JPMorgan Chase Reports Second-Quarter 2014 Net Income of $6.0 Billion, or $1.46 Per Share, on Revenue1 of $25.3 Billion

  JPMorgan Chase Reports Second-Quarter 2014 Net Income of $6.0 Billion, or
  $1.46 Per Share, on Revenue1 of $25.3 Billion

                    14% Return on Tangible Common Equity^1

               Supported Consumers, Businesses and Communities

Business Wire

NEW YORK -- July 15, 2014

JPMorgan Chase & Co. (NYSE:JPM):

  *The Firm had strong underlying performance^2, notwithstanding
    industry-wide headwinds in Markets and Mortgage

       *Consumer & Community Banking: average Consumer & Business Banking
         deposits up 9%; credit card sales volume^1 up 12%; record client
         investment assets up 19%; record Business Banking loan originations
         up 46%
       *Corporate & Investment Bank: maintained #1ranking for Global
         Investment Banking fees with 8.2% wallet share YTD; assets under
         custody up 14%
       *Commercial Banking: period-end loan balances up 9%, driven by 14%
         growth in Commercial Real Estate; gross investment banking revenue
         with Commercial Banking clients up 25%
       *Asset Management: twenty-first consecutive quarter of positive net
         long-term client flows; record client assets up 15%; record loan
         balances up 17%

  *Second-quarter results^3 included as a significant item $500 million
    after-tax Firmwide legal expense ($0.13 per share after-tax decrease in
    earnings; $669 million pretax expense)

  *Approximately $3 billion returned to shareholders in 2Q14

       *Repurchased $1.5 billion of common equity^4
       *Increased common stock dividend to $0.40 per share

  *Fortress balance sheet maintained

       *Common Equity Tier 1^1,5 of $161 billion, or ratio of 9.8%
       *Strong liquidity – compliant with LCR^6 – HQLA^7 of $576 billion
       *Firm Supplementary Leverage Ratio ("SLR")^1,8 of 5.4%

  *Core loans^1 up 8% compared with the prior year

  *JPMorgan Chase supported consumers, businesses and our communities

       *$1.0 trillion of credit and capital raised for the first six months
         of 2014^1

            *$93 billion of credit for consumers
            *$10 billion of credit for U.S. small businesses
            *$296 billion of credit for corporations
            *$611 billion of capital raised for clients
            *$33 billion of credit and capital raised for nonprofit and
              government entities, including states, municipalities, hospitals
              and universities

       *Hired over 7,200 U.S. veterans and service members since 2011


^1 For notes on non-GAAP financial 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 the
prior-year second quarter.
^3 Second quarter results also included other, less significant open (positive
and negative)non-core items.
^4 The repurchase amount is presented on a trade-date basis.
^5 Represents the estimated impact of Basel III Advanced fully phased-in
capital rules the Firm will be subject to as of January 1, 2019.
^6 Liquidity Coverage Ratio ("LCR") is based on the current understanding of
the proposed rules.
^7 HQLA (“High Quality Liquid Assets”) is the estimated amount of assets that
will qualify for inclusion in the Basel III Liquidity Coverage Ratio.
^8 Reflects the U.S. Final Leverage Ratio NPR issued on April 8, 2014.


JPMorganChase & Co. (NYSE:JPM) today reported net income for the second
quarter of 2014 of $6.0 billion, compared with net income of $6.5 billion in
the second quarter of 2013. Earnings per share were $1.46, compared with $1.60
in the second quarter of 2013. Revenue^1 for the quarter was $25.3 billion,
down 2% compared with the prior year. The Firm’s return on tangible common
equity^1 for the second quarter of 2014 was 14%, compared with 17% in the
prior year. Core loans increased by 8% compared with the prior year. The Firm
repurchased $1.5 billion of common equity in the second quarter.

Jamie Dimon, Chairman and Chief Executive Officer, commented on the financial
results: “Despite continued industry-wide headwinds in Markets and Mortgage,
the firm has continued to deliver strong underlying performance. Consumer &
Community Banking deposit growth and card sales volume both outpaced the
industry^2, and we had record loan originations in Business Banking. The
Corporate & Investment Bank saw strong performance in fees with #1 position in
Global IB fees YTD, global debt and equity, global syndicated loans and global
long-term debt. Commercial Banking clients generated record investment banking
revenues in the first half of the year. Asset Management had excellent
performance across all measures.”

Dimon continued: “Toward the end of the second quarter, we saw encouraging
signs across our businesses including an uptick in wholesale utilization,
strengthening pipelines in our commercial and business banking segments, and
some improvements in markets activity. While it is too early to assume that
this momentum will continue, we have confidence in the long-term growth of the
economy.

“Consumers, middle market companies and corporations are in increasingly good
financial shape and the labor market is showing steady improvement. JPMorgan
Chase provided credit and raised capital of over $1.0 trillion for our clients
during the first half of 2014, which included $10 billion for U.S. small
businesses.”

Dimon concluded: “This quarter marked the 10-year anniversary of JPMorgan
Chase and Bank One coming together - the company overcame significant
challenges and achieved extraordinary things during this time. Each of our
businesses is among the best in the world, with increased market share, strong
earnings performance and power, and an unwavering focus on serving our
clients, communities and shareholders with distinction and dedication. We
continue our progress on adapting to the new global financial architecture and
on our control agenda. My pride in the company is greater than ever.”

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 2014 and 2013 unless
otherwise noted. Footnotes in the sections that follow are described on page
13.

CONSUMER & COMMUNITY BANKING (CCB)

                                                           
Results for                                      1Q14              2Q13
CCB
($            2Q14       1Q14       2Q13         $       O/(U)   $ O/(U)    O/(U)
millions)                                                O/(U)     %                      %
Net Revenue   $ 11,431   $ 10,460   $ 12,015    $ 971   9   %   $ (584 )   (5  )%
Provision
for Credit    852        816        (19      )   36      4      871       NM
Losses
Noninterest   6,456      6,437      6,864       19      —      (408   )   (6  )
Expense
Net Income    $ 2,443    $ 1,936    $ 3,089     $ 507   26  %   $ (646 )   (21 )%
                                                                                   

Discussion of Results:

Net income was $2.4 billion, a decrease of $646 million, or 21%, compared with
the prior year, due to higher provision for credit losses and lower net
revenue, partially offset by lower noninterest expense.

Net revenue was $11.4 billion, a decrease of $584 million, or 5%, compared
with the prior year. Net interest income was $7.0 billion, down $131 million,
or 2%, driven by spread compression and lower mortgage warehouse balances,
largely offset by higher deposit balances. Noninterest revenue was $4.5
billion, a decrease of $453 million, or 9%, driven by lower mortgage fees and
related income.

The provision for credit losses was $852 million, compared with a benefit of
$19 million in the prior year and a provision for credit losses of $816
million in the prior quarter.The current-quarter provision reflected a $357
million reduction in the allowance for loan losses and total net charge-offs
of $1.2 billion. The prior-quarter provision reflected a $450 million
reduction in the allowance for loan losses and total net charge-offs of $1.3
billion. The prior-year provision reflected a $1.5billion reduction in the
allowance for loan losses and total net charge-offs of $1.5 billion.

Noninterest expense was $6.5 billion, a decrease of $408 million, or 6%, from
the prior year, driven by lower Mortgage Banking expense, partially offset by
higher Credit Card expense.

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 2014)

  *Return on equity was 19% on $51.0 billion of average allocated capital^2.
  *Average total deposits were $486.1 billion, up 7% from the prior year and
    3% from the prior quarter.
  *Record client investment assets were $205.2 billion, up 19% from the prior
    year and 5% from the prior quarter.
  *Record Business Banking originations were $1.9 billion, up 46% from the
    prior year and 27% from the prior quarter. Average Business Banking loans
    were $19.2 billion, up 3% from the prior year and 1% from the prior
    quarter.
  *Over $600 billion, or approximately 16% of total U.S. credit and debit
    purchase volume^2.
  *Credit card sales volume^2 was $118.0 billion, up 12% from the prior year.
    General purpose credit card sales volume growth has outperformed the
    industry for 25 consecutive quarters^2.
  *Merchant processing volume was $209.0 billion, up 13% from the prior year.
    Total transactions processed were 9.3 billion, up 6% from the prior year.
  *Auto originations were $7.1 billion, up 4% from the prior year and 6% from
    the prior quarter.
  *Mortgage originations were $16.8 billion, down 66% from the prior year and
    1% from the prior quarter.
  *Active mobile customers were up 23% over the prior year to 17.2 million,
    and Chase.com remains the #1 most visited banking portal in the U.S.
  *Only 5-star rated iPhone mobile application among the largest U.S. banks.

Consumer & Business Banking net income was $894 million, an increase of $196
million, or 28%, compared with the prior year, predominantly due to higher net
revenue.

Net revenue was $4.6 billion, up 7% compared with the prior year. Net interest
income was $2.8 billion, up 6% compared with the prior year, driven by higher
deposit balances, partially offset by deposit spread compression. Noninterest
revenue was $1.8 billion, an increase of 9%, driven by higher investment
revenue, reflecting record client investment assets, higher deposit-related
fees and debit card revenue.

The provision for credit losses was $66 million, compared with $74 million in
the prior year.

Noninterest expense was $3.0 billion, approximately flat from the prior year,
driven by investments in controls, partially offset by efficiency gains in the
branches.

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

  *Return on equity was 33% on $11.0 billion of average allocated capital.
  *Ranked #1 in customer satisfaction among the largest U.S. banks for the
    second year in a row, according to J.D. Power and American Customer
    Satisfaction Index ("ACSI").
  *Winner of a record five TNS Choice Awards in 2014.
  *Ranked #1 in small business banking customer satisfaction in three of the
    four regions (West, Midwest and South) by J.D. Power.
  *Average total deposits were $471.6 billion, up 9% from the prior year and
    3% from the prior quarter. Deposit growth is among the highest in the
    industry^2.
  *Deposit margin was 2.23%, compared with 2.31% in the prior year and 2.27%
    in the prior quarter.
  *Households totaled 25.5million, up 3% from the prior year and 1% from the
    prior quarter, reflecting strong customer retention.

Mortgage Banking net income was $709 million, a decrease of $433 million from
the prior year, driven by lower net revenue and a lower benefit from the
provision for credit losses, partially offset by lower noninterest expense.

Net revenue was $2.3 billion, a decrease of $772 million compared with the
prior year. Net interest income was $1.0 billion, a decrease of $125 million,
or 11%, driven by lower warehouse balances as well as lower loan balances due
to portfolio runoff. Noninterest revenue was $1.3 billion, a decrease of $647
million, driven by lower mortgage fees and related income.

The provision for credit losses was a benefit of $188 million^2, compared with
a benefit of $657 million in the prior year. The current quarter reflected a
$300 million reduction in the purchased credit-impaired allowance for loan
losses, reflecting continued improvement in home prices and delinquencies. The
prior year included a $950 million reduction in the non credit-impaired
allowance for loan losses. Net charge-offs were $112 million, compared with
$293 million in the prior year.

Noninterest expense was $1.3 billion, a decrease of $528 million, or 29%, from
the prior year, due to lower expense in production and servicing.

Mortgage Production pretax income was $63 million, a decrease of $519 million
from the prior year, reflecting lower revenue, partially offset by lower
expense and lower repurchase losses. Mortgage production-related revenue,
excluding repurchase losses, was $339 million, a decrease of $947 million from
the prior year, primarily on lower volumes. Production expense^2 was $413
million, a decrease of $307million from the prior year, predominantly due to
lower headcount-related expense. Repurchase losses for the current quarter
reflected a benefit of $137 million, compared with a benefit of $16 million in
the prior year.

Mortgage Servicing pretax income was $479 million, compared with $133 million
in the prior year, reflecting higher MSR risk management income and lower
expenses, partially offset by lower revenue. Mortgage net servicing-related
revenue was $693 million, a decrease of $77 million from the prior year. MSR
risk management income was $338 million, driven by approximately $220 million
of positive model assumption updates also on slower prepayments, compared with
$78 million in the prior year; and a loss of $401 million in the prior
quarter, which included a negative $460 million fair value adjustment
primarily related to higher capital allocated to the business. Servicing
expense^2 was $552 million, a decrease of $163 million from the prior year,
reflecting lower headcount-related expense.

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

  *Mortgage application volumes were $30.1 billion, down 54% from the prior
    year and up 15% from the prior quarter.
  *Period-end total third-party mortgage loans serviced were $786.2 billion,
    down 6% from the prior year and 2% from the prior quarter.

Real Estate Portfolios pretax income was $626 million, down $540million from
the prior year, due to a lower benefit from the provision for credit losses
and lower net revenue, partially offset by lower expense.

Net revenue was $779 million, a decrease of $129million, or 14%, from the
prior year. This decrease was largely due to lower net interest income
resulting from lower loan balances due to portfolio runoff.

The provision for credit losses was a benefit of $189 million, compared with a
benefit of $662 million in the prior year. The current-quarter provision
reflected a $300 million reduction in the purchased credit-impaired allowance
for loan losses, reflecting continued improvement in home prices and
delinquencies. The prior-year provision included a $950 million reduction in
the non credit-impaired allowance for loan losses. Net charge-offs were
$111million, compared with $288 million in the prior year. Home equity net
charge-offs were $125 million (0.91% net charge-off rate^1), compared with
$236 million (1.49% net charge-off rate^1) in the prior year. Subprime
mortgage net recoveries were $5 million (0.30% net recovery rate^1), compared
with net charge-offs of $33 million (1.69% net charge-off rate^1). Net
recoveries of prime mortgage, including option ARMs, were $12 million (0.09%
net recovery rate^1), compared with net charge-offs of $16 million (0.15% net
charge-off rate^1).

Noninterest expense was $342 million, a decrease of $62million, or 15%,
compared with the prior year, driven by lower foreclosed asset expense.

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 was 16% on $18.0 billion of average
    allocated capital.
  *Average home equity loans were $73.6 billion, down $10.2 billion.
  *Average mortgage loans were $92.4 billion, up $4.3 billion.
  *Allowance for loan losses was $6.1 billion, compared with $9.0 billion.
  *Allowance for loan losses to ending loans retained, excluding PCI loans^1,
    was 2.04%, compared with 2.85%.

Card, Merchant Services & Auto net income was $840 million, a decrease of $409
million, or 33%, compared with the prior year, driven by higher provision for
credit losses, higher noninterest expense and lower net revenue.

Net revenue was $4.6 billion, down $117 million, or 3%, compared with the
prior year. Net interest income was $3.2 billion, down $162 million compared
with the prior year, driven by spread compression. Noninterest revenue was
$1.4 billion, up $45 million compared with the prior year, driven by higher
net interchange income, largely offset by higher amortization of new account
origination costs.

The provision for credit losses was $974 million, compared with $564 million
in the prior year and $763 million in the prior quarter. The current-quarter
provision reflected lower net charge-offs and a $53million reduction in the
allowance for loan losses, primarily in Student. The prior-year provision
included a $550 million reduction in the allowance for loan losses. The Credit
Card net charge-off rate was 2.88%, down from 3.31% in the prior year and
2.93% in the prior quarter; the 30+ day delinquency rate was 1.41%, down from
1.69% in the prior year and 1.61% in the prior quarter. The Auto net
charge-off rate was 0.22%, up from 0.18% in the prior year and down from 0.32%
in the prior quarter.

Noninterest expense was $2.1 billion, up $136 million, or 7%, from the prior
year, largely driven by investments in controls, timing of marketing
investment in Credit Card and higher legal expense.

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

  *Return on equity was 18% on $19.0 billion of average allocated capital.
  *#1 credit card issuer in the U.S. based on loans outstandings^2; #1 global
    Visa issuer based on consumer and business credit card sales volume^2.
  *Period-end Credit Card loan balances were $126.1 billion, up 1% from the
    prior year and 4% from the prior quarter. Credit Card average loans were
    $123.7 billion, up 1% from the prior year and flat compared with the prior
    quarter.
  *Card Services net revenue as a percentage of average loans was 12.15%,
    compared with 12.59% in the prior year and 12.22% in the prior quarter.
  *Average auto loans were $52.8 billion, up 4% from the prior year and flat
    compared with the prior quarter.
  *Approximately 50% share of eCommerce volume for the top 500 internet
    merchants^2.

CORPORATE & INVESTMENT BANK (CIB)

                                                               
Results for                                     1Q14                2Q13
CIB
($            2Q14        1Q14      2Q13        $ O/(U)   O/(U)   $ O/(U)    O/(U)
millions)                                                           %                      %
Net Revenue   $ 8,991    $ 8,606   $ 9,876    $ 385    4  %    $ (885 )   (9  )%
Provision
for Credit    (84     )   49        (6      )   (133  )   NM      (78    )   NM
Losses
Noninterest   6,058      5,604     5,742      454      8      316       6   
Expense
Net Income    $ 1,963    $ 1,979   $ 2,838    $ (16 )   (1 )%   $ (875 )   (31 )%
                                                                                    

Discussion of Results:

Net income was $2.0 billion, down 31% compared with $2.8 billion in the prior
year. These results primarily reflected lower revenue, as well as higher
noninterest expense. Net revenue was $9.0 billion compared with $9.9 billion
in the prior year. Excluding the impact of a DVA gain of $355 million in the
prior year, net revenue was down 6% from $9.5 billion, and net income was down
25% from $2.6 billion.

Banking revenue was $3.1 billion, down 2% from the prior year. Investment
banking fees were $1.8 billion, up 3% from the prior year. The increase was
driven by higher advisory fees of $397 million, up 31% from the prior year on
strong wallet share of completed transactions, as well as higher equity
underwriting fees of $477 million, up 4% from the prior year. These were
partially offset by lower debt underwriting fees of $899 million, down 6% from
a strong prior year. Treasury Services revenue was $1.0 billion, down 4%
compared with the prior year driven by lower trade finance revenue as well as
the impact of business simplification initiatives. Lending revenue was $297
million, down from $373 million in the prior year primarily due to lower net
interest income.

Markets & Investor Services revenue was $5.9 billion, down 12% from the prior
year. Fixed Income Markets revenue of $3.5 billion was down 15% from the prior
year on historically low levels of volatility and lower client activity across
products. Equity Markets revenue of $1.2 billion was down 10% compared with
the prior year, primarily on lower derivatives revenue. Securities Services
revenue was $1.1 billion, up 5% from the prior year primarily driven by higher
net interest income on increased deposits. Credit Adjustments & Other revenue
was a gain of $125 million driven by gains, net of hedges, related to funding
valuation adjustments/DVA, compared with a gain of $274 million in the prior
year which was primarily driven by DVA.

The provision for credit losses was a benefit of $84 million, compared with a
benefit of $6 million in the prior year. The ratio of the allowance for loan
losses to period-end loans retained was 1.11%, compared with 1.21% 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 1.80%, compared with 2.35% in
the prior year.

Noninterest expense was $6.1 billion, up 6% from the prior year, driven by
higher noncompensation expense, partially offset by lower performance-based
compensation. The current quarter noninterest expense included approximately
$300 million of legal expense and approximately $300 million of costs related
to business simplification. The ratio of compensation expense to total net
revenue was 31%.

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

  *Return on equity was 13% on $61.0 billion of average allocated capital.
  *Overhead ratio was 67%.
  *Ranked #1 in Global Investment Banking Fees with 8.2% wallet share for the
    six months ended June 30, 2014.
  *Ranked #1 in Global Debt, Equity and Equity-related with 7.4% wallet
    share; #1 in Global Long-Term Debt with 8.0% wallet share; #1 in Global
    Syndicated Loans with 9.6% wallet share; #3 in Global Equity and
    Equity-related with 6.9% wallet share; and #2 in Global Announced M&A,
    with 8.8% wallet share, based on revenue, for the six months ended June
    30, 2014.
  *Average client deposits and other third-party liabilities were $403.3
    billion, up 9% from the prior year and down 2% from prior quarter.
  *Assets under custody were a record $21.7 trillion, up 14% from the prior
    year and 2% from the prior quarter.
  *International revenue represented 53% of total revenue.
  *Period-end total loans were $108.8 billion, down 2% from the prior year
    and up 4% from the prior quarter. Nonaccrual loans were $278 million, down
    47% from the prior year and up 11% from the prior quarter.

COMMERCIAL BANKING (CB)

                                                            
Results for                                   1Q14               2Q13
CB
($            2Q14        1Q14      2Q13      $        O/(U)   $ O/(U)   O/(U)
millions)                                             O/(U)      %                     %
Net Revenue   $ 1,701    $ 1,651   $ 1,728   $ 50    3   %   $ (27 )   (2 )%
Provision
for Credit    (67     )   5         44        (72  )   NM      (111  )   NM
Losses
Noninterest   675        686       652       (11  )   (2  )   23       4  
Expense
Net Income    $ 658      $ 578     $ 621     $ 80    14  %   $ 37     6  %
                                                                                  

Discussion of Results:

Net income was $658 million, an increase of $37 million, or 6%, compared with
the prior year, reflecting a lower provision for credit losses, partially
offset by higher noninterest expense and lower net revenue.

Net revenue was $1.7 billion, a decrease of $27 million, or 2%, compared with
the prior year. Net interest income was $1.1 billion, a decrease of $53
million, or 5%, compared with the prior year, reflecting spread compression
and lower purchase discounts recognized on loan repayments, partially offset
by higher loan balances. Noninterest revenue was $577 million, an increase of
$26 million, or 5%, compared with the prior year, driven by higher investment
banking revenue.

Revenue from Middle Market Banking was $709 million, a decrease of $68
million, or 9%, compared with the prior year. Revenue from Corporate Client
Banking was $477 million, an increase of $33 million, or 7%, compared with the
prior year. Revenue from Commercial Term Lending was $307 million, a decrease
of $8 million, or 3%, compared with the prior year. Revenue from Real Estate
Banking was $129 million, an increase of $16 million, or 14%, compared with
the prior year.

The provision for credit losses was a benefit of $67 million, compared with
expense of $44 million in the prior year. Net recoveries were $26 million
(0.07% net recovery rate), compared with net charge-offs of $9 million (0.03%
net charge-off rate) in the prior year and net recoveries of $14 million
(0.04% net recovery rate) in the prior quarter. The allowance for loan losses
to period-end loans retained was 1.87%, down from 2.06% in the prior year and
down from 1.95% in the prior quarter. Nonaccrual loans were $446 million, down
$67 million, or 13%, from the prior year, and down by $39 million, or 8%, from
the prior quarter.

Noninterest expense was $675 million, up 4% compared with the prior year,
largely reflecting higher investment in controls.

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

  *Return on equity was 19% on $14.0 billion of average allocated capital.
  *Overhead ratio was 40%, compared with 38% in the prior year.
  *Gross investment banking revenue (which is shared with the Corporate &
    Investment Bank) was $481 million, up 25% compared with the prior year and
    up 8% compared with the prior quarter.
  *Average loan balances were $140.8 billion, up 7% compared with the prior
    year and 2% compared with the prior quarter.
  *Period-end loan balances were $142.3 billion, up 9% compared with the
    prior year and 2% compared with the prior quarter.
  *Average client deposits and other third-party liabilities were $200.0
    billion, up 2% compared with the prior year and down 1% compared with the
    prior quarter.

ASSET MANAGEMENT (AM)

                                                             
Results for                                   1Q14                2Q13
AM
($            2Q14      1Q14        2Q13      $ O/(U)   O/(U)   $ O/(U)   O/(U)
millions)                                                         %                     %
Net Revenue   $ 2,956   $ 2,778    $ 2,725   $ 178    6   %   $ 231    8   %
Provision
for Credit    1         (9      )   23        10       NM      (22   )   (96 )
Losses
Noninterest   2,062     2,075      1,892     (13   )   (1  )   170      9   
Expense
Net Income    $ 552     $ 441      $ 500     $ 111    25  %   $ 52     10  %
                                                                                 

Discussion of Results:

Net income was $552 million, an increase of $52 million, or 10%, from the
prior year, reflecting higher net revenue, largely offset by higher
noninterest expense.

Net revenue was $3.0 billion, an increase of $231 million, or 8%, from the
prior year. Noninterest revenue was $2.4 billion, up $224 million, or 10%,
from the prior year, due to net client inflows and the effect of higher market
levels. Net interest income was $576 million, up $7million, or 1%, from the
prior year, due to higher loan and deposit balances, largely offset by spread
compression.

Revenue from Private Banking was $1.6 billion, up 5% compared with the prior
year. Revenue from Institutional was $571 million, up 1%. Revenue from Retail
was $829 million, up 22%.

Client assets were $2.5 trillion, an increase of $316 billion, or 15%,
compared with the prior year. Assets under management were $1.7 trillion, an
increase of $237 billion, or 16%, from the prior year, due to the effect of
higher market levels and net inflows to long-term products. Custody,
brokerage, administration and deposit balances were $766billion, up
$79billion, or 11%, from the prior year, due to the effect of higher market
levels and custody inflows, partially offset by brokerage outflows.

The provision for credit losses was $1 million, compared with $23 million in
the prior year.

Noninterest expense was $2.1 billion, an increase of $170 million, or 9%, from
the prior year, primarily due to continued investment in controls and growth.

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

  *Return on equity was 25% on $9.0 billion of average allocated capital.
  *Pretax margin^2 was 30%, flat to the prior year.
  *For the 12 months ended June 30, 2014, assets under management reflected
    net inflows of $92 billion, driven by net inflows of $89 billion to
    long-term products and $3 billion to liquidity products. For the quarter,
    net inflows were $23 billion, driven by net inflows of $34 billion to
    long-term products and net outflows of $11 billion from liquidity
    products.
  *Net long-term client flows were positive for the twenty-first consecutive
    quarter.
  *Assets under management ranked in the top two quartiles for investment
    performance were 69% over 5 years, 67% over 3 years and 48% over 1 year.
  *Customer assets in 4 and 5 Star-rated funds were 51% of all rated mutual
    fund assets.
  *Client assets were $2.5 trillion, a record, up 15% from the prior year and
    3% from the prior quarter.
  *Average loans were $98.7 billion, a record, up 18% from the prior year and
    3% from the prior quarter.
  *Period-end loans were $100.9 billion, a record, up 17% from the prior year
    and 4% from the prior quarter.
  *Average deposits were $147.7 billion, up 8% from the prior year and down
    1% from the prior quarter.
  *Period-end deposits were $145.7 billion, up 6% from the prior year and
    down 1% from the prior quarter.

CORPORATE/PRIVATE EQUITY

                                                                   
Results for
                                                   1Q14                 2Q13
Corporate/Private
Equity
($ millions)        2Q14      1Q14      2Q13       $ O/(U)   O/(U)    $ O/(U)   O/(U)
                                                                       %                      %
Net Revenue         $ 270    $ 368    $ (386 )   $ (98 )   (27 )%   $ 656    NM
Provision for       (10   )   (11   )   5         1        9       (15   )   NM
Credit Losses
Noninterest         180      (166  )   716       346      NM       (536  )   (75 )%
Expense
Net Income          $ 369    $ 340    $ (552 )   $ 29     9   %    $ 921    NM
                                                                                       

Discussion of Results:

Net income was $369 million, compared with a net loss of $552 million in the
prior year.

Private Equity reported net income of $7 million, compared with net income of
$212 million in the prior year. Net revenue was $36 million, compared with
$410 million in the prior year, primarily due to lower net valuation gains on
privately held investments.

Treasury and CIO reported a net loss of $46 million, compared with a net loss
of $429 million in the prior year. Net revenue was $87 million, compared with
a loss of $648 million in the prior year. Current-quarter net interest income
was a loss of $10 million, compared with a loss of $558 million in the prior
year, reflecting the benefit of higher interest rates and reinvestment
opportunities.

Other Corporate reported net income of $408 million, compared with a net loss
of $335 million in the prior year. The current quarter included $227 million
of legal expense compared with approximately $600 million of legal expense in
the prior year. The current quarter included over $200 million of net income
benefit from tax adjustments.

JPMORGAN CHASE (JPM)^(*)

                                                                 
Results for                                    1Q14                   2Q13
JPM
($            2Q14       1Q14       2Q13       $ O/(U)     O/(U)    $ O/(U)    O/(U)
millions)                                                            %                       %
Net Revenue   $ 25,349   $ 23,863   $ 25,958   $ 1,486    6   %    $ (609 )   (2 )%
Provision
for Credit    692        850        47         (158    )   (19 )%   645       NM
Losses
Noninterest   15,431     14,636     15,866     795        5       (435   )   (3 )
Expense
Net Income    $ 5,985    $ 5,274    $ 6,496    $ 711      13  %    $ (511 )   (8 )%
                                                                                      

(*) 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 $24.5 billion,
$23.0 billion, and $25.2 billion for the second quarter of 2014, first quarter
of 2014, and second quarter of 2013, respectively.

Discussion of Results:

Net income was $6.0 billion, down $511 million from the prior year. The
decrease was driven by higher provision for credit losses and lower net
revenue, partially offset by lower noninterest expense.

Net revenue was $25.3 billion, down $609 million, or 2%, compared with the
prior year. Noninterest revenue was $14.3 billion, down $782 million, or 5%,
compared with the prior year. Net interest income was $11.0 billion, up $173
million, or 2%, compared with the prior year, reflecting the impact of higher
investment securities yields, lower long-term debt and deposit yields, and
higher loan balances, largely offset by lower loan yields and lower trading
balances.

The provision for credit losses was $692 million, compared with $47 million
from the prior year. The total consumer provision for credit losses was $848
million, compared with a benefit of $29 million in the prior year. The
current-quarter consumer provision reflected a $354 million reduction in the
allowance for loan losses, compared to a $1.5 billion reduction in the prior
year. The current-quarter consumer allowance release primarily reflects the
continued improvement in home prices and delinquencies. Consumer net
charge-offs were $1.2 billion, compared with $1.5 billion in the prior year,
resulting in net charge-off rates of 1.34% and 1.66%, respectively. The
wholesale provision for credit losses was a benefit of $156 million, compared
with an expense of $76 million in the prior year. Wholesale net recoveries
were $44 million, compared with net recoveries of $67 million in the prior
year, resulting in net recovery rate of 0.06% and 0.09%, respectively. The
Firm’s allowance for loan losses to period-end loans retained^1 was 1.69%,
compared with 2.06% in the prior year. The Firm’s nonperforming assets totaled
$9.0 billion, down from the prior quarter and prior year levels of $9.5
billion and $11.0 billion, respectively.

Noninterest expense was $15.4 billion, down $435 million, or 3%, compared with
the prior year, driven by lower expense in mortgage production and servicing
and lower performance-related compensation in the Corporate & Investment Bank,
predominantly offset by higher cost of controls. The current quarter
noninterest expense included $669 million of legal expense, compared with $678
million of legal expense in the prior year.

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

  *Basel III Common Equity Tier 1 ratio^1 was 9.8%.
  *Headcount was 245,192, a decrease of 8,871, 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 consolidated 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 consolidated net revenue for the Firm (and for each of
       the business segments) on a fully taxable-equivalent (“FTE”) basis.
a.     Accordingly, revenue from investments 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
       consolidated net income/(loss) as reported by the Firm or on net
       income/(loss) as reported 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
b.     held-for-sale; purchased credit-impaired (“PCI”) loans; and the
       allowance for loan losses related to PCI loans. Additionally, Real
       Estate Portfolios net charge-offs and net charge-off rates exclude the
       impact of PCI loans.
       
       Tangible common equity (“TCE”) and return on tangible common equity
       (“ROTCE”) 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
c.     (other than MSRs), net of related deferred tax liabilities. ROTCE
       measures the Firm’s earnings as a percentage of TCE. TCE and ROTCE are
       meaningful to the Firm, as well as analysts and investors, in assessing
       the Firm’s use of equity, as well as facilitating comparisons of the
       Firm with competitors.
       
       Common Equity Tier 1 (“CET1”) capital and the CET1 ratio under the
       Basel III Advanced Fully Phased-In rules, and the U.S. proposed
       supplementary leverage ratio (“SLR”) are each non-GAAP financial
       measures. These measures are used by management, bank regulators,
d.     investors and analysts to assess and monitor the Firm’s capital
       position. For additional information on these measures, see Regulatory
       capital on pages 161-165 of JPMorgan Chase & Co.’s Annual Report on
       Form 10-K for the year ended December 31, 2013, and on pages 63-68 of
       the Firm’s Quarterly Report on Form 10-Q for the quarter ended March
       31, 2014.
       
       The CIB provides non-GAAP financial measures, as such measures are used
e.     by management to assess the underlying performance of the business and
       for comparability with peers.

  *The ratio of the allowance for loan losses to end-of-period loans excludes
    the impact of consolidated Firm-administered multi-seller conduits and
    trade finance loans, to provide a more meaningful assessment of CIB’s
    allowance coverage ratio.
  *Prior to January 1, 2014, the CIB provided non-GAAP financial measures
    excluding the impact of FVA (effective fourth quarter 2013) and DVA on net
    revenue and net income. Beginning in the first quarter 2014, the Firm does
    not exclude FVA and DVA from its assessment of business performance;
    however, the Firm continues to present these non-GAAP measures for the
    periods prior to January 1, 2014, as they reflected how management
    assessed the underlying business performance of the CIB in those prior
    periods.

    
2.     Additional notes on financial measures:
       
       Core loans include loans considered central to the Firm’s ongoing
a.     businesses; core loans exclude runoff portfolios, discontinued
       portfolios and portfolios the Firm has an intent to exit.
       
       Headcount-related expense includes salary and benefits (excluding
b.     performance-based incentives), and other noncompensation costs related
       to employees.
       
       Consumer & Community Banking allocated equity includes $3.0 billion of
c.     capital held at the Consumer & Community Banking level related to
       legacy mortgage servicing matters.
       
d.     The credit and debit volume metric is based on Nilson data as of 2013.
       
e.     Consumer & Business Banking deposit rankings are based on the Firm's
       and peer disclosures as of the first quarter of 2014.
       
       Mortgage Banking provision for credit losses is included in the
f.     functional results of Real Estate Portfolios, in production expense in
       Mortgage Production, and in core servicing expense in Mortgage
       Servicing.
       
       Credit card sales volume is presented excluding Commercial Card.
g.     Rankings 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 2014.
       
h.     Global Visa ranking based on consumer and business credit card sales
       volume is based on Visa data as of 1Q14.
       
i.     The eCommerce volume metric for the top 500 internet merchants is based
       on the 2013 Internet Retailer Top 500 Guide.
       
       Asset Management pretax margin represents income before income tax
       expense divided by total net revenue which is, in management's view, a
j.     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 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
k.     provided by 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 $2.5 trillion and operations worldwide. The Firm is a leader in
investment banking, financial services for consumers and small businesses,
commercial banking, financial transaction processing, and asset management. 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 15, 2014, through midnight, August 2, 2014, by telephone at (855)
859-2056 or (800) 585-8367 (U.S. and Canada) or (404) 537-3406
(international); use Conference ID# 51815263. 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, 2013, and Quarterly Report on Form 10-Q for the quarter ended
March 31, 2014, 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 JUNE 30,
                                                                        2Q14 Change                                               2014
                                                                                                                                  Change
SELECTED INCOME     2Q14              1Q14            2Q13              1Q14      2Q13      2014              2013                2013
STATEMENT DATA
Reported Basis
Total net revenue   $ 24,454          $ 22,993        $ 25,211          6     %   (3  ) %   $ 47,447          $ 50,333            (6  ) %
Total noninterest   15,431            14,636          15,866            5         (3  )     30,067            31,289              (4  )
expense
Pre-provision       9,023             8,357           9,345             8         (3  )     17,380            19,044              (9  )
profit
Provision for       692               850             47                (19 )     NM        1,542             664                 132
credit losses
NET INCOME          5,985             5,274           6,496             13        (8  )     11,259            13,025              (14 )
                                                                                                                                        
Managed Basis (a)
Total net revenue   25,349            23,863          25,958            6         (2  )     49,212            51,806              (5  )
Total noninterest   15,431            14,636          15,866            5         (3  )     30,067            31,289              (4  )
expense
Pre-provision       9,918             9,227           10,092            7         (2  )     19,145            20,517              (7  )
profit
Provision for       692               850             47                (19 )     NM        1,542             664                 132
credit losses
NET INCOME          5,985             5,274           6,496             13        (8  )     11,259            13,025              (14 )
                                                                                                                                        
PER COMMON SHARE
DATA
Net income: Basic   1.47              1.29            1.61              14        (9  )     2.77              3.22                (14 )
Diluted             1.46              1.28            1.60              14        (9  )     2.74              3.19                (14 )
Cash dividends      0.40        (h)   0.38            0.38              5         5         0.78        (h)   0.68          (h)   15
declared
Book value          55.53             54.05           52.48             3         6         55.53             52.48               6
Tangible book       43.17             41.73           39.97             3         8         43.17             39.97               8
value (b)
                                                                                                                                        
Closing share       57.62             60.71           52.79             (5  )     9         57.62             52.79               9
price (c)
Market              216,725           229,770         198,966           (6  )     9         216,725           198,966             9
capitalization
                                                                                                                                        
COMMON SHARES
OUTSTANDING
Average: Basic      3,780.6           3,787.2         3,782.4           —         —         3,783.9           3,800.3             —
Diluted             3,812.5           3,823.6         3,814.3           —         —         3,818.1           3,830.6             —
Common shares at    3,761.3           3,784.7         3,769.0           (1  )     —         3,761.3           3,769.0             —
period-end
                                                                                                                                        
FINANCIAL RATIOS
(d)
Return on common    11          %     10          %   13            %                       11          %     13            %
equity ("ROE")
Return on
tangible common     14                13              17                                    14                17
equity ("ROTCE")
(b)
Return on assets    0.99              0.89            1.09                                  0.94              1.11
                                                                                                                                        
CAPITAL RATIOS
(e)
Common Equity
Tier 1 (“CET1”)     9.8         (i)   10.9            10.4                                  9.8         (i)   10.4
capital ratio
Tier 1 capital      11.1        (i)   12.1            11.6                                  11.1        (i)   11.6
ratio
Total capital       12.4        (i)   14.5            14.1                                  12.4        (i)   14.1
ratio
                                                                                                                                        
95% CONFIDENCE
LEVEL- TOTAL VaR
(f)
Average VaR         $ 55              $ 42            $ 45              31        22        $ 49              $ 59                (17 )
                                                                                                                                        
SELECTED BALANCE
SHEET DATA
(period-end)
Total assets        $ 2,520,336       $ 2,476,986     $ 2,439,494       2         3         $ 2,520,336       $ 2,439,494         3
Loans:
Consumer,
excluding credit    289,178           288,168         288,096           —         —         289,178           288,096             —
card loans
Credit card loans   126,129           121,816         124,288           4         1         126,129           124,288             1
Wholesale loans     331,676           320,987         313,202          3         6         331,676           313,202            6
Total Loans         746,983           730,971         725,586           2         3         746,983           725,586             3
Deposits            1,319,751         1,282,705       1,202,950         3         10        1,319,751         1,202,950           10
Long-term debt      269,929           274,512         266,212           (2  )     1         269,929           266,212             1
(g)
Common
stockholders'       208,851           204,572         197,781           2         6         208,851           197,781             6
equity
Total
stockholders'       227,314           219,655         209,239           3         9         227,314           209,239             9
equity
                                                                                                                                        
Loans-to-deposits   57          %     57          %   60            %                       57          %     60            %
ratio
                                                                                                                                        
Headcount           245,192           246,994         254,063           (1  )     (3  )     245,192           254,063             (3  )
                                                                                                                                        
LINE OF BUSINESS
NET INCOME
Consumer &          $ 2,443           $ 1,936         $ 3,089           26        (21 )     $ 4,379           $ 5,675             (23 )
Community Banking
Corporate &         1,963             1,979           2,838             (1  )     (31 )     3,942             5,448               (28 )
Investment Bank
Commercial          658               578             621               14        6         1,236             1,217               2
Banking
Asset Management    552               441             500               25        10        993               987                 1
Corporate/Private   369               340             (552        )     9         NM        709               (302        )       NM
Equity
NET INCOME          $ 5,985           $ 5,274         $ 6,496          13        (8  )     $ 11,259          $ 13,025           (14 )
                                                                                                                                        

     
(a)     For a further discussion of managed basis, see Note (a) on page 12.
        Tangible book value per share and ROTCE are non-GAAP financial
        measures. Tangible book value per share represents tangible common
(b)     equity 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 35 of the Earnings
        Release Financial Supplement.
        Share price shown is from the New York Stock Exchange. The common
(c)     stock is also listed and traded on the London Stock Exchange and the
        Tokyo Stock Exchange.
(d)     Ratios are based upon annualized amounts.
        Basel III Transitional rules became effective on January 1, 2014; all
        prior period data is based on Basel I rules. Beginning with the second
        quarter of 2014, the capital ratios represent the Collins Floor, as
        calculated under the Basel III Transitional rules. See footnote (a) on
(e)     page 33 of the Earnings Release Financial Supplement for additional
        information on Basel III and the Collins Floor. Under Basel I CET1
        represents Tier 1 common capital. Prior to Basel III becoming
        effective on January 1, 2014, Tier 1 common capital was a non-GAAP
        financial measure. For further discussion of Tier 1 common capital,
        see page 35 of the Earnings Release Financial Supplement.
        The increase in average VaR during the three months ended June 30,
        2014 was due to a change in the MSR hedge position in Mortgage Banking
        in advance of an anticipated update to certain MSR model assumptions.
        When such updates were implemented, VaR decreased to prior levels. The
        MSR model and assumptions are continuously evaluated and periodically
(f)     updated to reflect recent market behavior. Mortgage Banking average
        VaR was $20 million, $5 million and $15 million for the three months
        ended June 30, 2014, March 31, 2014 and June 30, 2013, respectively,
        and $13 million and $17 million for the six months ended June 30, 2014
        and June 30, 2013, respectively. For information regarding CIB VaR,
        see Corporate and Investment Bank on page 21 of the Earnings Release
        Financial Supplement.
        Included unsecured long-term debt of $205.6 billion, $206.1 billion
(g)     and $199.1 billion for the periods ended June 30, 2014, March 31, 2014
        and June 30, 2013, respectively.
        On May 20, 2014, the Board of Directors increased the quarterly common
(h)     stock dividend from $0.38 to $0.40 per share. On May 21, 2013, the
        Board increased the quarterly common stock dividend from $0.30 to
        $0.38 per share.
(i)     Estimated.
        

Contact:

JPMorgan Chase & Co.
Investor:
Sarah Youngwood, 212-270-7325
or
Media:
Kristin C. Lemkau, 212-270-7454
 
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