JP Morgan Chase 2013 Annual Report Download - page 335

Glossary of Terms
JPMorgan Chase & Co./2013 Annual Report 341
Active foreclosures: Loans referred to foreclosure where
formal foreclosure proceedings are ongoing. Includes both
judicial and non-judicial states.
Active online customers: Users of all internet browsers and
mobile platforms who have logged in within the past 90
days.
Active mobile customers: Users of all mobile platforms,
which include: SMS, mobile smartphone and tablet, who
have logged in within the past 90 days.
Allowance for loan losses to total loans: Represents
period-end allowance for loan losses divided by retained
loans.
Assets under management: Represent assets actively
managed by AM on behalf of its Private Banking,
Institutional and Retail clients. Includes “Committed capital
not Called,” on which AM earns fees. Excludes assets
managed by American Century Companies, Inc., in which
the Firm sold its ownership interest on August 31, 2011.
Beneficial interests issued by consolidated VIEs:
Represents the interest of third-party holders of debt,
equity securities, or other obligations, issued by VIEs that
JPMorgan Chase consolidates.
Benefit obligation: Refers to the projected benefit
obligation for pension plans and the accumulated
postretirement benefit obligation for OPEB plans.
Chase LiquidSM cards - Refers to a prepaid, reloadable card
product.
Client advisors: Investment product specialists, including
private client advisors, financial advisors, financial advisor
associates, senior financial advisors, independent financial
advisors and financial advisor associate trainees, who
advise clients on investment options, including annuities,
mutual funds, stock trading services, etc., sold by the Firm
or by third-party vendors through retail branches, Chase
Private Client locations and other channels.
Client assets: Represent assets under management as well
as custody, brokerage, administration and deposit accounts.
Client investment managed accounts: Assets actively
managed by Chase Wealth Management on behalf of clients.
The percentage of managed accounts is calculated by
dividing managed account assets by total client investment
assets.
Credit cycle: A period of time over which credit quality
improves, deteriorates and then improves again (or vice
versa). The duration of a credit cycle can vary from a couple
of years to several years.
CUSIP number: A CUSIP (i.e., Committee on Uniform
Securities Identification Procedures) number consists of
nine characters (including letters and numbers) that
uniquely identify a company or issuer and the type of
security and is assigned by the American Bankers
Association and operated by Standard & Poor’s. This system
facilitates the clearing and settlement process of securities.
A similar system is used to identify non-U.S. securities
(CUSIP International Numbering System).
Deposit margin/deposit spread: Represents net interest
income expressed as a percentage of average deposits.
Exchange traded derivatives: Derivative contracts that are
executed on an exchange and settled via a central clearing
house.
FICO score: A measure of consumer credit risk provided by
credit bureaus, typically produced from statistical models
by Fair Isaac Corporation utilizing data collected by the
credit bureaus.
Forward points: Represents the interest rate differential
between two currencies, which is either added to or
subtracted from the current exchange rate (i.e., “spot rate”)
to determine the forward exchange rate.
Group of Seven (“G7”) nations: Countries in the G7 are
Canada, France, Germany, Italy, Japan, the United Kingdom
and the United States.
G7 government bonds: Bonds issued by the government of
one of the G7 nations.
Headcount-related expense: Includes salary and benefits
(excluding performance-based incentives), and other
noncompensation costs related to employees.
Home equity - senior lien: Represents loans and
commitments where JP Morgan Chase holds the first
security interest on the property.
Home equity - junior lien: Represents loans and
commitments where JP Morgan Chase holds a security
interest that is subordinate in rank to other liens.
Interchange income: A fee paid to a credit card issuer in
the clearing and settlement of a sales or cash advance
transaction.
Investment-grade: An indication of credit quality based on
JPMorgan Chase’s internal risk assessment system.
“Investment grade” generally represents a risk profile
similar to a rating of a “BBB-”/“Baa3” or better, as defined
by independent rating agencies.