JPMORGAN CHASE & CO. - Irish Stock Exchange

RISK FACTORS
The risk factors described below as well as the other information included, or incorporated by reference, in this Base
Prospectus, or included or incorporated by reference in any Prospectus and in any amendment or Supplement to this
Base Prospectus may be material for the purpose of assessing (i) the business risks that may affect the Issuer’s
business and profitability and (ii) the market risks associated with the Notes issued under the Programme. The
business, financial condition or results of operations of the Issuer could be materially adversely affected by any of
these risks. Prior to making an investment decision, prospective investors should consider carefully, in light of their
own financial circumstances and investment objectives, (i) all the information set forth in this Base Prospectus, any
Prospectus and any amendment or supplement to this Base Prospectus and, in particular, the risk factors set forth
below (which the Issuer, in its reasonable opinion, believes represents or may represent the risk factors known to it
which may affect the Issuer’s ability to fulfil its obligations under the Notes) and (ii) all the information set forth in
the applicable Final Terms. The following risk factors are contingencies which may or may not occur and the Issuer
is not in a position to express a view on the likelihood of any such contingency occurring.
Business Risks Applicable to the Issuer’s Business
Risks of holders of securities in a financial holding company
JPMorgan Chase is a financial holding company which depends on the dividends, distributions and other payments from
its subsidiaries to fund its debt obligations, including its obligations to make payments on the Notes. The Issuer’s right
to participate as a shareholder in any distribution of assets of any subsidiary upon liquidation or reorganisation or
otherwise (and thus the ability of holders of Notes to benefit as creditors of the Issuer from such distribution) is subject
to the prior claims of creditors of any such subsidiary. Consequently, the Issuer’s debt securities, including the Notes
issued under the Programme, will be effectively subordinated to all existing and future liabilities and obligations of any
such subsidiary. Many of the Issuer’s subsidiaries, particularly its depositary institutions, JPMorgan Chase Bank,
National Association and Chase Bank USA, National Association, are also subject to laws that authorise regulatory
bodies, such as the U.S. Federal Deposit Insurance Corporation, to limit or reduce the flow of funds to the parent
company.
Risks related to JPMorgan Chase
JPMorgan Chase’s results of operations could be adversely affected by U.S. and international markets and
economic conditions
U.S. and global financial markets and economic conditions have a significant impact on JPMorgan Chase’s businesses.
Factors such as the liquidity of the global financial markets; the level and volatility of debt and equity prices, interest
rates and commodities prices; investor sentiment; inflation; the availability and cost of capital and credit; and the degree
to which U.S. or international economies are expanding or experiencing recessionary pressures can affect significantly
the activity level of clients with respect to size, number and timing of transactions involving JPMorgan Chase’s
investment and commercial banking businesses, including its underwriting and advisory businesses. A market downturn
can lead to a decline in the volume of transactions that JPMorgan Chase executes for its customers and, therefore, lead
to a decline in the revenue JPMorgan Chase receives from trading commissions and spreads. Lower market volatility
reduces trading and arbitrage opportunities, which could lead to lower trading revenue. Higher interest rates, widening
credit spreads or less liquidity or other weakness in the markets also could adversely affect the number or size of
underwritings JPMorgan Chase manages on behalf of clients and affect the willingness of financial sponsors or investors
to participate in loan syndications or underwritings managed by JPMorgan Chase.
JPMorgan Chase generally maintains large trading portfolios in the fixed income, currency, commodity and equity
markets and has significant investment positions, including any merchant banking investments held. The revenue
derived from mark-to-market values of JPMorgan Chase’s businesses are affected by many factors, including its credit
standing; its success in proprietary positioning; volatility in interest rates and equity, debt and commodities markets;
credit spreads and availability of liquidity in the capital markets, and other economic and business factors. JPMorgan
Chase anticipates that revenue relating to its trading will continue to experience volatility and there can be no assurance
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