JP Morgan Chase 2015 Annual Report Download - page 85

JPMorgan Chase & Co./2015 Annual Report 75
CONSOLIDATED BALANCE SHEETS ANALYSIS
Selected Consolidated balance sheets data
December 31, (in millions) 2015 2014 Change
Assets
Cash and due from banks $ 20,490 $ 27,831 (26)%
Deposits with banks 340,015 484,477 (30)
Federal funds sold and securities
purchased under resale
agreements 212,575 215,803 (1)
Securities borrowed 98,721 110,435 (11)
Trading assets:
Debt and equity instruments 284,162 320,013 (11)
Derivative receivables 59,677 78,975 (24)
Securities 290,827 348,004 (16)
Loans 837,299 757,336 11
Allowance for loan losses (13,555) (14,185) (4)
Loans, net of allowance for loan
losses 823,744 743,151 11
Accrued interest and accounts
receivable 46,605 70,079 (33)
Premises and equipment 14,362 15,133 (5)
Goodwill 47,325 47,647 (1)
Mortgage servicing rights 6,608 7,436 (11)
Other intangible assets 1,015 1,192 (15)
Other assets 105,572 102,098 3
Total assets $ 2,351,698 $ 2,572,274 (9)%
Liabilities
Deposits $ 1,279,715 $ 1,363,427 (6)
Federal funds purchased and
securities loaned or sold under
repurchase agreements 152,678 192,101 (21)
Commercial paper 15,562 66,344 (77)
Other borrowed funds 21,105 30,222 (30)
Trading liabilities:
Debt and equity instruments 74,107 81,699 (9)
Derivative payables 52,790 71,116 (26)
Accounts payable and other
liabilities 177,638 206,939 (14)
Beneficial interests issued by
consolidated variable interest
entities (“VIEs”) 41,879 52,320 (20)
Long-term debt 288,651 276,379 4
Total liabilities 2,104,125 2,340,547 (10)
Stockholders’ equity 247,573 231,727 7
Total liabilities and
stockholders’ equity $ 2,351,698 $ 2,572,274 (9)%
The following is a discussion of the significant changes
between December 31, 2015 and 2014.
Cash and due from banks and deposits with banks
The Firm’s excess cash is placed with various central banks,
predominantly Federal Reserve Banks. The net decrease in
cash and due from banks and deposits with banks was
primarily due to the Firm’s actions to reduce wholesale non-
operating deposits.
Securities borrowed
The decrease was largely driven by a lower demand for
securities to cover short positions in CIB. For additional
information, refer to Notes 3 and 13.
Trading assets–debt and equity instruments
The decrease was predominantly related to client-driven
market-making activities in CIB, which resulted in lower
levels of both debt and equity instruments. For additional
information, refer to Note 3.
Trading assets and liabilities–derivative receivables and
payables
The decrease in both receivables and payables was
predominantly driven by declines in interest rate
derivatives, commodity derivatives, foreign exchange
derivatives and equity derivatives due to market
movements, maturities and settlements related to client-
driven market-making activities in CIB. For additional
information, refer to Derivative contracts on pages 127–
129, and Notes 3 and 6.
Securities
The decrease was largely due to paydowns and sales of
non-U.S. residential mortgage-backed securities, non-U.S.
government debt securities, and non-U.S. corporate debt
securities reflecting a shift to loans. For additional
information related to securities, refer to the discussion
in the Corporate segment on pages 105–106, and Notes 3
and 12.
Loans and allowance for loan losses
The increase in loans was attributable to an increase in
consumer loans due to higher originations and retention of
prime mortgages in Mortgage Banking (“MB”) and AM, and
higher originations of auto loans in CCB, as well as an
increase in wholesale loans driven by increased client
activity, notably in commercial real estate.
The decrease in the allowance for loan losses was
attributable to a lower consumer, excluding credit card,
allowance for loan losses, driven by a reduction in the
residential real estate portfolio allowance as a result of
continued improvement in home prices and delinquencies
and increased granularity in the impairment estimates. The
wholesale allowance increased, largely reflecting the impact
of downgrades in the Oil & Gas portfolio. For a more
detailed discussion of loans and the allowance for loan
losses, refer to Credit Risk Management on pages 112–132,
and Notes 3, 4, 14 and 15.