JP Morgan Chase 2013 Annual Report Download - page 330

Notes to consolidated financial statements
336 JPMorgan Chase & Co./2013 Annual Report
Segment results
The following tables provide a summary of the Firm’s segment results for 2013, 2012 and 2011 on a managed basis. Total net
revenue (noninterest revenue and net interest income) for each of the segments is presented on a fully taxable-equivalent
(“FTE”) basis. Accordingly, revenue from investments that receive tax credits and tax-exempt securities is presented on a basis
comparable to taxable investments and securities; 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/(benefit).
The increase in equity levels for the lines of businesses since December 31, 2012, is largely driven by the evolving regulatory
requirements and higher capital targets the firm has established under Basel III Advanced approach.
Segment results and reconciliation(a)
As of or the year ended
December 31,
(in millions, except ratios)
Consumer & Community Banking(b) Corporate & Investment Bank Commercial Banking
2013 2012 2011 2013 2012 2011 2013 2012 2011
Noninterest revenue $ 17,552 $ 20,813 $ 15,314 $ 23,810 $ 23,104 $ 22,523 $ 2,298 $ 2,283 $ 2,195
Net interest income 28,474 29,071 30,305 10,415 11,222 11,461 4,675 4,542 4,223
Total net revenue 46,026 49,884 45,619 34,225 34,326 33,984 6,973 6,825 6,418
Provision for credit losses 335 3,774 7,620 (232) (479) (285) 85 41 208
Noninterest expense 27,842 28,827 27,637 21,744 21,850 21,979 2,610 2,389 2,278
Income/(loss) before income tax expense/(benefit) 17,849 17,283 10,362 12,713 12,955 12,290 4,278 4,395 3,932
Income tax expense/(benefit) 7,100 6,732 4,257 4,167 4,549 4,297 1,703 1,749 1,565
Net income/(loss) $ 10,749 $ 10,551 $ 6,105 $ 8,546 $ 8,406 $ 7,993 $ 2,575 $ 2,646 $ 2,367
Average common equity $ 46,000 $ 43,000 $ 41,000 $ 56,500 $ 47,500 $ 47,000 $ 13,500 $ 9,500 $ 8,000
Total assets 452,929 467,282 486,697 843,577 876,107 845,095 190,782 181,502 158,040
Return on average common equity 23% 25% 15% 15% 18% 17% 19% 28% 30%
Overhead ratio 60 58 61 64 64 65 37 35 35
(a) Managed basis starts with the reported U.S. GAAP results and includes certain reclassifications as discussed below that do not have any impact on net income as reported by
the lines of business or by the Firm as a whole.
(b) The 2012 and 2011 data for certain income statement line items (predominantly net interest income, compensation and noncompensation expense) and balance sheet items
were revised to reflect the transfer of certain technology and operations, as well as real estate-related functions and staff, from Corporate/Private Equity to CCB, effective
January 1, 2013.
(c) Segment managed results reflect revenue on a FTE basis with the corresponding income tax impact recorded within income tax expense/(benefit). These adjustments are
eliminated in reconciling items to arrive at the Firm’s reported U.S. GAAP results.