JPMORGAN CHASE & CO

This section provides a comparative discussion of JPMorganChase’s Consolidated Results of Operations on a reported basis for the three months ended March 31, 2025 and 2024, unless otherwise specified. Factors that relate primarily to a single business segment or Corporate are discussed in more detail in the results of that segment or Corporate. Refer to pages 72–75 of this Form 10-Q and pages 161–164 of JPMorganChase’s 2024 Form 10-K for a discussion of the Critical Accounting Estimates Used by the Firm that affect the Consolidated Results of Operations.

(a) Included operating lease income of $829 million and $672 million for the three months ended March 31, 2025 and 2024. Refer to Note 5 for additional information.

Investment banking fees increased, reflecting in CIB:

•higher debt underwriting fees predominantly driven by elevated refinancing activity, particularly in leveraged finance, and

•higher advisory fees predominantly driven by the closing of deals announced in 2024,

•lower equity underwriting fees as challenging market conditions resulted in lower fees.

Refer to CIB segment results on pages 22-26 and Note 5 for additional information.

Principal transactions revenue increased, reflecting in CIB:

•higher Equity Markets revenue, particularly in Equity Derivatives, and

•higher Fixed Income Markets revenue, reflecting higher revenue in Rates, predominantly offset by lower revenue in Currencies & Emerging Markets, and Securitized Products.

Principal transactions revenue in CIB generally has offsets across other revenue lines, including net interest income. The Firm assesses the performance of its Markets business on a total net revenue basis.

Refer to CIB segment results on pages 22-26 and Note 5 for additional information.

Lending- and deposit-related fees increased due to:

•a reduction in client credits applied to deposit-related fees as well as increased volumes resulting in higher cash management fees in Payments,

•a decline in the amortization of the fair value discount on certain acquired lending-related commitments associated with First Republic, primarily in AWM, as certain of the commitments have expired.

Refer to CIB and AWM segment results on pages 22-26 and pages 27-29, respectively, and Note 5 for additional information.

Asset management fees increased as a result of net inflows in AWM and higher average market levels in AWM and CCB. Refer to CCB and AWM segment results on pages 19-21 and pages 27-29, respectively, and Note 5 for additional information.

Commissions and other fees increased, largely due to higher brokerage commissions and fees on higher volume, in both CIB and AWM. Refer to CIB and AWM segment results on pages 22-26 and pages 27-29, respectively, and Note 5 for additional information.

Investment securities losses decreased, reflecting lower net losses compared to the prior year, which included sales of securities, primarily U.S. GSE and government agency MBS and U.S. Treasuries, associated with repositioning the investment securities portfolio in Treasury and CIO. Refer to Corporate results on pages 30-31 and Note 9 for additional information.

Mortgage fees and related income: refer to Note 14 for additional information.

Card income was flat, reflecting, primarily in CCB, lower net interchange income and an increase in amortization related to new account origination costs, offset by higher annual fees. Refer to CCB segment results on pages 19-21 and Note 5 for additional information.

Other income increased, reflecting:

•a $588 million First Republic-related gain in Corporate, and

•higher auto operating lease income due to an increase in origination volume in CCB.

Refer to CCB and Corporate results on pages 19-21 and pages 30-31, respectively, for additional information; and Note 5 for additional information on the First Republic-related gain.

Net interest income increased driven by higher Markets net interest income, higher revolving balances in Card Services, the impact of securities activity including from prior quarters, and higher wholesale deposit balances. These factors were predominantly offset by the impact of lower rates and deposit margin compression, as well as lower average deposit balances in CCB.

The Firm’s average interest-earning assets were $3.7 trillion, up $223 billion, and the yield was 5.19%, down 36 basis points (“bps”). The net yield on these assets, on an FTE basis, was 2.58%, a decrease of 13 bps. The net yield excluding Markets was 3.80%, down 3 bps.

Refer to the Consolidated average balance sheets, interest and rates schedule on page 171 for additional information. Net yield excluding Markets is a non-GAAP financial measure. Refer to Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 15-16 for an additional discussion of net yield excluding Markets.

The provision for credit losses was $3.3 billion. Net charge-offs were $2.3 billion and the net addition to the allowance for credit losses was $973 million.

Net charge-offs included $2.1 billion inconsumer, predominantly driven by Card Services, reflecting the seasoning of vintages originated in recent years, and $187 million inwholesale.

The net addition to the allowance for credit losses was largely driven by changes in the weighted-average macroeconomic outlook, and consisted of:

•$549 million inwholesale, which also reflected changes in credit quality on client-specific exposures and the impact of new lending-related commitments, and

In the prior year, the provision was $1.9 billion, net charge-offs were $2.0 billion and the net reduction in the allowance for credit losses was $72 million.

Refer to CCB, CIB and AWM segment and Corporate results on pages 19-21, pages 22-26, pages 27-29, and pages 30-31, respectively; Allowance for Credit Losses on pages 61-63; Critical Accounting Estimates Used by the Firm on pages 72–75; and Notes 11 and 12 for additional information on the credit portfolio and the allowance for credit losses.

(a)Includes depreciation expense associated with auto operating lease assets. Refer to Note 16 for additional information.

(b)Refer to Note 5 for additional information.

Compensation expense increased driven by:

•higher revenue-related compensation, particularly in CIB and AWM, and

•growth in the number of employees across the LOBs and Corporate, primarily in front office and technology.

Noncompensation expense decreased as a result of:

•lower FDIC-related expense, which included the impact of an FDIC special assessment accrual release of $323 million in Corporate, compared with an accrual increase of $725 million in the prior year, and

•the absence of restructuring and integration costs associated with First Republic recorded in the prior year,

offset by

•higher legal expense, particularly in CIB, largely due to the absence of a legal benefit from the prior year,

•higher brokerage expense in CIB and higher distribution fees in AWM,

•higher investments in marketing, predominantly in CCB, as well as in technology across the Firm; and to a lesser extent,

•higher occupancy expense, higher operating losses, largely in CCB, and higher depreciation expense on higher auto lease assets.

Refer to Note 5 for additional information on other expense.

Theeffective tax rate decreased predominantly driven by higher benefits related to the vesting of employee share-based awards in the current period as a result of the Firm’s higher share price, and changes in the mix of income and expenses subject to U.S. federal, state and local taxes.