JP Morgan Chase 2015 Annual Report Download - page 115

JPMorgan Chase & Co./2015 Annual Report 105
CORPORATE
The Corporate segment consists of Treasury and Chief
Investment Office (“CIO”) and Other Corporate, which
includes corporate staff units and expense that is
centrally managed. Treasury and CIO are
predominantly responsible for measuring, monitoring,
reporting and managing the Firm’s liquidity, funding
and structural interest rate and foreign exchange risks,
as well as executing the Firm’s capital plan. The major
Other Corporate units include Real Estate, Enterprise
Technology, Legal, Compliance, Finance, Human
Resources, Internal Audit, Risk Management, Oversight
& Control, Corporate Responsibility and various Other
Corporate groups. Other centrally managed expense
includes the Firm’s occupancy and pension-related
expenses that are subject to allocation to the
businesses.
Selected income statement data
Year ended December 31,
(in millions, except headcount) 2015 2014 2013
Revenue
Principal transactions $41$ 1,197 $ 563
Securities gains 190 71 666
All other income 569 704 1,864
Noninterest revenue 800 1,972 3,093
Net interest income(a) (533) (1,960) (3,115)
Total net revenue 267 12 (22)
Provision for credit losses (10) (35) (28)
Noninterest expense(b) 977 1,159 10,255
Loss before income tax benefit (700) (1,112) (10,249)
Income tax benefit (3,137) (1,976) (3,493)
Net income/(loss) $ 2,437 $ 864 $ (6,756)
Total net revenue
Treasury and CIO (493) (1,317) (2,068)
Other Corporate (c) 760 1,329 2,046
Total net revenue $ 267 $ 12 $ (22)
Net income/(loss)
Treasury and CIO (235) (1,165) (1,454)
Other Corporate (c) 2,672 2,029 (5,302)
Total net income/(loss) $ 2,437 $ 864 $ (6,756)
Selected balance sheet data
(period-end)
Total assets (period-end) $768,204 $ 931,206 $ 805,506
Loans 2,187 2,871 4,004
Core loans(d) 2,182 2,848 3,958
Headcount 29,617 26,047 20,717
(a) Included tax-equivalent adjustments, predominantly due to tax-exempt
income from municipal bond investments of $839 million, $730 million
and $480 million for the years ended December 31, 2015, 2014 and
2013, respectively.
(b) Included legal expense of $832 million, $821 million and $10.2 billion for
the years ended December 31, 2015, 2014 and 2013, respectively.
(c) Effective in 2015, the Firm began including the results of Private Equity in
the Other Corporate line within the Corporate segment. Prior period
amounts have been revised to conform with the current period
presentation. The Corporate segment’s balance sheets and results of
operations were not impacted by this reporting change.
(d) Average core loans were $2.5 billion, $3.3 billion and $5.2 billion for the
years ended December 31, 2015, 2014 and 2013, respectively.
2015 compared with 2014
Net income was $2.4 billion, compared with net income of
$864 million in the prior year.
Net revenue was $267 million, compared with $12 million
in the prior year. The current year included a $514 million
benefit from a legal settlement. Treasury and CIO included a
benefit of approximately $178 million associated with
recognizing the unamortized discount on certain debt
securities which were called at par and a $173 million
pretax loss primarily related to accelerated amortization of
cash flow hedges associated with the exit of certain non-
operating deposits. Private Equity gains were $1.2 billion
lower compared with the prior year, reflecting lower
valuation gains and lower net gains on sales as the Firm
exits this non-core business.
Noninterest expense was $977 million, a decrease of $182
million from the prior year which had included a $276
million goodwill impairment related to the sale of a portion
of the Private Equity business.
The current year reflected tax benefits of $2.6 billion
predominantly from the resolution of various tax audits
compared with tax benefits of $1.1 billion in the prior year.
2014 compared with 2013
Net income was $864 million, compared to a net loss of
$6.8 billion in the prior year.
Net revenue was $12 million compared to a net loss of $22
million in the prior year. Current year net interest income
was a loss of $2 billion compared to a loss of $3.1 billion in
the prior year, primarily reflecting higher yields on
investment securities. Securities gains were $71 million,
compared with $659 million in the prior year, reflecting
lower repositioning activity of the investment securities
portfolio in the current period.
Private Equity gains were $540 million higher compared
with the prior year reflecting higher net gains on sales.
Prior year net revenue also included gains of $1.3 billion
and $493 million on the sales of Visa shares and One Chase
Manhattan Plaza, respectively.
Noninterest expense was $1.2 billion, a decrease of $9.1
billion due to a decrease in reserves for litigation and
regulatory proceedings in the prior year partially offset by
the impact of a $276 million goodwill impairment related to
the sale of a portion of the Private Equity business.