JPM: JP Morgan Chase: JPMorgan Chase Reports Second-Quarter 2013 Net Income of $6.5 Billion, or $1.60 Per Share, on Revenue1 of

  JPM: JP Morgan Chase: JPMorgan Chase Reports Second-Quarter 2013 Net Income
  of $6.5 Billion, or $1.60 Per Share, on Revenue1 of $26.0 Billion

UK Regulatory Announcement

                    17% Return on Tangible Common Equity^1

               Supported Consumers, Businesses and Communities

NEW YORK

JPMorganChase & Co. (NYSE: JPM):

  *Strong performance across our businesses^2 

       *Consumer & Community Banking deposits were up 10%; mortgage
         originations were $49.0billion, up 12%; Credit Card sales volume^1
         was a record $105.2 billion, up 10%; auto originations were up 17%
       *Corporate & Investment Bank reported strong performance in Banking
         and Markets & Investor Services, maintaining its #1ranking for
         Global Investment Banking fees; client deposits were $369.1billion,
         up 6%
       *Asset Management achieved its seventeenth consecutive quarter of
         positive net long-term client flows, with $25 billion for the second
         quarter; client assets were $2.2 trillion, up 10%; loan balances were
         a record $86.0 billion

  *Second-quarter common stock dividend increased to $0.38 per share from the
    previous quarter's $0.30 per share, returning to its highest level
  *Fortress balance sheet strengthened

       *Basel I Tier 1 common^1 of $147 billion, or 10.4%
       *Estimated Basel III Tier 1 common^1 ratio of 9.3%, including the
         estimated impact of final Basel III rules issued on July 2, 2013
       *High Quality Liquid Assets^3 of $454 billion; estimated Basel III
         Liquidity Coverage Ratio of 118%

  *Second-quarter results included the following significant items

       *$950 million pretax benefit ($0.15 per share after-tax increase in
         earnings) from reduced loan loss reserves in Real Estate Portfolios
       *$550 million pretax benefit ($0.09 per share after-tax increase in
         earnings) from reduced loan loss reserves in Card Services
       *$600 million pretax expense ($0.09 per share after-tax decrease in
         earnings) for additional litigation reserves in Corporate

  *JPMorgan Chase supported consumers, businesses and our communities

       *$1.0 trillion of credit^1 provided and capital raised in the first
         six months of 2013

         - $154 billion of credit^1 provided for consumers; originated more
         than 500,000 mortgages

         - $9 billion of credit^1 provided for U.S. small businesses

         - $294 billion of credit^1 provided for corporations

         - $552 billion of capital raised for clients

         - $35 billion of credit^1 provided and capital raised for nonprofit
         and government entities, including states, municipalities, hospitals
         and universities

  *Hired more than 5,600 U.S. veterans and service members since the
    beginning of 2011

^1 For notes on non-GAAP measures, including managed basis reporting, see page
   12. ^ For additional notes on financial measures, see page 13.
^2 Percentage comparisons noted in the bullet points are calculated versus
   prior-year second quarter.
   High Quality Liquid Assets (“HQLA”) is the estimated amount of assets the
^3 Firm believes will qualify for inclusion in the Basel III Liquidity
   Coverage Ratio based on its current understanding of the proposed rules.
   
   

NEW YORK, July 12, 2013 -- JPMorganChase & Co. (NYSE: JPM) today reported net
income of $6.5billion for the second quarter of 2013, compared with net
income of $5.0 billion in the second quarter of 2012. Earnings per share were
$1.60, compared with $1.21 in the second quarter of 2012. Revenue^1 for the
quarter was $26.0 billion, compared with $22.9 billion in the prior year. The
Firm's return on tangible common equity^1 for the second quarter of 2013 was
17%, compared with 15% in the prior year.

Jamie Dimon, Chairman and Chief Executive Officer, commented on the financial
results: “Our earnings reflected strong performance across our businesses. We
maintained our #1 ranking in Global Investment Banking fees. Consumer deposits
were up 10% compared with the prior year and Credit Card sales volumes were a
record $105.2 billion, up 10%. And notably, Asset Management had $25 billion
of net long-term client flows, the seventeenth consecutive quarter of positive
net long-term client flows. Net charge-offs remain near historical lows in our
Credit Card business, have dropped to less than half of what they were a year
ago for our Real Estate Portfolios and remained very low in our wholesale
portfolios. In light of these trends, we reduced the allowance for loan losses
in Consumer & Community Banking in the second quarter by a total of $1.5
billion. Loan growth across the industry continued to be soft, reflecting a
cautious stance by consumers, many small businesses and corporations. However,
we continue to see broad-based signs that the U.S. economy is improving and we
are hopeful that, as jobs are added and confidence builds, the U.S. economy
will strengthen over time.”

Dimon continued: “This quarter, we exceeded the proposed Basel III Liquidity
Coverage Ratio requirement – as of the end of the second quarter, our
estimated ratio was 118% – and we are committed to achieving a Basel III Tier
1 common ratio^1 of 9.5% by the end of this year. We estimate that our Basel
III Tier 1 common ratio^1, reflecting the final rules approved by the Federal
Reserve on July 2, 2013, was approximately 9.3% ^ at the end of the second
quarter, including the reduction of the value of our investment securities
that are available for sale because of higher long-term interest rates.”

Dimon added: “While we have put extensive focus on our control agenda, we have
continued to serve our clients and communities around the world. During the
first six months of the year we raised capital and provided credit^2 totaling
$1.0 trillion for our clients, from individuals to large multinational
corporations. Regarding our control agenda, we have taken some of our best
people, given them enormous resources and tasked them with ensuring that our
systems, practices, controls and technology meet the highest standards. We are
confident that these investments will pay off and we will be a better company
for it.”

Dimon concluded: “I am proud of this Company and what our employees do every
day to serve our clients, customers and communities in over a hundred
countries.”

In the discussion below of the business segments and of JPMorgan Chase as a
Firm, information is presented on a managed basis. For more information about
managed basis, as well as other non-GAAP financial measures used by management
to evaluate the performance of each line of business, see page 12. The
following discussion compares the second quarters of 2013 and 2012 unless
otherwise noted. Footnotes in the sections that follow are described on pages
12 and 13.


CONSUMER & COMMUNITY BANKING (CCB)

Results for                                      1Q13           2Q12
CCB
($           2Q13        1Q13        2Q12        $ O/(U) O/(U)  $ O/(U)   O/(U)
millions)                                                    %                  %
Net Revenue  $ 12,015   $ 11,615   $ 12,450   $ 400  3   %  $ (435 )  (3 )%
Provision
for Credit   (19      )  549        179        (568  ) NM    (198   )  NM 
Losses
Noninterest  6,864      6,790      6,837      74     1     27       -  
Expense
Net Income   $ 3,089    $ 2,586    $ 3,282    $ 503  19  %  $ (193 )  (6 )%

Discussion of Results:
Net income was $3.1 billion, a decrease of $193 million, or 6% compared with
the prior year, due to lower net revenue and higher noninterest expense,
partially offset by lower provision for credit losses.

Net revenue was $12.0 billion, a decrease of $435 million, or 3%, compared
with the prior year. Net interest income was $7.1 billion, down $67 million,
or 1%, driven by lower deposit margins and lower loan balances due to
portfolio runoff, largely offset by higher deposit balances. Noninterest
revenue was $4.9billion, a decrease of $368million, or 7%, driven by lower
mortgage fees and related income, partially offset by higher merchant
servicing revenue, auto lease income and net interchange income.

The provision for credit losses was a benefit of $19million, compared with a
provision for credit losses of $179million in the prior year and $549million
in the prior quarter.The current-quarter provision reflected a $1.5 billion
reduction in the allowance for loan losses and total net charge-offs of $1.5
billion. The prior-quarter provision reflected a $1.2billion reduction in the
allowance for loan losses and total net charge-offs of $1.7 billion. The
prior-year provision reflected a $2.1billion reduction in the allowance for
loan losses and total net charge-offs of $2.3 billion.

Noninterest expense was $6.9billion, an increase of $27million from the
prior year, driven by continued investments in the business, offset by lower
mortgage servicing expense and lower remediation expense, inclusive of a
current-quarter charge, related to an exited non-core product.

Key Metrics and Business Updates:
^(All comparisons refer to the prior-year quarter except as noted; banking
portal ranking is per compete.com, as of May 2013)

  *Return on equity was 27% on $46.0billion of average allocated capital.
  *Average total deposits were $453.6billion, up 10% from the prior year and
    3% from the prior quarter. Deposit growth is among the highest in the
    industry^2.
  *Number of branches was 5,657, an increase of 94 from the prior year and 25
    from the prior quarter.
  *Active mobile customers were up 32% to 14.0 million over the prior year.
  *Active online customers (including mobile) were up 6% to 32.2 million over
    the prior year.

    Consumer & Business Banking
  *Chase Private Client locations totaled 1,691, an increase of 953 from the
    prior year and 299 from the prior quarter.
  *Client investment assets were $171.9 billion, up 16% from the prior year
    and 2% from the prior quarter.
  *Branch sales of investment products were up 53% compared with the prior
    year and 3% compared with the prior quarter.

    Mortgage Banking
  *Mortgage originations were $49.0 billion, up 12% from the prior year and
    down 7% from the prior quarter, including purchase originations of $17.4
    billion, up 50% from the prior year and 44% from the prior quarter.

    Card, Merchant Services & Auto
  *Credit Card sales volume^2 was a record $105.2billion, up 10% from the
    prior year and 11% from the prior quarter. Card Services general purpose
    credit card sales volume growth has outperformed the industry for 21
    consecutive quarters^2.
  *Merchant processing volume was $185.0 billion, up 15% from the prior year
    and 5% from the prior quarter. Total transactions processed were
    8.8billion, up 24% from the prior year and 6% from the prior quarter.
  *Auto originations were $6.8 billion, up 17% from the prior year, outpacing
    the industry^2.

Consumer & Business Banking net income was $698 million, a decrease of $233
million, or 25%, compared with the prior year, due to higher noninterest
expense, a small benefit in the prior-year provision for credit losses and
lower net revenue.

Net revenue was $4.3 billion, down 1% compared with the prior year. Net
interest income was $2.6billion, down 2% compared with the prior year, driven
by lower deposit margins, predominantly offset by higher deposit balances.
Noninterest revenue was $1.7 billion, an increase of 1%, driven by higher
debit card revenue and investment sales revenue, predominantly offset by lower
deposit-related fees.

The provision for credit losses and net charge-offs were both $74 million
(1.58% net charge-off rate), compared with a benefit of $2 million and net
charge-offs of $98 million (2.20% net charge-off rate) in the prior year.

Noninterest expense was $3.0 billion, up 10% from the prior year, primarily
driven by investments in the business and certain adjustments in the prior
year.

Key Metrics and Business Updates:
^(All comparisons refer to the prior-year quarter except as noted)

  *Return on equity was 25% on $11.0billion of average allocated capital.
  *Average total deposits were $432.8billion, up 11% from the prior year and
    3% from the prior quarter. Deposit growth is among the highest in the
    industry^2.
  *Deposit margin was 2.31%, compared with 2.62% in the prior year and 2.36%
    in the prior quarter.
  *Accounts^2 totaled 28.9million, up 6% from the prior year and 1% from the
    prior quarter, reflecting historically low customer attrition.
  *Average Business Banking loans were $18.7billion, up 4% from the prior
    year and flat compared with the prior quarter. Originations were $1.3
    billion, down 26% from the prior year and up 7% from the prior quarter.
  *Chase.com remains the #1 most visited banking portal in the U.S.

Mortgage Banking net income was $1.1 billion, a decrease of $179 million, or
14%, compared with the prior year, driven by lower net revenue, partially
offset by lower noninterest expense and lower provision for credit losses.

Net revenue was $3.1 billion, a decrease of $551 million compared with the
prior year. Net interest income was $1.1 billion, a decrease of $83 million,
or 7%, driven by lower loan balances due to portfolio runoff. Noninterest
revenue was $1.9 billion, a decrease of $468million, driven by lower mortgage
fees and related income.

The provision for credit losses was a benefit of $657 million^2, compared with
a benefit of $553million in the prior year. The current quarter reflected a
$950 million reduction in the allowance for loan losses due to lower estimated
losses reflecting continued home price improvement and favorable delinquency
trends across all products, compared with a reduction of $1.25 billion in the
prior year.

Noninterest expense was $1.8 billion, a decrease of $150 million from the
prior year, due to lower servicing expense.

Mortgage Production pretax income was $582million, a decrease of $349 million
from the prior year, reflecting lower margins and higher expense, partially
offset by higher volumes and lower repurchase losses. Mortgage
production-related revenue, excluding repurchase losses, was $1.3 billion, a
decrease of $275million, or 18%, from the prior year, reflecting lower
revenue margins. Production expense^2 was $720 million, an increase of
$100million from the prior year, driven by higher headcount-related expense
as the business built origination capacity. Repurchase losses for the current
quarter reflected a benefit of $16 million, compared with losses of $10
million in the prior year and $81 million in the prior quarter. The current
quarter reflected a $185 million reduction in the repurchase liability and
lower realized repurchase losses compared with the prior year and prior
quarter.

Mortgage Servicing pretax income was $133 million, an increase of $68million
from the prior year. Mortgage servicing revenue, including changes to the
mortgage servicing rights (“MSR”) asset fair value, was $770 million, a
decrease of $15million, or 2%, from the prior year. MSR risk management
income was $78 million, compared with $233 million in the prior year.
Servicing expense was $715million, a decrease of $238 million from the prior
year, reflecting lower servicing headcount and lower costs associated with the
Independent Foreclosure Review.

Key Metrics and Business Updates:
^(All comparisons refer to the prior-year quarter except as noted)

  *Mortgage application volumes were $65.0 billion, down 3% from the prior
    year and up 7% from the prior quarter.
  *Period-end total third-party mortgage loans serviced were $832.0 billion,
    down 3% from the prior year and 2% from the prior quarter.

Real Estate Portfolios pretax income was $1.2 billion, down $16million from
the prior year. Net revenue was $908 million, a decrease of $132million, or
13%, from the prior year. The decrease was largely driven by a decline in net
interest income, resulting from lower loan balances due to portfolio runoff.

The provision for credit losses was a benefit of $662 million, compared with a
benefit of $554million in the prior year. The current-quarter provision
reflected a $950 million reduction in the allowance for loan losses due to
lower estimated losses reflecting continued home price improvement and
favorable delinquency trends, compared with a reduction of $1.25 billion in
the prior year. Net charge-offs were $288million. Home equity net charge-offs
were $236million (1.49% net charge-off rate^1), compared with $466 million
(2.53% net charge-off rate^1) in the prior year. Subprime mortgage net
charge-offs were $33million (1.69% net charge-off rate^1), compared with
$112million (4.94% net charge-off rate^1). Prime mortgage, including option
ARMs, net charge-offs were $16million (0.15% net charge-off rate^1), compared
with $114 million (1.08% net charge-off rate^1).

Noninterest expense was $404million, a decrease of $8million, or 2%,
compared with the prior year.

Key Metrics and Business Updates:
^(All comparisons refer to the prior-year quarter except as noted. Average
loans include PCI loans)

  *Mortgage Banking return on equity, including Mortgage Production, Mortgage
    Servicing and Real Estate Portfolios, was 23% on $19.5billion of average
    allocated capital.
  *Average home equity loans were $83.8billion, down $12.3 billion.
  *Average mortgage loans were $88.1 billion, down $4.8billion.
  *Allowance for loan losses was $9.0 billion, compared with $12.2 billion.
  *Allowance for loan losses to ending loans retained, excluding PCI loans^1,
    was 2.85%, compared with 5.20%.

Card, Merchant Services & Auto net income was $1.2 billion, an increase of
$219 million, or 21%, compared with the prior year, driven by lower provision
for credit losses, higher net revenue and lower noninterest expense.

Net revenue was $4.7 billion, up $145 million, or 3%, compared with the prior
year. Net interest income was $3.3billion, up $63 million compared with the
prior year. The impact of lower revenue reversals associated with lower net
charge-offs in Credit Card was largely offset by lower average credit card
loan balances and spread compression in Auto. Noninterest revenue was
$1.3billion, up $82 million compared with the prior year, primarily driven by
higher merchant servicing revenue, auto lease income and net interchange
income.

The provision for credit losses was $564 million, compared with $734million
in the prior year and $686million in the prior quarter. The current-quarter
provision reflected lower net charge-offs and a $550million reduction in the
allowance for loan losses due to lower estimated losses reflecting improved
delinquency trends. The prior-year provision included a $751 million reduction
in the allowance for loan losses. The Credit Card net charge-off rate^1 was
3.31%, down from 4.32% in the prior year and 3.55% in the prior quarter; the
30+ day delinquency rate^1 was 1.69%, down from 2.13% in the prior year and
1.94% in the prior quarter. The Auto net charge-off rate was 0.18%, up from
0.17% in the prior year and down from 0.32% in the prior quarter.

Noninterest expense was $2.0 billion, a decrease of $108 million, or 5%, from
the prior year, primarily driven by lower remediation expense, inclusive of a
current-quarter charge, related to an exited non-core product.

Key Metrics and Business Updates:
^(All comparisons refer to the prior-year quarter except as noted)

  *Return on equity was 32% on $15.5billion of average allocated capital.
  *Period-end Credit Card loan balances were $124.3 billion, flat compared
    with the prior year and up 2% from the prior quarter. Credit Card average
    loans were $122.9billion, down 2% from prior year and 1% from the prior
    quarter.
  *#1 credit card issuer in the U.S. based on outstandings^2; #1 global Visa
    issuer ^ based on consumer and business credit card sales volume^2.
  *Card Services net revenue as a percentage of average loans was 12.59%,
    compared with 11.91% in the prior year and 12.83% in the prior quarter.
  *Average auto loans were $50.7 billion, up 5% from the prior year and 1%
    from the prior quarter.

                                                                
CORPORATE & INVESTMENT BANK (CIB)

Results for                                        1Q13              2Q12
CIB
($           2Q13       1Q13        2Q12       $ O/(U)   O/(U)  $ O/(U)  O/(U)
millions)                                                     %                 %
Net Revenue  $ 9,876   $ 10,140   $ 8,986   $ (264 )  (3 )%  $ 890   10  %
Provision
for Credit   (6      )  11         29        (17    )  NM    (35   )  NM  
Losses
Noninterest  5,742     6,111      5,293     (369   )  (6 )   449     8   
Expense
Net Income   $ 2,838   $ 2,610    $ 2,376   $ 228    9  %   $ 462   19  %

Discussion of Results:
Net income was $2.8billion, up 19% compared with the prior year. These
results primarily reflected higher net revenue, partially offset by higher
noninterest expense. Net revenue was $9.9billion, compared with $9.0billion
in the prior year. Net revenue included a $355 million gain from debit
valuation adjustments (“DVA”) on structured notes and derivative liabilities
resulting from the widening of the Firm's credit spreads; the prior year
included a gain from DVA of $755 million. Excluding the impact of DVA, net
income was $2.6 billion^1, up 37% from the prior year, and net revenue was
$9.5 billion^1, up 16% from the prior year.

Banking revenue was $3.1 billion, compared with $2.7 billion in the prior
year. Investment banking fees were $1.7 billion (up 38%), driven by higher
debt underwriting fees of $956 million (up 50%) and equity underwriting fees
of $457 million (up 83%), partially offset by lower advisory fees of
$304million (down 15%). Treasury Services revenue was $1.1 billion, down 2%
compared with the prior year, driven by lower trade finance spreads. Lending
revenue was $373million, primarily reflecting net interest income on retained
loans and fees on lending-related commitments, compared with $370 million in
the prior year.

Markets & Investor Services revenue was $6.7 billion, up 7% from the prior
year. Fixed Income and Equity Markets combined revenue was $5.4billion, up
18% from the prior year, reflecting solid client revenue, as well as improved
performance in credit-related and equities products. Securities Services
revenue was $1.1 billion, up 1% from the prior year. Credit Adjustments &
Other revenue was $274million, compared with $683 million in the prior year;
both periods were predominantly driven by the impact of DVA.

The provision for credit losses was a benefit of $6 million, compared with a
provision for credit losses of $29 million in the prior year. The ratio of the
allowance for loan losses to period-end loans retained was 1.21%, compared
with 1.31% in the prior year. Excluding the impact of the consolidation of
Firm-administered multi-seller conduits and trade finance loans, the ratio of
the allowance for loan losses to period-end loans retained^1 was 2.35%,
compared with 2.75% in the prior year.

Noninterest expense was $5.7 billion, up 8% from the prior year, primarily
driven by higher compensation expense on increased revenue. The compensation
ratio ^ for the current quarter was 31%, excluding the impact of DVA^1.

Key Metrics and Business Updates:
^(All comparisons refer to the prior-year quarter except as noted, and all
rankings are according to Dealogic)

  *Ranked #1 in Global Investment Banking Fees for the six months ended June
    30, 2013.
  *Ranked #1 in Global Debt, Equity and Equity-related; #1 in Global
    Long-Term Debt; #1 in Global Syndicated Loans; #2 in Global Announced M&A
    and #2 in Global Equity and Equity-related, based on volume, for the six
    months ended June 30, 2013.
  *Average client deposits and other third-party liabilities were $369.1
    billion, up 6% from the prior year and 3% from the prior quarter.
  *Assets under custody were $18.9 trillion, up 7% from the prior year and
    down 2% from the prior quarter.
  *International revenue was $4.8 billion, up 11% from the prior year,
    representing 48% of total revenue (48% of total revenue excluding DVA^1).
  *Return on equity was 20% on $56.5billion of average allocated capital
    (19% ^ excluding DVA^1).
  *Period-end total loans were $110.8 billion, down 5% from the prior year
    and 6% from the prior quarter. Nonaccrual loans were $375 million, down
    54% from the prior year and 16% from the prior quarter.
  *Period-end trade finance loans were $36.4 billion, up 3% from the prior
    year and down 7% from the prior quarter.

                                                             
COMMERCIAL BANKING (CB)

Results for                                       1Q13            2Q12
CB
($           2Q13       1Q13       2Q12       $       O/(U)  $ O/(U)  O/(U)
millions)                                         O/(U)    %                 %
Net Revenue  $ 1,728   $ 1,673   $ 1,691   $ 55   3   %  $ 37    2  %
Provision
for Credit   44        39        (17     )  5      13    61      NM 
Losses
Noninterest  652       644       591       8      1     61      10 
Expense
Net Income   $ 621     $ 596     $ 673     $ 25   4   %  $ (52 )  (8 )%

Discussion of Results:
Net income was $621million, a decrease of $52 million, or 8%, compared with
the prior year, reflecting a higher provision for credit losses and an
increase in noninterest expense, partially offset by higher net revenue.

Net revenue was $1.7billion, an increase of $37 million, or 2%, compared with
the prior year. Net interest income was $1.2billion, an increase of
$48million, or 4%, driven by higher loan and liability balances, partially
offset by lower purchase discounts recognized on loan repayments and spread
compression on liability products. Noninterest revenue was $551million, a
decrease of $11 million, or 2% compared with the prior year, driven by lower
community development investment-related revenue, partially offset by
increased deposit-related fees, credit card revenue, and investment banking
fees.

Revenue from Middle Market Banking was $777 million, an increase of $37
million, or 5%, from the prior year. Revenue from Corporate Client Banking was
$444million, an increase of $8 million, or 2%, compared with the prior year.
Revenue from Commercial Term Lending was $315million, an increase of $24
million, or 8%, compared with the prior year. Revenue from Real Estate Banking
was $113million, flat compared with the prior year.

The provision for credit losses was $44 million, compared with a benefit of
$17 million in the prior year. Net charge-offs were $9 million (0.03% net
charge-off rate), compared with net recoveries of $9million (0.03% net
recovery rate) in the prior year and net recoveries of $7million (0.02% net
recovery rate) in the prior quarter. The allowance for loan losses to
period-end loans retained was 2.06%, down from 2.20% in the prior year and up
from 2.05% in the prior quarter. Nonaccrual loans were $513million, down
$404million, or 44%, from the prior year, and down by $156 million, or 23%,
from the prior quarter, mainly due to repayments.

Noninterest expense was $652million, up 10% compared with the prior year,
reflecting higher headcount-related^2 expense and increased operating expense
for Commercial Card.

Key Metrics and Business Updates:
^(All comparisons refer to the prior-year quarter except as noted)

  *Return on equity was 18% on $13.5 billion of average allocated capital.
  *Overhead ratio was 38%, compared with 35% in the prior year.
  *Gross investment banking revenue (which is shared with the Corporate &
    Investment Bank) was $385 million, flat compared with the prior year and
    up 13% compared with the prior quarter.
  *Average loan balances were $131.6 billion^2, up 11% compared with the
    prior year and up 2% compared with the prior quarter.
  *Period-end loan balances were $130.9billion^2, up 9% compared with the
    prior year and flat compared with the prior quarter.
  *Average client deposits and other third-party liabilities were $195.2
    billion, flat compared with the prior year and the prior quarter.

                                                             
ASSET MANAGEMENT (AM)

Results for                                       1Q13            2Q12
AM
($           2Q13       1Q13       2Q12       $       O/(U)  $ O/(U)  O/(U)
millions)                                         O/(U)    %                 %
Net Revenue  $ 2,725   $ 2,653   $ 2,364   $ 72   3   %  $ 361   15  %
Provision
for Credit   23        21        34        2      10    (11   )  (32 )
Losses
Noninterest  1,892     1,876     1,701     16     1     191     11  
Expense
Net Income   $ 500     $ 487     $ 391     $ 13   3   %  $ 109   28  %

Discussion of Results:
Net income was $500million, an increase of $109 million, or 28%, from the
prior year, reflecting higher net revenue, largely offset by higher
noninterest expense.

Net revenue was $2.7billion, an increase of $361million, or 15%, from the
prior year. Noninterest revenue was $2.2billion, up $304 million, or 16%,
from the prior year, due to the effect of higher market levels, net client
inflows, and higher performance fees. Net interest income was $569million, up
$57million, or 11%, from the prior year, due to higher loan and deposit
balances, partially offset by narrower deposit and loan spreads.

Revenue from Private Banking was $1.5 billion, up 11% compared with the prior
year. Revenue from Retail was $654million, up 35%. Revenue from Institutional
was $588million, up 9%.

Client assets were $2.2 trillion, an increase of $189billion, or 10%,
compared with the prior year. Assets under management were $1.5 trillion, an
increase of $123 billion, or 9%, from the prior year, due to net inflows to
long-term products and the effect of higher market levels, partially offset by
net outflows from liquidity products. Custody, brokerage, administration and
deposit balances were $687billion, up $66billion, or 11%, from the prior
year, due to the effect of higher market levels and custody inflows.

The provision for credit losses was $23million, compared with $34 million in
the prior year.

Noninterest expense was $1.9 billion, an increase of $191 million, or 11%,
from the prior year, primarily due to higher performance-based compensation
and headcount-related² expense.

Key Metrics and Business Updates:
^(All comparisons refer to the prior-year quarter except as noted)

  *Pretax margin^2 was 30%, up from 27% in the prior year.
  *Return on equity was 22% on $9.0 billion of average allocated capital.
  *For the 12 months ended June 30, 2013, assets under management reflected
    net inflows of $67 billion, driven by net inflows of $84 billion to
    long-term products, partially offset by net outflows of $17 billion from
    liquidity products. For the quarter, net inflows were $3 billion driven by
    net inflows of $25 billion to long-term products, predominantly offset by
    net outflows of $22 billion from liquidity products.
  *Net long-term client flows were positive for the seventeenth consecutive
    quarter.
  *Assets under management ranked in the top two quartiles for investment
    performance were 76% over 5 years, 77% over 3 years and 73% over 1 year.
  *Customer assets in 4 and 5 Star-rated funds were 52% of all rated mutual
    fund assets.
  *Client assets were $2.2 trillion, up 10% from the prior year and down 1%
    from the prior quarter.
  *Record average loans were $83.6billion, up 25% from the prior year and 5%
    from the prior quarter.
  *Record period-end loans were $86.0billion, up 22% from the prior year and
    6% from the prior quarter.
  *Average deposits were $136.6 billion, up 7% from the prior year and down
    2% from the prior quarter.
  *Period-end deposits were $137.3 billion, up 7% from the prior year and
    down 2% from the prior quarter.

                                                                     
CORPORATE/PRIVATE EQUITY

Results for                                            1Q13               2Q12
Corporate/Private
Equity             2Q13      1Q13      2Q12        $ O/(U)   O/(U)   $ O/(U)    O/(U)
($ millions)                                                      %                    %
Net Revenue        $ (386 )  $ (233 )  $ (2,599 )  $ (153 )  (66 )%  $ 2,213   85  %
Provision for      5        (3     )  (11      )  8        NM     16        NM  
Credit Losses
Noninterest        716      2        544        714      NM     172       32  %
Expense
Net Income/(Loss)  $ (552 )  $ 250    $ (1,762 )  $ (802 )  NM     $ 1,210   69  %

Discussion of Results:
Net income was a loss of $552 million, compared with a loss of $1.8 billion in
the prior year.

Private Equity reported net income of $212 million, compared with net income
of $197 million in the prior year. Net revenue was $410 million, same as prior
year.

Treasury and CIO reported a net loss of $429 million, compared with a net loss
of $2.1 billion in the prior year. Net revenue was a loss of $648 million,
compared with a loss of $3.4 billion in the prior year. The prior-year loss
reflected $4.4 billion of principal transactions losses from the synthetic
credit portfolio that had been held by CIO, partially offset by securities
gains of $1.0 billion. Net revenue in the current quarter included net
securities gains of $123 million from sales of available-for-sale investment
securities and a modest loss related to the redemption of trust preferred
securities. Current-quarter net interest income was a loss of $558 million due
to low interest rates and limited reinvestment opportunities.

Other Corporate reported a net loss of $335 million, compared with net income
of $119 million in the prior year. Noninterest revenue included $545 million
in the prior year related to the gain on the recovery of a Bear
Stearns-related subordinated loan. The current quarter included approximately
$600 million of expense for additional litigation reserves, compared with $335
million of expense for additional litigation reserves in the prior year.

                                                                  
JPMORGAN CHASE (JPM)^(*)

Results for                                          1Q13              2Q12
JPM
($           2Q13        1Q13        2Q12        $ O/(U)  O/(U)   $ O/(U)    O/(U)
millions)                                                      %                    %
Net Revenue  $ 25,958   $ 25,848   $ 22,892   $ 110   -      $ 3,066   13  %
Provision
for Credit   47         617        214        (570  )  (92 )%  (167    )  (78 )
Losses
Noninterest  15,866     15,423     14,966     443     3      900       6   
Expense
Net Income   $ 6,496    $ 6,529    $ 4,960    $ (33 )  (1  )%  $ 1,536   31  %

    Presented on a managed basis. See notes on page 12 for further explanation
(*) of managed basis. Net revenue on a U.S. GAAP basis totaled $25,211
    million, $25,122 million, and $22,180 million for the second quarter of
    2013, first quarter of 2013, and second quarter of 2012, respectively.

Discussion of Results:
Net income was $6.5 billion, up $1.5 billion, or 31%, from the prior year. The
increase was driven by higher net revenue and lower provision for credit
losses, partially offset by higher noninterest expense.

Net revenue was $26.0 billion, up $3.1 billion, or 13%, compared with the
prior year. Noninterest revenue was $15.1 billion, up $3.5 billion, compared
with the prior year. The current-quarter revenue included a $355million gain
from DVA on certain structured notes and derivative liabilities resulting from
the widening of the Firm's credit spreads; the prior year included a gain from
DVA of $755 million. Net interest income was $10.9 billion, down $472 million,
or 4%, compared with the prior year, reflecting the impact of low interest
rates on investment securities yield and on reinvestment opportunities, lower
loan yields and portfolio run-off, partially offset by lower long-term debt
costs.

The provision for credit losses was $47 million, down $167 million from the
prior year. The total consumer provision for credit losses was a benefit of
$29 million, compared with an expense of $171million in the prior year. The
consumer provision reflected a $1.5 billion release of allowance for loan
losses due to lower estimated losses reflecting continued home price
improvement, favorable delinquency trends and lower estimated losses in
mortgage and credit card portfolios. The prior year consumer provision
reflected a $2.1billion reduction in the related allowance for loan losses
predominantly related to the mortgage and credit card portfolios. Consumer net
charge-offs were $1.5billion, compared with $2.3 billion in the prior year,
resulting in net charge-off rates of 1.66% and 2.51%, respectively. The
decrease in consumer net charge-offs was primarily due to improved delinquency
trends. The wholesale provision for credit losses was $76 million, compared
with $43 million in the prior year. Wholesale net recoveries were $67 million,
compared with net charge-offs of $9 million in the prior year, resulting in
net recovery rate of 0.09% and a net charge-off rate of 0.01%, respectively.
The Firm's allowance for loan losses to period-end loans retained^1 was 2.06%,
compared 2.74% in the prior year. The Firm's nonperforming assets totaled
$10.9 billion at June 30, 2013, down from the prior-quarter level of
$11.6billion and down compared with the prior-year level of $11.4billion.

Noninterest expense was $15.9 billion, up $900 million, or 6%, compared with
the prior year, driven by higher compensation expense on higher revenue and
higher litigation reserves, partially offset by lower mortgage servicing
expense. The current-quarter noninterest expense included $678 million of
expense for additional litigation reserves, compared with $323 million of
expense for additional litigation reserves in the prior year.

Key Metrics and Business Updates:
^(All comparisons refer to the prior-year quarter except as noted)

  *Basel I Tier 1 common ratio^1 was 10.4% at June 30, 2013, including the
    impact of the final Basel 2.5 rules that became effective on January 1,
    2013.
  *Headcount was 254,063, a decrease of 6,335, compared with the prior year.

1.   Notes on non-GAAP financial measures:

     In addition to analyzing the Firm's results on a reported basis,
     management reviews the Firm's results and the results of the lines of
     business on a “managed” basis, which is a non-GAAP financial measure. The
     Firm's definition of managed basis starts with the reported U.S. GAAP
     results and includes certain reclassifications to present total net
     revenue for the Firm (and each of the business segments) on a fully
     taxable-equivalent (“FTE”) basis. Accordingly, revenue from investments
a.   that receive tax credits and tax-exempt securities is presented in the
     managed results on a basis comparable to taxable securities and
     investments. This non-GAAP financial measure allows management to assess
     the comparability of revenue 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 the lines of
     business.

     The ratio of the allowance for loan losses to end-of-period loans
     excludes the following: loans accounted for at fair value and loans
     held-for-sale; purchased credit-impaired (“PCI”) loans; and the allowance
     for loan losses related to PCI loans. Additionally, Real Estate
     Portfolios net charge-off rates exclude the impact of PCI loans. The
b.   allowance for loan losses related to the PCI portfolio totaled $5.7
     billion at June 30, 2013, March 31, 2013, and June 30, 2012. In Corporate
     & Investment Bank, the ratio of the allowance for loan losses to
     end-of-period loans is calculated excluding the impact of trade finance
     loans and consolidated Firm-administered multi-seller conduits, as well
     as their related allowances, to provide a more meaningful assessment of
     the CIB's allowance coverage.

     Tangible common equity (“TCE”) represents common stockholders' equity
     (i.e., total stockholders' equity less preferred stock) less goodwill and
     identifiable intangible assets (other than MSRs), net of related deferred
c.   tax liabilities. Return on tangible common equity measures the Firm's
     earnings as a percentage of average TCE. In management's view, these
     measures are meaningful to the Firm, as well as to analysts and
     investors, in assessing the Firm's use of equity and in facilitating
     comparisons with peers.

     The Tier 1 common ratio under both Basel I and Basel III are both
     non-GAAP financial measures. These measures are used by management, bank
     regulators, investors and analysts to assess the Firm's capital position
     and to compare the Firm's capital to that of other financial services
     companies. The Basel I Tier 1 common ratio is Tier 1 common capital
     divided by Basel I risk-weighted assets. Tier 1 common capital is defined
     as Tier 1 capital less elements of Tier 1 capital not in the form of
d.   common equity, such as perpetual preferred stock, noncontrolling
     interests in subsidiaries, and trust preferred securities. In July 2013,
     the U.S. Federal Reserve approved the final rule for implementing Basel
     III in the United States. For further information on Basel I and Basel
     III, see Regulatory capital on pages 117-119 and 42-45 of JPMorgan Chase
     & Co.’s Annual Report on Form 10-K for the year ended December 31, 2012,
     and Quarterly Report on Form 10-Q for the quarter ended March 31, 2013,
     respectively.

     In Consumer & Community Banking, supplemental information is provided for
e.   Card Services to enable comparability with prior periods. The net
     charge-off and 30+ day delinquency rates presented include loans
     held-for-sale.

     Corporate & Investment Bank provides several measures which exclude the
     impact of debit valuation adjustments (“DVA”) on: net revenue, net
f.   income, compensation ratio, and return on equity. These measures are used
     by management to assess the underlying performance of the business and
     for comparability with peers.

2.   Additional notes on financial measures:

     Headcount-related expense includes salary and benefits (excluding
a.   performance-based incentives), and other noncompensation costs related to
     employees.

     Consumer & Community Banking deposit rankings are based on the Firm's and
b.^ peer disclosures for the first quarter of 2013. Accounts include checking
     accounts and Chase Liquid^SM cards.

     Mortgage Banking provision for credit losses is included in the
c.   functional results of Real Estate Portfolios and in production expense
     for Mortgage Production.

     Credit card sales volume is presented excluding Commercial Card. Rankings
d.   and comparison of general purpose credit card sales volume are based on
     disclosures by peers and internal estimates. Rankings are as of the first
     quarter of 2013.

     In Commercial Banking, effective January 1, 2013, whole loan financing
     agreements, previously reported as other assets, were reclassified as
e.   loans. For the three months ended June 30, 2013 and March 31, 2013, the
     impact on period-end loans was $2.1 billion and $1.7 billion,
     respectively, and the impact on average loans was $1.8 billion and $1.6
     billion, for the same periods, respectively.

     Asset Management pretax margin represents income before income tax
     expense divided by total net revenue, which is, in management's view, a
f.   comprehensive measure of pretax performance derived by measuring earnings
     after all costs are taken into consideration. It is, therefore, another
     basis that management uses to evaluate the performance of Asset
     Management against the performance of its respective peers.

     The amount of credit provided to clients represents new and renewed
     credit, including loans and commitments. The amount of credit provided to
     small businesses reflects loans and increased lines of credit provided by
g.   Consumer & Business Banking; Card, Merchant Services & Auto; and
     Commercial Banking. The amount of credit provided to nonprofit and
     government entities, including states, municipalities, hospitals and
     universities, represents that provided by the Corporate & Investment Bank
     and Commercial Banking.

JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm
with assets of $2.4trillion and operations worldwide. The Firm is a leader in
investment banking, financial services for consumers and small businesses,
commercial banking, financial transaction processing, asset management and
private equity. A component of the Dow Jones Industrial Average, JPMorgan
Chase & Co. serves millions of consumers in the United States and many of the
world's most prominent corporate, institutional and government clients under
its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is
available at www.jpmorganchase.com.

JPMorgan Chase & Co. will host a conference call today at 8:30 a.m. (Eastern
Time) to present second-quarter financial results. The general public can
access the call by dialing (866) 541-2724 or (866) 786-8836 in the U.S. and
Canada, or (706) 634-7246 for international participants. Please dial in 10
minutes prior to the start of the call. The live audio webcast and
presentation slides will be available on the Firm's website,
www.jpmorganchase.com, under Investor Relations, Investor Presentations.

A replay of the conference call will be available beginning at approximately
noon on July 12, 2013 through midnight, July 26, 2013 by telephone at (855)
859-2056 or (800) 585-8367 (U.S. and Canada) or (404) 537-3406
(international); use Conference ID# 64546522. The replay will also be
available via webcast on www.jpmorganchase.com under Investor Relations,
Investor Presentations. Additional detailed financial, statistical and
business-related information is included in a financial supplement. The
earnings release and the financial supplement are available at
www.jpmorganchase.com.

This earnings release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. These statements are
based on the current beliefs and expectations of JPMorgan Chase & Co.'s
management and are subject to significant risks and uncertainties. Actual
results may differ from those set forth in the forward-looking statements.
Factors that could cause JPMorgan Chase & Co.'s actual results to differ
materially from those described in the forward-looking statements can be found
in JPMorgan Chase & Co.'s Annual Report on Form 10-K for the year ended
December 31, 2012 and Quarterly Report on Form 10-Q for the quarter ended
March 31, 2013, which have been filed with the Securities and Exchange
Commission and are available on JPMorgan Chase & Co.'s website
(http://investor.shareholder.com/jpmorganchase) and on the Securities and
Exchange Commission's website (www.sec.gov). JPMorgan Chase & Co. does not
undertake to update the forward-looking statements to reflect the impact of
circumstances or events that may arise after the date of the forward-looking
statements.

                                        

JPMORGAN CHASE & CO.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(in millions, except per share, ratio and headcount data)
                                                                                                                                       
                      QUARTERLY TRENDS                                                                      SIX MONTHS ENDED JUNE30,
SELECTED INCOME                                                                   2Q13 Change                                                     2013
STATEMENT DATA                                                                                                                                    Change
                      2Q13                1Q13                2Q12                1Q13        2Q12          2013                2012              2012
Reported Basis
Total net revenue     $ 25,211            $ 25,122           $ 22,180              -     %     14    %     $ 50,333            $ 48,232            4     %
Total noninterest       15,866            15,423              14,966                3           6           31,289              33,311              (6  )
expense
Pre-provision           9,345             9,699               7,214                 (4  )       30          19,044              14,921              28
profit
Provision for           47                617                 214                   (92 )       (78 )       664                 940                 (29 )
credit losses
NET INCOME              6,496             6,529               4,960                 (1  )       31          13,025              9,884               32
                                                                                                                                                          
Managed Basis (a)
Total net revenue       25,958            25,848              22,892                -           13          51,806              49,649              4
Total noninterest       15,866            15,423              14,966                3           6           31,289              33,311              (6  )
expense
Pre-provision           10,092            10,425              7,926                 (3  )       27          20,517              16,338              26
profit
Provision for           47                617                 214                   (92 )       (78 )       664                 940                 (29 )
credit losses
NET INCOME              6,496             6,529               4,960                 (1  )       31          13,025              9,884               32
                                                                                                                                                          
PER COMMON SHARE
DATA
Net income: Basic       1.61              1.61                1.22                  -           32          3.22                2.41                34
Diluted                 1.60              1.59                1.21                  1           32          3.19                2.41                32
Cash dividends          0.38        (j)   0.30                0.30                  27          27          0.68          (j)   0.60                13
declared
Book value              52.54             52.02               48.40                 1           9           52.54               48.40               9
Tangible book           40.04             39.54               35.71                 1           12          40.04               35.71               12
value (b)
                                                                                                                                                          
Closing share           52.79             47.46               35.73                 11          48          52.79               35.73               48
price (c)
Market                  198,966           179,863             135,661               11          47          198,966             135,661             47
capitalization
                                                                                                                                                          
COMMON SHARES
OUTSTANDING
Average: Basic          3,782.4           3,818.2             3,808.9               (1  )       (1  )       3,800.3             3,813.9             -
Diluted                 3,814.3           3,847.0             3,820.5               (1  )       -           3,830.6             3,827.0             -
Common shares at        3,769.0           3,789.8             3,796.8               (1  )       (1  )       3,769.0             3,796.8             (1  )
period-end
                                                                                                                                                          
FINANCIAL RATIOS
(d)
Return on common        13          %     13            %     11            %                               13            %     11            %
equity ("ROE")
Return on
tangible common         17                17                  15                                            17                  15
equity ("ROTCE")
(b)
Return on assets        1.09              1.14                0.88                                          1.11                0.88
Return on
risk-weighted           1.85        (k)   1.88                1.52                                          1.86          (k)   1.55
assets (e)(f)
                                                                                                                                                          
CAPITAL RATIOS
(f)
Tier 1 capital          11.6        (k)   11.6                11.3                                          11.6          (k)   11.3
ratio
Total capital           14.1        (k)   14.1                14.0                                          14.1          (k)   14.0
ratio
Tier 1 common           10.4        (k)   10.2                9.9                                           10.4          (k)   9.9
capital ratio (g)
                                                                                                                                                          
SELECTED BALANCE
SHEET DATA
(period-end)
Total assets          $ 2,439,747         $ 2,389,349         $ 2,290,146           2           7           $ 2,439,747         $ 2,290,146         7
Loans:
Consumer,
excluding credit        288,096           290,082             300,046               (1  )       (4  )       288,096             300,046             (4  )
card loans
Credit card loans       124,288           121,865             124,705               2           -           124,288             124,705             -
Wholesale loans        313,202          316,939            302,820              (1  )       3           313,202            302,820            3
Total Loans             725,586           728,886             727,571               -           -           725,586             727,571             -
Deposits                1,202,950         1,202,507           1,115,886             -           8           1,202,950           1,115,886           8
Common
stockholders'           198,034           197,128             183,772               -           8           198,034             183,772             8
equity
Total
stockholders'           209,492           207,086             191,572               1           9           209,492             191,572             9
equity
                                                                                                                                                          
Deposits-to-loans       166         %     165           %     153           %                               166           %     153           %
ratio
                                                                                                                                                          
Headcount (h)           254,063           255,898             260,398               (1  )       (2  )       254,063             260,398             (2  )
                                                                                                                                                          
LINE OF BUSINESS
NET INCOME/(LOSS)
(i)
Consumer &            $ 3,089             $ 2,586             $ 3,282               19          (6  )       $ 5,675             $ 6,207             (9  )
Community Banking
Corporate &             2,838             2,610               2,376                 9           19          5,448               4,409               24
Investment Bank
Commercial              621               596                 673                   4           (8  )       1,217               1,264               (4  )
Banking
Asset Management        500               487                 391                   3           28          987                 777                 27
Corporate/Private      (552      )       250                (1,762      )         NM          69          (302        )       (2,773      )       89
Equity
NET INCOME            $ 6,496            $ 6,529            $ 4,960              (1  )       31          $ 13,025           $ 9,884            32


(a) For a further discussion of managed basis, see Note (a) on page 13.
    Tangible book value per share and ROTCE are non-GAAP financial measures.
    Tangible book value per share represents the Firm's tangible common equity
(b) divided by period-end common shares. ROTCE measures the Firm's annualized
    earnings as a percentage of tangible common equity. For further discussion
    of these measures, see page 42 of the Earnings Release Financial
    Supplement.
    Share price shown for JPMorgan Chase's common stock is from the New York
(c) Stock Exchange. JPMorgan Chase's common stock is also listed and traded on
    the London Stock Exchange and the Tokyo Stock Exchange.
(d) Ratios are based upon annualized amounts.
(e) Return on Basel I risk-weighted assets is the annualized earnings of the
    Firm divided by its average risk-weighted assets.
    Basel 2.5 rules became effective for the Firm on January 1, 2013. The
    implementation of these rules in the first quarter of 2013 resulted in an
    increase of approximately $150 billion in risk-weighted assets compared
(f) with the Basel I rules. The implementation of these rules also resulted in
    decreases of the Firm’s Tier 1 capital, Total capital and Tier 1 common
    capital ratios by 140 basis points, 160 basis points and 120 basis points,
    respectively, at March 31, 2013. For further discussion of Basel 2.5, see
    Regulatory capital on pages 42-45 of JPMorgan Chase's 1Q13 Form 10-Q.
    Basel I Tier 1 common capital ratio (“Tier 1 common ratio”) is Tier 1
    common capital (“Tier 1 common”) divided by risk-weighted assets. The Firm
(g) uses Tier 1 common capital along with the other capital measures to assess
    and monitor its capital position. For further discussion of the Tier 1
    common capital ratio, see page 42 of the Earnings Release Financial
    Supplement.
    Effective January 1, 2013, interns are excluded from the firmwide and
(h) business segment headcount metrics. Prior periods were revised to conform
    with this presentation.
    For the 2012 periods, net income/(loss) of Consumer & Community Banking
    ("CCB") and Corporate/Private Equity was revised to reflect the transfer
    of certain technology and operations, as well as real estate-related
(i) functions and staff, from Corporate/Private Equity to CCB, effective
    January 1, 2013. For further information on this transfer, see CCB on page
    10, Consumer & Business Banking on page 12 and Corporate/Private Equity on
    page 30 of the Earnings Release Financial Supplement.
(j) On May 21, 2013, the Board of Directors of JPMorgan Chase increased the
    Firm's quarterly stock dividend from $0.30 to $0.38 per share.
(k) Estimated.

JPMorgan Chase & Co.
Investor Contact:
Sarah Youngwood, 212-270-7325
or
Media Contact:
Joe Evangelisti, 212-270-7438

Contact:

JPMorganChase & Co.
 
Press spacebar to pause and continue. Press esc to stop.