JP Morgan Chase 2015 Annual Report Download - page 125

JPMorgan Chase & Co./2015 Annual Report 115
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. The credit performance of the consumer portfolio
continues to benefit from discipline in credit underwriting as
well as improvement in the economy driven by increasing
home prices and lower unemployment. 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, 2014 levels. The Credit Card 30+ day
delinquency rate and the net charge-off rate remain near
historic lows. For further information on consumer loans,
see Note 14.
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(g)(h)
Net charge-offs/
(recoveries)(i)
Average annual net
charge-off/(recovery)
rate(i)(j)
2015 2014 2015 2014 2015 2014 2015 2014
Consumer, excluding credit card
Loans, excluding PCI loans and loans held-for-sale
Home equity – senior lien $ 14,848 $ 16,367 $ 867 $ 938 $69$82 0.43% 0.50%
Home equity – junior lien 30,711 36,375 1,324 1,590 222 391 0.67 1.03
Prime mortgage, including option ARMs 162,549 104,921 1,752 2,190 49 39 0.04 0.04
Subprime mortgage 3,690 5,056 751 1,036 (53) (27) (1.22) (0.43)
Auto(a) 60,255 54,536 116 115 214 181 0.38 0.34
Business banking 21,208 20,058 263 279 253 305 1.23 1.58
Student and other 10,096 10,970 242 270 200 347 1.89 3.07
Total loans, excluding PCI loans and loans held-for-sale 303,357 248,283 5,315 6,418 954 1,318 0.35 0.55
Loans – PCI
Home equity 14,989 17,095 —NA —NA —NA
Prime mortgage 8,893 10,220 —NA —NA —NA
Subprime mortgage 3,263 3,673 —NA —NA —NA
Option ARMs(b) 13,853 15,708 —NA —NA —NA
Total loans – PCI 40,998 46,696 —NA —NA —NA
Total loans – retained 344,355 294,979 5,315 6,418 954 1,318 0.30 0.46
Loans held-for-sale 466 (f) 395 (f) 98 91 ————
Total consumer, excluding credit card loans 344,821 295,374 5,413 6,509 954 1,318 0.30 0.46
Lending-related commitments(c) 58,478 58,153
Receivables from customers(d) 125 108
Total consumer exposure, excluding credit card 403,424 353,635
Credit Card
Loans retained(e) 131,387 128,027 ——3,122 3,429 2.51 2.75
Loans held-for-sale 76 3,021 ——————
Total credit card loans 131,463 131,048 ——3,122 3,429 2.51 2.75
Lending-related commitments(c) 515,518 525,963
Total credit card exposure 646,981 657,011
Total consumer credit portfolio $ 1,050,405 $ 1,010,646 $ 5,413 $ 6,509 $ 4,076 $ 4,747 0.92% 1.15%
Memo: Total consumer credit portfolio, excluding PCI $ 1,009,407 $ 963,950 $ 5,413 $ 6,509 $ 4,076 $ 4,747 1.02% 1.30%
(a) At December 31, 2015 and 2014, excluded operating lease assets of $9.2 billion and $6.7 billion, respectively.
(b) At December 31, 2015 and 2014, approximately 64% and 57% of the PCI option ARMs portfolio has been modified into fixed-rate, fully amortizing loans,
respectively.
(c) 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.
(d) Receivables from customers represent margin loans to retail brokerage customers, and are included in Accrued interest and accounts receivable on the
Consolidated balance sheets.
(e) Includes accrued interest and fees net of an allowance for the uncollectible portion of accrued interest and fee income.
(f) Predominantly represents prime mortgage loans held-for-sale.