JPMorgan Chase & Co. (JPMorganChase) operates as a financial services company with operations in the United States of America (U.S.) and internationally.
The company 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 company serves millions of customers, predominantly in the U.S., and many of the world’s most prominent corporate, instituti...
JPMorgan Chase & Co. (JPMorganChase) operates as a financial services company with operations in the United States of America (U.S.) and internationally.
The company 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 company 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 operates nationally, as well as through overseas branches and subsidiaries, representative offices and subsidiary foreign banks. The company’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.
Segments
Effective in the second quarter of 2024, JPMorganChase reorganized its reportable business segments by combining the former Corporate & Investment Bank and Commercial Banking business segments to form one reportable segment, the Commercial & Investment Bank. As a result of the reorganization, the company has three reportable business segments: Consumer & Community Banking (CCB), Commercial & Investment Bank (CIB), and Asset & Wealth Management (AWM) – with the remaining activities in Corporate.
Consumer & Community Banking
Consumer & Community Banking segment 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 travel services. Auto originates and services auto loans and leases.
Commercial & Investment Bank
The Commercial & Investment Bank segment is consisted 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.
Banking & Payments Revenue by Client Coverage Segment
Global Corporate Banking & Global Investment Banking provides banking products and services generally to large corporations, financial institutions and merchants. Global Banking is a client coverage view within the Banking & Payments business and is consisted of the Global Corporate Banking, Global Investment Banking, and Commercial Banking client coverage segments.
Commercial Banking provides banking products and services generally to middle market clients, including start-ups, small and mid-sized companies, local governments, municipalities, and nonprofits, as well as to commercial real estate clients.
Other includes amounts related to credit protection purchased against certain retained loans and lending-related commitments in Lending, the impact of equity investments in Payments and revenues not aligned with a primary client coverage segment.
Consumer Credit Portfolio
The company’s retained consumer portfolio consists primarily of loans and lending-related commitments for residential real estate, credit card, and scored auto and business banking. The consumer credit portfolio also includes loans at fair value, predominantly in residential real estate. The company’s focus is on serving primarily the prime segment of the consumer credit market.
Consumer, excluding Credit Card
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.
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.
Wholesale Credit Portfolio
In its wholesale businesses, the company 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 company’s wholesale businesses is generally retained on the balance sheet. The company 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.
Loans
In its wholesale businesses, the company provides loans to a variety of clients, ranging from large corporate and institutional clients to high-net-worth individuals.
Asset & Wealth Management
Asset & Wealth Management segment 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.
Corporate
The Corporate segment consists of Treasury and Chief Investment Office (CIO) and Other Corporate. Treasury and CIO is predominantly responsible for measuring, monitoring, reporting and managing the company’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 company 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.
The investment securities portfolio predominantly consists of the U.S. and non-U.S. government securities, the U.S. GSE and government agency and nonagency mortgage-backed securities, collateralized loan obligations, obligations of the U.S. states and municipalities and other asset-backed securities (ABS).
Deposits
As of December 31, 2024, the company’s deposits included noninterest-bearing and interest-bearing deposits.
Regulations
The company is a bank holding company (BHC) and a financial holding company (FHC) under the U.S. federal law, and is subject to comprehensive consolidated supervision, regulation and examination by the Board of Governors of the Federal Reserve System (the Federal Reserve). The Federal Reserve acts as the supervisor of the consolidated operations of BHCs.
JPMorganChase’s national bank subsidiary, JPMorgan Chase Bank, N.A., is supervised and regulated by the Office of the Comptroller of the Currency (‘OCC’) and, with respect to certain matters, by the Federal Deposit Insurance Corporation (the ‘FDIC’).
JPMorganChase’s the U.S. broker-dealers are supervised and regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). Subsidiaries of the company that engage in certain futures-related and swaps-related activities are supervised and regulated by the Commodity Futures Trading Commission (CFTC). J.P. Morgan Securities plc holds a banking license in the U.K. and is regulated by the U.K. Prudential Regulation Authority (the ‘PRA’) and the U.K. Financial Conduct Authority (‘FCA’). JPMSE is a Germany-based credit institution jointly 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. The company’s other non-U.S. subsidiaries are regulated by the banking, securities, prudential, payments and conduct regulatory authorities, as applicable, in the countries in which they operate.
In the U.K., the company operates a retail bank through J.P. Morgan Europe Limited (JPMEL) and provides retail investment management services through Nutmeg Saving and Investment Limited (‘Nutmeg’). JPMEL is regulated by the PRA, and both JPMEL and Nutmeg are regulated by the FCA with respect to their conduct of financial services in the U.K., including obligations relating to the fair treatment of customers. JPMEL is also regulated by the U.K. Payment Systems Regulator with respect to its operation and use of payment systems. In addition, the retail businesses of JPMEL and Nutmeg are subject to U.K. consumer-protection legislation.
The activities of JPMorgan Chase Bank, N.A., the company’s principal subsidiary bank, are limited to those specifically authorized under the National Bank Act and related interpretations of the OCC.
JPMorganChase and JPMorgan Chase Bank, N.A. are subject to supervision and regulation in the U.S. by the Consumer Financial Protection Bureau (CFPB) with respect to federal consumer protection laws, including laws relating to fair lending and the prohibition of unfair, deceptive or abusive acts or practices in connection with the offer, sale or provision of consumer financial products and services. The CFPB also has jurisdiction over small business lending activities with respect to fair lending and the Equal Credit Opportunity Act. The company’s consumer activities are also subject to regulation under state statutes, which are enforced by the Attorney General or empowered agency of each state.
The company conducts securities underwriting, dealing and brokerage activities in the U.S. through J.P. Morgan Securities LLC and other non-bank broker-dealer subsidiaries, all of which are subject to regulations of the SEC, FINRA and the New York Stock Exchange, among others. The company conducts similar securities activities outside the U.S. subject to local regulatory requirements. In the U.K., those activities are primarily conducted by J.P. Morgan Securities plc and in the EU, those activities are primarily conducted by JPMSE.
The company’s registered investment advisers in the U.S. are subject to the fiduciary and other obligations imposed under the Investment Advisers Act of 1940 and applicable state and federal law. The company’s bank fiduciary activities are subject to supervision by the OCC. J.P. Morgan Securities LLC is also registered with the CFTC as a futures commission merchant and is a member of the National Futures Association. The company is also subject to the regulations and economic sanctions programs administered by the U.S. Treasury’s Office of Foreign Assets Control (OFAC). The company is subject to laws and regulations relating to corrupt and illegal payments to government officials and others in the jurisdictions in which it operates, including the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act.
History
JPMorgan Chase & Co. was founded in 1799. The company was incorporated in 1968.