. can reduce or cancel
(the “Collins Floor”). credit card lines of credit by providing the borrower notice
(d) The Tier 1 leverage ratio is not a risk-based measure of capital. This ratio
is calculated by dividing Tier 1 capital by adjusted average assets. or, in some cases as permitted by law, without notice. In
(e) The prior period amounts have been revised to conform with the current addition, JPMorgan Chase Bank, N.A. typically closes credit
period presentation. card lines when the borrower is 60 days or more past due.
JPMorgan Chase Bank, N.A. may reduce or close HELOCs
when there are significant decreases in the value of the
underlying property, or when there has been a
demonstrable decline in the creditworthiness of the
borrower.

Off–balance sheet lending-related financial instruments, guarantees and other commitments
Contractual amount Carrying value(i)
2017 2016 2017 2016
Expires Expires
after after
Expires in 1 year 3 years Expires
By remaining maturity at December 31, 1 year or through through after 5
(in millions) less 3 years 5 years years Total Total
Lending-related
Consumer, excluding credit card:
Home equity $ 2,165 $ 1,370 $ 1,379 $ 15,446 $ 20,360 $ 21,713 $ 12 $ 12
Residential mortgage(a)(b) 5,723 — — 13 5,736 10,332 — —
Auto 8,007 872 292 84 9,255 8,476 2 2
Consumer & business banking (b) 11,642 926 112 522 13,202 12,940 19 12
(h)
Total consumer, excluding credit card 27,537 3,168 1,783 16,065 48,553 53,461 33 26
Credit card 12,127 — — — 12,127 11,198 — —
(h)
Total consumer(c) 39,664 3,168 1,783 16,065 60,680 64,659 33 26
Wholesale:
Other unfunded commitments to extend credit(d)(e) 60,795 118,793 138,289 12,428 330,305 324,221 840 905
Standby letters of credit and other financial
guarantees(d) 15,294 9,905 7,963 2,080 35,242 36,170 636 586
Other letters of credit(d) 3,459 114 139 — 3,712 3,570 3 2
Total wholesale 79,548 128,812 146,391 14,508 369,259 363,961 1,479 1,493
(h)
Total lending-related $ 119,212 $ 131,980 $ 148,174 $ 30,573 $ 429,939 $ 428,620 $ 1,512 $ 1,519
Other guarantees and commitments
Securities lending indemnification agreements and
guarantees(f) $ 191,302 $ — $ — $ — $ 191,302 $ 149,533 $ — $ —
Derivatives qualifying as guarantees 5,011 206 12,479 40,065 57,761 51,278 310 48
Unsettled reverse repurchase and securities
borrowing agreements 61,610 — — — 61,610 46,801 — —
Unsettled repurchase and securities lending
agreements 32,750 — — — 32,750 23,429 — —
Loan sale and securitization-related indemnifications:
Mortgage repurchase liability NA NA NA NA NA NA 111 129
Loans sold with recourse NA NA NA NA 766 2,274 8 31
Other guarantees and commitments(g) 7,045 7,260 6,415 2,166 22,886 25,962 (82) (131)
(a) Includes certain commitments to purchase loans from correspondents.
(b) Certain loan portfolios have been reclassified. The prior period amounts have been revised to conform with the current period presentation.
(c) Predominantly all consumer lending-related commitments are in the U.S.
(d) At December 31, 2017 and 2016, reflected the contractual amount net of risk participations totaling $334 million and $328 million, respectively, for other
unfunded commitments to extend credit; $10.4 billion and $11.1 billion, respectively, for standby letters of credit and other financial guarantees; and $405 million
and $265 million, respectively, for other letters of credit. In regulatory filings with the Federal Reserve these commitments are shown gross of risk participations.
(e) At both December 31, 2017 and 2016, included commitments to affiliates of $16 million.
(f) At December 31, 2017 and 2016, collateral held by JPMorgan Chase Bank, N.A. in support of securities lending indemnification agreements was $200.9 billion and
$155.9 billion, respectively. Securities lending collateral consist of primarily cash and securities issued by governments that are members G7 and U.S. government
agencies.
(g) At December 31, 2017 and 2016, included guarantees of the obligations of affiliates of $14.2 billion and $21.3 billion, which predominantly relate to obligations
arising under the affiliates’ borrowing facilities at the FHLBs; and unfunded equity investment commitments of $32 million and $15 million, respectively. In addition,
at both December 31, 2017 and 2016, included letters of credit hedged by derivative transactions and managed on a market risk basis of $4.5 billion and $4.6
billion.
(h) The prior period amounts have been revised to conform with the current period presentation.
(i) For lending-related products, the carrying value represents the allowance for lending-related commitments and the guarantee liability; for derivative-related
products, the carrying value represents the fair value.

Other unfunded commitments to extend credit As required by U.S. GAAP, JPMorgan Chase Bank, N.A.
Other unfunded commitments to extend credit generally initially records guarantees at the inception date fair value
consist of commitments for working capital and general of the obligation assumed (e.g., the amount of
corporate purposes, extensions of credit to support consideration received or the net present value of the
commercial paper facilities and bond financings in the event premium receivable). For certain types of guarantees,
that those obligations cannot be remarketed to new JPMorgan Chase Bank, N.A. records this fair value amount
investors, as well as committed liquidity facilities to clearing in other liabilities with an offsetting entry recorded in cash
organizations. JPMorgan Chase Bank, N.A. also issues (for premiums received), or other assets (for premiums
commitments under multipurpose facilities which could be receivable). Any premium receivable recorded in other
drawn upon in several forms, including the issuance of a assets is reduced as cash is received under the contract, and
standby letter of credit. the fair value of the liability recorded at inception is
amortized into income as lending and deposit-related fees
JPMorgan Chase Bank, N.A. acts as a settlement and
over the life of the guarantee contract. For indemnifications
custody bank in the U.S. tri-party repurchase transaction
provided in sales agreements, a portion of the sale
market. In its role as settlement and custody bank,
proceeds is allocated to the guarantee, which adjusts the
JPMorgan Chase Bank, N.A. is exposed to the intra-day
gain or loss that would otherwise result from the
credit risk of its cash borrower clients, usually broker-
transaction. For these indemnifications, the initial liability is
dealers. This exposure arises under secured clearance
amortized to income as JPMorgan Chase Bank, N.A.’s risk is
advance facilities that JPMorgan Chase Bank, N.A. extends
reduced (i.e., over time or when the indemnification
to its clients (i.e. cash borrowers); these facilities
expires). Any contingent liability that exists as a result of
contractually limit JPMorgan Chase Bank, N.A.’s intra-day
issuing the guarantee or indemnification is recognized when
credit risk to the facility amount and must be repaid by the
it becomes probable and reasonably estimable. The
end of the day. As of December 31, 2017 and 2016, the
contingent portion of the liability is not recognized if the
secured clearance advance facility maximum outstanding
estimated amount is less than the carrying amount of the
commitment amount was $3.5 billion and $4.4 billion,
liability recognized at inception (adjusted for any
respectively.
amortization). The recorded amounts of the liabilities
Guarantees related to guarantees and indemnifications at
U.S. GAAP requires that a guarantor recognize, at the December 31, 2017 and 2016, excluding the allowance for
inception of a guarantee, a liability in an amount equal to credit losses on lending-related commitments, are
the fair value of the obligation undertaken in issuing the discussed below.
guarantee. U.S. GAAP defines a guarantee as a contract that
Standby letters of credit and other financial guarantees
contingently requires the guarantor to pay a guaranteed
Standby letters of credit and other financial guarantees are
party based upon: (a) changes in an underlying asset,
conditional lending commitments issued by JPMorgan Chase
liability or equity security of the guaranteed party; or (b) a
Bank, N.A. to guarantee the performance of a client or
third party’s failure to perform under a specified
customer to a third party under certain arrangements, such
agreement. JPMorgan Chase Bank, N.A. considers the
as commercial paper facilities, bond financings, acquisition
following off–balance sheet lending-related arrangements
financings, trade and similar transactions. The carrying
to be guarantees under U.S. GAAP: standby letters of credit
values of standby and other letters of credit were
and other financial guarantees, securities lending
$639 million and $588 million at December 31, 2017 and
indemnifications, certain indemnification agreements
2016, respectively, which were classified in accounts
included within third-party contractual arrangements and
payable and other liabilities on the Consolidated balance
certain derivative contracts.
sheets; these carrying values included $195 million and
$147 million, respectively, for the allowance for lending-
related commitments, and $444 million and $441 million,
respectively, for the guarantee liability and corresponding
asset.

The following table summarizes the types of facilities under which standby letters of credit and other letters of credit
arrangements are outstanding by the ratings profiles of JPMorgan Chase Bank, N.A.’s clients, as of December 31, 2017 and
2016.
Standby letters of credit, other financial guarantees and other letters of credit
2017 2016
Standby letters of Standby letters of
December 31, credit and other Other letters credit and other Other letters
(in millions) financial guarantees of credit financial guarantees of credit
Investment-grade(a) $ 28,492 $ 2,646 $ 28,245 $ 2,781
Noninvestment-grade(a) 6,750 1,066 7,702 789
Total contractual amount $ 35,242 $ 3,712 $ 35,947 $ 3,570
Allowance for lending-related commitments $ 192 $ 3 $ 145 $ 2
Guarantee liability 444 — 441 —
Total carrying value $ 636 $ 3 $ 586 $ 2
Commitments with collateral $ 17,421 $ 878 $ 19,346 $ 940
(a) The ratings scale is based on JPMorgan Chase Bank, N.A.’s internal ratings, which generally correspond to ratings as defined by S&P and Moody’s.
Securities lending indemnifications realize investment returns with less volatility than an
Through JPMorgan Chase Bank, N.A.’s securities lending unprotected portfolio. These contracts are typically longer-
program, counterparties’ securities, via custodial and non- term or may have no stated maturity, but allow JPMorgan
custodial arrangements, may be lent to third parties. As Chase Bank, N.A. to elect to terminate the contract under
part of this program, JPMorgan Chase Bank, N.A. provides certain conditions.
an indemnification in the lending agreements which
The notional value of derivatives guarantees generally
protects the lender against the failure of the borrower to
return the lent securities. To minimize its liability under represents JPMorgan Chase Bank, N.A.’s maximum
these indemnification agreements, JPMorgan Chase Bank, exposure. However, exposure to certain stable value
N.A. obtains cash or other highly liquid collateral with a products is contractually limited to a substantially lower
market value exceeding 100% of the value of the securities percentage of the notional amount.
on loan from the borrower. Collateral is marked to market The fair value of derivative guarantees reflects the
daily to help assure that collateralization is adequate. probability, in JPMorgan Chase Bank, N.A.’s view, of whether
Additional collateral is called from the borrower if a JPMorgan Chase Bank, N.A. will be required to perform
shortfall exists, or collateral may be released to the under the contract. JPMorgan Chase Bank, N.A. reduces
borrower in the event of overcollateralization. If a borrower
exposures to these contracts by entering into offsetting
defaults, JPMorgan Chase Bank, N.A. would use the
transactions, or by entering into contracts that hedge the
collateral held to purchase replacement securities in the
market risk related to the derivative guarantees.
market or to credit the lending client or counterparty with
the cash equivalent thereof. The following table summarizes the derivatives qualifying as
Derivatives qualifying as guarantees guarantees as of December 31, 2017 and 2016.
JPMorgan Chase Bank, N.A. transacts certain derivative December 31, (in millions) 2017 2016
contracts that have the characteristics of a guarantee under
Notional amounts
U.S. GAAP. These contracts include written put options that
Derivative guarantees 57,761 51,278
require JPMorgan Chase Bank, N.A. to purchase assets upon
Stable value contracts with
exercise by the option holder at a specified price by a contractually limited exposure 29,104 28,665
specified date in the future. JPMorgan Chase Bank, N.A.may Maximum exposure of stable
enter into written put option contracts in order to meet value contracts with
client needs, or for other trading purposes. The terms of contractually limited exposure 3,053 3,012
written put options are typically five years or less. Fair value
Derivatives deemed to be guarantees also includes stable Derivative payables 310 64
value contracts, commonly referred to as “stable value Derivative receivables — 16
products”, that require JPMorgan Chase Bank, N.A. to make
In addition to derivative contracts that meet the
a payment of the difference between the market value and
characteristics of a guarantee, JPMorgan Chase Bank, N.A.
the book value of a counterparty’s reference portfolio of
is both a purchaser and seller of credit protection in the
assets in the event that market value is less than book value
credit derivatives market. For a further discussion of credit
and certain other conditions have been met. Stable value
derivatives, see 6.
products are transacted in order to allow investors to

Unsettled reverse repurchase and securities borrowing Loans sold with recourse
agreements, and unsettled repurchase and securities JPMorgan Chase Bank, N.A. provides servicing for
lending agreements mortgages and certain commercial lending products on
In the normal course of business, JPMorgan Chase Bank, both a recourse and nonrecourse basis. In nonrecourse
N.A. enters into reverse repurchase agreements and servicing, the principal credit risk to JPMorgan Chase Bank,
securities borrowing agreements, which are secured N.A. is the cost of temporary servicing advances of funds
financing agreements. Such agreements settle at a future (i.e., normal servicing advances). In recourse servicing, the
date. At settlement, these commitments result in JPMorgan servicer agrees to share credit risk with the owner of the
Chase Bank, N.A. advancing cash to and receiving securities mortgage loans, such as Fannie Mae or Freddie Mac or a
collateral from the counterparty. JPMorgan Chase Bank, private investor, insurer or guarantor. Losses on recourse
N.A. also enters into repurchase agreements and securities servicing predominantly occur when foreclosure sales
lending agreements. At settlement, these commitments
proceeds of the property underlying a defaulted loan are
result in JPMorgan Chase Bank N.A. receiving cash from and
less than the sum of the outstanding principal balance, plus
providing securities collateral to the counterparty. These
accrued interest on the loan and the cost of holding and
agreements generally do not meet the definition of a
derivative, and therefore, are not recorded on the disposing of the underlying property. JPMorgan Chase Bank,
Consolidated balance sheets until settlement date. These N.A.’s securitizations are predominantly nonrecourse,
agreements predominantly consist of agreements with thereby effectively transferring the risk of future credit
regular-way settlement periods. For a further discussion of losses to the purchaser of the mortgage-backed securities
securities purchased under resale agreements and issued by the trust. At December 31, 2017 and 2016, the
securities borrowed, and securities sold under repurchase unpaid principal balance of loans sold with recourse totaled
agreements and securities loaned, see Note 12. $766 million and $2.3 billion, respectively. The carrying
value of the related liability that JPMorgan Chase Bank, N.A.
Loan sales- and securitization-related indemnifications has recorded, which is representative of JPMorgan Chase
Mortgage repurchase liability Bank, N.A.’s view of the likelihood it will have to perform
In connection with JPMorgan Chase Bank, N.A.’s mortgage under its recourse obligations, was $8 million and $31
loan sale and securitization activities with GSEs, as million at December 31, 2017 and 2016, respectively.
described in Note 15, JPMorgan Chase Bank, N.A. has made
representations and warranties that the loans sold meet Other off-balance sheet arrangements
certain requirements that may require JPMorgan Chase Indemnification agreements – general
Bank, N.A. to repurchase mortgage loans and/or indemnify In connection with issuing securities to investors outside the
the loan purchaser. Further, although JPMorgan Chase U.S., JPMorgan Chase Bank, N.A. may agree to pay
Bank, N.A.’s securitizations are predominantly nonrecourse, additional amounts to the holders of the securities in the
JPMorgan Chase Bank, N.A. does provide recourse servicing event that, due to a change in tax law, certain types of
in certain limited cases where it agrees to share credit risk withholding taxes are imposed on payments on the
with the owner of the mortgage loans. To the extent that securities. The terms of the securities may also give
repurchase demands that are received relate to loans that
JPMorgan Chase Bank, N.A. the right to redeem the
JPMorgan Chase Bank, N.A. purchased from third parties
securities if such additional amounts are payable. The
that remain viable, JPMorgan Chase Bank, N.A. typically will
enactment of the TCJA will not cause JPMorgan Chase Bank,
have the right to seek a recovery of related repurchase
losses from the third party. Generally, the maximum amount N.A. to become obligated to pay any such additional
of future payments JPMorgan Chase Bank, N.A. would be amounts. JPMorgan Chase Bank, N.A. may also enter into
required to make for breaches of these representations and indemnification clauses in connection with the licensing of
warranties would be equal to the unpaid principal balance software to clients (“software licensees”) or when it sells a
of such loans that are deemed to have defects that were business or assets to a third party (“third-party
sold to purchasers (including securitization-related SPEs) purchasers”), pursuant to which it indemnifies software
plus, in certain circumstances, accrued interest on such licensees for claims of liability or damages that may occur
loans and certain expenses. subsequent to the licensing of the software, or third-party
purchasers for losses they may incur due to actions taken
Private label securitizations by JPMorgan Chase Bank, N.A. prior to the sale of the
The liability related to repurchase demands associated with business or assets. It is difficult to estimate JPMorgan Chase
private label securitizations is separately evaluated by Bank, N.A.’s maximum exposure under these
JPMorgan Chase Bank, N.A. in establishing its litigation indemnification arrangements, since this would require an
reserves. assessment of future changes in tax law and future claims
For additional information regarding litigation, see Note 27. that may be made against JPMorgan Chase Bank, N.A. that
have not yet occurred. However, based on historical
experience, management expects the risk of loss to be
remote.

Card charge-backs As a clearing member, JPMorgan Chase Bank, N.A. is
Under the rules of Visa USA, Inc., and MasterCard exposed to the risk of nonperformance by its clients, but is
International, JPMorgan Chase Bank, N.A., is primarily liable not liable to clients for the performance of the CCPs. Where
for the amount of each processed card sales transaction possible, JPMorgan Chase Bank, N.A. seeks to mitigate its
that is the subject of a dispute between a cardmember and risk to the client through the collection of appropriate
a merchant. If a dispute is resolved in the cardmember’s amounts of margin at inception and throughout the life of
favor, the merchant services business will (through the the transactions. JPMorgan Chase Bank, N.A. can also cease
cardmember’s issuing bank) credit or refund the amount to providing clearing services if clients do not adhere to their
the cardmember and will charge back the transaction to the obligations under the clearing agreement. In the event of
merchant. If the merchant services business is unable to nonperformance by a client, JPMorgan Chase Bank, N.A.
collect the amount from the merchant, the merchant would close out the client’s positions and access available
services business will bear the loss for the amount credited margin. The CCP would utilize any margin it holds to make
or refunded to the cardmember. The merchant services itself whole, with any remaining shortfalls required to be
business mitigates this risk by withholding future paid by JPMorgan Chase Bank, N.A. as a clearing member.
settlements, retaining cash reserve accounts or by obtaining
JPMorgan Chase Bank, N.A. reflects its exposure to
other security. However, in the unlikely event that: (1) a
nonperformance risk of the client through the recognition
merchant ceases operations and is unable to deliver
of margin receivables from clients and margin payables to
products, services or a refund; (2) The merchant services
CCPs; the clients’ underlying securities or derivative
business does not have sufficient collateral from the
contracts are not reflected in JPMorgan Chase Bank, N.A.’s
merchant to provide cardmember refunds; and (3) The
Consolidated Financial Statements.
merchant services business does not have sufficient
financial resources to provide cardmember refunds, It is difficult to estimate JPMorgan Chase Bank, N.A.’s
JPMorgan Chase Bank, N.A., would recognize the loss. maximum possible exposure through its role as a clearing
member, as this would require an assessment of
The merchant services business incurred aggregate losses
transactions that clients may execute in the future.
of $28 million, $85 million, and $12 million on $1,191.7
However, based upon historical experience, and the credit
billion, $1,063.4 billion, and $949.3 billion of aggregate
risk mitigants available to JPMorgan Chase Bank, N.A.,
volume processed for the years ended December 31, 2017,
management believes it is unlikely that JPMorgan Chase
2016 and 2015, respectively. Incurred losses from
Bank, N.A. will have to make any material payments under
merchant charge-backs are charged to other expense, with
these arrangements and the risk of loss is expected to be
the offset recorded in a valuation allowance against accrued
remote.
interest and accounts receivable on the Consolidated
balance sheets. The carrying value of the valuation For information on the derivatives that JPMorgan Chase
allowance was $7 million and $45 million at December 31, Bank, N.A. executes for its own account and records in its
2017 and 2016, respectively, which JPMorgan Chase Bank, Consolidated Financial Statements, see Note 6.
N.A. believes, based on historical experience and the
Exchange & Clearing House Memberships
collateral held by the merchant services business of $141
JPMorgan Chase Bank, N.A. is a member of several
million and $125 million at December 31, 2017 and 2016,
securities and derivative exchanges and clearing houses,
respectively, is representative of the payment or
both in the U.S. and other countries, and it provides clearing
performance risk to JPMorgan Chase Bank, N.A. related to
services. Membership in some of these organizations
charge-backs.
requires JPMorgan Chase Bank, N.A. to pay a pro rata share
Clearing Services – Client Credit Risk of the losses incurred by the organization as a result of the
JPMorgan Chase Bank, N.A. provides clearing services for default of another member. Such obligations vary with
clients by entering into securities purchases and sales and different organizations. These obligations may be limited to
derivative transactions with CCPs, including ETDs such as members who dealt with the defaulting member or to the
futures and options, as well as OTC-cleared derivative amount (or a multiple of the amount) of JPMorgan Chase
contracts. As a clearing member, JPMorgan Chase Bank, Bank, N.A.’s contribution to the guarantee fund maintained
N.A. stands behind the performance of its clients, collects by a clearing house or exchange as part of the resources
cash and securities collateral (margin) as well as any available to cover any losses in the event of a member
settlement amounts due from or to clients, and remits them default. Alternatively, these obligations may include a pro
to the relevant CCP or client in whole or part. There are two rata share of the residual losses after applying the
types of margin: variation margin is posted on a daily basis guarantee fund. Additionally, certain clearing houses
based on the value of clients’ derivative contracts and initial require JPMorgan Chase Bank, N.A. as a member to pay a
margin is posted at inception of a derivative contract, pro rata share of losses that may result from the clearing
generally on the basis of the potential changes in the house’s investment of guarantee fund contributions and
variation margin requirement for the contract. initial margin, unrelated to and independent of the default
of another member. Generally a payment would only be
required should such losses exceed the resources of the The following table presents required future minimum
clearing house or exchange that are contractually required rental payments under operating leases with noncancelable
to absorb the losses in the first instance. It is difficult to lease terms that expire after December 31, 2017.
estimate JPMorgan Chase Bank, N.A.’s maximum possible
Year ended December 31, (in millions)
exposure under these membership agreements, since this
2018 $ 1,341
would require an assessment of future claims that may be
2019 1,341
made against JPMorgan Chase Bank, N.A. that have not yet
2020 1,228
occurred. However, based on historical experience,
2021 991
management expects the risk of loss to be remote.
2022 785
Guarantees of subsidiaries and affiliates After 2022 3,638
In the normal course of business, JPMorgan Chase Bank, Total minimum payments required 9,324
N.A. may provide counterparties with guarantees of certain Less: Sublease rentals under noncancelable subleases (853)
of the trading and other obligations of its subsidiaries and Net minimum payment required $ 8,471
affiliates on a contract-by-contract basis, as negotiated with
JPMorgan Chase Bank, N.A.’s counterparties. The Total rental expense was as follows.
obligations of the subsidiaries are included on JPMorgan
Chase Bank, N.A.’s Consolidated balance sheets or are (in millions) 2017 2016 2015
reflected as off-balance sheet commitments; therefore, Gross rental expense $ 1,667 $ 1,666 $ 1,672
JPMorgan Chase Bank, N.A. has not recognized a separate Sublease rental income (208) (198) (198)
liability for these guarantees. As at December 31, 2017 and
Net rental expense $ 1,459 $ 1,468 $ 1,474
2016, JPMorgan Chase Bank, N.A. had provided guarantees
of $14.2 billion and $21.3 billion, respectively, of the Pledged assets
obligations of affiliates. JPMorgan Chase Bank, N.A. believes JPMorgan Chase Bank, N.A. may pledge financial assets that
that the occurrence of any event that would trigger it owns to maintain potential borrowing capacity with
payments by JPMorgan Chase Bank, N.A. under these central banks and for other purposes, including to secure
guarantees is remote. borrowings and public deposits, collateralize repurchase
and other securities financing agreements, and cover
Note 26 – Commitments, pledged assets and
customer short sales. Certain of these pledged assets may
collateral be sold or repledged or otherwise used by the secured
Lease commitments parties and are identified as financial instruments owned
At December 31, 2017, JPMorgan Chase Bank, N.A. and its (pledged to various parties) on the Consolidated balance
subsidiaries were obligated under a number of sheets.
noncancelable operating leases for premises and equipment
used primarily for banking purposes. Certain leases contain The following table presents JPMorgan Chase Bank, N.A.’s
renewal options or escalation clauses providing for pledged assets.
increased rental payments based on maintenance, utility December 31, (in billions) 2017 2016
and tax increases, or they require JPMorgan Chase Bank, Assets that may be sold or repledged
N.A. to perform restoration work on leased premises. No or otherwise used by secured parties $ 74.6 $ 71.8
lease agreement imposes restrictions on JPMorgan Chase Assets that may not be sold or
Bank, N.A.’s ability to pay dividends, engage in debt or repledged or otherwise used by
secured parties 39.0 37.8
equity financing transactions or enter into further lease
Assets pledged at Federal Reserve
agreements. banks and FHLBs 434.3 388.7
Total assets pledged $ 547.9 $ 498.3
Total assets pledged do not include assets of consolidated

VIEs; these assets are used to settle the liabilities of those
entities. See Note 15 for additional information on assets
and liabilities of consolidated VIEs. For additional
information on JPMorgan Chase Bank, N.A.’s securities
financing activities, see Note 12, For additional information
on the JPMorgan Chase Bank, N.A.’s long-term debt, see
Note 19.

The significant components of JPMorgan Chase Bank, N.A.’s an estimate can be made, as of that date. JPMorgan Chase’s
pledged assets were as follows. estimate of the aggregate range of reasonably possible
losses involves significant judgment, given the number,
December 31, (in billions) 2017 2016
variety and varying stages of the proceedings (including the
Securities $ 91.4 $ 104.1 fact that many are in preliminary stages), the existence in
Loans 378.1 321.4 many such proceedings of multiple defendants (including
Trading assets and other 78.4 72.8 JPMorgan Chase and JPMorgan Chase Bank, N.A.) whose
Total assets pledged $ 547.9 $ 498.3 share of liability has yet to be determined, the numerous
yet-unresolved issues in many of the proceedings (including
Collateral issues regarding class certification and the scope of many of
JPMorgan Chase Bank, N.A. accepts financial assets as the claims) and the attendant uncertainty of the various
collateral that it is permitted to sell or repledge, deliver or potential outcomes of such proceedings, including where
otherwise use. This collateral is generally obtained under JPMorgan Chase has made assumptions concerning future
resale agreements, securities borrowing agreements, rulings by the court or other adjudicator, or about the
customer margin loans and derivative agreements behavior or incentives of adverse parties or regulatory
Collateral is generally used under repurchase agreements, authorities, and those assumptions prove to be incorrect. In
securities lending agreements or to cover customer short addition, the outcome of a particular proceeding may be a
sales and to collateralize deposits and derivative result which JPMorgan Chase did not take into account in its
agreements. estimate because JPMorgan Chase had deemed the
The following table presents the fair value of collateral likelihood of that outcome to be remote. Accordingly,
accepted. JPMorgan Chase’s estimate of the aggregate range of
reasonably possible losses will change from time to time,
December 31, (in billions) 2017 2016 and actual losses may vary significantly.
Collateral permitted to be sold or repledged,
delivered, or otherwise used $ 590.8 $ 491.0 (a) Set forth below are descriptions of JPMorgan Chase’s
Collateral sold, repledged, delivered or
material legal proceedings in which JPMorgan Chase and its
otherwise used 482.9 396.6 subsidiaries (which in certain instances include JPMorgan
(a) The prior period amount has been revised to conform with the current
Chase Bank, N.A.) are involved or have been named as
period presentation. parties.
Foreign Exchange Investigations and Litigation. JPMorgan
Note 27 – Litigation Chase previously reported settlements with certain
Contingencies government authorities relating to its foreign exchange
As of December 31, 2017, JPMorgan Chase and its (“FX”) sales and trading activities and controls related to
subsidiaries, including but not limited to JPMorgan Chase those activities. FX-related investigations and inquiries by
Bank, N.A., are defendants or putative defendants in government authorities, including competition authorities,
numerous legal proceedings, including private, civil are ongoing, and JPMorgan Chase is cooperating with and
litigations and regulatory/government investigations. The working to resolve those matters. In May 2015, JPMorgan
litigations range from individual actions involving a single Chase pleaded guilty to a single violation of federal antitrust
plaintiff to class action lawsuits with potentially millions of law. In January 2017, JPMorgan Chase was sentenced, with
class members. Investigations involve both formal and judgment entered thereafter. The Department of Labor has
informal proceedings, by both governmental agencies and granted JPMorgan Chase a five-year exemption of
self-regulatory organizations. These legal proceedings are disqualification, effective upon expiration of a temporary
at varying stages of adjudication, arbitration or one-year exemption previously granted, that allows
investigation, and involve each of JPMorgan Chase’s lines of JPMorgan Chase and its affiliates to continue to rely on the
business and geographies and a wide variety of claims Qualified Professional Asset Manager exemption under the
(including common law tort and contract claims and Employee Retirement Income Security Act (“ERISA”).
statutory antitrust, securities and consumer protection JPMorgan Chase will need to reapply in due course for a
claims), some of which present novel legal theories. further exemption to cover the remainder of the ten-year
JPMorgan Chase believes the estimate of the aggregate disqualification period. Separately, in February 2017 the
range of reasonably possible losses, in excess of reserves South Africa Competition Commission referred its FX
established, for JPMorgan Chase’s legal proceedings is from investigation of JPMorgan Chase and other banks to the
$0 to approximately $1.7 billion at December 31, 2017. South Africa Competition Tribunal, which is conducting civil
This estimated aggregate range of reasonably possible proceedings concerning that matter.
losses was based upon currently available information for JPMorgan Chase is also one of a number of foreign
those proceedings in which JPMorgan Chase believes that exchange dealers defending a class action filed in the
an estimate of reasonably possible loss can be made. For United States District Court for the Southern District of New
certain matters, JPMorgan Chase does not believe that such York by U.S.-based plaintiffs, principally alleging violations
of federal antitrust laws based on an alleged conspiracy to concerning, among other things, the characterization and
manipulate foreign exchange rates (the “U.S. class action”). value of the remaining additional collateral, in light of the
In January 2015, JPMorgan Chase entered into a settlement Bankruptcy Court’s ruling regarding the representative
agreement in the U.S. class action. Following this assets, as well as other issues, including the cross-claims.
settlement, a number of additional putative class actions Hopper Estate Litigation. JPMorgan Chase is a defendant in
were filed seeking damages for persons who transacted FX an action in connection with its role as an independent
futures and options on futures (the “exchanged-based administrator of an estate. The plaintiffs sought in excess of
actions”), consumers who purchased foreign currencies at $7 million in compensatory damages, primarily relating to
allegedly inflated rates (the “consumer action”), attorneys’ fees incurred by the plaintiffs. After a trial in
participants or beneficiaries of qualified ERISA plans (the probate court in Dallas, Texas that ended in September
“ERISA actions”), and purported indirect purchasers of FX 2017, the jury returned a verdict against JPMorgan Chase,
instruments (the “indirect purchaser action”). Since then, awarding plaintiffs their full compensatory damages and
JPMorgan Chase has entered into a revised settlement multiple billions in punitive damages. Notwithstanding the
agreement to resolve the consolidated U.S. class action, jury verdict, in light of legal limitations on the availability of
including the exchange-based actions, and that agreement damages, certain of the plaintiffs moved for entry of
has been preliminarily approved by the Court. The District judgment in the total amount of approximately $71 million,
Court has dismissed one of the ERISA actions, and the including punitive damages, while another plaintiff has not
plaintiffs have filed an appeal. The consumer action, a yet moved for judgment. The court has not yet entered a
second ERISA action and the indirect purchaser action judgment in this matter. The parties are engaged in post-
remain pending in the District Court. trial briefing.
General Motors Litigation. JPMorgan Chase Bank, N.A. Interchange Litigation. A group of merchants and retail
participated in, and was the Administrative Agent on behalf associations filed a series of class action complaints alleging
of a syndicate of lenders on, a $1.5 billion syndicated Term that Visa and MasterCard, as well as certain banks,
Loan facility (“Term Loan”) for General Motors Corporation conspired to set the price of credit and debit card
(“GM”). In July 2009, in connection with the GM bankruptcy interchange fees and enacted respective rules in violation of
proceedings, the Official Committee of Unsecured Creditors antitrust laws. The parties settled the cases for a cash
of Motors Liquidation Company (“Creditors Committee”) payment of $6.1 billion to the class plaintiffs (of which
filed a lawsuit against JPMorgan Chase Bank, N.A., in its JPMorgan Chase’s share is approximately 20%) and an
individual capacity and as Administrative Agent for other amount equal to ten basis points of credit card interchange
lenders on the Term Loan, seeking to hold the underlying for a period of 8 months to be measured from a date within
lien invalid based on the filing of a UCC-3 termination 60 days of the end of the opt-out period. The settlement
statement relating to the Term Loan. In January 2015, also provided for modifications to each credit card
following several court proceedings, the United States Court network’s rules, including those that prohibit surcharging
of Appeals for the Second Circuit reversed the Bankruptcy credit card transactions. In December 2013, the District
Court’s dismissal of the Creditors Committee’s claim and Court granted final approval of the settlement.
remanded the case to the Bankruptcy Court with
instructions to enter partial summary judgment for the A number of merchants appealed to the United States Court
Creditors Committee as to the termination statement. The of Appeals for the Second Circuit, which, in June 2016,
proceedings in the Bankruptcy Court continue with respect vacated the District Court’s certification of the class action
to, among other things, additional defenses asserted by and reversed the approval of the class settlement. In March
JPMorgan Chase Bank, N.A. and the value of additional 2017, the U.S. Supreme Court declined petitions seeking
collateral on the Term Loan that was unaffected by the filing review of the decision of the Court of Appeals. The case has
of the termination statement at issue. In connection with been remanded to the District Court for further proceedings
that additional collateral, a trial in the Bankruptcy Court consistent with the appellate decision.
regarding the value of certain representative assets In addition, certain merchants have filed individual actions
concluded in May 2017, and a ruling was issued in raising similar allegations against Visa and MasterCard, as
September 2017. The Bankruptcy Court found that 33 of well as against JPMorgan Chase and other banks, and those
the 40 representative assets are fixtures and that these actions are proceeding.
fixtures generally should be valued on a “going concern” LIBOR and Other Benchmark Rate Investigations and
basis. The Creditors Committee is seeking leave to appeal Litigation. JPMorgan Chase has received subpoenas and
the Bankruptcy Court’s ruling that the fixtures should be requests for documents and, in some cases, interviews,
valued on a “going concern” basis rather than on a from federal and state agencies and entities, including the
liquidation basis. In addition, certain Term Loan lenders U.S. Commodity Futures Trading Commission (“CFTC”) and
filed cross-claims in the Bankruptcy Court against JPMorgan various state attorneys general, as well as the European
Chase Bank, N.A. seeking indemnification and asserting Commission (“EC”), the Swiss Competition Commission
various claims. The parties are engaged in mediation (“ComCo”) and other regulatory authorities and banking

associations around the world relating primarily to the have standing to assert such claims, and permitted antitrust
process by which interest rates were submitted to the claims, claims under the Commodity Exchange Act and
British Bankers Association (“BBA”) in connection with the common law claims to proceed. The plaintiffs whose
setting of the BBA’s London Interbank Offered Rate antitrust claims were dismissed for lack of standing have
(“LIBOR”) for various currencies, principally in 2007 and filed an appeal. In May 2017, plaintiffs in three putative
2008. Some of the inquiries also relate to similar processes class actions moved in the District Court for class
by which information on rates was submitted to the certification, and JPMorgan Chase and other defendants
European Banking Federation (“EBF”) in connection with have opposed that motion. In January 2018, the District
the setting of the EBF’s Euro Interbank Offered Rates Court heard oral arguments on the class certification
(“EURIBOR”) and to the Japanese Bankers’ Association for motions and reserved decision.
the setting of Tokyo Interbank Offered Rates (“TIBOR”) In an action related to the Singapore Interbank Offered Rate
during similar time periods, as well as processes for the and the Singapore Swap Offer Rate, the District Court
setting of U.S. dollar ISDAFIX rates and other reference dismissed without prejudice all claims except a single
rates in various parts of the world during similar time antitrust claim, and dismissed without prejudice all
periods, including through 2012. JPMorgan Chase continues defendants except JPMorgan Chase, Bank of America and
to cooperate with these ongoing investigations, and is Citibank. The plaintiffs filed an amended complaint in
currently engaged in discussions with the CFTC about September 2017, which JPMorgan Chase and other
resolving its U.S. dollar ISDAFIX-related investigation with defendants have moved to dismiss.
respect to JPMorgan Chase. There is no assurance that such
discussions will result in a settlement. As previously JPMorgan Chase is one of the defendants in a number of
reported, JPMorgan Chase has resolved EC inquiries relating putative class actions alleging that defendant banks and
to Yen LIBOR and Swiss Franc LIBOR. In December 2016, ICAP conspired to manipulate the U.S. dollar ISDAFIX rates.
JPMorgan Chase resolved ComCo inquiries relating to these In April 2016, JPMorgan Chase settled this litigation, along
same rates. ComCo’s investigation relating to EURIBOR, to with certain other banks. Those settlements have been
which JPMorgan Chase and other banks are subject, preliminarily approved by the Court.
continues. In December 2016, the EC issued a decision Mortgage-Backed Securities and Repurchase Litigation and
against JPMorgan Chase and other banks finding an Related Regulatory Investigations. JPMorgan Chase and
infringement of European antitrust rules relating to affiliates (together, “JPMC”), Bear Stearns and affiliates
EURIBOR. JPMorgan Chase has filed an appeal with the (together, “Bear Stearns”) and certain Washington Mutual
European General Court. affiliates (together, “Washington Mutual”) have been named
In addition, JPMorgan Chase has been named as a as defendants in a number of cases in their various roles in
defendant along with other banks in a series of individual offerings of MBS. The remaining civil cases include one
and putative class actions filed in various United States investor action and actions for repurchase of mortgage
District Courts. These actions have been filed, or loans. JPMorgan Chase and certain of its current and former
consolidated for pre-trial purposes, in the United States officers and Board members have also been sued in a
District Court for the Southern District of New York. In these shareholder derivative action relating to JPMorgan Chase’s
actions, plaintiffs make varying allegations that in various MBS activities, which remains pending.
periods, starting in 2000 or later, defendants either Issuer Litigation - Individual Purchaser Actions. With the
individually or collectively manipulated various benchmark exception of one remaining action, JPMorgan Chase has
rates by submitting rates that were artificially low or high. resolved all of the individual actions brought against JPMC,
Plaintiffs allege that they transacted in loans, derivatives or Bear Stearns and Washington Mutual as MBS issuers (and,
other financial instruments whose values are affected by in some cases, also as underwriters of their own MBS
changes in these rates and assert a variety of claims offerings).
including antitrust claims seeking treble damages. These Repurchase Litigation. JPMorgan Chase is defending a few
matters are in various stages of litigation. actions brought by trustees and/or securities administrators
JPMorgan Chase has agreed to settle a putative class action of various MBS trusts on behalf of purchasers of securities
related to Swiss franc LIBOR, and that settlement remains issued by those trusts. These cases generally allege
subject to final court approval. breaches of various representations and warranties
In an action related to EURIBOR, the District Court regarding securitized loans and seek repurchase of those
dismissed all claims except a single antitrust claim and two loans or equivalent monetary relief, as well as
common law claims, and dismissed all defendants except indemnification of attorneys’ fees and costs and other
JPMorgan Chase and Citibank. remedies. The trustees and/or securities administrators
have accepted settlement offers on these MBS transactions,
In actions related to U.S. dollar LIBOR, the District Court and these settlements are subject to court approval.
dismissed certain claims, including antitrust claims brought
by some plaintiffs whom the District Court found did not

In addition, JPMorgan Chase and a group of 21 institutional to act as the counterparty for certain swaps executed by the
MBS investors made a binding offer to the trustees of MBS County. The County filed for bankruptcy in November 2011.
issued by JPMC and Bear Stearns providing for the payment In June 2013, the County filed a Chapter 9 Plan of
of $4.5 billion and the implementation of certain servicing Adjustment, as amended (the “Plan of Adjustment”), which
changes by JPMC, to resolve all repurchase and servicing provided that all the above-described actions against
claims that have been asserted or could have been asserted JPMorgan Chase would be released and dismissed with
with respect to 330 MBS trusts created between 2005 and prejudice. In November 2013, the Bankruptcy Court
2008. The offer does not resolve claims relating to confirmed the Plan of Adjustment, and in December 2013,
Washington Mutual MBS. The trustees (or separate and certain sewer rate payers filed an appeal challenging the
successor trustees) for this group of 330 trusts have confirmation of the Plan of Adjustment. All conditions to the
accepted the settlement for 319 trusts in whole or in part Plan of Adjustment’s effectiveness, including the dismissal
and excluded from the settlement 16 trusts in whole or in of the actions against JPMorgan Chase, were satisfied or
part. The trustees’ acceptance received final approval from waived and the transactions contemplated by the Plan of
the court and JPMorgan Chase paid the settlement in Adjustment occurred in December 2013. Accordingly, all
December 2017. the above-described actions against JPMorgan Chase have
Additional actions have been filed against third-party been dismissed pursuant to the terms of the Plan of
trustees that relate to loan repurchase and servicing claims Adjustment. The appeal of the Bankruptcy Court’s order
involving trusts sponsored by JPMC, Bear Stearns and confirming the Plan of Adjustment remains pending.
Washington Mutual. Petters Bankruptcy and Related Matters. JPMorgan Chase
In actions against JPMorgan Chase involving offerings of and certain of its affiliates, including One Equity Partners
MBS issued by JPMorgan Chase, JPMorgan Chase has (“OEP”), were named as defendants in several actions filed
contractual rights to indemnification from sellers of in connection with the receivership and bankruptcy
mortgage loans that were securitized in such proceedings pertaining to Thomas J. Petters and certain
offerings. However, certain of those indemnity rights may affiliated entities (collectively, “Petters”) and the Polaroid
prove effectively unenforceable in various situations, such Corporation. The principal actions against JPMorgan Chase
as where the loan sellers are now defunct. and its affiliates were brought by a court-appointed receiver
for Petters and the trustees in bankruptcy proceedings for
JPMorgan Chase has entered into agreements with a three Petters entities. These actions generally sought to
number of MBS trustees or entities that purchased MBS that avoid certain putative transfers in connection with (i) the
toll applicable statute of limitations periods with respect to 2005 acquisition by Petters of Polaroid, which at the time
their claims, and has settled, and in the future may settle, was majority-owned by OEP; (ii) two credit facilities that
tolled claims. There is no assurance that JPMorgan Chase JPMorgan Chase and other financial institutions entered
will not be named as a defendant in additional MBS-related into with Polaroid; and (iii) a credit line and investment
litigation. accounts held by Petters. In January 2017, the Court
Derivative Action. A shareholder derivative action against substantially denied the defendants’ motion to dismiss an
JPMorgan Chase, as nominal defendant, and certain of its amended complaint filed by the plaintiffs. In October 2017,
current and former officers and members of its Board of JPMorgan Chase and its affiliates reached an agreement in
Directors relating to JPMorgan Chase’s MBS activities was principle to settle the litigation brought by the Petters
filed in California federal court in 2013. In June 2017, the bankruptcy trustees, or their successors, and the receiver
court granted defendants’ motion to dismiss the cause of for Thomas J. Petters. The settlement is subject to final
action that alleged material misrepresentations and documentation and Court approval.
omissions in JPMorgan Chase’s proxy statement, found that Wendel. Since 2012, the French criminal authorities have
the court did not have personal jurisdiction over the been investigating a series of transactions entered into by
individual defendants with respect to the remaining causes senior managers of Wendel Investissement (“Wendel”)
of action, and transferred that remaining portion of the during the period from 2004 through 2007 to restructure
case to the United States District Court for the Southern their shareholdings in Wendel. JPMorgan Chase Bank, N.A.,
District of New York without ruling on the merits. The Paris branch provided financing for the transactions to a
motion by the defendants to dismiss is pending. number of managers of Wendel in 2007. JPMorgan Chase
Municipal Derivatives Litigation. Several civil actions were has cooperated with the investigation. The investigating
commenced in New York and Alabama courts against judges issued an ordonnance de renvoi in November 2016,
JPMorgan Chase relating to certain Jefferson County, referring JPMorgan Chase Bank, N.A. to the French tribunal
Alabama (the “County”) warrant underwritings and swap correctionnel for alleged complicity in tax fraud. No date for
transactions. The claims in the civil actions generally trial has been set by the court. JPMorgan Chase has been
alleged that JPMorgan Chase made payments to certain successful in legal challenges made to the Court of
third parties in exchange for being chosen to underwrite Cassation, France’s highest court, with respect to the
more than $3.0 billion in warrants issued by the County and criminal proceedings. In January 2018, the Paris Court of

Appeal issued a decision cancelling the mise en examen of currently pending against it should not have a material
JPMorgan Chase Bank, N.A. JPMorgan Chase is requesting adverse effect on JPMorgan Chase Bank, N.A.’s consolidated
clarification from the Court of Cassation concerning the financial condition. JPMorgan Chase Bank, N.A. notes,
Court of Appeal’s decision before seeking direction on next however, that in light of the uncertainties involved in such
steps in the criminal proceedings. In addition, a number of proceedings, there is no assurance that the ultimate
the managers have commenced civil proceedings against resolution of these matters will not significantly exceed the
JPMorgan Chase Bank, N.A. The claims are separate, involve reserves it has currently accrued or that a matter will not
different allegations and are at various stages of have material reputational consequences. As a result, the
proceedings. outcome of a particular matter may be material to
* * * JPMorgan Chase Bank N.A.’s operating results for a
particular period, depending on, among other factors, the
In addition to the various legal proceedings discussed size of the loss or liability imposed and the level of
above, JPMorgan Chase and its subsidiaries, including in JPMorgan Chase Bank, N.A.’s income for that period.
certain cases, JPMorgan Chase Bank, N.A., are named as
defendants or are otherwise involved in a substantial
number of other legal proceedings. JPMorgan Chase and
JPMorgan Chase Bank, N.A., each believe 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.
JPMorgan Chase Bank, N.A. has established reserves for
several hundred of its currently outstanding legal
proceedings. In accordance with the provisions of U.S. GAAP
for contingencies, JPMorgan Chase Bank, N.A. 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. JPMorgan Chase Bank, N.A.
evaluates its outstanding legal proceedings each quarter to
assess its litigation reserves, and makes adjustments in
such reserves, upwards or downward, as appropriate, based
on management’s best judgment after consultation with
counsel. During the years ended December 31, 2017, 2016
and 2015, JPMorgan Chase’s legal expense was a benefit of
$(139) million, a benefit of $(289) million, and an expense
of $2.0 billion, respectively. Where a particular litigation
matter involves one or more subsidiaries or affiliates of
JPMorgan Chase, JPMorgan Chase determines the
appropriate allocation of legal expense among those
subsidiaries or affiliates (including, where applicable,
JPMorgan Chase Bank, N.A.). There is no assurance that
JPMorgan Chase Bank N.A.’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, JPMorgan Chase
and JPMorgan Chase Bank, N.A. 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. JPMorgan Chase
Bank, N.A. believes, based upon its current knowledge, after
consultation with counsel and after taking into account its
current litigation reserves, that the legal proceedings

Note 28 – Business changes and developments

Internal transfers of legal entities under common control Subsequent events
From time to time there may be transfers of legal entities JPMorgan Chase Bank, N.A. has performed an evaluation of
under common control between JPMorgan Chase Bank, N.A. events that have occurred subsequent to December 31,
and JPMorgan Chase. Such transfers are accounted for at 2017, and through February 27, 2018 (the date of the
historical cost in accordance with U.S. GAAP. However, all filing of this report). There have been no material
transfers were reflected in the Consolidated Financial subsequent events that occurred during such period that
Statements prospectively, and not as of the beginning of the would require disclosure or recognition in JPMorgan Chase
applicable periods presented, because the impact of the Bank, N.A.’s Consolidated Financial Statements as of
transfers was not material to JPMorgan Chase Bank, N.A.’s December 31, 2017.
Consolidated Financial Statements.
During the years ended December 31, 2017 and 2016,
there were no significant transfers of legal entities.
On August 31, 2015, JPMorgan Chase merged its wholly-
owned subsidiary, JPMorgan Bank and Trust Company, N.A.
(“JPMBT”), into JPMorgan Chase Bank, N.A. JPMBT’s
principal activity was a borrowing relationship with the
Federal Home Loan Bank of San Francisco (“FHLB SF”); and
a custody business serving California insurance companies
and other institutions. At the time of the merger, JPMBT had
approximately $15.9 billion of assets, predominantly
consisting of $9.9 billion of deposits with banks and $4.9
billion of loans; liabilities were $14.3 billion, consisting of
long-term debt. There were no other significant transfers of
legal entities for the year ended December 31, 2015.

Supplementary information:
Glossary of Terms and Acronyms
2017 Form 10-K: Annual report on Form 10-K for year obligations, or certain restructurings of the debt of the
ended December 31, 2017, filed with the U.S. Securities reference entity, neither party has recourse to the reference
and Exchange Commission. entity. The protection purchaser has recourse to the
protection seller for the difference between the face value
ABS: Asset-backed securities of the CDS contract and the fair value at the time of settling
Active foreclosures: Loans referred to foreclosure where the credit derivative contract. The determination as to
formal foreclosure proceedings are ongoing. Includes both whether a credit event has occurred is generally made by
judicial and non-judicial states. the relevant International Swaps and Derivatives
Association (“ISDA”) Determinations Committee.
AFS: Available-for-sale
Criticized: Criticized loans, lending-related commitments
AOCI: Accumulated other comprehensive income/(loss) and derivative receivables that are classified as special
mention, substandard and doubtful categories for
ARM: Adjustable rate mortgage(s) regulatory purposes and are generally consistent with a
Beneficial interests issued by consolidated VIEs: rating of CCC+/Caa1 and below, as defined by S&P and
Represents the interest of third-party holders of debt, Moody’s.
equity securities, or other obligations, issued by VIEs that CRO: Chief Risk Officer
JPMorgan Chase Bank, N.A. consolidates.
CVA: Credit valuation adjustments
Benefit obligation: Refers to the projected benefit
obligation for pension plans and the accumulated Dodd-Frank Act: Wall Street Reform and Consumer
postretirement benefit obligation for OPEB plans. Protection Act
BHC: Bank holding company DOJ: U.S. Department of Justice
CCP: “Central counterparty” is a clearing house that DOL: U.S. Department of Labor
interposes itself between counterparties to contracts traded
in one or more financial markets, becoming the buyer to DRPC: Board of Directors’ Risk Policy Committee
every seller and the seller to every buyer and thereby DVA: Debit valuation adjustment
ensuring the future performance of open contracts. A CCP
becomes counterparty to trades with market participants EC: European Commission
through novation, an open offer system, or another legally
binding arrangement. Embedded derivatives: are implicit or explicit terms or
features of a financial instrument that affect some or all of
CDS: Credit default swaps the cash flows or the value of the instrument in a manner
similar to a derivative. An instrument containing such terms
CET1 Capital: Common equity Tier 1 Capital or features is referred to as a “hybrid.” The component of
CFO: Chief Financial Officer the hybrid that is the non-derivative instrument is referred
to as the “host.” For example, callable debt is a hybrid
CFTC: Commodity Futures Trading Commission instrument that contains a plain vanilla debt instrument
(i.e., the host) and an embedded option that allows the
CIO: Chief Investment Office issuer to redeem the debt issue at a specified date for a
CLO: Collateralized loan obligations specified amount (i.e., the embedded derivative). However,
a floating rate instrument is not a hybrid composed of a
Collateral-dependent: A loan is considered to be collateral- fixed-rate instrument and an interest rate swap.
dependent when repayment of the loan is expected to be
provided solely by the underlying collateral, rather than by ERISA: Employee Retirement Income Security Act of 1974
cash flows from the borrower’s operations, income or other ETD: “Exchange-traded derivatives”: Derivative contracts
resources. that are executed on an exchange and settled via a central
Credit derivatives: Financial instruments whose value is clearing house.
derived from the credit risk associated with the debt of a EU: European Union
third-party issuer (the reference entity) which allow one
party (the protection purchaser) to transfer that risk to Fannie Mae: Federal National Mortgage Association
another party (the protection seller). Upon the occurrence
FASB: Financial Accounting Standards Board
of a credit event by the reference entity, which may include,
among other events, the bankruptcy or failure to pay its FCA: Financial Conduct Authority

Glossary of Terms
FDIA: Federal Depository Insurance Act Interchange income: A fee paid to a credit card issuer in
the clearing and settlement of a sales or cash advance
FDIC: Federal Deposit Insurance Corporation transaction.
Federal Reserve: The Board of the Governors of the Federal Investment-grade: An indication of credit quality based on
Reserve System JPMorgan Chase Bank, N.A.’s internal risk assessment
FFIEC: Federal Financial Institutions Examination Council system. “Investment grade” generally represents a risk
profile similar to a rating of a “BBB-”/“Baa3” or better, as
FHA: Federal Housing Administration defined by independent rating agencies.
FHLB: Federal Home Loan Bank ISDA: International Swaps and Derivatives Association
FICO score: A measure of consumer credit risk provided by JPMorgan Chase: JPMorgan Chase & Co.
credit bureaus, typically produced from statistical models
by Fair Isaac Corporation utilizing data collected by the JPMorgan Chase Bank, N.A.: JPMorgan Chase Bank,
credit bureaus. National Association
FVA: Funding valuation adjustment LCR: Liquidity coverage ratio
FX: Foreign exchange LGD: Loss given default
G7: Group of Seven nations: Countries in the G7 are LIBOR: London Interbank Offered Rate
Canada, France, Germany, Italy, Japan, the U.K. and the U.S. LLC: Limited Liability Company
G7 government bonds: Bonds issued by the government of LTIP: Long-term incentive plan
one of the G7 nations.
LTV: “Loan-to-value”: For residential real estate loans, the
Ginnie Mae: Government National Mortgage Association relationship, expressed as a percentage, between the
GSE: Fannie Mae and Freddie Mac principal amount of a loan and the appraised value of the
collateral (i.e., residential real estate) securing the loan.
GSIB: Global systemically important banks
Origination date LTV ratio
HELOAN: Home equity loan
The LTV ratio at the origination date of the loan. Origination
HELOC: Home equity line of credit date LTV ratios are calculated based on the actual appraised
values of collateral (i.e., loan-level data) at the origination
Home equity – senior lien: Represents loans and date.
commitments where JPMorgan Chase Bank, N.A. holds the
first security interest on the property. Current estimated LTV ratio
Home equity – junior lien: Represents loans and An estimate of the LTV as of a certain date. The current
commitments where JPMorgan Chase Bank, N.A. holds a estimated LTV ratios are calculated using estimated
security interest that is subordinate in rank to other liens. collateral values derived from a nationally recognized home
price index measured at the metropolitan statistical area
HTM: Held-to-maturity (“MSA”) level. These MSA-level home price indices consist of
IDI: Insured depository institutions actual data to the extent available and forecasted data
where actual data is not available. As a result, the estimated
Impaired loan: Impaired loans are loans measured at collateral values used to calculate these ratios do not
amortized cost, for which it is probable that JPMorgan represent actual appraised loan-level collateral values; as
Chase Bank, N.A. will be unable to collect all amounts due, such, the resulting LTV ratios are necessarily imprecise and
including principal and interest, according to the should therefore be viewed as estimates.
contractual terms of the agreement. Impaired loans include
the following: Combined LTV ratio
• All wholesale nonaccrual loans The LTV ratio considering all available lien positions, as well
as unused lines, related to the property. Combined LTV
• All TDRs (both wholesale and consumer), including ones ratios are used for junior lien home equity products.
that have returned to accrual status

Glossary of Terms
Master netting agreement: A single agreement with a Subprime

counterparty that permits multiple transactions governed
by that agreement to be terminated or accelerated and Subprime loans are loans that, prior to mid-2008, were
settled through a single payment in a single currency in the offered to certain customers with one or more high risk
event of a default (e.g., bankruptcy, failure to make a characteristics, including but not limited to: (i) unreliable or
required payment or securities transfer or deliver collateral poor payment histories; (ii) a high LTV ratio of greater than
or margin when due). 80% (without borrower-paid mortgage insurance); (iii) a
high debt-to-income ratio; (iv) an occupancy type for the
Merchant services business: is a business that primarily loan is other than the borrower’s primary residence; or (v) a
processes transactions for merchants. history of delinquencies or late payments on the loan.
MBS: Mortgage-backed securities MSA: Metropolitan statistical areas
Moody’s: Moody’s Investor Services MSR: Mortgage servicing rights
Mortgage product types: NA: Data is not applicable or available for the period
presented.
Alt-A
NAV: Net Asset Value
Alt-A loans are generally higher in credit quality than
subprime loans but have characteristics that would NOL: Net operating loss
disqualify the borrower from a traditional prime loan. Alt-A
lending characteristics may include one or more of the Nonaccrual loans: Loans for which interest income is not
following: (i) limited documentation; (ii) a high combined recognized on an accrual basis. Loans (other than credit
loan-to-value (“CLTV”) ratio; (iii) loans secured by non- card loans and certain consumer loans insured by U.S.
owner occupied properties; or (iv) a debt-to-income ratio government agencies) are placed on nonaccrual status
above normal limits. A substantial proportion of JPMorgan when full payment of principal and interest is not expected,
Chase Bank, N.A.’s Alt-A loans are those where a borrower regardless of delinquency status, or when principal and
does not provide complete documentation of his or her interest have been in default for a period of 90 days or
assets or the amount or source of his or her income. more unless the loan is both well-secured and in the
process of collection. Collateral-dependent loans are
Option ARMs typically maintained on nonaccrual status.
The option ARM real estate loan product is an adjustable- OAS: Option-adjusted spread
rate mortgage loan that provides the borrower with the
option each month to make a fully amortizing, interest-only OCC: Office of the Comptroller of the Currency
or minimum payment. The minimum payment on an option OCI: Other comprehensive income/(loss)
ARM loan is based on the interest rate charged during the
introductory period. This introductory rate is usually OPEB: Other postretirement employee benefit
significantly below the fully indexed rate. The fully indexed
rate is calculated using an index rate plus a margin. Once Over-the-counter (“OTC”) derivatives: Derivative contracts
the introductory period ends, the contractual interest rate that are negotiated, executed and settled bilaterally
charged on the loan increases to the fully indexed rate and between two derivative counterparties, where one or both
adjusts monthly to reflect movements in the index. The counterparties is a derivatives dealer.
minimum payment is typically insufficient to cover interest Over-the-counter cleared (“OTC-cleared”) derivatives:
accrued in the prior month, and any unpaid interest is Derivative contracts that are negotiated and executed
deferred and added to the principal balance of the loan. bilaterally, but subsequently settled via a central clearing
Option ARM loans are subject to payment recast, which house, such that each derivative counterparty is only
converts the loan to a variable-rate fully amortizing loan exposed to the default of that clearing house.
upon meeting specified loan balance and anniversary date
triggers. OTTI: Other-than-temporary impairment
Prime PCI: “Purchased credit-impaired” loans represents certain

loans that were acquired and deemed to be credit-impaired
Prime mortgage loans are made to borrowers with good on the acquisition date in accordance with the guidance of
credit records who meet specific underwriting the FASB. The guidance allows purchasers to aggregate
requirements, including prescriptive requirements related credit-impaired loans acquired in the same fiscal quarter
to income and overall debt levels. New prime mortgage into one or more pools, provided that the loans have
borrowers provide full documentation and generally have common risk characteristics(e.g., product type, LTV ratios,
reliable payment histories. FICO scores, past due status, geographic location). A pool is
Glossary of Terms
then accounted for as a single asset with a single composite Risk-rated portfolio: Credit loss estimates are based on
interest rate and an aggregate expectation of cash flows. estimates of the probability of default (“PD”) and loss
severity given a default. The probability of default is the
PD: Probability of default likelihood that a borrower will default on its obligation; the
Principal transactions revenue: Principal transactions loss given default (“LGD”) is the estimated loss on the loan
revenue is driven by many factors, including the bid-offer that would be realized upon the default and takes into
spread, which is the difference between the price at which consideration collateral and structural support for each
JPMorgan Chase Bank, N.A. is willing to buy a financial or credit facility.
other instrument and the price at which JPMorgan Chase
RWA: “Risk-weighted assets”: Basel III establishes two
Bank, N.A. is willing to sell that instrument. It also consists
comprehensive methodologies for calculating RWA (a
of realized (as a result of closing out or termination of
Standardized approach and an Advanced approach) which
transactions, or interim cash payments) and unrealized (as
include capital requirements for credit risk, market risk, and
a result of changes in valuation) gains and losses on
in the case of Basel III Advanced, also operational risk. Key
financial and other instruments (including those accounted
differences in the calculation of credit risk RWA between the
for under the fair value option) primarily used in client-
Standardized and Advanced approaches are that for Basel
driven market-making activities and on private equity
III Advanced, credit risk RWA is based on risk-sensitive
investments. In connection with its client-driven market-
approaches which largely rely on the use of internal credit
making activities, JPMorgan Chase Bank, N.A. transacts in
models and parameters, whereas for Basel III Standardized,
debt and equity instruments, derivatives and commodities
credit risk RWA is generally based on supervisory risk-
(including physical commodities inventories and financial
weightings which vary primarily by counterparty type and
instruments that reference commodities).
asset class. Market risk RWA is calculated on a generally
Principal transactions revenue also includes certain realized consistent basis between Basel III Standardized and Basel III
and unrealized gains and losses related to hedge accounting Advanced.
and specified risk-management activities, including: (a)
RSU(s): Restricted stock units
certain derivatives designated in qualifying hedge
accounting relationships (primarily fair value hedges of S&P: Standard and Poor’s 500 Index
commodity and foreign exchange risk), (b) certain
derivatives used for specific risk management purposes, SAR(s): Stock appreciation rights
primarily to mitigate credit risk and foreign exchange risk,
Scored portfolio: The scored portfolio predominantly
and (c) other derivatives.
includes residential real estate loans, credit card loans and
PSU(s): Performance share units certain auto and business banking loans where credit loss
estimates are based on statistical analysis of credit losses
REIT: “Real estate investment trust”: A special purpose over discrete periods of time. The statistical analysis uses
investment vehicle that provides investors with the ability to portfolio modeling, credit scoring and decision-support
participate directly in the ownership or financing of real- tools.
estate related assets by pooling their capital to purchase
and manage income property (i.e., equity REIT) and/or SEC: Securities and Exchange Commission
mortgage loans (i.e., mortgage REIT). REITs can be publicly
SLR: Supplementary leverage ratio
or privately held and they also qualify for certain favorable
tax considerations. SMBS: Stripped mortgage-backed securities
Receivables from customers: Primarily represents margin SOA: Society of Actuaries
loans to brokerage customers that are collateralized
through assets maintained in the clients’ brokerage SPEs: Special purpose entities
accounts, as such no allowance is held against these
Structured notes: Structured notes are predominantly
receivables. These receivables are reported within accrued
financial instruments containing embedded derivatives.
interest and accounts receivable on JPMorgan Chase Bank,
N.A.’s Consolidated balance sheets. TDR: “Troubled debt restructuring” is deemed to occur
when JPMorgan Chase Bank, N.A. modifies the original
REO: Real estate owned
terms of a loan agreement by granting a concession to a
Retained loans: Loans that are held-for-investment (i.e., borrower that is experiencing financial difficulty.
excludes loans held-for-sale and loans at fair value).
TLAC: Total Loss Absorbing Capacity
RHS: Rural Housing Service of the U.S. Department of
U.K.: United Kingdom
Agriculture

Glossary of Terms
Unaudited: Financial statements and information that have

not been subjected to auditing procedures sufficient to
permit an independent certified public accountant to
express an opinion.
U.S.: United States of America
U.S. GAAP: Accounting principles generally accepted in the

U.S.
U.S. government-sponsored enterprises (“U.S. GSEs”) and

U.S. GSE obligations: In the U.S., GSEs are quasi-
governmental, privately held entities established by
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, which is directly owned by the
U.S. Department of Housing and Urban Development. 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. LCR: Liquidity coverage ratio under the final U.S. rule.
U.S. Treasury: U.S. Department of the Treasury
VA: U.S. Department of Veterans Affairs
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 trading assets.
Washington Mutual transaction: On September 25, 2008,

JPMorgan Chase acquired certain of the assets of the
banking operations of Washington Mutual Bank
(“Washington Mutual”) from the FDIC.

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JPMORGAN CHASE BANK,

CONSOLIDATED FINANCIAL STATEMENTS

Independent Auditor’s Report ....................................................................................................................................... 1

Consolidated Financial Statements:

Supplementary Information (unaudited):

February 27, 2018

PricewaterhouseCoopers LLP 300 Madison Avenue New York, NY 10017

JPMorgan Chase Bank, National Association/2017 Consolidated Financial Statements 1

Year ended December 31, (in millions) 2017 2016 2015

Provision for credit losses 1,845 2,486 1,376

2 JPMorgan Chase Bank, National Association/2017 Consolidated Financial Statements

Year ended December 31, (in millions) 2017 2016 2015

JPMorgan Chase Bank, National Association/2017 Consolidated Financial Statements 3

December 31, (in millions, except share data) 2017 2016

December 31, (in millions) 2017 2016

4 JPMorgan Chase Bank, National Association/2017 Consolidated Financial Statements

Year ended December 31, (in millions) 2017 2016 2015

JPMorgan Chase Bank, National Association/2017 Consolidated Financial Statements 5

Year ended December 31, (in millions) 2017 2016 2015

6 JPMorgan Chase Bank, National Association/2017 Consolidated Financial Statements

Note 1 – Overview and basis of presentation

JPMorgan Chase Bank, National Association/2017 Consolidated Financial Statements 7

8 JPMorgan Chase Bank, National Association/2017 Consolidated Financial Statements

JPMorgan Chase Bank, National Association/2017 Consolidated Financial Statements 9

10 JPMorgan Chase Bank, National Association/2017 Consolidated Financial Statements

JPMorgan Chase Bank, National Association/2017 Consolidated Financial Statements 11

12 JPMorgan Chase Bank, National Association/2017 Consolidated Financial Statements

JPMorgan Chase Bank, National Association/2017 Consolidated Financial Statements 13

JPMorgan Chase Bank, National Association/2017 Consolidated Financial Statements 15

Note 2 – ACCOUNTING AND REPORTING DEVELOPMENTS

FASB Standards issued but not adopted as of December 31, 2017

Classification of • Provides targeted amendments to the • Adopted January 1, 2018.

16 JPMorgan Chase Bank, National Association/2017 Consolidated Financial Statements

Definition of a • Narrows the definition of a business • Adopted January 1, 2018.

JPMorgan Chase Bank, National Association/2017 Consolidated Financial Statements 17

18 JPMorgan Chase Bank, National Association/2017 Consolidated Financial Statements

Goodwill • Requires an impairment loss to be • Required effective date: January 1, 2020.(a)

(a) Early adoption is permitted.

JPMorgan Chase Bank, National Association/2017 Consolidated Financial Statements 19

Note 3 – Fair value measurement

20 JPMorgan Chase Bank, National Association/2017 Consolidated Financial Statements

JPMorgan Chase Bank, National Association/2017 Consolidated Financial Statements 21

Classifications in the valuation

22 JPMorgan Chase Bank, National Association/2017 Consolidated Financial Statements

JPMorgan Chase Bank, National Association/2017 Consolidated Financial Statements 23

24 JPMorgan Chase Bank, National Association/2017 Consolidated Financial Statements

Assets and liabilities measured at fair value on a recurring basis

JPMorgan Chase Bank, National Association/2017 Consolidated Financial Statements 25

Fair value hierarchy

26 JPMorgan Chase Bank, National Association/2017 Consolidated Financial Statements

Transfers between levels for instruments carried at fair

JPMorgan Chase Bank, National Association/2017 Consolidated Financial Statements 27

28 JPMorgan Chase Bank, National Association/2017 Consolidated Financial Statements

JPMorgan Chase Bank, National Association/2017 Consolidated Financial Statements 29

30 JPMorgan Chase Bank, National Association/2017 Consolidated Financial Statements

JPMorgan Chase Bank, National Association/2017 Consolidated Financial Statements 31

Fair value measurements using significant unobservable inputs

Net derivative receivables: (a)

Loans 568 34 (c) 1 (26) (301) — — 276 3 (c)