JPMORGAN CHASE & CO (JPM)

CIK: 0000019617. SIC: 6021 National Commercial Banks. Latest 10-K as of: 2026-02-13.
SIC breadcrumb: Finance, Insurance, And Real Estate > Depository Institutions > SIC 6021 National Commercial Banks
SEC company page: https://www.sec.gov/edgar/browse/?CIK=19617. Latest filing source: 0001628280-26-008131.
Selected Fundamentals

Metric	Value	Unit	FY	Filed
Revenue	182,447,000,000	USD	2025	2026-02-13
Net income	57,048,000,000	USD	2025	2026-02-13
Assets	4,424,900,000,000	USD	2025	2026-02-13
Macro Cross-References

CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
UNRATE - Unemployment Rate
FEDFUNDS - Federal Funds Effective Rate
CES0500000003 - Average Hourly Earnings of All Employees, Total Private
DFEDTARU - Federal Funds Target Range - Upper Limit
DFEDTARL - Federal Funds Target Range - Lower Limit
DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
PCEPI - Personal Consumption Expenditures: Chain-type Price Index
PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
PPIACO - Producer Price Index by Commodity: All Commodities
T10YIE - 10-Year Breakeven Inflation Rate
U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
PAYEMS - All Employees, Total Nonfarm
CIVPART - Labor Force Participation Rate
EMRATIO - Employment-Population Ratio
UNEMPLOY - Unemployed
CE16OV - Employment Level
ICSA - Initial Claims
JTSJOL - Job Openings: Total Nonfarm
JTSQUR - Quits: Total Nonfarm
GDPC1 - Real Gross Domestic Product
A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
INDPRO - Industrial Production: Total Index
TCU - Capacity Utilization: Total Index
HOUST - New Privately-Owned Housing Units Started: Total Units
PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
RSAFS - Advance Retail Sales: Retail Trade
PCE - Personal Consumption Expenditures
DSPIC96 - Real Disposable Personal Income
PSAVERT - Personal Saving Rate
M2SL - M2
BOPGSTB - U.S. International Trade in Goods and Services: Balance
Latest 10-K MD&A

Extracted from a later financial-section MD&A body after the formal Item 7 span was a short reference. Confidence: high. Filing date: 2026-02-13. Report date: 2025-12-31.
Management’s discussion and analysis

The following is Management’s discussion and analysis of the financial condition and results of operations (“MD&A”) of JPMorganChase for the year ended December 31, 2025. The MD&A is included in both JPMorganChase’s Annual Report for the year ended December 31, 2025 (“Annual Report”) and its Annual Report on Form 10-K for the year ended December 31, 2025 (“2025 Form 10-K” or “Form 10-K”) filed with the Securities and Exchange Commission (“SEC”). Refer to the Glossary of terms and acronyms on pages 320–327 for definitions of terms and acronyms used throughout the Annual Report and the 2025 Form 10-K.

This Form 10-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the current beliefs and expectations of JPMorganChase’s management, speak only as of the date of this Form 10-K and are subject to significant risks and uncertainties. Refer to Forward-looking Statements on page 160 and Part 1, Item 1A: Risk Factors in this Form 10-K on pages 9–31 for a discussion of certain of those risks and uncertainties and the factors that could cause JPMorganChase’s actual results to differ materially because of those risks and uncertainties. There is no assurance that actual results will be in line with any outlook information set forth herein, and the Firm does not undertake to update any forward-looking statements.

INTRODUCTION

JPMorgan Chase & Co. (NYSE: JPM), a financial holding company incorporated under Delaware law in 1968, is a leading financial services firm based in the United States of America (“U.S.”), with operations worldwide. JPMorganChase had $4.4 trillion in assets and $362.4 billion in stockholders’ equity as of December 31, 2025. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Under the J.P. Morgan and Chase brands, the Firm serves millions of customers, predominantly in the U.S., and many of the world’s most prominent corporate, institutional and government clients globally.

JPMorganChase’s principal bank subsidiary is JPMorgan Chase Bank, National Association (“JPMorgan Chase Bank, N.A.”), a national banking association with U.S. branches in 48 states and Washington, D.C. JPMorganChase’s principal non-bank subsidiary is J.P. Morgan Securities LLC (“J.P. Morgan Securities”), a U.S. broker-dealer. The bank and non-bank subsidiaries of JPMorganChase operate nationally as well as through overseas branches and subsidiaries, representative offices and subsidiary foreign banks. The Firm’s principal operating subsidiaries outside the U.S. are J.P. Morgan Securities plc and J.P. Morgan SE (“JPMSE”), which are subsidiaries of JPMorgan Chase Bank, N.A. and are based in the United Kingdom (“U.K.”) and Germany, respectively.

For management reporting purposes, the Firm has three reportable business segments – Consumer & Community Banking (“CCB”), Commercial & Investment Bank (“CIB”) and Asset & Wealth Management (“AWM”) – with the remaining activities in Corporate. The Firm's consumer business segment is CCB, and the Firm's wholesale business segments are CIB and AWM. Refer to Business Segment & Corporate Results on pages 62–82 and Note 32 for a description of the Firm’s reportable business segments and the products and services that they provide to their respective client bases, as well as a description of Corporate activities.

The Firm’s website is www.jpmorganchase.com. JPMorganChase makes available on its website, free of charge, annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as soon as reasonably practicable after it electronically files or furnishes such material to the U.S. Securities and Exchange Commission (the “SEC”) at www.sec.gov. JPMorganChase makes new and important information about the Firm available on its website at https://www.jpmorganchase.com, including on the Investor Relations section of its website at https://www.jpmorganchase.com/ir. Information on the Firm's website, including documents on the website that are referenced in this Form 10-K, is not incorporated by reference into this 2025 Form 10-K or the Firm’s other filings with the SEC.

46

JPMorgan Chase & Co./2025 Form 10-K

EXECUTIVE OVERVIEW

This executive overview of the MD&A highlights selected information and does not contain all of the information that is important to readers of the Firm’s 2025 Form 10-K. For a complete description of the trends and uncertainties, as well as the risks and critical accounting estimates affecting the Firm, the 2025 Form 10-K should be read in its entirety.

Financial performance of JPMorganChase

Year ended December 31,

(in millions, except per share data and ratios)

2025

2024

Change

Selected income statement data

Noninterest revenue

$

87,004 

$

84,973 

2%

Net interest income

95,443 

92,583 

3

Total net revenue

182,447 

177,556 

3

Total noninterest expense

95,640 

91,797 

4

Pre-provision profit

86,807 

85,759 

1

Provision for credit losses

14,212 

10,678 

33

Net income

57,048 

58,471 

(2)

Diluted earnings per share

20.02 

19.75 

1

Selected ratios and metrics

Return on common equity

17 

%

18 

%

Return on tangible common equity

20 

22 

Book value per share

$

126.99 

$

116.07 

9

Tangible book value per share

107.56 

97.3 

11

Capital ratios - Standardized(a)(b)

CET1 capital

14.6 

%

15.7 

%

Tier 1 capital

15.5 

16.8 

Total capital

17.4 

18.5 

Memo:

NII excluding Markets(c)

$

92,591 

$

92,419 

—

NIR excluding Markets(c)

57,208 

58,167 

(2)

Markets(d)

35,782 

30,007 

19

Total net revenue - managed basis

$

185,581 

$

180,593 

3%

(a)    As of January 1, 2025, the benefit from the CECL capital transition provision had been fully phased out. For the year ended December 31, 2024, the ratios reflected the CECL capital transition provisions. Refer to Note 27 for additional information.

(b)    As of December 31, 2025, the Advanced risk-based ratios became more binding on the Firm than the Standardized risk-based ratios. Refer to Capital Risk Management on pages 89–99 for additional information.

(c)    NII and NIR refer to net interest income and noninterest revenue, respectively.

(d)    Markets consists of CIB's Fixed Income Markets and Equity Markets businesses.The Firm assesses the performance of its Markets business on a total net revenue basis, as revenues in NII generally have offsets across other revenue lines, primarily Principal transactions revenue.

Apple Card transaction: On January 7, 2026, JPMorganChase announced that Chase will become the new issuer of Apple Card. The Firm entered into a forward purchase commitment on December 30, 2025 to acquire the Apple credit card portfolio, with an expected closing in approximately 24 months (the “Apple Card transaction”).

Refer to CCB segment results on pages 65–68, Capital Risk Management on pages 89–99 and Notes 4, 13, 27 and 28 for additional information.

Comparisons noted in the sections below are for the full year of 2025 versus the full year of 2024, unless otherwise specified.

Firmwide overview

JPMorganChase reported net income of $57.0 billion for 2025, down 2%, earnings per share of $20.02, ROE of 17% and ROTCE of 20%.

•Total net revenue was $182.4 billion, up 3%, reflecting:

–Net interest income (“NII”) of $95.4 billion, up 3%, driven by higher Markets net interest income, higher revolving balances in Card Services, higher wholesale deposit balances, and the impact of investment securities activity. These factors were largely offset by deposit margin compression and the impact of lower rates. NII excluding Markets was $92.6 billion, flat when compared with the prior year.

–Noninterest revenue (“NIR”) was $87.0 billion, up 2%, reflecting higher Markets noninterest revenue, higher asset management fees in AWM and CCB, higher auto operating lease income, lower net investment securities losses in Treasury and CIO, higher Payments fees, higher investment banking fees, and a $588 million First Republic-related gain recorded in the first quarter of 2025. These increases were predominantly offset by the absence of the $7.9 billion net gain related to Visa shares recorded in the second quarter of 2024, as well as lower card income in the current year.

•Noninterest expense was $95.6 billion, up 4%, driven by higher compensation expense, including higher revenue-related compensation and growth in the number of employees. The increase in expense was also driven by higher brokerage expense and distribution fees, higher auto lease depreciation, and continued investments in technology and marketing, as well as higher occupancy expense. These factors were partially offset by FDIC special assessment accrual releases of $763 million compared with an increase of $725 million in the prior year, as well as the absence of a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024.

JPMorgan Chase & Co./2025 Form 10-K

47

•The provision for credit losses was $14.2 billion. Net charge-offs were $9.8 billion, up $1.2 billion, predominantly driven by Wholesale and Card Services. The net addition to the allowance for credit losses was $4.4 billion and consisted of $3.3 billion in consumer, which included $2.2 billion related to the Apple Card transaction, and $1.1 billion in wholesale.

In the prior year, the provision was $10.7 billion, net charge-offs were $8.6 billion and the net addition to the allowance for credit losses was $2.0 billion.

•The total allowance for credit losses was $31.2 billion at December 31, 2025. The Firm had an allowance for loan losses to retained loans coverage ratio of 1.83%, compared with 1.87% in the prior year.

Refer to Consolidated Results of Operations and Consolidated Balance Sheets Analysis on pages 51–54 and pages 55–57, respectively, for a further discussion of the Firm's results, including the provision for credit losses.

Pre-provision profit, ROTCE, TCE, TBVPS, NII and NIR excluding Markets, and total net revenue on a managed basis, are non-GAAP financial measures. Refer to Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 59–61 for a further discussion of each of these measures.

•The Firm’s nonperforming assets totaled $10.4 billion at December 31, 2025, up 11%, driven by:

–higher consumer nonaccrual loans, predominantly due to the impact of the wildfires in California in January 2025, as well as higher loans at fair value in CIB, and

–higher wholesale nonaccrual loans, reflecting downgrades to exposures in certain industries, predominantly offset by net portfolio activity and upgrades.

Refer to Wholesale Credit Portfolio and Consumer Credit Portfolio on pages 118–128 and pages 112–117, respectively, for additional information.

•Firmwide average loans of $1.4 trillion were up 6%, predominantly driven by higher loans in CIB and AWM.

•Firmwide average deposits of $2.5 trillion were up 5%, reflecting:

–net inflows related to client-driven activities in Payments and Securities Services, and

–growth in both new accounts and balances in existing accounts in AWM,

partially offset by

–a decrease in CCB primarily driven by increased customer spending.

Refer to Liquidity Risk Management on pages 100–107 for additional information.

Selected capital and other metrics

•CET1 capital was $288.5 billion, and the Standardized and Advanced CET1 ratios were 14.6% and 14.1%, respectively.

•SLR was 5.8%.

•TBVPS grew 10.5%, ending 2025 at $107.56.

•As of December 31, 2025, the Firm had eligible end-of-period High Quality Liquid Assets (“HQLA”) of approximately $915 billion and unencumbered marketable securities with a fair value of approximately $548 billion, resulting in approximately $1.5 trillion of liquidity sources.

Refer to Capital Risk Management and Liquidity Risk Management on pages 89–99 and pages 100–107, respectively, for additional information.

48

JPMorgan Chase & Co./2025 Form 10-K

Business segment highlights

Selected business metrics for each of the Firm’s lines of business (“LOB”) are presented below for the full year of 2025.

CCB

ROE 32%

•Average deposits down 1%; client investment assets up 17%

•Average loans up 1%; Card Services net charge-off rate of 3.31%

•Debit and credit card sales volume(a) up 7%

•Active mobile customers(b) up 7%

CIB

ROE 18%

•Investment Banking fees up 7%; #1 ranking for Global Investment Banking fees with 8.4% wallet share for the year

•Markets revenue up 19%, with Fixed Income Markets up 12% and Equity Markets up 33%

•Average Banking & Payments loans(c) flat; average client deposits(d) up 14%

AWM

ROE 40%

•Assets under management ("AUM") of $4.8 trillion, up 18%

•Average loans up 8%; average deposits up 4%

(a)Excludes Commercial Card.

(b)Users of all mobile platforms who have logged in within the past 90 days.

(c)On January 1, 2025, $5.6 billion of loans were realigned from Global Corporate Banking to Fixed Income Markets.

(d)Represents client deposits and other third-party liabilities pertaining to the Payments and Securities Services businesses.

Refer to the Business Segment & Corporate Results on pages 62–82 for a detailed discussion of results by business segment.

Credit provided and capital raised

JPMorganChase continues to support consumers, businesses and communities around the globe. The Firm provided new and renewed credit and raised capital for wholesale and consumer clients during 2025, consisting of approximately:

$3.3 trillion

Total credit provided and capital raised (including loans and commitments)

$280

billion

Credit for consumers

$33

billion

Credit for U.S. small businesses

$2.9 trillion

Credit and capital for corporations and non-U.S. government entities(a)

$76

 billion

Credit and capital for nonprofit and U.S. government entities(b)

(a)Includes Individuals and Individual Entities primarily consisting of Global Private Bank clients within AWM.

(b)Includes states, municipalities, hospitals and universities.

JPMorgan Chase & Co./2025 Form 10-K

49

Recent events

•On December 8, 2025, JPMorganChase announced that Todd A. Combs had resigned from the Firm’s Board of Directors and would join the Firm as the head of the Strategic Investment Group within the Firm’s Security and Resiliency Initiative.

Outlook

The statements set forth below are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the beliefs and expectations of JPMorganChase’s management, speak only as of the date on which they were made, and are subject to significant risks and uncertainties. Refer to Forward-Looking Statements on page 160 and Part I, Item 1A: Risk Factors on pages 9–31 of this Form 10-K for a further discussion of certain of those risks and uncertainties and the other factors that could cause JPMorganChase’s actual results to differ materially because of those risks and uncertainties. There is no assurance that actual results in 2026 will be in line with the outlook information set forth below, and the Firm does not undertake to update any forward-looking statements.

JPMorganChase’s outlook for full-year 2026 should be viewed against the backdrop of the global and U.S. economies, financial markets activity, the geopolitical environment, the competitive environment, client and customer activity levels, and regulatory and legislative developments in the U.S. and other countries where the Firm does business. Each of these factors will affect the performance of the Firm. The Firm will continue to make appropriate adjustments to its businesses and operations in response to ongoing developments in the business, economic, regulatory and legal environments in which it operates.

The Firm provided the following outlook information on January 13, 2026 in connection with announcing its results for the year and quarter ended December 31, 2025:

Full-year 2026

•Management expects net interest income to be approximately $103 billion and net interest income excluding Markets to be approximately $95 billion, market dependent.

•Management expects adjusted expense to be approximately $105 billion, market dependent.

•Management expects the net charge-off rate in Card Services to be approximately 3.4%.

Net interest income excluding Markets and adjusted expense are non-GAAP financial measures. Refer to Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 59–61.

50

JPMorgan Chase & Co./2025 Form 10-K

CONSOLIDATED RESULTS OF OPERATIONS

This section provides a comparative discussion of JPMorganChase’s Consolidated Results of Operations on a reported basis for the two-year period ended December 31, 2025, unless otherwise specified. Refer to Consolidated Results of Operations on pages 59-62 of the Firm’s Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Form 10-K”) for a discussion of the 2024 versus 2023 results. 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 154–157 for a discussion of the Critical Accounting Estimates Used by the Firm that affect the Consolidated Results of Operations.

Revenue

Year ended December 31,

(in millions)

2025

2024

2023

Investment banking fees

$

9,615 

$

8,910 

$

6,519 

Principal transactions

27,212 

24,787 

24,460 

Lending- and deposit-related fees

9,093 

7,606 

7,413 

Asset management fees

20,327 

17,801 

15,220 

Commissions and other fees

8,539 

7,530 

6,836 

Investment securities losses

(57)

(1,021)

(3,180)

Mortgage fees and related income

1,381 

1,401 

1,176 

Card income

4,720 

5,497 

4,784 

Other income(a)

6,174 

12,462 

(b) (c)

5,609 

(d)

Noninterest revenue

87,004 

84,973 

68,837 

Net interest income

95,443 

92,583 

89,267 

Total net revenue

$

182,447 

$

177,556 

$

158,104 

(a)Included operating lease income of $3.8 billion, $2.8 billion and $2.8 billion for the years ended December 31, 2025, 2024 and 2023, respectively. Refer to Note 6 for additional information.

(b)Effective January 1, 2024, as a result of adopting updates to the Accounting for Investments in Tax Credit Structures guidance, the amortization of certain of the Firm’s alternative energy tax-oriented investments that was previously recognized in other income is now recognized in income tax expense. Refer to Notes 1, 6, 14 and 25 for additional information.

(c)Included the net gain related to Visa shares of $7.9 billion recorded in the second quarter of 2024. Refer to Note 6 for additional information.

(d)Included the estimated bargain purchase gain of $2.8 billion for the year ended December 31, 2023 associated with the First Republic acquisition. Refer to Notes 6 and 34 for additional information.

2025 compared with 2024

Investment banking fees increased, reflecting in CIB:

•higher debt underwriting fees predominantly driven by non-investment grade loans and investment grade bonds,

•higher advisory fees benefiting from higher fees from deals in the Financial Institutions and Technology sectors, partially offset by lower fees from deals in the Media & Telecommunications sector, and

•higher equity underwriting fees primarily driven by higher revenue from IPOs.

Refer to CIB segment results on pages 69–75 and Note 6 for additional information.

Principal transactions revenue increased, reflecting in CIB:

•higher Fixed Income Markets revenue primarily driven by higher revenue in Rates and Commodities, largely offset by lower revenue in Securitized Products, Fixed Income Financing and Currencies & Emerging Markets, and

•higher Equity Markets revenue, particularly in Equity Derivatives.

The increase in CIB was partially offset by lower revenue in Treasury and CIO.

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 and Corporate results on pages 69–75 and pages 80–82, respectively, and Note 6 for additional information.

Lending- and deposit-related fees increased, reflecting:

•in CIB, a reduction in client credits applied to deposit-related fees, as well as higher cash management fees in Payments as a result of higher volume, and

•in CCB, higher deposit-related fees as a result of higher transaction volume and new accounts.

Refer to CCB and CIB segment results on pages 65–68 and pages 69–75, respectively, and Note 6 for additional information.

Asset management fees increased driven by higher average market levels in AWM and CCB, as well as net inflows in AWM and, to a lesser extent, in CCB. Refer to CCB and AWM segment results on pages 65–68 and pages 76–79, respectively, and Note 6 for additional information.

Commissions and other fees increased in CIB and AWM, predominantly due to higher brokerage commissions on higher volume and, to a lesser extent, higher custody fees as a result of higher client activity and market levels. Refer to CIB and AWM segment results on pages 69–75 and pages 76–79, respectively, and Note 6 for additional information.

JPMorgan Chase & Co./2025 Form 10-K

51

Investment securities losses decreased, reflecting lower losses on sales of securities associated with repositioning the investment securities portfolio in Treasury and CIO. The prior year net loss was primarily related to sales of U.S. GSE and government agency MBS and U.S. Treasuries. Refer to Corporate results on pages 80–82 and Note 10 for additional information.

Mortgage fees and related income: refer to Notes 6 and 15 for additional information.

Card income decreased driven by the net impact of:

•lower income in CCB, reflecting lower net interchange income, as well as an increase in amortization related to new account origination costs, partially offset by higher annual fees. Net interchange income decreased as the impact of increased debit and credit card sales volume was more than offset by higher rewards costs and partner payments, and

•higher card revenue in CIB Payments as a result of higher volume.

Refer to CCB and CIB segment results on pages 65–68 and pages 69–75, respectively, and Note 6 for additional information.

Other income decreased, reflecting:

•the absence in Corporate of the $7.9 billion net gain related to Visa shares recorded in the second quarter of 2024,

partially offset by

•higher auto operating lease income in CCB due to growth in volume,

•the $588 million First Republic-related gain recorded in the first quarter of 2025 in Corporate, and

•lower losses related to certain equity investments in CIB.

Refer to CCB and CIB segment and Corporate results on pages 65–68, pages 69–75 and pages 80–82, respectively, for additional information; Note 6 for additional information on Visa shares; and Notes 6 and 34 for additional information on the First Republic acquisition.

Net interest income increased driven by higher Markets net interest income, higher revolving balances in Card Services, higher wholesale deposit balances, and the impact of investment securities activity. These factors were largely offset by deposit margin compression and the impact of lower rates.

The Firm’s average interest-earning assets were $3.8 trillion, up $297 billion, and the yield was 5.05%, down 45 bps. The net yield on these assets, on an FTE basis, was 2.50%, a decrease of 13 bps. The net yield excluding Markets was 3.75%, a decrease of 9 bps, when compared to the prior year.

Refer to the Consolidated average balance sheets, interest and rates schedule on pages 315–319 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 59–61 for an additional discussion of net yield excluding Markets.

52

JPMorgan Chase & Co./2025 Form 10-K

Provision for credit losses

Year ended December 31,

(in millions)

2025

2024

2023

Consumer, excluding credit card

$

693 

$

631 

$

935 

Credit card

10,829 

9,292 

6,048 

Total consumer

11,522 

9,923 

6,983 

Wholesale

2,718 

731 

2,299 

Investment securities

(28)

24 

38 

Total provision for credit losses

$

14,212 

$

10,678 

$

9,320 

2025 compared with 2024

The provision for credit losses was $14.2 billion. Net charge-offs were $9.8 billion and the net addition to the allowance for credit losses was $4.4 billion.

The provision for credit losses included:

•$11.5 billion in consumer, consisting of net charge-offs of $8.3 billion, predominantly driven by Card Services, reflecting loan growth, and a net addition to the allowance for credit losses of $3.3 billion which was driven by $2.2 billion related to the Apple Card transaction, loan growth in Card Services and the impact of changes in the Firm's weighted-average macroeconomic outlook, partially offset by reduced borrower uncertainty, and

•$2.7 billion in wholesale, driven by net increases in the loan and lending-related commitment portfolios, net changes in credit quality of client-specific exposures, an update to loss assumptions on certain leveraged loans, and estimated losses related to borrower fraud in certain secured lending facilities, partially offset by the impact of changes in the Firm's weighted-average macroeconomic outlook. Net charge-offs were $1.6 billion and the net addition to the allowance for credit losses was $1.1 billion.

In the prior year, the provision was $10.7 billion, net charge-offs were $8.6 billion and the net addition to the allowance for credit losses was $2.0 billion.

Refer to CCB, CIB and AWM segment and Corporate results on pages 65–68, pages 69–75, pages 76–79, and pages 80–82, respectively; Allowance for Credit Losses on pages 129–131; Critical Accounting Estimates Used by the Firm on pages 154–157; and Notes 12 and 13 for additional information on the credit portfolio and the allowance for credit losses.

JPMorgan Chase & Co./2025 Form 10-K

53

Noninterest expense

Year ended December 31,

(in millions)

2025

2024

2023

Compensation expense

$

54,487 

$

51,357 

$

46,465 

Noncompensation expense:

Occupancy

5,461 

5,026 

4,590 

Technology, communications and equipment(a)

11,029 

9,831 

9,246 

Professional and outside services

12,356 

11,057 

10,235 

Marketing

5,531 

4,974 

4,591 

Other expense

6,776 

9,552 

(c)

12,045 

Total noncompensation expense

41,153 

40,440 

40,707 

Total noninterest expense

$

95,640 

$

91,797 

$

87,172 

Certain components of other expense(b)

Legal expense

$

361 

$

740 

$

1,436 

FDIC-related expense

531 

1,893 

4,203 

Operating losses

1,292 

1,417 

1,228 

(a)Includes depreciation expense associated with auto operating lease assets. Refer to Note 18 for additional information.

(b)Refer to Note 6 for additional information.

(c)Included a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024. Refer to Note 6 for additional information.

2025 compared with 2024

Compensation expense increased driven by:

•growth in the number of employees, primarily front office employees, and

•higher revenue-related compensation, predominantly in CIB and AWM.

Noncompensation expense increased, primarily reflecting:

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

•higher depreciation expense on higher auto operating lease assets in CCB,

•higher investments in technology across the LOBs and Corporate and in marketing in CCB, and

•higher occupancy expense, reflecting net additions and improvements to the Firm’s properties, including its new headquarters, bank branches and other corporate offices,

partially offset by

•lower FDIC-related expense driven by releases of FDIC special assessment accruals of $763 million in Corporate, compared with an accrual increase of $725 million in the first quarter of the prior year, and

•the absence in Corporate of the following items recorded in the prior year

–a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation, and

–restructuring and integration costs associated with First Republic.

Refer to Note 6 for additional information on FDIC-related expense and Visa shares, and Note 34 for additional information on the First Republic acquisition.

Income tax expense

Year ended December 31,

(in millions, except rate)

2025

2024

2023

Income before income tax expense

$

72,595

$

75,081

$

61,612

Income tax expense

15,547

16,610

(a)

12,060

Effective tax rate

21.4 

%

22.1 

%

19.6 

%

(a)Effective January 1, 2024, as a result of adopting updates to the Accounting for Investments in Tax Credit Structures guidance, the amortization of certain of the Firm’s alternative energy tax-oriented investments is now recognized in income tax expense. Refer to Notes 1, 6, 14 and 25 for additional information.

2025 compared with 2024

The effective tax rate decreased driven by:

•a $774 million income tax benefit in Corporate recorded in the second quarter of 2025, driven by the resolution of certain tax audits and the impact of tax regulations related to foreign currency translation gains and losses finalized in 2024 and effective for 2025, and

•higher tax benefits related to the vesting of employee share-based awards,

partially offset by

•other changes in the level and mix of income and expenses subject to U.S. federal, state and local taxes, and

•lower benefits associated with other tax audits.

Refer to Note 25 for additional information.

54

JPMorgan Chase & Co./2025 Form 10-K

CONSOLIDATED BALANCE SHEETS AND CASH FLOWS ANALYSIS

Consolidated balance sheets analysis

The following is a discussion of the significant changes between December 31, 2025 and 2024. Refer to pages 154–157 for a discussion of the Critical Accounting Estimates Used by the Firm that affect the Consolidated Balance Sheets.

Selected Consolidated balance sheets data

December 31, (in millions)

2025

2024

Change

Assets

Cash and due from banks

$

21,742 

$

23,372 

(7)

%

Deposits with banks

321,596 

445,945 

(28)

Federal funds sold and securities purchased under resale agreements

336,426 

295,001 

14 

Securities borrowed

286,191 

219,546 

30 

Trading assets

802,873 

637,784 

26 

Available-for-sale securities

507,198 

406,852 

25 

Held-to-maturity securities

270,134 

274,468 

(2)

Investment securities, net of allowance for credit losses

777,332 

681,320 

14 

Loans

1,493,429 

1,347,988 

11 

Allowance for loan losses

(25,765)

(24,345)

6 

Loans, net of allowance for loan losses

1,467,664 

1,323,643 

11 

Accrued interest and accounts receivable

111,599 

101,223 

10 

Premises and equipment

36,244 

32,223 

12 

Goodwill, MSRs and other intangible assets

64,458 

64,560 

— 

Other assets

198,775 

178,197 

12 

Total assets

$

4,424,900 

$

4,002,814 

11 

%

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

Federal funds sold and securities purchased under resale agreements increased driven by Markets, reflecting the impact of lower levels of netting, higher collateral requirements and higher demand for securities to cover short positions.

Securities borrowed increased driven by Markets, reflecting higher client-driven activities and higher demand for securities to cover short positions.

Refer to Note 11 for additional information on securities purchased under resale agreements and securities borrowed.

Trading assets increased predominantly driven by Markets, due to higher levels of debt instruments, partially offset by lower levels of equity instruments, both related to client-driven market-making activities. Refer to Notes 2 and 5 for additional information.

Investment securities increased. Excluding a non-cash transfer in the third quarter of 2025 of $44.1 billion of securities from available-for-sale ("AFS") to held-to-maturity (“HTM”) for asset-liability management purposes,

•AFS securities increased driven by net purchases, predominantly U.S. Treasuries and non-U.S. government debt securities, partially offset by maturities and paydowns; and

•HTM securities decreased driven by maturities and paydowns.

Refer to Corporate results on pages 80–82, Investment Portfolio Risk Management on page 132, and Notes 2 and 10 for additional information.

Loans increased, reflecting:

•higher wholesale loans, predominantly in Markets associated with higher client demand,

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

•higher outstanding balances in Card Services driven by growth in new accounts and higher revolving balances,

partially offset by

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

The allowance for loan losses increased, reflecting a net addition to the allowance for loan losses of $1.4 billion, and consisted of:

JPMorgan Chase & Co./2025 Form 10-K

55

•$1.1 billion in consumer, driven by loan growth in Card Services and the impact of changes in the Firm's weighted-average macroeconomic outlook, partially offset by reduced borrower uncertainty, and

•$350 million in wholesale, driven by a net increase in the loan portfolio, an update to loss assumptions on certain leveraged loans, and net changes in credit quality of client-specific exposures, partially offset by a reduction due to the impact of charge-offs and changes in the Firm's weighted-average macroeconomic outlook.

There was also a $3.0 billion net addition to the allowance for lending-related commitments recognized in other liabilities on the Consolidated balance sheets. The net addition was predominantly driven by $2.2 billion related to the Apple Card transaction and the impact of new lending-related commitments.

Refer to Consolidated Results of Operations and Credit and Investment Risk Management on pages 51–54 and pages 109–132, respectively, Critical Accounting Estimates Used by the Firm on pages 154–157, and Notes 2, 3, 12 and 13 for additional information on loans and the total allowance for credit losses.

Accrued interest and accounts receivable increased predominantly due to higher client-driven activities in Markets.

Premises and equipment increased, reflecting the impact of net additions and improvements to the Firm’s properties, including its new headquarters, bank branches and other corporate offices. Refer to Notes 16 and 18 for additional information.

Goodwill, MSRs and other intangibles: Refer to Note 15 for additional information.

Other assets increased predominantly due to higher cash collateral placed with counterparties in Markets, and higher auto operating lease assets in CCB.

Selected Consolidated balance sheets data (continued)

December 31, (in millions)

2025

2024

Change

Liabilities

Deposits

$

2,559,320 

$

2,406,032 

6 

%

Federal funds purchased and securities loaned or sold under repurchase agreements

442,396 

296,835 

49 

Short-term borrowings

64,776 

52,893 

22 

Trading liabilities

216,019 

192,883 

12 

Accounts payable and other liabilities

316,794 

280,672 

13 

Beneficial interests issued by consolidated variable interest entities (“VIEs”)

27,951 

27,323 

2 

Long-term debt

435,206 

401,418 

8 

Total liabilities

4,062,462 

3,658,056 

11 

Stockholders’ equity

362,438 

344,758 

5 

Total liabilities and stockholders’ equity

$

4,424,900 

$

4,002,814 

11 

%

Deposits increased, reflecting:

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

•an increase in CCB primarily driven by new accounts, predominantly offset by increased customer spending, and

•an increase in AWM primarily driven by growth in both new accounts and balances in existing accounts, including the impact of higher-yielding product offerings, largely offset by migration into other investment products.

Federal funds purchased and securities loaned or sold under repurchase agreements increased driven by Markets, primarily reflecting higher secured financing of trading assets.

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

Refer to Liquidity Risk Management on pages 100–107 for additional information on deposits, federal funds purchased and securities loaned or sold under repurchase agreements, and short-term borrowings; Notes 2 and 17 for deposits; and Note 11 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 5 for additional information.

Accounts payable and other liabilities increased predominantly due to higher brokerage payables related to client-driven activities in Markets. Refer to Note 19 for additional information on accounts payable.

56

JPMorgan Chase & Co./2025 Form 10-K

Beneficial interests issued by consolidated VIEs: Refer to Liquidity Risk Management on pages 100–107; and Notes 14 and 28 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 and an increase in the fair value of such instruments, as well as net issuances of long-term debt in Treasury and CIO, partially offset by a net reduction in Federal Home Loan Bank ("FHLB") advances. Refer to Liquidity Risk Management on pages 100–107 for additional information.

Stockholders’ equity increased, reflecting:

•net income, and

•net unrealized gains in AOCI in Treasury and CIO, driven by the impact of lower interest rates on AFS securities and cash flow hedges, and spreads tightening on AFS securities,

largely offset by

•the impact of capital actions, including net repurchases of common shares and dividend payments on common and preferred stock.

Refer to Consolidated Statements of changes in stockholders’ equity on page 168, Capital Actions on page 97, and Note 24 for additional information.

JPMorgan Chase & Co./2025 Form 10-K

57

Consolidated cash flows analysis

The following is a discussion of cash flow activities during the years ended December 31, 2025 and 2024. Refer to Consolidated cash flows analysis on page 66 of the Firm’s 2024 Form 10-K for a discussion of the 2023 activities.

(in millions)

Year ended December 31,

2025

2024

2023

Net cash provided by/

(used in)

Operating activities

$

(147,782)

$

(42,012)

$

12,974 

Investing activities

(265,565)

(163,403)

67,643 

Financing activities

269,533 

63,447 

(25,571)

Effect of exchange rate changes on cash

17,835 

(12,866)

1,871 

Net increase/(decrease) in cash and due from banks and deposits with banks

$

(125,979)

$

(154,834)

$

56,917 

Operating activities

JPMorganChase’s operating assets and liabilities primarily support the Firm’s lending and capital markets activities. These assets and liabilities can vary significantly in the normal course of business due to the amount and timing of cash flows, which are affected by client-driven and risk management activities and market conditions. The Firm believes that cash flows from operations, available cash and other liquidity sources, and its capacity to generate cash through secured and unsecured sources, are sufficient to meet its operating liquidity needs.

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

•In 2024, cash used resulted from higher trading assets and higher securities borrowed, largely offset by net income excluding non-cash adjustments.

Investing activities

The Firm’s investing activities predominantly include originating held-for-investment loans, and investing in the investment securities portfolio and other short-term instruments.

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

•In 2024, cash used resulted from net purchases of investment securities, net loan originations and higher securities purchased under resale agreements, partially offset by proceeds from sales and securitizations of loans held-for-investment.

Financing activities

The Firm’s financing activities include acquiring customer deposits and issuing long-term debt and preferred stock.

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

•In 2024, cash provided primarily reflected higher securities loaned or sold under repurchase agreements and net proceeds from long- and short-term borrowings, partially offset by 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 55–57, Capital Risk Management on pages 89–99, and Liquidity Risk Management on pages 100–107, and the Consolidated Statements of Cash Flows on page 169 for a further discussion of the activities affecting the Firm’s cash flows.

58

JPMorgan Chase & Co./2025 Form 10-K

EXPLANATION AND RECONCILIATION OF THE FIRM’S USE OF NON-GAAP FINANCIAL MEASURES

Non-GAAP financial measures

The Firm prepares its Consolidated Financial Statements in accordance with U.S. GAAP; these financial statements appear on pages 165–169. That presentation, which is referred to as “reported” basis, provides the reader with an understanding of the Firm’s results that can be tracked consistently from year-to-year and enables a comparison of the Firm’s performance with the U.S. GAAP financial statements of other companies.

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 as a whole, and for each of the reportable business segments and Corporate, on an 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 from year-to-year 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 each of the lines of business and Corporate.

Management also uses certain non-GAAP financial measures at the Firm and business-segment levels because these other non-GAAP financial measures provide information to investors about the underlying operational performance and trends of the Firm or of the particular business segment, as the case may be, and therefore facilitate a comparison of the Firm or the business segment with the performance of its relevant competitors. Refer to Business Segment & Corporate Results on pages 62–82 for additional information on these non-GAAP measures. Non-GAAP financial measures used by the Firm may not be comparable to similarly named non-GAAP financial measures used by other companies.

The following summary table provides a reconciliation from the Firm’s reported U.S. GAAP results to managed basis.

2025

2024

2023

Year ended

December 31,

(in millions, except ratios)

Reported

Fully taxable-equivalent adjustments(a)

Managed

basis

Reported

Fully taxable-equivalent adjustments(a)

Managed

basis

Reported

Fully taxable-equivalent adjustments(a)

Managed

basis

Other income

$

6,174 

$

2,709 

$

8,883 

$

12,462 

(b)

$

2,560 

(b)

$

15,022 

$

5,609 

$

3,782 

$

9,391 

Total noninterest revenue

87,004 

2,709 

89,713 

84,973 

2,560 

87,533 

68,837 

3,782 

72,619 

Net interest income

95,443 

425 

95,868 

92,583 

477 

93,060 

89,267 

480 

89,747 

Total net revenue

182,447 

3,134 

185,581 

177,556 

3,037 

180,593 

158,104 

4,262 

162,366 

Total noninterest expense

95,640 

NA

95,640 

91,797 

NA

91,797 

87,172 

NA

87,172 

Pre-provision profit

86,807 

3,134 

89,941 

85,759 

3,037 

88,796 

70,932 

4,262 

75,194 

Provision for credit losses

14,212 

NA

14,212 

10,678 

NA

10,678 

9,320 

NA

9,320 

Income before income tax expense

72,595 

3,134 

75,729 

75,081 

3,037 

78,118 

61,612 

4,262 

65,874 

Income tax expense

15,547 

3,134 

18,681 

16,610 

(b)

3,037 

(b)

19,647 

12,060 

4,262 

16,322 

Net income

$

57,048 

NA

$

57,048 

$

58,471 

NA

$

58,471 

$

49,552 

NA

$

49,552 

Overhead ratio

52 

%

NM

52 

%

52 

%

NM

51 

%

55 

%

NM

54 

%

(a)For other income, recognized in CIB, and for net interest income, predominantly recognized in CIB and Corporate.

(b)Effective January 1, 2024, the Firm adopted updates to the Accounting for Investments in Tax Credit Structures guidance, under the modified retrospective method. Refer to Notes 1, 6, 14 and 25 for additional information.

JPMorgan Chase & Co./2025 Form 10-K

59

Net interest income, net yield, and noninterest revenue excluding Markets

In addition to reviewing net interest income, net yield, and noninterest revenue on a managed basis, management also reviews these metrics excluding Markets, as shown below. Markets consists of CIB’s Fixed Income Markets and Equity Markets. These metrics, which exclude Markets, are non-GAAP financial measures. Management reviews these metrics to assess the performance of the Firm’s lending, investing (including asset-liability management) and deposit-raising activities, apart from any volatility associated with Markets activities. In addition, management also assesses Markets business performance on a total revenue basis as offsets may occur across revenue lines. Management believes that these measures provide investors and analysts with alternative measures to analyze the revenue trends of the Firm.

Year ended December 31,

(in millions, except rates)

2025

2024

2023

Net interest income – reported(a)

$

95,443 

$

92,583 

$

89,267 

Fully taxable-equivalent adjustments

425 

477 

480 

Net interest income – managed basis

$

95,868 

$

93,060 

$

89,747 

Less: Markets net interest income(b)

3,277 

641 

(294)

Net interest income excluding Markets

$

92,591 

$

92,419 

$

90,041 

Average interest-earning assets(a)

$

3,834,359 

$

3,537,567 

$

3,325,708 

Less: Average Markets interest-earning assets(b)

1,363,174 

1,128,153 

985,777 

Average interest-earning assets excluding Markets

$

2,471,185 

$

2,409,414 

$

2,339,931 

Net yield on average interest-earning assets – managed basis

2.50 

%

2.63 

%

2.70 

%

Net yield on average Markets interest-earning assets(b)

0.24 

0.06 

(0.03)

Net yield on average interest-earning assets excluding Markets

3.75 

%

3.84 

%

3.85 

%

Noninterest revenue – reported

$

87,004 

$

84,973 

(c)

$

68,837 

Fully taxable-equivalent adjustments

2,709 

2,560 

(c)

3,782 

Noninterest revenue – managed basis

$

89,713 

$

87,533 

$

72,619 

Less: Markets noninterest revenue(b)

32,505 

29,366 

28,258 

Noninterest revenue excluding Markets

$

57,208 

$

58,167 

$

44,361 

Memo: Total Markets net revenue(b)

$

35,782 

$

30,007 

$

27,964 

(a)Includes the effect of derivatives that qualify for hedge accounting. Taxable-equivalent amounts are used where applicable. Refer to Note 5 for additional information on hedge accounting.

(b)Refer to pages 73-74 for further information on Markets.

(c)Effective January 1, 2024, the Firm adopted updates to the Accounting for Investment in Tax Credit Stricture guidance, under the modified retrospective method. Refer to Notes 1, 6, 14 and 25 for additional information.

Calculation of certain U.S. GAAP and non-GAAP financial measures

Certain U.S. GAAP and non-GAAP financial measures are calculated as follows:

Book value per share (“BVPS”)

Common stockholders’ equity at period-end /

Common shares at period-end

Overhead ratio

Total noninterest expense / Total net revenue

ROA

Reported net income / Total average assets

ROE

Net income* / Average common stockholders’ equity

ROTCE

Net income* / Average tangible common equity

TBVPS

Tangible common equity at period-end / Common shares at period-end

* Represents net income applicable to common equity

In addition, the Firm reviews other non-GAAP measures such as:

•Adjusted expense, which represents noninterest expense excluding Firmwide legal expense, and

•Pre-provision profit, which represents total net revenue less total noninterest expense.

Management believes that these measures help investors to understand the effect of these items on reported results and provide an alternative presentation of the Firm’s performance.

60

JPMorgan Chase & Co./2025 Form 10-K

TCE, ROTCE and TBVPS

TCE, ROTCE and 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. 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. TCE, ROTCE and TBVPS are utilized by the Firm, as well as investors and analysts, in assessing the Firm’s use of equity.

The following summary table provides a reconciliation from the Firm’s common stockholders’ equity to TCE.

Period-end

Average

Dec 31,

2025

Dec 31,

2024

Year ended December 31,

(in millions, except per share and ratio data)

2025

2024

2023

Common stockholders’ equity

$

342,393 

$

324,708 

$

332,754 

$

312,370 

$

282,056 

Less: Goodwill

52,731 

52,565 

52,677 

52,627 

52,258 

Less: Other intangible assets

2,560 

2,874 

2,706 

3,042 

2,572 

Add: Certain deferred tax liabilities(a)

2,916 

2,943 

2,921 

2,970 

2,883 

Tangible common equity

$

290,018 

$

272,212 

$

280,292 

$

259,671 

$

230,109 

Return on tangible common equity

NA

NA

20 

%

22 

%

21 

%

Tangible book value per share

$

107.56 

$

97.30 

NA

NA

NA

(a)Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in nontaxable transactions, which are netted against goodwill and other intangibles when calculating TCE.

JPMorgan Chase & Co./2025 Form 10-K

61

BUSINESS SEGMENT & CORPORATE RESULTS

The Firm is managed on an LOB basis. The Firm has three reportable business segments – Consumer & Community Banking, Commercial & Investment Bank, and Asset & Wealth Management – with the remaining activities in Corporate.

The business segments are determined based on the products and services provided, or the type of customers and clients served, and they reflect the manner in which financial information is evaluated by the Firm’s Operating Committee, whose members act collectively as the Firm’s chief operating decision maker. Segment results are presented on a managed basis. Refer to Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures, on pages 59–61 for a definition of managed basis.

The following table depicts the Firm’s reportable business segments.

Description of business segment reporting methodology

Results of the reportable business segments are intended to present each segment as if it were a stand-alone business. The management reporting process that derives business segment results includes the allocation of certain income and expense items. The Firm periodically assesses the assumptions, methodologies and reporting classifications used for segment reporting, and therefore further refinements may be implemented in future periods. The Firm also assesses the level of capital required for each LOB on at least an annual basis. The Firm’s LOBs also provide various business metrics which are utilized by the Firm and its investors and analysts in assessing performance.

Revenue sharing

When business segments or businesses within each segment join efforts to sell products and services to the Firm’s clients and customers, the participating businesses may agree to share revenue from those transactions. Revenue is generally recognized in the segment responsible for the related product or service, with allocations to the other segments or businesses involved in the transaction. The segment and business results reflect these revenue-sharing agreements.

Expense allocation

Where business segments use services provided by Corporate support units, or another business segment, the costs of those services are allocated to the respective business segments. The expense is generally allocated based on the actual cost and use of services provided. In contrast, certain costs and investments related to Corporate that are not currently utilized by any LOB are not allocated to the business segments and are retained in Corporate. Expense retained in Corporate generally includes costs that would not be incurred if the segments were stand-alone businesses, and other items not solely aligned with a particular reportable business segment.

62

JPMorgan Chase & Co./2025 Form 10-K

Funds transfer pricing

Funds transfer pricing (“FTP”) is the process by which the Firm allocates interest income and expense to the LOBs and Other Corporate and transfers the primary interest rate risk and liquidity risk to Treasury and CIO.

The funds transfer pricing process considers the interest rate and liquidity risk characteristics of assets and liabilities and off-balance sheet products. Periodically, the methodology and assumptions utilized in the FTP process are adjusted to reflect economic conditions and other factors, which may impact the allocation of net interest income to the segments. Effective in the fourth quarter of 2024, the Firm updated its FTP with respect to consumer deposits, which resulted in an increase in the funding benefit reflected within CCB’s net interest income that is fully offset in Corporate, with no effect on the Firm’s net interest income.

As a result of lower average interest rates in the current year, the cost of funding for assets and the funding benefit earned for liabilities generally decreased compared with the prior year. During the period ended December 31, 2025, this resulted in a lower cost of funds for loans and Markets activities. In addition, the FTP benefit for deposits generally decreased more than the decrease in rates paid to deposit holders during the year, resulting in an overall deposit margin compression.

Foreign exchange risk

Foreign exchange risk is transferred from the LOBs and Other Corporate to Treasury and CIO for certain revenues and expenses. Treasury and CIO manages these risks centrally and reports the impact of foreign exchange rate movements related to the transferred risk in its results. Refer to Market Risk Management on page 142 for additional information.

Debt expense and preferred stock dividend allocation

As part of the FTP process, almost all of the cost of the credit spread component of outstanding unsecured long-term debt and preferred stock dividends is allocated to the reportable business segments, while the balance of the cost is retained in Corporate. The methodology to allocate the cost of unsecured long-term debt and preferred stock dividends to the business segments is aligned with the relevant regulatory capital requirements and funding needs of the LOBs, as applicable. The allocated cost of unsecured long-term debt is included in a business segment’s net interest income, and net income is reduced by preferred stock dividends, to arrive at a business segment’s net income applicable to common equity. Refer to Capital Risk Management on pages 89–99 for additional information.

Capital allocation

The amount of capital assigned to each LOB and Corporate is referred to as equity. The Firm’s current equity allocation methodology incorporates Basel III Standardized risk-weighted assets (“RWA”) and the global systemically important banks (“GSIB”) surcharge, both under rules currently in effect, as well as a simulation of capital depletion in a severe stress environment. At least annually, the assumptions, judgments and methodologies used to allocate capital are reassessed and, as a result, the capital allocated to the LOBs and Corporate may change. Refer to Line of business and Corporate equity on page 96 for additional information on capital allocation.

JPMorgan Chase & Co./2025 Form 10-K

63

Segment & Corporate Results – Managed Basis

The following tables summarize the Firm’s results by business segments and Corporate for the periods indicated.

Year ended December 31,

Consumer & Community Banking

Commercial & Investment Bank

Asset & Wealth Management

(in millions, except ratios)

2025

2024

2023

2025

2024

2023

2025

2024

2023

Total net revenue

$

76,029

$

71,507

$

70,148

$

78,454 

$

70,114

$

64,353

$

24,073 

$

21,578

$

19,827

Total noninterest expense

40,267

38,036

34,819

38,216 

35,353

33,972

15,332 

14,414

12,780

Pre-provision profit

35,762

33,471

35,329

40,238 

34,761

30,381

8,741 

7,164

7,047

Provision for credit losses

11,493

(a)

9,974

6,899

2,615 

762

2,091

97 

(68)

159

Net income

18,245

17,603

21,232

27,761 

24,846

20,272

6,522 

5,421

5,227

Return on equity (“ROE”)

32 

%

32 

%

38 

%

18 

%

18 

%

14 

%

40 

%

34 

%

31 

%

Year ended December 31,

Corporate

Total

(in millions, except ratios)

2025

2024

2023

2025

2024

2023

Total net revenue

$

7,025

$

17,394

(b)

$

8,038

$

185,581

$

180,593

(b)

$

162,366

Total noninterest expense

1,825

3,994

(c)

5,601

95,640

91,797

(c)

87,172

Pre-provision profit

5,200

13,400

2,437

89,941

88,796

75,194

Provision for credit losses

7

10

171

14,212

10,678

9,320

Net income

4,520

10,601

2,821

57,048

58,471

49,552

Return on equity (“ROE”)

 NM

 NM

NM

17 

%

18 

%

17 

%

(a)Includes a provision for lending-related commitments of $2.2 billion related to the Apple Card transaction.

(b)Included the net gain related to Visa shares of $7.9 billion recorded in the second quarter of 2024. Refer to Note 6 for additional information.

(c)Included a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024. Refer to Note 6 for additional information.

Refer to Note 32 for further details on total net revenue and total noninterest expense.

The following sections provide a comparative discussion of the Firm’s results by business segments and Corporate as of or for the years ended December 31, 2025 and 2024, unless otherwise specified.

64

JPMorgan Chase & Co./2025 Form 10-K

CONSUMER & COMMUNITY BANKING

Consumer & Community Banking offers products and services to consumers and small businesses through bank branches, ATMs, digital (including mobile and online) and telephone banking. CCB is organized into Banking & Wealth Management (including Consumer Banking, Business Banking and J.P. Morgan Wealth Management), Home Lending (including Home Lending Production, Home Lending Servicing and Real Estate Portfolios) and Card Services & Auto. Banking & Wealth Management offers deposit, investment and lending products, cash management, payments and services. Home Lending includes mortgage origination and servicing activities, as well as portfolios consisting of residential mortgages and home equity loans. Card Services issues credit cards and offers payment solutions, travel services, merchant offers and lifestyle benefits. Auto originates and services auto loans and leases.

Selected income statement data

Year ended December 31, (in millions, except ratios)

2025

2024

2023

Revenue

Lending- and deposit-related fees

$

3,669 

$

3,387 

$

3,356 

Asset management fees

4,669 

4,014 

3,282 

Mortgage fees and related income

1,326 

1,378 

1,175 

Card income

2,230 

3,139 

2,532 

All other income(a)

5,901 

4,731 

4,773 

Noninterest revenue

17,795 

16,649 

15,118 

Net interest income

58,234 

54,858 

55,030 

Total net revenue

76,029 

71,507 

70,148 

Provision for credit losses

11,493 

(d)

9,974 

6,899 

Noninterest expense

Compensation expense

17,669 

17,045 

15,171 

Noncompensation expense(b)

22,598 

20,991 

19,648 

Total noninterest expense

40,267 

38,036 

34,819 

Income before income tax expense

24,269 

23,497 

28,430 

Income tax expense

6,024 

5,894 

7,198 

Net income

$

18,245 

$

17,603 

$

21,232 

Revenue by business

Banking & Wealth Management

$

42,862 

$

40,943 

$

43,199 

Home Lending

4,966 

5,097 

4,140 

Card Services & Auto

28,201 

25,467 

22,809 

Mortgage fees and related income details:

Production revenue

622 

627 

421 

Net mortgage servicing

  revenue(c)

704 

751 

754 

Mortgage fees and related income

$

1,326 

$

1,378 

$

1,175 

Financial ratios

Return on equity

32 

%

32 

%

38 

%

Overhead ratio

53 

53 

50 

(a)Primarily includes operating lease income and commissions and other fees. Operating lease income was $3.8 billion, $2.8 billion and $2.8 billion for the years ended December 31, 2025, 2024 and 2023, respectively.

(b)Included depreciation expense on leased assets of $2.4 billion, $1.7 billion and $1.7 billion for the years ended December 31, 2025, 2024 and 2023, respectively.

(c)Included MSR risk management results of $118 million, $159 million and $131 million for the years ended December 31, 2025, 2024 and 2023, respectively.

(d)Includes a provision for lending-related commitments of $2.2 billion related to the Apple Card transaction.

JPMorgan Chase & Co./2025 Form 10-K

65

2025 compared with 2024

Net income was $18.2 billion, up 4%.

Net revenue was $76.0 billion, up 6%.

Net interest income was $58.2 billion, up 6%, reflecting:

•higher NII in Card Services, predominantly driven by higher revolving balances, and

•higher NII in Banking & Wealth Management (“BWM”), driven by higher deposit margin, reflecting the impact of changes in FTP, partially offset by lower average deposit balances.

Refer to Business Segment & Corporate Results on page 63 for additional information on FTP.

Noninterest revenue was $17.8 billion, up 7%, driven by:

•higher auto operating lease income as a result of growth in volume, and

•in BWM, higher asset management fees, reflecting higher average market levels and net inflows, as well as higher deposit-related fees as a result of higher transaction volume and new accounts,

partially offset by

•lower card income, reflecting lower net interchange, as well as an increase in amortization related to new account origination costs, partially offset by higher annual fees. Net interchange decreased as the impact of increased debit and credit card sales volume was more than offset by higher rewards costs and partner payments.

Refer to Note 6 for additional information on card income, asset management fees, and deposit-related fees; and Critical Accounting Estimates on pages 154–157 for additional information on the credit card rewards liability.

Noninterest expense was $40.3 billion, up 6%, reflecting:

•higher noncompensation expense, predominantly driven by higher auto lease depreciation on higher auto operating lease assets, and continued investments in marketing and technology, as well as

•higher compensation expense, predominantly for bankers and advisors, and employees in technology.

The provision for credit losses was $11.5 billion. Net charge-offs were $8.2 billion, up $319 million, primarily driven by Card Services, reflecting loan growth. The net addition to the allowance for credit losses of $3.2 billion which was driven by $2.2 billion related to the Apple Card transaction, loan growth in Card Services and the impact of changes in the Firm's weighted-average macroeconomic outlook, partially offset by reduced borrower uncertainty.

In the prior year, the provision was $10.0 billion, net charge-offs were $7.9 billion and the net addition to the allowance for credit losses was $2.0 billion.

Refer to Credit and Investment Risk Management on pages 109–132 and Allowance for Credit Losses on pages 129–131 for a further discussion of the credit portfolios and the allowance for credit losses.

66

JPMorgan Chase & Co./2025 Form 10-K

Selected metrics

As of or for the year ended

December 31,

(in millions, except employees)

2025

2024

2023

Selected balance sheet data (period-end)

Total assets

$

664,669 

$

650,268 

$

642,951 

Loans:

Banking & Wealth Management

33,005 

33,221 

31,142 

Home Lending(a)

240,724 

246,498 

259,181 

Card Services

247,753 

233,016 

211,175 

Auto

70,585 

73,619 

77,705 

Total loans

592,067 

586,354 

579,203 

Deposits(b)

1,072,792 

1,056,652 

1,094,738 

Equity

56,000 

54,500 

55,500 

Selected balance sheet data (average)

Total assets

$

646,820 

$

631,648 

$

584,367 

Loans:

Banking & Wealth Management

33,241 

31,544 

30,142 

Home Lending(b)

242,595 

252,542 

232,115 

Card Services

231,720 

214,139 

191,424 

Auto

71,359 

75,009 

72,674 

Total loans

578,915 

573,234 

526,355 

Deposits

1,057,232 

1,064,215 

1,126,552 

Equity

56,000 

54,500 

54,349 

Employees

144,196 

(c)

144,989 

141,640 

(a)At December 31, 2025, 2024 and 2023, Home Lending loans held-for-sale and loans at fair value were $11.0 billion, $8.1 billion and $3.4 billion, respectively.

(b)Average Home Lending loans held-for-sale and loans at fair value were $9.5 billion, $7.1 billion and $4.8 billion for the years ended December 31, 2025, 2024 and 2023, respectively.

(c)In the first quarter of 2025, 419 employees were transferred to Corporate as a result of the centralization of certain functions.

Selected metrics

As of or for the year ended

December 31,

(in millions, except ratio data)

2025

2024

2023

Credit data and quality statistics

Nonaccrual loans(a)

$

3,484 

$

3,366 

$

3,740 

Net charge-offs/(recoveries)

Banking & Wealth Management

356 

442 

340 

Home Lending

(122)

(106)

(56)

Card Services

7,678 

7,148 

4,699 

Auto

335 

444 

357 

Total net charge-offs/(recoveries)

$

8,247 

$

7,928 

$

5,340 

Net charge-off/(recovery) rate

Banking & Wealth Management

1.07 

%

1.40 

%

1.13 

%

Home Lending

(0.05)

(0.04)

(0.02)

Card Services

3.31 

3.34 

2.45 

Auto

0.47 

0.59 

0.49 

Total net charge-off/(recovery) rate

1.45 

%

1.40 

%

1.02 

%

30+ day delinquency rate

Home Lending(b)

0.86 

%

0.78 

%

0.66 

%

Card Services

2.16 

2.17 

2.14 

Auto

1.33 

1.43 

1.19 

90+ day delinquency rate - Card Services

1.10 

%

1.14 

%

1.05 

%

Allowance for credit losses:

Allowance for loan losses

Banking & Wealth Management

$

765 

$

764 

$

685 

Home Lending

647 

447 

578 

Card Services

15,558 

14,608 

12,453 

Auto

587 

692 

742 

Total allowance for loan losses

$

17,557 

$

16,511 

$

14,458 

Allowance for lending-related commitments

$

2,290 

(c)

$

91 

$

97 

Total allowance for credit losses

$

19,847 

$

16,602 

$

14,555 

(a)Excludes mortgage loans past due and insured by U.S. government agencies, which are primarily 90 or more days past due. These loans have been excluded based upon the government guarantee. At December 31, 2025, 2024 and 2023, mortgage loans 90 or more days past due and insured by U.S. government agencies were $70 million, $84 million and $123 million, respectively. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance.

(b)At December 31, 2025, 2024 and 2023, excluded mortgage loans insured by U.S. government agencies of $102 million, $122 million and $176 million, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee.

(c)Includes $2.2 billion related to the Apple Card transaction.

JPMorgan Chase & Co./2025 Form 10-K

67

Selected metrics

As of or for the year ended December 31,

(in billions, except ratios and where otherwise noted)

2025

2024

2023

Business Metrics

CCB Consumer customers (in millions)

86.6 

84.4 

82.1 

CCB Small business customers (in millions)

7.4 

7.0 

6.4 

Number of branches

5,083 

4,966 

4,897 

Active digital customers

  (in thousands)(a)

74,646 

70,813 

66,983 

Active mobile customers

(in thousands)(b)

61,736 

57,821 

53,828 

Debit and credit card

   sales volume

$

1,940.7 

$

1,805.4 

$

1,678.6 

Total payments transaction volume (in trillions)(c)

7.0 

6.4 

5.9 

Banking & Wealth Management

Average deposits

$

1,040.8 

$

1,049.3 

$

1,111.7 

Deposit margin

2.74 

%

2.66 

%

2.84 

%

Business Banking

   average loans

$

19.1 

$

19.5 

$

19.6 

Business Banking

   origination volume

3.2 

4.5 

4.8 

Client investment

   assets(d)

1,269.9 

1,087.6 

951.1 

Number of client advisors

6,049 

5,755 

5,456 

Home Lending

Mortgage origination volume by channel

Retail

$

33.0 

$

25.5 

$

22.4 

Correspondent

19.8 

15.3 

12.7 

Total mortgage origination volume(e)

$

52.8 

$

40.8 

$

35.1 

Third-party mortgage loans serviced (period-end)

$

661.9 

$

648.0 

$

631.2 

MSR carrying value

   (period-end)

9.1 

9.1 

8.5 

Card Services

Sales volume, excluding commercial card

$

1,354.7 

$

1,259.3 

$

1,163.6 

Net revenue rate

10.08 

%

10.03 

%

9.72 

%

Net yield on average

   loans

10.26 

9.73 

9.61 

New credit card accounts

   opened (in millions)

10.4 

10.0 

10.0 

Cards in force

   (in millions)(f)

116.5 

111.7 

106.8 

Auto

Loan and lease

   origination volume

$

44.8 

$

40.3 

$

41.3 

Average auto

   operating lease assets

16.2 

11.1 

10.9 

(a)Users of all web and/or mobile platforms who have logged in within the past 90 days.

(b)Users of all mobile platforms who have logged in within the past 90 days.

(c)Total payments transaction volume includes debit and credit card sales volume and gross outflows of ACH, ATM, teller, wires, BillPay, PayChase, Zelle, person-to-person and checks.

(d)Includes assets invested in managed accounts and J.P. Morgan mutual funds where AWM is the investment manager. Refer to AWM segment results on pages 76–79 for additional information.

(e)Firmwide mortgage origination volume was $63.4 billion, $47.4 billion and $41.4 billion for the years ended December 31, 2025, 2024 and 2023, respectively.

(f)Represents the total number of open credit cards, inclusive of primary cardholders and authorized users.

68

JPMorgan Chase & Co./2025 Form 10-K

COMMERCIAL & INVESTMENT BANK

The Commercial & Investment Bank is comprised of the Banking & Payments and Markets & Securities Services businesses. These businesses offer investment banking, lending, payments, market-making, financing, custody and securities products and services to a global base of corporate and institutional clients. Banking & Payments offers products and services in all major capital markets, including advising on corporate strategy and structure, capital-raising in equity and debt markets, and loan origination and syndication. Banking & Payments also provides services that enable clients to manage payments globally across liquidity and account solutions, commerce solutions, clearing, trade, and working capital. Markets & Securities Services includes Markets, which is a global market-maker across products, including cash and derivative instruments, and also offers sophisticated risk management solutions, lending, prime brokerage, clearing and research. Markets & Securities Services also includes Securities Services, a leading global custodian that provides custody, fund services, liquidity and trading services, and data solutions products.

Selected income statement data

Year ended December 31,

(in millions)

2025

2024

2023

Revenue

Investment banking fees

$

9,735 

$

9,116 

$

6,631 

Principal transactions

27,226 

24,382 

23,794 

Lending- and deposit-related fees

5,177 

3,914 

3,423 

Commissions and other fees

5,985 

5,278 

4,879 

Card income

2,436 

2,310 

2,213 

All other income

3,207 

3,253 

2,869 

Noninterest revenue

53,766 

48,253 

43,809 

Net interest income

24,688 

21,861 

20,544 

Total net revenue(a)

78,454 

70,114 

64,353 

Provision for credit losses

2,615 

762 

2,091 

Noninterest expense

Compensation expense

19,345 

18,191 

17,105 

Noncompensation expense

18,871 

17,162 

16,867 

Total noninterest expense

38,216 

35,353 

33,972 

Income before income tax expense

37,623 

33,999 

28,290 

Income tax expense

9,862 

9,153 

8,018 

Net income

$

27,761 

$

24,846 

$

20,272 

(a)Included taxable-equivalent adjustments primarily from income tax credits from investments in alternative energy, affordable housing and new markets, income from tax-exempt securities and loans, and the related amortization and other tax benefits of the investments in alternative energy and affordable housing of $2.9 billion, $2.8 billion and $4.0 billion for the years ended December 31, 2025, 2024 and 2023, respectively. Effective January 1, 2024, the Firm adopted updates to the Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method guidance, under the modified retrospective method. Refer to Notes 1, 6, 14 and 25 for additional information.

Selected income statement data

Year ended December 31,

(in millions, except ratios)

2025

2024

2023

Financial ratios

Return on equity

18 

%

18 

%

14 

%

Overhead ratio

49 

50 

53 

Compensation expense as

percentage of total net

revenue

25 

26 

27 

Revenue by business

Investment Banking

$

10,198

$

9,636

$

7,076

Payments

19,331

18,085

17,818

Lending

7,601

7,470

6,896

Other

6

76

107

Total Banking & Payments

37,136

35,267

31,897

Fixed Income Markets

22,532

20,066

19,180

Equity Markets

13,250

9,941

8,784

Securities Services

5,599

5,084

4,772

Credit Adjustments & Other(a)

(63)

(244)

(280)

Total Markets & Securities

Services

41,318

34,847

32,456

Total net revenue

$

78,454 

$

70,114

$

64,353 

(a)Consists primarily of centrally-managed credit valuation adjustments (“CVA”), funding valuation adjustments (“FVA”) on derivatives, other valuation adjustments, and certain components of fair value option elected liabilities, which are primarily reported in principal transactions revenue. Results are presented net of associated hedging activities and net of CVA and FVA amounts allocated to Fixed Income Markets and Equity Markets. Refer to Notes 2, 3 and 24 for additional information.

JPMorgan Chase & Co./2025 Form 10-K

69

Banking & Payments Revenue by Client Coverage Segment: (a)

Global Corporate Banking & Global Investment Banking provides banking products and services generally to large corporations, financial institutions and merchants.

Commercial Banking provides banking products and services to clients, including start-ups, small and mid-sized companies, local governments, municipalities, and nonprofits, as well as commercial real estate clients.

(a)Global Banking is a client coverage view within the Banking & Payments business and is comprised of the Global Corporate Banking, Global Investment Banking and Commercial Banking client coverage segments.

Selected income statement data

Year ended December 31,

(in millions)

2025

2024

2023

Banking & Payments revenue by client coverage segment

Global Corporate Banking & Global Investment Banking(a)

$

25,285 

$

23,780 

$

20,847 

Commercial Banking

11,851 

11,487 

11,050 

Commercial & Specialized Industries(b)

8,306 

7,759 

7,740 

Commercial Real Estate Banking

3,545 

3,728 

3,310 

Total Banking & Payments revenue

$

37,136 

$

35,267 

$

31,897 

(a)In the second quarter of 2025, amounts were reclassified from Other to Global Corporate Banking & Global Investment Banking reflecting the subsequent alignment of certain business activities after the Firm’s business segment reorganization in the second quarter of 2024. Prior-period amounts have been revised to conform with the current presentation.

(b)In the second quarter of 2025, the Middle Market Banking client coverage segment was renamed Commercial & Specialized Industries.

70

JPMorgan Chase & Co./2025 Form 10-K

2025 compared with 2024

Net income was $27.8 billion, up 12%.

Net revenue was $78.5 billion, up 12%.

Banking & Payments revenue was $37.1 billion, up 5%.

•Investment Banking revenue was $10.2 billion, up 6%. Investment Banking fees were up 7%, driven by higher fees across products. The Firm ranked #1 for Global Investment Banking fees, according to Dealogic.

–Debt underwriting fees were $4.5 billion, up 9%, predominantly driven by non-investment grade loans and investment grade bonds.

–Advisory fees were $3.5 billion, up 6%, driven by higher fees from deals in the Financial Institutions and Technology sectors, partially offset by lower fees from deals in the Media & Telecommunications sector.

–Equity underwriting fees were $1.7 billion, up 2%, primarily driven by higher revenue from IPOs.

•Payments revenue was $19.3 billion, up 7%. Excluding the net impact of equity investments, revenue was up 5%, driven by higher average deposits and fee growth, largely offset by deposit margin compression.

•Lending revenue was $7.6 billion, up 2%, driven by higher lending-related fees and lower fair value losses on credit protection purchased against certain retained loans and lending-related commitments.

Markets & Securities Services revenue was $41.3 billion, up 19%. Markets revenue was $35.8 billion, up 19%.

•Equity Markets revenue was $13.3 billion, up 33%, driven by higher revenue across products, particularly in Equity Derivatives.

•Fixed Income Markets revenue was $22.5 billion, up 12%, predominantly driven by higher revenue in Rates, Currencies & Emerging Markets, Commodities and Securitized Products, partially offset by lower revenue in Credit.

•Securities Services revenue was $5.6 billion, up 10%, driven by higher average deposits as well as fee growth related to higher client activity and market levels, partially offset by deposit margin compression.

•Credit Adjustments & Other was a loss of $63 million, compared with a loss of $244 million in the prior year.

Noninterest expense was $38.2 billion, up 8%, predominantly driven by higher compensation, including higher revenue-related compensation, as well as higher brokerage, technology and regulatory expense.

The provision for credit losses was $2.6 billion, driven by net increases in the loan and lending-related commitment portfolios, net changes in credit quality of client-specific exposures, an update to loss assumptions on certain leveraged loans, and estimated losses related to borrower fraud in certain secured lending facilities, partially offset by the impact of changes in the Firm's weighted-average macroeconomic outlook. Net charge-offs were $1.5 billion and the net addition to the allowance for credit losses was $1.1 billion.

In the prior year, the provision was $762 million, net charge-offs were $617 million and the net addition to the allowance for credit losses was $145 million.

JPMorgan Chase & Co./2025 Form 10-K

71

Selected metrics

As of or for the year ended

December 31, (in millions, except employees)

2025

2024

2023

Selected balance sheet data (period-end)

Total assets

$

2,142,534 

$

1,773,194 

$

1,638,493 

Loans:

Loans retained

558,528 

483,043 

475,186 

Loans held-for-sale and loans at fair value(a)

73,508 

40,324 

39,464 

Total loans

632,036 

523,367 

514,650 

Equity

149,500 

132,000 

138,000 

Banking & Payments loans by client coverage segment (period-end)(b)

Global Corporate Banking & Global Investment Banking(c)

$

146,079 

(e)

$

125,270 

$

128,623 

Commercial Banking

222,139 

217,674 

221,550 

Commercial & Specialized Industries(d)

75,865 

72,814 

78,043 

Commercial Real Estate Banking

146,274 

144,860 

143,507 

Total Banking & Payments loans

368,218 

342,944 

350,173 

Selected balance sheet data (average)

Total assets

$

2,195,248 

$

1,912,466 

$

1,716,755 

Trading assets-debt and equity instruments

764,098 

624,032 

508,792 

Trading assets-derivative receivables

58,384 

57,028 

63,862 

Loans:

Loans retained

$

517,260 

$

475,426 

$

457,886 

Loans held-for-sale and loans at fair value(a)

54,725 

43,621 

40,891 

Total loans

$

571,985 

$

519,047 

$

498,777 

Deposits

1,174,581 

1,061,488 

996,295 

Equity

149,500 

132,000 

137,507 

Banking & Payments loans by client coverage segment (average)(b)

Global Corporate Banking & Global Investment Banking(c)

$

129,437 

(e)

$

128,496 

$

131,561 

Commercial Banking

220,562 

220,285 

209,244 

Commercial & Specialized Industries(d)

74,733 

75,605 

77,130 

Commercial Real Estate Banking

145,829 

144,680 

132,114 

Total Banking & Payments loans

$

349,999 

$

348,781 

$

340,805 

Employees

94,563 

(f)

93,231 

92,271 

(a)Loans held-for-sale and loans at fair value primarily reflect lending-related positions originated and purchased in Markets, including loans held for securitization.

(b)Refer to page 70 for a description of each of the client coverage segments.

(c)In the second quarter of 2025, amounts were reclassified from Other to Global Corporate Banking & Global Investment Banking reflecting the subsequent alignment of certain business activities after the Firm’s business segment reorganization in the second quarter of 2024. Prior-period amounts have been revised to conform with the current presentation.

(d)In the second quarter of 2025, the Middle Market Banking client coverage segment was renamed Commercial & Specialized Industries.

(e)On January 1, 2025, $5.6 billion of loans were realigned from Global Corporate Banking to Fixed Income Markets.

(f)In the first quarter of 2025, 219 employees were transferred to Corporate as a result of the centralization of certain functions.

Selected metrics

As of or for the year ended

December 31, (in millions, except ratios)

2025

2024

2023

Credit data and quality statistics

Net charge-offs/(recoveries)

$

1,509 

$

689 

(d)

$

588 

Nonperforming assets:

Nonaccrual loans:

Nonaccrual loans retained(a)

$

3,641 

$

3,258 

$

1,675 

Nonaccrual loans held-for-sale and loans at fair value(b)

1,518 

1,502 

828 

Total nonaccrual loans

5,159 

4,760 

2,503 

Derivative receivables

204 

145 

364 

Assets acquired in loan satisfactions

192 

213 

169 

Total nonperforming assets

$

5,555 

$

5,118 

$

3,036 

Allowance for credit losses:

Allowance for loan losses

$

7,632 

$

7,294 

$

7,326 

Allowance for lending-related commitments

2,738 

1,976 

1,849 

Total allowance for credit losses

$

10,370 

$

9,270 

$

9,175 

Net charge-off/(recovery) rate(c)

0.29 

%

0.14 

%

0.13 

%

Allowance for loan losses to period-end loans

retained

1.37 

1.51 

1.54 

Allowance for loan losses to nonaccrual loans

retained(a)

210 

224 

437 

Nonaccrual loans to total period-end loans

0.82 

0.91 

0.49 

(a)Allowance for loan losses of $597 million, $435 million and $251 million were held against these nonaccrual loans at December 31, 2025, 2024 and 2023, respectively.

(b)Excludes mortgage loans past due and insured by U.S. government agencies, which are primarily 90 or more days past due. These loans have been excluded based upon the government guarantee. At December 31, 2025, 2024 and 2023, mortgage loans 90 or more days past due and insured by U.S. government agencies were $128 million, $37 million and $59 million, respectively.

(c)Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate.

(d)Includes $72 million related to a purchased credit deteriorated (“PCD”) loan that was charged off in the fourth quarter of 2024.

72

JPMorgan Chase & Co./2025 Form 10-K

Investment banking fees

Year ended December 31,

(in millions)

2025

2024

2023

Advisory

$

3,497 

$

3,290 

$

2,814 

Equity underwriting

1,732 

1,692 

1,151 

Debt underwriting(a)

4,506 

4,134 

2,666 

Total investment banking fees

$

9,735 

$

9,116 

$

6,631 

(a)Represents long-term debt and loan syndications.

League table results – wallet share

2025

2024

2023

Year ended December 31,

Rank

Share

Rank

Share

Rank

Share

Based on fees(a)

M&A(b)

Global

#

2 

8.3 

%

#

1 

9.2 

%

#

2 

8.9 

%

U.S.

2 

8.9 

2 

11.1 

2 

10.8 

Equity and equity-related(c)

Global

1 

9.3 

1 

10.9 

1 

7.7 

U.S.

1 

12.6 

1 

14.6 

1 

14.4 

Long-term debt(d)

Global

1 

7.1 

1 

7.5 

1 

7.0 

U.S.

1 

10.2 

1 

11.4 

1 

10.8 

Loan syndications

Global

2 

10.1 

1 

10.2 

1 

12.0 

U.S.

2 

11.3 

1 

11.7 

1 

15.1 

Global investment banking fees(e)

#

1 

8.4 

%

#

1 

9.1 

%

#

1 

8.6 

%

(a)Source: Dealogic as of January 2, 2026. Reflects the ranking of revenue wallet and market share.

(b)Global M&A excludes any withdrawn transactions. U.S. M&A revenue wallet represents wallet from client parents based in the U.S.

(c)Global equity and equity-related ranking includes rights offerings and Chinese A-Shares.

(d)Long-term debt rankings include investment-grade, high-yield, supranationals, sovereigns, agencies, covered bonds, asset-backed securities ("ABS") and mortgage-backed securities ("MBS"); and exclude money market, short-term debt and U.S. municipal securities.

(e)Global investment banking fees exclude money market, short-term debt and shelf securities.

Markets revenue

The following table summarizes selected income statement data for the Markets businesses. Markets includes both Fixed Income Markets and Equity Markets. Markets revenue consists of principal transactions, fees, commissions and other income, as well as net interest income. The Firm assesses its Markets business performance on a total revenue basis, as offsets generally occur across revenue line items. For example, securities that generate net interest income may be risk-managed by derivatives that are reflected at fair value in principal transactions revenue. Refer to Notes 6 and 7 for a description of the composition of these income statement line items.

Principal transactions reflects revenue on financial instruments and commodities transactions that arise from client-driven market-making activity. Principal transactions revenue includes amounts recognized upon executing new transactions with market participants, as well as “inventory-related revenue,” which is revenue recognized from gains and losses on derivatives and other instruments that the Firm has been holding in anticipation of, or in response to, client demand, and changes in the fair value of instruments

used by the Firm to actively manage the risk exposure arising from such inventory. Principal transactions revenue recognized upon executing new transactions with market participants is affected by many factors including the level of client activity, the bid-offer spread (which is the difference between the price at which a market participant is willing and able to sell an instrument to the Firm and the price at which another market participant is willing and able to buy it from the Firm, and vice versa), market liquidity and volatility. These factors are interrelated and sensitive to the same factors that drive inventory-related revenue, which include general market conditions, such as interest rates, foreign exchange rates, credit spreads, and equity and commodity prices, as well as other macroeconomic conditions.

JPMorgan Chase & Co./2025 Form 10-K

73

For the periods presented below, the primary source of principal transactions revenue was the amount recognized upon executing new transactions.

2025

2024

2023

Year ended December 31,

(in millions, except where otherwise noted)

Fixed Income Markets

Equity Markets

Total Markets

Fixed Income Markets

Equity Markets

Total Markets

Fixed Income Markets

Equity Markets

Total Markets

Principal transactions

$

12,327 

$

14,771 

$

27,098 

$

10,603 

$

13,526 

$

24,129 

$

13,198 

$

10,380 

$

23,578 

Lending- and deposit-related fees

451 

182 

633 

391 

100 

491 

307 

40 

347 

Commissions and other fees

626 

2,488 

3,114 

605 

2,086 

2,691 

596 

1,908 

2,504 

All other income

1,775 

(115)

1,660 

2,120 

(65)

2,055 

1,908 

(79)

1,829 

Noninterest revenue

15,179 

17,326 

32,505 

13,719 

15,647 

29,366 

16,009 

12,249 

28,258 

Net interest income

7,353 

(4,076)

3,277 

6,347 

(5,706)

641 

3,171 

(3,465)

(294)

Total net revenue

$

22,532 

$

13,250 

$

35,782 

$

20,066 

$

9,941 

$

30,007 

$

19,180 

$

8,784 

$

27,964 

Loss days(a)

2

1

2

(a)Markets consists of Fixed Income Markets and Equity Markets. The year ended December 31, 2025 had two loss days, including one loss day on December 25, 2025 from limited activity primarily in one location. Loss days represent the number of days for which Markets recorded losses in total net revenue, which includes revenue related to both trading and non-trading positions. The loss days determined under this measure differ from the measure used to determine backtesting gains and losses. Daily backtesting gains and losses include positions in the Firm’s Risk Management value-at-risk ("VaR") measure and exclude certain components of total net revenue, which may more than offset backtesting gains or losses on a particular day. For more information on daily backtesting gains and losses, refer to the VaR discussion on pages 135–138.

Selected metrics

As of or for the year ended December 31,

(in millions, except where otherwise noted)

2025

2024

2023

Assets under custody ("AUC") by asset class (period-end) (in billions):

Fixed Income

$

18,322 

$

16,409 

$

15,543 

Equity

17,954 

14,848 

12,927 

Other(a)

4,896 

4,023 

3,922 

Total AUC

$

41,172 

$

35,280 

$

32,392 

Client deposits and other third-party liabilities (average)(b)

$

1,097,581 

$

961,646 

$

912,859 

(a)Consists of mutual funds, unit investment trusts, currencies, annuities, insurance contracts, options and other contracts.

(b)Client deposits and other third-party liabilities pertain to the Payments and Securities Services businesses.

74

JPMorgan Chase & Co./2025 Form 10-K

International metrics

As of or for the year ended December 31,

(in millions, except where otherwise noted)

2025

2024

2023

Total net revenue(a)

Europe/Middle East/Africa

$

17,189 

$

15,191 

$

14,418 

Asia-Pacific

10,699 

8,867 

7,891 

Latin America/Caribbean

2,636 

2,427 

2,161 

Total international net revenue

30,524 

26,485 

24,470 

North America

47,930 

43,629 

39,883 

Total net revenue

$

78,454 

$

70,114 

$

64,353 

Loans retained (period-end)(a)

Europe/Middle East/Africa

$

60,299 

$

44,374 

$

44,793 

Asia-Pacific

20,390 

16,107 

15,506 

Latin America/Caribbean

11,993 

10,331 

8,610 

Total international loans

92,682 

70,812 

68,909 

North America

465,846 

412,231 

406,277 

Total loans retained

$

558,528 

$

483,043 

$

475,186 

Client deposits and other third-party liabilities (average)(b)

Europe/Middle East/Africa

$

297,959 

$

264,227 

$

247,804 

Asia-Pacific

155,950 

141,042 

135,388 

Latin America/Caribbean

47,064 

42,716 

39,861 

Total international

$

500,973 

$

447,985 

$

423,053 

North America

596,608 

513,661 

489,806 

Total client deposits and other third-party liabilities

$

1,097,581 

$

961,646 

$

912,859 

AUC (period-end)(b)

(in billions)

North America

$

27,763 

$

23,845 

$

21,792 

All other regions

13,409 

11,435 

10,600 

Total AUC

$

41,172 

$

35,280 

$

32,392 

(a)Total net revenue and loans retained (excluding loans held-for-sale and loans at fair value) are based on the location of the trading desk, booking location, or domicile of the client, as applicable.

(b)Client deposits and other third-party liabilities pertaining to the Payments and Securities Services businesses, and AUC, are based on the domicile of the client or booking location, as applicable.

JPMorgan Chase & Co./2025 Form 10-K

75

ASSET & WEALTH MANAGEMENT

Asset & Wealth Management, with client assets of $7.1 trillion, is a global leader in investment and wealth management.

Asset Management

Offers multi-asset investment management solutions across equities, fixed income, alternatives and money market funds to institutional and retail investors providing for a broad range of clients’ investment needs.

Global Private Bank

Provides retirement products and services, brokerage, custody, estate planning, lending, deposits and investment management to high net worth clients.

The majority of AWM’s client assets are in actively managed portfolios.

Selected income statement data

Year ended December 31,

(in millions, except ratios)

2025

2024

2023

Revenue

Asset management fees

$

15,494 

$

13,693 

$

11,826 

Commissions and other fees

1,184 

874 

697 

All other income(a)

563 

456 

1,037 

(b)

Noninterest revenue

17,241 

15,023 

13,560 

Net interest income

6,832 

6,555 

6,267 

Total net revenue

24,073 

21,578 

19,827 

Provision for credit losses

97 

(68)

159 

Noninterest expense

Compensation expense

8,645 

7,984 

7,115 

Noncompensation expense

6,687 

6,430 

5,665 

Total noninterest expense

15,332 

14,414 

12,780 

Income before income tax expense

8,644 

7,232 

6,888 

Income tax expense

2,122 

1,811 

1,661 

Net income

$

6,522 

$

5,421 

$

5,227 

Revenue by line of business

Asset Management

$

11,700 

$

10,175 

$

9,129 

Global Private Bank

12,373 

11,403 

10,698 

Total net revenue

$

24,073 

$

21,578 

$

19,827 

Financial ratios

Return on equity

40 

%

34 

%

31 

%

Overhead ratio

64 

67 

64 

Pre-tax margin ratio:

Asset Management

35 

31 

31 

Global Private Bank

37 

35 

38 

Asset & Wealth Management

36 

34 

35 

(a)Includes the amortization of the fair value discount on certain acquired lending-related commitments associated with First Republic. The discount, which is deferred in other liabilities and recognized on a straight-line basis over the commitment period, continues to decline as commitments expire.

(b)Includes the gain on the original minority interest in China International Fund Management (“CIFM”) upon the Firm’s acquisition of the remaining 51% interest in the entity.

2025 compared with 2024

Net income was $6.5 billion, up 20%.

Net revenue was $24.1 billion, up 12%. Net interest income was $6.8 billion, up 4%. Noninterest revenue was $17.2 billion, up 15%.

Revenue from Asset Management was $11.7 billion, up 15%, predominantly driven by:

•higher asset management fees, reflecting strong net inflows and higher average market levels,

•higher investment valuation gains, and

•performance fees.

Revenue from Global Private Bank was $12.4 billion, up 9%, driven by:

•higher noninterest revenue, reflecting:

–higher management fees due to strong net inflows and higher average market levels, as well as higher brokerage commissions,

partially offset by

–a decline in the amortization of the fair value discount on certain acquired lending-related commitments associated with First Republic that have expired, and

•higher net interest income, driven by higher average loans and deposits, largely offset by narrower spreads on loans.

Noninterest expense was $15.3 billion, up 6%, driven by:

•higher compensation, primarily higher revenue-related compensation and continued growth in private banking advisor teams, as well as higher distribution fees,

partially offset by

• lower legal expense.

The provision for credit losses was $97 million, largely driven by the impact of a charge-off related to a client-specific exposure in the third quarter of 2025. Net charge-offs were $92 million and the net addition to the allowance for credit losses was $5 million.

In the prior year, the provision was a net benefit of $68 million.

76

JPMorgan Chase & Co./2025 Form 10-K

Asset Management has two high-level measures of its overall fund performance.

• Percentage of active mutual fund and active ETF assets under management in funds rated 4- or 5-star: Mutual fund rating services rank funds based on their risk adjusted performance over various periods. A 5-star rating is the best rating and represents the top 10% of industry-wide ranked funds. A 4-star rating represents the next 22.5% of industry-wide ranked funds. A 3-star rating represents the next 35% of industry-wide ranked funds. A 2-star rating represents the next 22.5% of industry-wide ranked funds. A 1-star rating is the worst rating and represents the bottom 10% of industry-wide ranked funds. An overall Morningstar rating is derived from a weighted average of the performance associated with a fund’s three-, five and ten- year (if applicable) Morningstar Rating metrics. For U.S.-domiciled funds, separate star ratings are provided at the individual share class level. The Nomura “star rating” is based on three-year risk-adjusted performance only. Funds with fewer than three years of history are not rated and hence excluded from these rankings. All ratings, the assigned peer categories and the asset values used to derive these rankings are sourced from the applicable fund rating provider. Where applicable, the fund rating providers redenominate asset values into U.S. dollars. The percentage of AUM is based on star ratings at the share class level for U.S.-domiciled funds, and at a “primary share class” level to represent the star rating of all other funds, except for Japan, for which Nomura provides ratings at the fund level. The performance data may have been different if all share classes had been included. Past performance is not indicative of future results.

• Percentage of active mutual fund and active ETF assets under management in funds ranked in the 1st or 2nd quartile (one, three and five years): All quartile rankings, the assigned peer categories and the asset values used to derive these rankings are sourced from the fund rating providers. Quartile rankings are based on the net-of-fee absolute return of each fund. Where applicable, the fund rating providers redenominate asset values into U.S. dollars. The percentage of AUM is based on fund performance and associated peer rankings at the share class level for U.S.-domiciled funds, at a “primary share class” level to represent the quartile ranking for U.K., Luxembourg and Hong Kong SAR funds and at the fund level for all other funds. The performance data may have been different if all share classes had been included. Past performance is not indicative of future results.

“Primary share class” means the C share class for European funds and Acc share class for Hong Kong SAR and Taiwan funds. If these share classes are not available, the oldest share class is used as the primary share class.

Selected metrics

As of or for the year ended December 31,

(in millions, except ranking data, ratios and employees)

2025

2024

2023

% of JPM mutual fund assets and ETFs rated as 4- or 5-star(a)

60 

%

69 

%

69 

%

% of JPM mutual fund assets and ETFs ranked in 1st or 2nd

quartile:(b)

1 year

44 

73 

40 

3 years

54 

75 

67 

5 years

73 

77 

71 

Selected balance sheet data (period-end)(c)

Total assets

$

288,065 

$

255,385 

$

245,512 

Loans

266,385 

236,303 

227,929 

Deposits

257,316 

248,287 

233,232 

Equity

16,000 

15,500 

17,000 

Selected balance sheet data (average)(c)

Total assets

$

267,986 

$

246,254 

$

240,222 

Loans

246,596 

227,676 

220,487 

Deposits

245,248 

235,146 

216,178 

Equity

16,000 

15,500 

16,671 

Employees

29,722

(d)

29,403

28,485

Number of Global Private Bank client advisors

4,101

3,775

3,515

Credit data and quality statistics(c)

Net charge-offs/(recoveries)

$

92 

$

21 

$

13 

Nonaccrual loans

1,199 

700 

650 

Allowance for credit losses:

Allowance for loan losses

$

536 

$

539 

$

633 

Allowance for lending-related commitments

43 

35 

28 

Total allowance for credit losses

$

579 

$

574 

$

661 

Net charge-off/(recovery) rate

0.04 

%

0.01 

%

0.01 

%

Allowance for loan losses to period-end loans

0.20 

0.23 

0.28 

Allowance for loan losses to nonaccrual loans

45 

77 

97 

Nonaccrual loans to period-end loans

0.45 

0.30 

0.29 

(a)Represents the Morningstar Rating for all domiciled funds except for Japan domiciled funds which use Nomura. Includes only Asset Management retail active open-ended mutual funds and active ETFs that have a rating. Excludes money market funds, Undiscovered Managers Fund, and Brazil domiciled funds.

JPMorgan Chase & Co./2025 Form 10-K

77

(b)Quartile ranking sourced from Morningstar, Lipper and Nomura based on country of domicile. Includes only Asset Management retail active open-ended mutual funds and active ETFs that are ranked by the aforementioned sources. Excludes money market funds, Undiscovered Managers Fund, and Brazil domiciled funds.

(c)Loans, deposits and related credit data and quality statistics relate to the Global Private Bank business.

(d)In the first quarter of 2025, 130 employees were transferred to Corporate as a result of the centralization of certain functions.

Client assets

2025 compared with 2024

Assets under management were $4.8 trillion, up 18%, and client assets were $7.1 trillion, up 20%. These increases were driven by higher market levels and continued net inflows.

Client assets

December 31,

(in billions)

2025

2024

2023

Assets by asset class

Liquidity

$

1,279 

$

1,083 

$

926 

Fixed income

998 

851 

751 

Equity

1,400 

1,128 

868 

Multi-asset

884 

764 

680 

Alternatives

230 

219 

197 

Total assets under management

4,791 

4,045 

3,422 

Custody/brokerage/

administration/deposits

2,327 

1,887 

1,590 

Total client assets(a)

$

7,118 

$

5,932 

$

5,012 

Assets by client segment

Private Banking(b)

$

1,414 

$

1,162 

$

924 

Global Institutional

1,953 

1,692 

1,488 

Global Funds(b)

1,424 

1,191 

1,010 

Total assets under management

$

4,791 

$

4,045 

$

3,422 

Private Banking(b)

$

3,549 

$

2,902 

$

2,402 

Global Institutional

2,121 

1,820 

1,594 

Global Funds(b)

1,448 

1,210 

1,016 

Total client assets(a)

$

7,118 

$

5,932 

$

5,012 

(a)Includes CCB client investment assets invested in managed accounts and J.P. Morgan mutual funds where AWM is the investment manager.

(b)In the first quarter of 2025, the Firm realigned certain client assets from Private Banking to Global Funds to reflect them in the client segment where the assets are invested. Prior period amounts have been revised to conform with the current presentation.

Client assets (continued)

Year ended December 31,

(in billions)

2025

2024

2023

Assets under management rollforward

Beginning balance

$

4,045 

$

3,422 

$

2,766 

Net asset flows:

Liquidity

183 

140 

242 

Fixed income

94 

91 

70 

Equity

95 

114 

70 

Multi-asset

16 

19 

1 

Alternatives

4 

10 

(1)

Market/performance/other impacts

354 

249 

274 

Ending balance, December 31

$

4,791 

$

4,045 

$

3,422 

Client assets rollforward

Beginning balance

$

5,932 

$

5,012 

$

4,048 

Net asset flows

553 

486 

490 

Market/performance/other impacts

633 

434 

474 

Ending balance, December 31

$

7,118 

$

5,932 

$

5,012 

Selected Metrics

As of December 31,

2025

2024

Change

Firmwide Wealth Management

Client assets (in billions)(a)

$

4,521 

$

3,756 

20 

%

Number of client advisors

10,150 

9,530 

7 

Stock Plan Administration

Number of stock plan participants (in thousands)

1,794 

1,327 

35 

Client assets (in billions)

$

372 

$

270 

38 

%

(a)Consists of Global Private Bank in AWM and client investment assets in J.P. Morgan Wealth Management in CCB.

78

JPMorgan Chase & Co./2025 Form 10-K

International metrics

Year ended December 31,

(in billions, except where otherwise noted)

2025

2024

2023

Total net revenue (in millions)(a)

Europe/Middle East/Africa

$

4,049 

$

3,563 

$

3,377 

Asia-Pacific

2,432 

2,023 

1,876 

Latin America/Caribbean

1,228 

1,065 

985 

Total international net revenue

7,709 

6,651 

6,238 

North America

16,364 

14,927 

13,589 

Total net revenue(a)

$

24,073 

$

21,578 

$

19,827 

Assets under management

Europe/Middle East/Africa

$

709 

$

604 

$

539 

Asia-Pacific

374 

302 

263 

Latin America/Caribbean

126 

106 

86 

Total international assets under management

1,209 

1,012 

888 

North America

3,582 

3,033 

2,534 

Total assets under management

$

4,791 

$

4,045 

$

3,422 

Client assets

Europe/Middle East/Africa

$

1,035 

$

841 

$

740 

Asia-Pacific

620 

482 

406 

Latin America/Caribbean

310 

254 

232 

Total international client assets

1,965 

1,577 

1,378 

North America

5,153 

4,355 

3,634 

Total client assets

$

7,118 

$

5,932 

$

5,012 

(a)Regional revenue is based on the domicile of the client.

JPMorgan Chase & Co./2025 Form 10-K

79

CORPORATE

Corporate consists of Treasury and Chief Investment Office (“CIO”) and Other Corporate. Treasury and CIO is predominantly responsible for measuring, monitoring, reporting and managing the Firm’s liquidity, funding, capital, structural interest rate and foreign exchange risks.

Other Corporate includes staff functions and expense that is centrally managed as well as certain Firm initiatives and activities not solely aligned to a specific LOB. The major Other Corporate functions include Real Estate, Technology, Legal, Corporate Finance, Human Resources, Internal Audit, Risk Management, Compliance, Control Management, Corporate Responsibility and various Other Corporate groups.

Selected income statement and balance sheet data

As of or for the year ended December 31,

(in millions, except employees)

2025

2024

2023

Revenue

Principal transactions

$

(339)

$

152 

$

302 

Investment securities losses

(58)

(1,020)

(3,180)

All other income

1,308 

8,476 

(f)

3,010 

(h)

Noninterest revenue

911 

7,608 

132 

Net interest income

6,114 

9,786 

7,906 

Total net revenue(a)

7,025 

17,394 

8,038 

Provision for credit losses

7 

10 

171 

Noninterest expense(b)

1,825 

3,994 

(g)

5,601 

Income before income tax expense

5,193 

13,390 

2,266 

Income tax expense/(benefit)

673 

(d)

2,789 

(555)

(i)

Net income

$

4,520 

$

10,601 

$

2,821 

Total net revenue

Treasury and CIO

6,501 

9,638 

6,072 

Other Corporate

524 

7,756 

1,966 

Total net revenue

$

7,025 

$

17,394 

$

8,038 

Net income/(loss)

Treasury and CIO

4,565 

7,013 

4,206 

Other Corporate(b)

(45)

3,588 

(1,385)

Total net income

$

4,520 

$

10,601 

$

2,821 

Total assets (period-end)

$

1,329,632 

$

1,323,967 

$

1,348,437 

Loans (period-end)

2,941 

1,964 

1,924 

Deposits(c)

35,874 

27,581 

21,826 

Employees

50,031 

(e)

49,610 

47,530 

(a)Included taxable-equivalent adjustments, predominantly driven by tax-exempt income from municipal bonds, of $154 million,

$182 million and $211 million for the years ended December 31, 2025, 2024 and 2023, respectively.

(b)Included FDIC special assessment accrual releases of $763 million and an accrual increase of $725 million for the years ended December 31, 2025 and 2024, respectively, which are adjustments to the initial $2.9 billion estimate recorded in the fourth quarter of 2023.

(c)Predominantly relates to the Firm's international consumer initiatives.

(d)Included a $774 million income tax benefit recorded in the second quarter of 2025, driven by the resolution of certain tax audits and the impact of tax regulations related to foreign currency translation gains and losses finalized in 2024 and effective for 2025.

(e)In the first quarter of 2025, 768 employees were transferred from the LOBs to Corporate as a result of the centralization of certain functions.

(f)Included the net gain related to Visa shares of $7.9 billion recorded in the second quarter of 2024. Refer to Note 6 for additional information.

(g)Included a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024. Refer to Note 6 for additional information.

(h)Included the estimated bargain purchase gain of $2.8 billion for the year ended December 31, 2023 associated with the First Republic acquisition. Refer to Notes 6 and 34 for additional information.

(i)Income taxes associated with the First Republic acquisition were reflected in the estimated bargain purchase gain.

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JPMorgan Chase & Co./2025 Form 10-K

2025 compared with 2024

Net income was $4.5 billion, compared with $10.6 billion in the prior year.

Net revenue was $7.0 billion, compared with $17.4 billion in the prior year.

Net interest income was $6.1 billion, down $3.7 billion, driven by the impact of lower rates and changes in FTP for consumer deposits, partially offset by the impact of investment securities activity.

Refer to Business Segment & Corporate Results on page 63 for additional information on FTP.

Noninterest revenue was $911 million, compared with $7.6 billion in the prior year, driven by:

•the absence of the $7.9 billion net gain related to Visa shares recorded in the second quarter of 2024,

partially offset by

•lower net investment securities losses associated with repositioning the investment securities portfolio in Treasury and CIO. The prior year net loss was primarily related to sales of U.S. GSE and government agency MBS and U.S. Treasuries, and

•the $588 million First Republic-related gain recorded in the first quarter of 2025.

Noninterest expense was $1.8 billion, down 54%, primarily driven by:

•lower FDIC-related expense driven by releases of FDIC special assessment accruals of $763 million, compared with an accrual increase of $725 million in the first quarter of the prior year, and

•the absence of the following items recorded in the prior year

–a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation, and

–restructuring and integration costs associated with First Republic.

Refer to Note 6 for additional information on Visa shares and FDIC-related expense, Note 10 and Note 13 for additional information on the investment securities portfolio and the allowance for credit losses, and Note 6 and Note 34 for additional information on the First Republic acquisition.

The current period income tax expense was driven by:

•changes in the level and mix of income and expenses subject to U.S. federal, state and local taxes,

partially offset by

•a $774 million income tax benefit recorded in the second quarter of 2025, driven by the resolution of certain tax audits and the impact of tax regulations related to foreign currency translation gains and losses finalized in 2024 and effective for 2025.

Other Corporate includes the Strategic Investment Group within the Firm’s Security and Resiliency Initiative, as well as the Firm's international consumer initiatives, which primarily consist of Chase U.K., J.P. Morgan Personal Investing (formerly Nutmeg) and an ownership stake in C6 Bank.

The deposits within Corporate relate to the Firm’s international consumer initiatives and have increased as a result of growth in customer accounts.

JPMorgan Chase & Co./2025 Form 10-K

81

Treasury and CIO overview

Treasury and CIO is predominantly responsible for measuring, monitoring, reporting and managing the Firm’s liquidity, funding, capital, structural interest rate and foreign exchange risks. The risks managed by Treasury and CIO arise from the activities undertaken by the Firm’s three reportable business segments to serve their respective customer and client bases, which generate both on- and off-balance sheet assets and liabilities.

Treasury and CIO seeks to achieve the Firm’s asset-liability management objectives generally by investing in high quality securities that are managed for the longer-term as part of the Firm’s investment securities portfolio. Treasury and CIO also uses derivatives to meet the Firm’s asset-liability management objectives. Refer to Note 5 for further information on derivatives. In addition, Treasury and CIO manages the Firm’s cash position primarily through deposits at central banks and investments in short-term instruments. Refer to Liquidity Risk Management on pages 100–107 for further information on liquidity and funding risk. Refer to Market Risk Management on pages 133-142 for information on interest rate and foreign exchange risks.

The investment securities portfolio predominantly consists of U.S. and non-U.S. government securities, U.S. GSE and government agency and nonagency mortgage-backed securities, collateralized loan obligations, obligations of U.S. states and municipalities and other ABS. At December 31, 2025, the Treasury and CIO investment securities portfolio, net of the allowance for credit losses, was $774.0 billion, and the average credit rating of the securities comprising the portfolio was AA+ (based upon external ratings where available and, where not available, based primarily upon internal risk ratings). Refer to Note 10 for further information on the Firm’s investment securities portfolio and internal risk ratings.

Selected income statement and balance sheet data

As of or for the year ended December 31, (in millions)

2025

2024

2023

Investment securities losses

$

(58)

$

(1,020)

$

(3,180)

Available-for-sale securities (average)

$

463,541 

(b)

$

287,260 

$

200,708 

(c)

Held-to-maturity securities (average)

271,309 

(b)

321,384 

402,010 

(c)

Investment securities portfolio (average)

$

734,850 

$

608,644 

$

602,718 

Available-for-sale securities (period-end)

$

503,896 

(b)

$

403,796 

$

199,354 

(c)

Held-to-maturity securities (period–end)

270,134 

(b)

274,468 

369,848 

(c)

Investment securities portfolio, net of allowance for credit losses (period–end)(a)

$

774,030 

$

678,264 

$

569,202 

(a)As of December 31, 2025, 2024 and 2023, the allowance for credit losses on investment securities was $73 million, $105 million and $94 million, respectively.

(b)During the third quarter of 2025, the Firm transferred $44.1 billion of investment securities from AFS to HTM for asset-liability management purposes.

(c)Effective January 1, 2023, the Firm adopted the portfolio layer method hedge accounting guidance. As permitted by the guidance, the Firm elected to transfer $7.1 billion of investment securities from HTM to AFS. Refer to Note 1 and Note 10 for additional information.

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JPMorgan Chase & Co./2025 Form 10-K

FIRMWIDE RISK MANAGEMENT

Risk is an inherent part of JPMorganChase’s business activities. When the Firm extends a consumer or wholesale loan, advises customers and clients on their investment decisions, makes markets in securities, or offers other products or services, the Firm takes on some degree of risk. The Firm’s overall objective is to manage its business, and the associated risks, in a manner that balances serving the interests of its clients, customers and investors, and protecting the safety and soundness of the Firm.

The Firm believes that effective risk management requires, among other things:

•Acceptance of responsibility, including identification and escalation of risks by all individuals within the Firm;

•Ownership of risk identification, assessment, data and management within each of the LOBs and Corporate; and

•A Firmwide risk governance and oversight structure.

The Firm follows a disciplined and balanced compensation framework with strong internal governance and independent oversight by the Board of Directors (the “Board”). The impact of risk and control issues is carefully considered in the Firm’s performance evaluation and incentive compensation processes.

Risk governance framework

The Firm’s risk governance framework involves understanding drivers of risks, types of risks and impacts of risks.

Drivers of risks are factors that cause a risk to exist. Drivers of risks include the economic environment, regulatory or government policy, competitor or market evolution, business decisions, process or judgment error, deliberate wrongdoing, dysfunctional markets and natural disasters.

Types of risks are categories by which risks manifest themselves. The Firm’s risks are generally categorized in the following four risk types:

•Strategic risk is the risk to earnings, capital, liquidity or reputation associated with poorly-designed or failed business plans or an inadequate response to changes in the operating environment.

•Credit and investment risk is the risk associated with the default or change in credit profile of a client, counterparty or customer; or loss of principal or a reduction in expected returns on investments, including consumer credit risk, wholesale credit risk and investment portfolio risk.

•Market risk is the risk associated with the effect of changes in market factors, such as interest and foreign exchange rates, equity and commodity prices, credit spreads or implied volatilities, on the value of assets and liabilities held for both the short and long term.

•Operational risk is the risk of an adverse outcome resulting from inadequate or failed internal processes or systems; human factors; or external events impacting the Firm’s processes or systems. Operational risk includes cybersecurity, compliance, conduct, legal, and estimations and model risk.

Impacts of risks are consequences of risks, both quantitative and qualitative. There may be many consequences when risks manifest themselves, including quantitative impacts such as a reduction in earnings and capital, liquidity outflows, and fines or penalties, or qualitative impacts such as damage to the Firm’s reputation, loss of clients and customers, and regulatory and enforcement actions.

The Firm’s risk governance framework is managed on a Firmwide basis. The Firm has an Independent Risk Management (“IRM”) function, which is comprised of Risk Management and Compliance. The Firm’s Chief Executive Officer (“CEO”) appoints, subject to approval by the Risk Committee of the Board of Directors (the “Board Risk Committee”), the Firm’s Chief Risk Officer (“CRO”) to lead the IRM function and maintain the risk governance framework of the Firm. The framework is subject to approval by the Board Risk Committee through its review and approval of the Risk Governance and Oversight Policy.

The Firm’s CRO oversees and delegates authority to the Firmwide Risk Executives (“FREs”), the Chief Risk Officers of the LOBs and Corporate (“LOB CROs”), and the Firm’s Chief Compliance Officer (“CCO”), who, in turn, establish Risk Management and Compliance organizations, develop the Firm’s risk governance policies and standards, and define and oversee the implementation of the Firm’s risk governance framework. The LOB CROs oversee risks that arise in their LOBs and Corporate, while FREs oversee risks that span across the LOBs and Corporate, as well as functions and regions. Each area of the Firm that gives rise to risk is expected to operate within the parameters identified by the IRM function, and within the risk and control standards established by its own management.

JPMorgan Chase & Co./2025 Form 10-K

83

Management’s discussion and analysis

Three lines of defense

The Firm’s “three lines of defense” are as follows:

The first line of defense consists of each LOB, Treasury and CIO, and certain Other Corporate initiatives, including their aligned Operations, Technology and Control Management. The first line of defense owns the risks, and identification of risks, associated with their respective activities and the design and execution of controls to manage those risks. Responsibilities also include adherence to applicable laws, rules and regulations and implementation of the risk governance framework established by IRM, which may include policies, standards, limits, thresholds and controls.

The second line of defense is the IRM function, which is separate from the first line of defense and is responsible for independently measuring risk, as well as assessing and challenging the risk management activities of the first line of defense. IRM is also responsible for the identification of risks within its organization, its own adherence to applicable laws, rules and regulations and for the development and implementation of policies and standards with respect to its own processes.

The third line of defense is Internal Audit, an independent function that provides objective assessment of the adequacy and effectiveness of Firmwide processes, controls, governance and risk management. The Internal Audit function is led by the General Auditor, who reports to the Audit Committee and administratively to the CEO.

In addition, there are other functions that contribute to the Firmwide control environment but are not considered part of a particular line of defense, including Corporate Finance, Human Resources and Legal. These other functions are responsible for the identification of risks within their respective organizations, adherence to applicable laws, rules and regulations and implementation of the risk governance framework established by IRM.

Risk identification and ownership

The LOBs and Corporate are responsible for the identification of risks within their respective organizations, as well as the design and execution of controls, including IRM-specified controls, to manage those risks. The IRM function reviews and challenges the material risks identified by each LOB and Corporate, and maintains a risk identification framework and a central risk inventory.

Risk appetite

The Firm’s overall appetite for risk is governed by Risk Appetite frameworks for quantitative and qualitative risks. The Firm’s risk appetite is periodically set and approved by senior management (including the CEO and CRO) and approved by the Board Risk Committee. Quantitative and qualitative risks are assessed to monitor and measure the Firm’s capacity to take risk consistent with its stated risk appetite. Risk appetite results are reported to the Board Risk Committee.

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JPMorgan Chase & Co./2025 Form 10-K

Risk governance and oversight structure

The independent status of the IRM function is supported by a risk governance and oversight structure that provides channels for the escalation of risks and issues to senior management, the FRC and the Board of Directors, as appropriate.

The chart below illustrates the principal standing committees of the Board of Directors and key senior management-level committees in the Firm’s risk governance and oversight structure. In addition, there are other committees, forums and channels of escalation that support the oversight of risk that are not shown in the chart below or described in this Form 10-K.

(a)The Firm’s CEO is also the Chairman of the Board of Directors.

(b)The Firm’s CRO reports to the Firm’s CEO and the Board Risk Committee. The Firm’s CRO may escalate directly to the Board of Directors (including its committees), as appropriate.

(c)The Firm’s General Auditor reports to the Audit Committee and administratively to the Firm’s CEO.

(d)The Firmwide Risk Committee escalates to the Board Risk Committee, as appropriate.

(e)The Asset and Liability Committee escalates to the Firm’s CEO or the Board of Directors (including its committees), as appropriate.

The Firm’s Operating Committee, which consists of the Firm’s CEO, CRO, Chief Financial Officer (“CFO”), General Counsel, CEOs of the LOBs and other senior executives, is accountable to and may refer matters to the Firm’s Board of Directors. The Operating Committee and certain other members of senior management are responsible for escalating to the Board the information necessary to facilitate the Board’s exercise of its duties.

Board oversight

The Firm’s Board of Directors actively oversees the business and affairs of the Firm. This includes monitoring the Firm’s financial performance and condition and reviewing the strategic objectives and plans of the Firm. The Board carries out a significant portion of its oversight responsibilities through its principal standing committees, each of which consists solely of independent members of the Board.

The JPMorgan Chase Bank, N.A. Board of Directors is responsible for the oversight of management of the bank, which it discharges both acting directly and through the principal standing committees of the Firm’s Board of Directors. Risk and control oversight on behalf of JPMorgan Chase Bank N.A. is primarily the responsibility of the Board Risk Committee and the

Audit Committee, respectively, and, with respect to compensation and other management-related matters, the Compensation & Management Development Committee.

The Board Risk Committee assists the Board in its oversight of management’s responsibility to implement a global risk management framework reasonably designed to identify, assess and manage the Firm’s risks. The Board Risk Committee’s responsibilities include approval of applicable primary risk policies and review of certain associated frameworks, analysis and reporting established by management. Breaches in risk appetite and parameters, issues that may have a material adverse impact on the Firm, including capital and liquidity issues, and other significant risk-related matters are escalated to the Board Risk Committee, as appropriate.

The Audit Committee assists the Board in its oversight of management’s responsibilities to ensure that there is an effective system of controls reasonably designed to safeguard the Firm’s assets and income, ensure the integrity of the Firm’s financial statements, and maintain compliance with the Firm’s ethical standards, policies, plans and procedures, and with laws and

JPMorgan Chase & Co./2025 Form 10-K

85

Management’s discussion and analysis

regulations. It also assists the Board in its oversight of the qualifications, independence and performance of the Firm’s independent registered public accounting firm, and of the performance of the Firm’s Internal Audit function.

The Compensation & Management Development Committee (“CMDC”) assists the Board in its oversight of the Firm’s compensation principles and practices. The CMDC reviews and approves the Firm’s compensation and qualified benefits programs. The Committee reviews the performance of Operating Committee members against their goals, and approves their compensation awards. In addition, the CEO’s compensation award is subject to ratification by the independent directors of the Board. The CMDC also reviews the development of and succession for key executives. As part of the Board’s role of reinforcing, demonstrating and communicating the “tone at the top,” the CMDC oversees the Firm’s culture, including reviewing updates from management regarding significant conduct issues and any related actions with respect to employees, including compensation actions.

The Public Responsibility Committee oversees and reviews the Firm's positions and practices on public responsibility matters such as community investment, fair lending, sustainability, consumer practices and other public policy issues that reflect the Firm's values and character and could impact the Firm's reputation among its stakeholders. The Committee also provides guidance on these matters to management and the Board, as appropriate.

The Corporate Governance & Nominating Committee exercises general oversight with respect to the governance of the Board of Directors. It reviews the qualifications of and recommends to the Board proposed nominees for election to the Board. The Committee evaluates and recommends to the Board corporate governance practices applicable to the Firm. It also reviews the framework for assessing the Board’s performance and self-evaluation.

Management oversight

The Firm’s senior management-level committees that are primarily responsible for key risk-related functions include:

The Firmwide Risk Committee (“FRC”) is the Firm’s highest management-level risk committee. It oversees the risks inherent in the Firm’s business and provides a forum for discussion of risk-related and other topics and issues that are raised or escalated by its members and other committees.

The Firmwide Control Committee (“FCC”) is an escalation committee for senior management to review and discuss the Firmwide compliance and operational risk environment, including identified issues, compliance and operational risk metrics and significant events that have been escalated.

Line of Business and Regional Risk Committees are responsible for overseeing the governance, limits and controls that have been established within the scope of their respective activities. These committees review the ways in which the particular LOB or the businesses operating in a particular region could be exposed to adverse outcomes, with a focus on identifying, accepting, escalating and/or requiring remediation of matters brought to these committees.

The Control Committees for the LOBs and certain of the Corporate functions oversee the risk and control environment of their respective business or function, inclusive of Operational Risk, Compliance and Conduct Risks. As part of that mandate, they are responsible for reviewing indicators of elevated or emerging risks and other data that may impact the level of compliance and operational risk in a business or function, addressing key compliance and operational risk issues, with an emphasis on processes with control concerns, and overseeing control remediation.

The Asset and Liability Committee (“ALCO”) is responsible for overseeing the Firm’s asset and liability management (“ALM”), including the activities and frameworks supporting management of the balance sheet, liquidity risk, interest rate risk and capital risk.

The Firmwide Valuation Governance Forum (“VGF”) is composed of senior finance and risk executives and is responsible for overseeing the management of risks arising from valuation activities conducted across the Firm.

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Risk governance and oversight functions

The Firm monitors and measures its risk through risk governance and oversight functions. The scope of a particular function or business activity may include one or more drivers, types and/or impacts of risk. For example, Country Risk Management oversees country risk which may be a driver of risk or an aggregation of exposures that could give rise to multiple risk types such as credit or market risk.

The following sections discuss the risk governance and oversight functions that have been established to oversee the risks inherent in the Firm’s business activities.

Risk governance and oversight functions

Page

Strategic Risk

88

Capital Risk

89-99

Liquidity Risk

100-107

Reputation Risk

108

Consumer Credit Risk

112–117

Wholesale Credit Risk

118-128

Investment Portfolio Risk

132

Market Risk

133-142

Country Risk

143-144

Climate Risk

145

Operational Risk

146-149

Compliance Risk

150

Conduct Risk

151

Legal Risk

152

Estimations and Model Risk

153

JPMorgan Chase & Co./2025 Form 10-K

87

Management’s discussion and analysis

STRATEGIC RISK MANAGEMENT

Strategic risk is the risk to earnings, capital, liquidity or reputation associated with poorly-designed or failed business plans or an inadequate response to changes in the operating environment.

Management and oversight

The Operating Committee, together with the senior leadership of each LOB and Corporate, are responsible for managing strategic risk. IRM engages regularly in strategic business discussions and decision-making, including participation in relevant business reviews and senior management meetings, risk and control committees and other relevant governance forums, and review of acquisitions and new business initiatives. The Board of Directors oversees management’s strategic decisions, and the Board Risk Committee oversees IRM and the Firm’s risk governance framework.

In addition, IRM conducts a qualitative assessment of the LOB and Corporate strategic initiatives to assess their impact on the risk profile of the Firm.

The Firm’s strategic planning process, which includes the development of the Firm’s strategic plan and other strategic initiatives, is one component of managing the Firm’s strategic risk. The strategic plan outlines the Firm’s strategic framework and initiatives, and includes components such as budget, risk appetite, capital, earnings and asset-liability management objectives. Guided by the Firm’s Business Principles, the Operating Committee and senior management teams in each LOB and Corporate review and update the strategic plan periodically, including evaluating the strategic framework and performance of strategic initiatives, assessing the operating environment, refining existing strategies and developing new strategies.

The Firm’s strategic plan, together with IRM’s assessment, are provided to the Board as part of its review and approval of the Firm’s strategic plan, and the plan is also reflected in the Firm's budget. 

The Firm’s balance sheet strategy, which focuses on risk-adjusted returns, strong capital and robust liquidity, is also a component in the management of strategic risk. Refer to Capital Risk Management on pages 89–99 for further information on capital risk. Refer to Liquidity Risk Management on pages 100–107 for further information on liquidity risk. Refer to Reputation Risk Management on page 108 for further information on reputation risk.

88

JPMorgan Chase & Co./2025 Form 10-K

CAPITAL RISK MANAGEMENT

Capital risk is the risk that the Firm has an insufficient level or composition of capital to support the Firm’s business activities and associated risks during normal economic environments and under stressed conditions.

A strong capital position is essential to the Firm’s business strategy and competitive position. Maintaining a strong balance sheet to manage through economic volatility is a strategic imperative of the Firm’s Board of Directors, CEO and Operating Committee. The Firm’s “fortress balance sheet” philosophy focuses on risk-adjusted returns, strong capital and robust liquidity. The Firm’s capital risk management strategy focuses on maintaining long-term stability to enable the Firm to build and invest in market-leading businesses, including in highly stressed environments. Senior management considers the implications on the Firm’s capital prior to making significant decisions that could impact future business activities. In addition to considering the Firm’s earnings outlook, senior management evaluates all sources and uses of capital with a view to ensuring the Firm’s capital strength.

Capital risk management

The Firm has a Capital Risk Management function whose primary objective is to provide independent oversight of capital risk across the Firm.

Capital Risk Management’s responsibilities include:

•Defining, monitoring and reporting capital risk metrics;

•Establishing, calibrating and monitoring capital risk limits and indicators, including capital risk appetite;

•Developing processes to classify, monitor and report capital limit breaches;

•Performing assessments of the Firm’s capital management activities, including changes made to the Contingency Capital Plan described below; and

•Conducting independent review of the Firm's interpretation of and compliance with the applicable regulatory capital rules and guidance relating to the calculation of regulatory capital.

Capital management

Treasury and CIO is responsible for capital management.

The primary objectives of the Firm’s capital management are to:

•Maintain sufficient capital in order to continue to build and invest in the Firm’s businesses through normal economic cycles and in stressed environments;

•Retain flexibility to take advantage of future investment opportunities;

•Promote the Parent Company’s ability to serve as a source of strength to its subsidiaries;

•Ensure the Firm operates above the minimum regulatory capital ratios as well as maintain “well-capitalized” status for the Firm and its principal insured depository institution (“IDI”) subsidiary, JPMorgan Chase Bank, N.A., at all times under applicable regulatory capital requirements;

•Meet capital distribution objectives; and

•Maintain sufficient capital resources to operate throughout a resolution period in accordance with the Firm’s preferred resolution strategy.

The Firm addresses these objectives through:

•Establishing internal minimum capital requirements and maintaining a strong capital governance framework. The internal minimum capital levels consider the Firm’s regulatory capital requirements as well as an internal assessment of capital adequacy, in normal economic cycles and in stress events;

•Retaining flexibility in order to react to a range of potential events; and

•Regularly monitoring the Firm’s capital position and following prescribed escalation protocols, both at the Firm and material legal entity levels.

Governance

Committees responsible for overseeing the Firm’s capital management include the Capital Governance Committee, the Firmwide ALCO as well as regional ALCOs, and the CIO, Treasury and Corporate (“CTC”) Risk Committee. In addition, the Board Risk Committee periodically reviews the Firm’s capital risk tolerance. Refer to Firmwide Risk Management on pages 83–87 for additional discussion of the Firmwide ALCO and other risk-related committees.

Capital planning and stress testing

Comprehensive Capital Analysis and Review

The Federal Reserve requires the Firm, as a large Bank Holding Company (“BHC”), to submit at least annually a capital plan that has been reviewed and approved by the Board of Directors. The Federal Reserve uses Comprehensive Capital Analysis and Review (“CCAR”) and other stress testing processes to assess whether large BHCs, such as the Firm, have sufficient capital during periods of economic and financial stress, and have robust, forward-looking capital assessment and planning processes in place that address each BHC’s unique risks to enable it to absorb losses under certain stress scenarios. Through CCAR, the Federal Reserve evaluates each BHC’s capital adequacy and internal capital adequacy assessment processes (“ICAAP”), as well as its plans to make capital distributions, such as dividend payments or stock repurchases. The Federal

JPMorgan Chase & Co./2025 Form 10-K

89

Management’s discussion and analysis

Reserve uses results under the severely adverse scenario from its supervisory stress test to determine each firm’s Stress Capital Buffer (“SCB”) requirement for the coming year.

The Firm's current SCB requirement is 2.5% and will remain in effect through September 30, 2027, based on the current rules. The Firm’s Standardized CET1 capital ratio requirement, including regulatory buffers, was 11.5% as of December 31, 2025. Refer to Key Regulatory Developments on page 91 for information related to proposed changes to the SCB requirement and stress testing framework.

Refer to Capital actions on page 97 for information on actions taken by the Firm’s Board of Directors.

Internal Capital Adequacy Assessment Process

Annually, the Firm prepares the ICAAP, which informs the Board of Directors of the ongoing assessment of the Firm’s processes for managing the sources and uses of capital as well as compliance with supervisory expectations for capital planning and capital adequacy. The Firm’s ICAAP integrates stress testing protocols with capital planning. The Firm’s Audit Committee is responsible for reviewing and approving the capital planning framework.

Stress testing assesses the potential impact of alternative economic and business scenarios on the Firm’s earnings and capital. Economic scenarios, and the parameters underlying those scenarios, are defined centrally and applied uniformly across the businesses. These scenarios are articulated in terms of macroeconomic factors, which are key drivers of business results; global market shocks, which generate short-term but severe trading losses; and idiosyncratic operational risk events. The scenarios are intended to capture and stress key vulnerabilities and idiosyncratic risks facing the Firm. In addition to CCAR and other periodic stress testing, management also considers tailored stress scenarios and sensitivity analyses, as necessary.

Contingency Capital Plan

The Firm’s Contingency Capital Plan establishes the capital management framework for the Firm and specifies the principles underlying the Firm’s approach towards capital management in normal economic conditions and in stressed environments. The Contingency Capital Plan defines how the Firm calibrates its targeted capital levels and meets minimum capital requirements, monitors the ongoing appropriateness of planned capital distributions, and sets out the capital contingency actions that are expected to be taken or considered at various levels of capital depletion during a period of stress.

Regulatory capital

The Federal Reserve establishes capital requirements, including well-capitalized standards, for the Firm as a consolidated financial holding company. The Office of the Comptroller of the Currency ("OCC") establishes similar minimum capital requirements and standards for the Firm’s principal IDI subsidiary, JPMorgan Chase Bank, N.A. The U.S. capital requirements generally follow the Capital Accord of the Basel Committee, as amended from time to time.

Basel III Overview

The capital rules under Basel III establish minimum capital ratios and overall capital adequacy standards for large and internationally active U.S. BHCs and banks, including the Firm and JPMorgan Chase Bank, N.A. The minimum amount of regulatory capital that must be held by BHCs and banks is determined by calculating RWA, which are on-balance sheet assets and off-balance sheet exposures, weighted according to risk. Under the rules currently in effect, two comprehensive approaches are prescribed for calculating Basel III RWA: a standardized approach (“Standardized”), and an advanced approach (“Advanced”).

For each of these risk-based capital ratios, the capital adequacy of the Firm is evaluated against the lower of the Standardized or Advanced approaches compared to their respective regulatory capital ratio requirements.

The current Basel III rules establish capital requirements for calculating credit risk RWA and market risk RWA, and in the case of Advanced, operational risk RWA. Key differences in the calculation of credit risk RWA between the Standardized and Advanced approaches are that for Advanced, credit risk RWA is based on risk-sensitive approaches which largely rely on the use of internal credit models and parameters, whereas for Standardized, credit risk RWA is generally based on supervisory risk-weightings which vary primarily by counterparty type and asset class. The models used in Advanced are subject to periodic review and calibration, which can impact RWA results. Market risk RWA is generally calculated consistently between Standardized and Advanced. In addition to the RWA calculated under these approaches, the Firm may supplement such amounts to incorporate management judgment and feedback from its regulators.

As of December 31, 2025, the Advanced risk-based ratios became more binding on the Firm than the Standardized risk-based ratios, primarily reflecting the increase in Advanced RWA related to the Apple Card transaction and a reduction in the Firm’s SCB requirement which only applies to the Standardized risk-based ratios.

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JPMorgan Chase & Co./2025 Form 10-K

Additionally, Basel III requires that Advanced Approaches banking organizations, including the Firm, calculate their SLRs. Refer to page 96 for additional information on SLR.

Key Regulatory Developments

Enhanced SLR Final Rule

In November 2025, the Federal Reserve, the OCC and the FDIC issued the final rule amending the enhanced Supplementary Leverage Ratio (“eSLR”) requirements for Global Systemically Important Banks (“GSIB”) BHCs and their IDI subsidiaries by revising the current static leverage buffers at the BHC and IDI levels to 50% of the BHC’s U.S. Method 1 GSIB Surcharge, which is referred to as the “eSLR buffer.” For IDI subsidiaries, the eSLR buffer is capped at 1%. In addition, the rule made corresponding adjustments to the leverage-based total loss-absorbing capacity (“TLAC”) and eligible long-term debt (“eligible LTD”) requirements by replacing the former TLAC leverage buffer with the eSLR buffer and replacing the former static leverage-based eligible LTD requirement with a requirement of 2.5% plus the eSLR buffer. Further, the rule removes the eSLR threshold for an IDI subsidiary of a U.S. GSIB to be considered “well capitalized” under the prompt corrective action framework and instead applies the eSLR as a capital buffer requirement. The final rule, with an effective date of April 1, 2026, allows for early adoption, which the Firm has elected, effective January 1, 2026.

Refer to page 92 for information on the U.S. Method 1 GSIB Surcharge.

Enhanced Transparency and Public Accountability of the Supervisory Stress Test

In October 2025, the Federal Reserve issued proposals to enhance the transparency and public accountability of its annual stress test. The proposals would require the Federal Reserve to publish for public comment comprehensive documentation concerning the supervisory stress test models and annual stress test scenarios, including the scenarios for the upcoming 2026 stress test. The proposals also introduce an enhanced disclosure process under which material changes to stress test models and scenarios would be subject to public comment prior to implementation. Based on the Federal Reserve’s analysis, the proposed changes to the stress test models and scenarios are not expected to change materially the SCB for firms, such as JPMorganChase, that are subject to the supervisory stress test. In February 2026, the Federal Reserve released the final 2026 supervisory stress test scenarios, while announcing that SCB requirements for large banks, including the Firm, will remain at current levels through September 30, 2027 with new requirements to be calculated in 2027 based on revised models that incorporate public feedback.

SCB Volatility Reduction

In April 2025, the Federal Reserve proposed changes to the calculation of the SCB for large BHCs, including the Firm. The proposal aims to reduce SCB volatility by using the average of supervisory stress results from the previous two annual stress tests to calculate the SCB. The proposal would also modify the annual effective date of the SCB from October 1 to January 1 and make targeted changes to reporting requirements in order to streamline data collection.

U.S. Basel III Finalization

In July 2023, the Federal Reserve, the OCC and the FDIC released a proposal to amend the risk-based capital framework, entitled "Regulatory capital rule: Amendments applicable to large banking organizations and to banking organizations with significant trading activity", which is referred to in this Form 10-K as the "U.S. Basel III proposal." Under this proposal, changes to the framework would include replacement of the Advanced approach with an expanded risk-based approach for the calculation of RWA. In addition, the stress capital buffer requirement would be applicable to both the expanded risk-based approach and the Standardized approach.

GSIB Surcharge and TLAC and Eligible LTD Requirements

In July 2023, the Federal Reserve released a proposal to amend the calculation of the GSIB surcharge. Under the proposal, the annual GSIB surcharge would be based on an average of the quarterly surcharge calculations throughout the calendar year, with daily averaging required for certain measures. The proposal would also reduce surcharge increments from 50 bps to 10 bps and includes other technical amendments to the “Method 2” calculation. The proposed changes would revise risk-based capital requirements for the Firm and other U.S. GSIBs. Refer to Risk-based Capital Regulatory Requirements on page 92 for further information on the GSIB surcharge.

Additionally, in August 2023, the Federal Reserve, the FDIC and the OCC released a proposal to expand the eligible long-term debt ("eligible LTD") and clean holding company requirements under the existing total loss-absorbing capacity ("TLAC") rule to apply to non-GSIB banks with $100 billion or more in total consolidated assets. The proposal would also reduce the amount of LTD with remaining maturities of less than two years that count towards a U.S. GSIB's TLAC requirement and expand the existing capital deduction framework for LTD issued by GSIBs to include LTD issued by non-GSIB banks subject to the LTD requirements.

Finalization of the above proposals, including the required implementation dates, is uncertain. The Firm continues to monitor developments and potential impacts.

JPMorgan Chase & Co./2025 Form 10-K

91

Management’s discussion and analysis

Risk-based Capital Regulatory Requirements

The following chart presents the CET1 capital regulatory ratio requirements for the Firm under the Basel III rules currently in effect.

All banking institutions are currently required to have a minimum CET1 capital ratio of 4.5% of risk-weighted assets.

Certain banking organizations, including the Firm, are required to hold additional levels of capital to serve as a “capital conservation buffer.” The capital conservation buffer incorporates a GSIB surcharge, a discretionary countercyclical capital buffer and a fixed capital conservation buffer of 2.5% for Advanced regulatory capital requirements, as well as a variable SCB requirement, floored at 2.5%, for Standardized regulatory capital requirements.

Under the Federal Reserve’s GSIB rule, the Firm is required to assess its GSIB surcharge on an annual basis under two separately prescribed methods based on data for the previous fiscal year-end, and is subject to the higher of the two. “Method 1” reflects the GSIB surcharge as prescribed by the Basel Committee’s assessment methodology, and is calculated across five criteria: size, cross-jurisdictional activity, interconnectedness, complexity and substitutability. “Method 2” modifies the Method 1 requirements to include a measure of short-term wholesale funding in place of substitutability, and introduces a GSIB score “multiplication factor.”

The following table presents the Firm’s effective GSIB surcharge for the years ended December 31, 2025 and 2024. For 2026, the Firm’s effective regulatory minimum GSIB surcharge calculated under both Method 1 and Method 2 remains unchanged at 2.5% and 4.5%, respectively.

2025

2024

Method 1

2.5 

%

2.5 

%

Method 2

4.5 

%

4.5 

%

The U.S. federal regulatory capital standards include a framework for setting a discretionary countercyclical capital buffer taking into account the macro financial environment in which large, internationally active banks function. As of December 31, 2025, the U.S. countercyclical capital buffer remained at 0%. The Federal Reserve will continue to review the buffer at least annually. The buffer can be increased if the Federal Reserve, the FDIC and the OCC determine that systemic risks are meaningfully above normal and can be calibrated up to an additional 2.5% of RWA subject to a 12-month implementation period.

Failure to maintain regulatory capital equal to or in excess of the risk-based regulatory capital minimum plus the capital conservation buffer (inclusive of the GSIB surcharge) and any countercyclical buffer will result in limitations to the amount of capital that the Firm may distribute, such as through dividends and common share repurchases, as well as on discretionary bonus payments for certain executive officers.

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JPMorgan Chase & Co./2025 Form 10-K

Total Loss-Absorbing Capacity

The Federal Reserve’s TLAC rule requires the U.S. GSIB top-tier holding companies, including the Firm, to maintain minimum levels of external TLAC and eligible LTD. These requirements were updated in the eSLR final rule which the Firm has elected to early adopt effective January 1, 2026. Refer to Key Regulatory Developments on page 91 for additional information related to the eSLR final rule.

Refer to page 98 for additional information related to TLAC.

Leverage-based Capital Regulatory Requirements

Supplementary leverage ratio

Banking organizations subject to the Advanced approach are currently required to have a minimum SLR of 3.0%. Certain banking organizations, including the Firm, are also required to hold an additional 2.0% leverage buffer. The SLR is defined as Tier 1 capital under Basel III divided by the Firm’s total leverage exposure. Total leverage exposure is calculated by taking the Firm’s total average on-balance sheet assets, less amounts permitted to be deducted for Tier 1 capital, and adding certain off-balance sheet exposures, as defined in regulatory capital rules. These requirements were updated in the eSLR final rule which the Firm has elected to early adopt effective January 1, 2026. Refer to Key Regulatory Developments on page 91 for additional information related to the eSLR final rule.

Refer to page 96 for additional information related to SLR.

Failure to maintain an SLR equal to or greater than the regulatory requirement will result in limitations on the amount of capital that the Firm may distribute such as through dividends and common share repurchases, as well as on discretionary bonus payments for certain executive officers.

Other regulatory capital

In addition to meeting the capital ratio requirements of Basel III, the Firm and its principal IDI subsidiary, JPMorgan Chase Bank, N.A., must also maintain minimum capital and leverage ratios in order to be “well-capitalized” under the regulations issued by the Federal Reserve and the Prompt Corrective Action requirements of the FDIC Improvement Act, respectively. Refer to Note 27 for additional information.

Additional information regarding the Firm’s capital ratios, as well as the U.S. federal regulatory capital standards to which the Firm is subject, is presented in Note 27. Refer to the Firm’s Pillar 3 Regulatory Capital Disclosures reports, which are available on the Firm’s website, for further information on the Firm’s current capital measures.

JPMorgan Chase & Co./2025 Form 10-K

93

Management’s discussion and analysis

Selected capital and RWA data

The following tables present the Firm’s risk-based capital metrics under both the Standardized and Advanced approaches and leverage-based capital metrics. Refer to Note 27 for JPMorgan Chase Bank, N.A.’s risk-based and leverage-based capital metrics. First Republic Bank was not subject to Advanced approach regulatory capital requirements. As a result, for certain exposures associated with the First Republic acquisition, Advanced RWA and any impact on Advanced Total capital is calculated under the Standardized approach as permitted by the transition provisions in the U.S. capital rules. Refer to Note 34 for additional information on the First Republic acquisition.

Standardized

Advanced

(in millions, except ratios)

December 31, 2025

December 31, 2024

Capital ratio requirements(d)

December 31, 2025

December 31, 2024

Capital ratio requirements(d)

Risk-based capital metrics:(a)

CET1 capital

$

288,469 

$

275,513 

$

288,469 

$

275,513 

Tier 1 capital

307,630 

294,881 

307,630 

294,881 

Total capital

343,843 

325,589 

328,962 

(e)

311,898 

(e)

Risk-weighted assets

1,981,692 

(b)

1,757,460 

2,045,249 

(b)(e)

1,740,429 

(e)

CET1 capital ratio

14.6 

%

(c)

15.7 

%

11.5 

%

14.1 

%

(c)

15.8 

%

11.5 

%

Tier 1 capital ratio

15.5 

(c)

16.8 

13.0 

15.0 

(c)

16.9 

13.0 

Total capital ratio

17.4 

(c)

18.5 

15.0 

16.1 

(c)

17.9 

15.0 

(a)As of January 1, 2025, the benefit from the CECL capital transition provision had been fully phased out. For the year ended December 31, 2024, CET1 capital reflected a $720 million benefit. Refer to Note 27 for additional information.

(b)Includes approximately $23 billion under the Standardized approach and approximately $110 billion under the Advanced approach related to the Apple Card transaction. Advanced RWA is expected to reduce to approximately $30 billion once the necessary modeling steps are completed, which is expected in the near term.

(c)Includes decreases of approximately 25 basis points under the Standardized approach and approximately 90 basis points under the Advanced approach related to the Apple Card transaction. The impact under the Advanced approach is expected to reduce to approximately 30 basis points once the necessary modeling steps are completed, which is expected in the near term.

(d)Represents minimum requirements and regulatory buffers applicable to the Firm for the year ended December 31, 2025. For the year ended December 31, 2024, the Standardized CET1, Tier 1, and Total capital ratio requirements applicable to the Firm were 12.3%, 13.8%, and 15.8%, respectively; the Advanced CET1, Tier 1, and Total capital ratio requirements applicable to the Firm were 11.5%, 13.0%, and 15.0%, respectively. Refer to Note 27 for additional information.

(e)Includes the impacts of certain assets associated with First Republic to which the Standardized approach has been applied as permitted by the transition provisions in the U.S. capital rules.

Three months ended

(in millions, except ratios)

December 31, 2025

December 31, 2024

Capital ratio requirements(c)

Leverage-based capital metrics:(a)

Adjusted average assets(b)

$

4,472,394 

$

4,070,499 

Tier 1 leverage ratio

6.9 

%

7.2 

%

4.0 

%

Total leverage exposure

$

5,302,001 

$

4,837,568 

SLR

5.8 

%

6.1 

%

5.0 

%

(a)As of January 1, 2025, the benefit from the CECL capital transition provision had been fully phased out. The capital metrics for the year ended December 31, 2024 reflected the CECL capital transition provisions. Refer to Note 27 for additional information.

(b)Adjusted average assets, for purposes of calculating the leverage ratios, includes quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 capital, predominantly goodwill (inclusive of estimated equity method goodwill) and other intangible assets.

(c)Represents minimum requirements and regulatory buffers applicable to the Firm. Refer to Note 27 for additional information.

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JPMorgan Chase & Co./2025 Form 10-K

Capital components

The following table presents reconciliations of total stockholders’ equity to CET1 capital, Tier 1 capital and Total capital as of December 31, 2025 and 2024.

(in millions)

December 31,

2025

December 31,

2024

Total stockholders’ equity

$

362,438 

$

344,758 

Less: Preferred stock

20,045 

20,050 

Common stockholders’ equity

342,393 

324,708 

Add:

Certain deferred tax liabilities(a)

2,916 

2,943 

Other CET1 capital adjustments(b)

(198)

4,499 

Less:

Goodwill(c)

54,082 

53,763 

Other intangible assets

2,560 

2,874 

Standardized/Advanced CET1 capital

288,469 

275,513 

Add: Preferred stock

20,045 

20,050 

Less: Other Tier 1 adjustments

884 

682 

Standardized/Advanced Tier 1 capital

$

307,630 

$

294,881 

Long-term debt and other instruments qualifying as Tier 2 capital

$

13,539 

$

10,312 

Qualifying allowance for credit losses(d)

23,733 

20,992 

Other

(1,059)

(596)

Standardized Tier 2 capital

$

36,213 

$

30,708 

Standardized Total capital

$

343,843 

$

325,589 

Adjustment in qualifying allowance for credit losses for Advanced Tier 2 capital(e)(f)

(14,881)

(13,691)

Advanced Tier 2 capital

$

21,332 

$

17,017 

Advanced Total capital

$

328,962 

$

311,898 

(a)Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in nontaxable transactions, which are netted against goodwill and other intangibles when calculating CET1 capital.

(b)As of December 31, 2025 and 2024, included a net reduction for certain deferred tax assets related to tax attribute carryforwards of $1.8 billion and $125 million, respectively, and a net benefit associated with cash flow hedges and debit valuation adjustments ("DVA") related to structured notes recorded in AOCI of $2.6 billion and $5.2 billion, respectively. As of January 1, 2025, the benefit from the CECL capital transition provision had been fully phased out. The year ended December 31, 2024 included benefit from the CECL capital transitions of $720 million.

(c)Goodwill deducted from capital includes goodwill associated with equity method investments in nonconsolidated financial institutions based on regulatory requirements. Refer to page 132 for additional information on principal investment risk.

(d)Represents the allowance for credit losses eligible for inclusion in Tier 2 capital up to 1.25% of credit risk RWA. As of January 1, 2025, the benefit from the CECL capital transition provision had been fully phased out. The year ended December 31, 2024 included the impact of the CECL capital transition provision with any excess deducted from RWA. Refer to Note 27 for additional information on the CECL capital transition.

(e)Represents an adjustment to qualifying allowance for credit losses for the excess of eligible credit reserves over expected credit losses up to 0.6% of credit risk RWA. As of January 1, 2025, the benefit from the CECL capital transition provision had been fully phased out. The year ended December 31, 2024 included the impact of the CECL capital transition provision with any excess deducted from RWA.

(f)As of December 31, 2025 and 2024, included an incremental $468 million and $541 million allowance for credit losses, respectively, on certain assets associated with First Republic to which the Standardized approach has been applied, as permitted by the transition provisions in the U.S. capital rules.

Capital rollforward

The following table presents the changes in CET1 capital, Tier 1 capital and Tier 2 capital for the year ended December 31, 2025.

Year ended December 31, (in millions)

2025

Standardized/Advanced CET1 capital at December 31, 2024

$

275,513 

Net income applicable to common equity

55,949 

Dividends declared on common stock

(16,060)

Net purchase of treasury stock

(30,573)

Changes in additional paid-in capital

203 

Changes related to AOCI applicable to capital:

Unrealized gains/(losses) on investment securities

3,569 

Translation adjustments, net of hedges(a)

1,339 

Fair value hedges

64 

Defined benefit pension and other postretirement employee benefit (“OPEB”) plans

579 

Changes related to other CET1 capital adjustments(b)

(2,114)

Change in Standardized/Advanced CET1 capital

12,956 

Standardized/Advanced CET1 capital at December 31, 2025

$

288,469 

Standardized/Advanced Tier 1 capital at December 31, 2024

$

294,881 

Change in CET1 capital(b)

12,956 

Net redemptions of noncumulative perpetual preferred stock

(5)

Other

(202)

Change in Standardized/Advanced Tier 1 capital

12,749 

Standardized/Advanced Tier 1 capital at December 31, 2025

$

307,630 

Standardized Tier 2 capital at December 31, 2024

$

30,708 

Change in long-term debt and other instruments qualifying as Tier 2(c)

3,227 

Change in qualifying allowance for credit losses(b)

2,741 

Other

(463)

Change in Standardized Tier 2 capital

5,505 

Standardized Tier 2 capital at December 31, 2025

$

36,213 

Standardized Total capital at December 31, 2025

$

343,843 

Advanced Tier 2 capital at December 31, 2024

$

17,017 

Change in long-term debt and other instruments qualifying as Tier 2(c)

3,227 

Change in qualifying allowance for credit losses(b)(d)

1,551 

Other

(463)

Change in Advanced Tier 2 capital

4,315 

Advanced Tier 2 capital at December 31, 2025

$

21,332 

Advanced Total capital at December 31, 2025

$

328,962 

(a)Includes foreign currency translation adjustments and the impact of related derivatives.

(b)Reflects the final phase out of the CECL benefit as well as deductions for certain deferred tax assets related to tax attribute carryforwards. Refer to Note 27 for additional information on the CECL capital transition.

(c)Includes issuance of $4.0 billion of subordinated notes due 2036. Refer to Long-term funding on page 106 and Note 20 for additional information on the Firm’s subordinated debt.

(d)As of December 31, 2025 and 2024, included an incremental $468 million and $541 million allowance for credit losses, respectively, on certain assets associated with First Republic to which the Standardized approach has been applied, as permitted by the transition provisions in the U.S. capital rules.

JPMorgan Chase & Co./2025 Form 10-K

95

Management’s discussion and analysis

RWA rollforward

The following table presents changes in the components of RWA under Standardized and Advanced approaches for the year ended December 31, 2025. The amounts in the rollforward categories are estimates, based on the predominant driver of the change.

Standardized

Advanced

Year ended December 31, 2025

(in millions)

Credit risk RWA(c)

Market risk RWA

Total RWA

Credit risk RWA(c)(d)

Market risk RWA

Operational risk

RWA

Total RWA

December 31, 2024

$

1,672,763 

$

84,697 

$

1,757,460 

$

1,218,005 

$

85,132 

$

437,292 

$

1,740,429 

Model & data changes(a)

(3,505)

(4,128)

(7,633)

(2,862)

(4,128)

— 

(6,990)

Movement in portfolio levels(b)

220,151 

11,714 

231,865 

278,662 

11,994 

21,154 

311,810 

Changes in RWA

216,646 

7,586 

224,232 

275,800 

7,866 

21,154 

304,820 

December 31, 2025

$

1,889,409 

$

92,283 

$

1,981,692 

$

1,493,805 

$

92,998 

$

458,446 

$

2,045,249 

(a)Model & data changes refer to material movements in levels of RWA as a result of revised methodologies and/or treatment per regulatory guidance (exclusive of rule changes).

(b)Movement in portfolio levels (inclusive of rule changes) refers to: for Credit risk RWA, changes in book size, including the impact of the Apple Card transaction, changes in composition and credit quality, market movements, and deductions for excess eligible allowances for credit losses not eligible for inclusion in Tier 2 capital; for Market risk RWA, changes in position and market movements; and for Operational risk RWA, updates to cumulative losses, macroeconomic model inputs, and other model parameters.

(c)As of December 31, 2025 and 2024, the Standardized Credit risk RWA included wholesale and retail off balance-sheet RWA of $268.5 billion and $208.0 billion, respectively; and the Advanced Credit risk RWA included wholesale and retail off balance-sheet RWA of $223.0 billion and $192.1 billion, respectively.

(d)As of December 31, 2025 and 2024, Credit risk RWA reflected approximately $37.4 billion and $43.3 billion, respectively, of RWA calculated under the Standardized approach for certain assets associated with First Republic as permitted by the transition provisions in the U.S. capital rules.

Refer to the Firm’s Pillar 3 Regulatory Capital Disclosures reports, which are available on the Firm’s website, for further information on Credit risk RWA, Market risk RWA and Operational risk RWA.

Supplementary leverage ratio

The following table presents the components of the Firm’s SLR.

Three months ended

(in millions, except ratio)

December 31,

2025

December 31,

2024

Tier 1 capital

$

307,630 

$

294,881 

Total average assets

4,529,418 

4,125,167 

Less: Regulatory capital adjustments(a)

57,024 

54,668 

Total adjusted average assets(b)

4,472,394 

4,070,499 

Add: Off-balance sheet exposures(c)

829,607 

767,069 

Total leverage exposure

$

5,302,001 

$

4,837,568 

SLR

5.8 

%

6.1 

%

(a)For purposes of calculating the SLR, includes quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 capital, predominantly goodwill (inclusive of estimated equity method goodwill) and other intangible assets. As of January 1, 2025, the benefit from the CECL capital transition provision had been fully phased out. The year ended December 31, 2024 included adjustments for the CECL capital transition provisions. Refer to Note 27 for additional information on the CECL capital transition.

(b)Adjusted average assets used for the calculation of Tier 1 leverage ratio.

(c)Off-balance sheet exposures are calculated as the average of the three month-end spot balances on applicable regulatory exposures during the reporting quarter. Refer to the Firm’s Pillar 3 Regulatory Capital Disclosures reports for additional information.

Line of business and Corporate equity

Each LOB and Corporate is allocated capital by taking into consideration a variety of factors including capital levels of similarly rated peers and applicable regulatory capital requirements. ROE is measured and

internal targets for expected returns are established as key measures of an LOB’s performance.

The Firm’s current equity allocation methodology incorporates Standardized RWA and the GSIB surcharge, both under rules currently in effect, as well as a simulation of capital depletion in a severe stress environment. At least annually, the assumptions, judgments and methodologies used to allocate capital are reassessed and, as a result, the capital allocated to the LOBs and Corporate may change. As of January 1, 2026, changes to the Firm’s capital allocations are primarily a result of updates to the Firm’s current capital requirements and changes in RWA for each LOB under rules currently in effect. Any capital that the Firm has accumulated in excess of these current requirements, including the capital required to meet the potential increased requirements of the U.S. Basel III proposal, has been retained in Corporate in addition to its allocated balance.

The following table presents the capital allocated to each LOB and Corporate.

December 31,

(in billions)

January 1,

 2026

2025

2024

Consumer & Community Banking

$

61.5 

$

56.0 

$

54.5 

Commercial & Investment Bank

166.5 

149.5 

132.0 

Asset & Wealth Management

16.0 

16.0 

15.5 

Corporate

98.4 

120.9 

122.7 

Total common stockholders’ equity

$

342.4 

$

342.4 

$

324.7 

96

JPMorgan Chase & Co./2025 Form 10-K

Capital actions

Common stock dividends

The Firm’s common stock dividends are planned as part of the Capital Management governance framework in line with the Firm’s capital management objectives.

On December 9, 2025, the Firm announced that its Board of Directors had declared a quarterly common stock dividend of $1.50 per share, payable on January 31, 2026. The Firm’s dividends are subject to approval by the Board of Directors on a quarterly basis.

Refer to Note 21 and Note 26 for information regarding dividend restrictions.

The following table shows the common dividend payout ratio based on net income applicable to common equity.

Year ended December 31,

2025

2024

2023

Common dividend payout ratio

29 

%

24 

%

25 

%

Common stock repurchases

On July 1, 2025, the Firm announced that its Board of Directors had authorized a new $50 billion common share repurchase program, effective July 1, 2025. Through June 30, 2025, the Firm was authorized to purchase up to $30 billion of common shares under its previously-approved common share repurchase program that was announced on June 28, 2024.

The following table sets forth the Firm’s repurchases of common stock for the years ended December 31, 2025, 2024 and 2023.

Year ended December 31,

(in millions)

2025

2024

2023

Total number of shares of common stock repurchased

114.4 

91.7 

69.5 

Aggregate purchase price of common stock repurchases(a)

$

31,640 

$

18,841 

$

9,898 

(a)Excludes excise tax and commissions.

The Board of Directors’ authorization to repurchase common shares is utilized at management’s discretion. The common share repurchase program approved by the Board of Directors does not establish specific price targets or timetables. Management determines the amount and timing of common share repurchases based on various factors, including market conditions; legal and regulatory considerations affecting the amount and timing of repurchase activity; the Firm’s capital position (taking into account goodwill and intangibles); organic capital generation; current and proposed future capital requirements; and other investment opportunities. The amount of common shares that the Firm repurchases in any period may be substantially more or less than the amounts estimated or actually repurchased in prior periods, reflecting the dynamic nature of the decision-making process. The Firm’s common share repurchases may be suspended by management at any time; and may be executed through open market purchases or privately negotiated transactions, or utilizing Rule 10b5-1 plans, which are written trading plans that the Firm may enter into from time to time under Rule 10b5-1 of the Securities Exchange Act of 1934 and which allow the Firm to repurchase its common shares during periods when it may otherwise not be repurchasing common shares — for example, during internal trading blackout periods.

Refer to Capital planning and stress testing on pages 89–90 for additional information.

Refer to Part II, Item 5: Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities on page 33 of this 2025 Form 10-K for additional information regarding repurchases of the Firm’s equity securities.

Preferred stock

Preferred stock dividends were $1.1 billion, $1.3 billion, and $1.5 billion for the years ended December 31, 2025, 2024, and 2023, respectively.

During the year ended December 31, 2025, the Firm issued and redeemed certain series of non-cumulative preferred stock. Refer to Note 21 for additional information on the Firm’s preferred stock, including the issuance and redemption of preferred stock.

JPMorgan Chase & Co./2025 Form 10-K

97

Management’s discussion and analysis

Other capital requirements

Total Loss-Absorbing Capacity

The Federal Reserve’s TLAC rule requires the U.S. GSIB top-tier holding companies, including the Firm, to maintain minimum levels of external TLAC and eligible long-term debt.

The external TLAC requirements and the minimum level of eligible long-term debt requirements for the year ended December 31, 2025 are shown below:

(a)RWA is the greater of Standardized and Advanced compared to their respective regulatory capital ratio requirements.

Failure to maintain TLAC equal to or in excess of the regulatory minimum plus applicable buffers will result in limitations on the amount of capital that the Firm may distribute, such as through dividends and common share repurchases, as well as on discretionary bonus payments for certain executive officers.

The following table presents the eligible external TLAC and eligible LTD amounts, as well as a representation of these amounts as a percentage of the Firm’s total RWA and total leverage exposure. As of January 1, 2025, the benefit from the CECL capital transition provision had been fully phased out. The year ended December 31, 2024 included the impact of the CECL capital transition provisions.

December 31, 2025

December 31, 2024

(in billions, except ratio)

External TLAC

LTD

External TLAC

LTD

Total eligible amount

$

563.7 

$

246.0 

$

546.6 

$

236.8 

% of RWA

27.6 

%

12.0 

%

31.1 

%

13.5 

%

Regulatory requirements

23.0 

10.5 

23.0 

10.5 

Surplus/(shortfall)

$

93.3 

$

31.2 

$

142.3 

$

52.3 

% of total leverage exposure

10.6 

%

4.6 

%

11.3 

%

4.9 

%

Regulatory requirements

9.5 

4.5 

9.5 

4.5 

Surplus/(shortfall)

$

60.1 

$

7.4 

$

87.0 

$

19.2 

Refer to Liquidity Risk Management on pages 100–107 for further information on long-term debt issued by the Parent Company.

Refer to Part I, Item 1A: Risk Factors on pages 9–31 of this 2025 Form 10-K for information on the financial consequences to holders of the Firm’s debt and equity securities in a resolution scenario.

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JPMorgan Chase & Co./2025 Form 10-K

U.S. broker-dealer regulatory capital

J.P. Morgan Securities

JPMorganChase’s principal U.S. broker-dealer subsidiary is J.P. Morgan Securities. J.P. Morgan Securities is subject to the regulatory capital requirements of Rule 15c3-1 under the Securities Exchange Act of 1934 (the “Net Capital Rule”). J.P. Morgan Securities is also registered as a futures commission merchant and is subject to regulatory capital requirements, including those imposed by the SEC, the Commodity Futures Trading Commission (“CFTC”), the Financial Industry Regulatory Authority (“FINRA”) and the National Futures Association (“NFA”).

J.P. Morgan Securities has elected to compute its minimum net capital requirements in accordance with the “Alternative Net Capital Requirements” of the Net Capital Rule.

The following table presents J.P. Morgan Securities’ net capital.

December 31, 2025

(in millions)

Actual

Minimum

Net capital

$

27,196 

$

6,559 

J.P. Morgan Securities is registered with the SEC as a security-based swap dealer and with the CFTC as a swap dealer. As a result of additional SEC and CFTC capital and financial reporting requirements for security-based swap dealers and swap dealers, J.P. Morgan Securities is subject to alternative minimum net capital requirements and required to hold “tentative net capital” in excess of $5.0 billion. J.P. Morgan Securities is also required to notify the SEC and CFTC in the event that its tentative net capital is less than $6.0 billion. Tentative net capital is net capital before deducting market and credit risk charges as defined by the Net Capital Rule. As of December 31, 2025, J.P. Morgan Securities maintained tentative net capital in excess of the minimum and notification requirements.

Non-U.S. subsidiary regulatory capital

J.P. Morgan Securities plc

J.P. Morgan Securities plc is a wholly-owned subsidiary of JPMorgan Chase Bank, N.A. and has authority to engage in banking, investment banking and broker-dealer activities. J.P. Morgan Securities plc is jointly regulated in the U.K. by the Prudential Regulation Authority (“PRA”) and the Financial Conduct Authority (“FCA”). J.P. Morgan Securities plc is subject to the Capital Requirements Regulation (“CRR”), as adopted and amended in the U.K., and the capital rules in the PRA Rulebook. These requirements collectively represent the U.K.’s implementation of the Basel III standards. The PRA has announced that it intends to delay the U.K.’s implementation of the final Basel III

standards until January 1, 2027, with a three-year transitional period for certain aspects.

The Bank of England requires that U.K. banks, including U.K. regulated subsidiaries of overseas groups, maintain minimum requirements for own funds and eligible liabilities (“MREL”). As of December 31, 2025, J.P. Morgan Securities plc was compliant with its MREL requirements.

The following table presents J.P. Morgan Securities plc’s risk-based and leverage-based capital metrics.

December 31, 2025

Regulatory Minimum ratios(a)

(in millions, except ratios)

Actual

Total capital

$

53,554 

CET1 capital ratio

15.4 

%

4.5 

%

Tier 1 capital ratio

19.8 

6.0 

Total capital ratio

23.6 

8.0 

Tier 1 leverage ratio

5.9 

3.3 

(b)

(a)Represents minimum Pillar 1 requirements specified by the PRA. J.P. Morgan Securities plc's capital ratios as of December 31, 2025 exceeded the minimum requirements, including the additional capital requirements specified by the PRA.

(b)At least 75% of the Tier 1 leverage ratio minimum must be met with CET1 capital.

J.P. Morgan SE

JPMSE is a wholly-owned subsidiary of JPMorgan Chase Bank, N.A. and has authority to engage in banking, investment banking and markets activities. JPMSE is regulated by the European Central Bank (“ECB”), the German Financial Supervisory Authority and the German Central Bank, as well as the local regulators in each of the countries in which it operates, and it is subject to EU capital requirements under Basel III. JPMSE is subject to the EU implementation of the final Basel III standards. Those standards became effective beginning on January 1, 2025, with the exception of market risk aspects for which the effective date is January 1, 2027.

JPMSE is required by the EU Single Resolution Board to maintain MREL. As of December 31, 2025, JPMSE was compliant with its MREL requirements.

The following table presents JPMSE’s risk-based and leverage-based capital metrics.

December 31, 2025

Regulatory Minimum ratios(a)

(in millions, except ratios)

Actual

Total capital

$

54,301 

CET1 capital ratio

20.9 

%

4.5 

%

Tier 1 capital ratio

20.9 

6.0 

Total capital ratio

37.7 

8.0 

Tier 1 leverage ratio

6.4 

3.0 

(a)Represents minimum Pillar 1 requirements specified by the EU CRR. J.P. Morgan SE’s capital and leverage ratios as of December 31, 2025 exceeded the minimum requirements, including the additional capital requirements specified by EU regulators.

JPMorgan Chase & Co./2025 Form 10-K

99

Management’s discussion and analysis

LIQUIDITY RISK MANAGEMENT

Liquidity risk is the risk that the Firm will be unable to meet its cash and collateral needs as they arise or that it does not have the appropriate amount, composition and tenor of funding and liquidity to support its assets and liabilities.

Liquidity risk management

The Firm has a Liquidity Risk Management (“LRM”) function whose primary objective is to provide independent oversight of liquidity risk across the Firm. Liquidity Risk Management’s responsibilities include:

•Defining, monitoring and reporting liquidity risk metrics;

•Independently establishing and monitoring limits and indicators, including liquidity risk appetite;

•Developing a process to classify, monitor and report limit breaches;

•Performing an independent review of liquidity risk management processes to evaluate their adequacy and effectiveness;

•Monitoring and reporting internal Firmwide and legal entity liquidity stress tests, regulatory defined metrics, as well as liquidity positions, balance sheet variances and funding activities; and

•Approving or escalating for review new or updated liquidity stress assumptions.

Liquidity management

Treasury and CIO is responsible for liquidity management.

The primary objectives of the Firm’s liquidity management are to:

•Ensure that the Firm’s core businesses and material legal entities are able to operate in support of client needs and meet contractual and contingent financial obligations through normal economic cycles as well as during stress events, and

•Manage an optimal funding mix and availability of liquidity sources.

The Firm addresses these objectives through:

•Analyzing and understanding the liquidity characteristics of the assets and liabilities of the Firm, LOBs, legal entities, as well as currencies, taking into account legal, regulatory, and operational restrictions;

•Developing and maintaining internal liquidity stress testing assumptions;

•Defining and monitoring Firmwide and legal entity-specific liquidity strategies, policies, reporting and contingency funding plans;

•Managing liquidity within the Firm’s approved limits and indicators, including liquidity risk appetite tolerances;

•Managing compliance with regulatory requirements related to funding and liquidity risk; and

•Setting FTP in accordance with underlying liquidity characteristics of balance sheet assets and liabilities as well as certain off-balance sheet items.

As part of the Firm’s overall liquidity management strategy, the Firm manages liquidity and funding using a centralized, global approach designed to:

•Optimize liquidity sources and uses;

•Monitor exposures;

•Identify constraints on the transfer of liquidity between the Firm’s legal entities; and

•Maintain the appropriate amount of surplus liquidity at a Firmwide and legal entity level, where relevant.

Governance

Committees responsible for liquidity governance include the Firmwide ALCO, as well as regional ALCOs, the Treasurer Committee, and the CTC Risk Committee. In addition, the Board Risk Committee reviews and recommends to the Board of Directors, for approval, the Firm’s liquidity risk tolerances, liquidity strategy, and liquidity policy. Refer to Firmwide Risk Management on pages 83–87 for further discussion of ALCO and other risk-related committees.

Internal stress testing

The Firm conducts internal liquidity stress testing to identify liquidity risks and monitor liquidity positions at the Firm and its material legal entities under a variety of adverse scenarios, including scenarios analyzed as part of the Firm’s resolution and recovery planning. Internal stress tests are produced on a daily basis, and other stress tests are performed in response to specific market events or concerns. Liquidity stress tests assume all of the Firm’s contractual financial obligations are met and take into consideration:

•Varying levels of access to unsecured and secured funding markets;

•Estimated non-contractual and contingent cash outflows;

•Credit rating downgrades;

•Collateral haircuts; and

•Potential impediments to the availability and transferability of liquidity between jurisdictions and material legal entities such as regulatory, legal or other restrictions.

Liquidity outflows are modeled across a range of time horizons and currency dimensions and contemplate both market and idiosyncratic stresses.

Results of stress tests are considered in the formulation of the Firm’s funding plan and assessment of its liquidity position. The Parent Company acts as a source of funding for the Firm through equity and

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JPMorgan Chase & Co./2025 Form 10-K

long-term debt issuances, and its intermediate holding company, JPMorgan Chase Holdings LLC (the “IHC”), provides funding to support the ongoing operations of the Parent Company and its subsidiaries. The Firm manages liquidity at the Parent Company, the IHC, and operating subsidiaries at levels sufficient to comply with liquidity risk tolerances and minimum liquidity requirements, and to manage through periods of stress when access to normal funding sources may be disrupted.

Contingency funding plan

The Firm’s Contingency Funding Plan (“CFP”) sets out the strategies for addressing and managing liquidity resource needs during a liquidity stress event and incorporates liquidity risk limits, indicators and risk appetite tolerances. The CFP also identifies the alternative contingent funding and liquidity resources available to the Firm and its legal entities in a period of stress.

LCR and HQLA

The LCR rule requires that the Firm and JPMorgan Chase Bank, N.A. maintain an amount of eligible HQLA that is sufficient to meet their respective estimated total net cash outflows over a prospective 30 calendar-day period of significant stress. Eligible HQLA, for purposes of calculating the LCR, is the amount of unencumbered HQLA that satisfy certain operational considerations as defined in the LCR rule. HQLA primarily consist of cash and certain high-quality liquid securities as defined in the LCR rule.

Under the LCR rule, the amount of eligible HQLA held by JPMorgan Chase Bank, N.A. that is in excess of its stand-alone 100% minimum LCR requirement, and that is not transferable to non-bank affiliates, must be excluded from the Firm’s reported eligible HQLA.

Estimated net cash outflows are based on standardized stress outflow and inflow rates prescribed in the LCR rule, which are applied to the balances of the Firm’s assets, sources of funds, and obligations. The LCR for both the Firm and JPMorgan Chase Bank, N.A. is required to be a minimum of 100%.

The following table summarizes the Firm and JPMorgan Chase Bank, N.A.’s average LCR for the three months ended December 31, 2025, September 30, 2025 and December 31, 2024 based on the Firm’s interpretation of the LCR framework.

Three months ended

Average amount

(in millions)

December 31, 2025

September 30, 2025

December 31, 2024

JPMorgan Chase & Co.:

HQLA

Eligible cash(a)

$

281,117 

$

308,298 

$

396,123 

Eligible securities(b)(c)

680,862 

638,020 

464,877 

Total HQLA(d)

$

961,979 

$

946,318 

$

861,000 

Net cash outflows

$

868,500 

$

858,157 

$

763,648 

LCR

111 

%

110 

%

113 

%

Net excess eligible HQLA(d)

$

93,479 

$

88,161 

$

97,352 

JPMorgan Chase Bank, N.A.:

LCR

115 

%

117 

%

124 

%

Net excess eligible HQLA

$

138,052 

$

152,886 

$

193,682 

(a)Represents cash on deposit at central banks, including the Federal Reserve Banks.

(b)Eligible HQLA securities may be reported in securities borrowed or purchased under resale agreements, trading assets, or investment securities on the Firm’s Consolidated balance sheets. For purposes of calculating the LCR, HQLA securities are included at fair value, which may differ from the accounting treatment under U.S. GAAP.

(c)Predominantly U.S. Treasuries, U.S. GSE and government agency MBS, and sovereign bonds net of regulatory haircuts under the LCR rule.

(d)Excludes average excess eligible HQLA at JPMorgan Chase Bank, N.A. that are not transferable to non-bank affiliates.

The Firm’s average LCR for the three months ended December 31, 2025 decreased, compared with the three months ended December 31, 2024, primarily driven by repurchases of and dividends on common stock, predominantly offset by dividend payments from JPMorgan Chase Bank, N.A. to the Parent Company and activities in CIB Markets.

JPMorgan Chase Bank, N.A.’s average LCR for the three months ended December 31, 2025 decreased, compared with the three months ended September 30, 2025, primarily due to higher lending levels, largely offset by higher deposits, higher market values of HQLA-eligible investment securities and long-term debt issuance.

JPMorgan Chase Bank, N.A.’s average LCR for the three months ended December 31, 2025 decreased, compared with the three months ended December 31, 2024, driven by higher lending levels and dividend payments to the Parent Company, largely offset by higher deposits and higher market values of HQLA-eligible investment securities.

JPMorgan Chase & Co./2025 Form 10-K

101

Management’s discussion and analysis

Each of the Firm and JPMorgan Chase Bank, N.A.'s average LCR may fluctuate from period to period due to changes in their respective eligible HQLA and estimated net cash outflows as a result of ongoing business activity and from the impacts of Federal Reserve actions as well as other factors. For a further discussion of the Firm’s liquidity risk management, refer to the Firm’s U.S. LCR Disclosure reports, which are available on the Firm’s website.

Liquidity sources

In addition to the assets reported in the Firm’s eligible HQLA discussed above, the Firm had unencumbered marketable securities, such as equity and debt securities, that the Firm believes would be available to raise liquidity. This includes excess eligible HQLA securities at JPMorgan Chase Bank, N.A. that are not transferable to non-bank affiliates. The fair value of these securities was approximately $548 billion and $594 billion as of December 31, 2025 and 2024, respectively, although the amount of liquidity that could be raised at any particular time would be dependent on prevailing market conditions. The decrease compared to December 31, 2024 was driven by a decrease in excess eligible HQLA securities at JPMorgan Chase Bank, N.A., and reductions in unencumbered investment securities in Treasury and CIO.

The Firm had approximately $1.5 trillion and $1.4 trillion of available cash and securities as of December 31, 2025 and 2024, respectively. For each respective period, the amount was comprised of eligible end-of-period HQLA, excluding the impact of regulatory haircuts, of approximately $915 billion and $834 billion, and unencumbered marketable securities with a fair value of approximately $548 billion and $594 billion.

The Firm also had available borrowing capacity at the Federal Home Loan Banks (“FHLBs”) and the discount window at the Federal Reserve Banks as a result of collateral pledged by the Firm to such banks of approximately $449 billion and $413 billion as of December 31, 2025 and 2024, respectively. This borrowing capacity excludes the benefit of cash and securities reported in the Firm’s eligible HQLA or other unencumbered securities that are currently pledged at the Federal Reserve Banks discount window and other central banks. Available borrowing capacity increased, compared to December 31, 2024, due to a higher amount of commercial loans, credit card receivables, and mortgages pledged at Federal Reserve Banks and the FHLBs. Although available, the Firm does not view this borrowing capacity at the Federal Reserve Banks discount window and the other central banks as a primary source of liquidity.

NSFR

The net stable funding ratio (“NSFR”) is a liquidity requirement for large banking organizations that is intended to measure the adequacy of “available” stable funding that is sufficient to meet their “required” amounts of stable funding over a one-year horizon.

For the three months ended December 31, 2025, both the Firm and JPMorgan Chase Bank, N.A. were compliant with the 100% minimum NSFR requirement, based on the Firm’s interpretation of the final NSFR rule. Refer to the Firm's U.S. NSFR Disclosure report on the Firm’s website for additional information.

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Funding

Sources of funds

Management believes that the Firm’s unsecured and secured funding capacity is sufficient to meet its on- and off-balance sheet obligations, which includes both short- and long-term cash requirements.

The Firm funds its global balance sheet through diverse sources of funding including deposits, secured and unsecured funding in the capital markets and stockholders’ equity. Deposits are the primary funding source for JPMorgan Chase Bank, N.A. Additionally, JPMorgan Chase Bank, N.A. may access funding through short- or long-term secured borrowings, the issuance of unsecured long-term debt, or from

borrowings from the IHC. The Firm’s non-bank subsidiaries are primarily funded from long-term unsecured borrowings and short-term secured borrowings which are primarily securities loaned or sold under repurchase agreements. Excess funding is invested by Treasury and CIO in the Firm’s investment securities portfolio or deployed in cash or other short-term liquid investments based on their interest rate and liquidity risk characteristics.

Refer to Note 28 for additional information on off–balance sheet obligations.

Deposits

The table below summarizes, by LOB and Corporate, the period-end and average deposit balances as of and for the years ended December 31, 2025 and 2024.

As of or for the year ended December 31,

Average

(in millions)

2025

2024

2025

2024

Consumer & Community Banking

$

1,072,792 

$

1,056,652 

$

1,057,232 

$

1,064,215 

Commercial & Investment Bank

1,193,338 

1,073,512 

1,174,581 

1,061,488 

Asset & Wealth Management

257,316 

248,287 

245,248 

235,146 

Corporate

35,874 

27,581 

29,504 

25,793 

Total Firm

$

2,559,320 

$

2,406,032 

$

2,506,565 

$

2,386,642 

The Firm believes that deposits provide a stable source of funding and reduce the Firm’s reliance on the wholesale funding markets. A significant portion of the Firm’s deposits are consumer deposits and wholesale operating deposits, which are both considered to be stable sources of liquidity. Wholesale operating deposits are generally considered to be stable sources of liquidity because they are generated from clients that maintain operating service relationships with the Firm.

The Firm believes that average deposit balances are generally more representative of deposit trends than period-end deposit balances. However, during periods of market disruption, average deposit trends may be impacted.

Average deposits increased for the year ended December 31, 2025 compared to the year ended December 31, 2024, reflecting the net impact of:

•an increase in CIB due to net inflows related to client-driven activities in Payments and Securities Services, partially offset by net maturities of structured notes in Markets,

•an increase in AWM primarily driven by growth in both new accounts and balances in existing accounts, including the impact of higher-yielding product offerings, and

•a decrease in CCB primarily driven by increased customer spending, predominantly offset by new accounts.

Period-end deposits increased from December 31, 2024, reflecting:

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

•an increase in CCB primarily driven by new accounts, predominantly offset by increased customer spending, and

•an increase in AWM primarily driven by growth in both new accounts and balances in existing accounts, including the impact of higher-yielding product offerings, largely offset by migration into other investment products.

Refer to the Firm’s Consolidated Balance Sheets Analysis and the Business Segment & Corporate Results on pages 55–57 and pages 62–82, respectively, for further information on deposit and liability balance trends. Refer to Note 3 for further information on structured notes.

Certain deposits are covered by insurance protection that provides additional funding stability and results in a benefit to the LCR. Deposit insurance protection may be available to depositors in the countries in which the deposits are placed. For example, the FDIC provides deposit insurance protection for deposits placed in a U.S. depository institution. At December 31, 2025 and 2024, Firmwide estimated uninsured deposits were $1,558.6 billion and $1,414.0 billion, respectively, primarily reflecting wholesale operating deposits.

JPMorgan Chase & Co./2025 Form 10-K

103

Management’s discussion and analysis

Total uninsured deposits include time deposits. The table below presents an estimate of uninsured U.S. and non-U.S. time deposits, and their remaining maturities. The Firm’s estimates of its uninsured U.S. time deposits are based on data that the Firm calculates periodically under applicable FDIC regulations. For purposes of this presentation, all non-U.S. time deposits are deemed to be uninsured.

(in millions)

December 31,

2025

December 31,

2024

U.S.

Non-U.S.

U.S.

Non-U.S.

Three months or less

$

123,236 

$

71,477 

$

119,333 

$

77,253 

Over three months but within 6 months

14,381 

14,184 

11,040 

12,229 

Over six months but within 12 months

4,004 

1,256 

7,056 

1,542 

Over 12 months

664 

2,382 

823 

1,924 

Total

$

142,285 

$

89,299 

$

138,252 

$

92,948 

The table below shows the deposit and loan balances, deposits as a percentage of total liabilities, and the loans-to-deposits ratios, as of December 31, 2025 and 2024.

As of December 31,

(in billions except ratios)

2025

2024

Deposits

$

2,559.3 

$

2,406.0 

Deposits as a % of total liabilities

63 

%

66 

%

Loans

$

1,493.4 

$

1,348.0 

Loans-to-deposits ratio

58 

%

56 

%

The following table provides a summary of the average balances and average interest rates of JPMorganChase’s deposits for the years ended December 31, 2025, 2024, and 2023.

Year ended December 31,

Average balances

Average interest rates

(in millions, except interest rates)

2025

2024

2023

2025

2024

2023

U.S. offices

Noninterest-bearing

$

572,014 

$

611,734 

$

635,791 

NA

NA

NA

Interest-bearing

Demand(a)

321,145 

282,533 

279,725 

3.26 

%

3.90 

%

3.50 

%

Savings(b)

875,519 

800,964 

864,558 

1.41 

1.39 

1.10 

Time

222,983 

223,503 

145,827 

3.96 

4.93 

4.74 

Total interest-bearing deposits

1,419,647 

1,307,000 

1,290,110 

2.23 

2.54 

2.03 

Total deposits in U.S. offices

1,991,661 

1,918,734 

1,925,901 

1.59 

1.73 

1.36 

Non-U.S. offices

Noninterest-bearing

32,169 

26,858 

24,747 

NA

NA

NA

Interest-bearing

Demand

391,123 

346,179 

321,976 

2.34 

3.13 

2.71 

Time

91,612 

94,871 

86,443 

4.73 

5.86 

5.82 

Total interest-bearing deposits

482,735 

441,050 

408,419 

2.79 

3.72 

3.37 

Total deposits in non-U.S. offices

514,904 

467,908 

433,166 

2.62 

3.50 

3.18 

Total deposits

$

2,506,565 

$

2,386,642 

$

2,359,067 

1.80 

%

2.08 

%

1.70 

%

(a)Includes Negotiable Order of Withdrawal accounts, and certain trust accounts.

(b)Includes Money Market Deposit Accounts.

Refer to Note 17 for additional information on deposits.

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JPMorgan Chase & Co./2025 Form 10-K

The following table summarizes short-term and long-term funding, excluding deposits, as of December 31, 2025 and 2024, and average balances for the years ended December 31, 2025 and 2024. Refer to the Consolidated Balance Sheets Analysis on pages 55–57 and Note 11 for additional information.

Sources of funds (excluding deposits)

As of or for the year ended December 31,

Average

(in millions)

2025

2024

2025

2024

Commercial paper

$

12,111 

$

14,932 

$

12,274 

$

11,398 

Other borrowed funds

15,031 

13,018 

14,981 

12,040 

Federal funds purchased

199 

567 

1,413 

1,547 

Total short-term unsecured funding

$

27,341 

$

28,517 

$

28,668 

$

24,985 

Securities sold under agreements to repurchase(a)

$

433,161 

$

291,500 

$

516,262 

$

357,144 

Securities loaned(a)

9,036 

4,768 

9,834 

5,129 

Other borrowed funds

37,634 

24,943 

38,638 

25,504 

Obligations of Firm-administered multi-seller conduits(b)

18,174 

18,228 

17,764 

18,620 

Total short-term secured funding

$

498,005 

$

339,439 

$

582,498 

$

406,397 

Senior notes

$

210,571 

$

203,639 

$

209,346 

$

199,908 

Subordinated debt

20,101 

16,060 

17,943 

18,614 

Structured notes(c)

130,621 

98,792 

113,362 

93,483 

Total long-term unsecured funding

$

361,293 

$

318,491 

$

340,651 

$

312,005 

Credit card securitization(b)

$

5,884 

$

5,312 

$

5,723 

$

5,138 

FHLB advances

18,159 

29,257 

22,929 

35,040 

Purchase Money Note(d)

49,435 

49,207 

49,312 

49,090 

Other long-term secured funding(e)

6,319 

4,463 

5,756 

4,676 

Total long-term secured funding

$

79,797 

$

88,239 

$

83,720 

$

93,944 

Preferred stock(f)

$

20,045 

$

20,050 

$

20,037 

$

24,054 

Common stockholders’ equity(f)

$

342,393 

$

324,708 

$

332,754 

$

312,370 

(a)Primarily consists of short-term securities loaned or sold under agreements to repurchase.

(b)Included in beneficial interests issued by consolidated variable interest entities on the Firm’s Consolidated balance sheets.

(c)Includes certain TLAC-eligible long-term unsecured debt issued by the Parent Company.

(d)Reflects the Purchase Money Note associated with the First Republic acquisition. Refer to Note 34 for additional information.

(e)Includes long-term structured notes that are secured.

(f)Refer to Capital Risk Management on pages 89–99, Consolidated statements of changes in stockholders’ equity on page 168, Note 21 and Note 22 for additional information on preferred stock and common stockholders’ equity.

Short-term funding

The Firm’s primary source of short-term secured funding is securities sold under agreements to repurchase. These instruments are secured predominantly by high-quality securities collateral, including government-issued debt and U.S. GSE and government agency MBS. Securities sold under agreements to repurchase increased at December 31, 2025, compared with December 31, 2024, driven by Markets, primarily reflecting higher secured financing of trading assets.

The increases in secured other borrowed funds at December 31, 2025 from December 31, 2024, and for the average year ended December 31, 2025, compared to the prior year, were primarily due to higher financing requirements in Markets.

The balances associated with securities loaned or sold under agreements to repurchase fluctuate over time due to investment and financing activities of clients, the Firm’s demand for financing, the ongoing management of the mix of the Firm’s liabilities, including with respect to liquidity and capital considerations, as well as other market and portfolio factors.

The Firm’s primary sources of short-term unsecured funding consist of issuances of wholesale commercial paper and other borrowed funds.

The decrease in commercial paper for the year ended December 31, 2025, compared to the prior year, was primarily driven by strategic short-term liquidity management.

The increase in unsecured other borrowed funds for the average year ended December 31, 2025, compared to the prior year, was primarily due to net issuances of structured notes in Markets due to client demand and an increase in the fair value of such instruments.

JPMorgan Chase & Co./2025 Form 10-K

105

Management’s discussion and analysis

Long-term funding

Long-term funding provides an additional source of stable funding and liquidity for the Firm. The Firm’s long-term funding plan is driven primarily by expected client activity, liquidity considerations and regulatory requirements. Long-term funding objectives include maintaining diversification, maximizing market access and optimizing funding costs through various funding markets, tenors and currencies.

Unsecured funding and issuance

The significant majority of the Firm’s total outstanding long-term debt has been issued by the Parent Company to provide flexibility in support of the funding needs of both bank and non-bank subsidiaries. The Parent Company advances substantially all net funding proceeds to its subsidiary, the IHC. The IHC does not issue debt to external counterparties. The increase in structured notes at December 31, 2025 from December 31, 2024, and for the average year ended December 31, 2025, compared to the prior year, was primarily driven by net issuances of structured notes in Markets due to client demand and an increase in the fair value of such instruments.

The following table summarizes long-term unsecured issuance and maturities or redemptions for the years ended December 31, 2025 and 2024. Refer to Note 20 for additional information on the IHC and long-term debt.

Long-term unsecured funding

Year ended December 31,

2025

2024

2025

2024

(Notional in millions)

Parent Company

Subsidiaries

Issuance

Senior notes issued in the U.S. market

$

19,000 

$

37,000 

$

— 

$

— 

Senior notes issued in non-U.S. markets

2,084 

4,079 

— 

— 

Total senior notes

21,084 

41,079 

— 

— 

Subordinated debt

4,000 

— 

— 

— 

Structured notes(a)

4,975 

3,944 

74,346 

54,993 

Total long-term unsecured funding – issuance

$

30,059 

$

45,023 

$

74,346 

$

54,993 

Maturities/redemptions

Senior notes

$

22,457 

$

25,765 

$

65 

$

65 

Subordinated debt

317 

3,097 

— 

250 

Structured notes

2,929 

892 

56,047 

47,425 

Total long-term unsecured funding – maturities/redemptions

$

25,703 

$

29,754 

$

56,112 

$

47,740 

(a)Includes certain TLAC-eligible long-term unsecured debt issued by the Parent Company.

Secured funding and issuance

The Firm can also raise secured long-term funding through securitization of consumer credit card loans and FHLB advances. The following table summarizes the credit card securitization and FHLB advances, as well as other long-term secured funding sources, with their respective maturities or redemptions, as applicable, for the years ended December 31, 2025 and 2024, respectively.

Long-term secured funding

Year ended December 31,

Issuance

Maturities/Redemptions

(in millions)

2025

2024

2025

2024

Credit card securitization

$

1,498 

$

2,348 

$

1,000 

$

— 

FHLB advances

12,500 

6,000 

23,644 

18,050 

Other long-term secured funding(a)

2,376 

1,578 

1,632 

1,049 

Total long-term secured funding

$

16,374 

$

9,926 

$

26,276 

$

19,099 

(a)Includes long-term structured notes that are secured.

The Firm’s wholesale businesses also securitize loans for client-driven transactions which are not considered to be a source of funding for the Firm and are not included in the table above. Refer to Note 14 for a further description of client-driven loan securitizations.

106

JPMorgan Chase & Co./2025 Form 10-K

Credit ratings

The cost and availability of financing are influenced by credit ratings. Reductions in these ratings could have an adverse effect on the Firm’s access to liquidity sources, increase the cost of funds, trigger additional collateral or funding requirements and decrease the number of investors and counterparties willing to lend to the Firm. The nature and magnitude of the impact of ratings downgrades depends on numerous contractual and behavioral factors, which the Firm

believes are incorporated in its liquidity risk and stress testing metrics. The Firm believes that it maintains sufficient liquidity to withstand a potential decrease in funding capacity due to ratings downgrades.

Additionally, the Firm’s funding requirements for VIEs and other third-party commitments may be adversely affected by a decline in credit ratings. Refer to Notes 5 and 14 for additional information.

The credit ratings of the Parent Company and certain of its principal subsidiaries as of December 31, 2025 were as follows:

JPMorgan Chase & Co.

JPMorgan Chase Bank, N.A.

 J.P. Morgan SE

J.P. Morgan Securities LLC

 J.P. Morgan Securities plc

December 31, 2025

Long-term issuer

Short-term issuer

Outlook

Long-term issuer

Short-term issuer

Outlook

Long-term issuer

Short-term issuer

Outlook

Long-term issuer

Short-term issuer

Outlook

Moody’s Investors Service(a)

A1

P-1

Stable

Aa2

P-1

Stable(b)

Aa2

P-1

Stable

Aa3

P-1

Stable

Standard & Poor’s

A

A-1

Stable

AA-

A-1+

Stable

AA-

A-1+

Stable

AA-

A-1+

Stable

Fitch Ratings

AA-

F1+

Stable

AA

F1+

Stable

AA

F1+

Stable

AA

F1+

Stable

(a)On November 3, 2025, Moody’s revised the outlook for the Parent Company, J.P. Morgan Securities LLC, J.P. Morgan Securities plc and J.P. Morgan SE to stable from positive, and revised J.P. Morgan SE’s long-term issuer rating to Aa2 from Aa3.

(b)On May 19, 2025, Moody’s revised JPMorgan Chase Bank, N.A.’s outlook to stable from developing, and this change was related to Moody’s one-notch downgrade of the long-term issuer rating of the U.S. Government announced on May 16, 2025. Moody’s also affirmed JPMorgan Chase Bank, N.A.’s long-term issuer rating.

JPMorganChase’s unsecured debt does not contain requirements that would call for an acceleration of payments, maturities or changes in the structure of the existing debt, provide any limitations on future borrowings or require additional collateral, based on unfavorable changes in the Firm’s credit ratings, financial ratios, earnings, or stock price.

Critical factors in maintaining high credit ratings include a stable and diverse earnings stream, strong capital and liquidity ratios, strong credit quality and risk management controls, and diverse funding sources. Rating agencies continue to evaluate economic and geopolitical trends, regulatory developments, future profitability, risk management practices, and litigation matters, as well as their broader ratings methodologies. Changes in any of these factors could lead to changes in the Firm’s credit ratings.

JPMorgan Chase & Co./2025 Form 10-K

107

REPUTATION RISK MANAGEMENT

Reputation risk is the risk of damage to the trust, affinity or goodwill for the Firm held by clients, employees and investors that can result from the Firm’s decisions to engage or not engage with a client or in a business activity and which may lead to negative commercial impacts. The Firm’s decisions related to clients and business activities are made based on a range of commercial considerations, including operational capabilities and expertise, servicing costs, risk relative to opportunity, the prioritization of finite resources and, when relevant, reputation risk considerations. The Firm manages reputation risk through established policies, standards and procedures that are integrated across the LOBs and Corporate functions. Potential reputation risk matters may be escalated to governance forums, as appropriate, including LOB Reputation Risk Committees. The Board Risk Committee also regularly receives information on reputation risk matters, as appropriate.

108

JPMorgan Chase & Co./2025 Form 10-K

CREDIT AND INVESTMENT RISK MANAGEMENT

Credit and investment risk is the risk associated with the default or change in credit profile of a client, counterparty or customer; or loss of principal or a reduction in expected returns on investments, including consumer credit risk, wholesale credit risk, and investment portfolio risk.

Credit risk management

Credit risk is the risk associated with the default or change in credit profile of a client, counterparty or customer. The Firm provides credit to a variety of clients and customers, ranging from large corporate and institutional clients to individual consumers and small businesses. In its consumer businesses, the Firm is exposed to credit risk primarily through its home lending, credit card, auto, and business banking businesses. In its wholesale businesses, the Firm is exposed to credit risk through its underwriting, lending, market-making, and hedging activities with and for clients and counterparties, as well as through its operating services activities (such as cash management and clearing activities), and securities financing activities. The Firm is also exposed to credit risk through its investment securities portfolio and cash placed with banks.

Credit Risk Management monitors and measures credit risk throughout the Firm, and defines credit risk policies, procedures and limits. The Firm’s credit risk management governance includes the following activities:

•Maintaining a credit risk policy framework

•Monitoring and measuring credit risk across all portfolio segments, including transaction and exposure approval

•Setting industry and geographic concentration limits, as appropriate, and setting guidelines for credit review and analysis

•Assigning and maintaining credit approval authorities in connection with the approval of credit exposure

•Monitoring and independent assessment of criticized exposures and delinquent loans, and

•Estimating credit losses, including periodic review and refinement of underlying assumptions, and supporting appropriate credit risk-based capital management

Risk identification and measurement

To measure credit risk, the Firm employs several methodologies for estimating the likelihood of obligor or counterparty default. Methodologies for measuring credit risk vary depending on several factors, including type of asset (e.g., consumer versus wholesale), risk measurement parameters (e.g., delinquency status and borrower’s credit score versus wholesale risk-rating) and risk management and collection processes (e.g., retail collection center versus centrally managed workout groups). Credit risk measurement is based on the probability of default of an obligor or counterparty, the loss severity given a default event and the exposure at default.

Based on these factors and the methodology and estimates described in Note 13 and Note 10, the Firm estimates credit losses for its exposures. The allowance for loan losses reflects estimated credit losses related to the consumer and wholesale held-for-investment loan portfolios, the allowance for lending-related commitments reflects estimated credit losses related to the Firm’s lending-related commitments and the allowance for investment securities reflects estimated credit losses related to the investment securities portfolio. Refer to Note 13, Note 10 and Critical Accounting Estimates used by the Firm on pages 154–157 for further information.

In addition, potential and unexpected credit losses are reflected in the allocation of credit risk capital and represent the potential volatility of actual losses relative to the established allowances for loan losses and lending-related commitments. The analyses for these losses include stress testing that considers alternative economic scenarios as described below.

Stress testing

Stress testing is important in assessing, measuring and monitoring credit risk in the Firm’s credit portfolio. The stress testing process assesses the potential impact of alternative economic and business scenarios on estimated credit losses for the Firm. Economic scenarios and the underlying parameters are defined centrally, articulated in terms of macroeconomic factors and applied across the businesses. The stress test results may indicate credit migration, changes in delinquency trends and potential losses in the credit portfolio. In addition to the periodic stress testing processes, management also considers additional stresses outside these scenarios, including industry and country- specific stress scenarios, as appropriate. The Firm uses stress testing to inform decisions on setting risk appetite both at a Firm and LOB level, as well as to assess the impact of stress on individual counterparties.

JPMorgan Chase & Co./2025 Form 10-K

109

Management’s discussion and analysis

Risk monitoring and management

The Firm has developed policies and practices that are designed to preserve the independence and integrity of the approval and decision-making process for extending credit so that credit risks are assessed accurately, approved properly, and monitored regularly at both the transaction and portfolio levels. The policy framework establishes credit approval authorities, concentration limits, risk-rating methodologies, portfolio review parameters and guidelines for management of distressed exposures. In addition, certain models, assumptions and inputs used in evaluating and monitoring credit risk are independently validated by groups that are separate from the LOBs.

Consumer credit risk is monitored for delinquency and other trends, including any concentrations at the portfolio level, as certain of these trends can be addressed through changes in underwriting policies and portfolio guidelines. Consumer Risk Management evaluates delinquency and other trends against business expectations, current and forecasted economic conditions, and industry benchmarks. Historical and forecasted economic performance and trends are incorporated into the modeling of estimated consumer credit losses and are part of the monitoring of the credit risk profile of the portfolio.

Wholesale credit risk is monitored regularly at an aggregate portfolio, industry, and individual client and counterparty level with established concentration limits that are reviewed and revised periodically as deemed appropriate by management. Industry and counterparty limits, as measured in terms of exposure and risk appetite, are subject to stress-based loss constraints.

Management of the Firm’s wholesale credit risk exposure is accomplished through a number of means, including:

•Loan underwriting and credit approval processes

•Loan syndications and participations

•Loan sales and securitizations

•Credit derivatives

•Master netting agreements, and

•Collateral and other risk-reduction techniques

In addition to Credit Risk Management, an independent Credit Review function is responsible for:

•Independently assessing risk ratings assigned to exposures in the Firm’s wholesale credit portfolio and the timeliness of risk rating changes initiated by responsible business units; and

•Evaluating the effectiveness of the credit management processes of the LOBs and Corporate, including the adequacy of credit analyses and risk rating/loss given default (“LGD”) rationales, proper monitoring and management of credit exposures, and compliance with applicable grading policies and underwriting guidelines.

Refer to Note 12 for further discussion of consumer and wholesale loans.

Risk reporting

To enable monitoring of credit risk and effective decision-making, aggregate credit exposure, credit quality forecasts, concentration levels and risk profile changes are reported regularly to senior members of Credit Risk Management. Detailed portfolio reporting of industry, clients, counterparties and customers, product and geography are prepared, and the appropriateness of the allowance for credit losses is reviewed by senior management at least on a quarterly basis. Through the risk reporting and governance structure, credit risk trends and limit exceptions are provided regularly to, and discussed with, risk committees, senior management and the Board of Directors.

110

JPMorgan Chase & Co./2025 Form 10-K

CREDIT PORTFOLIO

Credit risk is the risk associated with the default or change in credit profile of a client, counterparty or customer.

In the following tables, total loans include loans retained (i.e., held-for-investment); loans held-for-sale; and certain loans accounted for at fair value. The following tables do not include loans which the Firm accounts for at fair value and classifies as trading assets; refer to Notes 2 and 3 for further information regarding these loans. Refer to Notes 12, 28, and 5 for additional information on the Firm’s loans, lending-related commitments and derivative receivables, including the Firm’s related accounting policies.

Refer to Note 10 for information regarding the credit risk inherent in the Firm’s investment securities portfolio; and refer to Note 11 for information regarding credit risk inherent in the securities financing portfolio. Refer to Consumer Credit Portfolio on pages 112–117 and Note 12 for further discussions of the consumer credit environment, consumer loans and nonperforming exposure. Refer to Wholesale Credit Portfolio on pages 118–128 and Note 12 for further discussions of the wholesale credit environment, wholesale loans and nonperforming exposure.

Total credit portfolio

December 31,

(in millions)

Credit exposure

Nonperforming(d)

2025

2024

2025

2024

Loans retained

$

1,408,905 

$

1,299,590 

$

8,273 

$

7,175 

Loans held-for-sale

13,840 

7,048 

67 

160 

Loans at fair value

70,684 

41,350 

1,517 

1,502 

Total loans

1,493,429 

1,347,988 

9,857 

8,837 

Derivative receivables

57,777 

60,967 

204 

145 

Receivables from customers(a)

47,336 

51,929 

— 

— 

Total credit-related assets

1,598,542 

1,460,884 

10,061 

8,982 

Assets acquired in loan satisfactions

Real estate owned

NA

NA

267 

284 

Other

NA

NA

31 

34 

Total assets acquired in loan satisfactions

NA

NA

298 

318 

Lending-related commitments

1,817,307 

(c)

1,577,622 

925 

737 

Total credit portfolio

$

3,415,849 

$

3,038,506 

$

11,284 

$

10,037 

Credit derivatives and credit-related notes used in credit portfolio management activities(b)

$

(24,383)

$

(41,367)

$

— 

$

— 

 Liquid securities and other cash collateral held against derivatives

(28,891)

(28,160)

NA

NA

(a)Receivables from customers reflect held-for-investment margin loans to brokerage clients in CIB, CCB and AWM; these are reported within accrued interest and accounts receivable on the Consolidated balance sheets.

(b)Represents the net notional amount of protection purchased and sold through credit derivatives and credit-related notes used to manage credit exposures.

(c)Includes estimated total credit exposure related to the Apple Card transaction at the time that the transaction is expected to close of approximately $104 billion, including approximately $23 billion of estimated drawn loans.

(d)Excludes mortgage loans past due and insured by U.S. government agencies, which are primarily 90 or more days past due. These loans have been excluded based upon the government guarantee. At December 31, 2025 and 2024, mortgage loans 90 or more days past due and insured by U.S. government agencies were $198 million and $121 million, respectively. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance.

The following table provides information on Firmwide nonaccrual loans to total loans.

December 31,

(in millions, except ratios)

2025

2024

Total nonaccrual loans

$

9,857 

$

8,837 

Total loans

1,493,429 

1,347,988 

Firmwide nonaccrual loans to total loans outstanding

0.66 

%

0.66 

%

The following table provides information about the Firm’s net charge-offs.

December 31,

(in millions, except ratios)

2025

2024

Net charge-offs

$

9,849 

$

8,638 

Average retained loans

1,335,675 

1,271,344 

Net charge-off rate

0.74 

%

0.68 

%

JPMorgan Chase & Co./2025 Form 10-K

111

Management’s discussion and analysis

CONSUMER CREDIT PORTFOLIO

The Firm’s retained consumer portfolio consists primarily of loans and lending-related commitments for residential real estate, credit card, scored auto and business banking. The consumer credit portfolio also includes loans at fair value, predominantly in residential real estate. The Firm’s focus is on serving primarily the prime segment of the consumer credit market. Originated mortgage loans are retained in the residential real estate portfolio, securitized or sold to U.S. government agencies and U.S. government-sponsored enterprises; other types of consumer loans are typically retained on the balance sheet. Refer to Note 12 for further information on the consumer loan portfolio. Refer to Note 28 for further information on lending-related commitments.

112

JPMorgan Chase & Co./2025 Form 10-K

The following tables present consumer credit-related information with respect to the scored credit portfolio held in CCB, AWM, CIB and Corporate.

Consumer credit portfolio

December 31,

(in millions)

Credit exposure

Nonaccrual loans(j)

2025

2024

2025

2024

Consumer, excluding credit card

Residential real estate(a)

$

303,531 

$

309,513 

$

3,632 

$

2,984 

Auto and other(b)(c)

65,210 

66,821 

243 

249 

Total loans - retained

368,741 

376,334 

3,875 

3,233 

Loans held-for-sale

334 

945 

59 

155 

Loans at fair value(d)

33,183 

15,531 

739 

538 

Total consumer, excluding credit card loans

402,258 

392,810 

4,673 

3,926 

Lending-related commitments(e)

43,587 

44,844 

Total consumer exposure, excluding credit card

445,845 

437,654 

Credit card

Loans retained(f)

247,797 

232,860 

NA

NA

Total credit card loans

247,797 

232,860 

NA

NA

Lending-related commitments(e)(g)

1,177,766 

(i)

1,001,311 

Total credit card exposure

1,425,563 

1,234,171 

Total consumer credit portfolio

$

1,871,408 

$

1,671,825 

$

4,673 

$

3,926 

Credit-related notes used in credit portfolio management activities(h)

$

(485)

$

(479)

Year ended December 31,

(in millions, except ratios)

Net charge-offs/(recoveries)

Average loans - retained

Net charge-off/(recovery) rate(k)

2025

2024

2025

2024

2025

2024

Consumer, excluding credit card

Residential real estate

$

(115)

$

(101)

$

305,362 

$

316,042 

(0.04)

%

(0.03)

%

Auto and other

694 

775 

65,876 

67,959 

1.05 

1.14 

Total consumer, excluding credit card - retained

579 

674 

371,238 

384,001 

0.16 

0.18 

Credit card - retained

7,672 

7,142 

231,644 

214,033 

3.31 

3.34 

Total consumer - retained

$

8,251 

$

7,816 

$

602,882 

$

598,034 

1.37 

%

1.31 

%

(a)Includes scored mortgage and home equity loans held in CCB and AWM.

(b)At December 31, 2025 and 2024, excluded operating lease assets of $20.0 billion and $12.8 billion, respectively. These operating lease assets are included in other assets on the Firm’s Consolidated balance sheets. Refer to Note 18 for further information.

(c)Includes scored auto and business banking loans, and overdrafts.

(d)Includes scored mortgage loans held in CCB and CIB, and other consumer unsecured loans in CIB.

(e)Credit card, home equity and certain business banking lending-related commitments represent the total available lines of credit for these products. The Firm has not experienced, and does not anticipate, that all available lines of credit would be used at the same time. Refer to Note 28 for further information.

(f)Includes billed interest and fees.

(g)Also includes commercial card lending-related commitments primarily in CIB.

(h)Represents the notional amount of protection obtained through the issuance of credit-related notes that reference certain pools of residential real estate and auto loans in the retained consumer portfolio.

(i)Includes estimated total credit exposure related to the Apple Card transaction at the time that the transaction is expected to close of approximately $104 billion, including approximately $23 billion of estimated drawn loans.

(j)Excludes mortgage loans past due and insured by U.S. government agencies, which are primarily 90 or more days past due. These loans have been excluded based upon the government guarantee. At December 31, 2025 and 2024, mortgage loans 90 or more days past due and insured by U.S. government agencies were $198 million and $121 million, respectively. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status, as permitted by regulatory guidance.

(k)Average consumer loans held-for-sale and loans at fair value were $23.7 billion and $17.2 billion for the years ended December 31, 2025 and 2024, respectively. These amounts were excluded when calculating net charge-off/(recovery) rates.

JPMorgan Chase & Co./2025 Form 10-K

113

Management’s discussion and analysis

Maturities and sensitivity to changes in interest rates

The table below sets forth loan maturities by scheduled repayments, by class of loan and the distribution between fixed and floating interest rates based on the stated terms of the loan agreements. The Firm estimated the principal repayment amounts for both the residential real estate and auto and other loan classes by calculating the weighted-average loan balance and interest rates for loan pools based on remaining loan term. Refer to Note 12 for further information on loan classes.

December 31, 2025

(in millions)

Within

1 year(a)

1-5

years

5-15

years

After 15 years

Total

Consumer, excluding credit card

Residential real estate

$

35,842 

$

26,960 

$

110,981 

$

159,365 

$

333,148 

Auto and other

21,009 

(b)

42,518 

5,579 

4 

69,110 

Total consumer, excluding credit card loans

$

56,851 

$

69,478 

$

116,560 

$

159,369 

$

402,258 

Total credit card loans

$

245,850 

$

1,932 

$

15 

$

— 

$

247,797 

Total consumer loans

$

302,701 

$

71,410 

$

116,575 

$

159,369 

$

650,055 

Loans due after one year at fixed interest rates

Residential real estate

$

19,270 

$

56,134 

$

69,232 

Auto and other

42,358 

3,121 

4 

Credit card

1,932 

15 

— 

Loans due after one year at variable interest rates

Residential real estate

$

7,690 

$

54,847 

$

90,133 

Auto and other

160 

2,458 

— 

Total consumer loans

$

71,410 

$

116,575 

$

159,369 

(a)Includes loans held-for-sale and loans at fair value.

(b)Includes overdrafts.

114

JPMorgan Chase & Co./2025 Form 10-K

Consumer, excluding credit card

Portfolio analysis

Loans increased compared to December 31, 2024, primarily driven by higher residential real estate loans at fair value.

The following discussions provide information concerning individual loan products. Refer to Note 12 for further information about this portfolio, including information about delinquencies, loan modifications and other credit quality indicators.

Residential real estate: The residential real estate portfolio, including loans held-for-sale and loans at fair value, predominantly consists of prime mortgage loans and home equity lines of credit.

Retained loans decreased compared to December 31, 2024, driven by paydowns, predominantly offset by originations. Retained nonaccrual loans increased compared to December 31, 2024, primarily driven by forbearances granted to certain borrowers impacted by the wildfires in Los Angeles County, California in January 2025. Net recoveries were higher for the year ended December 31, 2025 compared to the prior year, driven by loan sales.

Loans held-for-sale and nonaccrual loans held-for-sale decreased compared to December 31, 2024, reflecting loan sales.

Loans at fair value increased compared to December 31, 2024, as purchases outpaced sales in CIB and originations outpaced warehouse loan sales in Home Lending. Nonaccrual loans at fair value increased compared to December 31, 2024, driven by CIB.

At December 31, 2025 and 2024, the carrying values of retained interest-only residential mortgage loans were $88.8 billion and $88.9 billion, respectively. These loans have an interest-only payment period generally followed by an adjustable-rate or fixed-rate fully amortizing payment period to maturity and are typically originated as higher-balance loans to higher-income borrowers. The credit performance of this portfolio is comparable to the performance of the broader prime mortgage portfolio.

The carrying value of retained home equity lines of credit outstanding was $13.2 billion at December 31, 2025, including $3.3 billion of HELOCs that have recast from interest-only to fully amortizing payments or have been modified, and $3.2 billion of interest-only balloon HELOCs, which primarily mature after 2030. The Firm manages the risk of HELOCs during their revolving period by reducing or canceling the undrawn line in accordance with the contract or to the extent otherwise permitted by law, including when there has been a demonstrable decline in the creditworthiness of the borrower or significant decrease in the value of the underlying property.

The following table provides a summary of the Firm’s

residential mortgage portfolio insured and/or guaranteed by U.S. government agencies, predominantly loans held-for-sale and loans at fair value. The Firm monitors its exposure to certain potential unrecoverable claim payments related to government-insured loans and considers this exposure in estimating the allowance for loan losses.

(in millions)

December 31, 2025

December 31, 2024

Current

$

840 

$

462 

30-89 days past due

121 

72 

90 or more days past due

198 

121 

Total government guaranteed loans

$

1,159 

$

655 

Geographic composition and current estimated loan-to-value ratio of residential real estate loans

At December 31, 2025, $213.1 billion, or 70%, of the total retained residential real estate loan portfolio, was concentrated in California, New York, Florida, Texas and Massachusetts, compared to $217.7 billion, or 70%, at December 31, 2024.

Average current estimated loan-to-value (“LTV”) ratios were relatively flat compared to December 31, 2024.

Refer to Note 12 for information on the geographic composition and current estimated LTVs of the Firm’s residential real estate loans.

JPMorgan Chase & Co./2025 Form 10-K

115

Management’s discussion and analysis

Auto and other: The auto and other loan portfolio, including loans at fair value, generally consists of prime-quality scored auto and business banking loans, other consumer unsecured loans, and overdrafts. The portfolio increased compared to December 31, 2024, primarily driven by an increase in loans at fair value due to net purchases of other consumer unsecured loans in CIB. Net charge-offs decreased compared to the prior year, primarily due to lower scored auto net charge-offs, reflecting improved used vehicle valuations. Refer to Note 14 for further information on securitization activity.

Nonperforming assets

The following table presents information as of December 31, 2025 and 2024, about consumer, excluding credit card, nonperforming assets.

Nonperforming assets(a)

December 31,

(in millions)

2025

2024

Nonaccrual loans

Residential real estate

$

4,381 

$

3,665 

Auto and other

292 

261 

Total nonaccrual loans

4,673 

3,926 

Assets acquired in loan satisfactions

Real estate owned

103 

78 

Other

31 

34 

Total assets acquired in loan satisfactions

134 

112 

Total nonperforming assets

$

4,807 

$

4,038 

(a)Excludes mortgage loans past due and insured by U.S. government agencies, which are primarily 90 or more days past due. These loans have been excluded based upon the government guarantee. At December 31, 2025 and 2024, mortgage loans 90 or more days past due and insured by U.S. government agencies were $198 million and $121 million, respectively.

Nonaccrual loans

The following table presents changes in consumer, excluding credit card, nonaccrual loans for the years ended December 31, 2025 and 2024.

Nonaccrual loan activity

Year ended December 31,

(in millions)

2025

2024

Beginning balance

$

3,926 

$

4,203 

Additions:

4,506 

3,225 

Reductions:

Principal payments and other

962 

894 

Sales

760 

803 

Charge-offs

643 

665 

Returned to performing status

1,200 

963 

Foreclosures and other liquidations

194 

177 

Total reductions

3,759 

3,502 

Net changes

747 

(277)

Ending balance

$

4,673 

$

3,926 

Refer to Note 12 for further information about the consumer credit portfolio, including information about delinquencies, other credit quality indicators and loans that were in the process of active or suspended foreclosure.

116

JPMorgan Chase & Co./2025 Form 10-K

Credit card

Total credit card loans increased compared to December 31, 2024, reflecting growth from new accounts and revolving balances. The December 31, 2025 30+ and 90+ day delinquency rates of 2.16% and 1.10%, respectively, decreased compared to the December 31, 2024 30+ and 90+ day delinquency rates of 2.17% and 1.14%, respectively, in line with the Firm’s expectations. Net charge-offs increased for the year ended December 31, 2025 compared to the prior year, reflecting loan growth.

Consistent with the Firm’s policy, all credit card loans typically remain on accrual status until charged off. However, the Firm’s allowance for loan losses includes the estimated uncollectible portion of accrued and billed interest and fee income.

Geographic and FICO composition of credit card loans

At December 31, 2025, $116.3 billion, or 47% of the total retained credit card loan portfolio, was concentrated in California, Texas, New York, Florida and Illinois, compared to $109.0 billion, or 47%, at December 31, 2024.

Refer to Note 12 for further information about this portfolio, including information about delinquencies, geographic and FICO composition.

JPMorgan Chase & Co./2025 Form 10-K

117

Management’s discussion and analysis

WHOLESALE CREDIT PORTFOLIO

In its wholesale businesses, the Firm is exposed to credit risk primarily through its underwriting, lending, market-making, and hedging activities with and for clients and counterparties, as well as through various operating services (such as cash management and clearing activities), securities financing activities and cash placed with banks. A portion of the loans originated or acquired by the Firm’s wholesale businesses is generally retained on the balance sheet. The Firm distributes a significant percentage of the loans that it originates into the market as part of its syndicated loan business and to manage portfolio concentrations and credit risk. The wholesale portfolio is actively managed, in part by conducting ongoing, in-depth reviews of client credit quality and transaction structure, inclusive of collateral where applicable, and of industry, product and client concentrations. Refer to the industry discussion on pages 120–123 for further information.

The Firm’s wholesale credit portfolio includes exposure held in CIB, AWM and Corporate, and risk-rated exposure held in CCB, for which the wholesale methodology is applied when determining the allowance for loan losses.

As of December 31, 2025, loans increased by $121.1 billion, predominantly driven by higher loans in CIB, primarily in Markets, and higher securities-based lending in AWM, both associated with higher client demand. Lending-related commitments increased by $64.5 billion, predominantly driven by higher commitments in CIB, including held-for-sale commitments.

As of December 31, 2025, nonperforming exposure increased by $478 million, driven by certain exposures in Technology, Media & Telecommunications, Oil & Gas and Utilities, in each case primarily resulting from downgrades, largely offset by certain exposures in Healthcare and Consumer & Retail, primarily due to charge-off activity, upgrades, and loan sales.

Wholesale credit portfolio

December 31,

(in millions)

Credit exposure

Nonperforming

2025

2024

2025

2024

Loans retained

$

792,367 

$

690,396 

$

4,398 

$

3,942 

Loans held-for-sale

13,506 

6,103 

8 

5 

Loans at fair value

37,501 

25,819 

778 

964 

Loans

843,374 

722,318 

5,184 

4,911 

Derivative receivables

57,777 

60,967 

204 

145 

Receivables from customers(a)

47,336 

51,929 

— 

— 

Total wholesale credit-related assets

948,487 

835,214 

5,388 

5,056 

Assets acquired in loan satisfactions

Real estate owned

NA

NA

164 

206 

Total assets acquired in loan satisfactions

NA

NA

164 

206 

Lending-related commitments

595,954 

531,467 

925 

737 

Total wholesale credit portfolio

$

1,544,441 

$

1,366,681 

$

6,477 

$

5,999 

Credit derivatives and credit-related notes used in credit portfolio management activities(b)

$

(23,898)

$

(40,888)

$

— 

$

— 

Liquid securities and other cash collateral held against derivatives

(28,891)

(28,160)

NA

NA

(a)Receivables from customers reflect held-for-investment margin loans to brokerage clients in CIB, CCB and AWM; these are reported within accrued interest and accounts receivable on the Consolidated balance sheets.

(b)Represents the net notional amount of protection purchased and sold through credit derivatives and credit-related notes used to manage both performing and nonperforming wholesale credit exposures; these derivatives do not qualify for hedge accounting under U.S. GAAP. Refer to Credit derivatives on page 128 and Note 5 for additional information.

118

JPMorgan Chase & Co./2025 Form 10-K

Wholesale credit exposure – maturity and ratings profile

The following tables present the maturity and internal risk ratings profiles of the wholesale credit portfolio as of December 31, 2025 and 2024. The Firm generally considers internal ratings with qualitative characteristics equivalent to BBB-/Baa3 or higher as investment grade, and takes into consideration collateral and structural support when determining the internal risk rating for each credit facility. Refer to Note 12 for further information on internal risk ratings.

Maturity profile(d)

Ratings profile

December 31, 2025

(in millions, except ratios)

1 year or less

After 1 year through

5 years

After 5 years

Total

Investment-grade

Noninvestment-grade

Total

Total %

of IG

Loans retained

$

271,648 

$

330,900 

$

189,819 

$

792,367 

$

541,364 

$

251,003 

$

792,367 

68 

%

Derivative receivables

57,777 

57,777 

Less: Liquid securities and other cash collateral held against derivatives

(28,891)

(28,891)

Total derivative receivables, net of collateral

7,941 

6,836 

14,109 

28,886 

19,721 

9,165 

28,886 

68 

Lending-related commitments

155,797 

412,594 

27,563 

595,954 

383,106 

212,848 

595,954 

64 

Subtotal

435,386 

750,330 

231,491 

1,417,207 

944,191 

473,016 

1,417,207 

67 

Loans held-for-sale and loans at fair value(a)

51,007 

51,007 

Receivables from customers

47,336 

47,336 

Total exposure – net of liquid securities and other cash collateral held against derivatives

$

1,515,550 

$

1,515,550 

Credit derivatives and credit-related notes used in credit portfolio management activities(b)(c)

$

(5,356)

$

(17,424)

$

(1,118)

$

(23,898)

$

(17,831)

$

(6,067)

$

(23,898)

75 

%

Maturity profile(d)

Ratings profile

December 31, 2024

(in millions, except ratios)

1 year or less

After 1 year through

5 years

After 5 years

Total

Investment-grade

Noninvestment-grade

Total

Total %

of IG

Loans retained

$

225,982 

$

289,199 

$

175,215 

$

690,396 

$

471,670 

$

218,726 

$

690,396 

68 

%

Derivative receivables

60,967 

60,967 

Less: Liquid securities and other cash collateral held against derivatives

(28,160)

(28,160)

Total derivative receivables, net of collateral

11,515 

7,418 

13,874 

32,807 

24,707 

8,100 

32,807 

75 

Lending-related commitments

121,283 

384,529 

25,655 

531,467 

352,082 

179,385 

531,467 

66 

Subtotal

358,780 

681,146 

214,744 

1,254,670 

848,459 

406,211 

1,254,670 

68 

Loans held-for-sale and loans at fair value(a)

31,922 

31,922 

Receivables from customers

51,929 

51,929 

Total exposure – net of liquid securities and other cash collateral held against derivatives

$

1,338,521 

$

1,338,521 

Credit derivatives and credit-related notes used in credit portfolio management activities(b)(c)

$

(5,442)

$

(33,751)

$

(1,695)

$

(40,888)

$

(31,691)

$

(9,197)

$

(40,888)

78 

%

(a)Loans held-for-sale are primarily related to syndicated loans and loans transferred from the retained portfolio.

(b)These derivatives do not qualify for hedge accounting under U.S. GAAP.

(c)The notional amounts are presented on a net basis by underlying reference entity and the ratings profile shown is based on the ratings of the reference entity on which protection has been purchased. Predominantly all of the credit derivatives entered into by the Firm where it has purchased protection used in credit portfolio management activities are executed with investment-grade counterparties. In addition, the Firm obtains credit protection against certain loans in the retained loan portfolio through the issuance of credit-related notes.

(d)The maturity profile of retained loans, lending-related commitments and derivative receivables is generally based on remaining contractual maturity. Derivative contracts that are in a receivable position at December 31, 2025, may become payable prior to maturity based on their cash flow profile or changes in market conditions.

JPMorgan Chase & Co./2025 Form 10-K

119

Management’s discussion and analysis

Wholesale credit exposure – industry exposures

The Firm focuses on the management and diversification of its industry exposures, and pays particular attention to industries with actual or potential credit concerns.

Exposures that are deemed to be criticized align with the U.S. banking regulators’ definition of criticized exposures, which consist of the special mention, substandard and doubtful categories. Total criticized exposure, excluding loans held-for-sale and loans at fair value, was $48.5 billion and $44.7 billion as of December 31, 2025 and 2024, representing approximately 3.4% and 3.5% of total wholesale credit exposure, respectively; of the $48.5 billion, $42.9 billion was performing. The increase in criticized exposure was driven by SPEs, Consumer & Retail, Banks & Finance Companies, Healthcare, and Chemicals & Plastics, primarily resulting from downgrades and new lending-related commitments, partially offset by Real Estate and Industrials, primarily resulting from net portfolio activity and upgrades.

The table below summarizes by industry the Firm’s exposures as of December 31, 2025 and 2024. The industry of risk category is generally based on the client or counterparty’s primary business activity. Refer to Note 4 for additional information on industry concentrations.

Wholesale credit exposure – industries(a)

Selected metrics

Noninvestment-grade

30 days or more past due and accruing

loans

Net

charge-offs/

(recoveries)

Credit derivative and credit-related notes(h)

Liquid securities and other cash collateral held against derivative

receivables

As of or for the year ended December 31, 2025

(in millions)

Credit

exposure(f)(g)

Investment-

grade

Noncriticized

Criticized performing

Criticized

nonperforming

Real Estate

$

224,858 

$

155,712 

$

57,478 

$

9,967 

$

1,701 

$

959 

$

380 

$

(99)

$

— 

Individuals and Individual Entities(b)

167,700 

138,142 

28,677 

460 

421 

1,012 

(15)

— 

— 

Asset Managers

152,848 

117,426 

35,113 

304 

5 

105 

1 

(5)

(10,626)

Consumer & Retail

133,945 

63,523 

62,382 

7,425 

615 

115 

234 

(311)

— 

Technology, Media & Telecommunications

97,816 

44,373 

42,507 

10,135 

801 

37 

281 

(1,078)

— 

Industrials

80,606 

44,078 

33,166 

3,101 

261 

470 

18 

(68)

— 

Banks & Finance Companies

75,653 

41,904 

32,826 

903 

20 

16 

8 

(574)

(657)

Healthcare

72,218 

48,888 

19,713 

3,059 

558 

12 

191 

(67)

— 

Utilities

39,005 

24,840 

12,519 

1,254 

392 

1 

63 

(203)

— 

Oil & Gas

36,497 

21,825 

14,076 

347 

249 

52 

48 

(51)

— 

Automotive

35,984 

19,602 

15,397 

958 

27 

109 

3 

(277)

— 

State & Municipal Govt(c)

32,484 

31,372 

1,100 

3 

9 

30 

— 

(3)

— 

Insurance

25,031 

17,511 

7,352 

168 

— 

6 

— 

(20)

(8,310)

Chemicals & Plastics

23,790 

11,251 

10,355 

2,091 

93 

2 

82 

(239)

— 

Transportation

20,861 

11,450 

9,097 

285 

29 

11 

(3)

(135)

— 

Metals & Mining

17,767 

7,459 

9,883 

406 

19 

22 

4 

(39)

(67)

Central Govt

15,164 

14,666 

245 

44 

209 

8 

— 

(1,258)

(1,273)

Securities Firms

7,966 

4,372 

3,593 

— 

1 

1 

— 

(13)

(2,458)

Financial Markets Infrastructure

5,734 

5,306 

358 

70 

— 

— 

— 

— 

— 

All other(d)

180,171 

148,214 

29,887 

1,953 

117 

3 

303 

(19,458)

(5,500)

Subtotal

$

1,446,098 

$

971,914 

$

425,724 

$

42,933 

$

5,527 

$

2,971 

$

1,598 

$

(23,898)

$

(28,891)

Loans held-for-sale and loans at fair value

51,007 

Receivables from customers

47,336 

Total(e)

$

1,544,441 

120

JPMorgan Chase & Co./2025 Form 10-K

(continued from previous page)

Selected metrics

Noninvestment-grade

30 days or more past due and accruing

loans

Net

charge-offs/

(recoveries)

Credit derivative and credit-related notes (h)

Liquid securities and other cash collateral held against derivative

receivables

As of or for the year ended

December 31, 2024

(in millions)

Credit

exposure(f)(g)

Investment-

grade

Noncriticized

Criticized performing

Criticized

nonperforming

Real Estate

$

207,050 

$

143,803 

$

50,865 

$

10,858 

$

1,524 

$

913 

$

345 

$

(584)

$

— 

Individuals and Individual Entities(b)

144,145 

118,650 

24,831 

217 

447 

831 

122 

— 

— 

Asset Managers

135,541 

101,150 

34,148 

206 

37 

375 

2 

— 

(9,194)

Consumer & Retail

129,815 

62,800 

60,141 

6,055 

819 

252 

123 

(4,320)

— 

Technology, Media & Telecommunications

84,716 

45,021 

28,629 

10,592 

474 

79 

94 

(4,800)

— 

Industrials

72,530 

37,572 

30,912 

3,807 

239 

185 

91 

(2,312)

— 

Banks & Finance Companies

61,287 

36,884 

24,119 

257 

27 

36 

— 

(702)

(729)

Healthcare

64,224 

44,135 

17,062 

2,219 

808 

245 

56 

(3,286)

(34)

Utilities

35,871 

24,205 

10,256 

1,273 

137 

1 

— 

(2,700)

— 

Oil & Gas

31,724 

19,053 

12,479 

188 

4 

9 

(3)

(1,711)

(2)

Automotive

34,336 

22,015 

11,353 

931 

37 

121 

1 

(997)

— 

State & Municipal Govt(c)

35,039 

33,303 

1,711 

9 

16 

90 

— 

(2)

(1)

Insurance

24,267 

17,847 

6,198 

222 

— 

2 

— 

(1,077)

(9,184)

Chemicals & Plastics

20,782 

11,013 

8,152 

1,521 

96 

31 

14 

(1,164)

— 

Transportation

17,019 

9,462 

7,135 

391 

31 

17 

(20)

(658)

— 

Metals & Mining

15,860 

7,373 

7,860 

590 

37 

9 

— 

(246)

(2)

Central Govt

13,862 

13,580 

157 

125 

— 

4 

— 

(1,490)

(2,051)

Securities Firms

9,443 

5,424 

4,014 

5 

— 

— 

— 

(13)

(2,635)

Financial Markets Infrastructure

4,446 

4,201 

245 

— 

— 

— 

— 

(1)

— 

All other(d)

140,873 

117,986 

22,398 

398 

91 

10 

(3)

(14,825)

(4,328)

Subtotal

$

1,282,830 

$

875,477 

$

362,665 

$

39,864 

$

4,824 

$

3,210 

$

822 

$

(40,888)

$

(28,160)

Loans held-for-sale and loans at fair value

31,922 

Receivables from customers

51,929 

Total(e)

$

1,366,681 

(a)The industry rankings presented in the table as of December 31, 2024, are based on the industry rankings of the corresponding exposures as of December 31, 2025, not actual rankings of such exposures as of December 31, 2024.

(b)Individuals and Individual Entities predominantly consists of Global Private Bank clients within AWM and J.P. Morgan Wealth Management within CCB, and includes exposure to personal investment companies and personal and testamentary trusts.

(c)In addition to the credit risk exposure to states and municipal governments (both U.S. and non-U.S.) at December 31, 2025 and 2024, noted above, the Firm held: $6.1 billion of trading assets at both periods; $20.2 billion and $17.9 billion, respectively, of AFS securities; and $8.6 billion and $9.3 billion, respectively, of HTM securities, issued by U.S. state and municipal governments. Refer to Notes 2 and 10 for further information.

(d)All other includes: SPEs and Private education and civic organizations, representing approximately 95% and 5%, respectively, at December 31, 2025, and 94% and 6%, respectively, at December 31, 2024. Refer to Note 14 for more information on exposures to SPEs.

(e)Excludes cash placed with banks of $333.8 billion and $459.2 billion, at December 31, 2025 and 2024, respectively, which is predominantly placed with various central banks, primarily Federal Reserve Banks.

(f)Credit exposure is net of risk participations and excludes the benefit of credit derivatives and credit-related notes used in credit portfolio management activities held against derivative receivables or loans and liquid securities and other cash collateral held against derivative receivables.

(g)Credit exposure includes held-for-sale and fair value option elected lending-related commitments.

(h)Represents the net notional amounts of protection purchased and sold through credit derivatives and credit-related notes used to manage the credit exposures; these derivatives do not qualify for hedge accounting under U.S. GAAP. The All other category includes purchased credit protection on certain credit indices.

JPMorgan Chase & Co./2025 Form 10-K

121

Management’s discussion and analysis

Presented below is additional detail on certain of the Firm’s industry exposures.

Real Estate

Real Estate exposure was $224.9 billion as of December 31, 2025. Criticized exposure decreased by $714 million from $12.4 billion at December 31, 2024 to $11.7 billion at December 31, 2025, driven by net portfolio activity, predominantly offset by net downgrades.

December 31, 2025

(in millions, except ratios)

Loans and lending-related commitments

Derivative receivables

Credit exposure

% Investment-grade

% Drawn(d)

Multifamily(a)

$

128,864 

$

25 

$

128,889 

78 

%

91 

%

Other Income Producing Properties(b)

23,390 

229 

23,619 

46 

53 

Services and Non Income Producing

20,325 

130 

20,455 

63 

35 

Industrial

19,541 

13 

19,554 

67 

69 

Office

15,016 

39 

15,055 

47 

80 

Retail

12,879 

33 

12,912 

79 

74 

Lodging

4,366 

8 

4,374 

26 

48 

Total Real Estate Exposure(c)

$

224,381 

$

477 

$

224,858 

69 

%

77 

%

December 31, 2024

(in millions, except ratios)

Loans and lending-related commitments

Derivative receivables

Credit exposure

% Investment-grade

% Drawn(d)

Multifamily(a)

$

124,074 

$

7 

$

124,081 

77 

%

92 

%

Other Income Producing Properties(b)

16,411 

158 

16,569 

50 

63 

Services and Non Income Producing

14,047 

57 

14,104 

62 

46 

Industrial

19,092 

17 

19,109 

65 

72 

Office

16,331 

29 

16,360 

47 

81 

Retail

12,230 

23 

12,253 

77 

75 

Lodging

4,555 

19 

4,574 

31 

53 

Total Real Estate Exposure

$

206,740 

$

310 

$

207,050 

69 

%

82 

%

(a)Total Multifamily exposure is approximately 99% performing. Multifamily exposure is largely in California.

(b)Other Income Producing Properties consists of clients with diversified property types or other property types, including data centers, outside of categories listed in the table above.

(c)Real Estate exposure is approximately 83% secured; unsecured exposure is largely investment-grade primarily to Real Estate Investment Trusts (“REITs”) and Real Estate Operating Companies (“REOCs”) whose underlying assets are generally diversified.

(d)Represents drawn exposure as a percentage of credit exposure.

122

JPMorgan Chase & Co./2025 Form 10-K

Consumer & Retail

Consumer & Retail exposure was $133.9 billion as of December 31, 2025. Criticized exposure increased by $1.2 billion from $6.9 billion at December 31, 2024 to $8.0 billion at December 31, 2025, driven by net downgrades and new lending-related commitments, largely offset by net portfolio activity.

December 31, 2025

(in millions, except ratios)

Loans and lending-related commitments

Derivative receivables

Credit exposure

% Investment-grade

% Drawn(d)

Business and Consumer Services

$

38,160 

$

501 

$

38,661 

41 

%

43 

%

Retail(a)

36,492 

434 

36,926 

55 

29 

Food and Beverage

31,513 

855 

32,368 

53 

36 

Consumer Hard Goods

14,824 

309 

15,133 

43 

33 

Leisure(b)

10,721 

136 

10,857 

33 

45 

Total Consumer & Retail(c)

$

131,710 

$

2,235 

$

133,945 

47 

%

37 

%

December 31, 2024

(in millions, except ratios)

Loans and lending-related commitments

Derivative receivables

Credit exposure

% Investment-grade

% Drawn(d)

Business and Consumer Services

$

34,534 

$

412 

$

34,946 

42 

%

41 

%

Retail(a)

34,917 

261 

35,178 

51 

31 

Food and Beverage

34,774 

683 

35,457 

61 

34 

Consumer Hard Goods

13,796 

208 

14,004 

43 

35 

Leisure(b)

10,186 

44 

10,230 

26 

43 

Total Consumer & Retail

$

128,207 

$

1,608 

$

129,815 

48 

%

36 

%

(a)Retail consists of Home Improvement & Specialty Retailers, Discount & Drug Stores, Restaurants, Specialty Apparel, Supermarkets, and Department Stores.

(b)Leisure consists of Arts & Culture, Travel Services, Gaming, and Sports & Recreation. As of December 31, 2025, approximately 88% of the noninvestment-grade Leisure portfolio is secured.

(c)Consumer & Retail exposure is approximately 57% secured; unsecured exposure is approximately 77% investment-grade.

(d)Represents drawn exposure as a percentage of credit exposure.

JPMorgan Chase & Co./2025 Form 10-K

123

Management’s discussion and analysis

Loans

In its wholesale businesses, the Firm provides loans to a variety of clients, ranging from large corporate and institutional clients to high-net-worth individuals. Refer to Note 12 for a further discussion on loans, including information about delinquencies, loan modifications and other credit quality indicators.

The following table presents the change in the nonaccrual loan portfolio for the years ended December 31, 2025 and 2024. Since December 31, 2024, nonaccrual loan exposure increased by $273 million, driven by certain exposures in Technology, Media & Telecommunications, Utilities, Central Government, and Oil & Gas, in each case primarily resulting from downgrades, largely offset by certain exposures in Healthcare and Consumer & Retail, in each case primarily resulting from charge-off activity, upgrades, and loan sales.

Wholesale nonaccrual loan activity

Year ended December 31,

(in millions)

2025

2024

Beginning balance

$

4,911 

$

2,714 

Additions

5,343 

5,841 

Reductions:

Paydowns and other

1,890 

2,387 

Gross charge-offs

1,481 

780 

Returned to performing status

1,538 

392 

Sales

161 

85 

Total reductions

5,070 

3,644 

Net changes

273 

2,197 

Ending balance

$

5,184 

$

4,911 

The following table presents net charge-offs/recoveries, which are defined as gross charge-offs less recoveries, for the years ended December 31, 2025 and 2024. The amounts in the table below do not include gains or losses from sales of nonaccrual loans recognized in noninterest revenue.

Wholesale net charge-offs increased for the year ended December 31, 2025 compared to the prior year, primarily due to increases in Commercial and industrial, including in Technology, Media & Telecommunications and Healthcare, as well as estimated losses related to borrower fraud in certain secured lending facilities.

Wholesale net charge-offs/(recoveries)

Year ended December 31,

(in millions, except ratios)

2025

2024

Loans

Average loans retained

$

732,793 

$

673,310 

Gross charge-offs

1,787 

1,022 

Gross recoveries collected

(189)

(200)

Net charge-offs/(recoveries)

1,598 

822 

Net charge-off/(recovery) rate

0.22 

%

0.12 

%

124

JPMorgan Chase & Co./2025 Form 10-K

Maturities and sensitivity to changes in interest rates

The table below sets forth wholesale loan maturities and the distribution between fixed and floating interest rates based on the stated terms of the loan agreements by loan class. Refer to Note 12 for further information on loan classes.

December 31, 2025

(in millions)

 1 year or less(b)

After 1 year through 5 years

After 5 years through 15 years

After 15 years

Total

Wholesale loans:

Secured by real estate

$

13,998 

$

66,811 

$

60,499 

$

38,638 

$

179,946 

Commercial and industrial

52,480 

118,190 

18,486 

156 

189,312 

Other

217,587 

203,197 

45,169 

8,163 

474,116 

Total wholesale loans

$

284,065 

$

388,198 

$

124,154 

$

46,957 

$

843,374 

Loans due after one year at fixed interest rates

Secured by real estate

$

14,737 

$

14,356 

$

915 

Commercial and industrial

5,728 

2,109 

7 

Other

28,116 

15,459 

4,797 

Loans due after one year at variable interest rates(a)

Secured by real estate

$

52,074 

$

46,143 

$

37,722 

Commercial and industrial

112,463 

16,377 

148 

Other

175,080 

29,710 

3,368 

Total wholesale loans

$

388,198 

$

124,154 

$

46,957 

(a)Includes loans that have an initial fixed interest rate that resets to a variable rate as the variable rate will be the prevailing rate over the life of the loan.

(b)Includes loans held-for-sale, demand loans and overdrafts.

The following table presents net charge-offs/recoveries, average retained loans and net charge-off/recovery rate by loan class for the years ended December 31, 2025 and 2024.

Year ended December 31,

(in millions, except ratios)

Secured by real estate

Commercial and industrial

Other

Total

2025

2024

2025

2024

2025

2024

2025

2024

Net charge-offs/(recoveries)

$

390 

$

313 

$

882 

$

381 

$

326 

$

128 

$

1,598 

$

822 

Average retained loans

162,567 

162,653 

169,149 

169,363 

401,077 

341,294 

732,793 

673,310 

Net charge-off/(recovery) rate

0.24 

%

0.19 

%

0.52 

%

0.22 

%

0.08 

%

0.04 

%

0.22 

%

0.12 

%

JPMorgan Chase & Co./2025 Form 10-K

125

Management’s discussion and analysis

Lending-related commitments

The Firm uses lending-related financial instruments, such as commitments (including revolving credit facilities) and guarantees, to address the financing needs of its clients. The contractual amounts of these financial instruments represent the maximum possible credit risk should the clients draw down on these commitments or when the Firm fulfills its obligations under these guarantees, and the clients subsequently fail to perform according to the terms of these contracts. Most of these commitments and guarantees have historically been refinanced, extended, cancelled, or expired without being drawn upon or a default occurring. As a result, the Firm does not believe that the total contractual amount of these wholesale lending-related commitments is representative of the Firm’s expected future credit exposure or funding requirements. Refer to Note 28 for further information on wholesale lending-related commitments.

Receivables from customers

Receivables from customers reflect held-for-investment margin loans to brokerage clients in CIB, CCB and AWM that are collateralized by assets maintained in the clients’ brokerage accounts (including cash on deposit, and primarily liquid and readily marketable debt or equity securities). To manage its credit risk, the Firm establishes margin requirements and monitors the required margin levels on an ongoing basis, and requires clients to deposit additional cash or other collateral, or to reduce positions, when appropriate. Credit risk arising from lending activities subject to collateral maintenance requirements is generally mitigated by factors such as the short-term nature of the activity, the fair value of collateral held and the Firm’s right to call for, and the borrower’s obligation to provide, additional margin when the fair value of the collateral declines. Because of these mitigating factors, these receivables generally do not require an allowance for credit losses. However, if in management’s judgment, an allowance for credit losses is required, the Firm estimates expected credit losses based on the value of the collateral and probability of borrower default. These receivables are reported within accrued interest and accounts receivable on the Firm’s Consolidated balance sheets.

Refer to Note 13 for further information on the Firm’s accounting policies for the allowance for credit losses.

Derivative contracts

Derivatives enable clients and counterparties to manage risk, including credit risk and risks arising from fluctuations in interest rates, foreign exchange and equities and commodities prices. The Firm makes markets in derivatives in order to meet these needs and uses derivatives to manage certain risks associated with net open risk positions from its market-making activities, including the counterparty credit risk arising from derivative receivables. The Firm also uses derivative instruments to manage its own credit risk and other market risk exposure. The nature of the counterparty and the settlement mechanism of the

derivative affect the credit risk to which the Firm is exposed. For over-the-counter (“OTC”) derivatives, the Firm is exposed to the credit risk of the derivative counterparty. For exchange-traded derivatives (“ETD”), such as futures and options, and cleared over-the-counter (“OTC-cleared”) derivatives, the Firm can also be exposed to the credit risk of the relevant CCP. Where possible, the Firm seeks to mitigate its credit risk exposures arising from derivative contracts through the use of legally enforceable master netting arrangements and collateral agreements. The percentage of the Firm’s OTC derivative transactions subject to collateral agreements — excluding foreign exchange spot trades, which are not typically covered by collateral agreements due to their short maturity and centrally cleared trades that are settled daily — was approximately 86% at both December 31, 2025 and 2024. Refer to Note 5 for additional information on the Firm’s use of collateral agreements and for a further discussion of derivative contracts, counterparties and settlement types.

The fair value of derivative receivables reported on the Consolidated balance sheets was $57.8 billion and $61.0 billion at December 31, 2025 and 2024, respectively. The decrease was primarily as a result of market movements. Derivative receivables represent the fair value of the derivative contracts after giving effect to legally enforceable master netting agreements and the related cash collateral held by the Firm.

In addition, the Firm holds liquid securities and other cash collateral that may be used as security when the fair value of the client’s exposure is in the Firm’s favor. For these purposes, the definition of liquid securities is consistent with the definition of high quality liquid assets as defined in the LCR rule.

In management’s view, the appropriate measure of current credit risk should also take into consideration other collateral, which generally represents securities that do not qualify as high quality liquid assets under the LCR rule. The benefits of these additional collateral amounts for each counterparty are subject to a legally enforceable master netting agreement and limited to the net amount of the derivative receivables for each counterparty.

The Firm also holds additional collateral (primarily cash, G7 government securities, other liquid government agency and guaranteed securities, and corporate debt and equity securities) delivered by clients at the initiation of transactions, as well as collateral related to contracts that have a non-daily call frequency and collateral that the Firm has agreed to return but has not yet settled as of the reporting date. Although this collateral does not reduce the receivables balances and is not included in the tables below, it is available as security against potential exposure that could arise should the fair value of the client’s derivative contracts move in the Firm’s favor. Refer to Note 5 for additional information on the Firm’s use of collateral agreements for derivative transactions.

126

JPMorgan Chase & Co./2025 Form 10-K

The following tables summarize the net derivative receivables and the internal ratings profile for the periods presented.

Derivative receivables

December 31,

(in millions)

2025

2024

Total, net of cash collateral

$

57,777 

$

60,967 

Liquid securities and other cash collateral held against derivative receivables

(28,891)

(28,160)

Total, net of liquid securities and other cash collateral

$

28,886 

$

32,807 

Other collateral held against derivative receivables

(949)

(1,021)

Total, net of collateral

$

27,937 

$

31,786 

Ratings profile of derivative receivables

2025

2024

December 31,

(in millions, except ratios)

Exposure net of collateral

% of exposure net of collateral

Exposure net of collateral

% of exposure net of collateral

Investment-grade

$

18,877 

68 

%

$

23,783 

75 

%

Noninvestment-grade

9,060 

32 

8,003 

25 

Total

$

27,937 

100 

%

$

31,786 

100 

%

While useful as a current view of credit exposure, the net fair value of the derivative receivables does not capture the potential future variability of that credit exposure. To capture this variability, the Firm calculates, on a client-by-client basis, three measures of potential derivatives-related credit loss: Peak, Derivative Risk Equivalent (“DRE”), and Average exposure (“AVG”). These measures all incorporate netting and collateral benefits, where applicable.

Peak represents a conservative measure of potential derivative exposure, including the benefit of collateral, to a counterparty calculated in a manner that is broadly equivalent to a 97.5% confidence level over the life of the transaction. Peak is the primary measure used by the Firm for setting credit limits for derivative contracts, senior management reporting and derivatives exposure management.

DRE exposure is a measure that expresses the risk of derivative exposure, including the benefit of collateral, on a basis intended to be equivalent to the risk of loan exposures. DRE is a less extreme measure of potential credit loss than Peak.

Finally, AVG is a measure of the expected fair value of the Firm’s derivative exposures, including the benefit of collateral, at future time periods. AVG over the total life of the derivative contract is used as the primary metric for pricing purposes and is used to calculate credit risk capital and CVA, as further described below.

The fair value of the Firm’s derivative receivables incorporates CVA to reflect the credit quality of counterparties. CVA is based on the Firm’s AVG to a counterparty and the counterparty’s credit spread in the credit derivatives market. The Firm believes that active risk management is essential to controlling the dynamic credit risk in the derivatives portfolio. In addition, the Firm’s risk management process for derivatives exposures takes into consideration the

potential impact of wrong-way risk, which is broadly defined as the risk that exposure to a counterparty is positively correlated with the impact of a default by the same counterparty, which could cause exposure to increase at the same time as the counterparty’s capacity to meet its obligations is decreasing. Many factors may influence the nature and magnitude of these correlations over time. To the extent that these correlations are identified, the Firm may adjust the CVA associated with a particular counterparty’s AVG. The Firm risk manages exposure to changes in CVA by entering into credit derivative contracts, as well as interest rate, foreign exchange, equity and commodity derivative contracts.

The below graph shows exposure profiles to the Firm’s current derivatives portfolio over the next 10 years as calculated by the Peak, DRE and AVG metrics. The three measures generally show that exposure will decline after the first year, if no new trades are added to the portfolio.

Exposure profile of derivatives measures

December 31, 2025

(in billions)

JPMorgan Chase & Co./2025 Form 10-K

127

Management’s discussion and analysis

Credit derivatives

The Firm uses credit derivatives for two primary purposes: first, in its capacity as a market-maker, and second, as an end-user to manage the Firm’s own credit risk associated with various exposures.

Credit portfolio management activities

Included in the Firm’s end-user activities are credit derivatives used to mitigate the credit risk associated with traditional lending activities (loans and lending-related commitments) and derivatives counterparty exposure in the Firm’s wholesale businesses (collectively, “credit portfolio management activities”). Information on credit portfolio management activities is provided in the table below.

The Firm also uses credit derivatives as an end-user to manage other exposures, including credit risk arising from certain securities held in the Firm’s market-making businesses. These credit derivatives are not included in credit portfolio management activities.

Credit derivatives and credit-related notes used in credit portfolio management activities

December 31,

(in millions)

Notional amount of protection purchased and sold(a)

2025

2024

Credit derivatives and credit-related notes used to manage:

Loans and lending-related commitments

$

9,899 

$

25,216 

Derivative receivables

13,999 

15,672 

Credit derivatives and credit-related notes used in credit portfolio management activities

$

23,898 

$

40,888 

(a)Amounts are presented net, considering the Firm’s net protection purchased or sold with respect to each underlying reference entity or index.

The credit derivatives used in credit portfolio management activities do not qualify for hedge accounting under U.S. GAAP; these derivatives are reported at fair value, with gains and losses recognized in principal transactions revenue. In contrast, the loans and lending-related commitments being risk-managed are accounted for on an accrual basis. This asymmetry in accounting treatment, between loans and lending-related commitments and the credit derivatives used in credit portfolio management activities, causes earnings volatility that is not representative, in the Firm’s view, of the true changes in value of the Firm’s overall credit exposure.

The effectiveness of credit default swaps (“CDS”) as a hedge against the Firm’s exposures may vary depending on a number of factors, including the named reference entity (i.e., the Firm may experience losses on specific exposures that are different than the named reference entities in the purchased CDS); the contractual terms of the CDS (which may have a defined credit event that does not align with an actual loss realized by the Firm); and the maturity of the Firm’s CDS protection (which in some cases may be shorter than the Firm’s exposures). However, the Firm generally seeks to purchase credit protection with a maturity date that is the same or similar to the maturity date of the exposure for which the protection was purchased, and remaining differences in maturity are actively monitored and managed by the Firm. Refer to Credit derivatives in Note 5 for further information on credit derivatives and derivatives used in credit portfolio management activities.

128

JPMorgan Chase & Co./2025 Form 10-K

ALLOWANCE FOR CREDIT LOSSES

The Firm’s allowance for credit losses represents management's estimate of expected credit losses over the remaining expected life of the Firm's financial assets measured at amortized cost and certain off-balance sheet lending-related commitments. The Firm's allowance for credit losses generally consists of:

•the allowance for loan losses, which covers the Firm’s retained loan portfolios (scored and risk-rated) and is presented separately on the Consolidated balance sheets,

•the allowance for lending-related commitments, which is reflected in accounts payable and other liabilities on the Consolidated balance sheets, and

•the allowance for credit losses on investment securities, which is reflected in investment securities on the Consolidated balance sheets.

Discussion of changes in the allowance

The allowance for credit losses as of December 31, 2025 was $31.2 billion, reflecting a net addition of $4.4 billion from December 31, 2024.

The net addition to the allowance for credit losses included:

•$3.3 billion in consumer, driven by $2.2 billion related to the Apple Card transaction, loan growth in Card Services and the impact of changes in the Firm's weighted-average macroeconomic outlook, partially offset by reduced borrower uncertainty, and

•$1.1 billion in wholesale, driven by net increases in the loan and lending-related commitment portfolios, an update to loss assumptions on certain leveraged loans, and net changes in credit quality of client-specific exposures, partially offset by the impact of changes in the Firm's weighted-average macroeconomic outlook and a reduction due to the impact of charge-offs.

The Firm's qualitative adjustments and its weighted-average macroeconomic outlook continued to include additional weight placed on the adverse scenarios to reflect ongoing uncertainties and downside risks related to the geopolitical and macroeconomic environment. During 2025, the Firm further increased the weight placed on the adverse scenarios.

The Firm's allowance for credit losses is estimated using a weighted average of five internally developed macroeconomic scenarios. The adverse scenarios incorporate more punitive macroeconomic factors than the central case assumptions provided in the following table, resulting in:

•a weighted average U.S. unemployment rate peaking at 5.8% in the fourth quarter of 2026, and

•a weighted average U.S. real GDP level that is 2.1% lower than the central case at the end of the second quarter of 2027.

The following table presents the Firm’s central case assumptions for the periods presented:

Central case assumptions

at December 31, 2025

2Q26

4Q26

2Q27

U.S. unemployment rate(a)

4.6 

%

4.4 

%

4.2 

%

YoY growth in U.S. real GDP(b)

2.0 

%

1.8 

%

1.9 

%

Central case assumptions

at December 31, 2024

2Q25

4Q25

2Q26

U.S. unemployment rate(a)

4.5 

%

4.3 

%

4.3 

%

YoY growth in U.S. real GDP(b)

2.0 

%

1.9 

%

1.8 

%

(a)Reflects quarterly average of forecasted U.S. unemployment rate.

(b)The year over year growth in U.S. real GDP in the forecast horizon of the central scenario is calculated as the percentage change in U.S. real GDP levels from the prior year.

Subsequent changes to this forecast and related estimates will be reflected in the provision for credit losses in future periods.

Refer to Consumer Credit Portfolio on pages 112–117, Wholesale Credit Portfolio on pages 118–128 and Note 12 for additional information on the consumer and wholesale credit portfolios.

Refer to Critical Accounting Estimates Used by the Firm on pages 154–157 for further information on the allowance for credit losses and related management judgments.

JPMorgan Chase & Co./2025 Form 10-K

129

Management’s discussion and analysis

Allowance for credit losses and related information

2025

2024

Year ended December 31,

Consumer, excluding

credit card

Credit card

Wholesale

Total

Consumer, excluding

credit card

Credit card

Wholesale

Total

(in millions, except ratios)

Allowance for loan losses

Beginning balance at January 1,

$

1,807 

$

14,600 

$

7,938 

$

24,345 

$

1,856 

$

12,450 

$

8,114 

$

22,420 

Gross charge-offs

1,089 

9,164 

1,787 

12,040 

1,299 

8,198 

1,022 

10,519 

Gross recoveries collected

(510)

(1,492)

(189)

(2,191)

(625)

(1,056)

(200)

(1,881)

Net charge-offs

579 

7,672 

1,598 

9,849 

674 

7,142 

822 

8,638 

Provision for loan losses

692 

8,629 

1,943 

11,264 

624 

9,292 

578 

10,494 

Other

— 

— 

5 

5 

1 

— 

68 

69 

Ending balance at December 31,

$

1,920 

$

15,557 

$

8,288 

$

25,765 

$

1,807 

$

14,600 

$

7,938 

$

24,345 

Allowance for lending-related commitments

Beginning balance at January 1,

$

82 

$

— 

$

2,019 

$

2,101 

$

75 

$

— 

$

1,899 

$

1,974 

Provision for lending-related commitments

1 

2,200 

(d)

768 

2,969 

7 

— 

121 

128 

Other

— 

— 

1 

1 

— 

— 

(1)

(1)

Ending balance at December 31,

$

83 

$

2,200 

$

2,788 

$

5,071 

$

82 

$

— 

$

2,019 

$

2,101 

Impairment methodology

Asset-specific(a)

$

(647)

$

— 

$

707 

$

60 

$

(728)

$

— 

$

526 

$

(202)

Portfolio-based

2,567 

15,557 

7,581 

25,705 

2,535 

14,600 

7,412 

24,547 

Total allowance for loan losses

$

1,920 

$

15,557 

$

8,288 

$

25,765 

$

1,807 

$

14,600 

$

7,938 

$

24,345 

Impairment methodology

Asset-specific

$

— 

$

— 

$

119 

$

119 

$

— 

$

— 

$

109 

$

109 

Portfolio-based

83 

2,200 

(d)

2,669 

4,952 

82 

— 

1,910 

1,992 

Total allowance for lending-related commitments

$

83 

$

2,200 

$

2,788 

$

5,071 

$

82 

$

— 

$

2,019 

$

2,101 

Total allowance for investment securities

NA

NA

NA

$

106 

NA

NA

NA

$

152 

Total allowance for credit losses(b)

$

2,003 

$

17,757 

$

11,076 

$

30,942 

$

1,889 

$

14,600 

$

9,957 

$

26,598 

Memo:

Retained loans, end of period

$

368,741 

$

247,797 

$

792,367 

$

1,408,905 

$

376,334 

$

232,860 

$

690,396

$

1,299,590

Retained loans, average

371,238 

231,644 

732,793 

1,335,675 

384,001 

214,033 

673,310

1,271,344

Credit ratios

Allowance for loan losses to retained loans

0.52 

%

6.28 

%

1.05 

%

1.83 

%

0.48 

%

6.27 

%

1.15 

%

1.87 

%

Allowance for loan losses to retained nonaccrual loans(c)

50 

NA

188 

311 

56 

NA

201 

339 

Allowance for loan losses to retained nonaccrual loans excluding credit card

50 

NA

188 

123 

56 

NA

201 

136 

Net charge-off rates

0.16 

3.31 

0.22 

0.74 

0.18 

3.34 

0.12 

0.68 

(a)Includes collateral-dependent loans, including those for which foreclosure is deemed probable, and nonaccrual risk-rated loans.

(b)At December 31, 2025 and 2024, in addition to the allowance for credit losses in the table above, the Firm also had an allowance for credit losses of $288 million and $268 million, respectively, associated with certain accounts receivable in CIB.

(c)The Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance.

(d)Represents the impact of the Apple Card transaction.

130

JPMorgan Chase & Co./2025 Form 10-K

Allocation of allowance for loan losses

The table below presents a breakdown of the allowance for loan losses by loan class. Refer to Note 12 for further information on loan classes.

2025

2024

December 31,

(in millions, except ratios)

Allowance for loan losses

% of retained loans to total retained loans

Allowance for loan losses

% of retained loans to total retained loans

Residential real estate

$

869 

21 

%

$

666 

24 

%

Auto and other

1,051 

5 

1,141 

5 

Consumer, excluding credit card

1,920 

26 

1,807 

29 

Credit card

15,557 

18 

14,600 

18 

Total consumer

17,477 

44 

16,407 

47 

Secured by real estate

2,226 

12 

2,978 

12 

Commercial and industrial

4,240 

12 

3,350 

13 

Other

1,822 

32 

1,610 

28 

Total wholesale

8,288 

56 

7,938 

53 

Total

$

25,765 

100 

%

$

24,345 

100 

%

JPMorgan Chase & Co./2025 Form 10-K

131

Management’s discussion and analysis

INVESTMENT PORTFOLIO RISK MANAGEMENT

Investment portfolio risk is the risk associated with the loss of principal or a reduction in expected returns on investments arising from the investment securities portfolio or from principal investments. The investment securities portfolio is predominantly held by Treasury and CIO in connection with the Firm's balance sheet and asset-liability management objectives. Principal investments are predominantly privately-held financial instruments and are managed in the LOBs and Corporate. Investments are typically intended to be held over extended periods and, accordingly, the Firm has no expectation for short-term realized gains with respect to these investments.

Investment securities risk

Investment securities risk includes the exposure associated with a default in the payment of principal and interest. This risk is mitigated given that the investment securities portfolio held by Treasury and CIO predominantly consists of high-quality securities. At December 31, 2025, the size of the Treasury and CIO investment securities portfolio, net of the allowance for credit losses, was $774.0 billion, and the average credit rating of the securities comprising the portfolio was AA+ (based upon external ratings where available, and where not available, based primarily upon internal risk ratings). Refer to Corporate results on pages 80–82 and Note 10 for further information on the investment securities portfolio and internal risk ratings. Refer to Liquidity Risk Management on pages 100–107 for further information on related liquidity risk. Refer to Market Risk Management on pages 133-142 for further information on the market risk inherent in the portfolio.

Governance and oversight

Investment securities risks are governed by the Firm’s Risk Appetite framework, and reviewed at the CTC Risk Committee with regular updates provided to the Board Risk Committee.

The Firm’s independent control functions are responsible for reviewing the appropriateness of the carrying value of investment securities in accordance with relevant policies. Approved levels for investment securities are established for each risk category, including capital and credit risks.

Principal investment risk

Principal investments are typically privately-held financial instruments representing ownership interests or other forms of junior capital. In general, principal investments include tax-oriented investments and investments made to enhance or accelerate the Firm’s business strategies and exclude those that are consolidated on the Firm's balance sheets. These investments are made by dedicated investing businesses or as part of a broader business strategy. The Firm’s principal investments are managed by the LOBs and Corporate and are reflected within their respective financial results. The Firm’s investments will continue to evolve based on market circumstances and in line with its strategic initiatives.

The table below presents the aggregate carrying values of the principal investment portfolios as of December 31, 2025 and 2024.

(in billions)

December 31, 2025

December 31, 2024

Tax-oriented investments, primarily in alternative energy and affordable housing

$

35.7 

$

33.3 

Private equity, various debt and equity instruments, and real assets

11.3 

9.1 

Total carrying value

$

47.0 

$

42.4 

Governance and oversight

The Firm’s approach to managing principal investment risk is consistent with the Firm’s risk governance structure. The Firm has established a Firmwide risk policy framework for all principal investing activities that includes approval by executives who are independent from the investing businesses, as appropriate.

The Firm’s independent control functions are responsible for reviewing the appropriateness of the carrying value of investments in accordance with relevant policies. As part of the risk governance structure, approved levels for investments are established and monitored for each relevant business or segment in order to manage the overall size of the portfolios. The Firm also conducts stress testing on these portfolios using specific scenarios that estimate losses based on significant market moves and/or other risk events.

132

JPMorgan Chase & Co./2025 Form 10-K

MARKET RISK MANAGEMENT

Market risk is the risk associated with the effect of changes in market factors such as interest and foreign exchange rates, equity and commodity prices, credit spreads or implied volatilities, on the value of assets and liabilities held for both the short and long term.

Market Risk Management

Market Risk Management monitors market risks throughout the Firm and defines market risk policies and procedures.

Market Risk Management seeks to measure risk, facilitate efficient risk/return decisions, reduce volatility in operating performance and provide transparency into the Firm’s market risk profile for senior management, the Board of Directors and regulators. Market Risk Management is responsible for the following functions:

•Maintaining a market risk policy framework

•Independently measuring and monitoring LOB, Corporate, and Firmwide market risk

•Defining, approving and monitoring limits

•Performing stress testing and qualitative risk assessments

Risk measurement

Measures used to capture market risk

There is no single measure to capture market risk and therefore Market Risk Management uses various metrics, both statistical and nonstatistical, to assess risk including:

•Value-at-risk

•Stress testing

•Profit and loss drawdowns

•Earnings-at-risk

•Economic value sensitivity

•Other sensitivity-based measures

Risk monitoring and control

Market risk exposure is managed primarily through a series of limits set in the context of the market environment and business strategy. In setting limits, Market Risk Management takes into consideration factors such as market volatility, product liquidity, accommodation of client business, and management judgment. Market Risk Management maintains different levels of limits. Firm level limits include VaR and stress limits. Similarly, LOB and Corporate limits include VaR and stress limits and may be supplemented by certain nonstatistical risk measures such as profit and loss drawdowns. Limits may also be set within the LOBs and Corporate, as well as at the legal entity level.

Market Risk Management sets limits and regularly reviews and updates them as appropriate. Senior management is responsible for reviewing and approving certain of these risk limits on an ongoing basis. Limits that have not been reviewed within specified time periods by Market Risk Management are reported to senior management. The LOBs and Corporate are responsible for adhering to established limits against which exposures are monitored and reported.

Limit breaches are required to be reported in a timely manner to limit approvers, which include Market Risk Management and senior management. In the event of a breach, Market Risk Management consults with senior members of appropriate groups within the Firm to determine the suitable course of action required to return the applicable positions to compliance, which may include a reduction in risk in order to remedy the breach or granting a temporary increase in limits to accommodate an expected increase in client activity and/or market volatility. Firm, Corporate or LOB-level limit breaches are escalated as appropriate.

Models used to measure market risk are inherently imprecise and are limited in their ability to measure certain risks or to predict losses. This imprecision may be heightened when sudden or severe shifts in market conditions occur. For additional discussion on model uncertainty refer to Estimations and Model Risk Management on page 153.

Market Risk Management periodically reviews the Firm’s existing market risk measures to identify opportunities for enhancement, and to the extent appropriate, will calibrate those measures accordingly over time.

JPMorgan Chase & Co./2025 Form 10-K

133

Management’s discussion and analysis

The following table summarizes the predominant business activities and related market risks, as well as positions which give rise to market risk and certain measures used to capture those risks, for each LOB and Corporate.

In addition to the predominant business activities, each LOB and Corporate may engage in principal investing activities. To the extent principal investments are deemed market risk sensitive, they are reflected in relevant risk measures and captured in the table below. Refer to Investment Portfolio Risk Management on page 132 for additional discussion on principal investments.

LOBs and Corporate

Predominant business activities

Related market risks

Positions included in Risk Management VaR

Positions included in earnings-at-risk

Positions included in other sensitivity-based measures

CCB

•Originates and services mortgage loans

•Originates loans and takes deposits

•Risk from changes in the probability of newly originated mortgage commitments closing

•Interest rate risk and prepayment risk

•Mortgage commitments, classified as derivatives

•Warehouse loans that are fair value option elected, classified as loans – debt instruments

•MSRs

•Hedges of mortgage commitments, warehouse loans and MSRs, classified as derivatives

•Interest-only and mortgage-backed securities, classified as trading assets-debt instruments, and related hedges, classified as derivatives

•Fair value option elected liabilities(a)

•Retained and held-for-sale loan portfolios

•Deposits

•Fair value option elected liabilities DVA(a)

CIB

•Makes markets and services clients across fixed income, foreign exchange, equities and commodities

•Originates loans and takes deposits

•Risk of loss from adverse movements in market prices and implied volatilities across interest rate, foreign exchange, credit, commodity and equity instruments

•Basis and correlation risk from changes in the way asset values move relative to one another

•Interest rate risk and prepayment risk

•Trading assets/liabilities-debt and marketable equity instruments, and derivatives, including hedges of the retained loan portfolio

•Certain securities purchased, loaned or sold under resale agreements and securities borrowed

•Fair value option elected liabilities(a)

•Certain fair value option elected loans

•Derivative CVA and associated hedges

•Marketable equity investments

•Retained and held-for-sale loan portfolios

•Deposits

•Privately held equity and other investments measured at fair value; and certain real estate-related fair value option elected loans

•Derivatives FVA and fair value option elected liabilities DVA(a)

AWM

•Provides initial capital investments in products such as mutual funds and capital invested alongside third-party investors

•Originates loans and takes deposits

•Risk from adverse movements in market factors (e.g., market prices, rates and credit spreads)

•Interest rate risk and prepayment risk

•Debt securities held in advance of distribution to clients, classified as trading assets-debt instruments

•Trading assets/liabilities-derivatives that hedge the retained loan portfolio

•Retained and held-for-sale loan portfolios

•Deposits

•Initial seed capital investments and related hedges, classified as derivatives

•Certain deferred compensation and related hedges, classified as derivatives

•Capital invested alongside third-party investors, typically in privately distributed collective vehicles managed by AWM (i.e., co-investments), as well as in third-party funds

Corporate

•Manages the Firm’s liquidity, funding, capital, structural interest rate and foreign exchange risks

•Structural interest rate risk from the Firm’s traditional banking activities

•Structural non-USD foreign exchange risks

•Derivative positions measured through noninterest revenue in earnings

•Marketable equity investments

•Deposits with banks and financing activities

•Investment securities portfolio and related interest rate hedges

•Cash flow hedges on retained loan portfolios in the LOBs

•Long-term and short-term funding and related interest rate hedges

•Deposits

•Foreign exchange hedges of non-U.S. dollar capital investments

•Privately held equity and other investments measured at fair value

•Foreign exchange exposure related to Firm-issued non-USD long-term debt (“LTD”) and related hedges

(a)Reflects structured notes in Risk Management VaR and the DVA on structured notes in other sensitivity-based measures.

134

JPMorgan Chase & Co./2025 Form 10-K

Value-at-risk

JPMorganChase utilizes value-at-risk (“VaR”), a statistical risk measure, to estimate the potential loss from adverse market moves in the current market environment. The Firm has a single VaR framework used as a basis for calculating Risk Management VaR and Regulatory VaR.

The framework is employed across the Firm using historical simulation based on data for the previous 12 months. The framework’s approach assumes that historical changes in market values are representative of the distribution of potential outcomes in the immediate future. The Firm believes the use of Risk Management VaR provides a daily measure of risk that is closely aligned to risk management decisions made by the LOBs and Corporate and, along with other market risk measures, provides the appropriate information needed to respond to risk events.

The Firm’s Risk Management VaR is calculated assuming a one-day holding period and an expected tail-loss methodology which approximates a 95% confidence level. Risk Management VaR provides a consistent framework to measure risk profiles and levels of diversification across product types and is used for aggregating risks and monitoring limits across businesses. VaR results are reported as appropriate to various groups including senior management, the Board Risk Committee and regulators.

Underlying the overall VaR model framework are individual VaR models that simulate historical market returns for individual risk factors and/or product types. To capture material market risks as part of the Firm’s risk management framework, comprehensive VaR model calculations are performed daily for businesses whose activities give rise to market risk. These VaR models are granular and incorporate numerous risk factors and inputs to simulate daily changes in market values over the historical period; inputs are selected based on the risk profile of each portfolio, as sensitivities and historical time series used to generate daily market values may be different across product types or risk management systems. The VaR model results across all portfolios are aggregated at the Firm level.

As VaR is based on historical data, it is an imperfect measure of market risk exposure and potential future losses. In addition, based on their reliance on available historical data, limited time horizons, and other factors, VaR measures are inherently limited in their ability to measure certain risks and to predict losses, particularly those associated with market illiquidity and sudden or severe shifts in market conditions.

For certain products, specific risk parameters are not captured in VaR due to the lack of liquidity and availability of appropriate historical data. The Firm uses proxies to estimate the VaR for these and other products when daily time series are not available. It is likely that using an actual price-based time series for these products, if available, would affect the VaR results presented. The Firm therefore considers other nonstatistical measures such as stress testing, in addition to VaR, to capture and manage its market risk positions.

As VaR model calculations require daily data and a consistent source for valuation, the daily market data used may be different than the independent third-party data collected for VCG price testing in its monthly valuation process. For example, in cases where market prices are not observable, or where proxies are used in VaR historical time series, the data sources may differ. Refer to Valuation process in Note 2 for further information on the Firm’s valuation process.

The Firm’s VaR model calculations are periodically evaluated and enhanced in response to changes in the composition of the Firm’s portfolios, changes in market conditions, improvements in the Firm’s modeling techniques and measurements, and other factors. Such changes may affect historical comparisons of VaR results. Refer to Estimations and Model Risk Management on page 153 for information regarding model reviews and approvals.

The Firm calculates separately a daily aggregated VaR in accordance with regulatory rules (“Regulatory VaR”), which is used to derive the Firm’s regulatory VaR-based capital requirements under Basel III capital rules. This Regulatory VaR model framework currently assumes a ten business-day holding period and an expected tail-loss methodology which approximates a 99% confidence level. Regulatory VaR is applied to “covered” positions as defined by Basel III capital rules, which may be different than the positions included in the Firm’s Risk Management VaR. For example, credit derivative hedges of accrual loans are included in the Firm’s Risk Management VaR, while Regulatory VaR excludes these credit derivative hedges. In addition, in contrast to the Firm’s Risk Management VaR, Regulatory VaR currently excludes the diversification benefit for certain VaR models.

Refer to JPMorganChase’s Basel III Pillar 3 Regulatory Capital Disclosures reports, which are available on the Firm’s website, for additional information on Regulatory VaR and the other components of market risk regulatory capital for the Firm (e.g., VaR-based measure, stressed VaR-based measure and the respective backtesting).

JPMorgan Chase & Co./2025 Form 10-K

135

Management’s discussion and analysis

The table below shows the results of the Firm’s Risk Management VaR measure using a 95% confidence level. VaR can vary significantly as positions change, market volatility fluctuates, and diversification benefits change.

Total VaR

As of or for the year ended December 31,

2025

2024

(in millions)

 Avg.

Min

Max

 Avg.

Min

Max

CIB trading VaR by risk type

Fixed income

$

35 

$

27 

$

51 

$

34 

$

26 

$

53 

Foreign exchange

9 

6 

15 

15 

7 

23 

Equities

17 

7 

138 

(e)

8 

4 

15 

Commodities and other

24 

10 

48 

8 

6 

13 

Diversification benefit to CIB trading VaR (a)

(51)

NM

NM

(32)

NM

NM

CIB trading VaR

34 

21 

142 

33 

27 

42 

Credit Portfolio VaR(b)

21 

16 

27 

22 

18 

28 

Diversification benefit to CIB VaR(a)

(18)

NM

NM

(16)

NM

NM

CIB VaR

37 

23 

133 

39 

27 

52 

CCB VaR

4 

2 

7 

3 

1 

6 

AWM VaR(c)

9 

8 

12 

9 

5 

10 

Corporate VaR(d)

10 

9 

12 

23 

7 

102 

Diversification benefit to other VaR(a)

(11)

NM

NM

(10)

NM

NM

Other VaR

12 

10 

14 

25 

10 

101 

Diversification benefit to CIB and other VaR(a)

(9)

NM

NM

(17)

NM

NM

Total VaR

$

40 

$

25 

$

136 

$

47 

$

30 

$

91 

(a)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 LOBs, Corporate, and risk types. For maximum and minimum VaR, diversification benefit is not meaningful as the maximum and minimum VaR for each portfolio may have occurred on different trading days than the components.

(b)Includes the derivative CVA, hedges of the CVA and credit protection purchased against certain retained loans and lending-related commitments, which are reported in principal transactions revenue. This VaR does not include the retained loan portfolio, which is not reported at fair value.

(c)Includes credit protection purchased against certain retained loans and lending-related commitments. This VaR does not include the retained loan portfolio, which is not reported at fair value.

(d)Includes Visa Class C common shares which the Firm disposed of in the second and third quarters of 2024 that resulted in elevated average and maximum Corporate VaR, Other VaR and Total VaR.

(e)The elevated maximum VaR was due to a client-driven equity position that has since matured.

Effective April 1, 2025, the Firm refined the historical proxy time series inputs to one of its VaR models to more appropriately reflect the risk exposure from certain securitization warehousing loan positions. If this refined time series was effective at the beginning of each year presented, the average Total VaR and each of the components would have been lower by the amounts reported in the following table:

(In millions)

Amounts by which reported average VaR would have been lower for the years ended:

December 31, 2025

December 31, 2024

CIB trading VaR by risk type: Fixed income

$

(1)

$

(3)

CIB trading VaR

(2)

(3)

CIB VaR

(1)

(3)

Total VaR

(1)

(2)

2025 compared with 2024

Average Total VaR decreased by $7 million for the year ended December 31, 2025 when compared with the prior year driven by decreased exposure to Visa Class C common shares in Corporate VaR and market volatility rolling out of the one-year historical look-back period in the foreign exchange and fixed income risk types. This decrease was predominantly offset by increased risk exposure in the commodities and equities risk types.

136

JPMorgan Chase & Co./2025 Form 10-K

The following graph presents daily Risk Management VaR for the four trailing quarters. The movements in the first quarter of 2025 were due to a client-driven equity position that has since matured.

Daily Risk Management VaR

First Quarter

2025

Second Quarter

2025

Third Quarter

2025

Fourth Quarter

2025

JPMorgan Chase & Co./2025 Form 10-K

137

Management’s discussion and analysis

VaR backtesting

The Firm performs daily VaR model backtesting, which compares the daily Risk Management VaR results with the daily gains and losses that are utilized for VaR backtesting purposes. The gains and losses depicted in the chart below do not reflect the Firm’s reported revenue as they exclude certain components of total net revenue, such as those associated with the execution of new transactions (i.e., intraday client-driven trading and intraday risk management activities), fees, commissions, other valuation adjustments and net interest income. These excluded components of total net revenue may more than offset the backtesting gain or loss on a particular day. The definition of backtesting gains and losses above is consistent with the requirements for backtesting under Basel III capital rules.

A backtesting exception occurs when the daily backtesting loss exceeds the daily Risk Management VaR for the prior day. Under the Firm’s Risk Management VaR methodology, assuming current changes in market values are consistent with the historical changes used in the simulation, the Firm would expect to incur VaR backtesting exceptions five times every 100 trading days on average. The number of VaR backtesting exceptions observed can differ from the statistically expected number of backtesting exceptions if the current level of market volatility is materially different from the level of market volatility during the 12 months of historical data used in the VaR calculation.

For the 12 months ended December 31, 2025, the Firm posted backtesting gains on 174 of the 259 days, and observed 12 VaR backtesting exceptions, of which four were in the three months ended December 31, 2025. Firmwide backtesting loss days can differ from the loss days for which Fixed Income Markets and Equity Markets posted losses, as disclosed in CIB Markets revenue, as the population of positions which comprise each metric are different and due to the exclusion of certain components of total net revenue in backtesting gains and losses as described above.

The following chart presents the distribution of Firmwide daily backtesting gains and losses for the trailing 12 months and three months ended December 31, 2025. The daily backtesting losses are displayed as a percentage of the corresponding daily Risk Management VaR. The count of days with backtesting losses are shown in aggregate, in fifty percentage point intervals. Backtesting exceptions are displayed within the intervals that are greater than one hundred percent. The results in the chart below differ from the results of backtesting disclosed in the Market Risk section of the Firm’s Basel III Pillar 3 Regulatory Capital Disclosures reports, which are based on Regulatory VaR applied to the Firm’s covered positions.

Distribution of Daily Backtesting Gains and Losses

138

JPMorgan Chase & Co./2025 Form 10-K

Other risk measures

Stress testing

Along with VaR, stress testing is an important tool used to assess risk. While VaR reflects the risk of loss due to adverse changes in markets using recent historical market behavior, stress testing reflects the risk of loss from hypothetical changes in the value of market risk sensitive positions applied simultaneously. Stress testing measures the Firm’s vulnerability to losses under a range of stressed but possible economic and market scenarios. The results are used to understand the exposures responsible for those potential losses and are measured against limits.

The Firm’s stress framework covers market risk sensitive positions in the LOBs and Corporate. The framework is used to calculate multiple magnitudes of potential stress for both market rallies and market sell-offs, assuming significant changes in market factors such as credit spreads, equity prices, interest rates, currency rates and commodity prices, and combines them in multiple ways to capture an array of hypothetical economic and market scenarios.

The Firm generates a number of scenarios that focus on tail events in specific asset classes and geographies, including how the event may impact multiple market factors simultaneously. Scenarios also incorporate specific idiosyncratic risks and stress basis risk between different products. The flexibility in the stress framework allows the Firm to construct new scenarios that can test the outcomes against possible future stress events. Stress testing results are reported periodically to senior management of the Firm, as appropriate.

Stress methodologies are governed by the overall stress framework, under the oversight of Market Risk Management. The Firmwide Market Risk Stress Methodology Committee reviews and approves changes to stress testing methodology and scenarios across the Firm. Significant changes to the framework are escalated to senior management, as appropriate. In addition, stress methodology and the models to calculate the stress results are subject to the Firm’s Estimations and Model Risk Management Policy

The Firm’s stress testing framework is utilized in calculating the Firm’s CCAR and other stress test results, which are reported periodically to the Board of Directors. In addition, stress testing results are incorporated into the Firm’s Risk Appetite framework, and are reported periodically to the Board Risk Committee.

Profit and loss drawdowns

Profit and loss drawdowns are used to highlight trading losses above certain levels of risk tolerance. A profit and loss drawdown is a decline in revenue from its year-to-date peak level.

Structural interest rate risk management

The effect of interest rate exposure on the Firm’s reported net income is important as interest rate risk represents one of the Firm’s significant market risks. Interest rate risk arises not only from trading activities which are included in VaR, but also from the Firm’s traditional banking activities, which include extension of loans and credit facilities, taking deposits, issuing debt, as well as the investment securities portfolio, and associated derivative instruments. Refer to the table on page 134 for a summary by LOB and Corporate identifying positions included in earnings-at-risk.

Governance

The CTC Risk Committee establishes the Firm’s interest rate risk management policy and related limits, which are subject to approval by the Board Risk Committee. Treasury and CIO, working in partnership with the LOBs, calculates the Firm’s structural interest rate risk profile and reviews it with senior management, including the CTC Risk Committee. In addition, oversight of structural interest rate risk is managed through a dedicated risk function reporting to the CTC CRO. This risk function is responsible for providing independent oversight and governance around assumptions and establishing and monitoring limits for structural interest rate risk, including limits related to earnings-at-risk and economic value sensitivity. The Firm manages structural interest rate risk generally through its investment securities portfolio and interest rate derivatives.

Key risk drivers and risk management process

Structural interest rate risk can arise due to a variety of factors, including:

•Differences in timing among the maturity or repricing of assets, liabilities and off-balance sheet instruments

•Differences in the amounts of assets, liabilities and off-balance sheet instruments that are maturing or repricing at the same time

•Differences in the amounts by which short-term and long-term market interest rates change (for example, changes in the slope of the yield curve)

•The impact of changes in the maturity of various assets, liabilities or off-balance sheet instruments as interest rates change

The Firm manages interest rate exposure related to its assets and liabilities on a consolidated, Firmwide basis. Business units transfer their interest rate risk to Treasury and CIO through funds transfer pricing, which takes into account the elements of interest rate exposure that can be risk-managed in financial markets. These elements include asset and liability balances and contractual rates of interest, contractual principal payment schedules, expected prepayment

JPMorgan Chase & Co./2025 Form 10-K

139

Management’s discussion and analysis

experience, interest rate reset dates and maturities, rate indices used for repricing, and any interest rate ceilings or floors for adjustable rate products.

Earnings-at-risk

One way that the Firm evaluates its structural interest rate risk is through earnings-at-risk. Earnings-at-risk estimates the Firm’s interest rate exposure for a given interest rate scenario. It is presented as a sensitivity to a baseline, which includes net interest income and certain interest rate sensitive fees. The baseline uses market interest rates and, in the case of deposits, pricing assumptions. The Firm conducts simulations of changes to this baseline for interest rate-sensitive assets and liabilities denominated in U.S. dollars and other currencies (“non-U.S. dollar” currencies). These simulations primarily include retained and held-for-sale loans, deposits, deposits with banks and financing activities, investment securities, long-term debt, related interest rate hedges, and funds transfer pricing of other positions in risk management VaR and other sensitivity-based measures as described on page 134. These simulations also include hedges of non-U.S. dollar foreign exchange exposures arising from capital investments. Refer to non-U.S. dollar foreign exchange risk on page 142 for more information.

Earnings-at-risk scenarios estimate the potential change to a baseline over the following 12 months utilizing multiple assumptions. These scenarios include a parallel shift involving changes to both short-term and long-term rates by an equal amount; a steeper yield curve involving holding short-term rates constant and increasing long-term rates; and a flatter yield curve involving increasing short-term rates and holding long-term rates constant or holding short-term rates constant and decreasing long-term rates. These scenarios consider many different factors, including:

•The impact on exposures as a result of instantaneous changes in interest rates from baseline rates.

•Forecasted balance sheet, as well as modeled prepayment and reinvestment behavior, but excluding assumptions about actions that could be taken by the Firm or its clients and customers in response to instantaneous rate changes. Mortgage prepayment assumptions are based on the interest rates used in the scenarios compared with underlying contractual rates, the time since origination, and other factors which are updated periodically based on historical experience. Deposit forecasts are a key assumption in the Firm’s earnings-at-risk. The baseline reflects certain assumptions relating to the Federal Reserve’s balance sheet policy (e.g., quantitative tightening and usage at the Reverse Repurchase Facility) that require management judgment. The amount of

deposits that the Firm holds at any given time may be influenced by Federal Reserve actions, as well as broader monetary conditions and competition for deposits.

•The pricing sensitivity of deposits, known as deposit betas, represent the amount by which deposit rates paid could change upon a given change in market interest rates. Actual deposit rates paid may differ from the modeled assumptions, primarily due to customer behavior and competition for deposits.

The Firm performs sensitivity analyses of the assumptions used in earnings-at-risk scenarios, including with respect to deposit betas and forecasts of deposit balances, both of which are especially significant in the case of consumer deposits. The results of these sensitivity analyses are reported to the CTC Risk Committee and the Board Risk Committee.

The Firm’s earnings-at-risk scenarios are periodically evaluated and enhanced in response to changes in the composition of the Firm’s balance sheet, changes in market conditions, improvements in the Firm’s simulation and other factors.

The Firm’s earnings-at-risk sensitivities are measures of the Firm’s interest rate exposure. The Firm’s actual net interest income for the rate changes presented may differ as the earnings-at-risk scenarios are modelled as instantaneous changes and exclude any actions that could be taken by the Firm or its clients or customers in response to rate changes. Other significant assumptions in the earnings-at-risk scenarios, including mortgage prepayments and deposit rates paid, may also differ from actual results. The Firm’s forecast for net interest income is included in the Firm’s outlook on page 50.

140

JPMorgan Chase & Co./2025 Form 10-K

The Firm’s sensitivities are presented in the table below.

December 31,

(in billions)

2025(a)

2024(a)

Parallel shift:

+100 bps shift in rates

$

2.1 

$

2.3 

-100 bps shift in rates

(2.4)

(2.5)

+200 bps shift in rates

3.7 

4.6 

-200 bps shift in rates

(6.0)

(4.9)

Steeper yield curve:

+100 bps shift in long-term rates

1.4 

1.0 

-100 bps shift in short-term rates

(1.0)

(1.4)

Flatter yield curve:

+100 bps shift in short-term rates

0.7 

1.2 

-100 bps shift in long-term rates

(1.4)

(1.1)

(a)Reflects the simultaneous shift of U.S. dollar and non-U.S. dollar rates, including hedges of non-U.S. dollar capital investments. Non-U.S. dollar sensitivities were insignificant.

The change in the Firm’s sensitivities as of December 31, 2025 compared to December 31, 2024, was primarily driven by the net impact of Treasury and CIO actual and forecasted actions, including an increase in cash flow hedges of floating rate loans and in investment securities, both of which add duration. The net impact of these actions was largely offset, and more than offset for the -200 bps parallel shift in rates, by the effects from changes in Firmwide deposits.

Economic value sensitivity

In addition to earnings-at-risk, which is measured as a sensitivity to a baseline of earnings over the next 12 months, the Firm also measures economic value sensitivity (“EVS”). EVS stress tests the longer-term economic value of equity by measuring the sensitivity of the Firm’s current balance sheet, primarily retained loans, deposits, debt and investment securities as well as related hedges, under various interest rate scenarios. The Firm's pricing and cash flow assumptions associated with deposits, as well as prepayment assumptions for loans and securities, are significant factors in the EVS measure. In accordance with the CTC interest rate risk management policy, the Firm has established limits on EVS as a percentage of TCE.

Certain assumptions used in the EVS measure may differ from those required in the fair value measurement note to the Consolidated Financial Statements. For example, certain assets and liabilities with no stated maturity, such as credit card receivables and deposits, have longer assumed durations in the EVS measure. Additional information on long-term debt and held to maturity investment securities is disclosed on page 194 in Note 2.

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Management’s discussion and analysis

Non-U.S. dollar foreign exchange risk

Non-U.S. dollar FX risk is the risk that changes in foreign exchange rates affect the value of the Firm’s assets or liabilities or future results. The Firm has structural non-U.S. dollar FX exposures arising from capital investments, forecasted expense and revenue, the investment securities portfolio and non-U.S. dollar-denominated debt issuance. Treasury and CIO, working in partnership with the LOBs, primarily manage these risks on behalf of the Firm. Treasury and CIO may hedge certain of these risks using derivatives. Refer to Business Segment & Corporate Results on page 63 for additional information.

Other sensitivity-based measures

The Firm quantifies the market risk of certain debt and equity and funding-related exposures by assessing the potential impact on net revenue, other comprehensive income (“OCI”) and noninterest expense due to changes in relevant market variables. Refer to the predominant business activities that give rise to market risk on page 134 for additional information on the positions captured in other sensitivity-based measures.

The table below represents the potential impact to net revenue, OCI or noninterest expense for market risk sensitive instruments that are not included in VaR or earnings-at-risk. Where appropriate, instruments used for hedging purposes are reported net of the positions being hedged. The sensitivities disclosed in the table below may not be representative of the actual gain or loss that would have been realized at December 31, 2025 and 2024, as the movement in market parameters across maturities may vary and are not intended to imply management’s expectation of future changes in these sensitivities.

Gain/(loss) (in millions)

Activity

Description

Sensitivity measure

December 31, 2025

December 31, 2024

Debt and equity(a)

Asset Management activities

Consists of seed capital and related hedges; fund co-investments(b); and certain deferred compensation and related hedges(c)

10% decline in market value

$

(60)

$

(53)

Other debt and equity

Consists of certain real estate-related fair value option elected loans, privately held equity and other investments held at fair value(b)

10% decline in market value

(1,549)

(1,030)

Funding-related exposures

Non-USD LTD cross-currency basis

Represents the basis risk on derivatives used to hedge the foreign exchange risk on the non-USD LTD(d)

1 basis point parallel tightening of cross currency basis

(11)

(10)

Non-USD LTD hedges foreign currency (“FX”) exposure

Primarily represents the foreign exchange revaluation on the fair value of the derivative hedges(d)

10% depreciation of currency

19 

28 

Derivatives – funding spread risk

Impact of changes in the spread related to derivatives FVA(b)

1 basis point parallel increase in spread

(2)

(2)

Fair value option elected liabilities - funding spread risk

Impact of changes in the spread related to fair value option elected liabilities DVA(d)

1 basis point parallel increase in spread

55 

47 

(a)Excludes equity securities without readily determinable fair values that are measured under the measurement alternative. Refer to Note 2 for additional information.

(b)Impact recognized through net revenue.

(c)Impact recognized through noninterest expense.

(d)Impact recognized through OCI.

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JPMorgan Chase & Co./2025 Form 10-K

COUNTRY RISK MANAGEMENT

The Firm, through its LOBs and Corporate, may be exposed to country risk resulting from financial, economic, political or other significant developments which adversely affect the value of the Firm’s exposures related to a particular country or set of countries. The Country Risk Management group actively monitors the various portfolios which may be impacted by these developments and measures the extent to which the Firm’s exposures are diversified given the Firm’s strategy and risk tolerance relative to a country.

Organization and management

Country Risk Management is an independent risk management function that assesses, measures and monitors exposure to country risk across the Firm.

The Firm’s country risk management function includes the following activities:

•Maintaining policies, procedures and standards consistent with a comprehensive country risk framework

•Assigning sovereign ratings, assessing country risks and establishing risk tolerance relative to a country

•Measuring and monitoring country risk exposure and stress across the Firm

•Managing and approving country limits and reporting trends and limit breaches to senior management

•Developing surveillance tools, such as signaling models and ratings indicators, for early identification of potential country risk concerns

•Providing country risk scenario analysis

Sources and measurement

The Firm is exposed to country risk through its lending and deposits, investing, and market-making activities, whether cross-border or locally funded. Country exposure includes activity with both government and private-sector entities in a country.

Under the Firm’s internal country risk management approach, attribution of exposure to an individual country is based on the country where the largest proportion of the assets of the counterparty, issuer, obligor or guarantor are located or where the largest proportion of its revenue is derived, which may be different than the domicile (i.e. legal residence) or country of incorporation.

Individual country exposures reflect an aggregation of the Firm’s risk to an immediate default, with zero recovery, of the counterparties, issuers, obligors or guarantors attributed to that country. Activities which result in contingent or indirect exposure to a country are not included in the country exposure measure (for example, providing clearing services or secondary exposure to collateral on securities financing receivables).

Assumptions are sometimes required in determining the measurement and allocation of country exposure, particularly in the case of certain non-linear or index products, or where the nature of the counterparty, issuer, obligor or guarantor is not suitable for attribution to an individual country. The use of different measurement approaches or assumptions could affect the amount of reported country exposure.

Under the Firm’s internal country risk measurement framework:

•Deposits with banks are measured as the cash balances placed with central banks, commercial banks, and other financial institutions

•Lending exposures are measured at the total committed amount (funded and unfunded), net of the allowance for credit losses and eligible cash and marketable securities collateral received

•Securities financing exposures are measured at their receivable balance, net of eligible collateral received

•Debt and equity securities are measured at the fair value of all positions, including both long and short positions

•Counterparty exposure on derivative receivables is measured at the derivative’s fair value, net of the fair value of the eligible collateral received

•Credit derivatives exposure is measured at the net notional amount of protection purchased or sold for the same underlying reference entity, inclusive of the fair value of the derivative receivable or payable, reflecting the manner in which the Firm manages these exposures

The Firm’s internal country risk reporting differs from the reporting provided under the FFIEC bank regulatory requirements.

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143

Management’s discussion and analysis

Stress testing

Stress testing is an important component of the Firm’s country risk management framework, which aims to estimate and limit losses arising from a country crisis by measuring the impact of adverse asset price movements to a country based on market shocks combined with counterparty specific assumptions. Country Risk Management periodically designs and runs tailored stress scenarios to test vulnerabilities to individual countries or sets of countries in response to specific or potential market events, sector performance concerns, sovereign actions and geopolitical risks. These tailored stress results are used to inform potential risk reduction across the Firm, as necessary.

Risk reporting

Country exposure and stress are measured and reported regularly, and used by Country Risk Management to identify trends and monitor high usages and breaches against limits.

For country risk management purposes, the Firm may report exposure to jurisdictions that are not fully autonomous, including dependent territories and Special Administrative Regions (“SAR”) such as Hong Kong SAR, separately from the independent sovereign states with which they are associated.

The following table presents the Firm’s top 20 exposures by country (excluding the U.S.) as of December 31, 2025, and their comparative exposures as of December 31, 2024. The top 20 country exposures represent the Firm’s largest total exposures by individual country. Country exposures may fluctuate from period to period due to a variety of factors, including client activity, market flows and liquidity management activities undertaken by the Firm.

The increase in exposure to the United Kingdom when compared to December 31, 2024 was predominantly driven by higher holdings of government debt securities due to increased investment and market-making securities activities, as well as an increase in wholesale lending exposures.

The Firm continues to monitor its exposure to Russia, which corresponds to cash placed with the central bank, but which excludes deposits placed on behalf of clients at the Deposit Insurance Agency of Russia. The Firm currently believes that its remaining exposure to Russia is not material. Refer to Note 30 on page 303 for information concerning Russian litigation.

Top 20 country exposures (excluding the U.S.)(a)

December 31, (in billions)

2025

2024(f)

Deposits with banks(b)

Lending(c)

Trading and investing(d)

Other(e)

Total exposure

Total exposure

Germany

$

83.9 

$

15.7 

$

— 

$

0.7 

$

100.3 

$

103.9 

United Kingdom

26.1 

27.0 

36.9 

3.2 

93.2 

76.1 

Japan

64.4 

4.2 

8.4 

0.3 

77.3 

63.1 

France

0.7 

14.6 

8.3 

1.3 

24.9 

18.0 

Brazil

10.0 

5.0 

5.9 

— 

20.9 

14.7 

Australia

5.6 

9.1 

2.8 

0.1 

17.6 

14.3 

Canada

2.0 

11.9 

2.1 

0.2 

16.2 

15.1 

Switzerland

4.5 

5.2 

2.3 

3.0 

15.0 

13.6 

Mexico

1.7 

8.9 

3.0 

— 

13.6 

7.2 

South Korea

1.1 

3.3 

8.5 

0.5 

13.4 

10.3 

Mainland China

2.7 

6.6 

3.9 

— 

13.2 

13.4 

India

1.2 

6.7 

4.7 

0.4 

13.0 

11.3 

Saudi Arabia

0.9 

8.9 

2.6 

— 

12.4 

9.4 

Italy

0.1 

8.5 

2.7 

0.3 

11.6 

10.4 

Singapore

2.0 

2.5 

4.4 

0.4 

9.3 

7.4 

Belgium

4.5 

1.6 

0.5 

— 

6.6 

5.4 

Netherlands

0.2 

6.1 

0.1 

0.1 

6.5 

5.9 

United Arab Emirates

0.1 

4.7 

0.9 

— 

5.7 

2.6 

Chile

3.0 

1.6 

0.5 

— 

5.1 

1.7 

Spain

0.1 

4.4 

0.1 

— 

4.6 

6.1 

(a)Country exposures presented in the table reflect 87% and 88% of total Firmwide non-U.S. exposure, where exposure is attributed to an individual country based on the Firm’s internal country risk management approach, at December 31, 2025 and 2024, respectively.

(b)Predominantly represents cash placed with central banks.

(c)Includes loans and accrued interest receivable, lending-related commitments (net of eligible collateral and the allowance for credit losses). Excludes intra-day and operating exposures, such as those from settlement and clearing activities.

(d)Includes market-making positions and hedging, investment securities, and counterparty exposure on derivative and securities financings net of eligible collateral. Market-making positions and hedging includes exposure from single reference entity (“single-name”), index and other multiple reference entity transactions for which one or more of the underlying reference entities is in a country listed in the above table.

(e)Includes physical commodities inventory and clearing house guarantee funds.

(f)The country rankings presented in the table as of December 31, 2024, are based on the country rankings of the corresponding exposures at December 31, 2025, not actual rankings of such exposures at December 31, 2024.

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JPMorgan Chase & Co./2025 Form 10-K

CLIMATE RISK MANAGEMENT

Climate risk refers to the potential threats posed by climate change to the Firm and its clients, customers, operations and business strategy. Climate change is viewed as a driver of risk that may impact existing types of risks managed by the Firm. Climate risk is categorized into physical risk and transition risk.

Physical risk involves economic costs and financial losses due to a changing climate. Acute physical risk drivers include the increased frequency or severity of climate and weather events, such as floods, wildfires and tropical cyclones. Chronic physical risk drivers include more gradual shifts in the climate, such as sea level rise, persistent changes in precipitation levels and increases in average ambient temperatures. Indirect physical risk drivers include the second-order effects of these acute and chronic risks, such as supply chain disruptions or changes to property valuations.

Transition risk involves the financial and economic consequences of society’s shift toward a lower-carbon economy. Transition risk drivers include possible changes in public policy, adoption of new technologies and shifts in consumer preferences. Transition risks may also be influenced by changes in the physical climate.

Organization and management

The Firm’s Climate, Nature and Social Risk Management function is responsible for establishing and maintaining the Firmwide framework and strategy for managing climate risk.

Other responsibilities of that function include:

•Establishing and maintaining policies, standards, procedures and processes to support identification, escalation, monitoring and management of climate risk across the Firm

•Developing metrics, scenarios and stress testing mechanisms designed to assess the range of potential climate-related financial and economic impacts to the Firm

•Establishing a Firmwide climate risk data strategy and the supporting climate risk technology infrastructure

The LOBs and Corporate are responsible for the identification, assessment and management of climate risks present in their business activities and for the adherence to applicable climate-related laws, rules and regulations.

Governance and oversight

The Firm’s framework and strategy for identifying, monitoring and managing climate risk is integrated into the Firm’s risk governance framework. This framework allows for the escalation of significant climate risk-related issues to LOB Risk Committees. The Board Risk Committee also receives information on significant climate risks and climate-related initiatives, as appropriate.

JPMorgan Chase & Co./2025 Form 10-K

145

Management’s discussion and analysis

OPERATIONAL RISK MANAGEMENT

Operational risk is the risk of an adverse outcome resulting from inadequate or failed internal processes or systems; human factors; or external events impacting the Firm’s processes or systems. Operational risk includes compliance, conduct, legal, and estimations and model risk. Operational risk is inherent in the Firm’s activities and can manifest itself in various ways, including fraudulent acts, business disruptions (including those caused by extraordinary events beyond the Firm's control), cyber attacks, inappropriate employee behavior, failure to comply with applicable laws, rules and regulations or failure of vendors or other third party providers to perform in accordance with their agreements. Operational Risk Management attempts to manage operational risk at appropriate levels in light of the Firm’s financial position, the characteristics of its businesses, and the markets and regulatory environments in which it operates.

Operational Risk Management Framework

The Firm’s Compliance, Conduct, and Operational Risk (“CCOR”) Management Framework is designed to enable the Firm to govern, identify, measure, monitor and test, manage and report on the Firm’s operational risk.

Operational Risk Governance

The LOBs and Corporate are responsible for the management of operational risk. The Control Management Organization, which consists of control managers within each LOB and Corporate, is responsible for the day-to-day execution of the CCOR Management Framework.

The Firm’s Global Chief Compliance Officer (“CCO”) and FRE for Operational Risk and Qualitative Risk Appetite is responsible for defining the CCOR Management Framework and establishing the minimum standards for its execution. The LOB and Corporate aligned officers of the CCOR organization oversee activity performed by their aligned LOB and Corporate. These officers report to the Global CCO and FRE for Operational Risk and Qualitative Risk Appetite and are independent of the respective businesses or functions that they oversee. The CCOR Management Framework is included in the Risk Governance and Oversight Policy that is reviewed and approved by the Board Risk Committee periodically.

Operational Risk Identification

The Firm utilizes a structured risk and control self-assessment process that is executed by the LOBs and Corporate. As part of this process, the LOBs and Corporate evaluate the effectiveness of their respective control environment to assess circumstances in which controls have failed, and to determine where remediation efforts may be required. The Firm’s Operational Risk and Compliance organization

(“Operational Risk and Compliance”) provides oversight of and challenge to these evaluations and may also perform independent assessments of significant operational risk events and areas of concentrated or emerging risk.

Operational Risk Measurement

The CCOR organization is responsible for providing independent, risk-based review and oversight of assessments conducted by the LOBs and Corporate with respect to compliance, conduct and operational risks. This includes oversight of the LOBs’ and Corporate’s assessments of the design, execution, and evaluation of associated controls, against standards established by the CCOR organization.

In addition, Operational Risk and Compliance assesses operational risks through quantitative means, including operational risk-based capital and estimation of operational risk losses under both baseline and stressed conditions.

The primary component of the operational risk-based capital estimate is the Loss Distribution Approach (“LDA”) statistical model, which simulates the projected frequency and severity of operational risk losses based on historical data. The LDA model is used to estimate an aggregate operational risk loss over a one-year time horizon, at a 99.9% confidence level. The LDA model incorporates actual internal operational risk losses in the quarter following the period in which those losses were realized, and the calculation generally continues to reflect such losses even after the issues or business activities giving rise to the losses have been remediated or reduced.

As required under the Basel III capital framework, the Firm’s operational risk capital methodology, which uses the Advanced Measurement Approach (“AMA”), incorporates internal and external losses as well as management’s view of tail risk captured through operational risk scenario analysis, and evaluation of key business environment and internal control metrics. The Firm does not reflect the impact of insurance in its AMA estimate of operational risk capital.

The Firm considers the impact of stressed economic conditions on operational risk losses and develops a forward looking view of material operational risk events that may occur in a stressed environment. The Firm’s operational risk stress testing framework is utilized in calculating results for the Firm’s CCAR and other stress testing processes.

Refer to Capital Risk Management on pages 89–99 for information related to operational risk RWA, and CCAR.

Operational Risk Monitoring and Testing

Independent testing and monitoring of controls are integral components of the CCOR Management Framework. These testing and monitoring activities are

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JPMorgan Chase & Co./2025 Form 10-K

conducted under the CCOR organization’s Monitoring and Testing Program (“M&T Program”) and:

•are based upon the Firm’s compliance, conduct and operational risk assessments;

•are designed to identify control gaps or deficiencies, including potential non-compliance with applicable laws, rules and regulations; and

•assess whether the procedures, processes and controls used by the Firm to mitigate compliance, conduct and operational risk are well-designed and functioning as intended.

The Testing Center of Excellence (“TCoE”), reporting to the Control Management Organization, is responsible for executing testing activities outlined under the M&T Program, and the CCOR organization Testing Program Governance and Oversight team provides independent governance and oversight of both the M&T Program and the TCoE testing activities through defined processes and responsibilities.

The results of risk assessments performed by Operational Risk and Compliance are used in connection with their independent monitoring and testing compliance of the LOBs and Corporate with laws, rules and regulations. Through monitoring and testing, Operational Risk and Compliance independently identify areas of heightened operational risk and tests the effectiveness of controls within the LOBs and Corporate.

Management of Operational Risk

The operational risk areas or issues identified through monitoring and testing are escalated to the LOBs and Corporate to be remediated through action plans, as needed, to mitigate operational risk. Operational Risk and Compliance may advise the LOBs and Corporate in the development and implementation of action plans.

Operational Risk Reporting

All employees of the Firm are expected to escalate risks appropriately. Risks identified by Operational Risk and Compliance are escalated to the appropriate LOB and Corporate Control Committees, as needed. Operational Risk and Compliance has established standards designed to ensure that consistent operational risk reporting and operational risk reports are produced on a Firmwide basis as well as by the LOBs and Corporate. Reporting includes the evaluation of key risk and performance indicators against established thresholds as well as the assessment of different types of operational risk against stated risk appetite. The standards establish escalation protocols to senior management and to the Board of Directors.

Insurance

One of the ways in which operational risk may be mitigated is through insurance maintained by the Firm. The Firm purchases insurance from commercial insurers and maintains a wholly-owned captive insurer, Park Assurance Company. Insurance may also be

required by third parties with whom the Firm does business.

Subcategories and examples of operational risks

Operational risk can manifest itself in various ways. Operational risk subcategories include Compliance risk, Conduct risk, Legal risk, and Estimations and Model risk. Refer to pages 150, 151, 152 and 153, respectively for more information on Compliance, Conduct, Legal, and Estimations and Model risk. Details on other select examples of operational risks such as firmwide resiliency, payment fraud and third-party outsourcing, as well as cybersecurity, are provided below.

Firmwide resiliency risk

Disruptions of the Firm’s business and operations can occur due to forces beyond the Firm’s control such as health emergencies, severe weather, natural disasters, the effects of climate change, utility or telecommunications failures, interruption of service from third-party service providers, cyberattacks, civil unrest or terrorism. The Firm’s resiliency framework is intended to enable the Firm to prepare for and adapt to changing conditions and withstand and recover from, and address adverse effects on its operations caused by, disruptions that may impact critical business functions and supporting assets, including its staff, technology, data and facilities, as well as those of third-party service providers. The framework includes governance, awareness training, planning and testing of recovery strategies, as well as strategic and tactical initiatives to identify, assess, and manage resiliency risks. The framework operates in accordance with the Firm’s overall approach to Operational Risk Management, including alignment with technology, cybersecurity, data, physical security, crisis management, real estate and outsourcing programs.

Payment fraud risk

Payment fraud risk is the risk of external and internal parties unlawfully obtaining personal monetary benefit through misdirected or otherwise improper payment. The Firm employs various controls for managing payment fraud risk as well as providing employee and client education and awareness trainings.

Third-party outsourcing risk

The Firm‘s Third-Party Oversight (“TPO”) and Inter-affiliates Oversight (“IAO”) frameworks assist the LOBs and Corporate in selecting, documenting, onboarding, monitoring and managing their supplier relationships including services provided by affiliates. The objectives of the TPO framework are to hold suppliers and other third parties to an appropriate standard of operational performance and to mitigate key risks, including data loss and business disruptions. The Corporate Third-Party Oversight group is responsible for Firmwide training, monitoring, reporting and standards with respect to third-party outsourcing risks.

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147

Management’s discussion and analysis

Cybersecurity risk

Cybersecurity risk is the risk of harm or loss resulting from misuse or abuse of technology or the unauthorized disclosure of data.

Overview

Cybersecurity risk is an important and continuously evolving focus for the Firm. Significant resources are devoted to protecting and enhancing the security of computer systems, software, networks, storage devices, and other technology. The Firm’s security efforts are designed to protect against, among other things, cybersecurity attacks that can result in unauthorized access to confidential information, the destruction of data, disruptions to or degradations of service, the sabotaging of systems or other damage.

The Firm has experienced, and expects that it will continue to experience, a higher volume and complexity of cyber attacks against the backdrop of heightened geopolitical tensions and emerging technologies that can be leveraged by attackers, including artificial intelligence. The Firm has implemented measures and controls reasonably designed to address this evolving environment, including enhanced threat monitoring. In addition, the Firm continues to review and enhance its capabilities to address associated risks, such as those relating to the management of administrative access to systems.

Third parties with which the Firm does business, that facilitate the Firm’s business activities (e.g., vendors, supply chain, exchanges, clearing houses, central depositories, and financial intermediaries) or that the Firm has acquired are also sources of cybersecurity risk to the Firm. Third party incidents such as system breakdowns or failures, misconduct by the employees of such parties, or cyber attacks, including ransomware and supply-chain compromises, could have a material adverse effect on the Firm, including in circumstances in which an affected third party is unable to deliver a product or service to the Firm or where the incident delivers compromised software to the Firm or results in lost or compromised information of the Firm or its clients or customers.

Clients and customers are also sources of cybersecurity risk to the Firm and its information assets, particularly when their activities and systems are beyond the Firm’s own security and control systems. The Firm engages in periodic discussions with its clients, customers and other external parties concerning cybersecurity risks including opportunities to improve cybersecurity.

Risks from cybersecurity threats, including any previous cybersecurity events, have not materially affected the Firm or its business strategy, results of operations or financial condition. Notwithstanding the comprehensive approach that the Firm takes to address cybersecurity risk, the Firm may not be

successful in preventing or mitigating a future cybersecurity incident that could have a material adverse effect on the Firm or its business strategy, results of operations or financial condition.

Organization and management

The Global Chief Information Security Officer (“CISO”) reports to the Global Chief Information Officer, and is a member of key cybersecurity governance forums. The CISO leads the Global Cybersecurity and Technology Controls organization, which is responsible for identifying technology and cybersecurity risks and for implementing and maintaining controls to manage cybersecurity threats. The CISO and the members of senior management within Global Technology and the Cybersecurity and Technology Controls organizations all have relevant expertise and experience in cybersecurity and information technology risk management, including relevant experience at the Firm, at other financial services companies or in other highly-regulated industries.

The CISO is responsible for the Firm’s Information Security Program, which is designed to prevent, detect and respond to cyber attacks in order to help safeguard the confidentiality, integrity and availability of the Firm's infrastructure, resources and information. The program includes managing the Firm’s global cybersecurity operations centers, providing training, conducting cybersecurity event simulation exercises, implementing the Firm’s policies and standards relating to technology risk and cybersecurity management, and enhancing, as needed, the Firm’s cybersecurity capabilities.

The Firm’s Information Security Program includes the following functions:

Cyber Operations, which is responsible for implementing and maintaining controls designed to detect and defend the Firm against cyber attacks, and includes a dedicated function for incident response and ongoing monitoring for cybersecurity threats and vulnerabilities, including those among the Firm’s third-party suppliers.

Technology Governance, Risk & Controls, which is responsible for operationalizing technology risk and control frameworks, analyzing regulatory developments that may impact the Firm, and developing control catalogs and assessments of controls, as well as overseeing governance and reporting of technology and cybersecurity risk.

Security Awareness, which provides awareness and training that reinforces information risk and security management practices and compliance with the Firm's policies, standards and practices. The training is mandatory for all employees globally on a periodic basis, and it is supplemented by Firmwide testing initiatives, including periodic phishing tests. The Firm

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also provides specialized security training to employees in specific roles, such as application developers. The Firm’s Global Privacy Program requires all employees to take periodic training on data privacy that focuses on confidentiality and security, as well as responding to unauthorized access to or use of information.

Technology Resiliency, which establishes control requirements for planning and testing the prioritized recovery of technology services in the event of degradation or outage, including incident response planning, data backup and retention, and recovery readiness in support of the Firmwide Business Resiliency Program and operational risk management practices.

The Firm has a cybersecurity incident response plan designed to enable the Firm to respond to attempted cybersecurity incidents, coordinate as appropriate with law enforcement and other government agencies, notify clients and customers, as applicable, and recover from such incidents. In addition, the Firm actively partners with appropriate government and law enforcement agencies and peer industry forums, participating in discussions and simulations to assist in understanding the full spectrum of cybersecurity risks and in enhancing defenses and improving resiliency in the Firm’s operating environment.

Governance and oversight

The governance structure for the Global Cybersecurity and Technology Controls organization is designed to appropriately identify, escalate and mitigate cybersecurity risks. Cybersecurity risk management and its governance and oversight are integrated into the Firm’s operational risk management framework, including through the escalation of key risk and control issues to management and the development of risk mitigation plans for heightened risk and control issues. IRM independently assesses and challenges the activities and risk management practices of the Global Cybersecurity and Technology Controls organization related to the identification, assessment, measurement and mitigation of cybersecurity risk. As needed, the Firm engages third-party assessors or auditing firms with industry-recognized expertise on cybersecurity matters to review specific aspects of the Firm’s cybersecurity risk management framework, processes and controls.

The governance and oversight for cybersecurity risk management includes governance forums that inform management of key areas of concern regarding the prevention, detection, mitigation and remediation of cybersecurity risks.

The Cybersecurity and Technology Controls Operating Committee (“CTOC”) is the principal management committee that oversees the Firm’s assessment and management of cybersecurity risk, including oversight of the implementation and maintenance of appropriate controls in support of the Firm’s Information Security Program. The membership of the CTOC includes senior representatives from the Global Cybersecurity and Technology Controls organization and relevant corporate functions, including IRM and Internal Audit.

The CTOC escalates key operational risk and control issues, as appropriate, to the Global Technology Operating Committee (“GTOC”) or its business control committee or to the appropriate LOB and Corporate Control Committees. The GTOC is responsible for the governance of the Firmwide Global Technology organization, including oversight of Firmwide technology strategies, the delivery of technology and technology operations, the effective use of information technology resources, and monitoring and resolving key operational risk and control matters arising in the Global Technology organization.

As part of its oversight of management’s implementation and maintenance of the Firm’s risk management framework, the Firm’s Board of Directors receives periodic updates from the CIO, the CISO and senior members of the CTOC concerning cybersecurity matters. These updates generally include information regarding cybersecurity and technology developments, the Firm’s Information Security Program and recommended changes to that program, cybersecurity policies and practices, and ongoing initiatives to improve information security, as well as any significant cybersecurity incidents and the Firm's efforts to address those incidents. The Audit Committee and the Risk Committee assist the Board in this oversight.

JPMorgan Chase & Co./2025 Form 10-K

149

Management’s discussion and analysis

COMPLIANCE RISK MANAGEMENT

Compliance risk, a subcategory of operational risk, is the risk of failing to comply with laws, rules, regulations or codes of conduct and standards of self-regulatory organizations.

Overview

Each of the LOBs and Corporate hold primary ownership of and accountability for managing their compliance risk. The Firm’s Operational Risk and Compliance Organization (“Operational Risk and Compliance”), which is independent of the LOBs and Corporate, provides independent review, monitoring and oversight of business operations with a focus on compliance with the laws, rules, and regulations applicable to the delivery of the Firm’s products and services to clients and customers.

These compliance risks relate to a wide variety of laws, rules and regulations across the LOBs and Corporate, and jurisdictions, and include risks related to financial products and services, relationships and interactions with clients and customers, and employee activities. For example, compliance risks include those associated with anti-money laundering compliance, trading activities, market conduct, and complying with the laws, rules, and regulations related to the offering of products and services across jurisdictional borders. Compliance risk is also inherent in the Firm’s fiduciary activities, including the failure to exercise the applicable standard of care to act in the best interest of fiduciary clients and customers or to treat fiduciary clients and customers fairly.

Other functions provide oversight of significant regulatory obligations that are specific to their respective areas of responsibility.

Operational Risk and Compliance implements policies and standards designed to govern, identify, measure, monitor and test, manage, and report on compliance risk.

Governance and oversight

Operational Risk and Compliance is led by the Firm’s Global CCO and FRE for Operational Risk and Qualitative Risk Appetite.

The Firm maintains oversight and coordination of its compliance risk through the CCOR Management Framework. The Firm’s Global CCO and FRE for Operational Risk and Qualitative Risk Appetite also provides regular updates to the Board Risk Committee and the Audit Committee on significant compliance risk issues, as appropriate.

Code of Conduct

The Firm has a Code of Conduct (the “Code”) that sets forth the Firm’s expectation that employees will conduct themselves with integrity, at all times. The Code provides the principles that help govern employee conduct with clients, customers, suppliers, vendors, shareholders, regulators, other employees, as well as with the markets and communities in which the Firm operates. The Code requires employees to promptly report any potential or actual violation of the Code, Firm policies, or laws, rules or regulations applicable to the Firm’s business. It also requires employees to report any illegal or unethical conduct, or conduct that violates the underlying principles of the Code, by any of the Firm’s employees, consultants, clients, customers, suppliers, contract or temporary workers, or business partners or agents. Conduct training is assigned to newly-hired employees after joining the Firm, and to current employees periodically thereafter. Employees are required to affirm their compliance with the Code annually.

Employees can report any potential or actual violations of the Code through the Firm’s Conduct Hotline (the “Hotline”) by phone, mobile device or the internet. The Hotline is anonymous, where permitted by law, is available at all times globally, has translation services, and is administered by an outside service provider. The Code prohibits retaliation against anyone who raises an issue or concern in good faith or assists with an inquiry or investigation. Periodically, the Audit Committee receives reports on the Code of Conduct program.

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CONDUCT RISK MANAGEMENT

Conduct risk, a subcategory of operational risk, is the risk that any action or misconduct by an employee could lead to unfair client or customer outcomes, impact the integrity of the markets in which the Firm operates, harm employees or the Firm, or compromise the Firm’s reputation.

Overview

Each LOB and Corporate is accountable for identifying and managing its conduct risk to provide appropriate engagement, ownership and sustainability of a culture consistent with the Firm’s Business Principles. The Business Principles serve as a guide for how employees are expected to conduct themselves. With the Business Principles serving as a guide, the Firm’s Code sets out the Firm’s expectations for each employee and provides information and resources to help employees conduct business ethically and in compliance with applicable laws, rules and regulations everywhere the Firm operates. Refer to Compliance Risk Management on page 150 for further discussion of the Code.

Governance and oversight

The Firm’s oversight and coordination of conduct risk is managed in the same manner as Compliance risk. Refer to Compliance Risk Management on page 150 for further information.

Conduct risk management encompasses various aspects of people management practices throughout the employee life cycle, including recruiting, onboarding, training and development, performance management, promotion and compensation processes. Each LOB, Treasury and CIO, and each designated corporate function completes an assessment of conduct risk periodically, reviews metrics and issues which may involve conduct risk, and provides conduct education as appropriate.

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151

Management’s discussion and analysis

LEGAL RISK MANAGEMENT

Legal risk, a subcategory of operational risk, is the risk of loss primarily caused by the actual or alleged failure to meet legal obligations that arise from the rule of law in jurisdictions in which the Firm operates, agreements with clients and customers, and products and services offered by the Firm.

Overview

The global Legal function (“Legal”) provides legal services and advice to the Firm. Legal is responsible for managing the Firm’s exposure to legal risk by:

•managing actual and potential litigation and enforcement matters, including internal reviews and investigations related to such matters

•advising on products and services, including contract negotiation and documentation

•advising on offering and marketing documents and new business initiatives

•managing dispute resolution

•interpreting existing laws, rules and regulations, and advising on changes to them

•advising on advocacy in connection with contemplated and proposed laws, rules and regulations, and

•providing legal advice to the LOBs, Corporate and the Board.

Legal selects, engages and manages outside counsel for the Firm on all matters in which outside counsel is engaged. In addition, Legal advises the Firm’s Conflicts Office which reviews the Firm’s wholesale transactions that may have the potential to create conflicts of interest for the Firm.

Governance and oversight

The Firm’s General Counsel reports to the CEO and is a member of the Operating Committee, the Firmwide Risk Committee and the Firmwide Control Committee. The Firm’s General Counsel and other members of Legal report on significant legal matters to the Firm’s Board of Directors and to the Audit Committee. 

Legal serves on and advises various committees and advises the Firm’s LOBs and Corporate on potential reputation risk issues.

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ESTIMATIONS AND MODEL RISK MANAGEMENT

Estimations and Model risk, a subcategory of operational risk, is the potential for adverse consequences from decisions based on incorrect or misused estimation outputs.

The Firm uses models and other analytical and judgment-based estimations, including those based upon machine learning or artificial intelligence techniques, across various businesses and functions. The estimation methods are of varying levels of sophistication and are used for many purposes, such as the valuation of positions and measurement of risk, assessing regulatory capital requirements, conducting stress testing, evaluating the allowance for credit losses and making business decisions. A dedicated independent function, Model Risk Governance and Review (“MRGR”), defines and governs the Firm’s policies relating to the management of model risk and risks associated with certain analytical and judgment-based estimations, such as those used in risk management, budget forecasting and capital planning and analysis.

Model risks are owned by the users of the models within the LOBs and Corporate based on the specific purposes of such models. Users and developers of models are responsible for developing, implementing and testing their models, as well as referring models to MRGR for review and approval. Once models have been approved, model users and developers are responsible for maintaining a robust operating environment, and must monitor and evaluate the performance of the models on an ongoing basis. Model users and developers may seek to enhance models in response to changes in the relevant portfolios and in product and market developments, as well as to capture improvements in available modeling techniques and systems capabilities.

Models are tiered based on an internal standard according to their complexity, the exposure associated with the model and the Firm’s reliance on the model. This tiering is subject to the approval of MRGR. In its review of a model, MRGR considers whether the model is suitable for the specific purposes for which it will be used. When reviewing a model, MRGR analyzes and challenges the model methodology and the reasonableness of model assumptions, and may perform or require additional testing, including back-testing of model outcomes. Model reviews are approved by the appropriate level of management within MRGR based on the relevant model tier.

Under the Firm’s Estimations and Model Risk Management Policy, MRGR reviews and approves new models, as well as material changes to existing models, prior to their use. In certain circumstances, exceptions may be granted to the Firm’s policy to allow a model to be used prior to review or approval. MRGR may also require the user to take appropriate actions to mitigate the model risk if it is to be used in the interim. These actions will depend on the model and may include, for example, limitation of trading activity.

While models are inherently imprecise, the degree of imprecision or uncertainty can be heightened by the market or economic environment. This is particularly true when the current and forecasted environments are significantly different from the historical environments upon which the models were developed. This increased uncertainty may necessitate a greater degree of judgment and analytics to inform any adjustments that the Firm may make to model outputs than would otherwise be the case. In addition, the Firm may experience increased uncertainty in its estimates if assets acquired differ from those used to develop the models.

Refer to Critical Accounting Estimates Used by the Firm on pages 154–157 and Note 2 for a summary of model-based valuations and other valuation techniques.

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153

Management’s discussion and analysis

CRITICAL ACCOUNTING ESTIMATES USED BY THE FIRM

JPMorganChase’s accounting policies and use of estimates are integral to understanding its reported results. The Firm’s most complex accounting estimates require management’s judgment to ascertain the appropriate carrying value of assets and liabilities. The Firm has established policies and control procedures intended to ensure that estimation methods, including any judgments made as part of such methods, are well-controlled, independently reviewed and applied consistently from period to period. The methods used and judgments made reflect, among other factors, the nature of the assets or liabilities and the related business and risk management strategies, which may vary across the Firm’s businesses and portfolios. In addition, the policies and procedures are intended to ensure that the process for changing methodologies occurs in an appropriate manner. The Firm believes its estimates for determining the carrying value of its assets and liabilities are appropriate. The following is a brief description of the Firm’s critical accounting estimates involving significant judgments.

Allowance for credit losses

The Firm’s allowance for credit losses represents management’s estimate of expected credit losses over the remaining expected life of the Firm’s financial assets measured at amortized cost and certain off-balance sheet lending-related commitments. The allowance for credit losses generally comprises:

•The allowance for loan losses, which covers the Firm’s retained loan portfolios (scored and risk-rated),

•The allowance for lending-related commitments, and

•The allowance for credit losses on investment securities.

The allowance for credit losses involves significant judgment on a number of matters including development and weighting of macroeconomic forecasts, incorporation of historical loss experience, assessment of risk characteristics, assignment of risk ratings, valuation of collateral, and the determination of remaining expected life. Refer to Notes 10 and 13 for further information on these judgments as well as the Firm’s policies and methodologies used to determine the Firm’s allowance for credit losses.

One of the most significant judgments involved in estimating the Firm’s allowance for credit losses relates to the macroeconomic forecasts used to estimate credit losses over the eight-quarter forecast period within the Firm’s methodology. The eight-quarter forecast incorporates hundreds of macroeconomic variables (“MEVs”) that are relevant for exposures across the Firm, with modeled credit

losses being driven primarily by a subset of less than twenty variables. The specific variables that have the greatest effect on the modeled losses vary by portfolio and geography.

•Key MEVs for the consumer portfolio include regional U.S. unemployment rates and U.S. HPI.

•Key MEVs for the wholesale portfolio include U.S. unemployment, U.S. real GDP growth rate, U.S. equity prices, U.S. interest rates, U.S. corporate credit spreads, oil prices, U.S. commercial real estate prices and U.S. HPI.

Changes in the Firm’s assumptions and forecasts of economic conditions could significantly affect its estimate of expected credit losses in the portfolio at the balance sheet date or lead to significant changes in the estimate from one reporting period to the next.

It is difficult to estimate how potential changes in any one factor or input might affect the overall allowance for credit losses because management considers a wide variety of factors and inputs in estimating the allowance for credit losses. Changes in the factors and inputs considered may not occur at the same rate and may not be consistent across all geographies or product types, and changes in factors and inputs may be directionally inconsistent, such that improvement in one factor or input may offset deterioration in others.

To consider the impact of a hypothetical alternate macroeconomic forecast, the Firm compared the modeled credit losses determined using its central and relative adverse macroeconomic scenarios, which are two of the five scenarios considered in estimating the allowances for loan losses and lending-related commitments. The central and relative adverse scenarios each included a full suite of MEVs, but differed in the levels, paths and peaks/troughs of those variables over the eight-quarter forecast period.

For example, compared to the Firm’s central scenario shown on page 129 and in Note 13, the Firm’s relative adverse scenario assumes an elevated U.S. unemployment rate, averaging approximately 2.0% higher over the eight-quarter forecast, with a peak difference of approximately 2.8% in the fourth quarter of 2026.

This analysis is not intended to estimate expected future changes in the allowance for credit losses, for a number of reasons, including:

•The allowance as of December 31, 2025, reflects credit losses beyond those estimated under the central scenario due to the weight placed on the adverse scenarios.

•The impacts of changes in many MEVs are both interrelated and nonlinear, so the results of this

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analysis cannot be simply extrapolated for more severe changes in macroeconomic variables.

•Expectations of future changes in portfolio composition and borrower behavior can significantly affect the allowance for credit losses.

To demonstrate the sensitivity of credit loss estimates to macroeconomic forecasts as of December 31, 2025, the Firm compared the modeled estimates under its relative adverse scenario to its central scenario. Without considering offsetting or correlated effects in other qualitative components of the Firm’s allowance for credit losses, the comparison between these two scenarios for the exposures below reflect the following differences:

•An increase of approximately $1.2 billion for residential real estate loans and lending-related commitments

•An increase of approximately $4.4 billion for credit card loans

•An increase of approximately $5.1 billion for wholesale loans and lending-related commitments

This analysis relates only to the modeled credit loss estimates and is not intended to estimate changes in the overall allowance for credit losses as it does not reflect any potential changes in other adjustments to the quantitative calculation, which would also be influenced by the judgment management applies to the modeled lifetime loss estimates to reflect the uncertainty and imprecision of these modeled lifetime loss estimates based on then-current circumstances and conditions.

In the fourth quarter of 2025, the Firm recorded an allowance related to the Apple Card transaction, estimated based on certain forward-looking assumptions of the portfolio’s risk characteristics and expected credit losses at the time of closing. The forecasted Apple credit card portfolio is excluded from the modeled estimates sensitivity analysis above while the Firm integrates the Apple Card transaction into its allowance model.

Recognizing that forecasts of macroeconomic conditions are inherently uncertain, the Firm believes that its process to consider the available information and associated risks and uncertainties is appropriately governed and that its estimates of expected credit losses were reasonable and appropriate for the year ended December 31, 2025.

Fair value

JPMorganChase carries a portion of its assets and liabilities at fair value. The majority of such assets and liabilities are measured at fair value on a recurring basis, including trading assets and liabilities, AFS securities, structured note products and certain securities financing agreements. Certain assets and liabilities are measured at fair value on a nonrecurring basis, including certain mortgage, home equity and other loans, where the carrying value is based on the fair value of the underlying collateral.

Assets measured at fair value

The following table includes the Firm’s assets measured at fair value and the portion of such assets that are classified within level 3 of the fair value hierarchy. Refer to Note 2 for further information.

December 31, 2025

(in millions, except ratios)

Total assets at fair value

Total level 3 assets

Federal funds sold and securities purchased under resale agreements

$

327,018 

$

— 

Securities borrowed

98,111 

— 

Trading assets:

    Trading-debt and equity instruments

745,096 

2,794 

    Derivative receivables(a)

57,777 

8,926 

Total trading assets

802,873 

11,720 

AFS securities

507,198 

111 

Loans

70,684 

3,062 

MSRs

9,167 

9,167 

Other

14,801 

1,047 

Total assets measured at fair value on a recurring basis

1,829,852 

25,107 

Total assets measured at fair value on a nonrecurring basis

2,018 

1,392 

Total assets measured at fair value

$

1,831,870 

$

26,499 

Total Firm assets

$

4,424,900 

Level 3 assets at fair value as a percentage of total Firm assets(a)

1

%

Level 3 assets at fair value as a percentage of total Firm assets at fair value(a)

1

%

(a)For purposes of the table above, the derivative receivables total reflects the impact of netting adjustments; however, the $8.9 billion of derivative receivables classified as level 3 does not reflect the netting adjustment as such netting is not relevant to a presentation based on the transparency of inputs to the valuation of an asset. The level 3 balances would be reduced if netting were applied, including the netting benefit associated with cash collateral.

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Management’s discussion and analysis

Valuation

Details of the Firm’s processes for determining fair value are set out in Note 2. Estimating fair value requires the application of judgment. The type and level of judgment required is largely dependent on the amount of observable market information available to the Firm. For instruments valued using internally developed valuation models and other valuation techniques that use significant unobservable inputs and are therefore classified within level 3 of the fair value hierarchy, judgments used to estimate fair value are more significant than those required when estimating the fair value of instruments classified within levels 1 and 2.

In arriving at an estimate of fair value for an instrument within level 3, management must first determine the appropriate valuation model or other valuation technique to use. Second, the lack of observability of certain significant inputs requires management to assess relevant empirical data in deriving valuation inputs including, for example, transaction details, yield curves, interest rates, prepayment speeds, default rates, volatilities, correlations, prices (such as commodity, equity or debt prices), valuations of comparable instruments, foreign exchange rates and credit curves. Refer to Note 2 for a further discussion of the valuation of level 3 instruments, including unobservable inputs used.

For instruments classified in levels 2 and 3, management judgment must be applied to assess the appropriate level of valuation adjustments to reflect counterparty credit quality, the Firm’s creditworthiness, market funding rates, liquidity considerations, unobservable parameters, and for portfolios that meet specified criteria, the size of the net open risk position. The judgments made are typically affected by the type of product and its specific contractual terms, and the level of liquidity for the product or within the market as a whole. In periods of heightened market volatility and uncertainty judgments are further affected by the wider variation of reasonable valuation estimates, particularly for positions that are less liquid. Refer to Note 2 for a further discussion of valuation adjustments applied by the Firm.

Imprecision in estimating unobservable market inputs or other factors can affect the amount of gain or loss recorded for a particular position. Furthermore, while the Firm believes its valuation methods are appropriate and consistent with those of other market participants, the methods and assumptions used reflect management judgment and may vary across the Firm’s businesses and portfolios.

The Firm uses various methodologies and assumptions in the determination of fair value. The use of methodologies or assumptions different than those used by the Firm could result in a different estimate of fair value at the reporting date. Refer to Note 2 for a detailed discussion of the Firm’s valuation process and

hierarchy, and its determination of fair value for individual financial instruments.

Goodwill impairment

Under U.S. GAAP, goodwill must be allocated to reporting units and tested for impairment at least annually. The Firm’s process and methodology used to conduct goodwill impairment testing is described in Note 15.

Management applies significant judgment when testing goodwill for impairment. The goodwill associated with each business combination is allocated to the related reporting units for goodwill impairment testing.

For the year ended December 31, 2025, the Firm reviewed current economic conditions, estimated market cost of equity, as well as actual business results and projections of business performance. Based on such reviews, the Firm has concluded that goodwill was not impaired as of December 31, 2025. For each of the reporting units, fair value exceeded carrying value by at least 20% and there was no indication of a significant risk of goodwill impairment based on current projections and valuations.

The projections for the Firm’s reporting units are consistent with management’s current business outlook assumptions in the short term, and the Firm’s best estimates of long-term growth and return on equity in the longer term. Where possible, the Firm uses third-party and peer data to benchmark its assumptions and estimates.

Refer to Note 15 for additional information on goodwill, including the goodwill impairment assessment as of December 31, 2025.

Credit card rewards liability

JPMorganChase offers credit cards with various rewards programs which allow cardholders to earn rewards points based on their account activity and the terms and conditions of the rewards program. Generally, there are no limits on the points that an eligible cardholder can earn, nor do the points expire, and the points can be redeemed for a variety of rewards, including cash (predominantly in the form of account credits), gift cards and travel. The Firm maintains a rewards liability which represents the estimated cost of rewards points earned and expected to be redeemed by cardholders. The liability is accrued as the cardholder earns the benefit and is reduced when the cardholder redeems points. This liability was $16.0 billion and $14.4 billion at December 31, 2025 and 2024, respectively, and is recorded in accounts payable and other liabilities on the Consolidated balance sheets. The increase in the liability was driven by continued growth in rewards points earned on higher spend and promotional offers that has outpaced redemptions throughout 2025.

The rewards liability is sensitive to redemption rate (“RR”) and cost per point (“CPP”) assumptions. The RR

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assumption is used to estimate the number of points earned by customers that will be redeemed over the life of the account. The CPP assumption is used to estimate the cost of future point redemptions. These assumptions are evaluated periodically considering historical actuals, cardholder redemption behavior and management judgment. Updates to these assumptions will impact the rewards liability. As of December 31, 2025, a combined increase of 25 basis points in RR and 1 basis point in CPP would increase the rewards liability by approximately $512 million.

Income taxes

JPMorganChase is subject to the income tax laws of the various jurisdictions in which it operates, including U.S. federal, state and local, and non-U.S. jurisdictions. These laws are often complex and may be subject to different interpretations. To determine the financial statement impact of accounting for income taxes, including the provision for income tax expense and unrecognized tax benefits, JPMorganChase must make assumptions and judgments about how to interpret and apply these complex tax laws to numerous transactions and business events, as well as make judgments regarding the timing of when certain items may affect taxable income in the U.S. and non-U.S. tax jurisdictions.

JPMorganChase’s interpretations of tax laws around the world are subject to review and examination by the various taxing authorities in the jurisdictions where the Firm operates, and disputes may occur regarding its view on a tax position. These disputes over interpretations with the various taxing authorities may be settled by audit, administrative appeals or adjudication in the court systems of the tax jurisdictions in which the Firm operates. JPMorganChase regularly reviews whether it may be assessed additional income taxes as a result of the resolution of these matters, and the Firm records additional unrecognized tax benefits, as appropriate. In addition, the Firm may revise its estimate of income taxes due to changes in income tax laws, legal interpretations, and business strategies. It is possible that revisions in the Firm’s estimate of income taxes may materially affect the Firm’s results of operations in any reporting period.

Deferred taxes arise from differences between assets and liabilities measured for financial reporting versus income tax return purposes. Deferred tax assets are recognized if, in management’s judgment, their realizability is determined to be more likely than not. Deferred taxes are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized within the provision for income taxes in the period enacted.

The Firm has also recognized deferred tax assets in connection with certain tax attributes, including net operating loss (“NOL”) carryforwards, foreign tax credit (“FTC”) carryforwards, and general business tax credit

(“GBC”) carryforwards. The Firm performs regular reviews to ascertain whether its deferred tax assets are realizable. These reviews include management’s estimates and assumptions regarding future taxable income, including foreign source income, and may incorporate various tax planning strategies, including strategies that may be available to utilize NOLs and FTCs before they expire. In connection with these reviews, if it is determined that a deferred tax asset is not realizable, a valuation allowance is established. The valuation allowance may be reversed in a subsequent reporting period if the Firm determines that, based on revised estimates of future taxable income or changes in tax planning strategies, it is more likely than not that all or part of the deferred tax asset will become realizable. As of December 31, 2025, management has determined it is more likely than not that the Firm will realize its deferred tax assets, net of the existing valuation allowance.

The Firm adjusts its unrecognized tax benefits as necessary when new information becomes available, including changes in tax law and regulations, and interactions with taxing authorities. Uncertain tax positions that meet the more-likely-than-not recognition threshold are measured to determine the amount of benefit to recognize. An uncertain tax position is measured at the largest amount of benefit that management believes is more likely than not to be realized upon settlement. It is possible that the reassessment of JPMorganChase’s unrecognized tax benefits may have a material impact on its effective income tax rate in the period in which the reassessment occurs. Although the Firm believes that its estimates are reasonable, the final tax amount could be different from the amounts reflected in the Firm’s income tax provisions and accruals. To the extent that the final outcome of these amounts is different than the amounts recorded, such differences will generally impact the Firm’s provision for income taxes in the period in which such a determination is made.

The Firm’s provision for income taxes is composed of current and deferred taxes. The current and deferred tax provisions are calculated based on estimates and assumptions that could differ from the actual results reflected in income tax returns filed during the subsequent year. Adjustments based on filed returns are generally recorded in the period when the tax returns are filed and the global tax implications are known, which could impact the Firm’s effective tax rate.

Refer to Note 25 for additional information on income taxes.

Litigation reserves

Refer to Note 30 for a description of the significant estimates and judgments associated with establishing litigation reserves.

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Management’s discussion and analysis

ACCOUNTING AND REPORTING DEVELOPMENTS

Financial Accounting Standards Board (“FASB”) Standards Adopted since January 1, 2025

Standard

Summary of guidance

Effects on financial statements

Income Taxes: Improvements to Income Tax Disclosures

Issued December 2023

•Requires disclosure of income taxes paid disaggregated by 1) federal, state, and foreign taxes and 2) individual jurisdiction on the basis of a quantitative threshold of equal to or greater than 5 percent of total income taxes paid (net of refunds received).

•Requires disclosure of the effective tax rate reconciliation by specific categories, at a minimum, with accompanying qualitative disclosures, and separate disclosure of reconciling items based on quantitative thresholds.

•Requires categories within the effective tax rate reconciliation to be further disaggregated if quantitative thresholds are met.

•Adopted retrospectively for the Firm’s annual Consolidated Financial Statements for the year ended December 31, 2025.

•The adoption of this guidance resulted in expanded income tax disclosures, including more detailed information about the Firm’s effective tax rate and income tax expense reconciliation by specific categories, as well as disclosure of income taxes paid, disaggregated by jurisdiction. Refer to Note 25 for further information.

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FASB Standards Issued but not yet Adopted as of December 31, 2025

Standard

Summary of guidance

Effects on financial statements

Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures: Disaggregation of Income Statement Expenses

Issued November 2024

•Requires additional disaggregation of specific types of expenses within the Notes to the Consolidated Financial Statements on an annual and interim basis.

•Required effective date: Annual financial statements for the year ending December 31, 2027.(a)

•The guidance may be applied on a prospective or retrospective basis.

•The Firm is evaluating the potential impact on the Consolidated Financial Statements disclosures, as well as the Firm’s planned date of adoption.

Derivatives and Hedging and Revenue from Contracts with Customers: Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract

Issued September 2025

•No longer requires derivative accounting treatment for certain contracts where the underlying variable is solely based on the specific operations or activities of one of the contracting parties. The new guidance also clarifies the applicability of derivative accounting treatment to contracts with both in scope and out of scope terms.

•Clarifies the accounting for share-based payments from a customer in exchange for goods or services.

•Required effective date: January 1, 2027.(a)

•The guidance may be applied on a prospective or modified retrospective basis.

•The Firm is evaluating the potential impact on the Consolidated Financial Statements, as well as the Firm's planned date of adoption.

Intangibles - Goodwill and Other - Internal-Use Software: Targeted Improvements to the Accounting for Internal-Use Software

Issued September 2025

•Amends the cost capitalization guidance by removing all references to software development project stages to better align with current software development methods.

•Requires software cost capitalization to begin when 1) management has authorized and committed to funding the software project, and 2) it is probable that the software will be completed and used to perform its intended function.

•Required effective date: January 1, 2028.(a)

•The guidance may be applied on a prospective, modified, or retrospective transition basis.

•The Firm is evaluating the potential impact on the Consolidated Financial Statements, as well as the Firm’s planned date of adoption.

Financial Instruments - Credit Losses: Purchased Loans

Issued November 2025

•Establishes an additional allowance framework for purchased, seasoned held-for-investment loans, excluding credit cards.

•Requires that management’s initial estimate of expected credit losses be recognized as an increase to the allowance for credit losses with a corresponding increase to the loan’s amortized cost.

•Required effective date: January 1, 2027.(a)

•The guidance is required to be applied on a prospective basis.

•The Firm is evaluating the potential impact on the Consolidated Financial Statements, as well as the Firm’s planned date of adoption.

Derivatives and Hedging: Hedge Accounting Improvements

Issued November 2025

•Amends the hedge accounting guidance to allow different risks to be pooled in the same portfolio for cash flow hedging, if the hedging instrument is highly effective against each hedged risk in the portfolio.

•Provides greater flexibility and expands eligibility for hedge accounting, including hedges of nonfinancial transactions, variable rate borrowings, net investment hedges, and hedges involving the use of written options.

•Required effective date: January 1, 2027.(a)

•The guidance is required to be applied on a prospective basis.

•The Firm is evaluating the potential impact on the Consolidated Financial Statements, as well as the Firm’s planned date of adoption.

(a)Early adoption is permitted.

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Management’s discussion and analysis

FORWARD-LOOKING STATEMENTS

From time to time, the Firm has made and will make forward-looking statements. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as “anticipate,” “target,” “expect,” “estimate,” “intend,” “plan,” “goal,” “believe,” or other words of similar meaning. Forward-looking statements provide JPMorganChase’s current expectations or forecasts of future events, circumstances, results or aspirations. JPMorganChase’s disclosures in this 2025 Form 10-K contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Firm also may make forward-looking statements in its other documents filed or furnished with the SEC. In addition, the Firm’s senior management may make forward-looking statements orally to investors, analysts, representatives of the media and others.

All forward-looking statements are, by their nature, subject to risks and uncertainties, many of which are beyond the Firm’s control. JPMorganChase’s actual future results may differ materially from those set forth in its forward-looking statements. While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which could cause actual results to differ from those in the forward-looking statements:

•Local, regional and global business, economic and political conditions and geopolitical events, including geopolitical tensions and hostilities;

•Changes in laws, rules and regulatory requirements, including capital and liquidity requirements affecting the Firm’s businesses, and the ability of the Firm to address those requirements;

•Heightened regulatory and governmental oversight and scrutiny of JPMorganChase’s business practices, including dealings with retail customers;

•Changes in trade, monetary and fiscal policies and laws;

•Changes in the level of inflation;

•Changes in income tax laws, rules, and regulations;

•Securities and capital markets behavior, including changes in market liquidity and volatility;

•Changes in investor sentiment or consumer spending or savings behavior;

•Ability of the Firm to manage effectively its capital and liquidity;

•Changes in credit ratings assigned to the Firm or its subsidiaries;

•Damage to the Firm’s reputation;

•Ability of the Firm to appropriately address public criticism of its business activities;

•Ability of the Firm to deal effectively with an economic slowdown or other economic or market disruption, including in the interest rate environment;

•Technology changes instituted by the Firm, its counterparties or competitors, including AI;

•The effectiveness of the Firm’s control agenda;

•Ability of the Firm to develop or discontinue products and services, and the extent to which products or services previously sold by the Firm require the Firm to incur liabilities or absorb losses not contemplated at their initiation or origination;

•Acceptance of the Firm’s new and existing products and services by the marketplace and the ability of the Firm to innovate and to increase market share;

•Ability of the Firm to attract and retain qualified employees;

•Ability of the Firm to control expenses;

•Competitive pressures;

•Changes in the credit quality of the Firm’s clients, customers and counterparties;

•Adequacy of the Firm’s risk management framework, disclosure controls and procedures and internal control over financial reporting;

•Adverse judicial or regulatory proceedings;

•Ability of the Firm to determine accurate values of certain assets and liabilities;

•Occurrence of natural or man-made disasters or calamities, including health emergencies, an outbreak or escalation of hostilities or other geopolitical instabilities, the effects of climate change or extraordinary events beyond the Firm’s control, and the Firm’s ability to deal effectively with disruptions caused by the foregoing;

•Ability of the Firm to maintain the security of its financial, accounting, technology, data processing and other operational systems and facilities;

•Ability of the Firm to withstand disruptions that may be caused by any failure of its operational systems or those of third parties;

•Ability of the Firm to effectively defend itself against cyber attacks and other attempts by unauthorized parties to access information of the Firm or its customers and clients or to disrupt the Firm’s systems; and

•The other risks and uncertainties detailed in Part I, Item 1A: Risk Factors in JPMorganChase’s 2025 Form 10-K.

Any forward-looking statements made by or on behalf of the Firm speak only as of the date they are made, and JPMorganChase does not undertake to update any forward-looking statements. The reader should, however, consult any further disclosures of a forward-looking nature the Firm may make in any subsequent Annual Reports on Form 10-Ks, Quarterly Reports on Form 10-Qs, or Current Reports on Form 8-K.

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JPMorgan Chase & Co./2025 Form 10-K