10-KPeriod: FY2018

JPMORGAN CHASE & CO Annual Report, Year Ended Dec 31, 2018

Filed February 26, 2019For Securities:JPMJPM-PCJPM-PDJPM-PKJPM-PLJPM-PMJPM-PJAMJBVYLD

Summary

JPMorgan Chase & Co. (JPM) filed its 2018 10-K report on February 25, 2019, detailing its robust position as a leading global financial services firm with $2.6 trillion in assets. The company operates across four key segments: Consumer & Community Banking (CCB), Corporate & Investment Bank (CIB), Commercial Banking (CB), and Asset & Wealth Management (AWM), alongside a Corporates segment. The report emphasizes the company's strong regulatory framework, comprehensive risk management practices, and extensive compliance efforts across all jurisdictions. JPMorgan Chase highlights its proactive approach to evolving regulations, including those related to capital and liquidity requirements (Basel III), market risk, and enhanced prudential standards for systemically important financial institutions. The company also details its ongoing efforts in risk mitigation, operational resilience, and cybersecurity, acknowledging these as critical areas for maintaining trust and operational integrity.

Financial Highlights

34 data points
Beta

Revenue

$108.78B

Net Income

$32.47B

29.9% Net Margin

EPS (Diluted)

$9.00

Total Assets

$2.62T

Cash & Equivalents

$278.79B

Free Cash Flow

$15.61B

Financial Statements
Beta
Revenue$108.78B
Interest Expense$21.04B
Net Income$32.47B
EPS (Basic)$9.04
EPS (Diluted)$9.00
Shares Outstanding (Basic)3.40B
Shares Outstanding (Diluted)3.41B

Key Highlights

  • 1JPMorgan Chase operates with substantial assets of $2.6 trillion, positioning it as a major global financial services leader.
  • 2The company is organized into four primary reportable business segments: Consumer & Community Banking (CCB), Corporate & Investment Bank (CIB), Commercial Banking (CB), and Asset & Wealth Management (AWM).
  • 3JPMorgan Chase is subject to extensive and complex regulatory oversight globally, with ongoing adaptation to new and evolving rules, including Basel III capital and liquidity requirements.
  • 4The firm places significant emphasis on risk management, with detailed discussions on various risks including regulatory, market, credit, liquidity, and operational risks.
  • 5Cybersecurity is identified as a critical operational focus, with significant resources dedicated to protecting systems and data against evolving threats.
  • 6The company is undertaking a merger of its principal bank subsidiaries, JPMorgan Chase Bank, N.A. and Chase Bank USA, N.A., expected to be completed in Q2 2019.
  • 7The company actively engages in share repurchases, with $19.983 billion in common equity repurchased during 2018 under an authorized program.

Frequently Asked Questions

JPMorgan Chase's operations are organized into four major reportable business segments: Consumer & Community Banking (CCB), Corporate & Investment Bank (CIB), Commercial Banking (CB), and Asset & Wealth Management (AWM). It also has a Corporates segment.

JPMorgan Chase operates under extensive and comprehensive regulation globally. Key areas of focus include compliance with Basel III capital and liquidity requirements, adapting to evolving market risk regulations, adhering to enhanced prudential standards for systemically important financial institutions, and managing risks associated with anti-money laundering, economic sanctions, and anti-corruption laws. The firm also emphasizes its ongoing commitment to cybersecurity and data protection regulations.

The company employs a robust risk management framework that includes identifying, measuring, monitoring, and reporting on various risks. For market risk, this involves hedging strategies and managing positions in fixed income, currency, commodity, credit, and equity instruments. For credit risk, it involves assessing the financial condition of clients and counterparties, managing loan portfolios, and maintaining adequate allowances for credit losses, often utilizing stress testing and complex estimations.

JPMorgan Chase acknowledges that its operations are highly dependent on the effectiveness of its operational systems and those of market participants. The company devotes significant resources to maintaining and upgrading its systems to protect against cyberattacks, recognizing that absolute security is challenging and that breaches are inevitable. It focuses on preventing unauthorized access, data manipulation, system disruption, and financial theft, while also addressing the risks associated with third-party connections and evolving cyber threats.