JP Morgan Chase 2015 Annual Report Download - page 301

JPMorgan Chase & Co./2015 Annual Report 291
Off–balance sheet lending-related financial instruments, guarantees and other commitments
Contractual amount Carrying value(j)
2015 2014 2015 2014
By remaining maturity at December 31,
(in millions)
Expires in
1 year or
less
Expires
after
1 year
through
3 years
Expires
after
3 years
through
5 years
Expires
after 5
years Total Total
Lending-related
Consumer, excluding credit card:
Home equity – senior lien $ 1,546 $ 3,817 $ 726 $ 4,743 $ 10,832 $ 11,807 $—$—
Home equity – junior lien 2,375 4,354 657 4,538 11,924 14,859 ——
Prime mortgage(a) 12,992 — — — 12,992 8,579 ——
Subprime mortgage —— —— — ———
Auto 8,907 1,160 80 90 10,237 10,462 22
Business banking 11,085 699 92 475 12,351 11,894 12 11
Student and other 4 3 — 135 142 552 ——
Total consumer, excluding credit card 36,909 10,033 1,555 9,981 58,478 58,153 14 13
Credit card 515,518 — — — 515,518 525,963 ——
Total consumer(b) 552,427 10,033 1,555 9,981 573,996 584,116 14 13
Wholesale:
Other unfunded commitments to extend credit(c)(d)(e) 85,861 89,925 140,640 6,899 323,325 318,278 649 491
Standby letters of credit and other financial
guarantees(c)(d)(e) 16,083 14,287 5,819 2,944 39,133 44,272 548 671
Other letters of credit(c) 3,570 304 67 — 3,941 4,331 21
Total wholesale(f)(g) 105,514 104,516 146,526 9,843 366,399 366,881 1,199 1,163
Total lending-related $ 657,941 $ 114,549 $ 148,081 $ 19,824 $ 940,395 $ 950,997 $ 1,213 $ 1,176
Other guarantees and commitments
Securities lending indemnification agreements and
guarantees(h) $ 183,329 $ — $ — $ — $ 183,329 $ 171,059 $—$—
Derivatives qualifying as guarantees 3,194 285 11,160 39,145 53,784 53,589 222 80
Unsettled reverse repurchase and securities borrowing
agreements 42,482 — — — 42,482 40,993 ——
Unsettled repurchase and securities lending
agreements 21,798 ———21,798 42,578 ——
Loan sale and securitization-related indemnifications:
Mortgage repurchase liability NA NA NA NA NA NA 148 275
Loans sold with recourse NA NA NA NA 4,274 6,063 82 102
Other guarantees and commitments(i) 369 2,603 1,075 1,533 5,580 5,720 (94) (121)
(a) Includes certain commitments to purchase loans from correspondents.
(b) Predominantly all consumer lending-related commitments are in the U.S.
(c) At December 31, 2015 and 2014, reflects the contractual amount net of risk participations totaling $385 million and $243 million, respectively, for other unfunded
commitments to extend credit; $11.2 billion and $13.0 billion, respectively, for standby letters of credit and other financial guarantees; and $341 million and $469
million, respectively, for other letters of credit. In regulatory filings with the Federal Reserve these commitments are shown gross of risk participations.
(d) At December 31, 2015 and 2014, included credit enhancements and bond and commercial paper liquidity commitments to U.S. states and municipalities, hospitals and
other nonprofit entities of $12.3 billion and $14.8 billion, respectively, within other unfunded commitments to extend credit; and $9.6 billion and $13.3 billion,
respectively, within standby letters of credit and other financial guarantees. Other unfunded commitments to extend credit also include liquidity facilities to
nonconsolidated municipal bond VIEs; see Note 16.
(e) Effective in 2015, commitments to issue standby letters of credit, including those that could be issued under multipurpose facilities, are presented as other unfunded
commitments to extend credit. Previously, such commitments were presented as standby letters of credit and other financial guarantees. At December 31, 2014, these
commitments were $45.6 billion. Prior period amounts have been revised to conform with current period presentation.
(f) At December 31, 2015 and 2014, the U.S. portion of the contractual amount of total wholesale lending-related commitments was 77% and 73%, respectively.
(g) Effective January 1, 2015, the Firm no longer includes within its disclosure of wholesale lending-related commitments the unused amount of advised uncommitted lines of
credit as it is within the Firm’s discretion whether or not to make a loan under these lines, and the Firm’s approval is generally required prior to funding. Prior period
amounts have been revised to conform with the current period presentation.
(h) At December 31, 2015 and 2014, collateral held by the Firm in support of securities lending indemnification agreements was $190.6 billion and $177.1 billion,
respectively. Securities lending collateral consist of primarily cash and securities issued by governments that are members of the Organisation for Economic Co-operation
and Development (“OECD”) and U.S. government agencies.
(i) At December 31, 2015 and 2014, included unfunded commitments of $50 million and $147 million, respectively, to third-party private equity funds; and $871 million
and $961 million, respectively, to other equity investments. These commitments included $73 million and $150 million, respectively, related to investments that are
generally fair valued at net asset value as discussed in Note 3. In addition, at December 31, 2015 and 2014, included letters of credit hedged by derivative transactions
and managed on a market risk basis of $4.6 billion and $4.5 billion, respectively.
(j) For lending-related products, the carrying value represents the allowance for lending-related commitments and the guarantee liability; for derivative-related products, the
carrying value represents the fair value.