JP Morgan Chase 2014 Annual Report Download - page 115

JPMorgan Chase & Co./2014 Annual Report 113
CONSUMER CREDIT PORTFOLIO
The Firm’s consumer portfolio consists primarily of
residential real estate loans, credit card loans, auto loans,
business banking loans, and student loans. The Firm’s focus
is on serving the prime segment of the consumer credit
market. For further information on consumer loans, see
Note 14.
The credit performance of the consumer portfolio continues
to benefit from the improvement in the economy and home
prices. Both early-stage delinquencies (30–89 days
delinquent) and late-stage delinquencies (150+ days
delinquent) for residential real estate, excluding government
guaranteed loans, declined from December 31, 2013.
Although late-stage delinquencies declined, they remain
elevated due to loss-mitigation activities and to elongated
foreclosure processing timelines. Losses related to these
loans continue to be recognized in accordance with the
Firm’s standard charge-off practices, but some delinquent
loans that would otherwise have been foreclosed upon
remain in the mortgage and home equity loan portfolios.
The Credit Card 30+ day delinquency rate remains near
historic lows.
The following table presents consumer credit-related information with respect to the credit portfolio held by CCB, prime
mortgage and home equity loans held by AM, and prime mortgage loans held by Corporate. For further information about the
Firm’s nonaccrual and charge-off accounting policies, see Note 14.
Consumer credit portfolio
As of or for the year ended December 31,
(in millions, except ratios)
Credit exposure Nonaccrual loans(f)(g) Net charge-offs/ (recoveries)(h)
Average annual net
charge-off/(recovery)
rate(h)(i)
2014 2013 2014 2013 2014 2013 2014 2013
Consumer, excluding credit card
Loans, excluding PCI loans and loans held-for-sale
Home equity – senior lien $ 16,367 $ 17,113 $ 938 $ 932 $ 82 $ 132 0.50% 0.72%
Home equity – junior lien 36,375 40,750 1,590 1,876 391 834 1.03 1.90
Prime mortgage, including option ARMs 104,921 87,162 2,190 2,666 39 59 0.04 0.07
Subprime mortgage 5,056 7,104 1,036 1,390 (27) 90 (0.43) 1.17
Auto(a) 54,536 52,757 115 161 181 158 0.34 0.31
Business banking 20,058 18,951 279 385 305 337 1.58 1.81
Student and other 10,970 11,557 270 86 347 297 3.07 2.51
Total loans, excluding PCI loans and loans held-for-sale 248,283 235,394 6,418 7,496 1,318 1,907 0.55 0.82
Loans – PCI
Home equity 17,095 18,927 NA NA NA NA NA NA
Prime mortgage 10,220 12,038 NA NA NA NA NA NA
Subprime mortgage 3,673 4,175 NA NA NA NA NA NA
Option ARMs 15,708 17,915 NA NA NA NA NA NA
Total loans – PCI 46,696 53,055 NA NA NA NA NA NA
Total loans – retained 294,979 288,449 6,418 7,496 1,318 1,907 0.46 0.66
Loans held-for-sale 395 (e) 614 (e) 91 —————
Total consumer, excluding credit card loans 295,374 289,063 6,509 7,496 1,318 1,907 0.46 0.66
Lending-related commitments(b) 58,153 56,057
Receivables from customers(c) 108 139
Total consumer exposure, excluding credit card 353,635 345,259
Credit Card
Loans retained(d) 128,027 127,465 ——3,429 3,879 2.75 3.14
Loans held-for-sale 3,021 326 ——————
Total credit card loans 131,048 127,791 ——3,429 3,879 2.75 3.14
Lending-related commitments(b) 525,963 529,383
Total credit card exposure 657,011 657,174
Total consumer credit portfolio $ 1,010,646 $ 1,002,433 $ 6,509 $ 7,496 $ 4,747 $ 5,786 1.15% 1.40%
Memo: Total consumer credit portfolio, excluding PCI $ 963,950 $ 949,378 $ 6,509 $ 7,496 $ 4,747 $ 5,786 1.30% 1.62%
(a) At December 31, 2014 and 2013, excluded operating lease-related assets of $6.7 billion and $5.5 billion, respectively.
(b) 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 as permitted by law, without notice.
(c) Receivables from customers represent margin loans to retail brokerage customers, and are included in accrued interest and accounts receivable on the
Consolidated balance sheets.