JPMorgan Chase

“The cybersecurity risks that JPMorganChase faces could be intensified by factors such as: •increased volume and complexity of cyber attacks during periods of heightened geopolitical tensions •technological advances such as artificial intelligence (“AI”) and quantum computing that may enable malicious actors to develop more advanced social engineering attacks, including targeted phishing attacks, and •technological advances which may counteract or nullify existing information security protections, including cryptographic protections, potentially exposing data. In addition, JPMorganChase could be required to make significant investments in technology in order to transition effectively to more robust security protections, including quantum-resistant encryption.”

Annual report 2025A · The company itself

“JPMorganChase may not always identify or recognize the full extent of operational risks that could arise from: •the introduction of a new product or service, including platforms for the delivery or distribution of products or services •the acquisition or integration of, or investment in, a new business, product or portfolio, including the development of any related technological capabilities •the adoption of a new technology, or •changes to existing products, services, delivery platforms, businesses and technologies. Any significant failure by JPMorganChase to identify the operational risks associated with these types of changes, or to implement adequate controls to mitigate those risks, has resulted and could in the future result in: •hindering JPMorganChase’s ability to operate its businesses •potential liability to clients, counterparties and customers •impairment of JPMorganChase’s liquidity •weaker competitive standing •higher compliance, operational or integration costs •regulatory intervention •losses from fraudulent transactions •higher litigation costs and penalties, or •reputational harm.”

Annual report 2025A · The company itself

“New technologies have required and could require JPMorganChase to increase expenditures to modify its products to attract and retain clients and customers or to match products and services offered by its competitors, including technology companies. If JPMorganChase does not keep pace with rapidly changing technological advances, including the adoption of generative AI, it risks losing clients and market share to competitors, which could negatively impact revenues, operating costs and its competitive position.”

Annual report 2025A · The company itself

“In addition, new technologies (including generative AI) could be used by customers or bad actors in unexpected or disruptive ways, or could be breached or infiltrated by third parties, which could increase JPMorganChase’s compliance expenses and reduce its income related to the offering of products and services through those technologies.”

Annual report 2025A · The company itself

“It is also possible that JPMorganChase could miscalibrate its workforce planning and employee training efforts either because of over-reliance on AI or the failure to appropriately adopt AI. Over-reliance on AI could cause JPMorganChase to experience shortages in qualified staff due to reduced hiring or retention of employees, or could hinder the development or enhancement of important skills among its employees, including critical thinking, problem-solving, judgment, creativity and adaptability. On the other hand, any efficiencies or competitive advantages that AI may offer could be squandered if JPMorganChase fails to adopt AI in a timely and judicious manner and to make related adjustments to its workforce.”

Annual report 2025A · The company itself

“Each of these objectives could be adversely affected by any failure by management to: •devise effective business plans and strategies •offer products and services that meet expectations of clients and customers •allocate capital in a manner that promotes long-term stability to enable JPMorganChase to build and invest in market-leading businesses •appropriately assess and monitor principal investments •conduct appropriate due diligence on prospective business acquisitions or investments, or effectively integrate newly-acquired businesses •appropriately address concerns of clients, customers, investors, employees, regulators and other stakeholders •maintain an effective risk management framework •react quickly to changes in market conditions or structures •appropriately balance workforce planning and training as new technologies, such as AI, are adopted and integrated, or •develop the operational, technology, risk, financial and managerial capabilities necessary to grow and manage JPMorganChase’s businesses.”

Annual report 2025A · The company itself

“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: •lending and other extensions of credit to consumers •payments processing •cryptocurrency, including stablecoins •tokenized securities, and •online automated algorithmic-based investment advice.”

Annual report 2025A · The company itself

“These strategies relate to: •the products and services that JPMorganChase offers •the geographies in which it operates •the types of clients and customers that it serves •the businesses that it acquires or in which it invests •the counterparties with which it does business •the technologies that it adopts or in which it invests, and •the methods, distribution channels and third-party service providers by or through which it offers products and services.”

Annual report 2025A · The company itself

“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: •lending and other extensions of credit to consumers •payments processing •cryptocurrency, including stablecoins •tokenized securities, and •online automated algorithmic-based investment advice.”

Annual report 2025A · The company itself

“These strategies relate to: •the products and services that JPMorganChase offers •the geographies in which it operates •the types of clients and customers that it serves •the businesses that it acquires or in which it invests •the counterparties with which it does business •the technologies that it adopts or in which it invests, and •the methods, distribution channels and third-party service providers by or through which it offers products and services.”

Annual report 2025A · The company itself

“Legal and Regulatory JPMorganChase’s businesses are highly regulated and are significantly affected by applicable law and supervisory expectations. JPMorganChase must comply with applicable law in all of the jurisdictions around the world where it does business. Like other financial services firms, JPMorganChase is subject to extensive supervision and regulation that significantly affects the way that it conducts its business and structures its operations.”

Annual report 2025A · The company itself

“JPMorganChase has in the past and could in the future be required to modify its business and operations in response to changes in applicable law, regulatory decisions or supervisory expectations, such as: •limiting the products and services that it offers •increasing the prices that it charges for products and services, which could reduce the demand for them •reducing the liquidity that it provides through market-making activities •paying higher taxes or other governmental charges •absorbing losses arising from fraudulent transactions perpetrated against its clients and customers •disposing of certain assets, and doing so at disadvantageous times or prices •forgoing business opportunities that it might otherwise pursue, or •otherwise restricting its business activities. These types of changes could increase JPMorganChase’s costs or reduce its revenues.”

Annual report 2025A · The company itself

“Differences in the supervision and regulation of financial services firms could require JPMorganChase to modify its operations and incur higher operational and compliance costs. Various factors could influence the scope of applicable law and supervision for a firm that provides financial services, such as the size of the firm, the businesses in which it engages and its jurisdiction of organization. For example: •larger firms such as JPMorganChase often face more stringent supervision and regulation •certain competitors, such as financial technology companies, may not be subject to banking regulation, or may be subject to less stringent oversight, or •the regulatory and supervisory framework in a particular jurisdiction may favor locally-based firms.”

Annual report 2025A · The company itself

“A highly-regulated financial services firm such as JPMorganChase can be vulnerable to competition from firms that are less regulated or unregulated. In addition, differences in regulatory implementation between the U.S. and other countries could adversely affect JPMorganChase’s businesses. For example, a national financial services regulator may impose requirements 10 that are stricter than a global standard, which could create competitive disadvantages for those firms, such as JPMorganChase, that are subject to the enhanced regulations.”

Annual report 2025A · The company itself

“JPMorganChase faces significant legal risks from civil and governmental proceedings, including litigation, investigations and enforcement actions. 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 could result in judgments, settlements or penalties adverse to JPMorganChase, and any such resolution of legal proceedings could materially and adversely affect JPMorganChase’s business, financial condition or results of operations, or cause serious reputational harm.”

Annual report 2025A · The company itself

“JPMorganChase has in the past incurred significant penalties and experienced collateral consequences and other repercussions in connection with resolving investigations and enforcement actions by governmental authorities, and it could face similar investigations, actions and resolutions in the future. JPMorganChase typically incurs higher operational and compliance costs when addressing the requirements of such resolutions, including devoting substantial resources to remediation. In connection with resolving specific investigations or enforcement actions, certain governmental authorities have required JPMorganChase and other financial institutions to admit wrongdoing with respect to the activities that gave rise to the resolution.”

Annual report 2025A · The company itself

“JPMorganChase’s businesses and results of operations could be adversely affected by actions or initiatives by governmental authorities or officials that: •seek to discourage financial institutions from doing business with companies engaged in certain industries, or conversely, to penalize financial institutions that elect not to do business with such companies, or •mandate specific business practices for companies operating in the relevant jurisdiction. Governmental policies may differ or conflict across jurisdictions, which could lead to negative consequences for JPMorganChase regardless of the course of action that it takes or elects not to take, including: •prohibitions or restrictions on doing business within a particular jurisdiction, or with governmental entities in a jurisdiction •the threat of enforcement actions, including under antitrust or other anti-competition laws, and •reputational harm.”

Annual report 2025A · The company itself

“In addition, greater government scrutiny of practices related to the handling of personal information has in some cases resulted in, and could in the future lead to, the adoption of applicable law in the U.S. and elsewhere that is stricter and could result in JPMorganChase incurring higher compliance costs or constraining its ability to offer certain products and services to customers.”

Annual report 2025A · The company itself

“A significant inadequacy in disclosure or financial reporting controls could negatively affect JPMorganChase’s business, operations and reputation. 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 may not always be effective, and a material weakness or significant deficiency in internal control over financial reporting could occur.”

Annual report 2025A · The company itself

“Part I Competition in the financial services industry could lead to negative effects on JPMorganChase’s results of operations. JPMorganChase operates in a highly competitive environment in which it must constantly adapt to changes in financial regulation, technological advances and economic conditions. JPMorganChase expects that competition in the financial services industry will remain intense, with new competitors in the financial services industry continuing to emerge.”

Annual report 2025A · The company itself

“In addition, advocacy by non-banking competitors for exemptions from regulatory requirements could significantly disadvantage traditional financial institutions.”

Annual report 2025A · The company itself

“JPMorganChase has experienced and expects that it will continue to experience failures and disruptions in the stability of its operational systems, including: •degraded performance of data processing systems •data quality issues •disruptions of network connectivity •malfunctioning software •disruptions in its ability to access and use the operational systems of third parties, and •interruptions in service from third-party service providers. These incidents have resulted in various negative effects for customers, including: •the inability to access account information or transact through ATM, internet or mobile channels •the exfiltration of customer personal data •the recording of duplicative transactions, and •extended delays for call center services.”

Annual report 2025A · The company itself

“Furthermore, the widespread 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 entity 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 could be exacerbated if the services provided by that system are widely used by market participants.”

Annual report 2025A · The company itself

“A successful cyber attack could cause significant harm to JPMorganChase and its clients and customers. JPMorganChase experiences numerous cyber attacks on its computer systems, software, networks and other technology assets.”

Annual report 2025A · The company itself

“•obtain unauthorized access to JPMorganChase’s systems or to confidential information belonging to 21 Part I JPMorganChase or its clients, customers, counterparties or employees •manipulate or destroy data •disrupt, sabotage or degrade service on JPMorganChase’s systems and websites, including those that provide online banking and other services •steal money, or •extort money through the use of so-called “ransomware.” Threat actors that perpetrate cyber attacks include individuals or groups that are: •sponsored by, or acting on behalf of, hostile countries or terrorist organizations •cyber-criminals, or •engaged in using technology to promote a political or social agenda (i.e., “hacktivists”). JPMorganChase has experienced security breaches due to cyber attacks in the past, and future breaches are inevitable.”

Annual report 2025A · The company itself

“JPMorganChase cannot guarantee that it will always detect cybersecurity threats to its systems or implement effective preventive measures against those threats. The reasons for this include: •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 •it is possible that a third-party, after establishing a foothold on an internal network without being detected, may gain access to other networks and systems •cyber attacks can originate from a wide variety of sources, including certain threat actors that are well-resourced and can sustain malicious activities for extended periods, and •JPMorganChase does not have control over the cybersecurity of the systems of the numerous clients, customers, counterparties and third-party service providers with which it does business.”

Annual report 2025A · The company itself

“The cybersecurity risks that JPMorganChase faces could be intensified by factors such as: •increased volume and complexity of cyber attacks during periods of heightened geopolitical tensions •technological advances such as artificial intelligence (“AI”) and quantum computing that may enable malicious actors to develop more advanced social engineering attacks, including targeted phishing attacks, and •technological advances which may counteract or nullify existing information security protections, including cryptographic protections, potentially exposing data. In addition, JPMorganChase could be required to make significant investments in technology in order to transition effectively to more robust security protections, including quantum-resistant encryption.”

Annual report 2025A · The company itself

“The extent of a particular cyber attack, the methods used by threat actors, and the steps that JPMorganChase may need to take to investigate the attack may not be immediately clear, and it could take a significant amount of time before such an investigation can be completed. While such an investigation is ongoing, JPMorganChase may not know the full extent of the harm caused by the cyber attack, and that damage could continue to spread.”

Annual report 2025A · The company itself

“The growing sophistication of technology poses a heightened risk of identity fraud, as malicious actors may exploit technology to create convincing false identities or manipulate verification processes. Failure to manage these risks or to implement effective countermeasures could lead to unauthorized transactions, financial losses, increased regulatory scrutiny and reputational harm.”

Annual report 2025A · The company itself

“In addition, if a third-party, whether authorized or unauthorized, obtains and misappropriates data from JPMorganChase’s systems, JPMorganChase and its clients and customers could experience negative outcomes, including a heightened risk of fraudulent transactions using JPMorganChase’s systems, losses from fraudulent transactions and reputational harm from perceived system insecurity.”

Annual report 2025A · The company itself

“Market Adverse economic and market events and conditions could negatively affect JPMorganChase’s results of operations and investment and market-making positions. JPMorganChase’s results of operations could be negatively affected by the occurrence or persistence of adverse changes in any of the following: •the U.S. and global economies •investor, consumer and business sentiment, or confidence in the financial markets •inflation, deflation, recession or employment •the availability and cost of capital, liquidity and credit •levels and volatility of interest rates, credit spreads or market prices of currencies, securities and 14 commodities, and the duration of any such changes, and •economic and geopolitical effects of extraordinary events beyond JPMorganChase’s control. 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 governmental authorities.”

Annual report 2025A · The company itself

“JPMorganChase’s consumer businesses are particularly affected by U.S. and global economic conditions, including: •the distribution of personal and household income •unemployment or underemployment •changes in housing prices •the level of inflation and its effect on prices for goods and services •consumer and small business confidence levels •prolonged periods of exceptionally high or low interest rates, or significant changes to interest rates •changes in the value of collateral such as residential real estate and vehicles, and •changes in consumer spending or in the level of consumer debt. High unemployment levels could reduce personal and household income, which could degrade consumer credit performance if consumers struggle to service their debts. Adverse economic conditions could also lead to an increase in delinquencies, an increase in the allowance for credit losses or higher net charge-offs, which could reduce JPMorganChase’s earnings.”

Annual report 2025A · The company itself

“Unfavorable market and economic conditions could adversely affect JPMorganChase’s wholesale businesses. Market and economic factors can affect the volume of transactions and advisory engagements for which JPMorganChase is engaged and the related revenue from those activities. These factors could also influence the willingness of other financial institutions and investors to participate in capital markets transactions that JPMorganChase manages.”

Annual report 2025A · The company itself

“An adverse change in market conditions in particular segments of the economy, 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 significantly impacted by the health or stability of those 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 significantly impacted by, any sector of the economy under stress. An economic downturn or sustained changes in consumer behavior that 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.”

Annual report 2025A · The company itself

“JPMorganChase could be exposed to greater credit and market risk if groupings of its clients or counterparties, or obligors on securities and other financial instruments: •engage in similar or related businesses or in related industries •operate in the same geographic region, or •have business profiles that could cause their ability to meet their obligations to be similarly affected by changes in economic conditions.”

Annual report 2025A · The company itself

“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 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 industries to meet their obligations.”

Annual report 2025A · The company itself

“More broadly, widespread defaults on consumer debt could lead to recessionary conditions in the U.S. economy, and JPMorganChase’s consumer businesses could earn lower revenues in such an environment.”

Annual report 2025A · The company itself

“Any significant failure or disruption of JPMorganChase’s business and operations, or the occurrence of extraordinary events that are beyond its control, could: •hinder JPMorganChase’s ability to provide services to its clients and customers or to transact with its counterparties •require it to expend significant resources to correct the failure or disruption or to address the event •cause it to incur losses or liabilities, including from loss of revenue, property damage, or injuries •disrupt market infrastructure systems on which JPMorganChase’s businesses rely •expose it to litigation or penalties, and •cause reputational harm. The occurrence of extraordinary events could also negatively impact the financial condition or creditworthiness of JPMorganChase’s clients and customers, and could lead to an increase in the allowance for credit losses and higher net charge-offs, which could reduce JPMorganChase’s earnings.”

Annual report 2025A · The company itself

“In addition, JPMorganChase’s investment portfolio and market-making businesses could suffer losses due to unanticipated market events and conditions, including: •severe declines in asset values •unexpected credit events, credit rating downgrades and large counterparty losses •disruption of trade routes and supply chains globally •events or conditions that cause previously uncorrelated market factors to become correlated (and vice versa) •the inability to effectively hedge risks related to market-making and investment portfolio positions, or •other market risks that may not have been adequately considered when developing, structuring or pricing a financial instrument. Any significant losses in JPMorganChase’s investment portfolio or from market-making activities could reduce its profitability and its liquidity and capital levels, and thereby constrain the growth of its businesses.”

Annual report 2025A · The company itself

“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 could affect the valuation of client assets that JPMorganChase manages or holds under custody, resulting in 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.”

Annual report 2025A · The company itself

“When credit spreads widen, it becomes more expensive for JPMorganChase to borrow. JPMorganChase’s credit spreads could widen or narrow not only 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 could negatively affect its earnings on certain liabilities, such as derivatives, that are recorded at fair value.”

Annual report 2025A · The company itself

“JPMorganChase could suffer losses if the value of collateral declines. During periods of market stress or illiquidity, JPMorganChase’s credit risk could increase when: •JPMorganChase fails to realize the estimated value of the collateral it holds •collateral is liquidated at prices that are insufficient to recover the full amount owed to it, or 17 Part I •counterparties are unable to post collateral for operational or other reasons. 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 could increase during significant market stress, volatility or illiquidity.”

Annual report 2025A · The company itself

“JPMorganChase could incur significant losses arising from concentrations of credit and market risk. JPMorganChase could be exposed to greater credit and market risk if groupings of its clients or counterparties, or obligors on securities and other financial instruments: •engage in similar or related businesses or in related industries •operate in the same geographic region, or •have business profiles that could cause their ability to meet their obligations to be similarly affected by changes in economic conditions.”

Annual report 2025A · The company itself

“Furthermore, the interconnectivity across credit markets increases the risk that the significant expansion of private credit could worsen losses among non-bank lenders and their borrowers, particularly if stress or defaults spread to broader funding and credit markets. Such developments could impair asset valuations, reduce market-wide liquidity, disrupt borrowers’ ability to refinance, and increase default rates, especially if non-bank lenders have weaker underwriting standards, loans are less liquid, or transparency is limited.”

Annual report 2025A · The company itself

“A reduction in JPMorganChase’s liquidity could be caused by events beyond its control. For example, JPMorganChase’s funding costs could increase and its access to traditional sources of liquidity could be 18 limited during periods of market stress, low investor confidence or significant market illiquidity.”

Annual report 2025A · The company itself

“MARKET RISK MANAGEMENT Market risk is the risk associated with the effect of changes in market factors such as interest and foreign exchange rates, equity and commodity prices, credit spreads or implied volatilities, on the value of assets and liabilities held for both the short and long term.”

Annual report 2025A · The company itself

“Political JPMorganChase’s businesses could be negatively affected by economic uncertainty resulting from political and geopolitical developments. Political developments in the U.S. and other countries could cause uncertainty in the economic environment and market conditions in which JPMorganChase operates. Certain governmental policies or actions could significantly affect U.S. and global economic growth and cause higher volatility in the financial markets, including: •monetary policies and actions taken by central banks, including any sustained large-scale asset purchases, any suspension or reversal of those actions, and changes in interest rate levels •fiscal policies, including with respect to taxation and spending •foreign policies that emphasize national interests •economic or financial sanctions •the implementation of tariffs and other trade policies •requirements to relocate business activities or operations •deployment of the military •changes to immigration policies, or •actions or inactions by a government related to emergencies.”

Annual report 2025A · The company itself

“JPMorganChase could be exposed to greater credit and market risk if groupings of its clients or counterparties, or obligors on securities and other financial instruments: •engage in similar or related businesses or in related industries •operate in the same geographic region, or •have business profiles that could cause their ability to meet their obligations to be similarly affected by changes in economic conditions.”

Annual report 2025A · The company itself

“•obtain unauthorized access to JPMorganChase’s systems or to confidential information belonging to 21 Part I JPMorganChase or its clients, customers, counterparties or employees •manipulate or destroy data •disrupt, sabotage or degrade service on JPMorganChase’s systems and websites, including those that provide online banking and other services •steal money, or •extort money through the use of so-called “ransomware.” Threat actors that perpetrate cyber attacks include individuals or groups that are: •sponsored by, or acting on behalf of, hostile countries or terrorist organizations •cyber-criminals, or •engaged in using technology to promote a political or social agenda (i.e., “hacktivists”). JPMorganChase has experienced security breaches due to cyber attacks in the past, and future breaches are inevitable.”

Annual report 2025A · The company itself

“There can be no assurance that JPMorganChase’s Firmwide resiliency framework will mitigate all potential resiliency risks to JPMorganChase, its clients and customers, and the third parties, including service providers with which it does business, or that the resiliency framework will be able to anticipate or defend against every form of disruption or adequately address the effects of simultaneous or 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.”

Annual report 2025A · The company itself

“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 clients.”

Annual report 2025A · The company itself

“In addition, emerging markets countries, as well as more developed countries, have been susceptible to unfavorable social developments arising from poor economic conditions or governmental actions, including: •widespread demonstrations, civil unrest or general strikes •crime and corruption •security and personal safety issues •outbreaks or escalations of hostilities, or other geopolitical instabilities •overthrow of incumbent governments •terrorist attacks, and •other forms of internal discord. These types of developments have in the past resulted in, and in the future could lead to, conditions that could adversely affect JPMorganChase’s operations in the affected countries and impair the revenues, growth and profitability of those operations.”

Annual report 2025A · The company itself

“Changes in interest rates and credit spreads could adversely affect JPMorganChase’s earnings or its liquidity and capital levels. JPMorganChase may generally be expected to earn higher net interest income when interest rates are high or increasing. However, higher interest rates could also result in: •fewer originations of commercial and residential real estate loans •losses on underwriting exposures or increases in client-specific downgrades •increased financing costs for clients, which could lead to an increase in the allowance for credit losses and higher net charge-offs •the loss of deposits, including where customers transition to higher-yielding products •losses on available-for-sale (“AFS”) securities held in the investment securities portfolio •less liquidity in the financial markets, and •higher funding costs.”

Annual report 2025A · The company itself

“Higher interest rates could also negatively affect the payment performance on loans within JPMorganChase’s consumer and wholesale loan portfolios that are linked to variable interest rates. If borrowers of variable rate loans reduce or stop making payments at higher interest rates, JPMorganChase could incur losses as well as increased operational costs related to servicing a higher volume of delinquent loans. On the other hand, a low or negative interest rate environment could cause: •compressed net interest margins, which could result in lower earnings on JPMorganChase’s investment securities portfolio •adverse or unanticipated changes in depositor behavior, which could negatively affect JPMorganChase’s broader asset and liability management strategies, and •a reduction in the value of JPMorganChase’s mortgage servicing rights (“MSRs”) asset, resulting in decreased revenues.”

Annual report 2025A · The company itself

“JPMorganChase’s liquidity could be impacted by factors such as: •market-wide illiquidity or disruption •actions by governmental authorities, including changes in regulatory requirements relating to liquidity or capital •actions taken by the Federal Reserve to reduce its balance sheet, which could reduce deposits held by JPMorganChase and other financial institutions •inability to sell assets, or to sell at favorable times or prices •default by a CCP or other significant market participant •unanticipated outflows of cash or collateral •unexpected loss of deposits, including due to deposit pricing or migration to other investment products •higher than anticipated draws on lending-related commitments, and •lack of market or customer confidence in JPMorganChase or financial institutions in general.”

Annual report 2025A · The company itself

“JPMorganChase’s liquidity and cost of funding could be adversely affected by downgrades in its credit ratings. JPMorgan Chase & Co. and certain of its principal subsidiaries are rated by credit rating agencies, which evaluate general, firm-specific and industry-specific factors when determining credit ratings, including: •expected future profitability •risk management practices •legal expenses •regulatory developments •ratings differentials between bank holding companies and their bank and non-bank subsidiaries •assumptions about government support, and •economic and geopolitical developments. JPMorganChase has experienced credit ratings downgrades in the past, and there is no assurance that JPMorganChase’s credit ratings will not be downgraded in the future.”

Annual report 2025A · The company itself

“A downgrade in JPMorganChase’s credit ratings could curtail its business activities and its profitability, including by: •reducing its access to capital markets •materially increasing its cost of issuing and servicing securities •triggering additional collateral or funding requirements, and •decreasing the number of investors and counterparties that are willing or permitted to do business with or lend to JPMorganChase. Any rating downgrade could also increase the credit spreads charged by market participants for taking credit risk on JPMorgan Chase & Co. and its subsidiaries.”

Annual report 2025A · The company itself

“MARKET RISK MANAGEMENT Market risk is the risk associated with the effect of changes in market factors such as interest and foreign exchange rates, equity and commodity prices, credit spreads or implied volatilities, on the value of assets and liabilities held for both the short and long term.”

Annual report 2025A · The company itself

“These consequences could be significantly worse if high levels of consumer debt, such as outstanding student loans, impair the ability of customers to pay their other consumer loan obligations, or in certain geographies where declining industrial or manufacturing activity has resulted in or could result in higher levels of unemployment. In addition, JPMorganChase’s earnings from its consumer businesses could be adversely affected if customer demand for the products and services offered by its consumer businesses is diminished by sustained low growth, low or negative interest rates, inflationary pressures, or recessionary conditions. Furthermore, governmental policies and actions, including those relating to pricing of products, taxation, medical insurance, education, immigration, and housing, or those that impact employment status, could reduce consumer disposable income and decrease JPMorganChase's earnings from its consumer businesses.”

Annual report 2025A · The company itself

“JPMorganChase’s consumer businesses could also be harmed by an excessive expansion of consumer credit by competitors. Heightened competition for certain types of consumer loans could lead to significant price reductions for those loans or providing loans to less-creditworthy borrowers. If large numbers of consumers subsequently default on their loans, 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.”

Annual report 2025A · The company itself

“A reduction in JPMorganChase’s liquidity could be caused by events beyond its control. For example, JPMorganChase’s funding costs could increase and its access to traditional sources of liquidity could be 18 limited during periods of market stress, low investor confidence or significant market illiquidity.”

Annual report 2025A · The company itself

“Any significant failure or disruption of JPMorganChase’s business and operations, or the occurrence of extraordinary events that are beyond its control, could: •hinder JPMorganChase’s ability to provide services to its clients and customers or to transact with its counterparties •require it to expend significant resources to correct the failure or disruption or to address the event •cause it to incur losses or liabilities, including from loss of revenue, property damage, or injuries •disrupt market infrastructure systems on which JPMorganChase’s businesses rely •expose it to litigation or penalties, and •cause reputational harm. The occurrence of extraordinary events could also negatively impact the financial condition or creditworthiness of JPMorganChase’s clients and customers, and could lead to an increase in the allowance for credit losses and higher net charge-offs, which could reduce JPMorganChase’s earnings.”

Annual report 2025A · The company itself

“Actions by competitors could put pressure on the pricing for JPMorganChase’s products and services or could cause it to lose market share, particularly with respect to investment products and traditional banking products.”

Annual report 2025A · The company itself

“JPMorganChase’s business and operations rely on appropriate staffing and on the competence, trustworthiness, health and safety of employees. JPMorganChase’s ability to operate its businesses efficiently and profitably, to offer products and services that meet the expectations of its clients and customers, 23 Part I 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.”

Annual report 2025A · The company itself

“JPMorganChase’s businesses could be materially and adversely affected by: •staffing shortages, particularly in tight labor markets •any failure by employees to adhere to controls designed to mitigate operational risks •the possibility that significant portions of JPMorganChase’s workforce are unable to work effectively, including due to health emergencies or other extraordinary events beyond JPMorganChase’s control •theft, fraud or other unlawful conduct by employees, or •other negative outcomes caused by human error or misconduct JPMorganChase’s operations could also be impaired if the measures that it takes to protect the health and safety of employees, or actions taken by governmental authorities or other external parties on which it relies are ineffective.”

Annual report 2025A · The company itself

“It is also possible that JPMorganChase could miscalibrate its workforce planning and employee training efforts either because of over-reliance on AI or the failure to appropriately adopt AI. Over-reliance on AI could cause JPMorganChase to experience shortages in qualified staff due to reduced hiring or retention of employees, or could hinder the development or enhancement of important skills among its employees, including critical thinking, problem-solving, judgment, creativity and adaptability. On the other hand, any efficiencies or competitive advantages that AI may offer could be squandered if JPMorganChase fails to adopt AI in a timely and judicious manner and to make related adjustments to its workforce.”

Annual report 2025A · The company itself

“JPMorganChase’s efforts to hire and retain talented employees could be hindered by factors such as: •the emerging need for more-skilled workers in an evolving workplace environment, and •targeted recruitment of JPMorganChase employees by competitors. JPMorganChase’s performance and competitive position could be materially and adversely affected if it is unable to attract or retain qualified employees or to effectively manage succession planning for key leadership roles, such as the Chief Executive Officer, members of the Operating Committee and other senior leaders.”

Annual report 2025A · The company itself

“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.”

Annual report 2025A · The company itself

“JPMorganChase may not always identify or recognize the full extent of operational risks that could arise from: •the introduction of a new product or service, including platforms for the delivery or distribution of products or services •the acquisition or integration of, or investment in, a new business, product or portfolio, including the development of any related technological capabilities •the adoption of a new technology, or •changes to existing products, services, delivery platforms, businesses and technologies. Any significant failure by JPMorganChase to identify the operational risks associated with these types of changes, or to implement adequate controls to mitigate those risks, has resulted and could in the future result in: •hindering JPMorganChase’s ability to operate its businesses •potential liability to clients, counterparties and customers •impairment of JPMorganChase’s liquidity •weaker competitive standing •higher compliance, operational or integration costs •regulatory intervention •losses from fraudulent transactions •higher litigation costs and penalties, or •reputational harm.”

Annual report 2025A · The company itself

“Part I Competition in the financial services industry could lead to negative effects on JPMorganChase’s results of operations. JPMorganChase operates in a highly competitive environment in which it must constantly adapt to changes in financial regulation, technological advances and economic conditions. JPMorganChase expects that competition in the financial services industry will remain intense, with new competitors in the financial services industry continuing to emerge.”

Annual report 2025A · The company itself

“New technologies have required and could require JPMorganChase to increase expenditures to modify its products to attract and retain clients and customers or to match products and services offered by its competitors, including technology companies. If JPMorganChase does not keep pace with rapidly changing technological advances, including the adoption of generative AI, it risks losing clients and market share to competitors, which could negatively impact revenues, operating costs and its competitive position.”

Annual report 2025A · The company itself

“JPMorganChase has experienced and expects that it will continue to experience failures and disruptions in the stability of its operational systems, including: •degraded performance of data processing systems •data quality issues •disruptions of network connectivity •malfunctioning software •disruptions in its ability to access and use the operational systems of third parties, and •interruptions in service from third-party service providers. These incidents have resulted in various negative effects for customers, including: •the inability to access account information or transact through ATM, internet or mobile channels •the exfiltration of customer personal data •the recording of duplicative transactions, and •extended delays for call center services.”

Annual report 2025A · The company itself

“Furthermore, the widespread 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 entity 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 could be exacerbated if the services provided by that system are widely used by market participants.”

Annual report 2025A · The company itself

“JPMorganChase must comply with enhanced regulatory and other standards when doing business with vendors and other service providers, including those relating to the outsourcing of functions as well as the performance of significant banking and other functions by subsidiaries. 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: •potential harm to clients and customers, and any liability associated with that harm •lower revenues, and the opportunity cost from lost revenues •increased operational costs •the imposition of penalties, or •reputational harm.”

Annual report 2025A · The company itself

“JPMorganChase’s liquidity could be impacted by factors such as: •market-wide illiquidity or disruption •actions by governmental authorities, including changes in regulatory requirements relating to liquidity or capital •actions taken by the Federal Reserve to reduce its balance sheet, which could reduce deposits held by JPMorganChase and other financial institutions •inability to sell assets, or to sell at favorable times or prices •default by a CCP or other significant market participant •unanticipated outflows of cash or collateral •unexpected loss of deposits, including due to deposit pricing or migration to other investment products •higher than anticipated draws on lending-related commitments, and •lack of market or customer confidence in JPMorganChase or financial institutions in general.”

Annual report 2025A · The company itself

“Both physical risks and transition risks associated with climate change could negatively impact JPMorganChase and its clients and customers. Physical risks include the increased frequency or severity of acute weather events and shifting climate patterns, which may lead to lower asset values, increased insurance costs, and business and supply chain disruptions. Transition risks, including evolving regulatory requirements, carbon taxes and the adoption of new technologies to support lower-carbon operations, may increase compliance and operational costs, contribute to commodity price volatility and impact the profitability of clients and customers that are adapting to a low-carbon economy. Any of these impacts could have a negative effect on the financial condition of JPMorganChase, the financial condition or creditworthiness of JPMorganChase’s clients and customers, JPMorganChase’s exposure to affected companies and markets, or the effectiveness of JPMorganChase’s existing business strategy.”

Annual report 2025A · The company itself

“Market Adverse economic and market events and conditions could negatively affect JPMorganChase’s results of operations and investment and market-making positions. JPMorganChase’s results of operations could be negatively affected by the occurrence or persistence of adverse changes in any of the following: •the U.S. and global economies •investor, consumer and business sentiment, or confidence in the financial markets •inflation, deflation, recession or employment •the availability and cost of capital, liquidity and credit •levels and volatility of interest rates, credit spreads or market prices of currencies, securities and 14 commodities, and the duration of any such changes, and •economic and geopolitical effects of extraordinary events beyond JPMorganChase’s control. 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 governmental authorities.”

Annual report 2025A · The company itself

“JPMorganChase’s liquidity and cost of funding could be adversely affected by downgrades in its credit ratings. JPMorgan Chase & Co. and certain of its principal subsidiaries are rated by credit rating agencies, which evaluate general, firm-specific and industry-specific factors when determining credit ratings, including: •expected future profitability •risk management practices •legal expenses •regulatory developments •ratings differentials between bank holding companies and their bank and non-bank subsidiaries •assumptions about government support, and •economic and geopolitical developments. JPMorganChase has experienced credit ratings downgrades in the past, and there is no assurance that JPMorganChase’s credit ratings will not be downgraded in the future.”

Annual report 2025A · The company itself

“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 one or more market participants, 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 problem. JPMorganChase’s businesses could be significantly disrupted by such an event, especially if it has significant interrelationships with, and credit exposure to, the faltering market participant, or if the event causes other market participants to default, incur significant losses or experience liquidity issues.”

Annual report 2025A · The company itself

“Both physical risks and transition risks associated with climate change could negatively impact JPMorganChase and its clients and customers. Physical risks include the increased frequency or severity of acute weather events and shifting climate patterns, which may lead to lower asset values, increased insurance costs, and business and supply chain disruptions. Transition risks, including evolving regulatory requirements, carbon taxes and the adoption of new technologies to support lower-carbon operations, may increase compliance and operational costs, contribute to commodity price volatility and impact the profitability of clients and customers that are adapting to a low-carbon economy. Any of these impacts could have a negative effect on the financial condition of JPMorganChase, the financial condition or creditworthiness of JPMorganChase’s clients and customers, JPMorganChase’s exposure to affected companies and markets, or the effectiveness of JPMorganChase’s existing business strategy.”

Annual report 2025A · The company itself

“JPMorganChase’s consumer businesses are particularly affected by U.S. and global economic conditions, including: •the distribution of personal and household income •unemployment or underemployment •changes in housing prices •the level of inflation and its effect on prices for goods and services •consumer and small business confidence levels •prolonged periods of exceptionally high or low interest rates, or significant changes to interest rates •changes in the value of collateral such as residential real estate and vehicles, and •changes in consumer spending or in the level of consumer debt. High unemployment levels could reduce personal and household income, which could degrade consumer credit performance if consumers struggle to service their debts. Adverse economic conditions could also lead to an increase in delinquencies, an increase in the allowance for credit losses or higher net charge-offs, which could reduce JPMorganChase’s earnings.”

Annual report 2025A · The company itself

“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: •lending and other extensions of credit to consumers •payments processing •cryptocurrency, including stablecoins •tokenized securities, and •online automated algorithmic-based investment advice.”

Annual report 2025A · The company itself

“Furthermore, both financial institutions and their non-banking competitors face the risk of disruption to payments processing and other products and services from the use of new technologies that may not require intermediation, such as tokenized securities or other products that leverage distributed ledger technology.”

Annual report 2025A · The company itself

“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 clients.”

Annual report 2025A · The company itself

“For example, clients that rely on rental income from commercial real estate properties could be negatively affected by sustained adverse economic conditions or circumstances (such as hybrid work models) that reduce tenancies. These types of developments could depress property values, impair the ability of clients to service or refinance their loans and lead to an increase in foreclosures. These consequences could result in JPMorganChase experiencing 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.”

Annual report 2025A · The company itself

“MARKET RISK MANAGEMENT Market risk is the risk associated with the effect of changes in market factors such as interest and foreign exchange rates, equity and commodity prices, credit spreads or implied volatilities, on the value of assets and liabilities held for both the short and long term.”

Annual report 2025A · The company itself