JPMORGAN CHASE & CO

Consolidated balance sheets analysis

The following is a discussion of the significant changes between June 30, 2025 and December 31, 2024. Refer to pages 161–164 for a discussion of the Critical Accounting Estimates Used by the Firm that affect the Consolidated Balance Sheets.

Cash and due from banks and deposits with banks decreased driven by Markets activities in CIB, and higher investment securities and cash deployment in Treasury and CIO, largely offset by the impact of higher deposits.

Federal funds sold and securities purchased under resale agreements increased driven by Markets, reflecting higher client-driven market-making activities and the impact of lower levels of netting, as well as when compared with seasonally lower levels at year-end. Refer to Note 10 for additional information on securities purchased under resale agreements.

Securities borrowed: refer to Note 10 for additional information.

Trading assets increased due to higher levels of debt and equity instruments in Markets related to client-driven market-making activities, as well as when compared with seasonally lower levels at year-end. Refer to Notes 2 and 4 for additional information.

Investment securities increased due to the net impact of:

•higher available-for-sale ("AFS") securities, reflecting net purchases, primarily U.S. Treasuries, partially offset by maturities and paydowns, and

•lower held to-maturity (“HTM”) securities driven by maturities and paydowns.

Refer to Corporate results on pages 39-41, Investment Portfolio Risk Management on page 76, and Notes 2 and 9 for additional information.

Loans increased, reflecting:

•higher wholesale loans, primarily in Markets, associated with higher client demand, and

•higher securities-based lending in AWM due to higher client demand,

•a decline in Home Lending as loan sales and paydowns outpaced originations.

Theallowance for loan losses increased, reflecting a net addition to the allowance for loan losses of $608 million, and consisted of:

•$443 million inconsumer, predominantly driven by Card Services, reflecting loan growth and the impact of changes in the Firm's weighted-average macroeconomic outlook, and

•$165 million inwholesale, driven by changes in credit quality of client-specific exposures and the impact of changes in the Firm's weighted-average macroeconomic outlook, partially offset by a reduction due to the impact of charge-offs.

There was also an $831 million net addition to the allowance for lending-related commitments recognized in other liabilities on the Consolidated balance sheets. The net addition was driven by the impact of new lending-related commitments.

Refer to Consolidated Results of Operations and Credit and Investment Risk Management on pages 9-13 and pages 58-76, respectively, Critical Accounting Estimates Used by the Firm on pages 85-88, and Notes 2, 3, 11 and 12 for additional information on loans and the total allowance for credit losses.

Accrued interest and accounts receivable increased primarily due to higher client receivables related to client-driven activities in CIB.

Goodwill, MSRs and other intangible assets: refer to Note 14 for additional information.

Other assets increased primarily due to higher cash collateral placed with central counterparties ("CCP") in Markets, and higher auto operating lease assets in CCB.

Deposits increased, reflecting the net impact of:

•an increase in CIB predominantly due to net inflows related to client-driven activities in Securities Services and Payments,

•an increase in CCB primarily driven by new accounts, largely offset by a decrease in existing account balances due to seasonal tax outflows and increased customer spending, and

•a decrease in AWM driven by continued migration into other investments and seasonal tax outflows, predominantly offset by growth in balances in new and existing client accounts, reflecting the impact of higher-yielding product offerings.

Federal funds purchased and securities loaned or sold under repurchase agreements increased driven by Markets, reflecting higher secured financing of trading assets, higher client-driven market-making activities, and the impact of lower levels of netting, as well as when compared with seasonally lower levels at year-end.

Short-term borrowings increased driven by higher financing requirements in Markets.

Refer to Liquidity Risk Management on pages 50-57 for additional information on deposits, federal funds purchased and securities loaned or sold under repurchase agreements, and short-term borrowings; and Notes 2 and 15 for deposits; and Note 10 for federal funds purchased and securities loaned or sold under repurchase agreements.

Trading liabilities increased due to client-driven market-making activities, which resulted in higher levels of short positions, as well as higher derivative payables, primarily as a result of market movements. Refer to Notes 2 and 4 for additional information.

Accounts payable and other liabilities increased due to higher client payables related to client-driven activities in CIB.

Beneficial interests issued by consolidated VIEs: Refer to Liquidity Risk Management on pages 50-57 and Notes 13 and 22 for additional information related to Firm-sponsored VIEs and loan securitization trusts.

Long-term debt increased driven by net issuances of structured notes in Markets due to client demand, as well as an increase in the fair value of such instruments, and net issuances of long-term debt in Treasury and CIO, partially offset by lower Federal Home Loan Bank ("FHLB") advances. Refer to Liquidity Risk Management on pages 50-57 for additional information.

Stockholders’ equity increased reflecting net income and lower unrealized losses in AOCI, predominantly driven by the net impact of lower interest rates and widening spreads on cash flow hedges and AFS securities in Treasury and CIO, largely offset by the impact of capital actions, including net repurchases of common shares and common and preferred stock dividend payments. Refer to Consolidated statements of changes in stockholders’ equity on page 94, Capital Actions on page 47, and Note 19 for additional information.

Consolidated cash flows analysis

The following is a discussion of cash flow activities during the six months ended June 30, 2025 and 2024.

Operating activities

•In 2025, cash used resulted from higher trading assets, higher accrued interest and accounts receivable and net originations and purchases of loans held-for sale, partially offset by higher trading liabilities.

•In 2024, cash used resulted from higher trading assets and higher accrued interest and accounts receivable, partially offset by higher trading liabilities and higher accounts payable and other liabilities.

Investing activities

•In 2025, cash used resulted from higher securities purchased under resale agreements, net loan originations and net purchases of investment securities.

•In 2024, cash used resulted from higher securities purchased under resale agreements and net purchases of investment securities.

Financing activities

•In 2025, cash provided reflected higher securities loaned or sold under repurchase agreements, higher deposits, and net proceeds from long- and short-term borrowings.

•In 2024, cash provided reflected higher securities loaned or sold under repurchase agreements and net proceeds from long- and short-term borrowings, partially offset by lower deposits and net redemption of preferred stock.

•For both periods, cash was used for repurchases of common stock and cash dividends on common and preferred stock.

Refer to Consolidated Balance Sheets Analysis on pages 14-15, Capital Risk Management on pages 43-49, and Liquidity Risk Management on pages 50-57, and the Consolidated Statements of Cash Flows on page 95 of this Form 10-Q, and pages 108–115 of JPMorganChase’s 2024 Form 10-K for a further discussion of the activities affecting the Firm’s cash flows.