1 q11 erf_supplement_final (1)

297 views

Published on

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
297
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

1 q11 erf_supplement_final (1)

  1. 1. EARNINGS RELEASE FINANCIAL SUPPLEMENT FIRST QUARTER 2011
  2. 2. JPMORGAN CHASE & CO. TABLE OF CONTENTS Page(s) 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 7 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 8 9-12 13-19 20-21 22-23 24-25 26-30 31-32 Credit-Related Information 33-38 Market Risk-Related Information 39 Supplemental Detail Capital and Other Selected Balance Sheet Items Mortgage Loan Repurchase Liability Per Share-Related Information 40 41 42 Non-GAAP Financial Measures 43 Glossary of Terms 44-47 Page 1
  3. 3. JPMORGAN CHASE & CO. CONSOLIDATED FINANCIAL HIGHLIGHTS (in millions, except per share and ratio data ) QUARTERLY TRENDS SELECTED INCOME STATEMENT DATA Reported Basis Total net revenue Total noninterest expense Pre-provision profit Provision for credit losses NET INCOME Managed Basis (a) Total net revenue Total noninterest expense Pre-provision profit Provision for credit losses NET INCOME PER COMMON SHARE DATA Basic Earnings Diluted Earnings 1Q11 4Q10 3Q10 2Q10 1Q10 1Q11 Change 4Q10 1Q10 $ 25,221 15,995 9,226 1,169 5,555 $ 26,098 16,043 10,055 3,043 4,831 $ 23,824 14,398 9,426 3,223 4,418 $ 25,101 14,631 10,470 3,363 4,795 $ 27,671 16,124 11,547 7,010 3,326 (3) % (8) (62) 15 (9) % (1) (20) (83) 67 $ 25,791 15,995 9,796 1,169 5,555 $ 26,722 16,043 10,679 3,043 4,831 $ 24,335 14,398 9,937 3,223 4,418 $ 25,613 14,631 10,982 3,363 4,795 $ 28,172 16,124 12,048 7,010 3,326 (3) (8) (62) 15 (8) (1) (19) (83) 67 1.29 1.28 1.13 1.12 1.02 1.01 1.10 1.09 0.75 0.74 14 14 72 73 0.25 43.34 0.05 43.04 0.05 42.29 0.05 40.99 0.05 39.38 400 1 400 10 Closing share price (b) Market capitalization 46.10 183,783 42.42 165,875 38.06 149,418 36.61 145,554 44.75 177,897 9 11 3 3 COMMON SHARES OUTSTANDING Average: Basic Diluted Common shares at period-end 3,981.6 4,014.1 3,986.6 3,917.0 3,935.2 3,910.3 3,954.3 3,971.9 3,925.8 3,983.5 4,005.6 3,975.8 3,970.5 3,994.7 3,975.4 2 2 2 - Cash dividends declared Book value FINANCIAL RATIOS (c) Return on common equity ("ROE") Return on tangible common equity ("ROTCE") (d) Return on assets ("ROA") 13 % 18 1.07 11 % 16 0.92 10 % 15 0.86 12 % 17 0.94 8 % 12 0.66 CAPITAL RATIOS Tier 1 capital ratio Total capital ratio Tier 1 common capital ratio (e) 12.3 (f) 15.6 (f) 10.0 (f) 12.1 15.5 9.8 11.9 15.4 9.5 12.1 15.8 9.6 11.5 15.1 9.1 (a) (b) (c) (d) (e) (f) For further discussion of managed basis, see Reconciliation from Reported to Managed Summary on page 7. Share prices shown for JPMorgan Chase’s common stock are from the New York Stock Exchange. JPMorgan Chase’s common stock is also listed and traded on the London Stock Exchange and the Tokyo Stock Exchange. Quarterly ratios are based upon annualized amounts. The Firm uses ROTCE, a non-GAAP financial measure, to evaluate the Firm's use of equity and to facilitate comparisons with competitors. For further discussion of ROTCE, see page 43. Tier 1 common capital ratio is Tier 1 common capital divided by risk-weighted assets. The Firm uses Tier 1 common capital along with the other capital measures to assess and monitor its capital position. For further discussion of Tier 1 common capital ratio, see page 43. Estimated. Page 2
  4. 4. JPMORGAN CHASE & CO. CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except ratio and headcount data) QUARTERLY TRENDS 1Q11 SELECTED BALANCE SHEET DATA (Period-end) Total assets Wholesale loans Consumer loans Deposits Common stockholders' equity Total stockholders' equity 4Q10 3Q10 2Q10 1Q10 $ 2,198,161 236,007 449,989 995,829 172,798 180,598 $ 2,117,605 227,633 465,294 930,369 168,306 176,106 $ 2,141,595 220,597 469,934 903,138 166,030 173,830 $ 2,014,019 216,826 482,657 887,805 162,968 171,120 $ 2,135,796 214,290 499,509 925,303 156,569 164,721 Deposits-to-loans ratio 145 % Headcount LINE OF BUSINESS NET INCOME/(LOSS) Investment Bank Retail Financial Services Card Services Commercial Banking Treasury & Securities Services Asset Management Corporate/Private Equity NET INCOME 134 % 242,929 $ $ 2,370 (208) 1,343 546 316 466 722 5,555 131 % 239,831 $ $ 1,501 708 1,299 530 257 507 29 4,831 127 % 236,810 $ $ 1,286 907 735 471 251 420 348 4,418 $ 1,381 1,042 343 693 292 391 653 4,795 4 % 4 (3) 7 3 3 3 % 10 (10) 8 10 10 130 % 232,939 $ 1Q11 Change 4Q10 1Q10 226,623 $ $ 2,471 (131) (303) 390 279 392 228 3,326 1 58 NM 3 3 23 (8) NM 15 7 (4) (59) NM 40 13 19 217 67 Page 3
  5. 5. JPMORGAN CHASE & CO. STATEMENTS OF INCOME (in millions, except per share and ratio data) QUARTERLY TRENDS REVENUE Investment banking fees Principal transactions Lending- and 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 TOTAL NET REVENUE Provision for credit losses NONINTEREST EXPENSE Compensation expense Occupancy expense Technology, communications and equipment expense Professional and outside services Marketing Other expense Amortization of intangibles TOTAL NONINTEREST EXPENSE Income before income tax expense Income tax expense (a) NET INCOME PER COMMON SHARE DATA Basic earnings Diluted earnings FINANCIAL RATIOS Return on equity Return on tangible common equity (b) Return on assets Effective income tax rate (a) Overhead ratio (a) (b) 1Q11 $ 1,793 4,745 1,546 3,606 102 (487) 1,437 574 13,316 15,643 3,738 11,905 25,221 1,169 $ $ 4Q10 $ 1,832 1,915 1,545 3,697 1,253 1,617 1,558 579 13,996 15,612 3,510 12,102 26,098 3,043 8,263 978 1,200 1,735 659 2,943 217 15,995 8,057 2,502 5,555 2Q10 $ 1,421 2,090 1,586 3,349 1,000 888 1,495 585 12,414 15,719 3,032 12,687 25,101 3,363 6,571 1,045 1,198 1,789 584 4,616 240 16,043 7,012 2,181 4,831 6,661 884 1,184 1,718 651 3,082 218 14,398 6,203 1,785 4,418 7,616 883 1,165 1,685 628 2,419 235 14,631 7,107 2,312 4,795 7,276 869 1,137 1,575 583 4,441 243 16,124 4,537 1,211 3,326 $ % 1Q11 Change 4Q10 1Q10 (2) % 23 % 148 4 (6) (2) 10 (92) (83) NM NM (8) 6 (1) 39 (5) (5) (7) 6 19 (2) (13) (3) (9) (62) (83) 1Q10 $ 1,461 4,548 1,646 3,265 610 658 1,361 412 13,961 16,845 3,135 13,710 27,671 7,010 $ 1.29 1.28 13 18 1.07 31 63 3Q10 $ 1,476 2,341 1,563 3,188 102 707 1,477 468 11,322 15,606 3,104 12,502 23,824 3,223 $ 1.13 1.12 11 16 0.92 31 61 $ % $ 1.02 1.01 10 15 0.86 29 60 $ % $ 1.10 1.09 12 17 0.94 33 58 $ % 26 (6) (3) 13 (36) (10) 15 15 15 14 14 0.75 0.74 8 12 0.66 27 58 14 13 6 10 13 (34) (11) (1) 78 107 67 72 73 % The income tax expense in the first quarter of 2010 included tax benefits recognized upon the resolution of tax audits. The Firm uses return on tangible common equity, a non-GAAP financial measure, to evaluate the Firm's use of equity and to facilitate comparisons with competitors. For further discussion of ROTCE, see page 43. Page 4
  6. 6. JPMORGAN CHASE & CO. CONSOLIDATED BALANCE SHEETS (in millions) Mar 31 2011 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 Less: Allowance for loan losses Loans, net of allowance for loan losses Accrued interest and accounts receivable Premises and equipment Goodwill Mortgage servicing rights Other intangible assets Other assets 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 Beneficial interests issued by consolidated VIEs Long-term debt (a) TOTAL LIABILITIES STOCKHOLDERS' EQUITY Preferred stock Common stock Capital surplus Retained earnings Accumulated other comprehensive income Shares held in RSU Trust, at cost Treasury stock, at cost TOTAL STOCKHOLDERS' EQUITY TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (a) $ 23,469 80,842 Dec 31 2010 $ 27,567 21,673 Sep 30 2010 $ 23,960 31,077 Jun 30 2010 $ 32,806 39,430 Mar 31 2010 $ 31,422 59,014 March 31, 2011 Change Dec 31 Mar 31 2010 2010 (15) % 273 (25) % 37 217,356 119,000 222,554 123,587 235,390 127,365 199,024 122,289 230,123 126,741 (2) (4) (6) (6) 422,404 78,744 334,800 685,996 29,750 656,246 79,236 13,422 48,856 13,093 3,857 106,836 $ 2,198,161 409,411 80,481 316,336 692,927 32,266 660,661 70,147 13,355 48,854 13,649 4,039 105,291 $ 2,117,605 $ 378,222 97,293 340,168 690,531 34,161 656,370 63,224 11,316 48,736 10,305 3,982 114,187 2,141,595 $ 317,293 80,215 312,013 699,483 35,836 663,647 61,295 11,267 48,320 11,853 4,178 110,389 2,014,019 $ 346,712 79,416 344,376 713,799 38,186 675,613 53,991 11,123 48,359 15,531 4,383 108,992 2,135,796 3 (2) 6 (1) (8) (1) 13 1 (4) (5) 1 4 22 (1) (3) (4) (22) (3) 47 21 1 (16) (12) (2) 3 $ $ $ 903,138 $ 887,805 $ 925,303 7 8 3 30 7 (3) (9) 11 995,829 930,369 285,444 46,022 36,704 276,644 35,363 34,325 314,161 38,611 35,736 237,455 41,082 32,607 295,171 50,554 33,153 80,031 61,362 171,638 70,917 269,616 2,017,563 76,947 69,219 170,330 77,649 270,653 1,941,499 82,919 74,902 169,365 77,438 271,495 1,967,765 74,745 60,137 160,478 88,148 260,442 1,842,899 78,228 62,741 154,185 93,055 278,685 1,971,075 4 (11) 1 (9) 4 2 (2) 11 (24) (3) 2 7,800 4,105 96,938 69,531 3,096 (68) (7,572) 173,830 2,141,595 8,152 4,105 96,745 65,465 2,404 (68) (5,683) 171,120 2,014,019 8,152 4,105 96,450 61,043 761 (68) (5,722) 164,721 2,135,796 (3) 6 (29) 39 3 4 (4) (2) 28 (6) 22 13 10 3 7,800 4,105 94,660 78,342 712 (53) (4,968) 180,598 $ 2,198,161 7,800 4,105 97,415 73,998 1,001 (53) (8,160) 176,106 $ 2,117,605 $ $ $ Effective January 1, 2011, the long-term portion of advances from Federal Home Loan Banks (“FHLB”) was reclassified to long-term debt. Prior periods have been revised to conform with the current presentation. Page 5
  7. 7. JPMORGAN CHASE & CO. CONDENSED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS (in millions, except rates) QUARTERLY TRENDS 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 Trading assets - derivative receivables All other noninterest-earning assets TOTAL ASSETS LIABILITIES Interest-bearing deposits Federal funds purchased and securities loaned or sold under repurchase agreements Commercial paper Trading liabilities - debt instruments Other borrowings and liabilities (b)(c) Beneficial interests issued by consolidated VIEs Long-term debt (c) Total interest-bearing liabilities Noninterest-bearing deposits Trading liabilities - equity instruments Trading liabilities - derivative payables All other noninterest-bearing liabilities TOTAL LIABILITIES Preferred stock Common stockholders' equity TOTAL STOCKHOLDERS' EQUITY TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 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 loaned or sold under repurchase agreements Commercial paper Trading liabilities - debt instruments Other borrowings and liabilities (b)(c) Beneficial interests issued by consolidated VIEs Long-term debt (c) Total interest-bearing liabilities INTEREST RATE SPREAD NET YIELD ON INTEREST-EARNING ASSETS (a) (b) (c) (d) 1Q11 $ 4Q10 37,155 $ 3Q10 29,213 $ 2Q10 38,747 202,481 114,589 275,512 318,936 688,133 49,887 1,686,693 141,951 85,437 190,371 $ 2,104,452 201,489 119,973 273,929 328,126 690,529 42,583 1,685,842 122,827 87,569 192,906 $ 2,089,144 $ $ $ 669,346 278,250 36,838 75,047 118,767 72,932 269,156 1,551,911 229,461 7,872 71,288 66,705 1,927,237 7,800 169,415 177,215 287,493 34,507 77,096 119,744 78,114 273,066 1,539,366 225,966 7,166 71,727 70,307 1,914,532 7,800 166,812 174,612 $ 2,104,452 $ 2,089,144 1.11 % 1.02 64,229 189,573 113,650 245,532 327,425 705,189 34,429 1,674,535 95,080 79,409 194,623 2,043,647 $ 170,036 114,636 248,089 337,441 725,136 27,885 1,687,452 83,674 78,683 188,871 2,038,680 $ 659,027 700,921 $ $ 192,099 121,302 251,790 327,798 693,791 36,912 1,662,439 96,200 92,857 189,617 2,041,113 $ $ 58,737 668,953 $ 677,431 281,171 34,523 73,278 114,732 83,928 267,556 1,514,215 213,700 6,560 69,350 65,335 1,869,160 7,991 163,962 171,953 $ % $ % 2,043,647 0.63 27 % (42) % (4) 1 (3) 17 16 (2) (1) 1 19 11 (5) (5) 79 70 9 1 3 $ % 5 3 271,934 37,461 65,154 104,080 98,104 281,744 1,535,908 200,075 5,728 59,053 73,670 1,874,434 8,152 156,094 164,246 273,614 37,557 72,276 117,550 90,085 270,085 1,530,120 209,615 5,216 62,547 68,928 1,876,426 8,152 159,069 167,221 2,041,113 0.85 1Q11 Change 4Q10 1Q10 1Q10 (3) 7 (3) (1) (7) (1) 1 2 10 (1) (5) 1 2 1 2 (2) 15 14 (26) (4) 1 15 37 21 (9) 3 (4) 9 8 2,038,680 1 3 0.60 1.09 0.17 4.59 2.89 5.62 1.20 3.79 1.05 0.16 4.29 2.44 5.71 1.54 3.70 0.92 0.22 4.37 2.67 5.71 1.57 3.75 0.84 0.11 4.25 3.14 5.68 1.60 3.79 0.97 0.10 4.56 3.54 5.91 1.36 4.07 0.53 0.50 0.51 0.53 0.51 0.17 0.21 3.85 0.57 1.19 2.39 0.98 0.12 0.21 2.30 1.11 1.13 2.25 0.90 2.81% 2.89% 2.80% 2.88% % (0.28) (d) 0.20 2.64 0.39 1.36 2.30 0.81 (0.07) (d) 0.19 2.49 0.27 1.36 2.00 0.79 (0.05) (d) 0.19 3.39 0.12 1.36 2.01 0.83 2.94% 3.01% 3.00% 3.06% 3.24% 3.32% Includes margin loans. Includes brokerage customer payables and short-term advances from FHLB. Effective January 1, 2011, the long-term portion of the advances from FHLB was reclassified to long-term debt. Prior periods have been revised to conform with the current presentation. Reflects a benefit from the favorable market environments for dollar-roll financings. Page 6
  8. 8. JPMORGAN CHASE & CO. RECONCILIATION FROM REPORTED TO MANAGED SUMMARY (in millions) The Firm prepares its consolidated financial statements using accounting principles generally accepted in the U.S. ("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. 1Q11 In addition to analyzing the Firm’s results on a reported basis, management reviews the Firm’s results and the results of the lines of business on a “managed” basis, which is a non-GAAP financial measure. For additional information on managed basis, refer to the notes on Non-GAAP Financial Measures on page 43. The following summary table provides a reconciliation from the Firm’s reported U.S. GAAP results to managed basis. QUARTERLY TRENDS 1Q11 OTHER INCOME Other income - reported Fully tax-equivalent adjustments Other income - managed TOTAL NONINTEREST REVENUE Total noninterest revenue - reported Fully tax-equivalent adjustments Total noninterest revenue - managed NET INTEREST INCOME Net interest income - reported Fully tax-equivalent adjustments Net interest income - managed TOTAL NET REVENUE Total net revenue - reported Fully tax-equivalent adjustments Total net revenue - managed PRE-PROVISION PROFIT Total pre-provision profit - reported Fully tax-equivalent adjustments Total pre-provision profit - managed INCOME TAX EXPENSE Income tax expense - reported Fully tax-equivalent adjustments Income tax expense - managed $ $ $ $ $ $ $ $ $ $ $ $ 4Q10 574 451 1,025 $ 13,316 451 13,767 $ 11,905 119 12,024 $ 25,221 570 25,791 $ 9,226 570 9,796 $ 2,502 570 3,072 $ $ $ $ $ $ $ 3Q10 579 503 1,082 $ 13,996 503 14,499 $ 12,102 121 12,223 $ 26,098 624 26,722 $ 10,055 624 10,679 $ 2,181 624 2,805 $ $ $ $ $ $ $ 2Q10 468 415 883 $ 11,322 415 11,737 $ 12,502 96 12,598 $ 23,824 511 24,335 $ 9,426 511 9,937 $ 1,785 511 2,296 $ $ $ $ $ $ $ 1Q10 585 416 1,001 $ 12,414 416 12,830 $ 12,687 96 12,783 $ 25,101 512 25,613 $ 10,470 512 10,982 $ 2,312 512 2,824 $ $ $ $ $ $ $ 412 411 823 1Q11 Change 4Q10 1Q10 (1) % (10) (5) 39 % 10 25 13,961 411 14,372 (5) (10) (5) (5) 10 (4) 13,710 90 13,800 (2) (2) (2) (13) 32 (13) 27,671 501 28,172 (3) (9) (3) (9) 14 (8) 11,547 501 12,048 (8) (9) (8) (20) 14 (19) 1,211 501 1,712 15 (9) 10 107 14 79 Page 7
  9. 9. JPMORGAN CHASE & CO. LINE OF BUSINESS FINANCIAL HIGHLIGHTS - MANAGED BASIS (in millions, except ratio data) QUARTERLY TRENDS 1Q11 TOTAL NET REVENUE (FTE) Investment Bank (a) Retail Financial Services Card Services Commercial Banking Treasury & Securities Services Asset Management Corporate/Private Equity (a) TOTAL NET REVENUE TOTAL PRE-PROVISION PROFIT Investment Bank (a) Retail Financial Services Card Services Commercial Banking Treasury & Securities Services Asset Management Corporate/Private Equity (a) TOTAL PRE-PROVISION PROFIT NET INCOME/(LOSS) Investment Bank Retail Financial Services Card Services Commercial Banking Treasury & Securities Services Asset Management Corporate/Private Equity TOTAL NET INCOME AVERAGE EQUITY (b) Investment Bank Retail Financial Services Card Services Commercial Banking Treasury & Securities Services Asset Management Corporate/Private Equity TOTAL AVERAGE EQUITY RETURN ON EQUITY (b) Investment Bank Retail Financial Services Card Services Commercial Banking Treasury & Securities Services Asset Management JPMORGAN CHASE (a) (b) $ $ $ $ $ $ $ $ 4Q10 8,233 6,275 3,982 1,516 1,840 2,406 1,539 25,791 $ 3,217 1,013 2,427 953 463 746 977 9,796 $ 2,370 (208) 1,343 546 316 466 722 5,555 $ 40,000 28,000 13,000 8,000 7,000 6,500 66,915 169,415 24 % (3) 42 28 18 29 13 $ $ $ $ $ 3Q10 6,213 8,525 4,246 1,611 1,913 2,613 1,601 26,722 $ 2,012 3,701 2,732 1,053 443 836 (98) 10,679 $ 1,501 708 1,299 530 257 507 29 4,831 $ 40,000 28,000 15,000 8,000 6,500 6,500 62,812 166,812 $ 15 10 34 26 16 31 11 $ $ $ $ % 2Q10 5,353 7,646 4,253 1,527 1,831 2,172 1,553 24,335 $ 1,649 3,129 2,808 967 421 684 279 9,937 $ 1,286 907 735 471 251 420 348 4,418 $ 40,000 28,000 15,000 8,000 6,500 6,500 59,962 163,962 $ 13 13 19 23 15 26 10 $ $ $ $ % 1Q11 Change 4Q10 1Q10 1Q10 6,332 7,809 4,217 1,486 1,881 2,068 1,820 25,613 $ 1,810 3,528 2,781 944 482 663 774 10,982 $ 1,381 1,042 343 693 292 391 653 4,795 $ 40,000 28,000 15,000 8,000 6,500 6,500 55,069 159,069 $ 14 15 9 35 18 24 12 $ $ $ $ % 8,319 7,776 4,447 1,416 1,756 2,131 2,327 28,172 33 % (26) (6) (6) (4) (8) (4) (3) (1) % (19) (10) 7 5 13 (34) (8) 3,481 3,534 3,045 877 431 689 (9) 12,048 60 (73) (11) (9) 5 (11) NM (8) (8) (71) (20) 9 7 8 NM (19) 2,471 (131) (303) 390 279 392 228 3,326 58 NM 3 3 23 (8) NM 15 (4) (59) NM 40 13 19 217 67 (13) 8 7 2 (13) 8 28 9 40,000 28,000 15,000 8,000 6,500 6,500 52,094 156,094 25 % (2) (8) 20 17 24 8 Corporate/Private Equity includes an adjustment to offset IB's inclusion of a credit allocation income/expense to/from TSS in total net revenue; TSS reports the credit allocation as a separate line on its income statement (not within total net revenue). Equity for a line of business represents the amount the Firm believes the business would require if it were operating independently, incorporating sufficient capital to address economic risk measures, regulatory capital requirements and capital levels for similarly rated peers. Capital is also allocated to each line of business for, among other things, goodwill and other intangibles associated with acquisitions effected by the line of business. Return on common equity is measured and internal targets for expected returns are established as key measures of a business segment’s performance. Effective January 1, 2011, capital allocated to Card Services was reduced by $2.0 billion, to $13.0 billion, which largely reflects portfolio runoff and the improving risk profile of the business; capital allocated to Treasury & Securities Services was increased by $500 million, to $7.0 billion. Page 8
  10. 10. JPMORGAN CHASE & CO. INVESTMENT BANK FINANCIAL HIGHLIGHTS (in millions, except ratio data) QUARTERLY TRENDS 1Q11 INCOME STATEMENT REVENUE Investment banking fees Principal transactions Lending- and deposit-related fees Asset management, administration and commissions All other income (a) Noninterest revenue Net interest income TOTAL NET REVENUE (b) $ Provision for credit losses 1,779 3,398 214 619 166 6,176 2,057 8,233 4Q10 $ (429) 1,833 1,289 209 652 185 4,168 2,045 6,213 3Q10 $ (271) 1,502 1,129 205 565 61 3,462 1,891 5,353 2Q10 $ (142) 1,405 2,105 203 633 86 4,432 1,900 6,332 1Q10 $ (325) 1,446 3,931 202 563 49 6,191 2,128 8,319 (462) 1Q11 Change 4Q10 1Q10 (3) % 164 2 (5) (10) 48 1 33 23 % (14) 6 10 239 (3) (1) (58) 7 NONINTEREST EXPENSE Compensation expense Noncompensation expense TOTAL NONINTEREST EXPENSE 3,294 1,722 5,016 1,845 2,356 4,201 2,031 1,673 3,704 2,923 1,599 4,522 2,928 1,910 4,838 79 (27) 19 13 (10) 4 Income before income tax expense Income tax expense NET INCOME 3,646 1,276 2,370 2,283 782 1,501 1,791 505 1,286 2,135 754 1,381 3,943 1,472 2,471 60 63 58 (8) (13) (4) 1 (22) 6 (3) 82 25 NM 33 41 (8) 33 23 (4) (4) (258) (1) $ FINANCIAL RATIOS ROE ROA Overhead ratio Compensation expense as a percent of total net revenue (c) REVENUE BY BUSINESS Investment banking fees: Advisory Equity underwriting Debt underwriting Total investment banking fees Fixed income markets Equity markets Credit portfolio (a) Total net revenue (a) (b) (c) $ 24 % 1.18 61 40 $ $ 429 379 971 1,779 5,238 1,406 (190) 8,233 $ 15 % 0.75 68 30 $ $ 424 489 920 1,833 2,875 1,128 377 6,213 $ 13 % 0.68 69 38 $ $ 385 333 784 1,502 3,123 1,135 (407) 5,353 $ 14 % 0.78 71 46 $ $ 355 354 696 1,405 3,563 1,038 326 6,332 25 % 1.48 58 35 $ $ 305 413 728 1,446 5,464 1,462 (53) 8,319 IB manages credit exposures related to the Global Corporate Bank ("GCB") on behalf of IB and TSS. Effective January 1, 2011, IB and TSS will share the economics related to the Firm’s GCB clients. IB recognizes this sharing arrangement within all other income. Prior-year periods reflected the reimbursement from TSS for a portion of the total costs of managing the credit portfolio on behalf of TSS. Total net revenue included tax-equivalent adjustments, predominantly due to income tax credits related to affordable housing and alternative energy investments, as well as taxexempt income from municipal bond investments of $438 million, $475 million, $390 million, $401 million and $403 million for the quarters ended March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively. The compensation expense as a percentage of total net revenue ratio for the second quarter of 2010 excluding the payroll tax expense related to the U.K. Bank Payroll Tax on certain compensation awarded from December 9, 2009 to April 5, 2010 to relevant banking employees, which is a non-GAAP financial measure, was 37%. IB excludes this tax from the ratio because it enables comparability with prior periods. Page 9
  11. 11. JPMORGAN CHASE & CO. INVESTMENT BANK FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except headcount and ratio data) QUARTERLY TRENDS 1Q11 SELECTED BALANCE SHEET DATA (period-end) Loans: Loans retained (a) Loans held-for-sale and loans at fair value Total loans 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 and loans at fair value Total loans Adjusted assets (b) Equity Derivative receivables 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 Net charge-off/(recovery) rate (a)(d) Allow. for loan losses to period-end loans retained (a)(d) Allow. for loan losses to nonaccrual loans retained (a)(c)(d) Nonaccrual loans to total period-end loans (a) (b) (c) (d) 3Q10 2Q10 1Q10 $ 52,712 5,070 57,782 40,000 $ 53,145 3,746 56,891 40,000 $ 51,299 2,252 53,551 40,000 $ 54,049 3,221 57,270 40,000 $ 53,010 3,594 56,604 40,000 $ 815,828 368,956 67,462 $ 792,703 346,990 72,491 $ 746,926 300,517 76,530 $ 710,005 296,031 65,847 $ 1Q11 Change 4Q10 1Q10 (1) % 35 2 - (1) % 41 2 - 676,122 284,085 66,151 3 6 (7) 21 30 2 53,370 3,835 57,205 611,038 40,000 $ 52,502 3,504 56,006 587,307 40,000 53,331 2,678 56,009 539,459 40,000 53,351 3,530 56,881 527,520 40,000 58,501 3,150 61,651 506,635 40,000 2 9 2 4 - (9) 22 (7) 21 - 26,494 Headcount CREDIT DATA AND QUALITY STATISTICS Net charge-offs/(recoveries) Nonperforming assets: Nonaccrual loans: Nonaccrual loans retained (a)(c) Nonaccrual loans held-for-sale and loans at fair value Total nonaccrual loans 4Q10 26,314 26,373 26,279 24,977 1 6 697 NM (82) 123 $ (23) $ 33 $ 28 $ 2,388 3,159 2,025 1,926 2,459 (24) (3) 259 2,647 460 3,619 361 2,386 334 2,260 282 2,741 (44) (27) (8) (3) 21 73 2,741 34 117 3,770 255 148 2,789 315 151 2,726 363 185 3,289 (38) (38) (27) (94) (61) (17) 1,330 424 1,754 1,863 447 2,310 1,976 570 2,546 2,149 564 2,713 2,601 482 3,083 (29) (5) (24) (49) (12) (43) 0.93 % 2.52 56 4.58 (0.17) % 3.51 59 6.36 0.25 % 3.85 98 4.46 0.21 % 3.98 112 3.95 4.83 % 4.91 106 4.84 Loans retained included credit portfolio loans, leveraged leases and other accrual loans, and excluded loans held-for-sale and loans at fair value. Adjusted assets, a non-GAAP financial measure, is presented to assist the reader in comparing IB’s asset and capital levels to other investment banks in the securities industry. For further discussion of adjusted assets, see page 43. Allowance for loan losses of $567 million, $1.1 billion, $603 million, $617 million and $811 million were held against these nonaccrual loans at March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively. Loans held-for-sale and loans at fair value were excluded when calculating the allowance coverage ratio and net charge-off/(recovery) rate. Page 10
  12. 12. JPMORGAN CHASE & CO. INVESTMENT BANK FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except ratio and rankings data) QUARTERLY TRENDS 1Q11 MARKET RISK - AVERAGE TRADING AND CREDIT PORTFOLIO VAR - 95% CONFIDENCE LEVEL Trading activities: Fixed income Foreign exchange Equities Commodities and other Diversification (a) Total trading VaR (b) Credit portfolio VaR (c) Diversification (a) Total trading and credit portfolio VaR MARKET SHARES AND RANKINGS (d) Global investment banking fees (e) Debt, equity and equity-related Global U.S. Syndicated loans Global U.S. Long-term debt (f) Global U.S. Equity and equity-related Global (g) U.S. Announced M&A (h) Global U.S. (a) (b) (c) (d) (e) (f) (g) (h) $ $ 4Q10 49 11 29 13 (38) 64 26 (7) 83 $ 53 10 23 14 (38) 62 26 (10) 78 $ March 31, 2011 YTD Market Share Rankings 8.6 % #1 3Q10 $ $ 2Q10 72 9 21 13 (38) 77 30 (8) 99 $ 64 10 20 20 (42) 72 27 (9) 90 $ 1Q11 Change 4Q10 1Q10 1Q10 $ $ 69 13 24 15 (49) 72 19 (9) 82 (8) % 10 26 (7) 3 30 6 (29) % (15) 21 (13) 22 (11) 37 22 1 Full Year 2010 Market Share Rankings 7.6 % #1 6.6 11.8 3 1 7.2 11.1 1 1 12.3 24.5 1 1 8.5 19.3 1 2 6.7 11.8 3 1 7.2 10.9 2 2 5.7 9.5 7 4 7.3 12.6 3 2 26.8 44.5 1 1 16.3 23.0 3 3 Average value-at-risk (“ VaR”) was less than the sum of the VaR of the components described above, which is due to portfolio diversification. The diversification effect reflects the fact that the risks were not perfectly correlated. The risk of a portfolio of positions is therefore usually less than the sum of the risks of the positions themselves. Trading VaR includes substantially all trading activities in IB, including the credit spread sensitivity of certain mortgage products and syndicated lending facilities that the Firm intends to distribute; however, particular risk parameters of certain products are not fully captured, for example, correlation risk. Trading VaR does not include the debit valuation adjustments ("DVA") taken on derivative and structured liabilities to reflect the credit quality of the Firm. Credit portfolio VaR includes the derivative credit valuation adjustments ("CVA"), hedges of the CVA and mark-to-market (“MTM”) hedges of the retained loan portfolio, which are all reported in principal transactions revenue. This VaR does not include the retained loan portfolio, which is not MTM. Source: Dealogic. Global Investment Banking fees reflects the ranking of fees and market share. Remainder of rankings reflects transaction volume rank and market share. Global IB fees exclude money market, short-term debt and shelf deals. Long-term debt tables include investment-grade, high-yield, supranationals, sovereigns, agencies, covered bonds, asset-backed securities and mortgage-backed securities; and exclude money market, short-term debt, and U.S. municipal securities. Equity and equity-related rankings include rights offerings and Chinese A-Shares. Global announced M&A is based on transaction value at announcement; all other rankings are based on transaction 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%. M&A for the first quarter 2011 and full year 2010 reflects the removal of any withdrawn transactions. U.S. announced M&A represents any U.S. involvement ranking. Page 11
  13. 13. JPMORGAN CHASE & CO. INVESTMENT BANK FINANCIAL HIGHLIGHTS, CONTINUED QUARTERLY TRENDS INTERNATIONAL METRICS Total net revenue: (in millions) (a) Asia/Pacific Latin America/Caribbean Europe/Middle East/Africa North America Total net revenue Loans (period-end): (in millions) (b) Asia/Pacific Latin America/Caribbean Europe/Middle East/Africa North America Total loans (a) (b) 1Q11 $ $ $ $ 4Q10 1,122 327 2,592 4,192 8,233 $ 5,472 2,190 14,059 30,991 52,712 $ $ $ 3Q10 927 172 1,423 3,691 6,213 $ 5,924 2,200 13,961 31,060 53,145 $ $ $ 2Q10 993 167 1,538 2,655 5,353 $ 5,595 1,545 12,781 31,378 51,299 $ $ $ 1Q10 901 248 1,544 3,639 6,332 $ 5,697 1,763 12,959 33,630 54,049 $ $ $ 988 310 2,875 4,146 8,319 6,195 2,035 12,510 32,270 53,010 1Q11 Change 4Q10 1Q10 21 % 90 82 14 33 14 % 5 (10) 1 (1) (8) 1 (1) (12) 8 12 (4) (1) Regional revenues are based primarily on the domicile of the client and/or location of the trading desk. Includes retained loans based on the domicile of the customer. Excludes loans held-for-sale and loans at fair value. Page 12
  14. 14. JPMORGAN CHASE & CO. RETAIL FINANCIAL SERVICES FINANCIAL HIGHLIGHTS (in millions, except ratio and headcount data) QUARTERLY TRENDS 1Q11 INCOME STATEMENT REVENUE Lending- and deposit-related fees Asset management, administration and commissions Mortgage fees and related income Credit card income Other income Noninterest revenue Net interest income TOTAL NET REVENUE (a) $ 4Q10 746 487 (489) 537 364 1,645 4,630 6,275 $ 3Q10 737 456 1,609 524 370 3,696 4,829 8,525 $ 2Q10 759 443 705 502 379 2,788 4,858 7,646 $ 1Q11 Change 4Q10 1Q10 1Q10 780 433 886 480 413 2,992 4,817 7,809 $ 841 452 655 450 354 2,752 5,024 7,776 1 % 7 NM 2 (2) (55) (4) (26) (11) % 8 NM 19 3 (40) (8) (19) Provision for credit losses 1,326 2,456 1,548 1,715 3,733 (46) (64) NONINTEREST EXPENSE Compensation expense Noncompensation expense Amortization of intangibles TOTAL NONINTEREST EXPENSE 1,971 3,231 60 5,262 1,905 2,851 68 4,824 1,915 2,533 69 4,517 1,842 2,369 70 4,281 1,770 2,402 70 4,242 3 13 (12) 9 11 35 (14) 24 1,245 537 708 1,581 674 907 1,813 771 1,042 NM NM NM (57) (54) (59) Income/(loss) before income tax expense/(benefit) Income tax expense/(benefit) NET INCOME/(LOSS) $ FINANCIAL RATIOS ROE Overhead ratio Overhead ratio excluding core deposit intangibles (b) SELECTED BALANCE SHEET DATA (period-end) Assets Loans: Loans retained Loans held-for-sale and loans at fair value (c) Total loans Deposits Equity SELECTED BALANCE SHEET DATA (average) Assets Loans: Loans retained Loans held-for-sale and loans at fair value (c) Total loans Deposits Equity Headcount (a) (b) (c) (313) (105) (208) $ (3) % 84 83 $ 355,394 10 57 56 $ 366,841 $ % 13 59 58 $ 367,675 $ % 15 55 54 $ 375,329 $ % (199) (68) (131) (2) % 55 54 $ 382,475 (3) (7) 308,827 12,234 321,061 380,494 28,000 316,725 14,863 331,588 370,819 28,000 323,481 13,071 336,552 364,186 28,000 330,329 12,599 342,928 359,974 28,000 339,002 11,296 350,298 362,470 28,000 (2) (18) (3) 3 - (9) 8 (8) 5 - 364,266 373,883 375,968 381,906 393,867 (3) (8) 312,543 17,519 330,062 372,634 28,000 320,407 18,883 339,290 367,920 28,000 326,905 15,683 342,588 362,559 28,000 335,308 14,426 349,734 362,010 28,000 342,997 17,055 360,052 356,934 28,000 (2) (7) (3) 1 - (9) 3 (8) 4 - 123,550 121,876 119,424 116,879 112,616 1 10 Total net revenue included tax-equivalent adjustments associated with tax-exempt loans to municipalities and other qualified entities of $3 million, $1 million, $4 million, $5 million and $5 million for the quarters ended March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively. 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 would result in a higher overhead ratio in the earlier years and a lower overhead ratio in later years; this method would therefore result in an improving overhead ratio over time, all things remaining equal. The non-GAAP ratio excludes Retail Banking's CDI amortization expense related to prior business combination transactions of $60 million, $68 million, $69 million, $69 million and $70 million for the quarters ended March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively. Loans at fair value consist of prime mortgages originated with the intent to sell that are accounted for at fair value and classified as trading assets on the Consolidated Balance Sheets. These loans totaled $12.0 billion, $14.7 billion, $12.6 billion, $12.2 billion and $8.4 billion at March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively. Average balances of these loans totaled $17.4 billion, $18.7 billion, $15.3 billion, $12.5 billion and $14.2 billion for the quarters ended March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively. Page 13
  15. 15. JPMORGAN CHASE & CO. RETAIL FINANCIAL SERVICES FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except ratio data) QUARTERLY TRENDS 1Q11 CREDIT DATA AND QUALITY STATISTICS Net charge-offs Nonaccrual loans: Nonaccrual loans retained Nonaccrual loans held-for-sale and loans at fair value Total nonaccrual loans (a)(b)(c) Nonperforming assets (a)(b)(c) Allowance for loan losses Net charge-off rate (d) Net charge-off rate excluding purchased credit-impaired ("PCI") loans (d)(e) Allowance for loan losses to ending loans retained (d) Allowance for loan losses to ending loans retained excluding PCI loans (d)(e) Allowance for loan losses to nonaccrual loans retained (a)(d)(e) Nonaccrual loans to total loans Nonaccrual loans to total loans excluding PCI loans (a) (a) (b) (c) (d) (e) $ 1,326 4Q10 $ 2,159 3Q10 $ 1,548 2Q10 $ 1,761 1Q10 $ 2,438 1Q11 Change 4Q10 1Q10 (39) % (46) % 8,499 8,768 9,801 10,457 10,769 (3) (21) 150 8,649 9,905 16,453 145 8,913 10,266 16,453 166 9,967 11,421 16,154 176 10,633 11,907 16,152 217 10,986 12,191 16,200 3 (3) (4) - (31) (21) (19) 2 1.72 % 2.67 % 1.88 % 2.11 % 2.88 % 2.23 5.33 3.47 5.19 2.44 4.99 2.75 4.89 3.76 4.78 4.84 4.72 5.36 5.26 5.16 135 2.69 3.46 131 2.69 3.44 136 2.96 3.81 128 3.10 4.00 124 3.14 4.05 Excludes PCI loans that were acquired as part of the Washington Mutual transaction, which are accounted for on a pool basis. Since each pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, the past-due status of the pools, or that of the individual loans within the pools, is not meaningful. Because the Firm is recognizing interest income on each pool of loans, they are all considered to be performing. Certain of these loans are classified as trading assets on the Consolidated Balance Sheets. At March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $9.8 billion, $10.5 billion, $10.2 billion, $10.1 billion and $10.5 billion, respectively, that are 90 days past due and accruing at the guaranteed reimbursement rate; (2) real estate owned insured by U.S. government agencies of $2.3 billion, $1.9 billion, $1.7 billion, $1.4 billion and $707 million, respectively; and (3) 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 (“FFELP”), of $615 million, $625 million, $572 million, $447 million and $581 million, respectively. These amounts are excluded as reimbursement of insured amounts is proceeding normally. 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. Excludes the impact of PCI loans 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 that date, of credit losses over the remaining life of the portfolio. An allowance for loan losses of $4.9 billion, $4.9 billion, $2.8 billion, $2.8 billion and $2.8 billion was recorded for these loans at March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively, which has also been excluded from the applicable ratios. To date, no charge-offs have been recorded for these loans. Page 14
  16. 16. JPMORGAN CHASE & CO. RETAIL FINANCIAL SERVICES FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except ratio data and where otherwise noted) QUARTERLY TRENDS 1Q11 RETAIL BANKING Noninterest revenue Net interest income Total net revenue Provision for credit losses Noninterest expense Income before income tax expense Net income $ $ Overhead ratio Overhead ratio excluding core deposit intangibles (a) BUSINESS METRICS (in billions, except where otherwise noted) Business banking origination volume (in millions) 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 CREDIT DATA AND QUALITY STATISTICS Net charge-offs Net charge-off rate Nonperforming assets 4Q10 1,756 2,659 4,415 119 2,802 1,494 891 $ $ 63 % 62 $ 1,425 17.0 3Q10 1,715 2,693 4,408 73 2,668 1,667 954 $ $ 61 % 59 $ 1,435 16.8 2Q10 1,691 2,745 4,436 175 2,779 1,482 848 $ $ 63 % 61 $ 1,126 16.6 1,684 2,712 4,396 168 2,633 1,595 914 $ $ 60 % 58 $ 1Q11 Change 4Q10 1Q10 1Q10 1,222 16.6 1,702 2,635 4,337 191 2,577 1,569 898 2 % (1) 63 5 (10) (7) 3 % 1 2 (38) 9 (5) (1) 59 % 58 $ 905 16.8 (1) 1 57 1 137.4 176.3 44.0 357.7 16.9 131.7 166.6 45.9 344.2 16.6 124.2 162.4 48.9 335.5 16.6 123.5 161.8 50.5 335.8 16.7 123.8 163.4 53.2 340.4 16.9 4 6 (4) 4 2 11 8 (17) 5 - 126.6 164.7 47.4 338.7 3.00 % 28.3 $ 123.5 162.2 49.8 335.5 3.08 % 27.7 $ 123.6 162.8 51.4 337.8 3.05 % 28.4 $ 119.7 158.6 55.6 333.9 3.02 % 28.9 4 4 (5) 3 10 8 (19) 4 $ 132.0 171.1 45.0 348.1 2.92 % 28.7 $ 1 (1) 173 4.13 % 846 $ 175 4.18 % 913 $ 168 4.04 % 920 $ 191 4.58 % 872 (31) (38) $ 119 2.86 % 822 $ (3) (6) RETAIL BRANCH BUSINESS METRICS Investment sales volume 6,584 6,069 5,798 5,756 5,956 8 11 Number of: Branches ATMs Personal bankers Sales specialists Active online customers (in thousands) Checking accounts (in thousands) 5,292 16,265 21,875 7,336 18,318 26,622 5,268 16,145 21,715 7,196 17,744 27,252 5,192 15,815 21,438 7,123 17,167 27,014 5,159 15,654 20,170 6,785 16,584 26,351 5,155 15,549 19,003 6,315 16,208 25,830 1 1 2 3 (2) 3 5 15 16 13 3 (a) Retail Banking uses the overhead ratio (excluding the amortization of CDI), a non-GAAP financial measure, to evaluate the underlying expense trends of the business. Including CDI amortization expense in the overhead ratio calculation would result in a higher overhead ratio in the earlier years and a lower overhead ratio in later years; this method would therefore result in an improving overhead ratio over time, all things remaining equal. The non-GAAP ratio excludes Retail Banking's CDI amortization expense related to prior business combination transactions of $60 million, $68 million, $69 million, $69 million and $70 million for the quarters ended March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively. Page 15
  17. 17. JPMORGAN CHASE & CO. RETAIL FINANCIAL SERVICES FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except ratio data and where otherwise noted) QUARTERLY TRENDS 1Q11 MORTGAGE BANKING, AUTO & OTHER CONSUMER LENDING Noninterest revenue Net interest income Total net revenue Provision for credit losses Noninterest expense Income/(loss) before income tax expense/(benefit) Net income/(loss) $ $ Overhead ratio BUSINESS METRICS (in billions) End-of-period loans owned: Auto Prime mortgage, including option ARMs (a) Student and other Total end-of-period loans owned Average loans owned: Auto Prime mortgage, including option ARMs (a) Student and other Total average loans owned (b) (119) 815 696 131 2,105 (1,540) (937) 302 $ 4Q10 $ $ % 47.4 14.1 14.3 75.8 3Q10 1,971 817 2,788 46 1,743 999 577 63 $ $ $ % 48.4 14.2 14.4 77.0 2Q10 1,076 809 1,885 176 1,348 361 207 72 $ $ $ % 48.2 13.8 14.6 76.6 1,256 792 2,048 175 1,243 630 364 61 $ 1Q11 Change 4Q10 1Q10 1Q10 $ $ % 47.5 13.2 15.1 75.8 1,018 893 1,911 217 1,246 448 257 65 $ NM % (75) 185 21 NM NM NM % (9) (64) (40) 69 NM NM % 47.4 13.7 17.4 78.5 (2) (1) (1) (2) 3 (18) (3) 47.7 14.0 14.4 76.1 48.3 13.9 14.6 76.8 47.7 13.6 14.8 76.1 47.5 13.6 16.7 77.8 46.9 12.5 18.4 77.8 (1) 1 (1) (1) 2 12 (22) (2) CREDIT DATA AND QUALITY STATISTICS Net charge-offs: Auto Prime mortgage, including option ARMs Student and other Total net charge-offs 47 4 80 131 71 12 114 197 67 10 82 159 58 13 150 221 102 6 64 172 (34) (67) (30) (34) (54) (33) 25 (24) Net charge-off rate: Auto Prime mortgage, including option ARMs Student and other Total net charge-off rate (b) 0.40 0.12 2.25 0.70 (7) (7) 30+ day delinquency rate (c)(d)(e) Nonperforming assets (f)(g) (a) (b) (c) (d) (e) (f) (g) $ 1.59 931 % 0.58 0.35 3.10 1.02 $ 1.68 996 % 0.56 0.30 2.21 0.83 $ 1.55 1,052 % 0.49 0.39 4.04 1.17 $ 1.43 1,013 % 0.88 0.20 1.64 0.93 $ 1.52 1,006 % Predominantly represents prime loans repurchased from Government National Mortgage Association (“Ginnie Mae”) pools, which are insured by U.S. government agencies. Total average loans owned includes loans held-for-sale of $133 million, $192 million, $338 million, $1.9 billion and $2.9 billion for the quarters ended March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively. These amounts are excluded when calculating the net charge-off rate. Total end-of-period loans owned includes loans held-for-sale of $188 million, $154 million, $467 million, $434 million and $2.9 billion for the quarters ended March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively. These amounts are excluded when calculating the 30+ day delinquency rate. Excludes mortgage loans that are insured by U.S. government agencies of $10.4 billion, $11.4 billion, $11.1 billion, $10.9 billion and $11.2 billion at March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively. These amounts are excluded as reimbursement of insured amounts is proceeding normally. Excludes loans that are 30 days past due and still accruing, which are insured by U.S. government agencies under the FFELP, of $1.0 billion, $1.1 billion, $1.0 billion, $988 million and $965 million at March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively. These amounts are excluded as reimbursement of insured amounts is proceeding normally. At March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $9.8 billion, $10.5 billion, $10.2 billion, $10.1 billion and $10.5 billion, respectively, that are 90 days past due and accruing at the guaranteed reimbursement rate; (2) real estate owned insured by U.S. government agencies of $2.3 billion, $1.9 billion, $1.7 billion, $1.4 billion and $707 million, respectively; and (3) student loans that are 90 days past due and still accruing, which are insured by U.S. government agencies under the FFELP, of $615 million, $625 million, $572 million, $447 million and $581 million, respectively. These amounts are excluded as reimbursement of insured amounts is proceeding normally. During the third quarter of 2010, $147 million of nonperforming assets pertaining to the second quarter of 2010 were reclassified from Real Estate Portfolios to Mortgage Banking, Auto & Other Consumer Lending. Page 16
  18. 18. JPMORGAN CHASE & CO. RETAIL FINANCIAL SERVICES FINANCIAL HIGHLIGHTS, CONTINUED (in billions, except ratio data and where otherwise noted) QUARTERLY TRENDS 1Q11 MORTGAGE BANKING, AUTO & OTHER CONSUMER LENDING (continued) Origination volume: Mortgage origination volume by channel Retail Wholesale (a) Correspondent (a) CNT (negotiated transactions) Total mortgage origination volume Student Auto $ Application volume: Mortgage application volume by channel Retail Wholesale (a) Correspondent (a) Total mortgage application volume (a) (b) (c) 21.0 0.2 13.5 1.5 36.2 0.1 4.8 $ 3Q10 22.9 0.3 25.5 2.1 50.8 4.8 $ 2Q10 19.2 0.2 19.1 2.4 40.9 0.2 6.1 $ 1Q11 Change 4Q10 1Q10 1Q10 15.3 0.4 14.7 1.8 32.2 0.1 5.8 $ 11.4 0.4 16.0 3.9 31.7 1.6 6.3 (8) % (33) (47) (29) (29) NM - 84 % (50) (16) (62) 14 (94) (24) 31.3 0.3 13.6 45.2 32.4 0.4 24.9 57.7 34.6 0.6 30.7 65.9 27.8 0.6 23.5 51.9 20.3 0.8 18.2 39.3 (3) (25) (45) (22) 54 (63) (25) 15 17.5 128.4 3.2 955.0 958.7 13.1 Average mortgage loans held-for-sale and loans at fair value (b) Average assets Repurchase reserve (ending) Third-party mortgage loans serviced (ending) Third-party mortgage loans serviced (average) MSR net carrying value (ending) Ratio of MSR net carrying value (ending) to third-party mortgage loans serviced (ending) Ratio of annualized loan servicing revenue to third-party mortgage loans serviced (average) MSR revenue multiple (c) SUPPLEMENTAL MORTGAGE FEES AND RELATED INCOME DETAILS (in millions) Net production revenue: Production revenue Repurchase losses Net production revenue Net mortgage servicing revenue: Operating revenue: Loan servicing revenue Other changes in MSR asset fair value Total operating revenue Risk management: Changes in MSR asset fair value due to inputs or assumptions in model Derivative valuation adjustments and other Total risk management Total net mortgage servicing revenue Mortgage fees and related income 4Q10 18.9 130.3 3.0 967.5 981.7 13.6 15.6 125.8 3.0 1,012.7 1,028.6 10.3 12.6 123.2 2.0 1,055.2 1,063.7 11.8 14.5 124.8 1.6 1,075.0 1,076.4 15.5 (7) (1) 7 (1) (2) (4) 21 3 100 (11) (11) (15) 433 (432) 1 (38) (20) (65) 57 3 NM (7) (1) (15) 1.37 % 1.41 0.45 3.04x $ 679 (420) 259 % 1.02 0.46 3.07x $ 1,098 (349) 749 % 1.12 0.44 2.32x $ 1,233 (1,464) (231) % 1.44 0.45 2.49x $ 676 (667) 9 $ 1,052 (563) 489 $ 1,129 (555) 574 1,153 (604) 549 1,186 (620) 566 1,107 (605) 502 (751) (486) (1,237) (748) (489) 2,909 (2,623) 286 860 1,609 (1,497) 1,884 387 936 705 (3,584) 3,895 311 877 886 (96) 248 152 654 655 $ $ $ % 0.42 3.43x $ NM 81 NM NM NM (5) 7 (3) NM NM NM NM NM Includes rural housing loans sourced through brokers and correspondents, which are underwritten under U.S. Department of Agriculture guidelines. Loans at fair value consist of prime mortgages originated with the intent to sell that are accounted for at fair value and classified as trading assets on the Consolidated Balance Sheets. Average balances of these loans totaled $17.4 billion, $18.7 billion, $15.3 billion, $12.5 billion and $14.2 billion for the quarters ended March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively. Represents the ratio of MSR net carrying value (ending) to third-party mortgage loans serviced (ending) divided by the ratio of annualized loan servicing revenue to third-party mortgage loans serviced (average). Page 17
  19. 19. JPMORGAN CHASE & CO. RETAIL FINANCIAL SERVICES FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except ratio data and where otherwise noted) QUARTERLY TRENDS 1Q11 REAL ESTATE PORTFOLIOS Noninterest revenue Net interest income Total net revenue Provision for credit losses Noninterest expense Income/(loss) before income tax expense/(benefit) Net income/(loss) $ $ Overhead ratio BUSINESS METRICS (in billions) LOANS EXCLUDING PCI LOANS (a) End-of-period loans owned: Home equity Prime mortgage, including option ARMs Subprime mortgage Other Total end-of-period loans owned Average loans owned: Home equity Prime mortgage, including option ARMs Subprime mortgage Other Total average loans owned PCI LOANS (a) End-of-period loans owned: Home equity Prime mortgage Subprime mortgage Option ARMs Total end-of-period loans owned Average loans owned: Home equity Prime mortgage Subprime mortgage Option ARMs Total average loans owned TOTAL REAL ESTATE PORTFOLIOS End-of-period loans owned: Home equity Prime mortgage, including option ARMs Subprime mortgage Other Total end-of-period loans owned Average loans owned: Home equity Prime mortgage, including option ARMs Subprime mortgage Other Total average loans owned Average assets Home equity origination volume (a) 4Q10 8 1,156 1,164 1,076 355 (267) (162) 30 $ 85.3 48.5 10.8 0.8 145.4 $ $ % 3Q10 10 1,319 1,329 2,337 413 (1,421) (823) 31 $ 88.4 49.8 11.3 0.8 150.3 $ $ % 2Q10 21 1,304 1,325 1,197 390 (262) (148) 29 $ 91.7 51.3 12.0 0.9 155.9 $ $ % 52 1,313 1,365 1,372 405 (412) (236) 30 $ 1Q11 Change 4Q10 1Q10 1Q10 94.8 53.1 12.6 1.0 161.5 $ $ % 32 1,496 1,528 3,325 419 (2,216) (1,286) 27 $ (20) % (12) (12) (54) (14) 81 80 (75) % (23) (24) (68) (15) 88 87 % 97.7 55.4 13.2 1.0 167.3 (4) (3) (4) (3) (13) (12) (18) (20) (13) 86.9 49.3 11.1 0.8 148.1 90.2 50.7 11.8 0.9 153.6 93.3 52.2 12.3 1.0 158.8 96.3 54.3 13.1 1.0 164.7 99.5 56.6 13.8 1.1 171.0 (4) (3) (6) (11) (4) (13) (13) (20) (27) (13) 24.0 16.7 5.3 24.8 70.8 24.5 17.3 5.4 25.6 72.8 25.0 17.9 5.5 26.4 74.8 25.5 18.5 5.6 27.3 76.9 26.0 19.2 5.8 28.3 79.3 (2) (3) (2) (3) (3) (8) (13) (9) (12) (11) 24.2 17.0 5.3 25.1 71.6 24.7 17.6 5.4 25.9 73.6 25.2 18.2 5.6 26.7 75.7 25.7 18.8 5.8 27.7 78.0 26.2 19.5 5.9 28.6 80.2 (2) (3) (2) (3) (3) (8) (13) (10) (12) (11) 109.3 90.0 16.1 0.8 216.2 112.9 92.7 16.7 0.8 223.1 116.7 95.6 17.5 0.9 230.7 120.3 98.9 18.2 1.0 238.4 123.7 102.9 19.0 1.0 246.6 (3) (3) (4) (3) (12) (13) (15) (20) (12) 111.1 91.4 16.4 0.8 219.7 207.2 0.2 114.9 94.2 17.2 0.9 227.2 215.3 0.3 118.5 97.1 17.9 1.0 234.5 222.5 0.3 122.0 100.8 18.9 1.0 242.7 230.3 0.3 125.7 104.7 19.7 1.1 251.2 240.2 0.3 (3) (3) (5) (11) (3) (4) (33) (12) (13) (17) (27) (13) (14) (33) PCI 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. These loans were initially recorded at fair value and accrete interest income over the estimated lives of the loans as long as cash flows are reasonably estimable, even if the underlying loans are contractually past due. Page 18
  20. 20. JPMORGAN CHASE & CO. RETAIL FINANCIAL SERVICES FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except ratio data) QUARTERLY TRENDS 1Q11 REAL ESTATE PORTFOLIOS (continued) CREDIT DATA AND QUALITY STATISTICS Net charge-offs excluding PCI loans (a)(b) Home equity Prime mortgage, including option ARMs Subprime mortgage Other Total net charge-offs Net charge-off rate excluding PCI loans (a)(b) Home equity Prime mortgage, including option ARMs Subprime mortgage Other Total net charge-off rate excluding PCI loans Net charge-off rate - reported Home equity Prime mortgage, including option ARMs Subprime mortgage Other Total net charge-off rate - reported 30+ day delinquency rate excluding PCI loans (c) Allowance for loan losses Nonperforming assets (d)(e) Allowance for loan losses to ending loans retained Allowance for loan losses to ending loans retained excluding PCI loans (a) (a) (b) (c) (d) (e) $ 720 161 186 9 1,076 4Q10 $ 3.36 % 1.32 6.80 4.56 2.95 2.63 0.71 4.60 4.56 1.99 $ 6.22 14,659 $ 8,152 6.78 % 6.68 792 558 429 10 1,789 3Q10 $ 3.48 % 4.37 14.42 4.41 4.62 2.73 2.35 9.90 4.41 3.12 6.45 14,659 $ 8,424 6.57 % 6.47 730 266 206 12 1,214 2Q10 $ 796 273 282 21 1,372 3.10 % 2.02 6.64 4.76 3.03 $ 3.32 % 2.02 8.63 8.42 3.34 2.44 1.09 4.57 4.76 2.05 1Q10 2.62 1.09 5.98 8.42 2.27 6.77 14,111 $ 9,456 6.12 % 7.25 6.88 14,127 $ 9,974 5.93 % 7.01 1,126 476 457 16 2,075 1Q11 Change 4Q10 1Q10 (9) % (71) (57) (10) (40) (36) % (66) (59) (44) (48) 4.59 % 3.41 13.43 5.90 4.92 3.63 1.84 9.41 5.90 3.35 7.28 14,127 10,313 5.73 % (3) 4 (21) 6.76 Excludes the impact of PCI loans 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 that date, of credit losses over the remaining life of the portfolio. An allowance for loan losses of $4.9 billion, $4.9 billion, $2.8 billion, $2.8 billion and $2.8 billion was recorded for these loans at March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively, which has also been excluded from the applicable ratios. To date, no charge-offs have been recorded for these loans. Net charge-offs and net charge-off rates for the fourth quarter of 2010 include the effect of $632 million of charge-offs related to an adjustment of the estimated net realizable value of the collateral underlying delinquent residential home loans. Excluding this adjustment, net charge-offs for the fourth quarter of 2010 were $725 million, $240 million and $182 million for the home equity, prime mortgage including option ARMs and subprime mortgage portfolios, respectively. Net charge-off rates excluding this adjustment and excluding PCI loans were 3.19%, 1.88% and 6.12% for the home equity, prime mortgage including option ARMs and subprime mortgage portfolios, respectively. The delinquency rate for PCI loans was 27.36%, 28.20%, 28.07%, 27.91% and 28.49% at March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively. Excludes PCI loans that were acquired as part of the Washington Mutual transaction, which are accounted for on a pool basis. Since each pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, the past-due status of the pools, or that of the individual loans within the pools, is not meaningful. Because the Firm is recognizing interest income on each pool of loans, they are all considered to be performing. During the third quarter of 2010, $147 million of nonperforming assets pertaining to the second quarter of 2010 were reclassified from Real Estate Portfolios to Mortgage Banking, Auto & Other Consumer Lending. Page 19
  21. 21. JPMORGAN CHASE & CO. CARD SERVICES FINANCIAL HIGHLIGHTS (in millions, except ratio data and where otherwise noted) QUARTERLY TRENDS 1Q11 INCOME STATEMENT (a) REVENUE Credit card income All other income (b) Noninterest revenue Net interest income TOTAL NET REVENUE $ Provision for credit losses 4Q10 898 (116) 782 3,200 3,982 $ 3Q10 928 (76) 852 3,394 4,246 $ 2Q10 864 (58) 806 3,447 4,253 $ 1Q11 Change 4Q10 1Q10 1Q10 908 (47) 861 3,356 4,217 $ 813 (55) 758 3,689 4,447 (3) % (53) (8) (6) (6) 10 % (111) 3 (13) (10) 226 671 1,633 2,221 3,512 (66) (94) NONINTEREST EXPENSE Compensation expense Noncompensation expense Amortization of intangibles TOTAL NONINTEREST EXPENSE 364 1,085 106 1,555 318 1,082 114 1,514 316 1,023 106 1,445 327 986 123 1,436 330 949 123 1,402 14 (7) 3 10 14 (14) 11 Income/(loss) before income tax expense/(benefit) Income tax expense/(benefit) NET INCOME/(LOSS) 2,201 858 1,343 2,061 762 1,299 1,175 440 735 560 217 343 7 13 3 NM NM NM $ FINANCIAL RATIOS (a) ROE Overhead ratio Percentage of average loans: Net interest income Provision for credit losses Noninterest revenue Risk adjusted margin (c) Noninterest expense Pretax income/(loss) (ROO) Net income/(loss) BUSINESS METRICS, EXCLUDING COMMERCIAL CARD Sales volume (in billions) New accounts opened Open accounts Merchant acquiring business Bank card volume (in billions) Total transactions (in billions) (a) (b) (c) $ 42 % 39 $ 34 % 36 9.79 0.69 2.39 11.49 4.76 6.73 4.11 $ 19 % 34 9.93 1.96 2.49 10.46 4.43 6.03 3.80 $ 9 % 34 9.76 4.63 2.28 7.42 4.09 3.33 2.08 (467) (164) (303) (8) % 32 9.20 6.09 2.36 5.47 3.94 1.54 0.94 9.60 9.14 1.97 2.43 3.65 (1.22) (0.79) $ 77.5 2.6 91.9 $ 85.9 3.4 90.7 $ 79.6 2.7 89.0 $ 78.1 2.7 88.9 $ 69.4 2.5 88.9 (10) (24) 1 12 4 3 $ 125.7 5.6 $ 127.2 5.6 $ 117.0 5.2 $ 117.1 5.0 $ 108.0 4.7 (1) - 16 19 Effective January 1, 2011, the commercial card loan portfolio that was previously in TSS was transferred to CS. There is no material impact on the financial data; prior-year periods were not revised. The commercial card portfolio is excluded from business metrics and supplemental information where noted. Includes the impact of revenue sharing agreements with other JPMorgan Chase business segments. Represents total net revenue less provision for credit losses. Page 20
  22. 22. JPMORGAN CHASE & CO. CARD SERVICES FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except headcount and ratio data) QUARTERLY TRENDS 1Q11 SELECTED BALANCE SHEET DATA (period-end) (a) Loans (b) Equity $ SELECTED BALANCE SHEET DATA (average) (a) Total assets Loans (c) Equity SUPPLEMENTAL INFORMATION (a)(f) Chase, excluding Washington Mutual portfolio Loans (period-end) Average loans Net interest income (g) Risk adjusted margin (g)(h) Net charge-off rate 30+ day delinquency rate 90+ day delinquency rate Chase, excluding Washington Mutual and Commercial Card portfolios Loans (period-end) Average loans Net interest income (g) Risk adjusted margin (g)(h) Net charge-off rate 30+ day delinquency rate 90+ day delinquency rate (a) (b) (c) (d) (e) (f) (g) (h) 137,676 15,000 $ 136,436 15,000 2Q10 $ 142,994 15,000 1Q10 $ 1Q11 Change 4Q10 1Q10 149,260 15,000 (6) % (13) (14) % (13) $ 138,443 135,585 15,000 141,029 140,059 15,000 146,816 146,302 15,000 156,968 155,790 15,000 (2) (13) (12) (15) (13) 21,774 Delinquency rates (b) 30+ day 90+ day Allowance for loan losses Allowance for loan losses to period-end loans (b) $ 3Q10 138,113 132,537 13,000 Headcount (d) CREDIT QUALITY STATISTICS (a) Net charge-offs Net charge-off rate (c)(e) 128,803 13,000 4Q10 20,739 21,398 21,529 22,478 5 (3) (17) (51) 2,226 $ 6.97 % 3.57 1.93 2,671 $ 7.85 % 4.14 2.25 3,133 $ 8.87 % 4.57 2.41 3,721 $ 10.20 % 4.96 2.76 4,512 11.75 % 5.62 3.15 $ 9,041 $ 7.24 % 11,034 $ 8.14 % 13,029 $ 9.55 % 14,524 $ 10.16 % 16,032 10.74 % (18) (44) $ 116,395 $ 119,411 9.09 % 10.28 6.13 3.22 1.71 123,943 $ 121,493 9.16 % 10.26 7.08 3.66 1.98 121,932 $ 124,933 8.98 % 6.76 8.06 4.13 2.16 127,379 $ 129,847 8.47 % 4.21 9.02 4.48 2.47 132,056 137,183 8.86 % 2.43 10.54 4.99 2.74 (6) (2) (12) (13) $ 115,016 $ 118,145 9.25 % 10.21 6.20 3.25 1.73 123,943 $ 121,493 9.16 % 10.26 7.08 3.66 1.98 121,932 $ 124,933 8.98 % 6.76 8.06 4.13 2.16 127,379 $ 129,847 8.47 % 4.21 9.02 4.48 2.47 132,056 137,183 8.86 % 2.43 10.54 4.99 2.74 (7) (3) (13) (14) Effective January 1, 2011, the commercial card loan portfolio that was previously in TSS was transferred to CS. There is no material impact on the financial data; prior-year periods were not revised. The commercial card portfolio is excluded from business metrics and supplemental information where noted. Total period-end loans include loans held-for-sale of $4.0 billion and $2.2 billion at March 31, 2011 and December 31, 2010, respectively. No allowance for loan losses was recorded for these loans. The held-for-sale loans are excluded when calculating the allowance for loan losses to period-end loans and delinquency rates. The 30+ day delinquency rate including loans held-for-sale, which is a non-GAAP financial measure, was 3.55% and 4.07% at March 31, 2011 and December 31, 2010, respectively. The 90+ day delinquency rate including loans held-for-sale, which is a non-GAAP financial measure, was 1.92% and 2.22% at March 31, 2011 and December 31, 2010, respectively. Total average loans include loans held-for-sale of $3.0 billion and $586 million for the quarters ended March 31, 2011 and December 31, 2010, respectively. These amounts are excluded when calculating the net charge-off rate. The net charge-off rate including loans held-for-sale, which is a non-GAAP financial measure, was 6.81% and 7.82% for the quarters ended March 31, 2011 and December 31, 2010, respectively. The first quarter of 2011 headcount includes 1,274 employees related to the transfer of the commercial card business from TSS to CS. Results for the quarter ended March 31, 2010 reflect the impact of fair value accounting adjustments related to the consolidation of the Washington Mutual Master Trust (“WMMT”) in the second quarter of 2009. Supplemental information is provided for Chase, excluding Washington Mutual and Commercial Card portfolios and including loans held for sale, to provide more meaningful measures that enable comparability with prior periods. As a percentage of average loans. Represents total net revenue less provision for credit losses. Page 21
  23. 23. JPMORGAN CHASE & CO. COMMERCIAL BANKING FINANCIAL HIGHLIGHTS (in millions, except ratio data) QUARTERLY TRENDS 1Q11 INCOME STATEMENT REVENUE Lending- and deposit-related fees Asset management, administration and commissions All other income (a) Noninterest revenue Net interest income TOTAL NET REVENUE (b) $ Provision for credit losses 4Q10 264 35 203 502 1,014 1,516 $ 3Q10 273 35 299 607 1,004 1,611 $ 2Q10 269 36 242 547 980 1,527 $ 1Q11 Change 4Q10 1Q10 1Q10 280 36 230 546 940 1,486 $ 277 37 186 500 916 1,416 (3) % (32) (17) 1 (6) (5) % (5) 9 11 7 47 152 166 (235) 214 (69) (78) NONINTEREST EXPENSE Compensation expense Noncompensation expense Amortization of intangibles TOTAL NONINTEREST EXPENSE 223 332 8 563 208 342 8 558 210 341 9 560 196 337 9 542 206 324 9 539 7 (3) 1 8 2 (11) 4 Income before income tax expense Income tax expense NET INCOME 906 360 546 901 371 530 801 330 471 1,179 486 693 663 273 390 1 (3) 3 37 32 40 12 (18) (13) (65) (6) 27 (15) 5 80 7 Revenue by product: Lending (c) Treasury services (c) Investment banking Other Total Commercial Banking revenue IB revenue, gross (d) Revenue by client segment: Middle Market Banking Commercial Term Lending Corporate Client Banking (e) Real Estate Banking Other Total Commercial Banking revenue FINANCIAL RATIOS ROE Overhead ratio (a) (b) (c) (d) (e) $ $ $ $ $ 837 542 110 27 1,516 $ $ $ $ $ $ 749 659 126 77 1,611 309 $ 755 286 290 88 97 1,516 $ 28 37 $ % $ $ $ 693 670 120 44 1,527 347 $ 781 301 302 117 110 1,611 $ 26 35 $ % $ $ $ 649 665 115 57 1,486 $ 658 638 105 15 1,416 344 $ 333 $ 311 (11) (1) 766 256 304 118 83 1,527 $ 767 237 285 125 72 1,486 $ 746 229 263 100 78 1,416 (3) (5) (4) (25) (12) (6) 1 25 10 (12) 24 7 23 37 $ % 35 36 $ % 20 38 % Commercial Banking (“CB”) client revenue from investment banking products and commercial card transactions is included in all other income. Total net revenue included tax-equivalent adjustments from income tax credits related to equity investments in designated community development entities that provide loans to qualified businesses in low-income communities as well as tax-exempt income from municipal bond activity of $65 million, $85 million, $59 million, $49 million and $45 million for quarters ended March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010, and March 31, 2010, respectively. Effective January 1, 2011, product revenue from commercial card and standby letters of credit transactions is included in lending. For the period ending March 31, 2011, the impact of the change was $107 million. In prior-year quarters, it was reported in treasury services. Represents the total revenue related to investment banking products sold to CB clients. Corporate Client Banking was known as Mid-Corporate Banking prior to January 1, 2011. Page 22
  24. 24. JPMORGAN CHASE & CO. COMMERCIAL BANKING FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except headcount and ratio data) QUARTERLY TRENDS 1Q11 SELECTED BALANCE SHEET DATA (period-end) Loans: Loans retained Loans held-for-sale and loans at fair value Total loans Equity SELECTED BALANCE SHEET DATA (average) Total assets Loans: Loans retained Loans held-for-sale and loans at fair value Total loans Liability balances Equity Average loans by client segment: Middle Market Banking Commercial Term Lending Corporate Client Banking (a) Real Estate Banking Other Total Commercial Banking loans 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 Net charge-off rate Allowance for loan losses to period-end loans retained Allowance for loan losses to nonaccrual loans retained Nonaccrual loans to total period-end loans (a) (b) 3Q10 2Q10 1Q11 Change 4Q10 1Q10 1Q10 $ 99,334 835 100,169 8,000 $ 97,900 1,018 98,918 8,000 $ 97,738 399 98,137 8,000 $ 95,090 446 95,536 8,000 $ 95,435 294 95,729 8,000 $ 140,400 $ 138,041 $ 130,237 $ 133,309 $ 133,013 2 6 96,317 297 96,614 133,142 8,000 1 24 1 6 - 3 155 3 17 - 33,919 36,057 12,258 10,438 3,942 96,614 5 (1) 5 (7) 1 13 5 1 (27) (9) 3 4,701 1 5 229 (89) (86) 98,829 756 99,585 156,200 8,000 $ $ Headcount CREDIT DATA AND QUALITY STATISTICS Net charge-offs Nonperforming assets: Nonaccrual loans: Nonaccrual loans retained (b) Nonaccrual loans held-for-sale and loans at fair value Total nonaccrual loans 4Q10 97,823 612 98,435 147,534 8,000 38,207 37,810 12,374 7,607 3,587 99,585 $ $ 4,941 $ 96,657 384 97,041 137,853 8,000 36,561 38,358 11,771 8,169 3,576 98,435 $ $ 4,881 31 $ 95,521 391 95,912 136,770 8,000 35,299 37,509 11,807 8,983 3,443 97,041 $ $ 4,805 286 $ 34,424 35,956 11,875 9,814 3,843 95,912 $ $ 4,808 218 $ 176 $ 1 % (18) 1 - 4 % 184 5 - 1,925 1,964 2,898 3,036 2,947 (2) (35) 30 1,955 36 2,000 48 2,946 41 3,077 49 2,996 (17) (2) (39) (35) 179 2,134 197 2,197 281 3,227 208 3,285 190 3,186 (9) (3) (6) (33) 2,577 206 2,783 2,552 209 2,761 2,661 241 2,902 2,686 267 2,953 3,007 359 3,366 1 (1) 1 (14) (43) (17) 0.13 2.59 134 1.95 % 1.16 2.61 130 2.02 % 0.89 2.72 92 3.00 % 0.74 2.82 88 3.22 % 0.96 3.15 102 3.13 % Corporate Client Banking was known as Mid-Corporate Banking prior to January 1, 2011. Allowance for loan losses of $360 million, $340 million, $535 million, $586 million and $612 million were held against nonaccrual loans retained at March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively. Page 23
  25. 25. JPMORGAN CHASE & CO. TREASURY & SECURITIES SERVICES FINANCIAL HIGHLIGHTS (in millions, except ratio and headcount data) QUARTERLY TRENDS 1Q11 INCOME STATEMENT REVENUE Lending- and deposit-related fees Asset management, administration and commissions All other income Noninterest revenue Net interest income TOTAL NET REVENUE $ 4Q10 303 695 139 1,137 703 1,840 $ 3Q10 314 689 209 1,212 701 1,913 $ 318 644 210 1,172 659 1,831 $ 313 705 209 1,227 654 1,881 $ (4) % 1 (33) (6) (4) (3) % 5 (21) (1) 15 5 (60) NM NM NM 5 (15) (46) (6) 9 (17) 4 21 16 23 10 6 13 882 874 1,756 (7) (1) (4) 1 9 5 219 45 569 923 1,756 2 (16) 1 (8) (4) 26 69 11 (7) 5 7,679 2,881 2,163 996 13,719 23 11 19 32 21 90 39 168 9 86 NONINTEREST EXPENSE Compensation expense Noncompensation expense Amortization of intangibles TOTAL NONINTEREST EXPENSE 715 647 15 1,377 679 763 28 1,470 701 693 16 1,410 697 684 18 1,399 657 650 18 1,325 Income before income tax expense Income tax expense NET INCOME 486 170 316 403 146 257 392 141 251 468 176 292 440 161 279 REVENUE BY BUSINESS Treasury Services Worldwide Securities Services TOTAL NET REVENUE REVENUE BY GEOGRAPHIC REGION (b) Asia/Pacific Latin America/Caribbean Europe/Middle East/Africa North America TOTAL NET REVENUE $ 891 949 1,840 276 76 630 858 1,840 $ $ $ TRADE FINANCE LOANS BY GEOGRAPHIC REGION (period-end) (b) Asia/Pacific $ Latin America/Caribbean Europe/Middle East/Africa North America TOTAL TRADE FINANCE LOANS $ FINANCIAL RATIOS ROE Overhead ratio Pretax margin ratio SELECTED BALANCE SHEET DATA (period-end) Loans (c) Equity SELECTED BALANCE SHEET DATA (average) Total assets Loans (c) Liability balances Equity Headcount (a) (b) (c) $ $ 14,607 4,014 5,794 1,084 25,499 $ $ $ $ 18 % 75 26 $ 953 960 1,913 $ 270 91 624 928 1,913 $ 11,834 3,628 4,874 820 21,156 $ $ $ $ 16 % 77 21 (16) (30) 311 659 176 1,146 610 1,756 4 27 $ (2) (31) 1Q11 Change 4Q10 1Q10 1Q10 Provision for credit losses Credit allocation income/(expense) (a) $ 10 (30) 2Q10 $ 937 894 1,831 $ 256 50 579 946 1,831 $ 10,238 3,357 3,391 820 17,806 $ $ $ $ 15 % 77 21 (39) (30) $ 926 955 1,881 $ 233 71 617 960 1,881 $ 9,802 3,008 2,898 693 16,401 $ $ $ $ 18 % 74 25 17 % 75 25 $ 31,020 7,000 $ 27,168 6,500 $ 26,899 6,500 $ 24,513 6,500 $ 24,066 6,500 14 8 29 8 $ 47,873 29,290 265,720 7,000 $ 46,301 26,941 256,661 6,500 $ 42,445 24,337 242,517 6,500 $ 42,868 22,137 246,690 6,500 $ 38,273 19,578 247,905 6,500 3 9 4 8 25 50 7 8 27,223 (4) 3 28,040 29,073 28,544 27,943 IB manages credit exposures related to the GCB on behalf of IB and TSS. Effective January 1, 2011, IB and TSS will share the economics related to the Firm’s GCB clients. Included within this allocation are net revenues, provision for credit losses, as well as expenses. Prior-year periods reflected a reimbursement to IB for a portion of the total costs of managing the credit portfolio. IB recognizes this credit allocation as a component of all other income. Revenue and trade finance loans are based on TSS management’s view of the domicile of clients. Loan balances include wholesale overdrafts, commercial card and trade finance loans. Effective January 1, 2011, the commercial card loan portfolio (of approximately $1.2 billion) that was previously in TSS was transferred to CS. There is no material impact on the financial data; prior-year periods were not revised. Page 24
  26. 26. JPMORGAN CHASE & CO. TREASURY & SECURITIES SERVICES FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except ratio data and where otherwise noted) TSS firmwide metrics include revenue recorded in the CB, Retail Banking and Asset Management ("AM") lines of business and excludes FX revenue recorded in 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 1Q11 TSS FIRMWIDE DISCLOSURES TS revenue - reported TS revenue reported in CB (a) TS revenue reported in other lines of business TS firmwide revenue (b) Worldwide Securities Services revenue TSS firmwide revenue (b) TS firmwide liability balances (average) (c) TSS firmwide liability balances (average) (c) $ $ $ TSS FIRMWIDE FINANCIAL RATIOS TS firmwide overhead ratio (a)(d) TSS firmwide overhead ratio (a)(d) FIRMWIDE BUSINESS METRICS Assets under custody (in billions) Net charge-offs rate Allowance for loan losses to period-end loans Allowance for loan losses to nonaccrual loans Nonaccrual loans to period-end loans (a) (b) (c) (d) (e) (f) 891 542 63 1,496 949 2,445 $ 339,240 421,920 $ 56 67 $ Number of: U.S.$ ACH transactions originated Total U.S.$ clearing volume (in thousands) International electronic funds transfer volume (in thousands) (e) Wholesale check volume Wholesale cards issued (in thousands) (f) CREDIT DATA AND QUALITY STATISTICS Net charge-offs Nonaccrual loans Allowance for credit losses: Allowance for loan losses Allowance for lending-related commitments Total allowance for credit losses 4Q10 $ % 16,619 3Q10 953 659 65 1,677 960 2,637 $ 320,745 404,195 $ 54 66 $ $ % 16,120 2Q10 937 670 64 1,671 894 2,565 $ 302,921 380,370 $ 55 65 $ $ % 15,863 926 665 62 1,653 955 2,608 $ 303,224 383,460 $ 54 64 $ 1Q11 Change 4Q10 1Q10 1Q10 $ % 14,857 882 638 56 1,576 874 2,450 305,105 381,047 1 % (15) 13 (5) 9 - 6 4 11 11 15,283 3 9 55 65 $ (7) % (18) (3) (11) (1) (7) % 992 30,971 978 30,779 970 30,531 949 28,669 (4) 5 8 60,942 532 23,170 $ 995 32,144 60,882 525 29,785 57,333 531 28,404 58,484 526 28,066 55,754 478 27,352 1 (22) 9 11 (15) 14 (8) (21) 57 76 133 6 (6) 1 21 (37) (12) 11 $ 69 48 117 0.22 NM 0.04 12 $ 65 51 116 % 0.24 NM 0.04 1 14 $ 54 52 106 % 0.02 0.20 386 0.05 14 $ 48 68 116 % 0.20 343 0.06 % 0.24 407 0.06 % Effective January 1, 2011, certain CB revenues were excluded in the TS firmwide metrics; they are instead directly captured within CB’s lending revenue by product. For the quarter ended March 31, 2011, the impact of this change was $107 million. In prior-year periods, these revenues were included in CB’s treasury services revenue by product. TSS firmwide revenue includes foreign exchange (“FX”) revenue recorded in TSS and FX revenue associated with TSS customers who are FX customers of IB. However, some of the FX revenue associated with TSS customers who are FX customers of IB is not included in TS and TSS firmwide revenue. The total FX revenue generated was $160 million, $181 million, $143 million, $175 million, and $137 million for the quarters ended March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively. Firmwide liability balances include liability balances recorded in CB. Overhead ratios have been calculated based on firmwide revenue and TSS and TS expense, respectively, including those allocated to certain other lines of business. FX revenue and expense recorded in IB for TSS-related FX activity are not included in this ratio. International electronic funds transfer includes non-U.S. dollar Automated Clearing House (“ACH”) and clearing volume. Wholesale cards issued and outstanding include U.S. domestic commercial, stored value, prepaid and government electronic benefit card products. Effective January 1, 2011, the commercial card portfolio was transferred from TSS to CS. Page 25
  27. 27. JPMORGAN CHASE & CO. ASSET MANAGEMENT FINANCIAL HIGHLIGHTS (in millions, except ratio and headcount data) QUARTERLY TRENDS 1Q11 INCOME STATEMENT REVENUE Asset management, administration and commissions All other income Noninterest revenue Net interest income TOTAL NET REVENUE $ Provision for credit losses 4Q10 1,707 313 2,020 386 2,406 $ 3Q10 1,846 386 2,232 381 2,613 $ 2Q10 1,498 282 1,780 392 2,172 $ 1Q11 Change 4Q10 1Q10 1Q10 1,522 177 1,699 369 2,068 $ 1,508 266 1,774 357 2,131 (8) % (19) (9) 1 (8) 13 % 18 14 8 13 5 23 23 5 35 (78) (86) NONINTEREST EXPENSE Compensation expense Noncompensation expense Amortization of intangibles TOTAL NONINTEREST EXPENSE 1,039 599 22 1,660 1,078 679 20 1,777 914 557 17 1,488 861 527 17 1,405 910 514 18 1,442 (4) (12) 10 (7) 14 17 22 15 Income before income tax expense Income tax expense NET INCOME 741 275 466 813 306 507 661 241 420 658 267 391 654 262 392 (9) (10) (8) 13 5 19 1,150 544 437 2,131 (4) (19) (4) (8) 15 1 24 13 REVENUE BY CLIENT SEGMENT Private Banking (a) Institutional Retail TOTAL NET REVENUE $ $ $ FINANCIAL RATIOS ROE Overhead ratio Pretax margin ratio SELECTED BALANCE SHEET DATA (period-end) Loans Equity SELECTED BALANCE SHEET DATA (average) Total assets Loans Deposits Equity Headcount (a) 1,317 549 540 2,406 $ $ $ 29 % 69 31 1,376 675 562 2,613 $ $ $ 31 % 68 31 1,181 506 485 2,172 $ $ $ 26 % 69 30 1,153 455 460 2,068 $ $ $ 24 % 68 32 24 % 68 31 $ 46,454 6,500 $ 44,084 6,500 $ 41,408 6,500 $ 38,744 6,500 $ 37,088 6,500 5 - 25 - $ 68,918 44,948 95,250 6,500 $ 69,290 42,296 89,314 6,500 $ 64,911 39,417 87,841 6,500 $ 63,426 37,407 86,453 6,500 $ 62,525 36,602 80,662 6,500 (1) 6 7 - 10 23 18 - 15,321 2 12 17,203 16,918 16,510 16,019 Private Banking is a combination of the previously disclosed client segments: Private Bank, Private Wealth Management and JPMorgan Securities. Page 26
  28. 28. JPMORGAN CHASE & CO. ASSET MANAGEMENT FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except ratio data and where otherwise noted) QUARTERLY TRENDS 1Q11 BUSINESS METRICS Number of: Client advisors (a) Retirement planning services participants (in thousands) JPMorgan Securities brokers (a) % of customer assets in 4 & 5 Star Funds (b) % of AUM in 1st and 2nd quartiles: (c) 1 year 3 years 5 years CREDIT DATA AND QUALITY STATISTICS Net charge-offs Nonaccrual loans Allowance for credit losses: Allowance for loan losses Allowance for lending-related commitments Total allowance for credit losses Net charge-off rate Allowance for loan losses to period-end loans Allowance for loan losses to nonaccrual loans Nonaccrual loans to period-end loans (a) (b) (c) 4Q10 3Q10 2Q10 1Q11 Change 4Q10 1Q10 1Q10 2,288 1,604 431 46 % 2,244 1,665 419 42 % 2,083 1,653 403 43 % 1,998 1,651 391 43 % 57 % 70 % 77 % $ 2,281 1,580 415 49 % 67 % 72 % 80 % 67 % 65 % 74 % 58 % 67 % 78 % 55 % 67 % 77 % 11 254 257 4 261 0.10 % 0.55 101 0.55 $ 8 375 267 4 271 0.08 % 0.61 71 0.85 $ 13 294 257 3 260 0.13 % 0.62 87 0.71 $ 27 309 250 3 253 0.29 % 0.65 81 0.80 $ 28 475 261 13 274 0.31 % 0.70 55 1.28 - % 2 4 (6) 15 % (3) 10 7 (15) (3) (4) 4 4 - 38 (32) (61) (47) (4) (4) (2) (69) (5) Effective January 1, 2011, the methodology used to determine client advisors was revised, and the prior-year periods have been revised. Derived from Morningstar for the U.S., the U.K., Luxembourg, France, Hong Kong and Taiwan; and Nomura for Japan. Quartile ranking sourced from: Lipper for the U.S. and Taiwan; Morningstar for the U.K., Luxembourg, France and Hong Kong; and Nomura for Japan. Page 27
  29. 29. JPMORGAN CHASE & CO. ASSET MANAGEMENT FINANCIAL HIGHLIGHTS, CONTINUED (in billions) March 31, 2011 Change ASSETS UNDER SUPERVISION (a) Assets by asset class Liquidity Fixed income Equities and multi-asset Alternatives TOTAL ASSETS UNDER MANAGEMENT Custody/brokerage/administration/deposits TOTAL ASSETS UNDER SUPERVISION Assets by client segment Private Banking (b) Institutional Retail TOTAL ASSETS UNDER MANAGEMENT Private Banking (b) Institutional Retail TOTAL ASSETS UNDER SUPERVISION Mutual fund assets by asset class Liquidity Fixed income Equities and multi-asset Alternatives TOTAL MUTUAL FUND ASSETS (a) (b) Mar 31 2011 $ $ $ $ $ $ $ $ Dec 31 2010 490 305 421 114 1,330 578 1,908 $ 293 696 341 1,330 $ 773 697 438 1,908 $ 436 99 173 8 716 $ $ $ $ $ Sep 30 2010 497 289 404 108 1,298 542 1,840 $ 284 686 328 1,298 $ 731 687 422 1,840 $ 446 92 169 7 714 $ $ $ $ $ Jun 30 2010 521 277 362 97 1,257 513 1,770 $ 276 677 304 1,257 $ 698 678 394 1,770 $ 466 88 151 7 712 $ $ $ $ $ Mar 31 2010 489 259 322 91 1,161 479 1,640 $ 258 634 269 1,161 $ 653 636 351 1,640 $ 440 79 133 8 660 $ $ $ $ $ 521 246 355 97 1,219 488 1,707 Dec 31 2010 Mar 31 2010 (1) % 6 4 6 2 7 4 (6) % 24 19 18 9 18 12 268 669 282 1,219 3 1 4 2 9 4 21 9 666 670 371 1,707 6 1 4 4 16 4 18 12 (2) 8 2 14 - (7) 30 15 (11) 2 470 76 150 9 705 Excludes assets under management of American Century Companies, Inc. in which the Firm had a 40% ownership in the first quarter of 2011, 41% in the fourth and third quarters of 2010, and 42% in all other prior periods presented. Private Banking is a combination of the previously disclosed client segments: Private Bank, Private Wealth Management and JPMorgan Securities. Page 28
  30. 30. JPMORGAN CHASE & CO. ASSET MANAGEMENT FINANCIAL HIGHLIGHTS, CONTINUED (in billions) 1Q11 ASSETS UNDER SUPERVISION (continued) Assets under management rollforward Beginning balance Net asset flows: Liquidity Fixed income Equities, multi-asset and alternatives Market/performance/other impacts Ending balance Assets under supervision rollforward Beginning balance Net asset flows Market/performance/other impacts Ending balance $ 1,298 $ (9) 16 11 14 1,330 $ $ 1,840 31 37 1,908 4Q10 $ 1,257 $ (25) 10 13 43 1,298 $ $ 1,770 1 69 1,840 3Q10 $ 1,161 $ 27 12 (1) 58 1,257 $ $ 1,640 41 89 1,770 2Q10 $ 1,219 $ (29) 12 1 (42) 1,161 $ $ 1,707 (4) (63) 1,640 1Q10 $ 1,249 $ (62) 16 6 10 1,219 $ $ 1,701 (10) 16 1,707 Page 29
  31. 31. JPMORGAN CHASE & CO. ASSET MANAGEMENT FINANCIAL HIGHLIGHTS, CONTINUED QUARTERLY TRENDS INTERNATIONAL METRICS Total net revenue: (in millions) (a) Asia/Pacific Latin America/Caribbean Europe/Middle East/Africa North America Total net revenue Assets under management: (in billions) Asia/Pacific Latin America/Caribbean Europe/Middle East/Africa North America Total assets under management Assets under supervision: (in billions) Asia/Pacific Latin America/Caribbean Europe/Middle East/Africa North America Total assets under supervision (a) 1Q11 $ $ $ $ $ $ 4Q10 246 165 439 1,556 2,406 $ 115 35 300 880 1,330 $ 155 88 353 1,312 1,908 $ $ $ $ 3Q10 263 168 481 1,701 2,613 $ 111 35 282 870 1,298 $ 147 84 331 1,278 1,840 $ $ $ $ 2Q10 226 125 395 1,426 2,172 $ 107 27 258 865 1,257 $ 139 74 307 1,250 1,770 $ $ $ $ 1Q10 214 124 381 1,349 2,068 $ 95 24 239 803 1,161 $ 127 68 282 1,163 1,640 $ $ $ $ 222 124 385 1,400 2,131 1Q11 Change 4Q10 1Q10 (6) % (2) (9) (9) (8) 11 33 14 11 13 102 26 265 826 1,219 4 6 1 2 13 35 13 7 9 131 66 310 1,200 1,707 5 5 7 3 4 % 18 33 14 9 12 Regional revenue is based on the domicile of clients. Page 30
  32. 32. JPMORGAN CHASE & CO. CORPORATE/PRIVATE EQUITY FINANCIAL HIGHLIGHTS (in millions, except headcount data) QUARTERLY TRENDS 1Q11 INCOME STATEMENT REVENUE Principal transactions Securities gains All other income Noninterest revenue Net interest income TOTAL NET REVENUE (a) $ Provision for credit losses MEMO: TOTAL NET REVENUE Private equity Corporate TOTAL NET REVENUE NET INCOME/(LOSS) Private equity Corporate TOTAL NET INCOME Headcount (a) (b) (c) $ (10) NONINTEREST EXPENSE Compensation expense Noncompensation expense (b) Subtotal Net expense allocated to other businesses TOTAL NONINTEREST EXPENSE Income/(loss) before income tax expense/(benefit) Income tax expense/(benefit) (c) NET INCOME 1,298 102 78 1,478 34 1,512 4Q10 $ $ $ $ $ $ 2Q10 1,143 99 (29) 1,213 371 1,584 $ $ (69) 990 182 1,103 747 1,850 $ 383 339 722 $ $ $ (3) 574 1,927 2,501 (1,227) 1,274 770 1,468 2,238 (1,192) 1,046 (70) (99) 29 313 (35) 348 $ (2) 355 1,276 1,631 178 (149) 29 20,030 $ $ $ $ $ $ 721 863 1,584 $ 344 4 348 $ 19,756 $ $ 1Q11 Change 4Q10 1Q10 1Q10 538 2,352 2,890 (1,191) 1,699 699 813 1,512 20,927 587 1,199 (24) 1,762 (131) 1,631 2 657 1,143 1,800 (1,238) 562 960 238 722 3Q10 806 153 653 121 % (91) NM (16) NM (7) 137 % (83) (37) 15 (97) (36) NM NM 22 (51) (38) (4) (67) 38 (62) (49) (5) (76) NM NM NM NM NM 217 97 (36) (7) NM (64) (36) 55 173 228 115 NM NM NM 96 217 19,307 4 8 17 475 3,041 3,516 (1,180) 2,336 $ 48 1,802 1,850 $ 11 642 653 $ 19,482 547 610 124 1,281 1,076 2,357 $ $ 4 (224) 228 115 2,242 2,357 Total net revenue included tax-equivalent adjustments, predominantly due to tax-exempt income from municipal bond investments of $64 million, $63 million, $58 million, $57 million and $48 million for the quarters ended March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively. Includes litigation expense of $0.4 billion, $1.5 billion, $1.3 billion, $0.7 billion and $2.3 billion for the quarters ending March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively. Income tax expense/(benefit) in the third quarter of 2010 and the first quarter of 2010 included tax benefits recognized upon the resolution of tax audits. Page 31
  33. 33. JPMORGAN CHASE & CO. CORPORATE/PRIVATE EQUITY FINANCIAL HIGHLIGHTS, CONTINUED (in millions) QUARTERLY TRENDS 1Q11 4Q10 3Q10 2Q10 1Q10 1Q11 Change 4Q10 1Q10 SUPPLEMENTAL INFORMATION TREASURY and CHIEF INVESTMENT OFFICE ("CIO") Securities gains (a) Investment securities portfolio (average) Investment securities portfolio (ending) Mortgage loans (average) Mortgage loans (ending) PRIVATE EQUITY Private equity gains/(losses) Direct investments Realized gains Unrealized gains/(losses) (b) Total direct investments Third-party fund investments Total private equity gains/(losses) (c) 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 (d) Carrying value Cost Total private equity portfolio Carrying value Cost (a) (b) (c) (d) $ 102 313,319 328,013 11,418 12,171 $ $ 171 370 541 186 727 $ $ $ 731 649 785 $ $ 1,199 322,218 310,801 10,117 10,739 1,039 (781) 258 129 387 875 732 935 $ 99 321,428 334,140 9,174 9,550 $ $ 179 561 740 10 750 $ $ $ 1,152 985 1,249 $ $ 989 320,578 305,288 8,539 8,900 78 (7) 71 4 75 873 901 974 $ $ $ $ 610 330,584 337,442 8,162 8,368 (91) % (3) 6 13 13 (83) % (5) (3) 40 45 113 (75) 38 98 136 (84) NM 110 44 88 51 NM NM 90 435 890 793 982 (16) (11) (16) (18) (18) (20) 7,212 7,731 6,388 6,646 5,464 6,507 4,782 5,795 23 12 51 33 2,179 2,461 $ $ 5,882 6,887 1,980 2,404 1,814 2,356 1,782 2,315 1,603 2,134 10 2 36 15 7,275 8,722 16 8 39 24 10,122 10,841 $ $ 8,737 10,023 $ $ 9,354 9,987 $ $ 8,119 9,723 $ $ Reflects repositioning of the Corporate investment securities portfolio. Unrealized gains/(losses) contain reversals of unrealized gains and losses that were recognized in prior periods and have now been realized. Included in principal transactions revenue in the Consolidated Statements of Income. Unfunded commitments to third-party private equity funds were $0.9 billion, $1.0 billion, $1.1 billion, $1.2 billion and $1.4 billion at March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively. Page 32
  34. 34. JPMORGAN CHASE & CO. CREDIT-RELATED INFORMATION (in millions) Mar 31 2011 CREDIT EXPOSURE Wholesale Loans retained Loans held-for-sale and loans at fair value Total wholesale loans (a)(b) $ Consumer, excluding credit card Loans, excluding PCI loans and held-for sale loans Home equity Prime mortgage, including option ARMs Subprime mortgage Auto Business banking Student and other Total loans, excluding PCI loans and loans held-for-sale Loans - PCI: (c) Home equity Prime mortgage Subprime mortgage Option ARMs Total loans - PCI Total loans - retained Loans held-for-sale (d) Total consumer, excluding credit card loans 229,648 6,359 236,007 Dec 31 2010 $ 222,510 5,123 227,633 Sep 30 2010 $ 217,582 3,015 220,597 Jun 30 2010 $ 212,987 3,839 216,826 Mar 31 2010 $ March 31, 2011 Change Dec 31 Mar 31 2010 2010 210,211 4,079 214,290 3 24 4 % 9 56 10 85,253 74,682 10,841 47,411 16,957 15,089 250,233 88,385 74,539 11,287 48,367 16,812 15,311 254,701 91,728 74,205 12,009 48,186 16,568 15,583 258,279 94,761 75,023 12,597 47,548 16,604 15,795 262,328 97,642 76,854 13,219 47,381 16,799 16,152 268,047 (4) (4) (2) 1 (1) (2) (13) (3) (18) 1 (7) (7) 23,973 16,725 5,276 24,791 70,765 320,998 188 321,186 24,459 17,322 5,398 25,584 72,763 327,464 154 327,618 24,982 17,904 5,496 26,370 74,752 333,031 467 333,498 25,471 18,512 5,662 27,256 76,901 339,229 434 339,663 26,012 19,203 5,848 28,260 79,323 347,370 2,879 350,249 (2) (3) (2) (3) (3) (2) 22 (2) (8) (13) (10) (12) (11) (8) (93) (8) Credit card Loans retained Loans held-for-sale Total credit card (b) Total consumer loans (e) 124,791 4,012 128,803 449,989 135,524 2,152 137,676 465,294 136,436 136,436 469,934 142,994 142,994 482,657 149,260 149,260 499,509 (8) 86 (6) (3) (16) NM (14) (10) Total loans 685,996 692,927 690,531 699,483 713,799 (1) (4) 78,744 38,053 177 116,974 355,561 $ 1,158,531 80,481 32,541 391 113,413 346,079 $ 1,152,419 97,293 25,274 751 123,318 338,612 $ 1,152,461 $ 80,215 22,966 1,836 105,017 324,552 1,129,052 79,416 16,314 2,579 98,309 326,921 1,139,029 (2) 17 (55) 3 3 1 (1) 133 (93) 19 9 2 $ $ $ $ 639,520 499,509 1,139,029 3 (3) 1 % 11 (10) 2 Derivative receivables Receivables from customers (f) Interests in purchased receivables Total credit-related assets Wholesale lending-related commitments Total Memo: Total by category Total wholesale exposure (g) Total consumer loans (h) Total (a) (b) (c) (d) (e) (f) (g) (h) 708,542 449,989 $ 1,158,531 687,125 465,294 $ 1,152,419 682,527 469,934 $ 1,152,461 $ 646,395 482,657 1,129,052 $ $ $ Includes IB, CB, TSS, AM and Corporate/Private Equity. Effective January 1, 2011, the commercial card loan portfolio that was previously in TSS was transferred to CS. There is no material impact on the financial data; prior-year periods were not revised. PCI 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. These loans were initially recorded at fair value and accrete interest income over the estimated lives of the underlying loans as long as cash flows are reasonably estimable, even if the underlying loans are contractually past due. Included prime mortgages of $188 million, $154 million, $428 million, $185 million and $558 million at March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively, and student loans of zero, zero, $39 million, $249 million and $2.3 billion at March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively. Includes RFS, CS and Corporate/Private Equity. Represents primarily 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 and excludes consumer lending-related commitments. Page 33
  35. 35. JPMORGAN CHASE & CO. CREDIT-RELATED INFORMATION, CONTINUED (in millions, except ratio data) Mar 31 2011 NONPERFORMING ASSETS AND RATIOS Wholesale Loans retained Loans held-for-sale and loans at fair value Total wholesale loans $ Consumer, excluding credit card Home equity Prime mortgage, including option ARMs Subprime mortgage Auto Business banking Student and other Total consumer, excluding credit card Dec 31 2010 4,578 289 4,867 $ Sep 30 2010 5,510 496 6,006 $ Jun 30 2010 5,231 409 5,640 $ March 31, 2011 Change Dec 31 Mar 31 2010 2010 Mar 31 2010 5,285 375 5,660 $ 5,895 331 6,226 1,263 4,166 2,106 120 810 107 8,572 1,263 4,320 2,210 141 832 67 8,833 1,251 4,857 2,649 145 895 64 9,861 1,211 5,062 3,115 155 905 68 10,516 2 2 3 3 Total consumer nonaccrual loans (a)(b) Total nonaccrual loans 8,574 13,441 8,835 14,841 9,863 15,503 10,519 16,179 Derivative receivables Assets acquired in loan satisfactions Total nonperforming assets (a) 21 1,524 14,986 34 1,682 16,557 255 1,898 17,656 315 1,662 18,156 Total credit card $ Total nonaccrual loans to total loans Total wholesale nonaccrual loans to total wholesale loans Total consumer, excluding credit card nonaccrual loans to total consumer, excluding credit card loans NONPERFORMING ASSETS BY LOB Investment Bank Retail Financial Services (b) Card Services Commercial Banking Treasury & Securities Services Asset Management Corporate/Private Equity (c) TOTAL (a) (b) (c) 1.96 $ % 2.14 $ % 2.25 $ % 2.31 10,824 17,050 $ % (33) (3) (9) (21) (21) 363 1,606 19,019 (38) (9) (9) (94) (5) (21) (27) (4) (3) (8) (31) 10 (9) (17) (19) (33) (33) (21) (47) 45 (21) 2.39 2.64 2.56 2.61 2.70 2.96 3.10 % 2.91 2.67 $ (11) (15) (37) (31) (6) 4 (21) - 2.06 $ (22) % (13) (22) (4) (5) (15) (3) 60 (3) 1,427 4,927 3,331 174 859 103 10,821 2 (17) % (42) (19) 3.09 2,741 9,755 2 2,134 11 263 80 14,986 $ $ 3,770 10,121 2 2,197 12 382 73 16,557 $ $ 2,789 11,255 2 3,227 14 299 70 17,656 $ $ 2,726 11,731 3 3,285 14 337 60 18,156 $ $ 3,289 11,974 3 3,186 14 498 55 19,019 At March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $9.8 billion, $10.5 billion, $10.2 billion, $10.1 billion and $10.5 billion, respectively, that are 90 days past due and accruing at the guaranteed reimbursement rate; (2) real estate owned insured by U.S. government agencies of $2.3 billion, $1.9 billion, $1.7 billion, $1.4 billion and $707 million, respectively; and (3) 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 (“FFELP”), of $615 million, $625 million, $572 million, $447 million and $581 million, respectively. These amounts are excluded as reimbursement of insured amounts is proceeding normally. In addition, the Firm's policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance issued by the Federal Financial Institutions Examination Council. Credit card loans are charged off by the end of the month in which the account becomes 180 days past due or within 60 days from receiving notification about a specified event (e.g., bankruptcy of the borrower), whichever is earlier. Excludes PCI loans acquired as part of the Washington Mutual transaction, which are accounted for on a pool basis. Since each pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, the past-due status of the pools, or that of the individual loans within the pools, is not meaningful. Because the Firm is recognizing interest income on each pool of loans, they are all considered to be performing. Also excludes loans held-for-sale and loans at fair value. Predominantly relates to retained prime mortgage loans. Page 34
  36. 36. JPMORGAN CHASE & CO. CREDIT-RELATED INFORMATION, CONTINUED (in millions, except ratio data) QUARTERLY TRENDS 1Q11 GROSS CHARGE-OFFS Wholesale loans Consumer loans, excluding credit card Credit card loans Total loans RECOVERIES Wholesale loans Consumer loans, excluding credit card Credit card loans Total loans NET CHARGE-OFFS Wholesale loans Consumer loans, excluding credit card Credit card loans Total loans $ $ $ $ $ $ NET CHARGE-OFF RATES Wholesale retained loans Consumer retained loans, excluding credit card Credit card retained loans Total retained loans Consumer retained loans, excluding credit card and PCI loans Total retained loans - excluding PCI loans Memo: Average Retained Loans Wholesale loans Consumer retained loans, excluding credit card Credit card retained loans Total loans - retained (a) 4Q10 253 1,460 2,631 4,344 $ 88 131 405 624 $ 165 1,329 2,226 3,720 $ 0.30 1.66 6.97 2.22 $ $ $ % $ 226,544 323,961 129,535 680,040 414 2,277 2,980 5,671 $ 143 115 309 567 $ 271 2,162 2,671 5,104 $ $ $ (a) (a) $ $ 31 131 352 514 $ 266 1,546 3,133 4,945 $ $ % (a) (a) 0.49 1.83 8.87 2.84 3.34 3.31 $ 2Q10 297 1,677 3,485 5,459 0.49 2.60 7.85 2.95 2.14 2.48 $ 3Q10 (a) (a) $ $ $ 2.36 3.19 219,750 330,524 134,999 685,273 $ $ 213,979 336,078 140,059 690,116 % 264 1,874 4,063 6,201 $ 33 112 342 487 $ 231 1,762 3,721 5,714 $ 0.44 2.06 10.20 3.28 $ $ $ % $ 209,016 343,847 146,302 699,165 1,014 2,555 4,882 8,451 (39) % (36) (12) (23) (75) % (43) (46) (49) 55 116 370 541 (38) 14 31 10 60 13 9 15 959 2,439 4,512 7,910 (39) (39) (17) (27) (83) (46) (51) (53) 1.84 2.82 11.75 4.46 2.66 3.69 $ 1Q11 Change 4Q10 1Q10 1Q10 % 3.65 5.03 $ $ 211,599 351,159 155,790 718,548 Net charge-offs and net charge-off rates for the fourth quarter of 2010 include the effect of $632 million of charge-offs related to an adjustment of the estimated net realizable value of the collateral underlying delinquent residential home loans. Excluding this adjustment, net charge-offs for the fourth quarter of 2010 were $1.5 billion for total consumer, excluding credit card loans, and $4.5 billion for total loans. Net charge-off rates excluding this adjustment were 1.84% for total consumer, excluding credit card, 2.59% for total retained loans, 2.36% for total consumer, excluding credit card and PCI loans, and 2.90% for total retained loans, excluding PCI loans. Page 35

×