J.P.Morgan 2Q23 Investor Results slide image

J.P.Morgan 2Q23 Investor 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 $ $ $ 2Q23 $ 540 318 699 1,557 647,479 $ 30,424 600.1 57 12 8 12 (48) 41 14 (11) 44 $ $ $ $ 1Q23 756 235 663 1,654 633,729 558.8 29,725 56 10 7 15 (44) 44 11 (10) 45 $ $ $ 4Q22 $ QUARTERLY TRENDS 738 250 479 1,467 649,694 $ 28,635 583.2 66 11 13 18 (50) 58 10 (8) 60 $ $ 3Q22 $ 848 290 624 1,762 669,215 $ 27,157 545.4 64 9 11 14 (47) 51 10 (8) 53 $ $ $ $ 2Q22 664 245 741 1,650 722,388 539.6 28,579 60 8 11 14 (43) 50 17 (15) 52 2Q23 Change 1Q23 (29)% 35 5 (6) 2 7 2 2 20 14 (20) (9) (7) 27 (10) (2) JPMORGAN CHASE & Co. 2Q22 (19)% 30 (6) (6) (10) 11 6 (5) 50 (27) (14) (12) (18) (18) 27 (15) $ $ $ 2023 SIX MONTHS ENDED JUNE 30, 1,296 553 1,362 3,211 640,642 1,158.9 30,424 $ $ $ 2022 1,465 494 1,741 3,700 715,791 1,029.8 28,579 2023 Change 2022 (12)% 12 (22) (13) (10) 13 6 (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 67-69 of the Firm's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 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. Page 18
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