JP Morgan Chase 2014 Annual Report Download - page 75

JPMorgan Chase & Co./2014 Annual Report 73
The decrease in the allowance for loan losses was driven by
a reduction in the consumer allowance, predominantly as a
result of continued improvement in home prices and
delinquencies in the residential real estate portfolio. For a
more detailed discussion of the loan portfolio and the
allowance for loan losses, refer to Credit Risk Management
on pages 110–111, and Notes 3, 4, 14 and 15.
Accrued interest and accounts receivable
The increase was due to higher receivables from security
sales that did not settle, and higher client receivables
related to client-driven market-making activities in CIB.
Mortgage servicing rights
For additional information on MSRs, see Note 17.
Other assets
The decrease was driven by several factors, including lower
deferred tax assets; lower private equity investments due to
sales, partially offset by unrealized gains; and lower real
estate owned.
Deposits
The increase was attributable to higher consumer and
wholesale deposits. The increase in consumer deposits
reflected a continuing positive growth trend, resulting from
strong customer retention, maturing of recent branch
builds, and net new business. The increase in wholesale
deposits was driven by client activity and business growth.
For more information on consumer deposits, refer to the
CCB segment discussion on pages 81–91; the Liquidity Risk
Management discussion on pages 156–160; and Notes 3
and 19. For more information on wholesale client deposits,
refer to the AM, CB and CIB segment discussions on pages
100–102, pages 97–99 and pages 92–96, respectively, and
the Liquidity Risk Management discussion on pages 156–
160.
Federal funds purchased and securities loaned or sold
under repurchase agreements
The increase in federal funds purchased and securities
loaned or sold under repurchase agreements was
predominantly attributable to higher financing of the Firm’s
trading assets-debt and equity instruments. The increase
was partially offset by client activity in CIB. For additional
information on the Firm’s Liquidity Risk Management, see
pages 156–160.
Commercial paper
The increase was due to commercial paper issuances in the
wholesale markets consistent with Treasury’s liquidity and
short-term funding plans and, to a lesser extent, a higher
volume of liability balances related to CIB’s liquidity
management product whereby clients choose to sweep their
deposits into commercial paper. For additional information
on the Firm’s other borrowed funds, see Liquidity Risk
Management on pages 156–160.
Accounts payable and other liabilities
The increase was attributable to higher client payables
related to client short positions, and higher payables from
security purchases that did not settle, both in CIB. The
increase was partially offset by lower legal reserves, largely
reflecting the settlement of legal and regulatory matters.
Beneficial interests issued by consolidated VIEs
The increase was predominantly due to net new
consolidated credit card and municipal bond vehicles,
partially offset by a reduction in conduit commercial paper
issued to third parties and the deconsolidation of certain
mortgage securitization trusts. For further information on
Firm-sponsored VIEs and loan securitization trusts, see Off-
Balance Sheet Arrangements on pages 74–75 and Note 16.
Long-term debt
The increase was due to net issuances, consistent with
Treasury’s long-term funding plans. For additional
information on the Firm’s long-term debt activities, see
Liquidity Risk Management on pages 156–160.
Stockholders’ equity
The increase was due to net income and preferred stock
issuances, partially offset by the declaration of cash
dividends on common and preferred stock, and repurchases
of common stock. For additional information on
accumulated other comprehensive income/(loss) (“AOCI”),
see Note 25; for the Firm’s capital actions, see Capital
actions on page 154.