JP Morgan Chase 2015 Annual Report Download - page 109

JPMorgan Chase & Co./2015 Annual Report 99
COMMERCIAL BANKING
Commercial Banking delivers extensive industry
knowledge, local expertise and dedicated service to
U.S. and U.S. multinational clients, including
corporations, municipalities, financial institutions and
nonprofit entities with annual revenue generally
ranging from $20 million to $2 billion. In addition, CB
provides financing to real estate investors and owners.
Partnering with the Firm’s other businesses, CB
provides comprehensive financial solutions, including
lending, treasury services, investment banking and
asset management to meet its clients’ domestic and
international financial needs.
Selected income statement data
Year ended December 31,
(in millions) 2015 2014 2013
Revenue
Lending- and deposit-related fees $ 944 $ 978 $ 1,033
Asset management, administration
and commissions 88 92 116
All other income(a) 1,333 1,279 1,149
Noninterest revenue 2,365 2,349 2,298
Net interest income 4,520 4,533 4,794
Total net revenue(b) 6,885 6,882 7,092
Provision for credit losses 442 (189) 85
Noninterest expense
Compensation expense 1,238 1,203 1,115
Noncompensation expense 1,643 1,492 1,495
Total noninterest expense 2,881 2,695 2,610
Income before income tax expense 3,562 4,376 4,397
Income tax expense 1,371 1,741 1,749
Net income $ 2,191 $ 2,635 $ 2,648
(a) Includes revenue from investment banking products and commercial card
transactions.
(b) Total net revenue included tax-equivalent adjustments from income tax
credits related to equity investments in designated community
development entities that provide loans to qualified businesses in low-
income communities, as well as tax-exempt income from municipal bond
activities of $493 million, $462 million and $407 million for the years
ended December 31, 2015, 2014 and 2013, respectively.
2015 compared with 2014
Net income was $2.2 billion, a decrease of 17% compared
with the prior year, driven by a higher provision for credit
losses and higher noninterest expense.
Net revenue was $6.9 billion, flat compared with the prior
year. Net interest income was $4.5 billion, flat compared
with the prior year, with interest income from higher loan
balances offset by spread compression. Noninterest revenue
was $2.4 billion, flat compared with the prior year, with
higher investment banking revenue offset by lower lending-
related fees.
Noninterest expense was $2.9 billion, an increase of 7%
compared with the prior year, reflecting investment in
controls.
The provision for credit losses was $442 million, reflecting
an increase in the allowance for credit losses for Oil & Gas
exposure and other select downgrades. The prior year was a
benefit of $189 million.
2014 compared with 2013
Net income was $2.6 billion, flat compared with the prior
year, reflecting lower net revenue and higher noninterest
expense, predominantly offset by a lower provision for
credit losses.
Net revenue was $6.9 billion, a decrease of 3% compared
with the prior year. Net interest income was $4.5 billion, a
decrease of 5%, reflecting spread compression, the
absence of proceeds received in the prior year from a
lending-related workout, and lower purchase discounts
recognized on loan repayments, partially offset by higher
loan balances. Noninterest revenue was $2.3 billion, up
2%, reflecting higher investment banking revenue, largely
offset by business simplification and lower lending fees.
Noninterest expense was $2.7 billion, an increase of 3%
from the prior year, largely reflecting investments in
controls.