beatandraise : Equity Research with AI and ChatGPT on SEC Edgar

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1.0.0.3 false Noninterest revenue false 1 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDEPS Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 2 Noninterest revenue [Abstract] 0 jpm_OtherNoninterestRevenueAbstract jpm false na duration string Other Noninterest Revenue Abstract. false false false false false true false false false 1 false false 0 0 false false Other Noninterest Revenue Abstract. false 3 Noninterest revenue 1 jpm_OtherNoninterestRevenueTextBlock jpm false na duration normalizedstring Discloses components of investment banking fees, principal transactions and asset management, administration and commissions.... false false false false false false false false false 1 false false 0 0   <div style="font-family: Helvetica,Arial,sans-serif"> <div style="position: relative"> <div align="left" style="font-size: 12pt; margin-top: 12pt"><b>Note 6 – Noninterest revenue</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt"><b>Investment banking fees</b> </div> <div align="left" style="font-size: 10pt; margin-top: 0pt">This revenue category includes advisory and equity and debt underwriting fees. Advisory fees are recognized as revenue when the related services have been performed. Underwriting fees are recognized as revenue when the Firm has rendered all services to the issuer and is entitled to collect the fee from the issuer, as long as there are no other contingencies associated with the fee (e.g., the fee is not contingent upon the customer obtaining financing). Underwriting fees are net of syndicate expense; the Firm recognizes credit arrangement and syndication fees as revenue after satisfying certain retention, timing and yield criteria. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The following table presents the components of investment banking fees. </div> <div align="center"> <table style="font-size: 8pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="64%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left">Year ended December 31,</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left">(in millions)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2008</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2007</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #ffffff"> <td> <div style="margin-left:15px; text-indent:-15px">Underwriting: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Equity </div></td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>2,487</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,477</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,713</td> <td> </td> </tr> <tr valign="bottom" style="background: #ffffff"> <td> <div style="margin-left:30px; text-indent:-15px">Debt </div></td> <td> </td> <td> </td> <td align="right"><b>2,739</b></td> <td> </td> <td> </td> <td> </td> <td align="right">2,094</td> <td> </td> <td> </td> <td> </td> <td align="right">2,650</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total underwriting </div></td> <td> </td> <td> </td> <td align="right"><b>5,226</b></td> <td> </td> <td> </td> <td> </td> <td align="right">3,571</td> <td> </td> <td> </td> <td> </td> <td align="right">4,363</td> <td> </td> </tr> <tr valign="bottom" style="background: #ffffff"> <td> <div style="margin-left:30px; text-indent:-15px">Advisory </div></td> <td> </td> <td> </td> <td align="right"><b>1,861</b></td> <td> </td> <td> </td> <td> </td> <td align="right">1,955</td> <td> </td> <td> </td> <td> </td> <td align="right">2,272</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Total investment banking fees</b> </div></td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>7,087</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">5,526</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">6,635</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Principal transactions</b> </div> <div align="left" style="font-size: 10pt; margin-top: 0pt">Principal transactions revenue consists of realized and unrealized gains and losses from trading activities (including physical commodities inventories that are accounted for at the lower of cost or fair value), changes in fair value associated with financial instruments held by IB for which the fair value option was elected, and loans held-for-sale within the wholesale lines of business. For loans measured at fair value under the fair value option, origination costs are recognized in the associated expense category as incurred. Principal transactions revenue also includes private equity gains and losses. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The following table presents principal transactions revenue. </div> <div align="center"> <table style="font-size: 8pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="64%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left">Year ended December 31,</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left">(in millions)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2008</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2">2007</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #ffffff"> <td> <div style="margin-left:15px; text-indent:-15px">Trading revenue </div></td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>9,870</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(9,791</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">4,736</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Private equity gains/(losses)<sup>(a)</sup> </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(74</b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(908</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">4,279</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #ffffff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Principal transactions</b> </div></td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>9,796</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(10,699</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">9,015</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr>  </table> </div> <div align="left"> <div style="font-size: 3pt; margin-top: 3pt; width: 18%; border-top: 0px solid #000000">  </div> </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt; text-align: left"> <tr> <td width="3%"></td> <td width="1%"></td> <td width="96"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(a)</td> <td> </td> <td>Includes revenue on private equity investments held in the Private Equity business within Corporate/Private Equity, and those held in other business segments.</td> </tr> </table> </div> <div style="position: relative"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Lending- and deposit-related fees</b> </div> <div align="left" style="font-size: 10pt; margin-top: 0pt">This revenue category includes fees from loan commitments, standby letters of credit, financial guarantees, deposit-related fees in lieu of compensating balances, cash management-related activities or transactions, deposit accounts and other loan-servicing activities. These fees are recognized over the period in which the related service is provided. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Asset management, administration and commissions</b> </div> <div align="left" style="font-size: 10pt; margin-top: 0pt">This revenue category includes fees from investment management and related services, custody, brokerage services, insurance premiums and commissions, and other products. These fees are recognized over the period in which the related service is provided. Performance-based fees, which are earned based on exceeding certain benchmarks or other performance targets, are accrued and recognized at the end of the performance period in which the target is met. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The following table presents the components of asset management, administration and commissions. </div> <div align="center"> <table style="font-size: 8pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="64%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left">Year ended December 31,</td> <td> </td> <td nowrap="nowrap" align="right" colspan="3"> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="3"> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="3"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left">(in millions)</td> <td> </td> <td nowrap="nowrap" align="right" colspan="3"><b>2009</b></td> <td> </td> <td nowrap="nowrap" align="right" colspan="3">2008</td> <td> </td> <td nowrap="nowrap" align="right" colspan="3">2007</td> </tr>   <tr style="font-size: 1px"> <td colspan="13" valign="top" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #ffffff"> <td valign="top"> <div style="margin-left:15px; text-indent:-15px">Asset management: </div></td> <td> </td> <td nowrap="nowrap" align="right" valign="bottom"> </td> <td align="right" valign="bottom"> </td> <td valign="top"> </td> <td> </td> <td nowrap="nowrap" align="right" valign="bottom"> </td> <td align="right" valign="bottom"> </td> <td valign="top"> </td> <td> </td> <td nowrap="nowrap" align="right" valign="bottom"> </td> <td align="right" valign="bottom"> </td> <td valign="top"> </td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:15px; text-indent:-15px">Investment management fees </div></td> <td> </td> <td nowrap="nowrap" align="right" valign="bottom"><b>$</b></td> <td align="right" valign="bottom"><b>4,997</b></td> <td nowrap="nowrap" valign="top"> </td> <td> </td> <td nowrap="nowrap" align="right" valign="bottom">$</td> <td align="right" valign="bottom">5,562</td> <td nowrap="nowrap" valign="top"> </td> <td> </td> <td nowrap="nowrap" align="right" valign="bottom">$</td> <td align="right" valign="bottom">6,364</td> <td nowrap="nowrap" valign="top"> </td> </tr> <tr valign="bottom" style="background: #ffffff"> <td valign="top"> <div style="margin-left:15px; text-indent:-15px">All other asset management fees </div></td> <td> </td> <td nowrap="nowrap" align="right" valign="bottom"> </td> <td align="right" valign="bottom"><b>356</b></td> <td nowrap="nowrap" valign="top"> </td> <td> </td> <td nowrap="nowrap" align="right" valign="bottom"> </td> <td align="right" valign="bottom">432</td> <td nowrap="nowrap" valign="top"> </td> <td> </td> <td nowrap="nowrap" align="right" valign="bottom"> </td> <td align="right" valign="bottom">639</td> <td nowrap="nowrap" valign="top"> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" valign="top" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:15px; text-indent:-0px">Total asset management fees </div></td> <td> </td> <td nowrap="nowrap" align="right" valign="bottom"> </td> <td align="right" valign="bottom"><b>5,353</b></td> <td nowrap="nowrap" valign="top"> </td> <td> </td> <td nowrap="nowrap" align="right" valign="bottom"> </td> <td align="right" valign="bottom">5,994</td> <td nowrap="nowrap" valign="top"> </td> <td> </td> <td nowrap="nowrap" align="right" valign="bottom"> </td> <td align="right" valign="bottom">7,003</td> <td nowrap="nowrap" valign="top"> </td> </tr> <tr valign="bottom" style="background: #ffffff"> <td valign="top"> <div style="margin-left:15px; text-indent:-15px">Total administration fees<sup>(a)</sup> </div></td> <td> </td> <td nowrap="nowrap" align="right" valign="bottom"> </td> <td align="right" valign="bottom"><b>1,927</b></td> <td nowrap="nowrap" valign="top"> </td> <td> </td> <td nowrap="nowrap" align="right" valign="bottom"> </td> <td align="right" valign="bottom">2,452</td> <td nowrap="nowrap" valign="top"> </td> <td> </td> <td nowrap="nowrap" align="right" valign="bottom"> </td> <td align="right" valign="bottom">2,401</td> <td nowrap="nowrap" valign="top"> </td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:15px; text-indent:-15px">Commission and other fees: </div></td> <td> </td> <td nowrap="nowrap" align="right" valign="bottom"> </td> <td align="right" valign="bottom"> </td> <td valign="top"> </td> <td> </td> <td nowrap="nowrap" align="right" valign="bottom"> </td> <td align="right" valign="bottom"> </td> <td valign="top"> </td> <td> </td> <td nowrap="nowrap" align="right" valign="bottom"> </td> <td align="right" valign="bottom"> </td> <td valign="top"> </td> </tr> <tr valign="bottom" style="background: #ffffff"> <td valign="top"> <div style="margin-left:30px; text-indent:-15px">Brokerage commissions </div></td> <td> </td> <td nowrap="nowrap" align="right" valign="bottom"> </td> <td align="right" valign="bottom"><b>2,904</b></td> <td nowrap="nowrap" valign="top"> </td> <td> </td> <td nowrap="nowrap" align="right" valign="bottom"> </td> <td align="right" valign="bottom">3,141</td> <td nowrap="nowrap" valign="top"> </td> <td> </td> <td nowrap="nowrap" align="right" valign="bottom"> </td> <td align="right" valign="bottom">2,702</td> <td nowrap="nowrap" valign="top"> </td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:30px; text-indent:-15px">All other commissions and fees </div></td> <td> </td> <td nowrap="nowrap" align="right" valign="bottom"> </td> <td align="right" valign="bottom"><b>2,356</b></td> <td nowrap="nowrap" valign="top"> </td> <td> </td> <td nowrap="nowrap" align="right" valign="bottom"> </td> <td align="right" valign="bottom">2,356</td> <td nowrap="nowrap" valign="top"> </td> <td> </td> <td nowrap="nowrap" align="right" valign="bottom"> </td> <td align="right" valign="bottom">2,250</td> <td nowrap="nowrap" valign="top"> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" valign="top" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #ffffff"> <td valign="top"> <div style="margin-left:30px; text-indent:-15px">Total commissions and fees </div></td> <td> </td> <td nowrap="nowrap" align="right" valign="bottom"> </td> <td align="right" valign="bottom"><b>5,260</b></td> <td nowrap="nowrap" valign="top"> </td> <td> </td> <td nowrap="nowrap" align="right" valign="bottom"> </td> <td align="right" valign="bottom">5,497</td> <td nowrap="nowrap" valign="top"> </td> <td> </td> <td nowrap="nowrap" align="right" valign="bottom"> </td> <td align="right" valign="bottom">4,952</td> <td nowrap="nowrap" valign="top"> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" valign="top" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:15px; text-indent:-15px"><b>Total asset management, administration and commissions</b> </div></td> <td> </td> <td nowrap="nowrap" align="right" valign="bottom"><b>$</b></td> <td align="right" valign="bottom"><b>12,540</b></td> <td nowrap="nowrap" valign="top"> </td> <td> </td> <td nowrap="nowrap" align="right" valign="bottom">$</td> <td align="right" valign="bottom">13,943</td> <td nowrap="nowrap" valign="top"> </td> <td> </td> <td nowrap="nowrap" align="right" valign="bottom">$</td> <td align="right" valign="bottom">14,356</td> <td nowrap="nowrap" valign="top"> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" valign="top" align="left" style="border-top: 1px solid #000000"> </td> </tr>  </table> </div> <div align="left"> <div style="font-size: 3pt; margin-top: 3pt; width: 18%; border-top: 0px solid #000000">  </div> </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt; text-align: left"> <tr> <td width="3%"></td> <td width="1%"></td> <td width="96"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(a)</td> <td> </td> <td>Includes fees for custody, securities lending, funds services and securities clearance.</td> </tr> </table> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Mortgage fees and related income</b> </div> <div align="left" style="font-size: 10pt; margin-top: 0pt">This revenue category primarily reflects RFS’s mortgage banking revenue, including: fees and income derived from mortgages originated with the intent to sell; mortgage sales and servicing including losses related to the repurchase of previously sold loans; the impact of risk management activities associated with the mortgage pipeline, warehouse loans and MSRs; and revenue related to any residual interests held from mortgage securitizations. This revenue category also includes gains and losses on sales and lower of cost or fair value adjustments for mortgage loans held-for-sale, as well as changes in fair value for mortgage loans originated with the intent to sell and measured at fair value under the fair value option. For loans measured at fair value under the fair value option, origination costs are recognized in the associated expense category as incurred. Costs to originate loans held-for-sale and accounted for at the lower of cost or fair value are deferred and recognized as a component of the gain or loss on sale. Net interest income from mortgage loans, and securities gains and losses on AFS securities used in mortgage-related risk management activities, are recorded in interest income and securities gains/(losses), respectively. For a further discussion of MSRs, see Note 17 on pages 214-217 of this Annual Report. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Credit card income</b><br /> This revenue category includes interchange income from credit and debit cards and servicing fees earned in connection with securitization activities. Volume-related payments to partners and expense for rewards programs are netted against interchange income; expense related to rewards programs are recorded when the rewards are earned by the customer. Other fee revenue is recognized as earned, except for annual fees, which are deferred and recognized on a straight-line basis over the 12-month period to which they pertain. Direct loan origination costs are also deferred and recognized over a 12-month period. In addition, due to the consolidation of Chase Paymentech Solutions in the fourth quarter of 2008, this category now includes net fees earned for processing card transactions for merchants. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt"><i>Credit card revenue sharing agreements</i><br /> The Firm has contractual agreements with numerous affinity organizations and co-brand partners, which grant the Firm exclusive rights to market to the members or customers of such organizations and partners. These organizations and partners endorse the credit card programs and provide their mailing lists to the Firm, and they may also conduct marketing activities and provide awards under the various credit card programs. The terms of these agreements generally range from three to ten years. The economic incentives the Firm pays to the endorsing organizations and partners typically include payments based on new account originations, charge volumes, and the cost of the endorsing organizations’ or partners’ marketing activities and awards. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The Firm recognizes the payments made to the affinity organizations and co-brand partners based on new account originations as direct loan origination costs. Payments based on charge volumes are considered by the Firm as revenue sharing with the affinity organizations and co-brand partners, which are deducted from interchange income as the related revenue is earned. Payments based on marketing efforts undertaken by the endorsing organization or partner are expensed by the Firm as incurred. These costs are recorded within noninterest expense. </div> </div> <div style="position: relative"> </div> </div>  <!-- Begin Block Tagged Note false false Discloses components of investment banking fees, principal transactions and asset management, administration and commissions. Also provides a qualitative description of the various other noninterest revenue items presented on the face of the income statement. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true