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JPMORGAN CHASE & CO 8-K Report, Regulation FD Disclosure (May 15, 2024)

Reports
Regulation FD·Exhibits & Filings
Filing Date
Filed May 15, 2024
Period End
May 15, 2024
In the record · 2016–202610-K1110-Q328-K336

JPM filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 336 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Jul ’22Jul ’22
  2. Leadership change8-K · Jun ’26Jun ’26

01—Abstract

Summary

Summary of the 8-K filed May 15, 2024. Cited figures are marked; the original filing is the authoritative source.

JPMorgan Chase's May 15, 2024 Form 8-K furnishes supplemental financial information under Regulation FD to reflect the reorganization of its reportable business segments, effective in the second quarter of 2024.

The Corporate & Investment Bank and Commercial Banking segments are combined into a single Commercial & Investment Bank (CIB) segment, and the Firm's other segments are unaffected. The exhibit recasts five quarters of CIB results (1Q23 through 1Q24) and full-year 2023 and 2022 results as if the new structure had applied in those periods. The filing states that it does not restate previously issued financial statements and has no effect on previously reported consolidated results, so it is a presentation change rather than a change in the Firm's economics.

On the recast basis, CIB reported 1Q24 net income of $6.6 billiona, up 15% from $5.8 billion in 1Q23 and up 59% from $4.2 billion in 4Q23. Total net revenue was $17.6 billion, up 3% year over year, with Markets revenue of $9.2 billion (Fixed Income $5.3 billion, Equity $2.7 billion) and Banking & Payments revenue of $8.4 billion. ROE was 20%, versus 17% a year earlier.

The provision for credit losses was a $1 millionb net charge, compared with $475 million in 1Q23 and $576 million in 4Q23, reflecting a small net charge-off balance of $69 million and an allowance for credit losses of $9.1 billion. Noninterest expense was $8.7 billion, roughly flat year over year. Investors should note that credit indicators moved in the other direction.

Total nonaccrual loans rose to $3.2 billionc from $2.6 billion a year earlier, and total nonperforming assets reached $3.7 billion, up 26%, even as the quarter's net charge-offs were low. The 1Q24 provision of $1 million is therefore best viewed as a low-water mark, not a sign that credit risk has receded. For full-year 2023, CIB recast net income was $20.3 billion (up 6%) on revenue of $64.4 billion (up 8%), with the provision rising to $2.1 billion from $2.4 billion in 2022 at a lower level than in 2023 quarters when adjusted for CECL reserve builds.

02—Key points

Key Highlights

  1. Segment reorganization: Corporate & Investment Bank and Commercial Banking combine into a single Commercial & Investment Bank segment effective 2Q24; other segments are unaffected.
  2. No restatement: the filing is supplemental, recasting prior periods for presentation only, and has no effect on previously reported consolidated financial information.
  3. 1Q24 CIB net income of $6.6 billion, up 15% year over year and up 59% sequentially, with ROE of 20% versus 17% in 1Q23.
  4. 1Q24 total net revenue of $17.6 billion (up 3% YoY), led by Markets revenue of $9.2 billion, including Fixed Income of $5.3 billion and Equities of $2.7 billion.
  5. Provision for credit losses was a $1 million net charge in 1Q24, versus $475 million in 1Q23 and $576 million in 4Q23; net charge-offs were $69 million.
  6. Nonaccrual loans rose 27% YoY to $3.2 billion and total nonperforming assets rose 26% to $3.7 billion, a credit-quality signal that partly offsets the low 1Q24 provision.
  7. Full-year 2023 recast CIB net income was $20.3 billion (up 6%) on revenue of $64.4 billion (up 8%), with the Banking & Payments business up 19% to $31.9 billion.

03—Questions

Frequently Asked Questions

  1. What exactly changed in JPMorgan's segment reporting?

    Starting in the second quarter of 2024, the Corporate & Investment Bank and Commercial Banking segments are combined into one reportable segment called Commercial & Investment Bank (CIB). The Firm's other business segments are not affected. This change affects how segment results are presented going forward, not the consolidated totals.

  2. Does this 8-K change JPMorgan's previously reported financial results?

    No. The filing explicitly states it does not represent a restatement of previously issued financial statements and has no effect on previously reported consolidated financial information. It provides recast segment data so investors can compare results on the new basis.

  3. How did the combined CIB perform in the first quarter of 2024?

    CIB reported net income of $6.6 billion, up 15% from a year earlier, with total net revenue of $17.6 billion (up 3%), noninterest expense of $8.7 billion (roughly flat), and ROE of 20%. Markets revenue was $9.2 billion, and Banking & Payments revenue was $8.4 billion.

  4. Is credit quality in the combined CIB deteriorating?

    Mixed signals are present. The 1Q24 provision for credit losses was a $1 million net charge, and net charge-offs were $69 million, both much lower than a year earlier. However, nonaccrual loans rose 27% year over year to $3.2 billion, and total nonperforming assets rose 26% to $3.7 billion, so investors should watch whether the low provision persists.

  5. What does this filing mean for investors evaluating JPMorgan's performance?

    The filing gives investors a consistent, recast view of the combined CIB across five quarters and two full years, which makes trend analysis easier. It is informational and does not change reported earnings. Investors should focus on the CIB's strong 2023 and 1Q24 profitability alongside the rising nonperforming asset levels.

04—Continue

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