Interest rates and interest differential analysis of net interest income – U.S. and non-U.S. the location of the office recording the transaction. Intercompany funding generally consists of dollar-denominated deposits originated in various locations that are centrally managed by Treasury and CIO. Presented below is a summary of interest rates and interest differentials segregated between U.S. and non-U.S. operations for the years 2016 through 2018. The segregation of U.S. and non-U.S. components is based on (Table continued on next page) Effective January 1, 2018, the Firm adopted several new accounting standards. Certain of the new accounting standards were applied retrospectively and, accordingly, prior period amounts were revised. For additional information, refer to Note 1. (a) Includes commercial paper. (b) Represents the amount of noninterest-bearing liabilities funding interest-earning assets. (c) Negative interest income and yield is related to client-driven demand for certain securities combined with the impact of low interest rates; this is matched book activity and the negative interest expense on the corresponding securities loaned is recognized in interest expense and reported within trading liabilities – debt, short-term and all other interest-bearing liabilities. JPMorgan Chase & Co./2018 Form 10-K 290 2018 (Unaudited) Year ended December 31, (Taxable-equivalent interest and rates; in millions, except rates) Average balance Interest Average rate Interest-earning assets Deposits with banks: U.S. $ 305,117 $ 5,703 1.87% Non-U.S. 100,397 204 0.20 Federal funds sold and securities purchased under resale agreements: U.S. 102,144 2,427 2.38 Non-U.S. 115,006 1,392 1.21 Securities borrowed: U.S. 77,027 640 0.83 Non-U.S. 38,055 88 0.23 Trading assets – debt instruments: U.S. 141,134 5,068 3.59 Non-U.S. 119,917 3,695 3.08 Investment securities: U.S. 200,883 6,943 3.46 Non-U.S. 35,805 697 1.95 Loans: U.S. 864,149 45,395 5.25 Non-U.S. 80,736 2,401 2.97 All other interest-earning assets, predominantly U.S. 48,818 3,417 7.00 Total interest-earning assets 2,229,188 78,070 3.50 Interest-bearing liabilities Interest-bearing deposits: U.S. 816,305 4,562 0.56 Non-U.S. 244,300 1,411 0.58 Federal funds purchased and securities loaned or sold under repurchase agreements: U.S. 117,754 2,562 2.18 Non-U.S. 71,528 504 0.70 Trading liabilities – debt, short-term and all other interest-bearing liabilities: (a) U.S. 150,694 3,389 2.25 Non-U.S. 90,990 1,484 1.63 Beneficial interests issued by consolidated VIEs, predominantly U.S. 21,079 493 2.34 Long-term debt: U.S. 256,220 7,954 3.10 Non-U.S. 20,194 24 0.12 Intercompany funding: U.S. (51,933) (746) — Non-U.S. 51,933 746 — Total interest-bearing liabilities 1,789,064 22,383 1.25 Noninterest-bearing liabilities (b) 440,124 Total investable funds $ 2,229,188 $ 22,383 1.00% Net interest income and net yield: $ 55,687 2.50% U.S. 50,236 2.91 Non-U.S. 5,451 1.09 Percentage of total assets and liabilities attributable to non-U.S. operations: Assets 24.7 Liabilities 22.3