JP Morgan Chase 2013 Annual Report Download - page 81

JPMorgan Chase & Co./2013 Annual Report 87
related to regulatory guidance. Excluding these charge-offs,
net charge-offs during the year would have been $8.5
billion compared with $11.8 billion in the prior year. For
more information, including net charge-off amounts and
rates, see Consumer Credit Portfolio on pages 120–129 of
this Annual Report.
Noninterest expense was $28.8 billion, an increase of $1.2
billion, or 4%, compared with the prior year, driven by
higher production expense reflecting higher volumes, and
investments in sales force, partially offset by lower costs
related to mortgage-related matters and lower marketing
expense in Card.
Selected metrics
As of or for the year ended
December 31,
(in millions, except
headcount) 2013 2012 2011
Selected balance sheet
data (period-end)(a)
Total assets $ 452,929 $ 467,282 $ 486,697
Loans:
Loans retained 393,351 402,963 425,581
Loans held-for-sale and
loans at fair value(b) 7,772 18,801 12,796
Total loans 401,123 421,764 438,377
Deposits 464,412 438,517 397,868
Equity 46,000 43,000 41,000
Selected balance sheet
data (average)(a)
Total assets 456,468 467,641 491,035
Loans:
Loans retained 392,797 408,559 429,975
Loans held-for-sale and
loans at fair value(b) 15,812 18,006 17,187
Total loans 408,609 426,565 447,162
Deposits 453,304 413,948 382,702
Equity 46,000 43,000 41,000
Headcount(a) 151,333 164,391 166,053
(a) The 2012 and 2011 data for certain balance sheet line items (predominantly
total assets) as well as headcount 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.
(b) Predominantly consists of prime mortgages originated with the intent to sell that
are accounted for at fair value and classified as trading assets on the
Consolidated Balance Sheets.
Selected metrics
As of or for the year ended
December 31,
(in millions, except ratios and
where otherwise noted) 2013 2012 2011
Credit data and quality statistics
Net charge-offs(a)(b) $ 5,826 $ 9,280 $ 11,815
Nonaccrual loans:
Nonaccrual loans retained 7,455 9,114 7,354
Nonaccrual loans held-for-sale
and loans at fair value 40 39 103
Total nonaccrual loans(c)(d)(e)(f) 7,495 9,153 7,457
Nonperforming assets(c)(d)(e)(f) 8,149 9,830 8,292
Allowance for loan losses(a) 12,201 17,752 23,256
Net charge-off rate(b)(g) 1.48% 2.27% 2.75%
Net charge-off rate, excluding PCI
loans(a)(b)(g) 1.73 2.68 3.27
Allowance for loan losses to
period-end loans retained 3.10 4.41 5.46
Allowance for loan losses to
period-end loans retained,
excluding PCI loans(h) 2.36 3.51 4.87
Allowance for loan losses to
nonaccrual loans retained,
excluding credit card(c)(f)(h) 57 72 143
Nonaccrual loans to total period-
end loans, excluding
credit card(f) 2.74 3.12 2.44
Nonaccrual loans to total period-
end loans, excluding credit card
and PCI loans(c)(f) 3.40 3.91 3.10
Business metrics
Number of:
Branches 5,630 5,614 5,508
ATMs 19,211 18,699 17,235
Active online customers (in
thousands) 33,742 31,114 29,749
Active mobile customers (in
thousands) 15,629 12,359 8,203
(a) Net charge-offs and net charge-off rates for the year ended December 31, 2013
excluded $53 million of write-offs in the PCI portfolio. These write-offs decreased the
allowance for loan losses for PCI loans. For further information, see Consumer Credit
Portfolio on pages 120–129 of this Annual Report.
(b) Net charge-offs and net charge-off rates for the year ended December 31, 2012,
included $800 million of charge-offs, recorded in accordance with regulatory guidance
on certain loans discharged under Chapter 7 bankruptcy and not reaffirmed by the
borrower (“Chapter 7 loans”) to be charged off to the net realizable value of the
collateral and to be considered nonaccrual, regardless of their delinquency status.
Excluding these charges-offs, net charge-offs for the year ended December 31, 2012,
would have been $8.5 billion and excluding these charge-offs and PCI loans, the net
charge-off rate for the year ended December 31, 2012, would have been 2.45%. For
further information, see Consumer Credit Portfolio on pages 120–129 of this Annual
Report.
(c) Excludes PCI loans. The Firm is recognizing interest income on each pool of PCI loans as
they are all performing.
(d) Certain mortgages originated with the intent to sell are classified as trading assets on
the Consolidated Balance Sheets.
(e) At December 31, 2013, 2012 and 2011, nonperforming assets excluded: (1) mortgage
loans insured by U.S. government agencies of $8.4 billion, $10.6 billion, and $11.5
billion, respectively, that are 90 or more days past due; (2) real estate owned insured
by U.S. government agencies of $2.0 billion, $1.6 billion, and $954 million,
respectively; and (3) student loans insured by U.S. government agencies under the
Federal Family Education Loan Program (“FFELP”) of $428 million, $525 million, and
$551 million, respectively, that are 90 or more days past due. These amounts have
been excluded from nonaccrual loans based upon the government guarantee.
(f) Nonaccrual loans included $3.0 billion of loans at December 31, 2012, based upon
regulatory guidance. For further information, see Consumer Credit Portfolio on pages
120–129 of this Annual Report.
(g) Loans held-for-sale and loans accounted for at fair value were excluded when
calculating the net charge-off rate.
(h) An allowance for loan losses of $4.2 billion at December 31, 2013, and $5.7 billion at
December 31, 2012 and 2011 was recorded for PCI loans; these amounts were also
excluded from the applicable ratios.