JPMORGAN CHASE & CO: what changed in the 10-K

Ongoing obligations. The Firm is remains subject to a five-year cooperation obligation under an consent order issued by the CFTC on September 29, 2020, relating to precious metals and U.S. Treasuries markets investigations. The Firm also remains subject to consent orders entered into in March 2024 with the OCC and the Board of Governors of the Federal Reserve System, and a resolution entered into in May 2024 with the CFTC, which relate relates to the Firm's processes to inventory trading venues and confirm the completeness of certain data fed to trade surveillance platforms.

The Firm is subject to extensive and comprehensive regulation under U.S. federal and state laws, as well as the applicable laws of the jurisdictions outside the U.S. in which the Firm does business. From time to time, trade organizations representing the financial services industry and others have filed or may file lawsuits challenging various laws, rules and regulations. Such regulatory challenges may affect the scope, requirements or effective dates of the regulations applicable to the Firm.

JPMorganChase supports the professional development and career growth of its employees. The Firm requires that its employees, including new hires, complete a training curriculum which covers, among other topics, compliance with the Firm's Code of Conduct and information concerning Firm policies and standards, including those relating to cybersecurity. In addition, the Firm offers extensive voluntary training programs and educational resources to all employees covering a broad variety of topics such as leadership and management, artificial intelligence, data literacy and operational and professional skills. Leadership Edge, the Firm's global leadership and management development center of excellence, is focused on creating one Firmwide leadership culture. In addition, the Firm requires that its employees, including new hires, complete a training curriculum that covers, among other topics, information concerning Firm policies and standards.

The Firm's asset and wealth management businesses continue to be are subject to ongoing rule-making and implementation of new regulations and other guidance, including by the SEC and certain U.S. states with respect to regarding enhanced standards of conduct and conflicts of interest. In April 2024, the Department of Labor (" DOL ") finalized a new " fiduciary " rule that would significantly expand the scope for defining who can is deemed to be deemed an investment advice fiduciaries fiduciary for purposes of retirement plans and individual retirement accounts (" IRAs ") under the Employee Retirement Income Security Act of 1974, as amended (the " Fiduciary Rule "). Among the most significant impacts of the rule 1947 and related amendments to prohibited transaction exemptions would be the impact on the could affect fee and compensation practices at financial institutions that offer provide investment recommendations to retirement clients , including in the context of rollovers from an employer plan to an IRA . The effective date of the Fiduciary Rule rule has been stayed by two federal courts. Refer The DOL has indicated that it intends to Litigation revise the rule, and regulatory challenges the potential impact of the rule on pages 6-7 for further information the Firm is therefore uncertain .

In October 2023, the Federal Reserve Board proposed to lower the maximum interchange fee that large debit card issuers, including the Firm, would be permitted to receive for a debit card transaction. The proposal would also establish a process for automatically publishing an updated maximum fee amount every other year going forward. The current debit interchange fee cap is subject to ongoing litigation, and the impact of that litigation on the Federal Reserve's proposal is uncertain. The Firm's consumer activities are also subject to regulation under state statutes which are enforced by the Attorney General or empowered agency of each state. Certain states have introduced legislation related to interchange fees, which would impact the fees that financial institutions, including the Firm, would be permitted to receive for certain transactions within a state. Where interchange fee regulation has been passed at the state level, it is subject to ongoing legal challenge.

Heightened Supervisory Standards supervisory standards . In the U.S., the OCC has established guidelines setting forth heightened standards for large banks, including minimum standards for the design and implementation of a risk governance framework for banks. Under these standards, a bank's risk governance framework must ensure that the bank's risk profile is easily distinguished and separate from that of its parent BHC for risk management purposes. The bank's board or risk committee is responsible for approving the bank's risk governance framework, providing active oversight of the bank's risk-taking activities, and holding management accountable for adhering to the risk governance framework. In December 2025, the OCC issued a proposed rulemaking to amend its heightened standards guidelines, which would continue to apply to JPMorgan Chase Bank, N.A., by raising the asset threshold at which the guidelines apply to covered banks. In the proposed rulemaking, the OCC also invited comments on a number of questions, including whether the heightened standards guidelines should be rescinded. The proposed rulemaking has not yet been finalized.

The Firm strives to provide both external candidates and internal employees who are seeking a different role with challenging and stimulating rewarding career opportunities. These opportunities range from internship training programs for students to entry-level, management and executive careers. During 2024, approximately 56% of the Firm's employment opportunities were filled by external candidates, with the remainder filled by existing employees.

Effective in the second quarter of 2024, JPMorganChase reorganized its reportable business segments by combining the former Corporate & Investment Bank and Commercial Banking business segments to form one reportable segment, the Commercial & Investment Bank. As a result of the reorganization For management reporting purposes , the Firm has three reportable business segments - Consumer & Community Banking (" CCB "), Commercial & Investment Bank (" CIB ") and Asset & Wealth Management (" AWM ") - with the remaining activities in Corporate. The Firm's consumer business segment is CCB, and the Firm's wholesale business segments are CIB and AWM.

Consumer supervision and regulation. JPMorganChase and JPMorgan Chase Bank, N.A. are subject to supervision and regulation in the U.S. by the Consumer Financial Protection Bureau (" CFPB ") with respect to federal consumer protection laws, including laws relating to fair lending and the prohibition of unfair, deceptive or abusive acts or practices in connection with the offer, sale or provision of consumer financial products and services. The CFPB also has jurisdiction over small business lending activities with respect to fair lending and the Equal Credit Opportunity Act. As part of its regulatory oversight, the CFPB has authority to take enforcement actions against firms that offer certain products and services to consumers using practices that are deemed to be unfair, deceptive or abusive. In March October 2024, the CFPB released issued a final rule which significantly reduces the late payment fees that large credit card issuers would have required data providers , including the Firm banks such as JPMorgan Chase Bank , are permitted N.A., to charge make certain consumer data available to customers (the " CFPB Late Fee Rule ") consumers and authorized third parties in electronic form . The final rule is currently stayed pending resolution subject to a preliminary injunction, and the CFPB has indicated that it intends to propose a new rule in the first quarter of an industry-led challenge in federal court 2026 . Refer to Litigation The content of any new proposal, and regulatory challenges the potential impact on pages 6-7 for further information the Firm, are uncertain .

FDIC deposit insurance. The FDIC deposit insurance fund provides insurance coverage for certain deposits and is funded through assessments on banks, including JPMorgan Chase Bank, N.A. The FDIC is required to maintain a minimum reserve ratio, which measures the balance of reserves in the deposit insurance fund against an estimate of FDIC-insured deposits, of 1.35%. The reserve ratio is currently below the statutory minimum and, in In October 2022, the FDIC adopted a final rule to raise bank assessments and accelerate the time by which the reserve ratio would meet the statutory minimum. As a result In the final rule , the FDIC has adopted a restoration plan to bring the reserve ratio up to the required 1.35% by September 30, 2028, with a longer-term target of maintaining a reserve ratio of 2%. As of June 30, 2025, the reserve ratio exceeded the statutory minimum and, as of the third quarter of 2025, the FDIC was no longer operating under a restoration plan. On November 28, 2025, the FDIC announced that the designated reserve ratio, the FDIC's longer-term goal for the deposit insurance fund, would remain unchanged at 2% for 2026.

Stress tests. As a large BHC, JPMorganChase is subject to supervisory stress testing administered by the Federal Reserve as part of the Federal Reserve's annual Comprehensive Capital Analysis and Review (" CCAR ") framework. The Firm must conduct annual company-run stress tests and must also submit an annual capital plan to the Federal Reserve, taking into account the results of separate stress tests designed by each of the Firm and the Federal Reserve. The Federal Reserve uses the results under the severely adverse scenario from its supervisory stress test to determine the Firm's Stress Capital Buffer (" SCB ") requirement for the coming year, which forms part of the Firm's applicable capital buffers. The Firm is required to file its annual CCAR submission on April 5, 2025. The Federal Reserve will notify the Firm of its indicative SCB requirement by June 30, 2025 and final SCB requirement by August 31, 2025. The Firm's final

Banking supervisors globally continue to refine and enhance the Basel III capital framework for financial institutions. In July 2023, U.S. banking regulators released a proposal to amend the U.S. risk-based capital framework to incorporate certain elements of the revised international Basel III capital framework. The That proposal , which has not been finalized, would have significantly revise revised risk-based capital requirements for banks with assets of $100 billion or more, including the Firm and other U.S. global systemically important banks (" GSIBs "). Finalization In September 2025, the Federal Reserve's Vice Chair for Supervision indicated that U.S. banking regulators may issue an updated proposal to amend the U.S. risk-based capital framework in early 2026, replacing the July 2023 proposal. The timing and content of the that revised proposal, including the any required implementation date, is are uncertain. The Firm continues to monitor developments and potential impacts.

As of December 31, 2024 2025 , JPMorganChase had 317,233 318,512 employees globally , an increase of 7,307 employees from the prior year. The increase was primarily attributable to growth in the number of front office and technology employees . JPMorganChase's employees are located in 66 countries, with 59 58 % of the Firm's employees located in the U.S. The following table presents the distribution of the Firm's global workforce by region and by line of business (" LOB ") and Corporate as of December 31, 2024 2025 :

The Firm provides market-competitive compensation and benefits programs. JPMorganChase's compensation philosophy includes guiding principles that drive compensation-related decisions across the Firm, and includes: including pay-for-performance practices that are designed to attract and retain top talent ; responsiveness , to be responsive to and alignment aligned with shareholder interests ; , and reinforcement of to reinforce the Firm's culture and Business Principles that guide how the Firm does business . The Firm follows a disciplined and balanced compensation framework, including the integration of risk, controls and conduct considerations. The Firm's compensation review processes seek approach is designed to ensure that pay the Firm's employees are paid fairly and competitively for the work they do.

J.P. Morgan Securities LLC is also registered with the CFTC as a futures commission merchant and is a member of the National Futures Association .

(b) Other includes American Indian or Alaskan Alaska Native, Native Hawaiian or Other Pacific Islander, and two Two or more races / ethnicities More Races .

The goal of JPMorganChase's recruitment efforts , which leverage a variety of channels to source from a broad pool of candidates, is to attract and hire highly qualified candidates talent in all roles and at all career levels. The Firm's hiring practices focus on the skills and qualifications of a candidate relative to the job requirements.

In the U.K., the Firm operates a retail bank through J.P. Morgan Europe Limited (" JPMEL ") and provides retail investment management services through Nutmeg Saving and Investment J.P. Morgan Personal Investing Limited (" Nutmeg JPM PI "). JPMEL is regulated by the PRA, and both JPMEL and Nutmeg JPM PI are regulated by the FCA with respect to their conduct of financial services in the U.K., including obligations relating to the fair treatment of customers. JPMEL is also regulated by the U.K. Payment Systems Regulator (" PSR ") with respect to its operation and use of payment systems. In March 2025, the U.K. government announced that the functions of the PSR will be consolidated into the FCA. In addition, the retail businesses of JPMEL and Nutmeg JPM PI are subject to U.K. consumer-protection legislation.

(a) Based on EEO metrics. Presented as a percentage of the respective populations who self-identified race / ethnicity, which was 97% and 95% of the Firm's total U.S. - based employees and U.S. - based senior level employees, respectively, and all members of the Operating Committee and the Board of Directors. Information for the Operating Committee includes one member who is based outside of the U.S.

Policymakers in the U.K. and the EU have continued continue to implement and enhance refine sustainability-related initiatives and disclosure requirements. The Corporate Sustainability Reporting Directive (" CSRD ") will replace replaced and significantly expand expanded the scope and content of certain EU ESG reporting requirements, with phased-in requirements expected to start with that started in fiscal year 2024. The implementation of CSRD into local law has been delayed in a number of member states, including in Germany, and the Firm continues to monitor developments and potential impacts. In addition, in July 2024, the EU enacted the Corporate Sustainability Due Diligence Directive (" CSDDD "), which provides for phased-in requirements starting in 2027 2029 . The CSDDD sets mandatory due diligence obligations for companies to address actual and potential human rights violations and environmental adverse impacts stemming from their own operations and business relationships, including the activities of certain companies with which they have established business relationships and also requires the adoption of company-specific climate-related transition plans . Both the CSRD and CSDDD will impact certain of the Firm's EU and non-EU entities.

JPMorganChase believes that its long-term growth and success depend on its ability to identify, attract, develop , retain and retain engage talented employees and foster an inclusive work environment. The information provided below relates to JPMorganChase's full-time and part-time employees and does not include the Firm's contractors.

The Bank Secrecy Act (" BSA ") requires all financial institutions, including banks and securities broker-dealers, to establish a risk-based system of internal controls reasonably designed to prevent money laundering and the financing of terrorism. The BSA includes a variety of record-keeping and reporting requirements, as well as due diligence / know-your-customer documentation requirements . Similar requirements exist in other jurisdictions in which the Firm operates . The Firm is also subject to the regulations and economic sanctions programs administered and enforced by the U.S. Treasury's Office of Foreign Assets Control (" OFAC ") and EU and U.K. authorities which target entities or individuals that are, or are located in countries that are, involved in activities including terrorism, hostilities, embezzlement or human rights violations. The Firm is also subject to economic sanctions laws, rules and regulations in other jurisdictions in which it operates, including those that conflict with or prohibit a firm such as JPMorganChase from complying with certain laws, rules and regulations to which it is otherwise subject.

In the EU and U.K., regulators have finalized the rules implementing their Basel III frameworks. The new rules became effective in the EU beginning January 1, 2025, with market risk aspects expected to be delayed until January 1, 2026 2027 . In January 2025, the PRA announced that it intends to delay the implementation of the new rules in the U.K. to January 1, 2027. There are certain transitional arrangements applicable in both the EU and U.K. until 2032 and 2030, respectively.

The following table presents information based on voluntary self-identifications by the Firm's employees, including members of the Firm's Operating Committee and other senior level employees, as well as members of the Board of Directors, as of December 31, 2024 2025 . Information on race / ethnicity of employees is categorized based on Equal Employment Opportunity (" EEO ") classifications and is presented for U.S. employees who self-identified, and information on gender is presented for global employees who self-identified. Information on race / ethnicity and gender for members of the Operating Committee and the Board of Directors reflects all such members. Information on LGBTQ + and veteran statuses is based on all U.S. employees, and all members of the Operating Committee and the Board of Directors. Information on disability status is based on all U.S. employees and all members of the Operating Committee.

The Firm's compensation practices are subject to oversight by the Federal Reserve, as well as other agencies. The Federal Reserve has jointly issued guidance with the FDIC and the OCC that is designed to ensure that incentive compensation paid by banking organizations does not encourage imprudent risk-taking that threatens the organizations' safety and soundness. The Financial Stability Board (" FSB ") has also established standards covering compensation principles for banks. The Firm's compensation practices are also subject to regulation and oversight by regulators in other jurisdictions, notably the Fifth Capital Requirements Directive (" CRD V "), as implemented in the EU and as largely adopted in the U.K , which includes compensation-related provisions. The European Banking Authority has instituted guidelines on compensation policies including under CRD V which in certain countries (such as Germany) are implemented or supplemented by local regulations or guidelines. The U.K. regulators have also instituted regulations and guidelines on compensation policies, which diverge in certain areas from EU rules. The Firm expects that the implementation of regulatory guidelines regarding compensation in the U.S. and other countries will continue to evolve, and may affect the manner in which the Firm structures its compensation programs and practices.

JPMorganChase offers extensive benefits and wellness packages to support employees and their families, which vary depending on location and include healthcare coverage, retirement benefits, life and disability insurance, access to on-site health and wellness centers, counseling and resources related to mental health, time away policies, child care access and support, tuition assistance, and financial coaching education .

JPMorganChase and its subsidiaries and affiliates operate in highly competitive environments. Competitors include other banks, brokerage firms, investment banking companies, merchant banks, hedge funds, commodity trading companies, private equity firms, insurance companies, mutual fund companies, investment managers, credit card companies, mortgage banking companies, trust companies, securities processing companies, automobile financing companies, leasing companies, e-commerce and other internet-based companies, digital asset and other financial technology companies, and other companies engaged in providing similar and new products and services. The Firm's businesses generally compete on the basis of the quality and variety of the Firm's products and services, transaction execution, innovation, reputation and price. Competition also varies based on the types of clients, customers, industries and geographies served. With respect to some of its geographies and products, JPMorganChase competes globally; with respect to others, the Firm competes on a national or regional basis. New competitors in the financial services industry continue to emerge, including firms that offer products and services solely through the internet and non-financial companies that offer products and services that disintermediate traditional banking products and services offered by financial services firms such as JPMorganChase.

The Firm is subject to comprehensive regulation of its derivatives businesses. In the U.S., JPMorgan Chase Bank, N.A., J.P. Morgan Securities LLC and J.P. Morgan Securities plc are registered with the CFTC as " swap dealers . " . In addition, JPMorgan Chase Bank, N.A. and J.P. Morgan Securities LLC are registered with the SEC as " security-based swap dealers . " . As a result, these entities are subject to a comprehensive regulatory framework applicable to their swap or security-based swap activities, including capital requirements, rules requiring the collateralization of uncleared swaps and security-based swaps, rules regarding segregation of counterparty collateral, business conduct and documentation standards, rules requiring the central clearing of standardized over-the-counter (" OTC ") derivatives, requirements that certain standardized OTC swaps be traded on regulated trading venues, record-keeping and reporting obligations, and anti-fraud and anti-manipulation requirements. Similar requirements have also been established in the European Union (" EU ") under the European Market Infrastructure Regulation (" EMIR ") and the Markets in Financial Instruments Directive (" MiFID II "), as well as in the U.K. and other jurisdictions around the world.

JPMorganChase's operations could also be impaired if the measures taken by that it or by governmental authorities takes to protect the health and safety of its employees , or actions taken by governmental authorities or other external parties on which it relies are ineffective , or if any external party on which JPMorganChase relies fails to take appropriate and effective actions to protect the health and safety of its employees .

JPMorganChase operates in a highly competitive environment in which it must evolve and constantly adapt to changes in financial regulation, technological advances , increased public scrutiny and changes in economic conditions. JPMorganChase expects that competition in the U.S. and global financial services industry will continue remain intense, with new competitors in the financial services industry continuing to be intense emerge . Competitors include For example, technological advances and the growth of e-commerce have made it possible for non-depository institutions to offer products and services that traditionally were banking products. These advances have also allowed financial institutions and other companies to provide electronic and internet-based financial solutions, including :

Legislative and regulatory Regulatory initiatives outside the U.S. have required and could in the future require JPMorganChase to make significant modifications to significantly modify its operations and or legal entity structure in the relevant countries or regions places in order to comply with which those initiatives are implemented, such as requirements . These include laws, rules and regulations that have been adopted or proposed, as well as regulatory expectations, relating to for :

JPMorganChase's earnings from its consumer businesses could also be materially and adversely affected by governmental policies and actions that affect consumers, including :

• the possibility that significant portions of JPMorganChase's workforce are unable to work effectively, including because of illness, quarantines, shelter-in-place arrangements, government actions due to health emergencies or other restrictions in connection with health emergencies, the spread of infectious diseases, epidemics or pandemics, or due to extraordinary events beyond JPMorganChase's control such as natural disasters or an outbreak or escalation of hostilities

A reduction in JPMorganChase's liquidity may could be caused by events over which it has little or no beyond its control. For example, JPMorganChase's funding costs could increase and its access to traditional sources of liquidity could be limited during periods of market stress, low investor confidence and or significant market illiquidity could result in higher funding costs for JPMorganChase and could limit its access to some of its traditional sources of liquidity .

• new economic sanctions or other regulatory requirements , including those that introduce exceptional compliance challenges for multinational companies such as JPMorganChase .

• price, capital or exchange controls , including imposition of punitive transfer and convertibility restrictions or forced currency exchange

• regulatory " penalties " means fines, penalties or other sanctions imposed by governmental authorities.

• Operational risks, including risks associated with JPMorganChase's dependence on its operational systems and its employees, as well as the systems and employees of third acquired businesses and external parties , market participants and service providers; the potential negative effects of failing to identify and address operational risks related to the failure of internal or external operational systems, the introduction of or changes to products, services and delivery platforms or the adoption of new technologies; risks related to safeguarding personal information ; the harm that could be caused by a successful cyber attack affecting JPMorganChase or by other extraordinary events; the adverse effects of failing to identify and address operational risks associated with the introduction of or changes to products, services and delivery platforms or technologies, as well as risks related to data management processes; risks related to safeguarding personal information; potential adverse effects of failing to comply with applicable standards for the oversight of vendors and other service providers; and risks associated with JPMorganChase's risk management framework and control environment, its models and estimations and associated judgments used in its stress testing and financial statements, and controls over disclosure and financial reporting ; and potential adverse effects of failing to comply with applicable standards for the oversight of vendors and other service providers .

• Capital risks, including the risk that any failure by or inability of JPMorganChase to maintain the required level and composition of capital, or unfavorable changes in applicable capital requirements, could limit JPMorganChase's ability to distribute capital to shareholders or to support its business activities could be limited if it does not satisfy applicable regulatory capital requirements .

• cyber attacks can originate from a wide variety of sources, including JPMorganChase's own employees, cyber-criminals, hacktivists, groups linked to terrorist organizations or hostile nation-states certain threat actors that are well-resourced and can sustain malicious activities for extended periods, or third parties whose objective is to disrupt the operations of financial institutions more generally and

• other negative outcomes caused by human error or misconduct by an employee of JPMorganChase or of another party on which JPMorganChase's businesses or operations rely.

Federal Reserve rules require that JPMorgan Chase & Co. (the " Parent Company ") to maintain minimum levels of unsecured external long-term debt and other loss-absorbing capacity with specific terms (" eligible LTD ") for purposes of recapitalizing to recapitalize JPMorganChase's operating subsidiaries if the Parent Company were to enter into a resolution either : in a bankruptcy proceeding under Chapter 11 of the U.S. Bankruptcy Code, or in a receivership administered by the FDIC under Title II of the Dodd-Frank Act (" Title II "). If the Parent Company were to enter into a resolution, holders of eligible LTD, other unsecured creditors and holders of equity securities of the Parent Company will absorb the losses of the Parent Company and its subsidiaries.

• Conduct risks, including the negative impact that can could result from the actions or misconduct of JPMorganChase's employees , including any failure of employees to conduct themselves in accordance with JPMorganChase's expectations, policies and practices .

JPMorganChase's operations compliance risk and financial results can operating costs could be negatively impacted higher in jurisdictions with less predictable legal , regulatory and regulatory judicial frameworks.

• harm its reputation cyber-criminals , or

• natural disasters or , severe weather conditions or the effects of climate change

• cause reputational harm its reputation .

• technology companies tokenized securities , and

JPMorganChase's consumer businesses can could also be harmed by an excessive expansion of consumer credit by bank or non-bank competitors. Heightened competition for certain types of consumer loans could prompt industry-wide reactions such as lead to significant price reductions in the pricing or margins of for those loans or the making of providing loans to less-creditworthy borrowers. If large numbers of consumers subsequently default on their loans, whether due to weak credit profiles, an economic downturn or other factors, this could impair their ability to repay obligations owed to JPMorganChase and result in an increase in the allowance for credit losses and higher charge-offs and other credit-related losses . More broadly, widespread defaults on consumer debt could lead to recessionary conditions in the U.S. economy, and JPMorganChase's consumer businesses may earn lower revenues in such an environment.

• technological advances in such as artificial intelligence , such as the use of machine learning, generative artificial intelligence (" AI ") and quantum computing by that may enable malicious actors to develop more advanced social engineering attacks, including targeted phishing attacks , and

• events arising from local or larger-scale civil or political unrest, any outbreak or escalation of civil unrest, hostilities, or terrorist acts or other violence or criminal activity .

Damage to JPMorganChase's reputation could harm negatively affect its businesses business, results and prospects .

When interest rates are high or increasing, JPMorganChase can may generally be expected to earn higher net interest income when interest rates are high or increasing . However, higher interest rates can could also lead to result in :

• limit the products and services that it offers, or change the prices that it charges for its those products and services , or

JPMorganChase expects that the following trends will continue :

JPMorganChase is named as a defendant or is otherwise involved in many civil and governmental legal proceedings, including class actions, derivative actions and other litigation or disputes with third parties, as well as investigations and enforcement actions by U.S. and non-U.S. governmental authorities, including criminal proceedings. Actions currently pending against JPMorganChase may could result in judgments, settlements , fines, or penalties or other sanctions adverse to JPMorganChase . Any , and any such resolution of these matters legal proceedings could materially and adversely affect JPMorganChase's business, financial condition or results of operations, or cause serious reputational harm. As a participant In addition, the extent of JPMorganChase's exposure to legal matters is unpredictable and could, in some cases, exceed the financial services industry, it is likely amount of reserves that JPMorganChase will continue to experience a high level of litigation and regulatory and government investigations related to its businesses and operations has established for those matters .

• People risks, including the criticality of attracting and retaining qualified employees ; and the potential adverse effects of unfavorable changes in immigration or travel policies on JPMorganChase's workforce .

JPMorganChase closely monitors and manages, to the extent that it is able, factors that could influence its has experienced credit ratings . However downgrades in the past , and there is no assurance that JPMorganChase's credit ratings will not be downgraded in the future. Furthermore, any such downgrade could occur at times a time of broader market instability when , limiting JPMorganChase's options for responding to events may be more limited and general investor confidence is low .

• Liquidity risks, including the risk that JPMorganChase's liquidity ability to operate could be impaired by market-wide illiquidity or disruption, unforeseen constrained liquidity or capital requirements, the inability to sell assets, default by a significant market participant, unanticipated outflows of cash or collateral, or lack of market or customer confidence in JPMorganChase ; the dependence of JPMorgan Chase & Co. on the cash flows of its subsidiaries for funding ; and the potential adverse effects that any downgrade in any downgrades of JPMorganChase's credit ratings may could have on its liquidity and cost of funding.

• business activities, such as those related to including managing JPMorganChase's market-making positions and liquidity and capital levels , including reliance on timely data for informed decision-making

As part of its clearing services activities, JPMorganChase is exposed to the risk of nonperformance by its clients, which it seeks to mitigate by requiring clients to provide adequate collateral. JPMorganChase is also exposed to intra-day credit risk of its clients in connection with providing cash management, clearing, custodial and other transaction services to those clients . If such a client for which JPMorganChase provides these services becomes bankrupt or insolvent, JPMorganChase may incur losses, become involved in disputes and litigation with one or more CCPs, the client's bankruptcy estate and other creditors, or be subject to regulatory investigations. All of the foregoing events can increase JPMorganChase's operational and litigation costs, and JPMorganChase may suffer losses to the extent that any collateral that it has received is insufficient to cover those losses. could:

• appropriately assess and monitor principal investments made to enhance or accelerate JPMorganChase's business strategies

There can be no assurance JPMorganChase is subject to complex global financial reporting obligations that require continuous enhancements to disclosures in its financial statements and regulatory reports. JPMorganChase's disclosure and financial reporting controls and procedures will may not always be effective in every circumstance , or that and a material weakness or significant deficiency in internal control over financial reporting will not could occur. Any such significant lapse, weakness or deficiency could result in inaccurate financial reporting which, in turn, could:

• greater exposure in litigation, and Furthermore, government officials in the U.S. and other countries globally have demonstrated a willingness to bring increasingly brought criminal actions against financial institutions and have required that those institutions to plead guilty to criminal offenses or admit other wrongdoing in connection with resolving regulatory investigations or enforcement actions by governmental authorities . Resolutions of this type can These resolutions could have significant collateral consequences for the subject financial institution, including:

JPMorganChase routinely executes transactions with clients and counterparties such as corporations, financial institutions, asset managers, hedge funds, securities exchanges and government entities within and outside the U.S globally . Many of these transactions expose JPMorganChase to the credit risk of its clients and counterparties, and can involve JPMorganChase could incur losses and become involved in disputes and litigation if in connection with a default by a client or counterparty defaults . JPMorganChase can could also be subject to face losses or liability where if a financial institution that it has appointed to provide providing custodial services for client assets or funds becomes insolvent as a result of fraud or the failure to abide by existing laws and obligations, or where clients are unable to access assets held by JPMorganChase as custodian due to governmental actions or other factors .

• significant disruption of or loss of access to JPMorganChase's operations operational systems and those of its clients, customers and counterparties , including losing access to operational systems

JPMorganChase's performance and competitive position could be materially and adversely affected if it is unable to attract or retain qualified employees for its workforce or to devise and execute effective effectively manage succession planning for key leadership roles, such as the Chief Executive Officer, members of the Operating Committee and other senior leaders. In addition, restrictive immigration or travel policies in the U.S. and other countries could inhibit JPMorganChase's ability to attract and retain qualified employees, or necessitate adjustments to operating models that could reduce operational efficiency or increase costs.

Furthermore, borrowers may under-maintain or misrepresent the condition or existence of collateral, or at liquidation, collateral could be subject to competing claims, limiting JPMorganChase's ability to recover amounts owed, or disputes with counterparties concerning the valuation of collateral may could increase in times of during significant market stress, volatility or illiquidity , and . JPMorganChase could suffer losses during in these periods situations if it is unable to realize the fair value of collateral or to manage declines in the value of collateral.

All of these are The above factors could be affected by global economic, market and political events and conditions, including the regulatory environment, monetary policies , trade policies, and actions taken by central banks or other governmental authorities , as well as by the regulatory environment .

• maintain higher levels of capital and liquidity , or absorb increased capital and liquidity costs

• incur higher operational , compliance, capital and compliance liquidity costs

When resolving an investigation or enforcement action by a governmental authority, the subject financial institution typically must satisfy new or enhanced regulatory requirements or restrictions. If JPMorganChase fails to meet the requirements of any such resolution of a governmental investigation or enforcement action , or to maintain risk and control processes that meet the heightened standards and expectations of its regulators, it could be required to, among other things:

• enter into further resolutions of investigations or enforcement actions

• monetary policies and actions taken by the Federal Reserve and other central banks or governmental authorities , including changes in interest rate levels and any sustained large-scale asset purchases or , any suspension or reversal of those actions , and changes in interest rate levels

• investor, consumer and business sentiment , or confidence in the financial markets

Unfavorable market and economic conditions can have an adverse effect on could adversely affect JPMorganChase's wholesale businesses.

• financial incur losses

• distributed denial-of-service attacks intended to disrupt , sabotage or degrade service on JPMorganChase's systems and websites, including those that provide online banking and other services ,

• expose JPMorganChase to litigation, regulatory investigations by governmental authorities or regulatory fines penalties , penalties or other sanctions

• greater scrutiny from governmental authorities or regulatory bodies, or further criticism from politicians and other members of the public , including in the form of investigations by governmental or regulatory investigations authorities or litigation

The Parent Company, JPMorgan Chase & Co. , is a holding company that holds the stock of JPMorgan Chase Bank, N.A. and an intermediate holding company, JPMorgan Chase Holdings LLC (the " IHC "). The IHC in turn generally holds In addition to holding the stock of JPMorganChase's other JPMorganChase subsidiaries other than JPMorgan Chase Bank , N.A. and its subsidiaries. The the IHC also owns other assets and provides intercompany lending to the Parent Company. The Parent Company must contribute to the IHC substantially all the net proceeds that it receives from securities issuances.

JPMorganChase's business and operations rely on its ability, and the ability of key external parties, to maintain appropriately-staffed workforces, appropriate staffing and on the competence, trustworthiness, health and safety of employees.

JPMorganChase's growth prospects also depend on management's ability to develop and execute effective business plans to address these strategic priorities, both in the over near term and over longer time horizons. Management's effectiveness in this regard will affect JPMorganChase's ability to develop its resources, control expenses and return capital to shareholders. Each of these objectives could be adversely affected by any failure by management to:

• require JPMorganChase to structure its businesses, operations and systems in less efficient or more costly ways , including with respect to the local storage and processing of data .

• the financial services regulatory and supervisory framework in a particular jurisdiction may favor financial institutions that are based in that jurisdiction locally-based firms .

• a higher increased volume and complexity of cyber attacks against the backdrop during periods of heightened geopolitical tensions , and

• developing or maintaining models and other analytical and judgment-based estimations , including those that use machine learning or artificial intelligence

• a significant operational breakdown or failure, theft, fraud or other unlawful conduct by employees , or

• power utility or telecommunications failures , telecommunications or internet outages , or shutdowns of mass transit

The financial or operational failure of a significant market participant, such as a major financial institution or a CCP, or concerns about the creditworthiness or operational sustainability of such a one or more market participant or its ability to fulfill its obligations participants , can could cause substantial and cascading disruption within the financial markets, including in circumstances where coordinated action by multiple other market participants is required to address the failure or disruption problem . JPMorganChase's businesses could be significantly disrupted by such an event, particularly especially if it leads to other market participants incurring significant losses, experiencing liquidity issues or defaulting, and JPMorganChase is likely to have has significant interrelationships with, and credit exposure to, such a significant the faltering market participant , or if the event causes other market participants to default, incur significant losses or experience liquidity issues .

• refrain from engaging in forgoing business opportunities that it might otherwise pursue , or

• the continuing migration of technology systems of customer and client-facing services , including digital banking and other internet-based products, to the cloud, and modernization of those services

As a participant in the financial services industry, it is likely that JPMorganChase will continue to experience a high level of litigation and investigations by governmental authorities related to its businesses and operations. In addition, JPMorganChase could become subject to a significant regulatory investigation by governmental authorities and be unable to disclose specific information concerning that investigation to the public if such a disclosure would violate JPMorganChase's obligations under applicable rules and regulations law to maintain the confidentiality of confidential supervisory information , even if the resolution of that investigation could have a material adverse effect on JPMorganChase's business, operations, results or financial condition.

Furthermore, any expenses that JPMorganChase may incur costs in connection with disposing of assets, including excess properties, premises and facilities, and those costs or exiting businesses or products could be material to its results of operations.

• JPMorganChase's ability to effectively maintain challenges in maintaining and upgrade upgrading systems and infrastructure can become more challenging as the speed, frequency, volume, interconnectivity and complexity of transactions and other information flows continue to increase

Economic Adverse economic and market events and conditions can materially could negatively affect JPMorganChase's businesses results of operations and investment and market-making positions.

Because governmental Governmental policies in one jurisdiction may differ or conflict with those in other across jurisdictions, JPMorganChase may face which could lead to negative consequences for JPMorganChase regardless of the course of action that it takes or elects not to take, including:

• the imposition of fines penalties , penalties or other sanctions

• larger firms such as JPMorganChase are often subject to face more stringent supervision , and regulation and regulatory scrutiny

• Strategic risks, including the damage to JPMorganChase's competitive standing and results that could occur if management fails to develop and execute effective result from ineffective business strategies; risks associated with the significant and increasing competition that JPMorganChase faces; and the potential adverse impacts of climate change on the effectiveness JPMorganChase's business and operations and those of JPMorganChase's existing business strategies with respect to its operations, clients and customers.

• inflation, deflation , recession or recession employment

• the distribution of personal and household income distribution

• attempts by third parties to defraud JPMorganChase or and its clients and customers , which continue to increase, evolve and become more complex, and as well as increased volumes of these attempts during periods of market disruption or economic uncertainty , these attempts can be expected to further increase in volume

• appropriately address concerns of clients, customers, investors, employees , regulators and other stakeholders , including with respect to climate and other ESG matters

• disruption of global trade , including retaliatory countermeasures

• the termination of licenses or other permissions required to operate in the local market relevant jurisdiction, or the suspension of business relationships with governmental bodies entities, leading to lost revenue .

• deliver appropriate standards of service and quality, and to treat clients and customers fairly and with the appropriate standard of care

If The values and growth prospects of JPMorganChase's businesses could suffer and its earnings could decline if management makes strategic choices about these strategies and goals that prove to be incorrect, are based on incomplete, inaccurate or fraudulent information, do not accurately assess the competitive landscape and industry trends, or fail to address changing regulatory and market environments or the expectations of clients, customers, investors, employees and other stakeholders , then the franchise values and growth prospects of JPMorganChase's businesses may suffer and its earnings could decline .

• reduce reducing the liquidity that it can provide provides through its market-making activities

• increase concerns about whether the U.S. government will be funded , and will be able to service its outstanding debt serviced, at any particular time

Transactions with government governmental entities , including national, state, provincial, municipal and local authorities, can expose JPMorganChase to enhanced sovereign, credit, operational , legal and reputation risks. Government Governmental entities may , among other things, claim that actions taken by government officials were beyond the legal authority of those officials or repudiate transactions authorized by a previous incumbent government. These types of actions have in the past caused, and could in the future cause, JPMorganChase to suffer losses or hamper its ability to conduct business in the relevant jurisdiction. In addition, JPMorganChase could incur losses if applicable law limits its ability to resolve disputes and litigation when a client in that jurisdiction defaults or otherwise fails to make agreed-upon payments.

A reduction downgrade in JPMorganChase's credit ratings could curtail JPMorganChase's its business activities and reduce its profitability in a number of ways , including by :

• dispose disposing of certain assets, and do doing so at disadvantageous times or prices that are disadvantageous

• failure to detect weaknesses or shortcomings in operational systems that may not be detected in a timely manner

• the possibility that erroneous execution of funds transfers, capital markets trades or other transactions are executed erroneously

• pay incur additional regulatory penalties or enter into judgments, or

• other market risks that may not have been appropriately taken into account in the development adequately considered when developing , structuring or pricing of a financial instrument.

• Legal and Regulatory risks, including the impact that applicable laws, rules of extensive supervision and regulations in the highly-regulated and supervised financial services industry regulation , as well as changes to or in the application, interpretation or enforcement of those laws applicable law or executive branch actions , rules and regulations, can have on JPMorganChase's business and operations , including JPMorganChase incurring additional costs associated with assessments, levies or other governmental charges ; the ways in which differences in financial services regulation and supervision regulatory implementation in different jurisdictions or with respect to certain competitors can could negatively impact JPMorganChase's business; the ways in which governmental policies that discourage or penalize business relationships with clients in certain industries, or require specific business practices, can could negatively affect JPMorganChase's businesses; the penalties and collateral consequences, and higher compliance and operational costs, other repercussions that JPMorganChase may incur could face when resolving a regulatory investigation litigation or investigations by governmental authorities ; the ways in which less predictable legal and regulatory frameworks in certain jurisdictions can could negatively impact JPMorganChase's operations and financial results; and the losses that security holders and other unsecured creditors will absorb if JPMorganChase were to enter into a resolution.

• the technologies that it adopts or in which it invests, which may include new and currently unproven technologies, and

• the emerging need for more-skilled workers in an evolving labor and workplace environment, including due to changes in technology and

• actions by or at the direction of government governmental authorities or officials or agencies

• significant exposure to litigation and regulatory fines, penalties or other sanctions , and

• manipulate or destroy data

• regulatory intervention , or

• expose it to litigation or regulatory fines, penalties or other sanctions , and

Failure to effectively manage potential conflicts of interest or to satisfy fiduciary obligations can could result in litigation and enforcement actions , as well as damage JPMorganChase's reputation and cause reputational harm .

As a result of these arrangements, the ability of the Parent Company to make various payments is generally dependent on its receiving dividends from JPMorgan Chase Bank, N.A. and dividends and borrowings from the IHC . These limitations could affect the Parent Company's ability in order to:

Any failure by or inability of JPMorganChase to maintain the required level and composition of capital, any decision by JPMorgan Chase to use its regulatory buffers allowing capital ratios to decline below regulatory requirements or unfavorable changes in applicable capital requirements, could have an adverse impact on JPMorganChase's shareholders , such as by :

Similarly, challenging economic conditions that affect a particular industry or geographic area could lead to concerns about the credit quality of counterparties, borrowers or other obligors not only in that particular industry or geography but also in related or dependent industries, wherever located. These conditions could also heighten concerns about the ability of customers of JPMorganChase's consumer businesses who live in those areas or work in those affected industries or related or dependent industries to meet their obligations to JPMorganChase . JPMorganChase regularly monitors various segments of its credit and market risk exposures to assess the potential risks of concentration or contagion, but its ability to diversify or hedge its exposure against those risks may be limited.

The ability of JPMorgan Chase Bank, N.A. and the IHC to make payments to the Parent Company is also limited. JPMorgan Chase Bank, N.A. is subject to regulatory restrictions on its dividend distributions, as well as capital adequacy and requirements , such as relating to the Supplementary Leverage Ratio (" SLR "), and liquidity requirements and other regulatory restrictions on its ability to make payments dividends that it can pay to the Parent Company . The , and the IHC is prohibited from paying dividends or extending credit to the Parent Company if certain capital or liquidity thresholds are breached, or if limits are otherwise imposed by the Parent Company's management or Board of Directors.

• interruption of service from third-party service providers , including financial market infrastructures

• failure or perceived failure to comply with laws, rules or regulations by JPMorganChase or its clients, customers or counterparties of JPMorganChase , counterparties or by other parties, including newly-acquired businesses, companies in which JPMorganChase has made principal investments, parties to joint ventures with JPMorganChase , and vendors with which JPMorganChase does business . , to comply with applicable law

JPMorganChase may could suffer losses if the value of collateral declines in stressed market conditions .

A default by, or the financial or operational failure of, If a CCP through which JPMorganChase executes contracts suffers a financial or operational failure or otherwise defaults, JPMorganChase would require JPMorganChase be required to replace those the relevant contracts, thereby increasing which would increase its operational costs and potentially resulting result in losses. In addition, JPMorganChase can be exposed to losses if a member of a CCP in which JPMorganChase is also a member defaults on its obligations to the CCP because of , JPMorganChase could incur losses due to requirements that each member of the CCP absorb a portion of those losses. Furthermore, JPMorganChase can could be subject to bearing its share of non-default losses incurred by a CCP, including losses from custodial, settlement or investment activities or due to cyber or other security breaches.

• handle or use confidential information of customers or clients appropriately and in compliance with applicable data protection and privacy laws, rules and regulations law .

• the state of the U.S. and global economies .

The value of securities, derivatives and other financial instruments which that JPMorganChase owns or in which it makes markets can could be materially affected by market fluctuations. Market volatility, illiquid market conditions and other disruptions fluctuations in the financial markets may could make it extremely difficult to value certain financial instruments. Subsequent valuations of financial instruments in future periods, in light of factors then prevailing, may could result in significant changes in the value of these instruments. In addition, at the time when JPMorganChase disposes of any disposition of these a financial instruments instrument , the price that JPMorganChase ultimately it realizes will depend on the demand and liquidity in the market at the time of disposition, and that time and may price could be materially lower than their the current fair value of the instrument . Any of these factors could cause a decline in the value of financial instruments that JPMorganChase owns or in which it makes markets, which may could have an adverse effect on JPMorganChase's its results of operations. Furthermore, JPMorganChase's hedging and other risk management strategies may not always be effective, and it could incur significant losses, if extreme market events were to occur.

These types of differences Differences , inconsistencies and conflicts in applicable law related to financial services regulation have required and could in the future require JPMorganChase to:

• an outbreak outbreaks or escalation escalations of hostilities, or other geopolitical instabilities

JPMorganChase's businesses may business and operations could be negatively impacted affected by governmental policies that either discourage or penalize doing business with certain industries or that require specific business practices.

When credit spreads widen, it becomes more expensive for JPMorganChase to borrow. JPMorganChase's credit spreads may could widen or narrow not only in response due to events and circumstances that are specific to JPMorganChase but also as a result of general economic and geopolitical events and conditions. Changes in JPMorganChase's credit spreads will could negatively affect , positively or negatively, JPMorganChase's its earnings on certain liabilities, such as derivatives, that are recorded at fair value.

• levels and volatility of interest rates, credit spreads and or market prices for of currencies, debt and equity securities and commodities, as well as and the duration of any such changes , and

• financial loss to JPMorganChase outside of cyber insurance policy coverage, or losses to its clients, customers, counterparties or employees

• governmental authorities will be more likely to pursue bring formal enforcement actions and resolutions against JPMorganChase to the extent that if it has previously been subject to other governmental investigations or enforcement actions by governmental authorities .

A failure or perceived failure to appropriately address conflicts of interest or fiduciary obligations could result in customer dissatisfaction, litigation and regulatory fines penalties , penalties or other sanctions, and as well as heightened regulatory scrutiny and enforcement actions, all of which can could lead to lost revenue and , higher operating costs and cause serious reputational harm to JPMorganChase's reputation .

• increased regulatory and supervisory scrutiny

• the establishment of establishing locally-based intermediate holding companies or operating subsidiaries

JPMorganChase's businesses and results of operations may could be adversely affected by actions or initiatives by national, state or local governmental authorities or officials that:

• unexpected loss of deposits or higher than anticipated draws on lending-related commitments, and

• address obligations under its resolution plan, or

• increased operational costs , or

• provide fiduciary products or services in accordance with the applicable legal and regulatory standards law , or

An economic downturn or sustained changes in consumer behavior that results result in shifts in consumer and business spending could also have a negative impact on certain of JPMorganChase's wholesale clients, and thereby diminish JPMorganChase's earnings from its wholesale operations. For example, the businesses of certain of JPMorganChase's wholesale clients are dependent that rely on consistent streams of rental income from commercial real estate properties , including offices, which are owned or being built could be negatively affected by those clients. Sustained sustained adverse economic conditions or circumstances (such as hybrid work models could result in reductions in the rental cash flows ) that owners or developers receive from their tenants which, in turn, reduce tenancies. These types of developments could depress the property values of the properties , impair the ability of borrowers clients to service or refinance their commercial real estate loans and lead to an increase in foreclosures. These consequences could result in JPMorganChase experiencing increases an increase in the allowance for credit losses, higher delinquencies, defaults and charge-offs within its commercial real estate loan portfolio and incurring higher costs for servicing a larger volume of delinquent loans in that portfolio. An increase in foreclosures could also result in higher operational risk associated with JPMorganChase owning and managing real property, and any inadequacy in governance or control over the foreclosed properties could result in regulatory scrutiny and reputational harm.

An adverse change in market conditions in particular segments of the economy , such as a sudden and severe downturn in oil and gas prices or an increase in commodity prices, severe declines in commercial real estate values , or sustained changes in consumer behavior that affect specific economic sectors, could have a material adverse effect on clients of JPMorganChase whose operations or financial condition are directly or indirectly dependent on significantly impacted by the health or stability of those market segments or economic sectors, as well as clients that are engaged in related businesses. JPMorganChase could incur credit losses on its loans and other commitments to clients that operate in, or are dependent on significantly impacted by , any sector of the economy that is or comes under stress.

Some of the models and other analytical and judgment-based estimations used by JPMorganChase in for managing risks are subject to require regulatory review by, and require the approval of, JPMorganChase's regulators. These reviews are required before JPMorganChase may use those the models and estimations for calculating market risk RWA, credit risk RWA and operational risk RWA under Basel III. If JPMorganChase's models or and estimations are not approved by its regulators, it may could be subject to higher capital charges, which could adversely affect its financial results or limit the its ability to expand its businesses.

JPMorganChase can JPMorganChase's businesses could be negatively adversely affected if it fails to identify and address operational risks associated with the introduction of or changes to products, services and , delivery platforms or the adoption of new technologies.

Although not every form of disruption can be anticipated or defended against, JPMorganChase strives for resiliency or recovery in a range of scenarios in the event of a disruption, including due to the occurrence of an extraordinary event beyond its control. There can be no assurance that JPMorganChase's Firmwide resiliency framework will fully mitigate all potential resiliency risks to JPMorganChase, its clients and customers , and customers and the third parties , including service providers with which it does business, or that its the resiliency framework will be adequate able to anticipate or defend against every form of disruption or adequately address the effects of simultaneous occurrences of multiple or extended disruption events prolonged disruptions . In addition, JPMorganChase's ability to respond effectively to a disruption event could be hampered to the extent that the members of its workforce, physical assets, systems and other support infrastructure, or those of its third-party service providers, that are needed to address the event are geographically dispersed, or conversely, if such an event were to occur in an area in which they are concentrated. Further, should extraordinary events or the factors that cause or contribute to those events become more chronic, the disruptive effects of those events on JPMorganChase's business and operations, and on its clients, customers, counterparties and employees, could become more significant and long-lasting persistent .

• higher litigation costs and penalties, or Any of the foregoing consequences could materially and adversely affect JPMorganChase's businesses and results of operations.

During periods of market stress or illiquidity, JPMorganChase's credit risk may be further increased could increase when:

JPMorganChase can could be negatively affected by adverse changes in the financial condition of clients, counterparties, custodians CCPs and CCPs other market participants .

JPMorganChase may experience could incur unexpected losses if models , estimates or judgments and estimations used or applied in connection with its risk management activities or the preparation of its financial statements are inadequate or incorrect. For example, where quoted market prices are not available for certain financial instruments that require a determination of their fair value, JPMorganChase may make fair value determinations based on internally developed models or other means which ultimately rely to some degree on management estimates and judgment. In addition, JPMorganChase may experience increased uncertainty in its estimates the reliability of JPMorganChase's models and estimations could become more uncertain if assets acquired differ from those used to develop those models and estimations , which may lead to could also result in unexpected losses.

As JPMorganChase's interconnectivity with clients, customers and other external parties continues to expand, JPMorganChase increasingly faces which increases the risk of operational failure or cyber attacks with respect to the systems of those parties. Security breaches affecting JPMorganChase's clients or customers, or Any systems breakdowns or failures failure , security breaches breach, or human error or misconduct affecting other that affects clients, customers or external parties , may could require JPMorganChase to take steps to protect the integrity of its own operational systems or to safeguard confidential information, including restricting the access of its customers to their accounts. These actions can could increase JPMorganChase's operational costs and potentially diminish customer satisfaction and confidence in JPMorganChase.

JPMorganChase's results of operations can could be negatively affected by the occurrence or persistence of adverse changes in any of the following:

Changes in interest rates and credit spreads can could adversely affect JPMorganChase's earnings , or its liquidity or its and capital levels.

• Market risks, including the effects that unfavorable economic and market events and conditions, political developments, changes in interest rates and credit spreads, and market fluctuations can could have on JPMorganChase's consumer and wholesale businesses and its investment , investments and market-making positions and , as well as on JPMorganChase's its earnings and its liquidity and capital levels.

The development ability of JPMorganChase's management to develop and execution of execute effective business strategies by JPMorganChase's management , along with and the ability to anticipate and respond to shifts in the competitive environment, are critical to JPMorganChase's competitive standing and to achieving its strategic objectives. These strategies relate to:

JPMorganChase conducts existing and new business in certain countries, states, municipalities, territories and other jurisdictions in which the application of the rule of law is inconsistent, extralegal or less predictable, including with respect to:

• provoke retaliatory countermeasures by other countries and or otherwise heighten tensions in regulatory, enforcement trade or diplomatic relations

• cause JPMorganChase to refrain from engaging in forgo business opportunities that it might otherwise pursue.

In these circumstances, JPMorganChase could also become subject to other sanctions, or to prosecution or civil litigation with respect to the conduct matters that gave rise to an investigation or enforcement action. In addition, JPMorganChase can be subject to could incur higher costs or requests for additional capital in connection with the resolution of governmental when resolving investigations and enforcement actions involving newly-acquired businesses, companies in which JPMorganChase has made principal investments, parties to joint ventures with JPMorganChase, and vendors with which JPMorganChase does business.

JPMorganChase must comply with enhanced regulatory and other standards associated with when doing business with vendors and other service providers, including standards those relating to the outsourcing of functions as well as the performance of significant banking and other functions by subsidiaries . JPMorganChase incurs significant costs and expenses in connection with its initiatives to address the risks associated with oversight of its internal and external service providers . JPMorganChase's failure to appropriately assess and manage these relationships, especially those involving significant banking functions, shared services or other critical activities, could materially and adversely affect JPMorganChase. Specifically, any such failure could result in:

• requirements to maintain maintaining minimum amounts of capital or liquidity in locally-based subsidiaries

Disputes may could arise with counterparties to derivatives contracts with regard to concerning the terms, the settlement procedures or the value of underlying collateral. The disposition resolution of those disputes could cause JPMorganChase to incur losses, including unexpected transaction, operational and legal costs , or result in credit losses . These consequences can could also impair JPMorganChase's ability to effectively manage its credit risk exposure from its market activities, or cause reputational harm to JPMorganChase's reputation .

JPMorganChase has experienced security breaches due to cyber attacks in the past, and it is future breaches are inevitable that additional breaches will occur in the future . Any such breach could result in serious and harmful consequences for JPMorganChase or its clients and customers.

Political developments in the U.S. and other countries can could cause uncertainty in the economic environment and market conditions in which JPMorganChase operates its businesses . Certain governmental policy initiatives, as well as heightened geopolitical tensions, policies or actions could significantly affect U.S. and global economic growth and cause higher volatility in the financial markets, including:

• do business operate in the same geographic region, or

Furthermore, the widespread and expanding interconnectivity among financial institutions, clearing banks, CCPs, payments processors, financial technology companies, securities exchanges, clearing houses , financial messaging networks and other financial market infrastructures increases the risk that the disruption of an operational system involving one institution or entity , including due to a cyber attack, may could cause industry-wide operational disruptions that could materially affect JPMorganChase's ability to conduct business. In addition, the risks associated with the disruption of an operational system of a third party third-party could be exacerbated to the extent that if the services provided by that system are widely used by a significant number or proportion of market participants.

• targeted recruitment of JPMorganChase employees by competitors , and .

For example, a significant deterioration in the credit quality of a counterparty, borrower or other obligor could lead to concerns about the creditworthiness of other counterparties, borrowers or obligors parties in similar, related or dependent industries. This type of interrelationship could exacerbate JPMorganChase's credit, liquidity and market risk exposure and , potentially cause it to incur causing losses , including fair value losses in its market-making businesses and investment portfolios . In addition, JPMorganChase may could be required to increase the allowance for credit losses or establish other reserves with respect to certain clients, industries or country exposures in order to align with regulatory directives or expectations of its banking regulators .

• unfavorable media coverage or commentary in the media , including through social media campaigns

JPMorganChase's ability to manage Managing potential conflicts of interest is highly complex for JPMorganChase due to the its broad range of its business activities which encompass a variety of transactions, obligations and interests with and among JPMorganChase's clients and customers. JPMorganChase can become subject to could face litigation, enforcement actions , and heightened regulatory scrutiny, and its reputation can could be damaged, by the failure or perceived failure to:

If JPMorganChase experiences Any significant losses in its JPMorganChase's investment portfolio or from market-making activities , this could reduce JPMorganChase's its profitability and its liquidity and capital levels, and thereby constrain the growth of its businesses.

JPMorganChase's consumer businesses can could be negatively affected by adverse economic conditions and adverse impacts of governmental policies.

• the absence of a statutory , regulatory or regulatory interpretative basis or guidance for engaging in specific types of business or transactions

• increases in estimated stress losses as determined by the Federal Reserve under the Comprehensive Capital Analysis and Review CCAR , which could increase JPMorganChase's SCB.

• allocate capital in a manner that promotes long-term stability to enable JPMorganChase to build and invest in market-leading businesses , even in a highly stressed environment

• actions taken by the U.S. government or by the Federal Reserve to reduce its balance sheet, which may could reduce deposits held by JPMorganChase and other financial institutions

Any significant failure or disruption of JPMorganChase's business and operations or operational systems , or the occurrence of one or more extraordinary events that are beyond its control, could:

• mandate specific business practices that for companies operating in the relevant jurisdiction must adopt .

JPMorganChase is could be exposed to greater credit and market risk to the extent that if groupings of its clients or counterparties, or obligors on securities and other financial instruments:

• adequately address or appropriately disclose actual or potential conflicts of interest, including potential conflicts of interest those that may arise in connection with providing multiple products and services in, or having one or more investments related to, the same transaction

JPMorgan Chase & Co. and certain of its principal subsidiaries are rated by credit rating agencies . Rating agencies , which evaluate general, firm-specific and industry-specific factors when determining credit ratings for a particular financial institution , including:

• the inability, or extended delays in the ability, to fully recover and restore affected data that has been stolen, manipulated or destroyed , or the inability to prevent systems from processing fraudulent transactions

• Political risks, including the potential negative effects on JPMorganChase's businesses due to economic uncertainty or instability caused by resulting from political developments.

• adverse or unanticipated or adverse changes in depositor behavior, which could negatively affect JPMorganChase's broader asset and liability management strategy strategies , and

• cause it to incur losses or liabilities, including from loss of revenue, property damage to or loss of property , or injuries

• isolated or seemingly insignificant errors in operational systems that could compound, or migrate to other systems over time , to become becoming larger issues

In addition Furthermore , a third party third-party could misappropriate confidential information obtained by intercepting signals or communications from mobile devices used by JPMorganChase's employees.

• react quickly to changes in market conditions or market structures , or

Some of the countries in which where JPMorganChase conducts business have economies or markets that are less developed and more volatile or may have political, legal and regulatory regimes that are unpredictable or less established or predictable than other countries in which JPMorganChase operates . In addition, in some jurisdictions in which places where JPMorganChase conducts business, the local economy and business activities are subject to substantial government influence or control. Some of these countries have in the past experienced economic disruptions, including:

• requirements for the orderly resolution of financial institutions

• consumer and small business confidence levels , and

These economic, political, regulatory and social types of developments have in the past resulted in, and in the future could lead to, conditions that can could adversely affect JPMorganChase's operations in those the affected countries and impair the revenues, growth and profitability of those operations. In addition, any of these events or circumstances in one country can could affect JPMorganChase's operations and investments in another country or countries , including in the U.S.

• compliance practices, such as those relating to transaction monitoring, customer screening, blocking and rejecting transactions, recordkeeping or reporting

Any or all of these factors deficiencies could impair the JPMorganChase's ability of JPMorganChase to make sound business decisions, cause it to incur higher operational and compliance costs, result in operational breakdowns or failure to meet its regulatory requirements, negatively affect clients and customers, or lead to cause reputational harm.

JPMorganChase may need to raise funding from alternative sources if its access to stable and lower-cost sources of funding, such as deposits and borrowings from Federal Home Loan Banks, is reduced. Alternative sources of funding could be more expensive or limited in availability . JPMorganChase's funding costs could also be negatively affected by actions that JPMorganChase it may take in order to satisfy regulatory requirements, including those relating to :

• engage in similar or related businesses , or in businesses in related industries

JPMorgan Chase & Co. is a holding company and depends on the cash flows of its subsidiaries for funding to make payments on its outstanding securities.

• misappropriation of confidential information of JPMorganChase or that of its clients, customers, counterparties, employees , regulators or regulators other parties

• limit limiting the products and services that it offers

• the separation separating (or " ring fencing ") of core banking products and services from markets activities

• curtail other forgo business opportunities, including acquisitions or principal investments, that it otherwise would have pursued .

In connection with resolving specific regulatory investigations or enforcement actions, certain regulators governmental authorities have required JPMorganChase and other financial institutions to admit wrongdoing with respect to the activities that gave rise to the resolution. These types of admissions can could lead to negative consequences such as :

• losing loss of permission to operate certain businesses, either temporarily or permanently.

• the threat of enforcement actions, including under antitrust or other anti-competition laws, rules and regulations, and

• JPMorganChase does not have control over the cybersecurity of the systems of the large number of numerous clients, customers, counterparties and third-party service providers with which it does business , and .

• weaker competitive standing .

• maintaining and enhancing controls related to technology asset management and inventory systems to prevent the risk of undetected vulnerabilities that could undermine JPMorganChase's ability to operate an effective control process

• prohibitions or restrictions or prohibitions on doing business within a particular jurisdiction, or with governmental entities in a jurisdiction

In addition, advances Advances in technology, such as automation , AI and artificial intelligence data science , may could lead to workforce displacement. This could require JPMorganChase to invest in additional employee training, manage impacts on morale and retention, and compete for employment candidates who possess more advanced technological skills, all of which could have a negative impact on JPMorganChase's business and operations.

• Credit risks, including potential negative the effects from adverse changes in the financial condition of clients, customers, counterparties, custodians and central counterparties and other market participants ; the potential for losses due to declines in the value of collateral in stressed market conditions ; and potential negative impacts from concentrations of credit risk with respect to clients, customers, counterparties and other market participants.

• lead to business decisions that have negative outcomes for JPMorganChase

Similarly, JPMorganChase establishes an allowance for expected credit losses related to its credit exposures which requires significant judgments, including forecasts of how macroeconomic conditions might impair the ability of JPMorganChase's clients and customers to repay their loans or other obligations. These types of estimates and judgments may not prove to be accurate inaccurate due to a variety of factors, including when if the current and forecasted environments are significantly different from the historical environments upon which the models were developed. The increased Any heightened uncertainty associated with these estimates may necessitate a greater degree of judgment and analytics to inform any adjustments that JPMorganChase may make to model outputs than would otherwise be the case .

The impact of these actions could be accentuated in trading markets that are smaller, less liquid and more volatile than more-developed markets. These types of government actions can negatively affect JPMorganChase's operations in the relevant country, either directly or by suppressing the local business activities of local clients or multi-national clients that conduct business in the jurisdiction .

• attempts by third parties that may try to block the use of key technology solutions by claiming that the use infringes on their intellectual property rights.

The occurrence of one or more extraordinary events could also negatively impact the financial condition or creditworthiness of JPMorganChase's clients and customers, and could lead to an increase in delinquencies, additions to the allowance for credit losses and higher net charge-offs, which can could reduce JPMorganChase's earnings.

In addition, JPMorganChase's investment portfolio and market-making businesses can could suffer losses due to unanticipated market events and conditions , including:

JPMorganChase faces substantial legal and operational risks in related to the processing and safeguarding of personal information.

• delivery completion of regulatory reporting or internal or external financial reporting

• develop and enhance the operational, technology, risk, financial and managerial resources and capabilities necessary to grow and manage JPMorganChase's businesses.

• certain clients and customers ceasing doing to do business with JPMorganChase, and encouraging others to do so

• unforeseen events or conditions that may cause previously uncorrelated market factors to become correlated (and vice versa)

• have business profiles , models or strategies that could cause their ability to meet their obligations to be similarly affected by changes in economic conditions.

• requirements for executing or settling transactions on exchanges or through central counterparties (" CCPs "), or for depositing funds with other financial institutions or clearing and settlement systems , and

• increase increasing the prices that it charges for products and services, which could reduce the demand for them .

• collateral is liquidated at prices that are not sufficient insufficient to recover the full amount owed to it, or

• difficulty in challenges associated with competing in economies in which the government controls or protects all or a portion of the local economy or specific businesses, or where graft or corruption may be pervasive

• the methods, distribution channels and third party third-party service providers by or through which it offers products and services.

• counterparties are unable to post collateral , whether for operational or other reasons.

• it is possible that a third party third-party , after establishing a foothold on an internal network without being detected, may gain access to other networks and systems .

• detecting, escalating and effectively addressing effectively and in a timely manner any vulnerabilities that may be present either in internally-developed software or externally-provided software or services, including vulnerabilities that could allow the attackers to exploit unknown security flaws in software and hardware ( i.e., " zero-day vulnerabilities ")

• significant exposure to litigation, investigations by governmental authorities and penalties, and The extent of a particular cyber attack, the methods and tools used by various threat actors, and the steps that JPMorganChase may need to take to investigate the attack may not be immediately clear, and it may could take a significant amount of time before such an investigation can be completed. While such an investigation is ongoing, JPMorganChase may not necessarily know the full extent of the harm caused by the cyber attack, and that damage may could continue to spread. These factors may could inhibit JPMorganChase's ability to provide rapid, full and reliable information about the cyber attack to its clients, customers, counterparties and regulators, as well as the public. Furthermore, it may not be clear how best to contain and remediate the harm caused by the cyber attack, and certain errors or actions could be repeated or compounded before they are discovered and remediated. Any or all of these factors could further increase the costs and consequences of a cyber attack.

• their reliance on historical trends that may not persist in the future , including assumptions underlying the models and estimations such as correlations among certain market indicators or asset prices

• changes in the value of collateral such as residential real estate and vehicles , and

• constraining the amount of dividends that may can be paid on common stock, or

• the threat of regulatory investigations by governmental authorities , civil litigations or criminal prosecutions that are arbitrary or otherwise contrary to established legal principles in other parts of the world, and

• upgrading the coverage and capabilities of systems and controls to protect JPMorganChase and its clients and customers from the impact of distributed denial-of-service attacks, or to recover from outages that could be caused by a malware or ransomware attack

• disqualification from doing business with certain clients or customers, or in specific jurisdictions , or

Enhanced regulatory and other standards for the oversight of JPMorganChase's vendors and other service providers can could result in higher costs and other potential exposures.

A successful cyber attack affecting JPMorganChase could cause significant harm to JPMorganChase and its clients and customers.

• preventing unauthorized access and protecting against the misuse of access, including the maintenance and enhancement of controls related to secure software development practices and identity and access management, such as those including controls relating to the management of administrative access to systems

• identify and address any conflict of interest that a third party third-party with which it is does business may have with respect to a transaction involving JPMorganChase

• the implementation of tariffs and other protectionist trade policies

JPMorganChase's results may could be materially affected by market fluctuations and significant changes in the valuation of financial instruments.

JPMorganChase's ability to operate its businesses efficiently and profitably, to offer products and services that meet the expectations of its clients and customers, and to maintain an effective risk management framework is highly dependent on its ability to staff its operations appropriately and on the competence, trustworthiness, health and safety of its employees. JPMorganChase's businesses and operations similarly rely on the workforces of third parties, including employees of vendors, custodians and financial markets infrastructures, and of businesses that it may seek to acquire. JPMorganChase's businesses could be materially and adversely affected by:

Any deficiencies in JPMorganChase's data management processes, including with respect to the accuracy or completeness of data, the timeliness of data collection, the analysis or validation of data, or the safeguarding of data could undermine the reliability and effectiveness of its JPMorganChase's operations, including such as :

• the techniques used in cyber attacks evolve frequently and increase in sophistication, and therefore a cyber attack may not be recognized until launched or may go undetected for extended periods

The fees that JPMorganChase earns from managing client assets or holding assets under custody for clients could be diminished by declining asset values or other adverse macroeconomic conditions. For example, higher interest rates or a market downturn in financial markets could affect the valuation of client assets that JPMorganChase manages or holds under custody, which, resulting in turn, could affect JPMorganChase's lower revenue from fees that are based on the amount of assets under management or custody. Similarly, adverse macroeconomic or market conditions could prompt outflows from JPMorganChase funds or accounts, or cause clients to invest in products that generate lower revenue. Substantial and unexpected withdrawals from a JPMorganChase fund can could also hamper the investment performance of the fund, particularly if the outflows create the need for the fund to dispose of fund assets at disadvantageous times or prices, and could lead to further withdrawals based on the weaker investment performance.

• defaults or reduced ability to service sovereign debt , and

• providing services to clients and customers, including transaction processing, lending services, account management and customer support, or and

JPMorganChase's business and operations in certain countries can could be adversely affected by local economic, political, regulatory and social factors.

• integrating acquired businesses , including where system integration may be complex or may require extensive and lengthy remediation or enhancement of controls.

JPMorganChase's business and operational systems operations could be seriously disrupted, and its reputation could be harmed, by events or contributing factors that are wholly or partially beyond its control, including material instances of:

• sudden illiquidity in markets or declines in prices of certain loans and securities may could make it more difficult to value certain financial instruments

• offer products and services that meet changing expectations of clients and customers

Any rating reduction downgrade could also increase the credit spreads charged by the market participants for taking credit risk on JPMorgan Chase & Co. and its subsidiaries. This could, in turn, adversely affect the value of debt and other obligations of JPMorgan Chase & Co. and its subsidiaries.

The governments in these countries have sometimes reacted to these developments by imposing restrictive policies that adversely affect the local and regional business environment, such as:

• inability to sell assets, or to sell assets at favorable times or prices

• accept material regulatory restrictions on, or changes in the management of, its businesses.

If the Federal Reserve and the FDIC were both to determine that a resolution plan submitted by JPMorganChase has deficiencies, they could jointly impose more stringent capital, leverage or liquidity requirements , or restrictions on JPMorganChase's growth, activities or operations. The agencies banking regulators could also require that JPMorganChase restructure, reorganize or divest assets or businesses in ways that could materially and adversely affect JPMorganChase's operations and strategy.

• errors made by JPMorganChase or another market participant, whether inadvertent or malicious, which could cause widespread system disruption

• Country risks, including potential impacts on JPMorganChase's businesses from an outbreak or escalation of hostilities between countries or within a country or region; and the potential adverse effects of local economic, political, regulatory and social factors on JPMorganChase's business and revenues in certain countries in which it operates.

JPMorganChase's results or competitive standing could suffer if its management fails to develop and execute effective business strategies , and to anticipate changes affecting those strategies.

If JPMorganChase is unable to reduce positions effectively during a market dislocation, this can could increase both the market and credit risks associated with those positions and the level of risk-weighted-assets (" RWA ") that JPMorganChase holds on its balance sheet. These factors could adversely affect JPMorganChase's capital position, funding costs and the profitability of its businesses.