JPMORGAN CHASE & CO FORM 8-K. (Current report filing) Filed 04/13/18 for the Period Ending 04/13/18

Transcription

1 JPMORGAN CHASE & CO FORM 8-K (Current report filing) Filed 04/13/18 for the Period Ending 04/13/18 Address 270 PARK AVE 38TH FL NEW YORK, NY, Telephone CIK Symbol JPM Fiscal Year 12/31 Copyright 2018, EDGAR Online, a division of Donnelley Financial Solutions. All Rights Reserved. Distribution and use of this document restricted under EDGAR Online, a division of Donnelley Financial Solutions, Terms of Use.

2 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (date of earliest event reported): April 13, 2018 JPMorgan Chase & Co. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) (Commission File Number) (I.R.S. employer identification no.) 270 Park Avenue, New York, New York (Address of principal executive offices) (Zip Code) Registrant s telephone number, including area code: (212) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: o Written communications pursuant to Rule 425 under the Securities Act (17 CFR ) o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR a-12) o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR d-2(b)) o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR e-4(c)) Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 ( of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 ( b-2 of this chapter). Emerging growth company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 1

3 Item 2.02 Results of Operations and Financial Condition On April 13, 2018, JPMorgan Chase & Co. ( JPMorgan Chase or the Firm ) reported 2018 first quarter net income of $8.7 billion, or $2.37 per share, compared with net income of $6.4 billion, or $1.65 per share, in the first quarter of A copy of the 2018 first quarter earnings release is attached hereto as Exhibit 99.1, and a copy of the earnings release financial supplement is attached hereto as Exhibit Each of the Exhibits provided with this Form 8-K shall be deemed to be filed for purposes of the Securities Exchange Act of This Current Report on Form 8-K (including the Exhibits hereto) contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of These statements are based on the current beliefs and expectations of JPMorgan Chase s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Factors that could cause JPMorgan Chase s actual results to differ materially from those described in the forward-looking statements can be found in JPMorgan Chase s Annual Report on Form 10-K for the year ended December 31, 2017, which has been filed with the Securities and Exchange Commission and is available on JPMorgan Chase s website ( ) and on the Securities and Exchange Commission s website ( ). JPMorgan Chase does not undertake to update any forward-looking statements. Item 9.01 Financial Statements and Exhibits (d) Exhibits Exhibit No. Description of Exhibit 12.1 JPMorgan Chase & Co. Computation of Earnings to Fixed Charges 12.2 JPMorgan Chase & Co. Computation of Earnings to Fixed Charges and Preferred Stock Dividend Requirements 99.1 JPMorgan Chase & Co. Earnings Release - First Quarter 2018 Results 99.2 JPMorgan Chase & Co. Earnings Release Financial Supplement - First Quarter

4 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. JPMorgan Chase & Co. (Registrant) By: /s/ Nicole Giles Nicole Giles Managing Director and Corporate Controller (Principal Accounting Officer) Dated: April 13,

5 INDEX TO EXHIBITS Exhibit No. Description of Exhibit 12.1 JPMorgan Chase & Co. Computation of Earnings to Fixed Charges 12.2 JPMorgan Chase & Co. Computation of Earnings to Fixed Charges and Preferred Stock Dividend Requirements 99.1 JPMorgan Chase & Co. Earnings Release - First Quarter 2018 Results 99.2 JPMorgan Chase & Co. Earnings Release Financial Supplement - First Quarter

6 EXHIBIT 12.1 JPMorgan Chase & Co. Computation of Ratio of Earnings to Fixed Charges Three months ended March 31, (in millions, except ratios) 2018 Excluding interest on deposits Income before income tax expense $ 10,662 Fixed charges: Interest expense 3,323 One-third of rents, net of income from subleases (a) 134 Total fixed charges 3,457 Add: Equity in undistributed income of affiliates (115) Income before income tax expense and fixed charges, excluding capitalized interest $ 14,004 Fixed charges, as above $ 3,457 Ratio of earnings to fixed charges 4.05 Including interest on deposits Fixed charges, as above $ 3,457 Add: Interest on deposits 1,060 Total fixed charges and interest on deposits $ 4,517 Income before income tax expense and fixed charges, excluding capitalized interest, as above $ 14,004 Add: Interest on deposits 1,060 Total income before income tax expense, fixed charges and interest on deposits $ 15,064 Ratio of earnings to fixed charges 3.33 (a) The proportion deemed representative of the interest factor.

7 EXHIBIT 12.2 JPMorgan Chase & Co. Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividend Requirements Three months ended March 31, (in millions, except ratios) 2018 Excluding interest on deposits Income before income tax expense $ 10,662 Fixed charges: Interest expense 3,323 One-third of rents, net of income from subleases (a) 134 Total fixed charges 3,457 Add: Equity in undistributed income of affiliates (115) Income before income tax expense and fixed charges, excluding capitalized interest $ 14,004 Fixed charges, as above $ 3,457 Preferred stock dividends (pre-tax) 521 Fixed charges including preferred stock dividends $ 3,978 Ratio of earnings to fixed charges and preferred stock dividend requirements 3.52 Including interest on deposits Fixed charges including preferred stock dividends, as above $ 3,978 Add: Interest on deposits 1,060 Total fixed charges including preferred stock dividends and interest on deposits $ 5,038 Income before income tax expense and fixed charges, excluding capitalized interest, as above $ 14,004 Add: Interest on deposits 1,060 Total income before income tax expense, fixed charges and interest on deposits $ 15,064 Ratio of earnings to fixed charges and preferred stock dividend requirements 2.99 (a) The proportion deemed representative of the interest factor.

8 JPMorgan Chase & Co. 270 Park Avenue, New York, NY NYSE symbol: JPM JPMORGAN CHASE REPORTS FIRST-QUARTER 2018 NET INCOME OF $8.7 BILLION, OR $2.37 PER SHARE FIRST-QUARTER 2018 RESULTS 1 ROE 15% ROTCE 2 19% Common equity Tier % Net payout LTM 3,4 97% Firmwide Metrics CCB ROE 25% CIB ROE 22% CB ROE 20% AWM ROE 34% Reported revenue of $27.9 billion; managed revenue of $28.5 billion 2 Average core loans 2 ex-cib, up 8% YoY and 1% QoQ Average core loans 2 up 8%; average deposits of $660 billion, up 6% Client investment assets of $276 billion, up 13%, with record net flows this quarter Credit card sales volume 5 up 12% and merchant processing volume up 15% Maintained #1 ranking for Global Investment Banking fees with 8.1% wallet share in 1Q18 Record Equity Markets revenue of $2.0 billion Treasury Services revenue, up 14%; Securities Services revenue, up 16% Average loan balances of $202 billion, up 6% Strong credit quality with 0 bps net charge-off rate Record average loan balances of $133 billion, up 12% Assets under management ( AUM ) of $2.0 trillion, up 10% Jamie Dimon, Chairman and CEO, commented on the financial results: 2018 is off to a good start with our businesses performing well across the board, driving strong top-line growth and building on the momentum from last year. We have been outpacing the industry on consumer deposit growth while attracting significant net new money and growing client investment assets 13%. Card sales and merchant processing volume both grew double digits, reflecting our investments in new products and innovation focused on our customers' needs. Dimon added: In the Corporate & Investment Bank we maintained our #1 rank in Global IB fees, including #1 in M&A which grew share in every region. A strong Markets performance was driven by record Equities revenue. Our multi-year investments in Treasury Services and Securities Services are paying off, with revenue up 14% and 16% in those businesses. Commercial Banking continued to see revenue growth driven by rates and good capital markets flows. Despite client sentiment remaining high, the environment is intensely competitive and lending was flat for the quarter. Our Asset & Wealth Management business delivered strong results, with long-term net inflows this quarter across all regions, even as volatility returned to the market. Dimon concluded: The global economy continues to do well, and we remain optimistic about the positive impact of tax reform in the U.S. as business sentiment remains upbeat, and consumers benefit from job and wage growth. We are committed to doing our part - and this company can be an engine that helps drive inclusive economic growth for all Americans, including our $20 billion long-term investment in our employees and communities, and we re working to tackle broader issues, like healthcare, that can help the whole country. SIGNIFICANT ITEMS 1Q18 results included $505 million (pretax) mark-to-market gains related to the $617 billion of credit and capital 7 raised in 1Q18 adoption of new recognition and measurement accounting guidance for certain equity investments previously held at cost ($0.11 increase in earnings per share) 6 $55 billion of credit for consumers FORTRESS PRINCIPLES Book value per share of $67.59, up 4%; tangible book value per share 2 of $54.05, up 4% Basel III common equity Tier 1 capital 2 of $184 billion and ratio 2 of 11.8% Firm SLR 2 of 6.5% OPERATING LEVERAGE 1Q18 reported expense of $16.1 billion; reported overhead ratio of 58%; 1Q18 adjusted expense 2 of $16.0 billion; adjusted overhead ratio 2 of 56% CAPITAL DISTRIBUTED $6.7 billion 4 distributed to shareholders in 1Q18 $4.7 billion of net repurchases and common dividend of $0.56 per share SUPPORTED CONSUMERS, BUSINESSES & COMMUNITIES $5 billion of credit for U.S. small businesses $217 billion of credit for corporations $331 billion of capital raised for corporate clients and non-u.s. government entities $9 billion of credit and capital raised for nonprofit and U.S. government entities, including states, municipalities, hospitals and universities Investor Contact: Jason Scott (212) Percentage comparisons noted in the bullet points are calculated for the first quarter of 2018 versus the prior-year first quarter, unless otherwise specified. 2 For notes on non-gaap financial measures, including managed basis reporting and key performance measures, see page 6. For additional notes see page 7. Media Contact: Joe Evangelisti (212)

9 JPMorgan Chase & Co. News Release In the discussion below of Firmwide results of JPMorgan Chase & Co. ( JPMorgan Chase or the Firm ), information is presented on a managed basis, which is a non-gaap financial measure. The discussion below of the Firm s business segments is also presented on a managed basis. For more information about managed basis, and non-gaap financial measures and key performance measures used by management to evaluate the performance of each line of business, see page 6. Comparisons noted in the sections below are calculated for the first quarter of 2018 versus the prior-year first quarter, unless otherwise specified. JPMORGAN CHASE (JPM) Net revenue on a reported basis was $27.9 billion, $24.5 billion, and $24.9 billion for the first quarter of 2018, fourth quarter of 2017, and first quarter of 2017, respectively. Results for JPM 4Q17 1Q17 ($ millions, except per share data) 1Q18 4Q17 1Q17 $ O/(U) O/(U) % $ O/(U) O/(U) % Net revenue - managed $ 28,520 $ 25,754 $ 25,850 $ 2, % $ 2, % Noninterest expense 16,080 14,895 15,283 1, Provision for credit losses 1,165 1,308 1,315 (143) (11) (150) (11) Net income 8 $ 8,712 $ 4,232 $ 6,448 $ 4, % $ 2, % Earnings per share $ 2.37 $ 1.07 $ 1.65 $ % $ % Return on common equity 15% 7% 11% Return on tangible common equity Discussion of Results: Net income was $8.7 billion, an increase of 35%. Net revenue was $28.5 billion, up 10%. Net interest income was $13.5 billion, up 9%, driven by the impact of higher rates and loan growth, partially offset by lower Markets net interest income. Noninterest revenue was $15.1 billion, up 12%, driven by higher Markets revenue, lower Card net acquisition costs, higher auto lease income and higher management fees in Asset & Wealth Management ( AWM ), partially offset by lower investment banking fees. Noninterest expense was $16.1 billion, up 5%, driven by higher compensation expense, volume-related transaction costs in CIB Markets and auto lease depreciation. The provision for credit losses was $1.2 billion, down from $1.3 billion in the prior year. The consumer provision reflected higher net charge-offs in Card in the current quarter, in line with expectations. The prior year included a write-down of the student loan portfolio which was sold in In Wholesale, the provision for credit losses was a benefit, reflecting net reserve releases of $170 million in the current quarter, driven by a reserve release in the Oil & Gas portfolio related to a single name. Income tax expense decreased by approximately $240 million despite a $2.0 billion increase in pre-tax income, reflecting the lower income tax rate as a result of the enactment of the Tax Cuts & Jobs Act ( TCJA ) 8. In the first quarter of 2018, JPMorgan Chase also adopted new accounting guidance on revenue recognition 6, which resulted in revenue and expense increasing by $313 million in the current quarter, predominantly in AWM and the remainder in CIB; net income was not impacted. Prior periods have been revised accordingly. 2

10 JPMorgan Chase & Co. News Release CONSUMER & COMMUNITY BANKING (CCB) Results for CCB 4Q17 1Q17 ($ millions) 1Q18 4Q17 1Q17 $ O/(U) O/(U) % $ O/(U) O/(U) % Net revenue $ 12,597 $ 12,070 $ 10,970 $ 527 4% $ 1, % Consumer & Business Banking 5,722 5,557 4, Home Lending 1,509 1,442 1, (20) (1) Card, Merchant Services & Auto 5,366 5,071 4, Noninterest expense 6,909 6,672 6, Provision for credit losses 1,317 1,231 1, (113) (8) Net income $ 3,326 $ 2,631 $ 1,988 $ % $ 1, % Discussion of Results: Net income was $3.3 billion, an increase of 67%. Net revenue was $12.6 billion, an increase of 15%. Consumer & Business Banking net revenue was $5.7 billion, up 17%, predominantly driven by higher net interest income as a result of higher deposit margins and growth. Home Lending net revenue was $1.5 billion, down 1%, driven by portfolio loan spread and production margin compression, predominantly offset by higher net servicing revenue. Card, Merchant Services & Auto net revenue was $5.4 billion, up 18%, driven by lower Card net acquisition costs, higher Card net interest income on margin expansion and loan growth, and higher auto lease volumes. Noninterest expense was $6.9 billion, up 8%, predominantly driven by investments in technology and marketing, higher auto lease depreciation, and continued business growth. The provision for credit losses was $1.3 billion, a decrease of $113 million, driven by the $218 million write-down in connection with the sale of the student loan portfolio in the prior year, and lower net charge-offs in Home Lending in the current quarter, largely offset by higher net charge-offs in Card, in line with expectations. CORPORATE & INVESTMENT BANK (CIB) Results for CIB 4Q17 1Q17 ($ millions) 1Q18 4Q17 1Q17 $ O/(U) O/(U) % $ O/(U) O/(U) % Net revenue $ 10,483 $ 7,518 $ 9,599 $ 2, % $ % Banking 3,005 3,091 3,084 (86) (3) (79) (3) Markets & Investor Services 7,478 4,427 6,515 3, Noninterest expense 5,659 4,553 5,184 1, Provision for credit losses (158) 130 (96) (288) NM (62) (65) Net income $ 3,974 $ 2,316 $ 3,241 $ 1, % $ % Discussion of Results: Net income was $4.0 billion, an increase of 23%. Net revenue was $10.5 billion, up 9%. Banking revenue was $3.0 billion, down 3%. Investment Banking revenue was $1.6 billion, down 7%, driven by lower debt and equity underwriting fees, which were partially offset by higher advisory fees. The business continued to rank #1 in Global Investment Banking fees. Treasury Services revenue was $1.1 billion, up 14%, predominantly driven by higher interest rates and growth in operating deposits. Lending revenue was $302 million, down 22%, predominantly driven by prior-year gains on securities received from restructurings. Markets & Investor Services revenue was $7.5 billion, up 15%, driven by higher Markets revenue, which included approximately $500 million of mark-to-market gains on certain equity investments previously held at cost 6, and approximately $150 million reduction in tax-equivalent adjustments as a result of the enactment of the TCJA. Excluding the impact of these items, Markets revenue was up 7% with strong growth in Equity Markets, and Fixed Income Markets flat. Equity Markets revenue was $2.0 billion, up 25%, driven by strong performance across products, predominantly in derivatives and Prime Services. Fixed Income Markets revenue reflected strong performance in Currencies & Emerging Markets and Commodities, offset by lower client activity in Rates and Credit. Securities Services revenue was $1.1 billion, 3

11 up 16%, driven by higher interest rates and deposit growth, as well as higher asset-based fees driven by net client inflows and improving market levels. Noninterest expense was $5.7 billion, up 9%, largely driven by higher compensation and volume-related transaction costs in Markets. The provision for credit losses was a benefit of $158 million, driven by a reserve release in the Oil & Gas portfolio related to a single name. The prior year was a benefit of $96 million primarily driven by releases in the Oil & Gas portfolio. COMMERCIAL BANKING (CB) Results for CB 4Q17 1Q17 ($ millions) 1Q18 4Q17 1Q17 $ O/(U) O/(U) % $ O/(U) O/(U) % Net revenue $ 2,166 $ 2,353 $ 2,018 $ (187) (8)% $ 148 7% Noninterest expense (68) (7) 19 2 Provision for credit losses (5) (62) (37) Net income $ 1,025 $ 957 $ 799 $ 68 7 % $ % Discussion of Results: Net income was $1.0 billion, an increase of 28%. Net revenue was $2.2 billion, up 7%, driven by higher net interest income due to higher deposit margins, partially offset by lower investment banking revenue. Noninterest expense was $844 million, up 2%. Excluding the impairment of leased assets in the prior year of $29 million, noninterest expense would have been up 6%, predominantly driven by the hiring of bankers, business-related support staff, and technology investments. The provision for credit losses was a benefit of $5 million, reflecting strong credit performance. The prior year was a benefit of $37 million driven by reserve releases in the Oil & Gas portfolio, partially offset by a reserve build due to select client downgrades. ASSET & WEALTH MANAGEMENT (AWM) Results for AWM 4Q17 1Q17 ($ millions) 1Q18 4Q17 1Q17 $ O/(U) O/(U) % $ O/(U) O/(U) % Net revenue $ 3,506 $ 3,638 $ 3,288 $ (132) (4)% $ % Noninterest expense 2,581 2,612 2,781 (31) (1) (200) (7) Provision for credit losses (3) (17) Net income $ 770 $ 654 $ 385 $ % $ % Discussion of Results: Net income was $770 million. Net revenue was $3.5 billion, an increase of 7%, driven by higher management fees on growth in assets under management and strong banking results driven by higher net interest income from deposit margin expansion and loan growth. Noninterest expense was $2.6 billion, a decrease of 7%, driven by lower legal expense, partially offset by higher revenue driven external fees and compensation expense. Assets under management were $2.0 trillion, up 10%, reflecting higher market levels and net inflows into long-term products partially offset by outflows from liquidity products. 4

12 JPMorgan Chase & Co. News Release CORPORATE Results for Corporate 4Q17 1Q17 ($ millions) 1Q18 4Q17 1Q17 $ O/(U) O/(U) % $ O/(U) O/(U) % Net revenue $ (232) $ 175 $ (25) $ (407) NM $ (207) NM Noninterest expense (59) (40) (11) (11) Provision for credit losses (4) (4) NM (4) NM Net income/(loss) $ (383) $ (2,326) $ 35 $ 1, % $ (418) NM Discussion of Results: Net loss was $383 million, compared with net income of $35 million in the prior year. Net revenue was a loss of $232 million, primarily driven by $245 million of investment securities losses and approximately $130 million (pretax) of losses on legacy Private Equity investments. Income tax expense was higher primarily due to tax adjustments. 5

13 JPMorgan Chase & Co. News Release 2. Notes on non-gaap financial measures and key performance measures: Notes on non-gaap financial measures a. In addition to analyzing the Firm s results on a reported basis, management reviews Firmwide results, including the overhead ratio, on a managed basis; these Firmwide managed basis results are non-gaap financial measures. The Firm also reviews the results of the lines of business on a managed basis. The Firm s definition of managed basis starts, in each case, with the reported U.S. GAAP results and includes certain reclassifications to present total net revenue for the Firm and each of the reportable business segments on a fully taxable-equivalent ( FTE ) basis. Accordingly, revenue from investments that receive tax credits and tax-exempt securities is presented in the managed results on a basis comparable to taxable investments and securities. These financial measures allow management to assess the comparability of revenue arising from both taxable and tax-exempt sources. The corresponding income tax impact related to tax-exempt items is recorded within income tax expense. These adjustments have no impact on net income as reported by the Firm as a whole or by the lines of business. For a reconciliation of the Firm s results from a reported to managed basis, see page 7 of the Earnings Release Financial Supplement. b. Tangible common equity ( TCE ), return on tangible common equity ( ROTCE ) and tangible book value per share ( TBVPS ), are each non-gaap financial measures. TCE represents the Firm s common stockholders equity (i.e., total stockholders equity less preferred stock) less goodwill and identifiable intangible assets (other than MSRs), net of related deferred tax liabilities. For a reconciliation from common stockholders equity to TCE, see page 9 of the Earnings Release Financial Supplement. ROTCE measures the Firm s net income applicable to common equity as a percentage of average TCE. TBVPS represents the Firm s TCE at period-end divided by common shares at period-end. Book value per share was $ 67.59, $ and $ at March 31, 2018, December 31, 2017, and March 31, 2017, respectively. TCE, ROTCE, and TBVPS are meaningful to the Firm, as well as investors and analysts, in assessing the Firm s use of equity. c. Adjusted expense and adjusted overhead ratio are each non-gaap financial measures. Adjusted expense excluded Firmwide legal expense/(benefit) of $70 million, $(207) million and $218 million for the three months ended March 31, 2018, December 31, 2017, and March 31, 2017, respectively. The adjusted overhead ratio measures the Firm s adjusted expense as a percentage of adjusted managed net revenue. Management believes this information helps investors understand the effect of these items on reported results and provides an alternate presentation of the Firm s performance. Notes on key performance measures d. Estimated as of March 31, The Basel III regulatory capital, risk-weighted assets and capital ratios, (fully phased-in effective January 1, 2019), and the Basel III supplementary leverage ratio ( SLR ), (fully-phased in effective January 1, 2018), are all considered key regulatory capital measures. The capital adequacy of the Firm is evaluated against the Basel III approach (Standardized or Advanced) that results, for each quarter, in the lower ratio (the Collins Floor ). These measures are used by management, bank regulators, investors and analysts to assess and monitor the Firm s capital position. For additional information on these measures, including the Collins Floor, see Capital Risk Management on pages of the Firm s Annual Report on Form 10-K for the year ended December 31, e. Core loans represent loans considered central to the Firm s ongoing businesses; core loans exclude loans classified as trading assets, runoff portfolios, discontinued portfolios and portfolios the Firm has an intent to exit. 6

14 JPMorgan Chase & Co. News Release Additional notes: 3. Last twelve months ( LTM ). 4. Net of stock issued to employees. 5. Excludes Commercial Card. 6. Effective January 1, 2018, the Firm adopted several new accounting standards, the most significant of which were revenue recognition, and recognition and measurement of financial assets. The revenue recognition guidance requires gross presentation of certain costs that were previously offset against revenue. This change was adopted retrospectively and prior period amounts were revised accordingly, resulting in both noninterest revenue and noninterest expense increasing by $304 million and $264 million for the three months ended December 31, 2017 and March 31, 2017, respectively, with no impact to net income. JPMorgan Chase expects the 2018 full-year impact to be approximately $1.2 billion. The adoption of the recognition and measurement guidance resulted in $505 million of mark-to-market gains on certain equity investments previously held at cost. For additional information, including the impacts of each of the new accounting standards, see pages of the Earnings Release Financial Supplement. 7. The amount of credit provided to clients represents new and renewed credit, including loans and commitments. The amount of credit provided to small businesses reflects loans and increased lines of credit provided by Consumer & Business Banking; Card, Merchant Services & Auto; and Commercial Banking. The amount of credit provided to nonprofit and U.S. and non-u.s. government entities, including U.S. states, municipalities, hospitals and universities, represents credit provided by the Corporate & Investment Bank and Commercial Banking. 8. On December 22, 2017, the Tax Cuts & Jobs Act ( TCJA ) was signed into law and resulted in a $2.4 billion decrease to JPMorgan Chase s net income in the fourth quarter of

15 JPMorgan Chase & Co. News Release JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.6 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of customers in the United States and many of the world s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at JPMorgan Chase & Co. will host a conference call today, April 13, 2018, at 8:30 a.m. (Eastern) to present first-quarter 2018 financial results. The general public can access the call by dialing (866) in the U.S. and Canada, or (706) for international participants. Please dial in 10 minutes prior to the start of the call. The live audio webcast and presentation slides will be available on the Firm s website, under Investor Relations, Events & Presentations. A replay of the conference call will be available beginning at approximately 12:30 p.m. on April 13, 2018, through midnight, April 27, 2018, by telephone at (800) (U.S. and Canada) or (404) (international); use Conference ID # The replay will also be available via webcast on under Investor Relations, Events & Presentations. Additional detailed financial, statistical and business-related information is included in a financial supplement. The earnings release and the financial supplement are available at This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of These statements are based on the current beliefs and expectations of JPMorgan Chase & Co. s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Factors that could cause JPMorgan Chase & Co. s actual results to differ materially from those described in the forward-looking statements can be found in JPMorgan Chase & Co. s Annual Report on Form 10-K for the year ended December 31, 2017, which has been filed with the Securities and Exchange Commission and is available on JPMorgan Chase & Co. s website ( ), and on the Securities and Exchange Commission s website ( ). JPMorgan Chase & Co. does not undertake to update any forward-looking statements. 8

16 EARNINGS RELEASE FINANCIAL SUPPLEMENT FIRST QUARTER 2018

17 TABLE OF CONTENTS Page(s) Consolidated Results ConsolidatedFinancialHighlights 2 3 ConsolidatedStatementsofIncome 4 ConsolidatedBalanceSheets 5 CondensedAverageBalanceSheetsandAnnualizedYields 6 ReconciliationfromReportedtoManagedBasis 7 SegmentResults-ManagedBasis 8 CapitalandOtherSelectedBalanceSheetItems 9 EarningsPerShareandRelatedInformation 10 Business Segment Results Consumer&CommunityBanking Corporate&InvestmentBank CommercialBanking Asset&WealthManagement Corporate 23 Credit-RelatedInformation Non-GAAPFinancialMeasuresandKeyPerformance Measures 28 FinancialAccountingStandardsBoardStandardsAdopted January1, GlossaryofTermsandAcronyms(a) (a) RefertotheGlossaryofTermsandAcronymsonpages ofJPMorganChase&Co. s(the Firm s )AnnualReportonForm10-KfortheyearendedDecember31,2017(the 2017AnnualReport ).

18 CONSOLIDATED FINANCIAL HIGHLIGHTS (in millions, except per share and ratio data) QUARTERLY TRENDS 1Q18 Change SELECTED INCOME STATEMENT DATA 1Q18 4Q17 3Q17 2Q17 1Q17 4Q17 1Q17 Reported Basis Totalnetrevenue $ 27,907 $ 24,457 $ 25,578 $ 25,731 $ 24,939 14% 12% Totalnoninterestexpense 16,080 14,895 14,570 14,767 15, Pre-provisionprofit 11,827 9,562 11,008 10,964 9, Provisionforcreditlosses 1,165 1,308 1,452 1,215 1,315 (11) (11) NET INCOME 8,712 4,232 6,732 7,029 6, Managed Basis (a) Totalnetrevenue 28,520 25,754 26,452 26,666 25, Totalnoninterestexpense 16,080 14,895 14,570 14,767 15, Pre-provisionprofit 12,440 10,859 11,882 11,899 10, Provisionforcreditlosses 1,165 1,308 1,452 1,215 1,315 (11) (11) NET INCOME 8,712 4,232 6,732 7,029 6, EARNINGS PER SHARE DATA Netincome:Basic $ 2.38 $ 1.08 $ 1.77 $ 1.83 $ Diluted Averageshares:Basic 3, , , , ,601.7 (1) (4) Diluted 3, , , , ,630.4 (1) (4) MARKET AND PER COMMON SHARE DATA Marketcapitalization $ 374,423 $ 366,301 $ 331,393 $ 321,633 $ 312, Commonsharesatperiod-end 3, , , , ,552.8 (1) (4) Closingshareprice(b) $ $ $ $ $ Bookvaluepershare Tangiblebookvaluepershare( TBVPS )(c) Cashdividendsdeclaredpershare FINANCIAL RATIOS (d) Returnoncommonequity( ROE ) 15% 7% 11% 12% 11% Returnontangiblecommonequity( ROTCE )(c) Returnonassets CAPITAL RATIOS CommonequityTier1( CET1 )capitalratio(e) 11.8% (g) 12.2% 12.5% (h) 12.5% (h) 12.4% (h) Tier1capitalratio(e) 13.5 (g) (h) 14.2 (h) 14.1 (h) Totalcapitalratio(e) 15.3 (g) Tier1leverageratio(e) 8.2 (g) Supplementaryleverageratio("SLR")(f) 6.5% (g) EffectiveJanuary1,2018,theFirmadoptedseveralnewaccountingstandards.Certainofthenewaccountingstandardswereappliedretrospectivelyand,accordingly,priorperiodamountswererevised.Refertopage29foradditional information,includingtheimpactsofthenewaccountingstandards. (a) (b) (c) (d) (e) (f) (g) (h) Forafurtherdiscussionofmanagedbasis,seeReconciliationfromReportedtoManagedBasisonpage7. BasedontheclosingpricereportedbytheNewYorkStockExchange. TBVPSandROTCEarenon-GAAPfinancialmeasures.TBVPSrepresentstangiblecommonequity( TCE )dividedbycommonsharesatperiod-end.rotcemeasuresthefirm sannualizedearningsasapercentageofaveragetce. TCEisalsoanon-GAAPfinancialmeasure;forareconciliationofcommonstockholders equitytotce,seepage9.forfurtherdiscussionofthesemeasures,seepage28. Quarterlyratiosarebaseduponannualizedamounts. RatiospresentedarecalculatedundertheBaselIIITransitionalcapitalrulesandforthecapitalratiosrepresenttheCollinsFloor.Seefootnote(a)onpage9foradditionalinformationonBaselIIIandtheCollinsFloor. EffectiveJanuary1,2018,theSLRwasfullyphased-inunderBaselIII.TheSLRisdefinedasTier1capitaldividedbytheFirm stotalleverageexposure.priorperiodratioswerecalculatedunderthebaseliiitransitionalrules. Estimated. Thepriorperiodratioshavebeenrevisedtoconformwiththecurrentperiodpresentation. Page2

19 CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except ratio and headcount data) QUARTERLY TRENDS 1Q18 Change SELECTED BALANCE SHEET DATA (period-end) 1Q18 4Q17 3Q17 2Q17 1Q17 4Q17 1Q17 Totalassets $ 2,609,785 $ 2,533,600 $ 2,563,074 $ 2,563,174 $ 2,546,290 3% 2% Loans: Consumer,excludingcreditcardloans 373, , , , ,055 2 Creditcardloans 140, , , , ,016 (6) 4 Wholesaleloans 420, , , , , Total Loans 934, , , , ,974 4 Coreloans(a) 870, , , , , Coreloans(average)(a) 861, , , , , Deposits: U.S.offices: Noninterest-bearing 397, , , , ,439 1 (1) Interest-bearing 825, , , , , Non-U.S.offices: Noninterest-bearing 17,019 15,576 17,907 17,152 16, Interest-bearing 246, , , , , Total deposits 1,486,961 1,443,982 1,439,027 1,439,473 1,422, Long-termdebt 274, , , , ,492 (3) (5) Commonstockholders equity 230, , , , ,795 Totalstockholders equity 256, , , , ,863 Loans-to-depositsratio 63% 64% 63% 63% 63% Headcount 253, , , , , % CONFIDENCE LEVEL - TOTAL VaR AverageVaR $ 43 $ 34 $ 30 $ 27 $ LINE OF BUSINESS NET REVENUE (b) Consumer&CommunityBanking $ 12,597 $ 12,070 $ 12,033 $ 11,412 $ 10, Corporate&InvestmentBank 10,483 7,518 8,615 8,925 9, CommercialBanking 2,166 2,353 2,146 2,088 2,018 (8) 7 Asset&WealthManagement 3,506 3,638 3,472 3,437 3,288 (4) 7 Corporate (232) (25) NM NM TOTAL NET REVENUE $ 28,520 $ 25,754 $ 26,452 $ 26,666 $ 25, LINE OF BUSINESS NET INCOME Consumer&CommunityBanking $ 3,326 $ 2,631 $ 2,553 $ 2,223 $ 1, Corporate&InvestmentBank 3,974 2,316 2,546 2,710 3, CommercialBanking 1, Asset&WealthManagement Corporate (383) (2,326) NM NET INCOME $ 8,712 $ 4,232 $ 6,732 $ 7,029 $ 6, EffectiveJanuary1,2018,theFirmadoptedseveralnewaccountingstandards.Certainofthenewaccountingstandardswereappliedretrospectivelyand,accordingly,priorperiodamountswererevised.Refertopage29foradditional information,includingtheimpactsofthenewaccountingstandards.

20 (a) (b) LoansconsideredcentraltotheFirm songoingbusinesses.forfurtherdiscussionofcoreloans,seepage28. Forafurtherdiscussionofmanagedbasis,seeReconciliationfromReportedtoManagedBasisonpage7. Page3

21 CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share and ratio data) QUARTERLY TRENDS 1Q18 Change REVENUE 1Q18 4Q17 3Q17 2Q17 1Q17 4Q17 1Q17 Investmentbankingfees $ 1,736 $ 1,818 $ 1,868 $ 1,846 $ 1,880 (5)% (8)% Principaltransactions 3,952 1,907 2,721 3,137 3, Lending-anddeposit-relatedfees 1,477 1,506 1,497 1,482 1,448 (2) 2 Assetmanagement,administrationandcommissions 4,309 4,291 4,072 4,047 3, Securitiesgains/(losses) (245) (28) (1) (34) (3) NM NM Mortgagefeesandrelatedincome Cardincome 1,275 1,110 1,242 1, Otherincome 1, , Noninterest revenue 14,595 11,430 12,780 13,523 12, Interestincome 17,695 16,993 16,687 15,650 15, Interestexpense 4,383 3,966 3,889 3,442 2, Net interest income 13,312 13,027 12,798 12,208 12, TOTAL NET REVENUE 27,907 24,457 25,578 25,731 24, Provisionforcreditlosses 1,165 1,308 1,452 1,215 1,315 (11) (11) NONINTEREST EXPENSE Compensationexpense 8,862 7,498 7,697 7,757 8, Occupancyexpense (3) (8) Technology,communicationsandequipmentexpense 2,054 2,038 1,972 1,871 1, Professionalandoutsideservices 2,121 2,244 1,955 1,899 1,792 (5) 18 Marketing Otherexpense(a) 1,355 1,474 1,306 1,572 1,727 (8) (22) TOTAL NONINTEREST EXPENSE 16,080 14,895 14,570 14,767 15, Income before income tax expense 10,662 8,254 9,556 9,749 8, Incometaxexpense(b) 1,950 4,022 2,824 2,720 1,893 (52) 3 NET INCOME $ 8,712 $ 4,232 $ 6,732 $ 7,029 $ 6, NET INCOME PER COMMON SHARE DATA Basicearningspershare $ 2.38 $ 1.08 $ 1.77 $ 1.83 $ Dilutedearningspershare FINANCIAL RATIOS Returnoncommonequity(c) 15% 7% 11% 12% 11% Returnontangiblecommonequity(c)(d) Returnonassets(c) Effectiveincometaxrate(b) Overheadratio EffectiveJanuary1,2018,theFirmadoptedseveralnewaccountingstandards.Certainofthenewaccountingstandardswereappliedretrospectivelyand,accordingly,priorperiodamountswererevised.Refertopage29foradditional information,includingtheimpactsofthenewaccountingstandards. (a) (b) (c) (d) IncludedFirmwidelegalexpense/(benefit)of$70million,$(207)million,$(107)million,$61millionand$218millionforthethreemonthsendedMarch31,2018,December31,2017,September30,2017,June30,2017,and March31,2017,respectively. ThethreemonthsendedDecember31,2017resultsincludea$1.9billiontaxexpenseasaresultoftheestimatedimpactoftheenactmentoftheTaxCuts&JobsAct("TCJA"). Quarterlyratiosarebaseduponannualizedamounts. ForfurtherdiscussionofROTCE,seepage28. Page4

22 CONSOLIDATED BALANCE SHEETS (in millions) Mar 31, 2018 Change Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Mar 31, ASSETS Cashandduefrombanks $ 24,834 $ 25,898 $ 22,064 $ 21,820 $ 20,524 (4)% 21% Depositswithbanks 389, , , , ,362 (4) (12) Federalfundssoldandsecuritiespurchasedunder resaleagreements 247, , , , , Securitiesborrowed 116, , ,680 90,654 92, Tradingassets: Debtandequityinstruments 355, , , , , Derivativereceivables 56,914 56,523 58,260 56,506 56, Investmentsecurities 238, , , , ,850 (5) (15) Loans 934, , , , ,974 4 Less:Allowanceforloanlosses 13,375 13,604 13,539 13,363 13,413 (2) Loans, net of allowance for loan losses 921, , , , ,561 4 Accruedinterestandaccountsreceivable 72,659 67,729 61,757 64,038 60, Premisesandequipment 14,382 14,159 14,218 14,206 14, Goodwill,MSRsandotherintangibleassets 54,533 54,392 53,855 53,880 54,218 1 Otherassets 118, , , , , TOTAL ASSETS $ 2,609,785 $ 2,533,600 $ 2,563,074 $ 2,563,174 $ 2,546, LIABILITIES Deposits $ 1,486,961 $ 1,443,982 $ 1,439,027 $ 1,439,473 $ 1,422, Federal funds purchased and securities loaned or sold underrepurchaseagreements 179, , , , , (2) Short-termborrowings 62,667 51,802 53,967 53,143 39, Tradingliabilities: Debtandequityinstruments 99,588 85,886 89,089 91,628 90, Derivativepayables 36,949 37,777 39,446 41,795 44,575 (2) (17) Accountspayableandotherliabilities 192, , , , , BeneficialinterestsissuedbyconsolidatedVIEs 21,584 26,081 28,424 30,898 36,682 (17) (41) Long-termdebt 274, , , , ,492 (3) (5) TOTAL LIABILITIES 2,353,584 2,277,907 2,304,692 2,304,691 2,290, STOCKHOLDERS EQUITY Preferredstock 26,068 26,068 26,068 26,068 26,068 Commonstock 4,105 4,105 4,105 4,105 4,105 Additionalpaid-incapital 89,211 90,579 90,697 90,604 90,395 (2) (1) Retainedearnings 183, , , , , Accumulatedothercomprehensiveincome/(loss) (1,063) (119) (309) (392) (923) NM (15) SharesheldinRSUTrust,atcost (21) (21) (21) (21) (21) Treasurystock,atcost (45,954) (42,595) (37,985) (33,369) (30,424) (8) (51) TOTAL STOCKHOLDERS EQUITY 256, , , , ,863 TOTAL LIABILITIES AND STOCKHOLDERS EQUITY $ 2,609,785 $ 2,533,600 $ 2,563,074 $ 2,563,174 $ 2,546, EffectiveJanuary1,2018,theFirmadoptedseveralnewaccountingstandards.Certainofthenewaccountingstandardswereappliedretrospectivelyand,accordingly,priorperiodamountswererevised.Refertopage29foradditional information,includingtheimpactsofthenewaccountingstandards.

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24 CONDENSED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS (in millions, except rates) QUARTERLY TRENDS 1Q18 Change AVERAGE BALANCES 1Q18 4Q17 3Q17 2Q17 1Q17 4Q17 1Q17 ASSETS Depositswithbanks $ 423,807 $ 438,740 $ 456,673 $ 439,142 $ 423,746 (3)% % Federalfundssoldandsecuritiespurchasedunder resaleagreements 198, , , , , Securitiesborrowed 109, ,120 95,597 90,151 95, Tradingassets-debtinstruments 256, , , , , Investmentsecurities 239, , , , ,565 (6) (16) Loans 926, , , , , Allotherinterest-earningassets(a) 49,169 42,666 41,737 40,041 41, Total interest-earning assets 2,203,413 2,189,707 2,194,174 2,177,109 2,160, Tradingassets-equityinstruments 107, , , , ,284 5 (7) Tradingassets-derivativereceivables 60,492 58,890 59,839 58,250 61,400 3 (1) Allothernoninterest-earningassets 214, , , , , TOTAL ASSETS $ 2,586,043 $ 2,562,155 $ 2,569,231 $ 2,559,236 $ 2,533, LIABILITIES Interest-bearingdeposits $ 1,046,521 $ 1,030,660 $ 1,029,534 $ 1,006,008 $ 986, Federalfundspurchasedandsecuritiesloanedor soldunderrepurchaseagreements 196, , , , , Short-termborrowings(b) 57,603 53,236 52,958 43,159 36, Tradingliabilities-debtandotherinterest-bearing liabilities(c) 171, , , , ,824 2 (3) BeneficialinterestsissuedbyconsolidatedVIEs 23,561 27,295 29,832 34,083 38,775 (14) (39) Long-termdebt 279, , , , ,224 (2) (5) Total interest-bearing liabilities 1,774,290 1,744,830 1,757,539 1,748,822 1,719, Noninterest-bearingdeposits 399, , , , ,548 (1) (1) Tradingliabilities-equityinstruments 28,631 22,747 20,905 19,346 21, Tradingliabilities-derivativepayables 41,745 38,845 44,627 44,740 48,373 7 (14) Allothernoninterest-bearingliabilities 88,207 91,987 86,742 85,939 84,428 (4) 4 TOTAL LIABILITIES 2,332,360 2,303,940 2,311,302 2,302,968 2,279, Preferredstock 26,068 26,642 26,068 26,068 26,068 (2) Commonstockholders equity 227, , , , ,703 (2) TOTAL STOCKHOLDERS EQUITY 253, , , , ,771 (2) TOTAL LIABILITIES AND STOCKHOLDERS EQUITY $ 2,586,043 $ 2,562,155 $ 2,569,231 $ 2,559,236 $ 2,533, AVERAGE RATES (d) INTEREST-EARNING ASSETS Depositswithbanks 1.26 % 1.12 % 1.09 % 0.93 % 0.69 % Federalfundssoldandsecuritiespurchasedunder resaleagreements Securitiesborrowed(e) (0.09) (0.19) Tradingassets-debtinstruments Investmentsecurities Loans Allotherinterest-earningassets(a) Total interest-earning assets INTEREST-BEARING LIABILITIES Interest-bearingdeposits

25 Federalfundspurchasedandsecuritiesloanedor soldunderrepurchaseagreements Short-termborrowings(b) Tradingliabilities-debtandotherinterest-bearing liabilities(c) BeneficialinterestsissuedbyconsolidatedVIEs Long-termdebt Total interest-bearing liabilities INTEREST RATE SPREAD 2.29 % 2.24 % 2.19 % 2.16 % 2.18 % NET YIELD ON INTEREST-EARNING ASSETS 2.48 % 2.42 % 2.37 % 2.31 % 2.33 % EffectiveJanuary1,2018,theFirmadoptedseveralnewaccountingstandards.Certainofthenewaccountingstandardswereappliedretrospectivelyand,accordingly,priorperiodamountswererevised.Refertopage29foradditional information,includingtheimpactsofthenewaccountingstandards. (a) Includesheld-for-investmentmarginloans,whichareclassifiedinaccruedinterestandaccountsreceivable,andallotherinterest-earningassetsincludedinotherassetsontheConsolidatedBalanceSheets. (b) Includescommercialpaper. (c) Otherinterest-bearingliabilitiesincludebrokeragecustomerpayables. (d) Interestincludestheeffectofrelatedhedgingderivatives.Taxable-equivalentamountsareusedwhereapplicable. (e) Negativeyieldisrelatedtoclient-drivendemandforcertainsecuritiescombinedwiththeimpactoflowinterestrates;thisismatchedbookactivityandthenegativeinterestexpenseonthecorrespondingsecuritiesloanedisrecognized ininterestexpenseandreportedwithintradingliabilities debtandotherinterest-bearingliabilities. Page6

26 RECONCILIATION FROM REPORTED TO MANAGED BASIS (in millions, except ratios) TheFirmpreparesitsConsolidatedFinancialStatementsusingaccountingprinciplesgenerallyacceptedintheU.S.( U.S.GAAP ).Thatpresentation,whichisreferredtoas reported basis,providesthereaderwithanunderstandingofthe Firm sresultsthatcanbetrackedconsistentlyfromyear-to-yearandenablesacomparisonofthefirm sperformancewithothercompanies U.S.GAAPfinancialstatements.InadditiontoanalyzingtheFirm sresultsonareportedbasis, managementreviewsfirmwideresults,includingtheoverheadratio,ona managed basis;thesefirmwidemanagedbasisresultsareconsiderednon-gaapfinancialmeasures.thefirmalsoreviewstheresultsofthelinesofbusinessona managedbasis.foradditionalinformationonmanagedbasis,refertothenotesonnon-gaapfinancialmeasuresonpage28. ThefollowingsummarytableprovidesareconciliationfromreportedU.S.GAAPresultstomanagedbasis. QUARTERLY TRENDS 1Q18 Change 1Q18 4Q17 3Q17 2Q17 1Q17 4Q17 1Q17 OTHER INCOME Other income - reported $ 1,626 $ 449 $ 952 $ 1,474 $ % 111% Fullytaxable-equivalentadjustments(a) (53) (22) Other income - managed $ 2,081 $ 1,420 $ 1,507 $ 2,070 $ 1, TOTAL NONINTEREST REVENUE Total noninterest revenue - reported $ 14,595 $ 11,430 $ 12,780 $ 13,523 $ 12, Fullytaxable-equivalentadjustments(a) (53) (22) Total noninterest revenue - managed $ 15,050 $ 12,401 $ 13,335 $ 14,119 $ 13, NET INTEREST INCOME Net interest income - reported $ 13,312 $ 13,027 $ 12,798 $ 12,208 $ 12, Fullytaxable-equivalentadjustments(a) (52) (52) Net interest income - managed $ 13,470 $ 13,353 $ 13,117 $ 12,547 $ 12, TOTAL NET REVENUE Total net revenue - reported $ 27,907 $ 24,457 $ 25,578 $ 25,731 $ 24, Fullytaxable-equivalentadjustments(a) 613 1, (53) (33) Total net revenue - managed $ 28,520 $ 25,754 $ 26,452 $ 26,666 $ 25, PRE-PROVISION PROFIT Pre-provision profit - reported $ 11,827 $ 9,562 $ 11,008 $ 10,964 $ 9, Fullytaxable-equivalentadjustments(a) 613 1, (53) (33) Pre-provision profit - managed $ 12,440 $ 10,859 $ 11,882 $ 11,899 $ 10, INCOME BEFORE INCOME TAX EXPENSE Income before income tax expense - reported $ 10,662 $ 8,254 $ 9,556 $ 9,749 $ 8, Fullytaxable-equivalentadjustments(a) 613 1, (53) (33) Income before income tax expense - managed $ 11,275 $ 9,551 $ 10,430 $ 10,684 $ 9, INCOME TAX EXPENSE Income tax expense - reported $ 1,950 $ 4,022 $ 2,824 $ 2,720 $ 1,893 (52) 3 Fullytaxable-equivalentadjustments(a) 613 1, (53) (33) Income tax expense - managed $ 2,563 $ 5,319 $ 3,698 $ 3,655 $ 2,804 (52) (9) OVERHEAD RATIO Overhead ratio - reported 58 % 61 % 57 % 57 % 61 % Overhead ratio - managed EffectiveJanuary1,2018,theFirmadoptedseveralnewaccountingstandards.Certainofthenewaccountingstandardswereappliedretrospectivelyand,accordingly,priorperiodamountswererevised.Refertopage29foradditional information,includingtheimpactsofthenewaccountingstandards. (a)predominantlyrecognizedinthecibandcommercialbanking( CB )businesssegmentsandcorporate. Page7