1 q09 financial-supplement

EARNINGS RELEASE FINANCIAL SUPPLEMENT
FIRST QUARTER 2009

JPMORGAN CHASE & CO.
TABLE OF CONTENTS
Page

Consolidated Results
Consolidated Financial Highlights
Statements of Income
Consolidated Balance Sheets
Condensed Average Balance Sheets and Annualized Yields
Reconciliation from Reported to Managed Summary

2
3
4
5
6

Business Detail
Line of Business Financial Highlights - Managed Basis
Investment Bank
Retail Financial Services
Card Services - Managed Basis
Commercial Banking
Treasury & Securities Services
Asset Management
Corporate/Private Equity

7
8
11
17
20
22
24
27

Credit-Related Information

29

Market Risk-Related Information

34

Supplemental Detail
Capital, Intangible Assets and Deposits
Per Share-Related Information

35
36

Glossary of Terms

37

Page 1

CONSOLIDATED FINANCIAL HIGHLIGHTS
(in millions, except per share, ratio and headcount data)
QUARTERLY TRENDS
1Q09 Change
1Q09
SELECTED INCOME STATEMENT DATA:
Reported Basis
Total net revenue
Total noninterest expense
Pretax pre-provision profit
Provision for credit losses
Income (loss) before extraordinary gain
Extraordinary gain
NET INCOME
Managed Basis (a)
Total net revenue
Total noninterest expense
Pretax pre-provision profit
Extraordinary gain
NET INCOME

4Q08

3Q08

2Q08

1Q08

4Q08

1Q08

$

25,025
13,373
11,652
8,596
2,141
2,141

$

17,226
11,255
5,971
7,313
(623)
1,325
702

$

14,737
11,137
3,600
5,787
(54)
581
527

$

18,399
12,177
6,222
3,455
2,003
2,003

$

16,890
8,931
7,959
4,424
2,373
2,373

45 %
19
95
18
NM
NM
205

48 %
50
46
94
(10)
(10)

$

26,922
13,373
13,549
10,060
2,141
2,141

$

19,108
11,255
7,853
8,541
(623)
1,325
702

$

16,088
11,137
4,951
6,660
(54)
581
527

$

19,678
12,177
7,501
4,285
2,003
2,003

$

17,898
8,931
8,967
5,105
2,373
2,373

41
19
73
18
NM
NM
205

50
50
51
97
(10)
(10)

PER COMMON SHARE:
Basic Earnings (b)
Net income

0.40
0.40

(0.29)
0.06

(0.08)
0.09

0.54
0.54

0.67
0.67

NM
NM

(40)
(40)

Diluted Earnings (b)
Net income

0.40
0.40

(0.29)
0.06

(0.08)
0.09

0.53
0.53

0.67
0.67

NM
NM

(40)
(40)

Cash dividends declared
Book value
Closing share price
Market capitalization

0.05
36.78
26.58
99,881

0.38
36.15
31.53
117,695

0.38
36.95
46.70
174,048

0.38
37.02
34.31
117,881

0.38
36.94
42.95
146,066

(87)
2
(16)
(15)

(87)
(38)
(32)

COMMON SHARES OUTSTANDING:
Weighted-average diluted shares outstanding (b)
Common shares outstanding at period-end

3,758.7
3,757.7

3,737.5
3,732.8

3,444.6
3,726.9

3,453.1
3,435.7

3,423.3
3,400.8

1
1

10
10

1,642,862
231,297
305,759
761,626
125,627
76,285

(4)
(8)
(3)
(10)
2
4

27
5
52
19
10
14

182,166

(2)

21

FINANCIAL RATIOS: (c)
Income (loss) before extraordinary gain:
Return on common equity ("ROE")
Return on equity-goodwill ("ROE-GW") (d)
Return on assets ("ROA")
Net income:
ROE
ROE-GW (d)
ROA

5 %
7
0.42

6
10
0.48

%

8
12
0.61

$

1
1
0.13

1
2
0.12

6
10
0.48

10.9
14.8

8.9
12.6

9.2
13.4

8.3
12.5

2,079,188
242,284
465,959
906,969
138,201
87,232

$

219,569

$

$

%

8
12
0.61

11.3 (f)
15.1 (f)

Headcount
LINE OF BUSINESS NET INCOME (LOSS)
Investment Bank
Card Services
Commercial Banking
Asset Management
Net income

(1) %
(1)
(0.01)

5
7
0.42

CAPITAL RATIOS:
Tier 1 capital ratio
Total capital ratio
SELECTED BALANCE SHEET DATA (Period-end)
Total assets
Wholesale loans
Consumer loans
Deposits
Common stockholders' equity
Tangible common equity (e)

(3) %
(5)
(0.11)

1,606
474
(547)
338
308
224
(262)
2,141

2,175,052
262,044
482,854
1,009,277
134,945
84,054

$

224,961

$

$

(2,364)
624
(371)
480
533
255
1,545
702

2,251,469
288,445
472,936
969,783
137,691
88,467

$

228,452

$

$

882
64
292
312
406
351
(1,780)
527

1,775,670
229,359
308,670
722,905
127,176
77,903

$

195,594

$

$

394
503
250
355
425
395
(319)
2,003

$

$

(87)
(311)
609
292
403
356
1,111
2,373

NM
(24)
(47)
(30)
(42)
(12)
NM
205

NM
NM
NM
16
(24)
(37)
NM
(10)

(a)
(b)
(c)
(d)

For further discussion of managed basis, see Reconciliation from reported to managed summary on page 6.
Effective January 1, 2009, the Firm adopted FSP EITF 03-6-1. Accordingly, prior period numbers have been revised as required. For further discussion of this FSP, see Per share-related information on page 36.
Quarterly ratios are based upon annualized amounts.
Net income applicable to common stock divided by total average common equity (net of goodwill). The Firm uses return on equity less goodwill, a non-GAAP financial measure, to evaluate the operating
performance of the Firm. The Firm also utilizes this measure to facilitate comparisons to competitors.
(e) Tangible common equity ("TCE") represents common stockholders' equity (i.e., total stockholders' equity less preferred stock) less identifiable intangible assets (other than MSRs) and goodwill, net of related
deferred tax liabilities. For further discussion of TCE, see Capital, intangible assets and deposits on page 35.
(f) Estimated.
Page 2

STATEMENTS OF INCOME
(in millions, except per share and ratio data)
QUARTERLY TRENDS
1Q09 Change
1Q09
REVENUE
Investment banking fees
Principal transactions
Lending & deposit-related fees
Asset management, administration and commissions
Securities gains
Mortgage fees and related income
Credit card income
Other income
Noninterest revenue

$

Interest income
Interest expense
Net interest income

4Q08

1,386
2,001
1,688
2,897
198
1,601
1,837
50
11,658

$

3Q08

1,382
(7,885)
1,776
3,234
456
1,789
2,049
593
3,394

$

2Q08

1,316
(2,763)
1,168
3,485
424
457
1,771
(115)
5,743

$

1Q08

1,612
752
1,105
3,628
647
696
1,803
(138)
10,105

$

4Q08

1,216
(803)
1,039
3,596
33
525
1,796
1,829
9,231

1Q08
- %
NM
(5)
(10)
(57)
(11)
(10)
(92)
243

14 %
NM
62
(19)
500
205
2
(97)
26

17,926
4,559
13,367

21,631
7,799
13,832

17,326
8,332
8,994

16,529
8,235
8,294

17,532
9,873
7,659

(17)
(42)
(3)

2
(54)
75

TOTAL NET REVENUE

25,025

17,226

14,737

18,399

16,890

45

48


8,596

7,313

5,787

3,455

4,424

18

94

7,588
885
1,146
1,515
384
1,375
275
205
13,373

5,024
955
1,207
1,819
501
1,242
326
181
11,255

5,858
766
1,112
1,451
453
1,096
305
96
11,137

6,913
669
1,028
1,450
413
1,233
316
155
12,177

4,951
648
968
1,333
546
169
316
8,931

51
(7)
(5)
(17)
(23)
11
(16)
13
19

53
37
18
14
(30)
NM
(13)
NM
50

3,056
915
2,141
2,141

$

(1,342)
(719)
(623)
1,325
702

$

(2,187)
(2,133)
(54)
581
527

$

2,767
764
2,003
2,003

$

3,535
1,162
2,373
2,373

NM
NM
NM
NM
205

(14)
(21)
(10)
(10)

0.40
0.40

$

(0.29)
0.35
0.06

$

(0.08)
0.17
0.09

$

0.53
0.53

$

0.67
0.67

NM
NM
NM

(40)
(40)

2,373
2,373

NM
13
NM

(10)
NM
(4)

0.67
0.67

NM
NM

(40)
NM
(36)

NONINTEREST EXPENSE
Compensation expense
Occupancy expense
Technology, communications and equipment expense
Professional & outside services
Marketing
Other expense
Amortization of intangibles
Merger costs
TOTAL NONINTEREST EXPENSE
Income (loss) before income tax expense and extraordinary gain
Income tax expense (benefit) (a)
Extraordinary gain (b)
NET INCOME

$

DILUTED EARNINGS PER SHARE
Income (loss) before extraordinary gain (c)
Extraordinary gain
NET INCOME (c)

$

$

FINANCIAL RATIOS
Income (loss) before extraordinary gain:
ROE
ROE-GW
ROA
Net income:
ROE
ROE-GW
ROA
Effective income tax rate (a)
Overhead ratio
EXCLUDING IMPACT OF MERGER COSTS (d)
Merger costs (after-tax)
Income (loss) before extraordinary gain excluding merger costs
Diluted Per Share:
Income (loss) before extraordinary gain (c)
Merger costs (after-tax)
Income (loss) before extraordinary gain excluding merger costs (c)

5
7
0.42

$

%

(3) %
(5)
(0.11)

5
7
0.42
30
53

$
$

$
$

2,141
127
2,268

0.40
0.03
0.43

$

(1) %
(1)
(0.01)

1
1
0.13
54
65

$
$

$
$

(623)
112
(511)

(0.29)
0.03
(0.26)

$

6
10
0.48

1
2
0.12
98
76

$
$

$
$

$

%

8
12
0.61

6
10
0.48
28
66

(54)
60
6

$

(0.08)
0.02
(0.06)

$

$

$

%

8
12
0.61
33
53

2,003
96
2,099

$

0.53
0.03
0.56

$

$

$

(a) The income tax benefit in the third quarter of 2008 includes the realization of a benefit from the release of deferred tax liabilities associated with the undistributed earnings of certain non-U.S. subsidiaries that were deemed to
be reinvested indefinitely.
(b) On September 25, 2008, JPMorgan Chase acquired the banking operations of Washington Mutual Bank from the Federal Deposit Insurance Corporation for $1.9 billion. The fair value of the net assets acquired exceeded
the purchase price which resulted in negative goodwill. In accordance with SFAS 141, noncurrent nonfinancial assets that are not held-for-sale were written down against that negative goodwill. The negative goodwill remaining of
$581 million after writing down nonfinancial assets was recognized as an extraordinary gain in the third quarter of 2008. As a result of refining the purchase price allocation during the fourth quarter of 2008, an additional gain of
$1.3 billion was recognized.
(c) Effective January 1, 2009, the Firm adopted FSP EITF 03-6-1. Accordingly, prior period numbers have been revised as required. For further discussion of this FSP, see Per share-related information on page 36.
(d) Net income excluding merger costs, a non-GAAP financial measure, is used by the Firm to facilitate comparison of results against the Firm's ongoing operations and with other companies' U.S. GAAP financial
statements.

Page 3

CONSOLIDATED BALANCE SHEETS
(in millions)

Mar 31
2009
ASSETS
Cash and due from banks
Deposits with banks
Federal funds sold and securities purchased under resale agreements
Securities borrowed
Trading assets:
Debt and equity instruments
Derivative receivables
Securities
Loans (net of allowance for loan losses)
Accrued interest and accounts receivable
Premises and equipment
Goodwill
Other intangible assets:
Mortgage servicing rights
Purchased credit card relationships
All other intangibles
Other assets (a)
TOTAL ASSETS
LIABILITIES
Deposits
Federal funds purchased and securities loaned or sold under
repurchase agreements
Commercial paper
Other borrowed funds (a)
Trading liabilities:
Debt and equity instruments
Derivative payables
Accounts payable and other liabilities
(including the allowance for lending-related commitments)
Beneficial interests issued by consolidated VIEs
Long-term debt
Junior subordinated deferrable interest debentures held by trusts that issued
guaranteed capital debt securities
TOTAL LIABILITIES
STOCKHOLDERS' EQUITY
Preferred stock
Common stock
Capital surplus
Retained earnings
Accumulated other comprehensive income (loss)
Shares held in RSU trust
Treasury stock, at cost
TOTAL STOCKHOLDERS' EQUITY
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

26,681
89,865
157,237
127,928

Dec 31
2008
$

26,895
138,139
203,115
124,000

Sep 30
2008
$

54,350
34,372
233,668
152,050

Jun 30
2008
$

32,255
17,150
176,287
142,854

Mar 31
2008
$

Mar 31, 2009
Change
Dec 31
Mar 31
2008
2008

46,888
12,414
203,176
81,014

(1) %
(35)
(23)
3

(43) %
NM
(23)
58

298,453
131,247
333,861
680,862
52,168
10,336
48,201

347,357
162,626
205,943
721,734
60,987
10,045
48,027

401,609
118,648
150,779
742,329
104,232
9,962
46,121

409,608
122,389
119,173
524,783
64,294
11,843
45,993

386,170
99,110
101,647
525,310
50,989
9,457
45,695

(14)
(19)
62
(6)
(14)
3
-

(23)
32
228
30
2
9
5

$

10,634
1,528
3,821
106,366
2,079,188

$

9,403
1,649
3,932
111,200
2,175,052

$

17,048
1,827
3,653
180,821
2,251,469

$

11,617
1,984
3,675
91,765
1,775,670

$

8,419
2,140
3,815
66,618
1,642,862

13
(7)
(3)
(4)
(4)

26
(29)
60
27

$

906,969

$

1,009,277

$

969,783

$

722,905

$

761,626

(10)

19

279,837
33,085
112,257

224,075
54,480
167,827

194,724
50,151
22,594

192,633
50,602
28,430

45
(13)
(15)

45
(35)
295

53,786
86,020

45,274
121,604

76,213
85,816

87,841
95,749

78,982
78,983

19
(29)

(32)
9

165,521
9,674
243,569

187,978
10,561
252,094

260,563
11,437
238,034

171,004
20,071
260,192

106,088
14,524
189,995

(12)
(8)
(3)

56
(33)
28

18,276
1,908,994

$

192,546
37,845
132,400

18,589
2,008,168

17,398
2,105,626

17,263
1,642,494

15,372
1,517,235

(2)
(5)

19
26

31,993
3,942
91,469
55,487
(4,490)
(86)
(8,121)
170,194
2,079,188

31,939
3,942
92,143
54,013
(5,687)
(217)
(9,249)
166,884
2,175,052

8,152
3,942
90,535
55,217
(2,227)
(267)
(9,509)
145,843
2,251,469

6,000
3,658
78,870
56,313
(1,566)
(269)
(9,830)
133,176
1,775,670

3,658
78,072
55,762
(512)
(11,353)
125,627
1,642,862

(1)
3
21
60
12
2
(4)

NM
8
17
NM
NM
28
35
27

$

$

$

$

(a) On September 19, 2008, the Federal Reserve established a special lending facility, the AML Facility, to provide liquidity to eligible money market mutual funds. The Firm participated in the AML Facility and had
ABCP investments totaling $6.0 billion, $11.2 billion, and $61.3 billion at March 31, 2009, December 31, 2008, and September 30, 2008, respectively. These ABCP investments were recorded in other assets with
the corresponding nonrecourse liability to the Federal Reserve Bank of Boston for the same amounts recorded in other borrowed funds.

Page 4

CONDENSED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
(in millions, except rates)
QUARTERLY TRENDS
1Q09 Change
1Q09
AVERAGE BALANCES
ASSETS
Deposits with banks
Federal funds sold and securities purchased
under resale agreements
Securities borrowed
Trading assets - debt instruments
Securities
Loans
Other assets (a)
Total interest-earning assets
Trading assets - equity instruments
Goodwill
Other intangible assets:
Mortgage servicing rights
All other intangible assets
All other noninterest-earning assets
TOTAL ASSETS
LIABILITIES
Interest-bearing deposits
Federal funds purchased and securities loaned or sold under
repurchase agreements
Commercial paper
Other borrowings and liabilities (b)
Long-term debt
Total interest-bearing liabilities
Noninterest-bearing liabilities
TOTAL LIABILITIES
Preferred stock
Common stockholders' equity
TOTAL STOCKHOLDERS' EQUITY
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY

$

4Q08

88,587

$

3Q08

(17) %

177 %

155,664
100,322
302,053
109,834
537,964
15,629
1,260,279
99,525
45,781

153,864
83,490
322,986
89,757
526,598
1,208,670
78,810
45,699

(22)
(2)
(6)
61
(3)
(51)
(2)
(14)
3

5
45
(22)
214
38
NM
37
(20)
5

$

11,141
5,443
281,503
2,067,119

$

14,837
5,586
339,887
2,167,865

$

11,811
5,512
267,525
1,756,359

$

9,947
5,823
247,344
1,668,699

$

8,273
6,202
222,143
1,569,797

(25)
(3)
(17)
(5)

35
(12)
27
32

$

736,460

$

777,604

$

589,348

$

612,305

$

600,132

(5)

23

179,897
47,584
107,552
14,082
200,354
1,149,601
295,616
1,445,217
124,580
124,580

11
(17)
(10)
3
4
(3)
(14)
(5)
29
(2)
3

26
(29)
120
(31)
29
31
34
31
NM
10
35

1,569,797

(5)

32

2,067,119

$

$

200,032
47,579
161,821
11,431
261,385
1,271,596
351,023
1,622,619
7,100
126,640
133,740

2,167,865

$

38,813

$

203,348
47,323
111,477
17,990
229,336
1,221,779
315,965
1,537,744
4,549
126,406
130,955

1,756,359

$

1,668,699

$

31,975

1Q08

164,980
134,651
298,760
119,443
536,890
37,237
1,333,264
92,300
45,947

203,568
40,486
264,236
9,440
248,125
1,543,459
460,894
2,004,353
24,755
138,757
163,512

41,303

4Q08

205,182
123,523
269,576
174,652
752,524
56,322
1,687,935
72,782
46,838

$

$

1Q08

160,986
120,752
252,098
281,420
726,959
27,411
1,658,213
62,748
48,071

226,110
33,694
236,673
9,757
258,732
1,501,426
397,243
1,898,669
31,957
136,493
168,450

106,156

2Q08

AVERAGE RATES
INTEREST-EARNING ASSETS
Deposits with banks
Federal funds sold and securities purchased
under resale agreements
Securities borrowed
Trading assets - debt instruments
Securities
Loans
Other assets (a)
Total interest-earning assets
INTEREST-BEARING LIABILITIES
Interest-bearing deposits
Federal funds purchased and securities sold
under repurchase agreements
Commercial paper
Other borrowings and liabilities (b)
Long-term debt
Total interest-bearing liabilities
INTEREST RATE SPREAD
NET YIELD ON INTEREST-EARNING ASSETS
NET YIELD ON INTEREST-EARNING ASSETS
ADJUSTED FOR SECURITIZATIONS

2.03

%

3.34

%

3.04

%

3.87

%

4.22

1.64
0.29
5.27
4.16
5.87
2.44
4.41

2.88
0.92
6.18
5.14
6.44
3.06
5.12

3.76
2.07
6.06
5.09
6.31
3.29
5.22

3.84
2.29
5.59
5.27
6.36
3.97
5.34

3.80
3.56
5.75
5.47
7.10
5.88

0.93

1.53

2.26

2.36

3.09

0.36
0.47
1.46
1.57
2.73
1.23

0.95
1.17
2.56
3.79
3.87
2.01

2.63
2.05
2.84
2.87
3.31
2.61

2.73
2.17
3.77
2.24
3.27
2.71

3.31
3.41
5.03
3.78
3.82
3.45

3.18%
3.29%

3.11%
3.28%

2.61%
2.73%

2.63%
2.71%

2.43%
2.59%

3.60%

3.55%

3.06%

3.06%

%

2.95%

(a) Includes margin loans and the Firm's investment in asset-backed commercial paper under the Federal Reserve Bank of Boston's AML facility.
(b) Includes securities sold but not yet purchased, brokerage customer payables and advances from Federal Home Loan Banks.

Page 5

RECONCILIATION FROM REPORTED TO MANAGED SUMMARY
(in millions)
The Firm prepares its consolidated financial statements using accounting principles generally accepted in the United States of America ("U.S. GAAP"). That presentation, which is referred to as "reported basis,"
provides the reader with an understanding of the Firm's results that can be tracked consistently from year to year and enables a comparison of the Firm's performance with other companies' U.S. GAAP financial
statements.
In addition to analyzing the Firm's results on a reported basis, management reviews the Firm's results and the results of lines of business on a "managed" basis, which is a non-GAAP financial measure. The Firm's
definition of managed basis starts with the reported U.S. GAAP results and includes certain reclassifications that assume credit card loans securitized by Card Services remain on the balance sheet and presents
revenue on a fully taxable-equivalent ("FTE") basis. These adjustments do not have any impact on net income as reported by the lines of business or by the Firm as a whole. The impact of these adjustments are
summarized below. For additional information about managed basis, please refer to the Glossary of Terms on page 37.
QUARTERLY TRENDS
1Q09 Change
1Q09
CREDIT CARD INCOME
Credit card income - reported
Impact of:
Credit card securitizations
Credit card income - managed
OTHER INCOME
Other income - reported
Impact of:
Tax-equivalent adjustments
Other income - managed
TOTAL NONINTEREST REVENUE
Total noninterest revenue - reported
Impact of:
Total noninterest revenue - managed
NET INTEREST INCOME
Net interest income - reported
Impact of:
Net interest income - managed
TOTAL NET REVENUE
Total net revenue - reported
Impact of:
Total net revenue - managed
PRETAX PRE-PROVISION PROFIT
Total pretax pre-provision profit - reported
Impact of:
Total pretax pre-provision profit - managed
PROVISION FOR CREDIT LOSSES
Provision for credit losses - reported
Impact of:
Provision for credit losses - managed
INCOME TAX EXPENSE
Income tax expense (benefit) - reported
Impact of:
Income tax expense (benefit) - managed

4Q08

3Q08

2Q08

1,771

$

1Q08

$

1,837

$

2,049

$

1,803

$

$

(540)
1,297

$

(710)
1,339

$

(843)
928

$

(843)
960

$

1,796
(937)
859

4Q08

1Q08
(10) %

2 %

24
(3)

42
51

$

50

$

593

$

(115)

$

(138)

$

1,829

(92)

(97)

$

337
387

$

556
1,149

$

323
208

$

247
109

$

203
2,032

(39)
(66)

66
(81)

$

11,658

$

3,394

$

5,743

$

10,105

$

9,231

243

26

$

(540)
337
11,455

$

(710)
556
3,240

$

(843)
323
5,223

$

(843)
247
9,509

$

(937)
203
8,497

24
(39)
254

42
66
35

$

13,367

$

13,832

$

8,994

$

8,294

$

7,659

(3)

75

$

2,004
96
15,467

$

1,938
98
15,868

$

1,716
155
10,865

$

1,673
202
10,169

$

1,618
124
9,401

3
(2)
(3)

24
(23)
65

$

25,025

$

17,226

$

14,737

$

18,399

$

16,890

45

48

$

1,464
433
26,922

$

1,228
654
19,108

$

873
478
16,088

$

830
449
19,678

$

681
327
17,898

19
(34)
41

115
32
50

$

11,652

$

5,971

$

3,600

$

6,222

$

7,959

95

46

$

1,464
433
13,549

$

1,228
654
7,853

$

873
478
4,951

$

830
449
7,501

$

681
327
8,967

19
(34)
73

115
32
51

$

8,596

$

7,313

$

5,787

$

3,455

$

4,424

18

94

$

1,464
10,060

$

1,228
8,541

$

873
6,660

$

830
4,285

$

681
5,105

19
18

115
97

$

915

$

(719)

$

(2,133)

$

764

$

1,162

NM

(21)

$

433
1,348

$

654
(65)

$

478
(1,655)

$

449
1,213

$

327
1,489

(34)
NM

32
(9)

Page 6

LINE OF BUSINESS FINANCIAL HIGHLIGHTS - MANAGED BASIS
(in millions, except ratio data)
QUARTERLY TRENDS
1Q09 Change
1Q09
TOTAL NET REVENUE (FTE)
Investment Bank
Card Services
Commercial Banking
Asset Management
TOTAL NET REVENUE
TOTAL PRETAX PRE-PROVISION PROFIT
Investment Bank
Card Services
Commercial Banking
Asset Management
TOTAL PRETAX PRE-PROVISION PROFIT
NET INCOME (LOSS)
Investment Bank
Card Services
Commercial Banking
Asset Management
TOTAL NET INCOME
AVERAGE EQUITY (a)
Investment Bank
Card Services
Commercial Banking
Asset Management
TOTAL AVERAGE EQUITY
RETURN ON EQUITY (a)
Investment Bank
Card Services
Commercial Banking
Asset Management

$

$

$

$

$

$

$

$

4Q08

8,341
8,835
5,129
1,402
1,821
1,703
(309)
26,922

$

$

3,567
4,664
3,783
849
502
405
(221)
13,549

$

1,606
474
(547)
338
308
224
(262)
2,141

$

33,000
25,000
15,000
8,000
5,000
7,000
43,493
136,493

20 %
8
(15)
17
25
13

$

$

$

$

3Q08

(302)
8,684
4,908
1,479
2,249
1,658
432
19,108

$

$

(3,043)
4,638
3,419
980
910
445
504
7,853

$

(2,364)
624
(371)
480
533
255
1,545
702

$

33,000
25,000
15,000
8,000
4,500
7,000
46,257
138,757

(28) %
10
(10)
24
47
14

$

$

$

$

2Q08

4,035
4,963
3,887
1,125
1,953
1,961
(1,836)
16,088

$

$

219
2,184
2,693
639
614
599
(1,997)
4,951

$

882
64
292
312
406
351
(1,780)
527

$

$

$

26,000
17,000
14,100
7,000
3,500
5,500
53,540
126,640

13
1
8
18
46
25

$

$

%

1Q08

5,470
5,110
3,775
1,106
2,019
2,064
134
19,678

$

$

736
2,430
2,590
630
702
664
(251)
7,501

$

394
503
250
355
425
395
(319)
2,003

$

$

$

23,319
17,000
14,100
7,000
3,500
5,066
56,421
126,406

7
12
7
20
49
31

$

$

%

4Q08

3,011
4,763
3,904
1,067
1,913
1,901
1,339
17,898

1Q08
NM %
2
5
(5)
(19)
3
NM
41

177 %
85
31
31
(5)
(10)
NM
50

458
2,191
2,632
582
685
578
1,841
8,967

NM
1
11
(13)
(45)
(9)
NM
73

NM
113
44
46
(27)
(30)
NM
51

(87)
(311)
609
292
403
356
1,111
2,373

NM
(24)
(47)
(30)
(42)
(12)
NM
205

NM
NM
NM
16
(24)
(37)
NM
(10)

11
(6)
(2)

50
47
6
14
43
40
(22)
10

22,000
17,000
14,100
7,000
3,500
5,000
55,980
124,580

(2) %
(7)
17
17
46
29

(a) Each business segment is allocated capital by taking into consideration stand-alone peer comparisons, economic risk measures and regulatory capital requirements. The amount of capital
assigned to each business is referred to as equity.
Page 7

INVESTMENT BANK
FINANCIAL HIGHLIGHTS
QUARTERLY TRENDS
1Q09 Change
1Q09
INCOME STATEMENT
REVENUE
Investment banking fees
All other income
Noninterest revenue
Net interest income
TOTAL NET REVENUE (a)

$

4Q08

1,380
3,515
138
692
(86)
5,639
2,702
8,341

$

3Q08

1,373
(6,160)
138
764
109
(3,776)
3,474
(302)

$

2Q08

1,593
(922)
118
847
(279)
1,357
2,678
4,035

$

1Q08

1,735
838
105
709
(226)
3,161
2,309
5,470

$

4Q08

1,206
(798)
102
744
(66)
1,188
1,823
3,011

1Q08

1 %
NM
(9)
NM
NM
(22)
NM

Credit reimbursement from TSS (b)

1,210
30

765
30

234
31

398
30

618
30

58
-

NONINTEREST EXPENSE
Noncompensation expense

3,330
1,444
4,774

1,166
1,575
2,741

2,162
1,654
3,816

3,132
1,602
4,734

1,241
1,312
2,553

186
(8)
74

Income (loss) before income tax expense
Income tax expense (benefit) (c)
NET INCOME (LOSS)

2,387
781
1,606

(3,778)
(1,414)
(2,364)

$

FINANCIAL RATIOS
ROE
ROA
Overhead ratio
Compensation expense as a % of total net revenue
REVENUE BY BUSINESS
Investment banking fees:
Advisory
Equity underwriting
Debt underwriting
Total investment banking fees
Fixed income markets
Equity markets
Credit portfolio
Total net revenue
REVENUE BY REGION
Americas
Europe/Middle East/Africa
Asia/Pacific
Total net revenue

$

20 %
0.89
57
40

$

$

$

$

$

(28) %
(1.08)
NM
NM

479
308
593
1,380
4,889
1,773
299
8,341

$

4,780
2,588
973
8,341

$

$

$

16
(866)
882

$

13 %
0.39
95
54

579
330
464
1,373
(1,671)
(94)
90
(302)

$

(2,223)
2,019
(98)
(302)

$

$

$

368
(26)
394

$

7 %
0.19
87
57

576
518
499
1,593
815
1,650
(23)
4,035

$

1,052
2,509
474
4,035

$

$

$

(130)
(43)
(87)

14 %
NM
35
(7)
(30)
375
48
177
96
168
10
87

NM
NM
NM

NM
NM
NM

483
359
364
1,206
466
976
363
3,011

(17)
(7)
28
1
NM
NM
232
NM

(1)
(14)
63
14
NM
82
(18)
177

536
1,641
834
3,011

NM
28
NM
NM

NM
58
17
177

(2) %
(0.05)
85
41

370
542
823
1,735
2,347
1,079
309
5,470

$

3,165
1,512
793
5,470

$

$

$

(a) Total net revenue included tax-equivalent adjustments, predominantly due to income tax credits related to affordable housing investments and tax-exempt income from municipal bond investments,
of $365 million, $583 million, $427 million, $404 million, and $289 million, for the quarters ended March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively.
(b) Treasury & Securities Services ("TSS") was charged a credit reimbursement related to certain exposures managed within the Investment Bank credit portfolio on behalf of clients shared with TSS.
(c) The income tax benefit in the third quarter of 2008 is predominantly the result of reduced deferred tax liabilities on overseas earnings.

Page 8

INVESTMENT BANK
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except headcount and ratio data)
QUARTERLY TRENDS
1Q09 Change
1Q09
Equity
SELECTED BALANCE SHEET DATA (Average)
Total assets
Trading assets - debt and equity instruments
Trading assets - derivative receivables
Loans:
Loans retained (a)
Loans held-for-sale & loans at fair value
Total loans
Adjusted assets (b)
Equity

Net charge-off (recovery) rate (a) (d)
Allowance for loan losses to average loans (a) (d) (e)
Allowance for loan losses to nonperforming loans (c)
Nonperforming loans to average loans

3Q08

2Q08

1Q08

4Q08

1Q08

$

33,000

$

33,000

$

33,000

$

26,000

$

22,000

$

733,166
272,998
125,021

$

869,159
306,168
153,875

$

890,040
360,821
105,462

$

814,860
367,184
99,395

$

755,828
369,456
90,234

(16)
(11)
(19)

(3)
(26)
39

- %

50 %

70,041
12,402
82,443
589,163
33,000

$

73,110
16,378
89,488
685,242
33,000

69,022
17,612
86,634
694,459
26,000

76,239
20,440
96,679
676,777
23,319

74,106
19,612
93,718
662,419
22,000

(4)
(24)
(8)
(14)
-

(5)
(37)
(12)
(11)
50

26,142

Headcount
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs (recoveries)
Nonperforming assets:
Loans (c)
Assets acquired in loan satisfactions
Total nonperforming assets
Allowance for credit losses:
Allowance for loan losses
Allowance for lending-related commitments
Total allowance for credit losses

4Q08

27,938

30,993

37,057

25,780

(6)

1

13

(59)

177

36

$

87

$

13

$

(8)

$

1,795
1,010
236
3,041

1,175
1,079
247
2,501

436
34
113
583

313
76
101
490

321
31
87
439

53
(6)
(4)
22

459
NM
171
NM

4,682
295
4,977

3,444
360
3,804

2,654
463
3,117

2,429
469
2,898

1,891
607
2,498

36
(18)
31

148
(51)
99

0.21 %
6.68
269
2.18

0.47 %
4.71
301
1.31

0.07 %
3.85
657
0.50

(0.04) %
3.19
843
0.32

0.07 %
2.55
683
0.34

(a) Loans retained included credit portfolio loans, leveraged leases and other accrual loans, and excluded loans held-for-sale and loans accounted for at fair value.
(b) Adjusted assets, a non-GAAP financial measure, equals total assets minus (1) securities purchased under resale agreements and securities borrowed less securities sold, not yet purchased; (2) assets of
variable interest entities ("VIEs") consolidated under FIN 46R; (3) cash and securities segregated and on deposit for regulatory and other purposes; (4) goodwill and intangibles; (5) securities received as
collateral; and (6) investments purchased under the Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility. The amount of adjusted assets is presented to assist the reader in comparing
the Investment Bank's ("IB") asset and capital levels to other investment banks in the securities industry. Asset-to-equity leverage ratios are commonly used as one measure to assess a company’s
capital adequacy. IB believes an adjusted asset amount that excludes the assets discussed above, which were considered to have a low risk profile, provides a more meaningful measure of balance sheet
leverage in the securities industry.
(c) Nonperforming loans included loans held-for-sale and loans at fair value of $57 million, $32 million, $32 million, $25 million, and $44 million, at March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008,
March 31, 2008, respectively, which were excluded from the allowance coverage ratios. Nonperforming loans excluded distressed loans held-for-sale that were purchased as part of IB's proprietary activities.
(d) Loans held-for-sale and loans at fair value were excluded when calculating the allowance coverage ratio and net charge-off (recovery) rate.
(e) Excluding the impact of a loan originated in March 2008 to Bear Stearns, the adjusted ratio would be 3.46% and 2.61% for the quarters ended June 30, 2008, and March 31, 2008, respectively. The average balance
of the loan extended to Bear Stearns was $6.0 billion and $1.7 billion for the quarters ended June 30, 2008, and March 31, 2008, respectively. The allowance for loan losses to period-end loans was 7.04%, 4.83%, 3.70%
3.35%, and 2.46% at March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively.

Page 9

INVESTMENT BANK
(in millions, except ratio and rankings data)
QUARTERLY TRENDS
1Q09 Change
1Q09

4Q08

MARKET RISK - AVERAGE TRADING AND CREDIT PORTFOLIO
VAR - 99% CONFIDENCE LEVEL (a)
Trading activities:
Fixed income
$
Foreign exchange
Equities
Commodities and other
Diversification (b)
Total trading VaR (c)

218
40
162
28
(159)
289

Credit portfolio VaR (d)
Diversification (b)
Total trading and credit portfolio VaR

182
(135)
336

$

$

3Q08

276
55
87
30
(146)
302
165
(140)
327

$

March 31, 2009 YTD
MARKET SHARES AND RANKINGS (e)
Global debt, equity and equity-related
Global syndicated loans
Global long-term debt (f)
Global equity and equity-related (g)
Global announced M&A (h)
U.S. debt, equity and equity-related
U.S. syndicated loans
U.S. long-term debt (f)
U.S. equity and equity-related (g)
U.S. announced M&A (h)

Market Share
11%
6%
9%
13%
43%
15%
17%
14%
21%
66%

Rankings
#1
#6
#2
#1
#2
#1
#3
#1
#1
#3

$

$

2Q08

183
20
80
41
(104)
220
47
(49)
218

$

1Q08

155
26
30
31
(92)
150
35
(36)
149

$

$

$

4Q08

120
35
31
28
(92)
122
30
(30)
122

1Q08

(21) %
(27)
86
(7)
(9)
(4)
10
4
3

82 %
14
423
(73)
137
NM
(350)
175

Full Year 2008
Market Share
10%
11%
9%
10%
27%
15%
27%
15%
11%
34%

Rankings
#1
#1
#3
#1
#2
#2
#1
#2
#1
#2

(a) Results for second quarter 2008 include one month of the combined Firm's results and two months of heritage JPMorgan Chase & Co. results. First quarter of 2008 reflects heritage JPMorgan Chase & Co. results.
(b) Average VaRs were less than the sum of the VaRs of their market risk components, which was due to risk offsets resulting from portfolio diversification. The diversification effect reflected the fact that the risks were not
perfectly correlated. The risk of a portfolio of positions is usually less than the sum of the risks of the positions themselves.
(c) Trading VaR includes predominantly all trading activities in IB; however, particular risk parameters of certain products are not fully captured, for example, correlation risk. Trading VaR does not include VaR related to
held-for-sale funded loans and unfunded commitments, nor the debit valuation adjustments ("DVA") taken on derivative and structured liabilities to reflect the credit quality of the Firm. Trading VaR also does not include the
MSR portfolio or VaR related to other corporate functions, such as Corporate/Private Equity. Beginning in the fourth quarter of 2008, trading VaR includes the estimated credit spread sensitivity of certain mortgage products.
(d) Included VaR on derivative credit valuation adjustments ("CVA"), hedges of the CVA and mark-to-market hedges of the retained loan portfolio, which are all reported in principal transactions revenue. This VaR does not
include the retained loan portfolio.
(e) Source: Thomson Reuters. Full year 2008 results are pro forma for the Bear Stearns merger.
(f) Includes asset-backed securities, mortgage-backed securities and municipal securities.
(g) Includes rights offerings; U.S. domiciled equity and equity-related transactions.
(h) Global announced M&A is based upon rank value; all other rankings are based upon proceeds, with full credit to each book manager/equal if joint. Because of joint assignments, market share of all participants
will add up to more than 100%. Global and U.S. announced M&A market share and ranking for 2008 include transactions withdrawn since December 31, 2008. U.S. announced M&A represents any U.S. involvement ranking.

Page 10

RETAIL FINANCIAL SERVICES
(in millions, except ratio and headcount data)
QUARTERLY TRENDS
1Q09 Change
1Q09
INCOME STATEMENT
REVENUE
Securities gains
Credit card income
Other income
Noninterest revenue
Net interest income
TOTAL NET REVENUE

$

4Q08

948
435
1,633
367
214
3,597
5,238
8,835

$

3Q08

1,050
412
1,962
367
183
3,974
4,710
8,684

$

2Q08

538
346
438
204
206
1,732
3,231
4,963

$

1Q08

497
375
696
194
198
1,960
3,150
5,110

$

4Q08

461
377
525
174
152
1,689
3,074
4,763

1Q08

(10) %
6
(17)
17
(9)
11
2

106 %
15
211
111
41
113
70
85


3,877

3,576

2,056

1,585

2,688

8

44

NONINTEREST EXPENSE

1,631
2,457
83
4,171

1,604
2,345
97
4,046

1,120
1,559
100
2,779

1,184
1,396
100
2,680

1,160
1,312
100
2,572

2
5
(14)
3

41
87
(17)
62

787
313
474

1,062
438
624

128
64
64

845
342
503

(26)
(29)
(24)

NM
NM
NM

262,118

(2)

57

218,489
18,000
236,489
230,854
17,000

(1)
25
(1)
5
-

67
(30)
59
65
47

260,013

-

Income tax expense (benefit)
NET INCOME (LOSS)

$

FINANCIAL RATIOS
ROE
Overhead ratio
Overhead ratio excluding core deposit intangibles (a)
Assets
Loans:
Loans retained
Loans held-for-sale & loans at fair value (b)
Total loans
Deposits
Equity
Assets
Loans:
Loans retained
Loans held-for-sale & loans at fair value (b)
Total loans
Deposits
Equity
Headcount

$

8 %
47
46

$

412,505

10 %
47
45

$

364,220
12,529
376,749
380,140
25,000
$

423,472

$

419,831

1 %
56
54

$

368,786
9,996
378,782
360,451
25,000
$

423,699

$

426,435

12 %
52
51

$

371,153
10,223
381,376
353,660
25,000
$

265,367

$

265,845

(7) %
54
52

$

223,047
16,282
239,329
223,121
17,000
$

267,808

(497)
(186)
(311)

$

63

366,925
16,526
383,451
370,278
25,000

369,172
13,848
383,020
358,523
25,000

222,640
16,037
238,677
222,180
17,000

221,132
20,492
241,624
226,487
17,000

214,586
17,841
232,427
225,555
17,000

(1)
19
3
-

71
(7)
65
64
47

100,677

102,007

101,826

69,550

70,095

(1)

44

(a) Retail Financial Services uses the overhead ratio (excluding the amortization of core deposit intangibles ("CDI")), a non-GAAP financial measure, to evaluate the underlying expense trends of the business. Including CDI amortization
expense in the overhead ratio calculation results in a higher overhead ratio in the earlier years and a lower overhead ratio in later years; this method would result in an improving overhead ratio over time, all things remaining equal.
This non-GAAP ratio excludes Retail Banking's core deposit intangible amortization expense related to the 2006 Bank of New York transaction and the 2004 Bank One merger of $83 million, $97 million, $99 million, $99 million,
and $99 million, for the quarters ending March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively.
(b) Prime mortgages originated with the intent to sell are accounted for at fair value and classified as trading assets on the Consolidated Balance Sheets. These loans totaled $8.9 billion, $8.0 billion, $8.6 billion, $14.1 billion, and
$13.5 billion, at March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively. Average balances of these loans totaled $13.4 billion, $12.0 billion, $14.5 billion, $16.9 billion, and
$13.4 billion for the quarters ended March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively.

Page 11

QUARTERLY TRENDS
1Q09 Change
1Q09
Net charge-offs
Nonperforming loans (a) (b) (c) (d)
Nonperforming assets (a) (b) (c) (d)
Net charge-off rate (e)
Net charge-off rate excluding purchased credit-impaired loans (e) (f)
Allowance for loan losses to ending loans (e)
Allowance for loan losses to ending loans excluding purchased credit-impaired loans (e) (f)
Allowance for loan losses to nonperforming loans (a) (e)
Nonperforming loans to total loans

$

4Q08

2,176
7,978
9,846
10,619
2.41 %
3.16
2.92
3.84
138
2.12

$

3Q08

1,701
6,784
9,077
8,918
1.83 %
2.41
2.42
3.19
136
1.79

$

2Q08

1,326
5,724
8,085
7,517
2.37 %
2.37
2.03
2.56
136
1.50

$

1Q08

1,025
4,574
5,333
5,062
1.86 %
1.86
2.27
2.27
115
1.91

$

4Q08

825
3,742
4,359
4,496

1Q08

28 %
18
8
19

164 %
113
126
136

1.55 %
1.55
2.06
2.06
124
1.58

(a) Excludes purchased credit-impaired loans accounted for under SOP 03-3 that were acquired as part of the Washington Mutual transaction. These loans are accounted for on a pool basis and the pools are considered
to be performing under SOP 03-3.
(b) Nonperforming loans and assets included loans held-for-sale and loans accounted for at fair value of $264 million, $236 million, $207 million, $180 million, and $129 million at March 31, 2009, December 31, 2008,
September 30, 2008, June 30, 2008, and March 31, 2008, respectively. Certain of these loans are classified as trading assets on the Consolidated Balance Sheets.
(c) Nonperforming loans and assets excluded (1) loans eligible for repurchase as well as loans repurchased from Government National Mortgage Association ("GNMA") pools that are insured by U.S. government agencies
of $4.6 billion, $3.3 billion, $1.8 billion, $1.9 billion, and $1.8 billion at March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively, and (2) student loans that are 90 days
past due and still accruing, which are insured by U.S. government agencies under the Federal Family Education Loan Program of $433 million, $437 million, $405 million, $394 million, and $418 million, at March 31, 2009,
December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively. These amounts for GNMA and student loans are excluded, as reimbursement is proceeding normally.
(d) During the second quarter of 2008, the policy for classifying subprime mortgage and home equity loans as nonperforming was changed to conform to all other home lending products. Prior period nonperforming loans
and assets have been revised to reflect this change.
(e) Loans held-for-sale and loans accounted for at fair value were excluded when calculating the allowance coverage ratio and the net charge-off rate.
(f) Excludes the impact of purchased credit-impaired loans accounted for under SOP 03-3 that were acquired as part of the Washington Mutual transaction. These loans were accounted for at fair value on the
acquisition date, which incorporated management's estimate, as of the acquisition date, of credit losses over the remaining life of the portfolio. No allowance for loan losses has been recorded for these loans as of
March 31, 2009, December 31, 2008, and September 30, 2008, respectively.

Page 12

(in millions, except ratio data and where otherwise noted)
QUARTERLY TRENDS
1Q09 Change
1Q09

4Q08

3Q08

2Q08

1Q08

4Q08

1Q08

RETAIL BANKING
Noninterest revenue
Net interest income
Total net revenue
Noninterest expense
Income before income tax expense
Net income

$

$

Overhead ratio
Overhead ratio excluding core deposit intangibles (a)
BUSINESS METRICS (in billions)
Business banking origination volume
End-of-period loans owned
End-of-period deposits:
Checking
Savings
Time and other
Total end-of-period deposits
Average loans owned
Average deposits:
Checking
Savings
Time and other
Total average deposits
Deposit margin
Average assets
Net charge-offs
Net charge-off rate
Nonperforming assets
RETAIL BRANCH BUSINESS METRICS
Investment sales volume
Number of:
Branches
ATMs
Personal bankers
Sales specialists
Active online customers (in thousands)
Checking accounts (in thousands)

1,718
2,614
4,332
325
2,580
1,427
863

$

$

1,834
2,687
4,521
268
2,533
1,720
1,040

$

$

56 %
54

60 %
58

1,089
1,756
2,845
70
1,580
1,195
723

$

$

56 %
52

1,062
1,671
2,733
62
1,557
1,114
674

$

$

57 %
53

966
1,545
2,511
49
1,562
900
545

(6) %
(3)
(4)
21
2
(17)
(17)

78 %
69
73
NM
65
59
58

62 %
58

$

0.5
18.2

$

0.8
18.4

$

1.2
18.6

$

1.7
16.5

$

1.8
15.9

(38)
(1)

(72)
14

$

113.9
152.4
86.5
352.8
18.4

$

109.2
144.0
89.1
342.3
18.2

$

106.7
146.4
85.8
338.9
16.6

$

69.1
105.8
37.0
211.9
16.2

$

69.0
105.4
44.6
219.0
15.8

4
6
(3)
3
1

65
45
94
61
16

$
$

$

$
$

$

$

$

$

$

109.4
$
148.2
88.2
345.8
2.85 %
30.2
$

105.8
$
145.3
88.7
339.8
2.94 %
28.7
$

68.0
$
105.4
36.7
210.1
3.06 %
25.6
$

68.4
$
105.9
39.6
213.9
2.88 %
25.7
$

66.1
100.3
47.7
214.1
2.64 %
25.4

3
2
(1)
2

66
48
85
62

5

19

175
$
3.86 %
579
$

168
$
3.67 %
424
$

68
$
1.63 %
380
$

61
$
1.51 %
337
$

49
1.25 %
328

4

257

37

77

4,084

11

8

3,146
9,237
9,826
4,133
6,454
11,068

(5)
(3)
(2)
(4)
10
2

4,398

5,186
14,159
15,544
5,454
12,882
24,984

$

3,956

5,474
14,568
15,825
5,661
11,710
24,499

$

4,389

5,423
14,389
15,491
5,899
11,682
24,490

$

5,211

3,157
9,310
9,995
4,116
7,180
11,336

$

65
53
58
32
100
126

(a) Retail Banking uses the overhead ratio (excluding the amortization of core deposit intangibles ("CDI")), a non-GAAP financial measure, to evaluate the underlying expense trends of the business. Including CDI amortization
expense in the overhead ratio calculation results in a higher overhead ratio in the earlier years and a lower overhead ratio in later years; this method would result in an improving overhead ratio over time, all things remaining equal.
This non-GAAP ratio excludes Retail Banking's core deposit intangible amortization expense related to the 2006 Bank of New York transaction and the 2004 Bank One merger of $83 million, $97 million, $99 million, $99 million,
and $99 million, for the quarters ended March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively.

Page 13

QUARTERLY TRENDS
1Q09 Change
1Q09

4Q08

3Q08

2Q08

1Q08

4Q08

1Q08

CONSUMER LENDING
Noninterest revenue
Net interest income
Total net revenue
Noninterest expense
Net income (loss)

$

$

Overhead ratio
BUSINESS METRICS (in billions)
LOANS EXCLUDING PURCHASED CREDIT-IMPAIRED LOANS
End-of-period loans owned:
Home equity
Prime mortgage
Subprime mortgage
Option ARMs
Student loans
Auto loans
Other
Total end-of-period loans
Average loans owned:
Home equity
Prime mortgage
Subprime mortgage
Option ARMs
Student loans
Auto loans
Other
Total average loans
PURCHASED CREDIT-IMPAIRED LOANS (a)
Home equity
Prime mortgage
Subprime mortgage
Option ARMs
Home equity
Prime mortgage
Subprime mortgage
Option ARMs
Total average loans
TOTAL CONSUMER LENDING PORTFOLIO
Home equity
Prime mortgage
Subprime mortgage
Option ARMs
Student loans
Auto loans
Other
Home equity
Prime mortgage
Subprime mortgage
Option ARMs
Student loans
Auto loans
Other
Total average loans owned (b)

1,879
2,624
4,503
3,552
1,591
(640)
(389)

$

$

35 %

2,140
2,023
4,163
3,308
1,513
(658)
(416)

$

$

36 %

643
1,475
2,118
1,986
1,199
(1,067)
(659)

$

$

57 %

898
1,479
2,377
1,523
1,123
(269)
(171)

$

$

47 %

723
1,529
2,252
2,639
1,010
(1,397)
(856)

(12) %
30
8
7
5
3
6

160 %
72
100
35
58
54
55

45 %

$

111.7
65.4
14.6
9.0
17.3
43.1
1.0
262.1

$

114.3
65.2
15.3
9.0
15.9
42.6
1.3
263.6

$

116.8
63.0
18.1
19.0
15.3
43.3
1.0
276.5

$

95.1
40.1
14.8
13.0
44.9
0.9
208.8

$

95.0
38.2
15.8
12.4
44.7
1.0
207.1

(2)
(5)
9
1
(23)
(1)

18
71
(8)
NM
40
(4)
27

$

113.4
65.4
14.9
8.8
17.0
42.5
1.5
263.5

$

114.6
65.0
15.7
9.0
15.6
42.9
1.5
264.3

$

94.8
39.7
14.2
14.1
43.9
0.9
207.6

$

95.1
39.3
15.5
12.7
44.9
1.0
208.5

$

95.0
36.0
15.7
12.0
43.2
1.3
203.2

(1)
1
(5)
(2)
9
(1)
-

19
82
(5)
NM
42
(2)
15
30

$

28.4
21.4
6.6
31.2
87.6

$

28.6
21.8
6.8
31.6
88.8

$

26.5
24.7
3.9
22.6
77.7

$

-

$

-

(1)
(2)
(3)
(1)
(1)

NM
NM
NM
NM
NM

$

28.4
21.6
6.7
31.4
88.1

$

28.2
21.9
6.8
31.6
88.5

$

-

$

-

$

-

1
(1)
(1)
(1)
-

NM
NM
NM
NM
NM

$

140.1
86.8
21.2
40.2
17.3
43.1
1.0
349.7

$

142.9
87.0
22.1
40.6
15.9
42.6
1.3
352.4

$

143.3
87.7
22.0
41.6
15.3
43.3
1.0
354.2

$

95.1
40.1
14.8
13.0
44.9
0.9
208.8

$

95.0
38.2
15.8
12.4
44.7
1.0
207.1

(2)
(4)
(1)
9
1
(23)
(1)

47
127
34
NM
40
(4)
69

$

141.8
87.0
21.6
40.2
17.0
42.5
1.5
351.6

$

142.8
86.9
22.5
40.6
15.6
42.9
1.5
352.8

$

94.8
39.7
14.2
14.1
43.9
0.9
207.6

$

95.1
39.3
15.5
12.7
44.9
1.0
208.5

$

95.0
36.0
15.7
12.0
43.2
1.3
203.2

(1)
(4)
(1)
9
(1)
-

49
142
38
NM
42
(2)
15
73

(a) Purchased credit-impaired loans represent loans acquired in the Washington Mutual transaction for which a deterioration in credit quality occurred between the origination date and JPMorgan Chase's acquisition date.
Under SOP 03-3, these loans were initially recorded at fair value and accrete interest income over the estimated life of the loan when cash flows are reasonably estimable even if the underlying loans are contractually past due.
(b) Total average loans includes loans held-for-sale of $3.1 billion, $1.8 billion, $1.5 billion, $3.6 billion, and $4.4 billion, for the quarters ended March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and
March 31, 2008, respectively.

Page 14

QUARTERLY TRENDS
1Q09 Change
1Q09

4Q08

3Q08

2Q08

1Q08

4Q08

1Q08

CONSUMER LENDING (continued)
Net charge-offs excluding purchased credit-impaired loans: (a)
Home equity
Prime mortgage
Subprime mortgage
Option ARMs
Auto loans
Other
Total net charge-offs
Net charge-off rate excluding purchased credit-impaired loans: (a)
Home equity
Prime mortgage
Subprime mortgage
Option ARMs
Auto loans
Other
Total net charge-off rate excluding purchased credit-impaired loans (b)
Net charge-off rate - reported:
Home equity
Prime mortgage
Subprime mortgage
Option ARMs
Auto loans
Other
Total net charge-off rate - reported (b)
30+ day delinquency rate excluding purchased credit-impaired loans (c) (d) (e)
Nonperforming assets (f) (g) (h)
Allowance for loan losses to ending loans
Allowance for loan losses to ending loans excluding purchased credit-impaired loans (a)

$

1,098
312
364
4
174
49
2,001

$

770
195
319
207
42
1,533

$

663
177
273
124
21
1,258

$

511
104
192
119
38
964

$

447
50
149
118
12
776

3.93 %
1.95
9.91
0.18
1.66
1.25
3.12

2.78 %
1.79
7.65
1.12
0.60
2.43

2.16 %
1.08
4.98
1.07
1.44
1.89

2.15
0.89
5.64
1.92
1.08
1.74

2.78
1.79
7.65
1.12
0.60
2.43

2.16
1.08
4.98
1.07
1.44
1.89

146 %
NM
144
NM
47
308
158

1.89 %
0.56
3.82
1.10
0.52
1.57

3.14
1.46
6.83
0.04
1.66
1.25
2.33
$

2.67 %
1.20
8.08
1.92
1.08
2.32

43 %
60
14
NM
(16)
17
31

1.89
0.56
3.82
1.10
0.52
1.57

4.73
9,267
$
2.83 %
3.79

4.21
8,653
$
2.36 %
3.16

3.16
7,705
$
1.95 %
2.50

3.88
4,996
$
2.33 %
2.33

3.33
4,031
2.10 %
2.10

7

130

(a) Excludes the impact of purchased credit-impaired loans accounted for under SOP 03-3 that were acquired as part of the Washington Mutual transaction. These loans were accounted for at fair value
on the acquisition date, which incorporated management's estimate, as of the acquisition date, of credit losses over the remaining life of the portfolio. No allowance for
loan losses and no charge-offs have been recorded for these loans as of March 31, 2009, December 31, 2008, and September 30, 2008, respectively.
(b) Average loans held-for-sale of $3.1 billion, $1.8 billion, $1.5 billion, $3.6 billion, and $4.4 billion, for the quarters ended March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008,
respectively, were excluded when calculating the net charge-off rate.
(c) Excluded loans eligible for repurchase as well as loans repurchased from GNMA pools that are insured by U.S. government agencies of $4.5 billion, $3.2 billion, $2.0 billion, $1.5 billion, and $1.5 billion at March 31, 2009,
December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively. These amounts are excluded as reimbursement is proceeding normally.
(d) Excluded loans that are 30 days past due and still accruing, which are insured by U.S. government agencies under the Federal Family Education Loan Program of $770 million, $824 million, $787 million, $735 million, and $734 million,
at March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively. These amounts are excluded as reimbursement is proceeding normally.
(e) The delinquency rate for purchased credit-impaired loans accounted for under SOP 03-3 was 21.36%, 17.89%, and 13.21% at March 31, 2009, December 31, 2008, and September 30, 2008, respectively. There were no purchased
credit-impaired loans at June 30, 2008, and March 31, 2008.
(f) Nonperforming assets excluded (1) loans eligible for repurchase as well as loans repurchased from Governmental National Mortgage Association ("GNMA") pools that are insured by U.S. government agencies of $4.6 billion,
$3.3 billion, $1.8 billion, $1.9 billion, and $1.8 billion, at March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively, and (2) student loans that are 90 days past due and still accruing,
which are insured by U.S. government agencies under the Federal Family Education Loan Program of $433 million, $437 million, $405 million, $394 million, and $418 million, at March 31, 2009, December 31, 2008, September 30, 2008,
June 30, 2008, and March 31, 2008, respectively. These amounts for GNMA and student loans are excluded, as reimbursement is proceeding normally.
(g) During the second quarter of 2008, the policy for classifying subprime mortgage and home equity loans as nonperforming was changed to conform to all other home lending products. Prior period nonperforming assets have
been revised to reflect this change.
(h) Excludes purchased credit-impaired loans accounted for under SOP 03-3 that were acquired as part of the Washington Mutual transaction. These loans are accounted for on a pool basis and the pools are considered to
be performing under SOP 03-3.

Page 15

(in billions)
QUARTERLY TRENDS
1Q09 Change
1Q09

4Q08

3Q08

2Q08

1Q08

4Q08

1Q08

CONSUMER LENDING (continued)
Origination volume:
Mortgage origination volume by channel
Retail
Wholesale
Correspondent
CNT (negotiated transactions)
Total mortgage origination volume
Home equity
Student loans
Auto loans

$

Average mortgage loans held-for-sale & loans at fair value (a)
Average assets
Third-party mortgage loans serviced (ending)
MSR net carrying value (ending)
SUPPLEMENTAL MORTGAGE FEES AND RELATED INCOME
DETAILS (in millions)
Production revenue
Net mortgage servicing revenue:
Loan servicing revenue
Changes in MSR asset fair value:
Due to inputs or assumptions in model
Other changes in fair value
Total changes in MSR asset fair value
Derivative valuation adjustments and other
Total net mortgage servicing revenue

13.6
2.6
17.0
4.5
37.7
0.9
1.7
5.6

$

14.0
393.3
1,148.8
10.6

$

481

7.6
3.8
13.3
3.4
28.1
1.7
1.0
2.8

$

12.2
395.0
1,172.6
9.3

$

62

1,222

1,366

1,310
(1,073)
237

(6,950)
(843)
(7,793)

(307)
1,152
1,633

8,327
1,900
1,962

8.4
5.9
13.2
10.2
37.7
2.6
2.6
3.8

$

14.9
239.8
1,114.8
16.4

$

66
654
(786)
(390)
(1,176)
894
372
438

12.5
9.1
17.0
17.5
56.1
5.3
1.3
5.6

$

17.4
242.1
659.1
10.9

$

394
645
1,519
(394)
1,125
(1,468)
302
696

12.6
10.6
12.0
11.9
47.1
6.7
2.0
7.2

79 %
(32)
28
32
34
(47)
70
100

8 %
(75)
42
(62)
(20)
(87)
(15)
(22)

13.8
234.6
627.1
8.4

$

15
(2)
14

1
68
83
26

376

NM

28

593

(11)

106

NM
(27)
NM

NM
(152)
NM

NM
(39)
(17)

NM
NM
211

(632)
(425)
(1,057)
613
149
525

(a) Prime mortgages with the intent to sell are accounted for at fair value and classified as trading assets on the Consolidated Balance Sheets. Average balances of these loans totaled $13.4 billion, $12.0 billion,
$14.5 billion, $16.9 billion, and $13.4 billion for the quarters ended March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively.

Page 16

CARD SERVICES - MANAGED BASIS
QUARTERLY TRENDS
1Q09 Change
1Q09
INCOME STATEMENT
REVENUE
Credit card income
All other income
Noninterest revenue
Net interest income
TOTAL NET REVENUE

$

4Q08

844
(197)
647
4,482
5,129

$

3Q08

862
(272)
590
4,318
4,908

$

2Q08

633
13
646
3,241
3,887

$

1Q08

673
91
764
3,011
3,775

$

4Q08

1Q08

600
119
719
3,185
3,904

(2) %
28
10
4
5

41 %
NM
(10)
41
31


4,653

3,966

2,229

2,194

1,670

17

179

NONINTEREST EXPENSE

357
850
139
1,346

335
979
175
1,489

267
773
154
1,194

258
763
164
1,185

267
841
164
1,272

7
(13)
(21)
(10)

34
1
(15)
6

$

396
146
250

$

962
353
609

(59)
(84)
(47)

NM
NM
NM

$

36

$

70

31

NM

NET INCOME (LOSS)
Memo: Net securitization gains (amortization)

$

(870)
(323)
(547)

$

(180)

FINANCIAL METRICS
ROE
Overhead ratio
% of average managed outstandings:
Net interest income
Noninterest revenue
Risk adjusted margin (a)
Noninterest expense
Pretax income (loss) (ROO) (b)
Net income (loss)
BUSINESS METRICS
Charge volume (in billions)
Net accounts opened (in millions) (c)
Credit cards issued (in millions)
Number of registered internet customers (in millions)
Merchant acquiring business (d)
Bank card volume (in billions)
Total transactions (in billions)
(a)
(b)
(c)
(d)

$

(547)
(176)
(371)

$

464
172
292

$

(261)

$

(28)

(15) %
26

(10) %
30

9.91
10.29
1.43
1.05
2.98
(1.92)
(1.21)

8 %
31

9.17
8.42
1.25
2.00
3.16
(1.16)
(0.79)

7 %
31

8.18
5.63
1.63
4.19
3.01
1.17
0.74

17 %
33

7.92
5.77
2.01
4.16
3.12
1.04
0.66

8.34
4.37
1.88
5.85
3.33
2.52
1.60

$

76.0
2.2
159.0
33.8

$

96.0
4.3
168.7
35.6

$

93.9
16.6
171.9
34.3

$

93.6
3.6
157.6
28.0

$

85.4
3.4
156.4
26.7

(21)
(49)
(6)
(5)

(11)
(35)
2
27

$

94.4
4.1

$

135.1
4.9

$

197.1
5.7

$

199.3
5.6

$

182.4
5.2

(30)
(16)

(48)
(21)

Represents total net revenue less provision for credit losses.
Pretax return on average managed outstandings.
Third quarter of 2008 included approximately 13 million credit card accounts acquired by JPMorgan Chase & Co. in the Washington Mutual transaction.
The Chase Paymentech Solutions joint venture was dissolved effective November 1, 2008. For the period January 1, 2008 through October 31, 2008, the data presented represents
activity for the Chase Paymentech Solutions joint venture and beyond that date, the data presented represents activity for Chase Paymentech Solutions.

Page 17

CARD SERVICES - MANAGED BASIS
QUARTERLY TRENDS
1Q09 Change
1Q09
Loans:
Loans on balance sheets
Securitized loans
Managed loans

$

Equity
Managed assets
Loans:
Loans on balance sheets
Securitized loans
Managed average loans
Equity

$

$

90,911
85,220
176,131

$

$

$

15,000

$

$

201,200

$

KEY STATS - WASHINGTON MUTUAL ONLY (c)
Managed loans
Net interest income (d)
Risk adjusted margin (d) (e)
Net charge-off rate (a)
30+ day delinquency rate (a)
90+ day delinquency rate (a)
KEY STATS - EXCLUDING WASHINGTON MUTUAL
Managed loans
Net interest income (d)
Risk adjusted margin (d) (e)
Net charge-off rate
30+ day delinquency rate
90+ day delinquency rate
(a)
(b)
(c)
(d)
(e)

2Q08

$

$

92,881
93,664
186,545

15,000

$

$

203,943

$

$

97,783
85,619
183,402

$

15,000

$

$

$

15,000

$

$

169,413

$

$

98,790
88,505
187,295

$

15,000

3,493
$
7.72 %

6.16 %
3.22

4Q08

1Q08

20 %
14
17

$

75,888
75,062
150,950

(13) %
(7)

14,100

$

14,100

-

6

$

161,601

$

159,602

(1)

26

$
$

75,630
77,195
152,825

$

$

79,183
78,371
157,554

$

79,445
74,108
153,553

(1)
(3)
(2)

23
16
19

$

14,100

$

14,100

$

14,100

-

6

18,931

(1)

26

34

109

15

160

24,025

2,616
$
5.56 %

4.97 %
2.34

$

8,849
$
9.73 %

7,692
$
7.34 %

$

25,908
$
27,578
16.45 %
4.42
12.63
10.89
5.79

28,250
$
27,703
14.87 %
4.18
7.11
8.50
3.75

150,223
$
155,824
8.75 %
0.46
6.86
5.34
2.78

162,067
$
159,592
8.18 %
1.62
5.29
4.36
2.09

$

1Q08

76,278
79,120
155,398

23,759

Managed delinquency rates
30+ day (a)
90+ day (a)
Allowance for loan losses (b)
Allowance for loan losses to period-end loans (b)

3Q08

104,746
85,571
190,317

Headcount
MANAGED CREDIT QUALITY STATISTICS
Net charge-offs
Net charge-off rate (a)

4Q08

22,283

1,979
$
5.00 %

3.91 %
1.77
5,946
$
6.40 %

19,570

1,894
$
4.98 %

3.46 %
1.76
3,705
$
4.86 %

1,670
4.37 %

3.66 %
1.84
3,404
4.49 %

27,235

(8)
-

NM
NM

(7)
(2)

1

5.20 %
1.95

159,310
$
157,554
8.18 %
4.19
5.00
3.69
1.74

155,398
$
152,825
7.92 %
4.16
4.98
3.46
1.76

150,950
153,553
8.34 %
5.85
4.37
3.66
1.84

-

Results for the quarters ending March 31, 2009, December 31, 2008, and September 30, 2008 reflect the impact of purchase accounting adjustments related to the Washington Mutual transaction.
Based on loans on a reported basis.
Statistics are only presented for periods after September 25, 2008, the date of the Washington Mutual transaction.
As a percentage of average managed outstandings.
Represents total net revenue less provision for credit losses.
Page 18

CARD RECONCILIATION OF REPORTED AND MANAGED DATA
(in millions)
QUARTERLY TRENDS
1Q09 Change
1Q09
INCOME STATEMENT DATA (a)
Credit card income
Reported
Securitization adjustments
Managed credit card income
Net interest income
Reported
Managed net interest income
Total net revenue
Reported
Managed total net revenue
Reported
Managed provision for credit losses

$
$

$
$

$
$

$
$

BALANCE SHEETS - AVERAGE BALANCES (a)
Total average assets
Reported
Managed average assets

$

CREDIT QUALITY STATISTICS (a)
Net charge-offs
Reported
Managed net charge-offs

$

$

$

4Q08

1,384
(540)
844

$

2,478
2,004
4,482

$

3,665
1,464
5,129

$

$

$

$

3,189
1,464
4,653

$

118,418
82,782
201,200

$

2,029
1,464
3,493

$

$

$

$

3Q08

1,553
(691)
862

$

2,408
1,910
4,318

$

3,689
1,219
4,908

$

$

$

$

2,747
1,219
3,966

$

118,290
85,653
203,943

$

1,397
1,219
2,616

$

$

$

$

2Q08

1,476
(843)
633

$

1,525
1,716
3,241

$

3,014
873
3,887

$

$

$

$

1,356
873
2,229

$

93,701
75,712
169,413

$

1,106
873
1,979

$

$

$

$

1Q08

1,516
(843)
673

$

1,338
1,673
3,011

$

2,945
830
3,775

$

$

$

$

1,364
830
2,194

$

87,021
74,580
161,601

$

1,064
830
1,894

$

$

$

$

1,537
(937)
600

4Q08

1Q08

(11) %
22
(2)

(10) %
42
41

1,567
1,618
3,185

3
5
4

58
24
41

3,223
681
3,904

(1)
20
5

14
115
31

989
681
1,670

16
20
17

222
115
179

(3)
(1)

35
16
26

45
20
34

105
115
109

88,013
71,589
159,602

989
681
1,670

(a) JPMorgan Chase & Co. uses the concept of “managed receivables” to evaluate the credit performance and overall performance of the underlying credit card loans, both sold and not sold; as the same
borrower is continuing to use the credit card for ongoing charges, a borrower’s credit performance will affect both the receivables sold under SFAS 140 and those not sold. Thus, in its disclosures regarding
managed receivables, JPMorgan Chase & Co. treats the sold receivables as if they were still on the balance sheet in order to disclose the credit performance (such as net charge-off rates) of the entire
managed credit card portfolio. Managed results exclude the impact of credit card securitizations on total net revenue, the provision for credit losses, net charge-offs and loan receivables. Securitization
does not change reported net income versus managed earnings; however, it does affect the classification of items on the Consolidated Statements of Income and Consolidated Balance Sheets.

Page 19

COMMERCIAL BANKING
QUARTERLY TRENDS
1Q09 Change
1Q09
INCOME STATEMENT
REVENUE
All other income (a)
Noninterest revenue
Net interest income
TOTAL NET REVENUE

$

4Q08

263
34
125
422
980
1,402

$

3Q08

242
32
102
376
1,103
1,479

$

2Q08

212
29
147
388
737
1,125

$

1Q08

207
26
150
383
723
1,106

$

4Q08

193
26
115
334
733
1,067

1Q08

9 %
6
23
12
(11)
(5)

36 %
31
9
26
34
31


293

190

126

47

101

54

190

NONINTEREST EXPENSE

200
342
11
553

164
324
11
499

177
298
11
486

173
290
13
476

178
294
13
485

22
6
11

12
16
(15)
14

Income tax expense
NET INCOME

556
218
338

790
310
480

513
201
312

583
228
355

481
189
292

(30)
(30)
(30)

16
15
16

9
(15)
(17)
(14)
(5)

75
5
7
350
31

MEMO:
Revenue by product:
Lending
Treasury services
Investment banking
Other
Total Commercial Banking revenue
IB revenue, gross (b)
Revenue by business:
Middle Market Banking
Commercial Term Lending (c)
Mid-Corporate Banking
Real Estate Banking (c)
Other (c)
Total Commercial Banking revenue
FINANCIAL RATIOS
ROE
Overhead ratio

$

$

$

665
646
73
18
1,402

$

$

$

$

$

611
759
88
21
1,479

206

$

752
228
242
120
60
1,402

$

17
39

$

$

$

%

$

377
643
87
18
1,125

241

$

796
243
243
131
66
1,479

$

24
34

$

$

$

%

$

376
630
91
9
1,106

$

379
616
68
4
1,067

252

$

270

$

203

(15)

1

729
236
91
69
1,125

$

708
235
94
69
1,106

$

706
207
97
57
1,067

(6)
(6)
(8)
(9)
(5)

7
NM
17
24
5
31

18
43

$

$

$

%

20
43

$

$

%

17
45

%

(a) IB-related and commercial card revenue is included in all other income.
(b) Represents the total revenue related to investment banking products sold to Commercial Banking ("CB") clients.
(c) Includes total net revenue on net assets acquired in the Washington Mutual transaction starting in the period ending December 31, 2008.

Page 20

COMMERCIAL BANKING
(in millions, except ratio and headcount data)
QUARTERLY TRENDS
1Q09 Change
1Q09
Equity
Total assets
Loans:
Loans retained
Total loans
Liability balances (a)
Equity
MEMO:
Loans by business:
Middle Market Banking
Commercial Term Lending (b)
Mid-Corporate Banking
Real Estate Banking (b)
Other (b)
Total Commercial Banking loans

Net charge-off rate (f)
Allowance for loan losses to average loans (d) (f)
Allowance for loan losses to nonperforming loans (c) (d)
Nonperforming loans to average loans (d)

3Q08

2Q08

1Q08

4Q08

1Q08

$

8,000

$

8,000

$

8,000

$

7,000

$

7,000

$

144,298

$

149,815

$

101,681

$

103,469

$

101,979

(4)

41

67,510
521
68,031
99,477
7,000

(3)
(10)
(3)
1
-

68
(43)
67
16
14

40,111
15,150
7,457
5,313
68,031

(4)
(1)
1
(2)
(27)
(3)

2
NM
22
78
(13)
67

4,075

(13)

12

81
446
453

14
49
45

65
243
264

1,790
200
1,990

4
17
5

65
20
60

113,568
297
113,865
114,975
8,000

$

$

Headcount
Net charge-offs
Nonperforming loans (c) (d)
Nonperforming assets
Allowance for credit losses:
Allowance for loan losses (e)
Total allowance for credit losses

4Q08

117,351
329
117,680
114,113
8,000

40,728
36,814
18,416
13,264
4,643
113,865

$

$

4,545

$

42,613
37,039
18,169
13,529
6,330
117,680

$

$

5,206

134
1,531
1,651

$

2,945
240
3,185
0.48
2.59
192
1.34

71,901
397
72,298
99,410
7,000

118
1,026
1,142

0.40
2.41
275
0.87

$

$

5,298

$

2,826
206
3,032
%

43,155
16,491
7,513
5,139
72,298

70,682
379
71,061
99,404
7,000

40
844
923
2,698
191
2,889

%

0.22 %
2.32 (g)
320
0.72 (g)

42,879
15,357
7,500
5,325
71,061

$

$

4,028

$

49
486
510
1,843
170
2,013
0.28 %
2.61
401
0.68

$

-%

14 %

0.48 %
2.65
426
0.66

(a) Liability balances include deposits and deposits swept to on-balance sheet liabilities such as commercial paper, federal funds purchased and securities loaned or sold under repurchase agreements.
(b) Includes loans acquired in the Washington Mutual transaction starting in the period ending December 31, 2008.
(c) Nonperforming loans included loans held-for-sale and loans at fair value of $26 million at both June 30, 2008, and March 31, 2008. These amounts were excluded when calculating the allowance for loan losses
to nonperforming loans ratio. There were no nonperforming loans held-for-sale or held at fair value at March 31, 2009, December 31, 2008, and September 30, 2008.
(d) Wholesale purchased credit-impaired loans accounted for under SOP 03-3 that were acquired in the Washington Mutual transaction are considered nonperforming loans because the timing and amount of expected cash
flows are not reasonably estimable. These nonperforming loans were included when calculating the allowance coverage ratio, the allowance for loan losses to nonperforming loans ratio, and the nonperforming loans to
average loans ratio. The carrying amount of these purchased credit-impaired loans at March 31, 2009, December 31, 2008, and September 30, 2008, was $219 million, $224 million and $272 million, respectively.
(e) The allowance for loan losses at September 30, 2008, and June 30, 2008, included amounts related to loans acquired in the Washington Mutual transaction and the merger with Bear Stearns, respectively.
(f) Loans held-for-sale and loans accounted for at fair value were excluded when calculating the allowance coverage ratio and the net charge-off rate.
(g) Average loans in the calculation of this ratio were adjusted to include $44.5 billion of loans acquired from Washington Mutual as if the transaction occurred on July 1, 2008. Excluding this adjustment, the unadjusted
allowance for loan losses to average loans and nonperforming loans to average loans ratios would have been 3.75% and 1.17%, respectively.

Page 21

TREASURY & SECURITIES SERVICES
QUARTERLY TRENDS
1Q09 Change
1Q09
INCOME STATEMENT
REVENUE
All other income
Noninterest revenue
Net interest income
TOTAL NET REVENUE

$

Credit reimbursement to IB (a)

4Q08

325
626
197
1,148
673
1,821

$

(6)
(30)

3Q08

304
748
268
1,320
929
2,249

$

45
(30)

2Q08

290
719
221
1,230
723
1,953

$

18
(31)

1Q08

283
846
228
1,357
662
2,019

$

7
(30)

4Q08

269
820
200
1,289
624
1,913
12
(30)

1Q08

7 %
(16)
(26)
(13)
(28)
(19)

21 %
(24)
(2)
(11)
8
(5)

NM
-

NM
-

NONINTEREST EXPENSE

629
671
19
1,319

628
692
19
1,339

664
661
14
1,339

669
632
16
1,317

641
571
16
1,228

(3)
(1)

(2)
18
19
7

Income tax expense
NET INCOME

478
170
308

835
302
533

565
159
406

665
240
425

643
240
403

(43)
(44)
(42)

(26)
(29)
(24)

860
1,053
1,913

(13)
(25)
(19)

8
(15)
(5)

11

43

(32)
(13)
9
43

REVENUE BY BUSINESS
Treasury Services (b)
Worldwide Securities Services (b)
TOTAL NET REVENUE

$

$
$

FINANCIAL RATIOS
ROE
Overhead ratio
Pretax margin ratio (c)
Equity
Total assets
Loans (d)
Liability balances (e)
Equity
Headcount

931
890
1,821

$

$
$

25 %
72
26

1,068
1,181
2,249

$

$
$

47 %
60
37

946
1,007
1,953

$

$
$

46 %
69
29

905
1,114
2,019

$

$
$

49 %
65
33

46 %
64
34

$

5,000

$

4,500

$

4,500

$

3,500

$

3,500

$

38,682
20,140
276,486
5,000

$

55,515
31,283
336,277
4,500

$

49,386
26,650
259,992
3,500

$

56,192
23,822
268,293
3,500

$

57,204
23,086
254,369
3,500

(30)
(36)
(18)
11

26,561

-

26,998

27,070

27,592

27,232

2

(a) TSS is charged a credit reimbursement related to certain exposures managed within IB credit portfolio on behalf of clients shared with TSS.
(b) Reflects an internal reorganization for escrow products from Worldwide Securities Services to Treasury Services revenue of $45 million, $75 million, $49 million, $53 million, and $47 million, for the quarters ended
March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively.
(c) Pretax margin represents income before income tax expense divided by total net revenue, which is a measure of pretax performance and another basis by which management evaluates its performance and that of its
competitors.
(d) Loan balances include wholesale overdrafts, commercial card and trade finance loans.
(e) Liability balances include deposits and deposits swept to on-balance sheet liabilities such as commercial paper, federal funds purchased and securities loaned or sold under repurchase agreements.

Page 22

TREASURY & SECURITIES SERVICES
TSS firmwide metrics include revenue recorded in the CB, Regional Banking and Asset Management ("AM") lines of business and excludes FX revenue recorded in the IB for TSS-related FX activity. In order to capture the
firmwide impact of Treasury Services ("TS") and TSS products and revenue, management reviews firmwide metrics such as liability balances, revenue and overhead ratios in assessing financial performance for TSS.
Firmwide metrics are necessary in order to understand the aggregate TSS business.
QUARTERLY TRENDS
1Q09 Change
1Q09
TSS FIRMWIDE DISCLOSURES
Treasury Services revenue - reported (a)
Treasury Services revenue reported in Commercial Banking
Treasury Services revenue reported in other lines of business
Treasury Services firmwide revenue (a) (b)
Worldwide Securities Services revenue (a)
Treasury & Securities Services firmwide revenue (b)
Treasury Services firmwide liability balances (average) (c) (d)
Treasury & Securities Services firmwide liability balances (average) (c)

$

$
$

TSS FIRMWIDE FINANCIAL RATIOS
Treasury Services firmwide overhead ratio (e)
Treasury & Securities Services firmwide overhead ratio (e)
FIRMWIDE BUSINESS METRICS
Assets under custody (in billions)

Net charge-off (recovery) rate
Allowance for loan losses to average loans
Allowance for loan losses to nonperforming loans

931
646
62
1,639
890
2,529

$

289,645
391,461

$

53
63

$

Number of:
US$ ACH transactions originated (in millions)
Total US$ clearing volume (in thousands)
International electronic funds transfer volume (in thousands) (f)
Wholesale check volume (in millions)
Wholesale cards issued (in thousands) (g)
Nonperforming loans

4Q08

$

%

13,532

$

$

312,559
450,390

$

$

%

13,205

$

%

$

946
643
76
1,665
1,007
2,672

$

248,075
359,401

$

$

%

14,417

$

%

47
45
- %
0.18
NM
-

1Q08

905
630
72
1,607
1,114
2,721

$

252,625
367,670

$

53
58

$

997
29,277
41,831
595
21,858

30
74
63
0.24
247
0.10

2Q08

52
60

1,006
29,346
47,734
572
22,784

2
30
51
77
0.04
0.25
170
0.15

1,068
759
82
1,909
1,181
3,090

44
52

978
27,186
44,365
568
22,233

$

3Q08

$

(2)
40
33
(0.03) %
0.17
NM
-

(13) %
(15)
(24)
(14)
(25)
(18)

243,168
353,845

8 %
5
(10)
6
(15)
(3)

(7)
(13)

19
11

15,690

2

(14)

(3)
(7)
(7)
(1)
(2)

(3)
(3)
11
(9)
16

26
33

NM
(31)
22

NM
NM
96
133

54
58

$

993
29,063
41,432
618
19,917

$

860
616
69
1,545
1,053
2,598

1Q08

1,004
28,056
40,039
623
19,122

%

15,476

4Q08

$

%

- %
0.11
NM
-

(a) Reflects an internal reorganization for escrow products from Worldwide Securities Services to Treasury Services revenue of $45 million, $75 million, $49 million, $53 million, and $47 million, for the quarters ended
(b) TSS firmwide FX revenue includes FX revenue recorded in TSS and FX revenue associated with TSS customers who are FX customers of the IB. FX revenue associated with TSS customers who are FX customers of the IB
was $154 million, $271 million, $196 million, $222 million, and $191 million, for the quarters ended March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively. These amounts are
not included in TS and TSS firmwide revenue.
(c) Firmwide liability balances include TS' liability balances recorded in the Commercial Banking line of business.
(d) Reflects an internal reorganization for escrow products from Worldwide Securities Services to Treasury Services liability balances of $18.2 billion, $22.3 billion, $20.3 billion, $21.9 billion, and $21.5 billion, for the quarters ended
(e) Overhead ratios have been calculated based upon firmwide revenue and TSS and TS expense, respectively, including those allocated to certain other lines of business. FX revenue and expense recorded in the IB for
TSS-related FX activity are not included in this ratio.
(f) International electronic funds transfer includes non-US$ ACH and clearing volume.
(g) Wholesale cards issued include domestic commercial card, stored value card, prepaid card, and government electronic benefit card products.
Page 23

ASSET MANAGEMENT
(in millions, except ratio, ranking and headcount data)
QUARTERLY TRENDS
1Q09 Change
1Q09
INCOME STATEMENT
REVENUE
All other income
Noninterest revenue
Net interest income
TOTAL NET REVENUE

$


4Q08

1,231
69
1,300
403
1,703

$

3Q08

1,362
(170)
1,192
466
1,658

$

2Q08

1,538
43
1,581
380
1,961

$

1Q08

1,573
130
1,703
361
2,064

$

4Q08

1,531
59
1,590
311
1,901

33

32

20

17

16

NONINTEREST EXPENSE

800
479
19
1,298

689
504
20
1,213

816
525
21
1,362

886
494
20
1,400

Income tax expense
NET INCOME

372
148
224

413
158
255

579
228
351

647
252
395

REVENUE BY CLIENT SEGMENT
Private Bank (a)
Institutional
Private Wealth Management (a)
Retail
Bear Stearns Brokerage
Total net revenue

$
$

$

FINANCIAL RATIOS
ROE
Overhead ratio
Pretax margin ratio (b)

583
460
312
253
95
1,703

$
$

$

13 %
76
22

BUSINESS METRICS
Number of:
Client advisors
Retirement planning services participants
Bear Stearns brokers

630
327
330
265
106
1,658

$
$

$

14 %
73
25

1,708
1,628,000
359

631
486
352
399
93
1,961

$
$

$

25 %
69
30

1,705
1,531,000
324

708
472
356
490
38
2,064

(10) %
NM
9
(14)
3

(20) %
17
(18)
30
(10)

$
$

$

3

106

825
477
21
1,323

31 %
68
31

1,684
1,492,000
323

1Q08

16
(5)
(5)
7

(3)
(10)
(2)

562
206
356

(10)
(6)
(12)

(34)
(28)
(37)

596
490
349
466
1,901

(7)
41
(5)
(5)
(10)
3

(2)
(6)
(11)
(46)
NM
(10)

6
11

(2)
7
NM

29 %
70
30

1,717
1,505,000
326

1,744
1,519,000
-

% of customer assets in 4 & 5 Star Funds (c)

42 %

42 %

39 %

40 %

49 %

-

(14)

% of AUM in 1st and 2nd quartiles: (d)
1 year
3 years
5 years

54 %
62 %
66 %

54 %
65 %
76 %

49 %
67 %
77 %

51 %
70 %
76 %

52 %
73 %
75 %

(5)
(13)

4
(15)
(12)

Equity
Total assets
Loans
Deposits
Equity

$

7,000

$

7,000

$

7,000

$

5,200

$

5,000

-

$

58,227
34,585
81,749
7,000

$

65,648
36,851
76,911
7,000

$

71,189
39,750
65,621
5,500

$

65,015
39,264
69,975
5,066

$

60,286
36,628
68,184
5,000

(11)
(6)
6
-

(3)
(6)
20
40

14,955

(1)

1

Headcount
Nonperforming loans
Net charge-off (recovery) rate
Allowance for loan losses to average loans
Allowance for loan losses to nonperforming loans
(a)
(b)
(c)
(d)

15,109
$

19
301
215
4
0.22 %
0.62
71
0.87

15,339
$

12
147
191
5
0.13 %
0.52
130
0.40

15,493
$

(1)
121
170
5
(0.01) %
0.43
140
0.30

15,840
$

2
68
147
5
0.02 %
0.37
216
0.17

$

(2)
11
130
6

58
105
13
(20)

40

NM
NM
65
(33)

(0.02) %
0.35
1,182
0.03

In the third quarter of 2008, certain clients were transferred from Private Bank to Private Wealth Management. Prior periods have been revised to conform with this change.
Pretax margin represents income before income tax expense divided by total net revenue, which is a measure of pretax performance and another basis by which management evaluates its performance and that of its competitors.
Derived from the following rating services: Morningstar for the United States; Micropal for the United Kingdom, Luxembourg, Hong Kong and Taiwan; and Nomura for Japan.
Derived from the following rating services: Lipper for the United States and Taiwan; Micropal for the United Kingdom, Luxembourg and Hong Kong; and Nomura for Japan.
Page 24

ASSET MANAGEMENT
(in billions)

Mar 31
2009
Assets by asset class
Liquidity
Fixed income
Equities & balanced
Alternatives
TOTAL ASSETS UNDER MANAGEMENT
Custody / brokerage / administration / deposits
TOTAL ASSETS UNDER SUPERVISION

Assets by client segment
Institutional
Private Bank (a)
Retail
Institutional
Private Bank (a)
Retail

Assets by geographic region
U.S. / Canada
International
U.S. / Canada
International

Mutual fund assets by asset class
Liquidity
Fixed income
Equities
TOTAL MUTUAL FUND ASSETS

$

$

$

$
$

$

$
$
$
$

$

$

Dec 31
2008

625
180
215
95
1,115
349
1,464

$

668
181
184
68
14
1,115

$

$

$

669
375
250
120
50
1,464

$

789
326
1,115

$

$

$

1,066
398
1,464

$

570
42
93
705

$

$

$

Sep 30
2008

613
180
240
100
1,133
363
1,496

$

681
181
194
71
6
1,133

$

$

$

682
378
262
124
50
1,496

$

798
335
1,133

$

$

$

1,084
412
1,496

$

553
41
99
693

$

$

$

Jun 30
2008

524
189
308
132
1,153
409
1,562

$

653
194
223
75
8
1,153

$

$

$

653
417
303
134
55
1,562

$

785
368
1,153

$

$

$

1,100
462
1,562

$

470
44
134
648

$

$

$

Mar 31, 2009
Change
Dec 31
Mar 31
2008
2008

Mar 31
2008

478
199
378
130
1,185
426
1,611

$

645
181
276
75
8
1,185

$

$

$

646
415
357
133
60
1,611

$

771
414
1,185

$

$

$

1,093
518
1,611

$

416
47
179
642

$

$

$

471
200
390
126
1,187
382
1,569

2 %
(10)
(5)
(2)
(4)
(2)

33 %
(10)
(45)
(25)
(6)
(9)
(7)

652
179
279
77
1,187

(2)
(5)
(4)
133
(2)

2
1
(34)
(12)
NM
(6)

652
412
366
139
1,569

(2)
(1)
(5)
(3)
(2)

3
(9)
(32)
(14)
NM
(7)

773
414
1,187

(1)
(3)
(2)

2
(21)
(6)

1,063
506
1,569

(2)
(3)
(2)

(21)
(7)

405
45
186
636

3
2
(6)
2

41
(7)
(50)
11

(a) In the third quarter of 2008, certain clients were transferred from Private Bank to Private Wealth Management. Prior periods have been revised to conform with this change.

Page 25

ASSET MANAGEMENT
(in billions)
QUARTERLY TRENDS
1Q09
ASSETS UNDER SUPERVISION (continued)
Assets under management rollforward
Beginning balance
Net asset flows:
Liquidity
Fixed income
Equities, balanced & alternative
Market / performance / other impacts (a)
Assets under supervision rollforward
Beginning balance
Net asset flows
Market / performance / other impacts (a)

$

1,133

$

19
1
(5)
(33)
1,115

$

$

1,496
25
(57)
1,464

4Q08

$

1,153

$

86
(7)
(18)
(81)
1,133

$

$

1,562
73
(139)
1,496

3Q08

$

1,185

$

55
(4)
(5)
(78)
1,153

$

$

1,611
61
(110)
1,562

2Q08

$

1,187

$

1
(1)
(3)
1
1,185

$

$

1,569
(5)
47
1,611

1Q08

$

1,193

$

68
(21)
(53)
1,187

$

$

1,572
52
(55)
1,569

(a) Second quarter 2008 reflects $15 billion for assets under management and $68 billion for assets under supervision from the Bear Stearns merger on May 30, 2008.

Page 26

CORPORATE/PRIVATE EQUITY
(in millions, except headcount data)
QUARTERLY TRENDS
1Q09 Change
1Q09
INCOME STATEMENT
REVENUE
Securities gains
All other income (a)
Noninterest revenue
Net interest income (expense)
TOTAL NET REVENUE

$

Provision for credit losses (b)

MEMO:
TOTAL NET REVENUE
Private equity
Corporate
TOTAL NET REVENUE
NET INCOME (LOSS)
Private equity
Corporate
Merger-related items (e)
TOTAL NET INCOME (LOSS)
Headcount

(1,493)
214
(19)
(1,298)
989
(309)

$

-

NONINTEREST EXPENSE
Noncompensation expense (c)
Merger costs
Subtotal
Net expense allocated to other businesses
Income (loss) before income tax expense and extraordinary gain
Extraordinary gain (d)
NET INCOME (LOSS)

4Q08

$

$
$
$

$

$

(1,876)
440
(275)
(1,711)
(125)
(1,836)

2Q08

$

1,977

1Q08

(97)
656
(378)
181
(47)
134

$

$

(280)
252
(234)
(262)

$

$

$

$

652
563
96
1,311
(1,150)
161
(3,974)
(1,613)
(2,361)
581
(1,780)

(288)
31
(319)
(319)

$

(1,107)
1,539
432

$

(682)
1,163
1,064
1,545

$

23,376

$

$

$

(216)
(1,620)
(1,836)

$

(164)
(881)
(735)
(1,780)

$

24,967

$

$

$

197
(63)
134

$

99
122
(540)
(319)

$

22,317

1Q08

$

$

5
42
1,641
1,688
(349)
1,339

8 %
(57)
NM
(198)
14
NM

NM %
410
NM
NM
NM
NM

NM

-

639
(84)
555
(1,057)
(502)

611
689
155
1,455
(1,070)
385

537
317
220
1,325
1,545

4Q08

-

37

438
673
181
1,292
(1,364)
(72)

(449)
140
(309)

22,339

(1,620)
499
685
(436)
868
432
(33)

641
345
205
1,191
(1,279)
(88)
(221)
41
(262)
(262)

3Q08

46
(49)
13
(8)
6
(22)

1,841
730
1,111
1,111

NM
(87)
NM
NM
NM

NM
NM
115
(21)
82
NM
(94)
NM
NM

163
1,176
1,339

59
(91)
NM

NM
(88)
NM

57
1,054
1,111

59
(78)
NM
NM

NM
(76)
NM
NM

21,769

(4)

3

(a) Included the following significant items: a gain of $1.0 billion from the dissolution of the Chase Paymentech Solutions joint venture in the fourth quarter of 2008, a charge of $375 million for the repurchase of auction rate
securities in the third quarter of 2008, $423 million representing the Firm's share of Bear Stearns' losses from April 8 to May 30, 2008, in the second quarter of 2008, and proceeds of $1.5 billion from the sale of Visa shares
in its initial public offering in the first quarter of 2008.
(b) The fourth and third quarters of 2008 included accounting conformity loan loss reserve provisions related to the acquisition of Washington Mutual Bank's banking operations. An analysis of loans acquired in the transaction
was substantially completed during the fourth quarter. This resulted in an increase in the credit-impaired loan balances, a corresponding reduction in the non-credit-impaired portfolio and a reduction in the estimate of
incurred losses related to the non-credit-impaired portfolio requiring a reduction in the accounting conformity provision for these loans. Also in the fourth quarter was a provision for credit losses related to the
transfer of higher quality credit card loans from the legacy Chase portfolio to a securitization trust previously established by Washington Mutual.
(c) Included a release of credit card litigation reserves in the first quarter of 2008.
(d) On September 25, 2008, JPMorgan Chase acquired the banking operations of Washington Mutual Bank from the Federal Deposit Insurance Corporation for $1.9 billion. The fair value of the net assets acquired exceeded
the purchase price which resulted in negative goodwill. In accordance with SFAS 141, noncurrent nonfinancial assets that are not held-for-sale were written down against that negative goodwill. The negative goodwill
remaining of $581 million after writing down nonfinancial assets was recognized as an extraordinary gain in the third quarter of 2008. As a result of refining the purchase price allocation during the fourth quarter of 2008,
an additional gain of $1.3 billion was recognized.
(e) Included accounting conformity loan loss reserve provisions, extraordinary gains and merger costs related to the Washington Mutual transaction, as well as items related to the Bear Stearns merger, including
Bear Stearns' losses, merger costs, Bear Stearns asset management liquidation costs and Bear Stearns private client services broker retention expense.

Page 27

CORPORATE/PRIVATE EQUITY
QUARTERLY TRENDS
1Q09 Change
1Q09

4Q08

3Q08

2Q08

1Q08

4Q08

1Q08

SUPPLEMENTAL
TREASURY
Securities gains (a)
Investment securities portfolio (average) (b)
Investment securities portfolio (ending) (b)
Mortgage loans (average)
Mortgage loans (ending)
PRIVATE EQUITY
Private equity gains (losses)
Direct investments
Realized gains
Unrealized gains (losses) (c)
Total direct investments
Third-party fund investments
Total private equity gains (losses) (d)
Private equity portfolio information
Direct investments
Publicly-held securities
Carrying value
Cost
Quoted public value
Privately-held direct securities
Carrying value
Cost
Third-party fund investments
Carrying value
Cost

$

$

$

$

214
218,961
246,697
7,210
7,162

$

15
(409)
(394)
(68)
(462)

$

305
778
346

$

$

512
143,160
166,662
7,277
7,292

24
(1,000)
(976)
(121)
(1,097)

483
792
543

$

$

$

$

442
105,984
115,703
7,221
7,297

$

40
(273)
(233)
27
(206)

$

600
705
657

$

$

656
97,223
103,751
7,004
7,150

$

540
(326)
214
6
220

$

615
665
732

$

$

42
80,443
91,323
6,730
6,847

(58) %
53
48
(1)
(2)

410 %
172
170
7
5

1,113
(881)
232
(43)
189

(38)
59
60
44
58

(99)
54
NM
(58)
NM

603
499
720

(37)
(2)
(36)

(49)
56
(52)

4,708
5,519

5,564
6,296

6,038
6,058

6,270
6,113

5,191
4,973

(15)
(12)

(9)
11

1,537
2,082

805
1,169

889
1,121

838
1,094

811
1,064

91
78

90
96

Total private equity portfolio - Carrying value

$

6,550

$

6,852

$

7,527

$

7,723

$

6,605

(4)

(1)

Total private equity portfolio - Cost

$

8,379

$

8,257

$

7,884

$

7,872

$

6,536

1

28

(a) Included a $668 million gain on the sale of MasterCard shares in the second quarter of 2008. All periods reflect repositioning of the Corporate investment securities portfolio and exclude gains/losses on securities
used to manage risk associated with MSRs.
(b) Includes Chief Investment Office investment securities only.
(c) Unrealized gains (losses) contain reversals of unrealized gains and losses that were recognized in prior periods and have now been realized.
(d) Included in principal transactions revenue in the Consolidated Statements of Income.

Page 28

CREDIT-RELATED INFORMATION
(in millions)
Mar 31, 2009
Change
Mar 31
2009
CREDIT EXPOSURE
WHOLESALE (a)
Loans - U.S.
Loans - Non-U.S.
TOTAL WHOLESALE LOANS - REPORTED (b)

$

CONSUMER (c)
Home loan portfolio - excluding purchased credit-impaired loans:
Home equity
Prime mortgage
Subprime mortgage
Option ARMs
Total home loan portfolio - excluding purchased credit-impaired loans
Home loan portfolio - purchased credit-impaired loans: (d)
Home equity
Prime mortgage
Subprime mortgage
Option ARMs
Total home loan portfolio - purchased credit-impaired loans
Other consumer:
Auto
Credit card - reported
Other loans
Loans held-for-sale (e)
TOTAL CONSUMER LOANS - REPORTED
TOTAL LOANS - REPORTED
Credit card - securitized
TOTAL LOANS - MANAGED
Receivables from customers (f)
TOTAL CREDIT-RELATED ASSETS
Wholesale lending-related commitments
TOTAL
Memo: Total by category
Total wholesale exposure (g)
Total consumer managed loans (h)
Total

176,282
66,002
242,284

Dec 31
2008

$

186,776
75,268
262,044

Sep 30
2008

$

202,170
86,275
288,445

Jun 30
2008

$

Mar 31
2008

137,236
92,123
229,359

111,781
71,731
14,594
8,940
207,046

28,555
21,855
6,760
31,643
88,813

26,507
24,672
3,863
22,653
77,695

43,065
90,911
33,700
3,665
465,959

$

116,804
70,243
18,162
18,989
224,198

28,366
21,398
6,565
31,243
87,572

$

114,335
72,266
15,330
9,018
210,949

42,603
104,746
33,715
2,028
482,854

43,306
92,881
33,252
1,604
472,936

44,867
76,278
29,187
2,196
308,670

708,243
85,220
793,463
131,247
14,504
939,214
363,013
1,302,227

744,898
85,571
830,469
162,626
16,141
1,009,236
379,871
1,389,107

761,381
93,664
855,045
118,648
25,422
999,115
407,823
1,406,938

538,029
79,120
617,149
122,389
26,572
766,110
430,028
1,196,138

$

$

$

95,129
46,221
14,792
156,142

141,921
89,376
231,297

94,968
44,705
15,775
155,448

Mar 31
2008

(6) %
(12)
(8)

24 %
(26)
5

(2)
(1)
(5)
(1)
(2)

18
60
(7)
NM
33

(1)
(2)
(3)
(1)
(1)

NM
NM
NM
NM
NM

44,714
75,888
25,175
4,534
305,759

-

$

Dec 31
2008

1
(13)
81
(3)

(4)
20
34
(19)
52

537,056
75,062
612,118
99,110
711,228
438,392
1,149,620

(5)
(4)
(19)
(10)
(7)
(4)
(6)

32
14
30
32
NM
32
(17)
13

-

$

751,048
551,179
1,302,227

$

$

808,348
387,790
1,196,138

$

$

840,338
566,600
1,406,938

$

$

820,682
568,425
1,389,107

$

$

$

768,799
380,821
1,149,620

(8)
(3)
(6)

(2)
45
13

$

546,968

$

605,210

$

620,524

$

595,043

$

590,439

(10)

(7)

147,771
9,570
742
158,083

(7)
12
35
(4)

165
NM
12

20,277
768,799

(16)
(10)
(8)

(42)
NM
(2)

Risk profile of wholesale credit exposure:
Investment-grade (i)
Noninvestment-grade: (i)
Noncriticized
Criticized performing
Criticized nonperforming
Total noninvestment-grade
Receivables from customers (f)
Total wholesale exposure

(a)
(b)
(c)
(d)

(e)
(f)
(g)
(h)
(i)

147,891
25,320
4,615
177,826

$

11,750
14,504
751,048

159,379
22,568
3,429
185,376

$

13,955
16,141
820,682

161,503
14,491
1,418
177,412

$

16,980
25,422
840,338

154,218
11,611
899
166,728

$

20,005
26,572
808,348

$

Includes Investment Bank, Commercial Banking, Treasury & Securities Services and Asset Management.
Includes loans held-for-sale and loans at fair value.
Includes Retail Financial Services, Card Services and residential mortgage loans reported in the Corporate/Private Equity segment to be risk managed by the Chief Investment Office.
Purchased credit-impaired loans represent loans acquired in the Washington Mutual transaction for which a deterioration in credit quality occurred between the origination date and JPMorgan Chase's acquisition date. Under
SOP 03-3, these loans were initially recorded at fair value and accrete interest income over the estimated life of the loan when cash flows are reasonably estimable even if the underlying loans are contractually past due.
As of September 30, 2008, an analysis of the acquired portfolio was conducted in order to preliminarily identify loans meeting the SOP 03-3 impairment criteria. This analysis was completed during the fourth quarter of 2008,
resulting in the reclassification of $12.4 billion of acquired loans from the non-credit-impaired loan balances into the credit-impaired loan balances.
Includes loans for prime mortgage of $825 million, $206 million, $132 million, $964 million, and $375 million at March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively, and other
(largely student loans) of $2.8 billion, $1.8 billion, $1.5 billion, $1.2 billion, and $4.2 billion at March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively.
Represents margin loans to prime and retail brokerage customers, which are included in accrued interest and accounts receivable on the Consolidated Balance Sheets.
Primarily represents total wholesale loans, derivative receivables, wholesale lending-related commitments and receivables from customers.
Represents total consumer loans plus credit card securitizations, and excludes consumer lending-related commitments.
Excludes loans held-for-sale and loans at fair value.

Note: The risk profile is based on JPMorgan Chase's internal risk ratings, which generally correspond to the following ratings as defined by Standard & Poor's / Moody's:
Investment-Grade: AAA / Aaa to BBB- / Baa3
Noninvestment-Grade: BB+ / Ba1 and below
Page 29

CREDIT-RELATED INFORMATION, CONTINUED

Mar 31
2009
NONPERFORMING ASSETS AND RATIOS
WHOLESALE LOANS (a)
Loans - U.S.
Loans - Non-U.S.
TOTAL WHOLESALE LOANS

$

CONSUMER LOANS (b)
Home loan portfolio (includes RFS and Corporate/Private Equity):
Home equity (c)
Prime mortgage
Subprime mortgage (c)
Option ARMs
Total home loan portfolio
Auto loans
Credit card - reported
Other loans
TOTAL CONSUMER LOANS (d) (e)

3,040
622
3,662

Dec 31
2008

$

Sep 30
2008

2,123
259
2,382

$

Jun 30
2008

1,185
220
1,405

$

Mar 31, 2009
Change
Dec 31
Mar 31
2008
2008

Mar 31
2008

806
64
870

$

761
20
781

43 %
140
54

299 %
NM
369

1,591
2,712
2,545
97
6,945
165
4
625
7,739

1,394
1,895
2,690
10
5,989
148
4
430
6,571

1,142
1,496
2,384
5,022
119
5
382
5,528

1,008
1,232
1,715
3,955
102
6
340
4,403

924
860
1,401
3,185
94
6
335
3,620

14
43
(5)
NM
16
11
45
18

72
215
82
NM
118
76
(33)
87
114

TOTAL NONPERFORMING LOANS REPORTED (c)

11,401

8,953

6,933

5,273

4,401

27

159

Assets acquired in loan satisfactions
TOTAL NONPERFORMING ASSETS

1,010
2,243
14,654

1,079
2,682
12,714

45
2,542
9,520

80
880
6,233

31
711
5,143

(6)
(16)
15

NM
215
185

22
8
45
85
13
15

NM
127
(33)
264
NM
NM
NM
185

$

TOTAL NONPERFORMING LOANS TO TOTAL LOANS REPORTED
NONPERFORMING ASSETS BY LOB
Investment Bank
Retail Financial Services (c) (e)
Card Services
Commercial Banking
Asset Management
Corporate/Private Equity (f)
TOTAL

$

1.61 %

$

$

3,041
9,582
4
1,651
30
319
27
14,654

1.20

$

$

2,501
8,841
4
1,142
30
172
24
12,714

$
%

0.91

$

$

583
7,878
5
923
121
10
9,520

$
%

0.98

$

$

490
5,153
6
510
68
6
6,233

$
%

0.82

$

$

439
4,230
6
453
11
4
5,143

%

(a) Included nonperforming loans held-for-sale and loans at fair value of $57 million, $32 million, $32 million, $51 million, and $70 million at March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and
March 31, 2008, respectively. Excluded purchased held-for-sale wholesale loans.
(b) There were no nonperforming loans held-for-sale at March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008.
(c) During the second quarter of 2008, the policy for classifying subprime mortgage and home equity loans as nonperforming was changed to conform to all other home lending products.
Prior period nonperforming loans and assets have been revised to reflect this change.
(d) Nonperforming loans and assets excluded (1) loans eligible for repurchase as well as loans repurchased from GNMA pools that are insured by U.S. government agencies of $4.6 billion, $3.3 billion, $1.8 billion,
$1.9 billion, and $1.8 billion, at March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively, and (2) student loans that are 90 days past due
and still accruing, which are insured by U.S. government agencies under the Federal Family Education Loan Program of $433 million, $437 million, $405 million, $394 million,
and $418 million, at March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively. These amounts for GNMA and student loans
are excluded, as reimbursement is proceeding normally.
(e) Excludes purchased credit-impaired loans accounted for under SOP 03-3 that were acquired as part of the Washington Mutual transaction. These loans are accounted for on a pool basis and the pools
are considered to be performing under SOP 03-3.
(f) Predominantly relates to held-for-investment prime mortgage.

Page 30

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