J.P.Morgan 4Q23 Earnings Results
JPMORGAN CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except where otherwise noted)
BUSINESS METRICS
Advisory
Equity underwriting
Debt underwriting
Total investment banking fees
Client deposits and other third-party liabilities (average) (a)
Merchant processing volume (in billions) (b)
Assets under custody ("AUC") (period-end) (in billions)
95% Confidence Level - Total CIB VaR (average)
CIB trading VaR by risk type: (c)
Fixed income
Foreign exchange
Equities
Commodities and other
Diversification benefit to CIB trading VaR (d)
CIB trading VaR (c)
Credit Portfolio VaR (e)
Diversification benefit to CIB VaR (d)
CIB VaR
$
$
$
$
$
4Q23
751
324
579
1,654
660,750
639
32,392
35
10
5
8
(29)
29
16
(13)
32
$
$
3Q23
$
767
274
676
1,717
638,119
610
$ 29,725
49
17
7
10
(48)
35
15
(12)
38
$
$
$
2Q23
$
QUARTERLY TRENDS
540
318
699
1,557
647,479
$ 30,424
600
57
12
8
12
(48)
41
14
(11)
44
$
$
1Q23
$
756
235
663
1,654
633,729
$ 29,725
559
56
10
7
15
(44)
44
11
(10)
45
$
$
$
4Q22
738
250
479
1,467
649,694
583
28,635
66
11
13
18
(50)
58
10
(8)
60
4Q23 Change
3Q23
(2)%
18
(14)
(4)
4
5
9
(29)
(41)
(29)
(20)
40
(17)
7
(8)
(16)
JPMORGAN CHASE & Co.
4Q22
2%
30
21
13
2
10
13
(47)
(9)
(62)
(56)
42
(50)
60
(63)
(47)
$
$
$
2023
2,814
1,151
2,617
6,582
645,074
2,408
32,392
$
$
$
FULL YEAR
2022
3,051
1,034
2,844
6,929
687,391
2,158
28,635
2023 Change
2022
(8)%
11
(8)
(5)
(6)
12
13
(a) Client deposits and other third-party liabilities pertain to the Payments and Securities Services businesses.
(b) Represents Firmwide merchant processing volume.
(c) CIB trading VaR includes substantially all market-making and client-driven activities, as well as certain risk management activities in CIB, including credit spread sensitivity to CVA. Refer to VaR measurement on pages 133-135 of the Firm's 2022 Form 10-K for further information,
and pages 84-86 of the Firm's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2023 for further information.
(d) Diversification benefit represents the difference between the portfolio VaR and the sum of its individual components. This reflects the non-additive nature of VaR due to imperfect correlation across CIB risks.
(e) Credit Portfolio VaR includes the derivative CVA, hedges of the CVA and hedges of the retained loan portfolio, which are reported in principal transactions revenue. This VaR does not include the retained loan portfolio, which is not reported at fair value. In the first quarter of 2022,
in line with the Firm's internal model governance, the credit risk component of CVA related to certain counterparties was removed from Credit Portfolio VaR due to the widening of the credit spreads for those counterparties to elevated levels. The related hedges were also removed
to maintain consistency. This exposure is now reflected in other sensitivity-based measures.
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