01—Abstract
Summary
Summary of the 10-K filed February 22, 2022. Cited figures are marked; the original filing is the authoritative source.
JPMorgan Chase & Co. (JPM) reported strong financial performance for the fiscal year ended December 31, 2021, with net income of $48.3 billiona, a significant increase of 66% compared to the prior year.
This robust performance was largely driven by a substantial net benefit of $9.3 billionb from the provision for credit losses, a stark contrast to the expense recorded in 2020, reflecting an improved macroeconomic outlook. Total net revenue saw a modest 1% increase to $121.6 billion, fueled by a 6% rise in noninterest revenue, primarily from higher Investment Banking fees and asset management fees, which helped offset a 4% decrease in net interest income. Noninterest expense increased by 7% to $71.3 billion, largely due to higher compensation and continued investments in technology and business growth.
The firm maintained strong capital ratios, with CET1 capital at 13.1%, and reported significant growth in tangible book value per share. JPM's diversified business segments contributed positively, with notable performance in Consumer & Community Banking (ROE of 41%), Corporate & Investment Bank (ROE of 25%), Commercial Banking (ROE of 21%), and Asset & Wealth Management (ROE of 33%). The firm also highlighted its commitment to supporting consumers and businesses, providing $3.2 trillionc in total credit and capital raised during 2021, including significant support through the Paycheck Protection Program.
02—Key points
Key Highlights
- Net income surged by 66% to $48.3 billion, driven by a significant benefit from the provision for credit losses.
- Total net revenue increased by 1% to $121.6 billion, with noninterest revenue up 6% due to strong Investment Banking and Asset Management fees.
- All four business segments—Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking, and Asset & Wealth Management—reported positive returns on equity, demonstrating diversified strength.
- The firm demonstrated robust capital strength, maintaining a CET1 capital ratio of 13.1% and a Tier 1 leverage ratio of 6.5%.
- Total credit provided and capital raised reached $3.2 trillion, underscoring the firm's role in supporting economic activity.
- Shareholder returns were supported by a $3.80 per share common dividend and $18.4 billion in common stock repurchases.
- The firm actively managed its risk exposures, with improvements noted in credit quality metrics such as a decrease in allowance for loan losses to total retained loans ratio and a reduction in nonperforming assets.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2021filed February 22, 2022Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $121.65B$119.95B | +1.4% |
| Interest Expense | $5.55B$9.96B | −44.2% |
| Net Income | $48.30B$29.13B | +65.8% |
| EPS (Basic) | $15.39$8.89 | +73.1% |
| EPS (Diluted) | $15.36$8.88 | +73.0% |
| Shares Outstanding (Basic) | 3.02B3.08B | −2.0% |
| Shares Outstanding (Diluted) | 3.03B3.09B | −2.0% |
05—Questions
Frequently Asked Questions
What was JPMorgan Chase's net income for 2021?
JPMorgan Chase reported a net income of $48.3 billion for the fiscal year ended December 31, 2021.
How did the provision for credit losses impact the company's results?
The provision for credit losses resulted in a net benefit of $9.3 billion for 2021, primarily due to a $12.1 billion reduction in the allowance for credit losses, reflecting an improved macroeconomic outlook. This contrasts with the $17.5 billion expense recorded in the prior year.
What were the key drivers of the increase in noninterest expense?
Noninterest expense increased by 7% to $71.3 billion, primarily driven by higher compensation expenses and continued investments in technology and business growth.
How did the company's capital ratios perform in 2021?
JPMorgan Chase maintained strong capital ratios, with a CET1 capital ratio of 13.1% and a Tier 1 leverage ratio of 6.5%. The firm also reported growth in tangible book value per share.
06—Continue