JPM · 10-Q · 2026Q2 · Full report

FX / Currency Headwinds

JPMORGAN CHASE & CO · 2026-08-06 · Importance 77 · Surprise 82

JPMorgan uses foreign-exchange derivatives to hedge currency risk in long-term debt, available-for-sale securities, and non-U.S.-dollar-denominated revenue and expenses. Net-investment hedge foreign-exchange derivatives generated a $6.3 billion OCI loss for the six months ended June 30, 2026, compared with a $1.1 billion OCI gain in the prior-year period. The hedging program therefore creates material accumulated-OCI volatility tied to changes in foreign exchange rates, although the filing states that reclassifications from AOCI associated with net-investment hedges were not material. Foreign-currency hedge results are recorded primarily in principal transactions revenue, net interest income, noninterest revenue, and compensation expense depending on the hedged item.