JP Morgan Chase 2012 Annual Report Download - page 129

JPMorgan Chase & Co./2012 Annual Report 139
The following table presents consumer credit-related information held by CCB as well as residential real estate loans reported in
the Asset Management and the Corporate/Private Equity segments for the dates indicated. For further information about the
Firm’s nonaccrual and charge-off accounting policies, see Note 14 on pages 250–275 of this Annual Report.
Consumer credit portfolio
As of or for the year ended December 31,
(in millions, except ratios)
Credit exposure Nonaccrual loans(f)(g)(h) Net charge-offs(i)
Average annual net
charge-off rate(i)(j)
2012 2011 2012 2011 2012 2011 2012 2011
Consumer, excluding credit card
Loans, excluding PCI loans and loans held-for-sale
Home equity – senior lien $ 19,385 $ 21,765 $ 931 $ 495 $ 279 $ 284 1.33% 1.20%
Home equity – junior lien 48,000 56,035 2,277 792 2,106 2,188 4.07 3.69
Prime mortgage, including option ARMs 76,256 76,196 3,445 3,462 487 708 0.64 0.95
Subprime mortgage 8,255 9,664 1,807 1,781 486 626 5.43 5.98
Auto(a) 49,913 47,426 163 118 188 152 0.39 0.32
Business banking 18,883 17,652 481 694 411 494 2.27 2.89
Student and other 12,191 14,143 70 69 340 420 2.58 2.85
Total loans, excluding PCI loans and loans held-for-sale 232,883 242,881 9,174 7,411 4,297 4,872 1.81 1.97
Loans – PCI(b)
Home equity 20,971 22,697 NA NA NA NA NA NA
Prime mortgage 13,674 15,180 NA NA NA NA NA NA
Subprime mortgage 4,626 4,976 NA NA NA NA NA NA
Option ARMs 20,466 22,693 NA NA NA NA NA NA
Total loans – PCI 59,737 65,546 NA NA NA NA NA NA
Total loans – retained 292,620 308,427 9,174 7,411 4,297 4,872 1.43 1.54
Loans held-for-sale ————————
Total consumer, excluding credit card loans 292,620 308,427 9,174 7,411 4,297 4,872 1.43 1.54
Lending-related commitments
Home equity – senior lien(c) 15,180 16,542
Home equity – junior lien(c) 21,796 26,408
Prime mortgage 4,107 1,500
Subprime mortgage — —
Auto 7,185 6,694
Business banking 11,092 10,299
Student and other 796 864
Total lending-related commitments 60,156 62,307
Receivables from customers(d) 113 100
Total consumer exposure, excluding credit card 352,889 370,834
Credit Card
Loans retained(e) 127,993 132,175 114,944 6,925 3.95 5.44
Loans held-for-sale —102 ——————
Total credit card loans 127,993 132,277 114,944 6,925 3.95 5.44
Lending-related commitments(c) 533,018 530,616
Total credit card exposure 661,011 662,893
Total consumer credit portfolio $ 1,013,900 $ 1,033,727 $ 9,175 $ 7,412 $ 9,241 $ 11,797 2.17% 2.66%
Memo: Total consumer credit portfolio, excluding PCI $ 954,163 $ 968,181 $ 9,175 $ 7,412 $ 9,241 $ 11,797 2.55% 3.15%
(a) At December 31, 2012 and 2011, excluded operating lease-related assets of $4.7 billion and $4.4 billion, respectively.
(b) Charge-offs are not recorded on PCI loans until actual losses exceed estimated losses that were recorded as purchase accounting adjustments at the time of
acquisition. To date, no charge-offs have been recorded for these loans.
(c) Credit card and home equity lending-related commitments represent the total available lines of credit for these products. The Firm has not experienced, and
does not anticipate, that all available lines of credit would be used at the same time. For credit card and home equity commitments (if certain conditions are
met), the Firm can reduce or cancel these lines of credit by providing the borrower notice or, in some cases, without notice as permitted by law.
(d) Receivables from customers primarily represent margin loans to retail brokerage customers, which are included in accrued interest and accounts receivable
on the Consolidated Balance Sheets.
(e) Includes accrued interest and fees net of an allowance for the uncollectible portion of accrued interest and fee income.
(f) At December 31, 2012 and 2011, nonaccrual loans excluded: (1) mortgage loans insured by U.S. government agencies of $10.6 billion and $11.5 billion,
respectively, that are 90 or more days past due; and (2) student loans insured by U.S. government agencies under the FFELP of $525 million and $551
million, respectively, that are 90 or more days past due. These amounts were excluded from nonaccrual loans as reimbursement of insured amounts is
proceeding normally. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by
regulatory guidance.