2 q11 erf_supplement_final

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2 q11 erf_supplement_final

  1. 1. EARNINGS RELEASE FINANCIAL SUPPLEMENT SECOND 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 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 Cash dividends declared Book value 2Q11 $ 1Q11 26,779 16,842 9,937 1,810 5,431 $ 4Q10 25,221 15,995 9,226 1,169 5,555 $ YEAR-TO-DATE 3Q10 26,098 16,043 10,055 3,043 4,831 $ 2Q11 Change 1Q11 2Q10 2Q10 23,824 14,398 9,426 3,223 4,418 $ 2011 25,101 14,631 10,470 3,363 4,795 6 % 5 8 55 (2) 7 % 15 (5) (46) 13 $ 2011 Change 2010 2010 52,000 32,837 19,163 2,979 10,986 $ 52,772 30,755 22,017 10,373 8,121 (1) % 7 (13) (71) 35 53,201 32,837 20,364 2,979 10,986 53,785 30,755 23,030 10,373 8,121 (1) 7 (12) (71) 35 27,410 16,842 10,568 1,810 5,431 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 6 5 8 55 (2) 7 15 (4) (46) 13 1.28 1.27 1.29 1.28 1.13 1.12 1.02 1.01 1.10 1.09 (1) (1) 16 17 2.57 2.55 1.84 1.83 40 39 0.05 43.04 0.05 42.29 0.05 40.99 3 400 9 0.50 44.77 0.10 40.99 400 9 0.25 44.77 0.25 (g) 43.34 Closing share price (b) Market capitalization 40.94 160,083 46.10 183,783 42.42 165,875 38.06 149,418 36.61 145,554 (11) (13) 12 10 40.94 160,083 36.61 145,554 12 10 COMMON SHARES OUTSTANDING Average: Basic Diluted Common shares at period-end 3,958.4 3,983.2 3,910.2 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 (1) (1) (2) (1) (1) (2) 3,970.0 3,998.6 3,910.2 3,977.0 4,000.2 3,975.8 (2) FINANCIAL RATIOS (c) Return on common equity ("ROE") Return on tangible common equity ("ROTCE") (d) Return on assets ("ROA") 12 17 0.99 % 13 18 1.07 CAPITAL RATIOS Tier 1 capital ratio Total capital ratio Tier 1 common capital ratio (e) 12.4 (f) 15.7 (f) 10.1 (f) 12.3 15.6 10.0 (a) (b) (c) (d) (e) (f) (g) % 11 16 0.92 12.1 15.5 9.8 % 10 15 0.86 11.9 15.4 9.5 % 12 17 0.94 % 13 18 1.03 % 10 15 0.80 % 12.1 15.8 9.6 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. Ratios are based upon annualized amounts. ROTCE, a non-GAAP financial ratio, measures the Firm’s earnings as a percentage of tangible common equity. In management’s view, this measure is meaningful to the Firm, as well as analysts and investors in assessing the Firm’s use of equity and in facilitating comparisons with competitors. For further discussion, 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. On March 18, 2011, the Board of Directors increased the Firm’s quarterly common stock dividend from $0.05 to $0.25 per share. Page 2
  4. 4. JPMORGAN CHASE & CO. CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except ratio and headcount data) QUARTERLY TRENDS YEAR-TO-DATE 2Q11 SELECTED BALANCE SHEET DATA (Period-end) Total assets Wholesale loans Consumer, excluding credit card loans Credit card loans Deposits Common stockholders' equity Total stockholders' equity 1Q11 4Q10 3Q10 2Q10 $ 2,246,764 248,823 315,390 125,523 1,048,685 175,079 182,879 $ 2,198,161 236,007 321,186 128,803 995,829 172,798 180,598 $ 2,117,605 227,633 327,618 137,676 930,369 168,306 176,106 $ 2,141,595 220,597 333,498 136,436 903,138 166,030 173,830 $ 2,014,019 216,826 339,663 142,994 887,805 162,968 171,120 Deposits-to-loans ratio 152 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 2Q11 Change 1Q11 2Q10 % 145 250,095 $ $ 2,057 582 911 607 333 439 502 5,431 % 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 4,418 232,939 $ $ 1,381 1,042 343 693 292 391 653 4,795 2 % 5 (2) (3) 5 1 1 2011 12 % 15 (7) (12) 18 7 7 $ 2,246,764 248,823 315,390 125,523 1,048,685 175,079 182,879 $ 2,014,019 216,826 339,663 142,994 887,805 162,968 171,120 % 152 3 (13) NM (32) 11 5 (6) (30) (2) 7 49 (44) 166 (12) 14 12 (23) 13 2011 Change 2010 2010 % 127 250,095 $ $ 4,427 374 2,254 1,153 649 905 1,224 10,986 232,939 $ $ 3,852 911 40 1,083 571 783 881 8,121 12 % 15 (7) (12) 18 7 7 % 7 15 (59) NM 6 14 16 39 35 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 NET INCOME PER COMMON SHARE DATA Basic earnings Diluted earnings FINANCIAL RATIOS Return on equity Return on tangible common equity (a) Return on assets Effective income tax rate Overhead ratio (a) $ $ $ 2Q11 1,933 3,140 1,649 3,703 837 1,103 1,696 882 14,943 15,632 3,796 11,836 26,779 1,810 $ 7,569 935 1,217 1,866 744 4,299 212 16,842 8,127 2,696 5,431 $ 1.28 1.27 12 17 0.99 33 63 $ % 1Q11 1,793 4,745 1,546 3,606 102 (487) 1,437 574 13,316 15,447 3,542 11,905 25,221 1,169 $ 8,263 978 1,200 1,735 659 2,943 217 15,995 8,057 2,502 5,555 $ 1.29 1.28 13 18 1.07 31 63 $ % 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 $ 6,571 1,045 1,198 1,789 584 4,616 240 16,043 7,012 2,181 4,831 $ 1.13 1.12 11 16 0.92 31 61 $ % 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 $ 6,661 884 1,184 1,718 651 3,082 218 14,398 6,203 1,785 4,418 $ 1.02 1.01 10 15 0.86 29 60 YEAR-TO-DATE $ % 2Q11 Change 1Q11 2Q10 8 % 36 % (34) 50 7 4 3 11 NM (16) NM 24 18 13 54 51 12 20 1 (1) 7 25 (1) (7) 6 7 55 (46) 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 7,616 883 1,165 1,685 628 2,419 235 14,631 7,107 2,312 4,795 (8) (4) 1 8 13 46 (2) 5 1 8 (2) (1) 6 4 11 18 78 (10) 15 14 17 13 1.10 1.09 (1) (1) 16 17 12 17 0.94 33 58 % $ $ $ 2011 3,726 7,885 3,195 7,309 939 616 3,133 1,456 28,259 31,079 7,338 23,741 52,000 2,979 $ 15,832 1,913 2,417 3,601 1,403 7,242 429 32,837 16,184 5,198 10,986 $ 2.57 2.55 13 18 1.03 32 63 $ % 2011 Change 2010 29 % 19 (1) 11 (42) (60) 10 46 7 (5) 19 (10) (1) (71) 2010 2,882 6,638 3,232 6,614 1,610 1,546 2,856 997 26,375 32,564 6,167 26,397 52,772 10,373 14,892 1,752 2,302 3,260 1,211 6,860 478 30,755 11,644 3,523 8,121 6 9 5 10 16 6 (10) 7 39 48 35 1.84 1.83 10 15 0.80 30 58 40 39 % ROTCE, a non-GAAP financial ratio, measures the Firm’s earnings as a percentage of tangible common equity. In management’s view, this measure is meaningful to the Firm, as well as analysts and investors in assessing the Firm’s use of equity and in facilitating comparisons with competitors. For further discussion, see page 43. Page 4
  6. 6. JPMORGAN CHASE & CO. CONSOLIDATED BALANCE SHEETS (in millions) Jun 30 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) $ 30,466 169,880 Mar 31 2011 $ 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 June 30, 2011 Change Mar 31 Jun 30 2011 2010 30 % 110 (7) % 331 213,362 121,493 217,356 119,000 222,554 123,587 235,390 127,365 199,024 122,289 (2) 2 7 (1) $ 381,339 77,383 324,741 689,736 28,520 661,216 80,292 13,679 48,882 12,243 3,679 108,109 2,246,764 422,404 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 (10) (2) (3) 1 (4) 1 1 2 (6) (5) 1 2 20 (4) 4 (1) (20) 31 21 1 3 (12) (2) 12 $ 1,048,685 $ $ $ 903,138 $ 887,805 5 18 995,829 930,369 254,124 51,160 30,208 276,644 35,363 34,325 314,161 38,611 35,736 237,455 41,082 32,607 (11) 11 (18) 7 25 (7) 84,865 63,668 184,490 67,457 279,228 2,063,885 $ 285,444 46,022 36,704 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 6 4 7 (5) 4 2 14 6 15 (23) 7 12 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 5 130 (67) 1 2 (4) (2) 26 (32) 22 (46) 7 12 7,800 4,105 95,061 82,612 1,638 (53) (8,284) 182,879 2,246,764 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 (“FHLBs”) was reclassified from other borrowed funds 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, short-term and other 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, short-term and other 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) 2Q11 $ 1Q11 75,801 $ 4Q10 37,155 $ 3Q10 29,213 $ 2Q10 38,747 202,036 124,806 285,104 342,248 686,111 48,716 1,764,822 137,611 82,860 207,250 $ 2,192,543 202,481 114,589 275,512 318,936 688,133 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 36,838 193,814 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 34,507 196,840 78,114 273,066 1,539,366 225,966 7,166 71,727 70,307 1,914,532 7,800 166,812 174,612 $ 2,192,543 $ 2,104,452 $ 2,089,144 0.76 % 1.11 % 1.02 1.20 0.10 4.23 3.10 5.36 1.30 3.58 1.09 0.17 4.31 2.89 5.62 1.20 3.74 1.05 0.16 4.29 2.44 5.71 1.54 3.70 0.61 0.53 0.50 0.29 0.19 1.26 1.17 2.31 0.94 0.17 0.21 1.43 1.19 2.39 0.93 0.12 0.21 1.57 1.13 2.25 0.90 2.64% 2.72% 2.81% 2.89% 2.80% 2.88% 189,573 113,650 245,532 327,425 705,189 34,429 1,674,535 95,080 79,409 194,623 2,043,647 $ 659,027 700,921 281,843 41,682 212,878 69,399 273,934 1,612,502 247,137 3,289 66,009 81,729 2,010,666 7,800 174,077 181,877 58,737 $ 192,099 121,302 251,790 327,798 693,791 36,912 1,662,439 96,200 92,857 189,617 2,041,113 732,766 YEAR-TO-DATE 668,953 % 2,041,113 0.85 104 % 2011 29 $ % 0.92 0.22 4.37 2.67 5.71 1.57 3.75 0.51 % $ 7 10 16 5 (3) 41 5 45 4 6 7 $ $ 5 10 1 13 10 (5) 2 4 8 (58) (7) 23 4 3 3 3 11 12 (23) 1 5 18 (37) 6 19 7 (4) 9 9 2,043,647 4 7 0.63 % $ 61,468 202,256 119,726 280,334 330,657 687,117 49,299 1,725,973 139,769 84,141 198,858 2,148,741 $ 179,858 114,140 246,804 332,405 715,108 31,175 1,680,958 89,408 79,048 191,763 2,041,177 716,932 $ 673,169 280,056 39,273 203,398 71,156 271,559 1,582,374 238,347 5,568 68,634 74,259 1,969,182 7,800 171,759 179,559 $ 0.87 0.53 $ 2.94% 3.01% 3.00% 3.06% 2.72% 2.80% 7 2,041,177 5 % 0.61 0.58 0.23 0.20 1.34 1.18 2.35 0.94 12 5 14 (1) (4) 58 3 56 6 4 5 3 5 13 (24) (2) 3 16 2 13 4 5 (4) 9 8 1.14 0.13 4.27 3.00 5.49 1.25 3.66 (0.07) (d) 0.19 1.11 1.36 2.00 0.79 (8) % 272,779 37,509 179,586 94,072 275,883 1,532,998 204,871 5,470 60,809 71,287 1,875,435 8,152 157,590 165,742 2,148,741 0.84 0.11 4.25 3.14 5.68 1.60 3.79 (0.28) (d) 0.20 1.27 1.36 2.30 0.81 2011 Change 2010 2010 56,584 9 3 7 (2) 5 (3) (3) 9 4 273,614 37,557 189,826 90,085 270,085 1,530,120 209,615 5,216 62,547 68,928 1,876,426 8,152 159,069 167,221 281,171 34,523 188,010 83,928 267,556 1,514,215 213,700 6,560 69,350 65,335 1,869,160 7,991 163,962 171,953 $ 2Q11 Change 1Q11 2Q10 % 0.90 0.11 4.41 3.34 5.80 1.49 3.93 0.52 (0.06) (d) 0.19 1.24 1.36 2.01 0.81 3.12% 3.19% Includes margin loans. Includes brokerage customer payables. Effective January 1, 2011, the long-term portion of the advances from FHLBs was reclassified from other borrowed funds, which is included in short-term and other liabilities, to long-term debt. Prior periods have been revised to conform with the current presentation. Includes 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. 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 2Q11 1Q11 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 2Q11 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 $ $ $ $ $ $ $ $ $ $ $ $ 882 510 1,392 1Q11 $ $ 14,943 510 15,453 $ 11,836 121 11,957 $ 26,779 631 27,410 $ 9,937 631 10,568 $ 2,696 631 3,327 $ $ $ $ $ $ 574 451 1,025 4Q10 $ $ 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 $ $ $ $ $ $ 579 503 1,082 YEAR-TO-DATE 3Q10 $ $ 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 $ $ $ $ $ $ $ 2Q11 Change 1Q11 2Q10 % 2011 585 416 1,001 54 13 36 51 23 39 % $ 12,414 416 12,830 12 13 12 20 23 20 12,687 96 12,783 (1) 2 (1) (7) 26 (6) $ 25,101 512 25,613 6 11 6 7 23 7 $ 10,470 512 10,982 8 11 8 (5) 23 (4) $ 2,312 512 2,824 8 11 8 17 23 18 $ $ $ $ $ $ $ $ 2010 1,456 961 2,417 $ 28,259 961 29,220 $ $ $ 23,741 240 23,981 $ 52,000 1,201 53,201 $ 19,163 1,201 20,364 $ 5,198 1,201 6,399 $ $ $ $ $ 2011 Change 2010 997 827 1,824 46 16 33 26,375 827 27,202 7 16 7 26,397 186 26,583 (10) 29 (10) 52,772 1,013 53,785 (1) 19 (1) 22,017 1,013 23,030 (13) 19 (12) 3,523 1,013 4,536 48 19 41 Page 7 %
  9. 9. JPMORGAN CHASE & CO. LINE OF BUSINESS FINANCIAL HIGHLIGHTS - MANAGED BASIS (in millions, except ratio data) QUARTERLY TRENDS 2Q11 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) $ $ $ $ $ $ $ $ 1Q11 7,314 7,976 3,927 1,627 1,932 2,537 2,097 27,410 $ $ 2,982 2,339 2,305 1,064 479 743 656 10,568 $ $ 2,057 582 911 607 333 439 502 5,431 $ 40,000 28,000 13,000 8,000 7,000 6,500 71,577 174,077 $ 21 8 28 30 19 27 12 $ $ % 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 $ $ $ $ YEAR-TO-DATE 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 $ $ % 2Q11 Change 1Q11 2Q10 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 $ $ $ % 2011 6,332 7,809 4,217 1,486 1,881 2,068 1,820 25,613 (11) % 27 (1) 7 5 5 36 6 1,810 3,528 2,781 944 482 663 774 10,982 (7) 131 (5) 12 3 (33) 8 65 (34) (17) 13 (1) 12 (15) (4) 1,381 1,042 343 693 292 391 653 4,795 (13) NM (32) 11 5 (6) (30) (2) 49 (44) 166 (12) 14 12 (23) 13 40,000 28,000 15,000 8,000 6,500 6,500 55,069 159,069 14 15 9 35 18 24 12 7 3 % 16 % 2 (7) 9 3 23 15 7 (13) 8 30 9 $ $ $ $ $ $ $ $ 2011 Change 2010 2010 15,547 14,251 7,909 3,143 3,772 4,943 3,636 53,201 $ $ 6,199 3,352 4,732 2,017 942 1,489 1,633 20,364 $ $ 4,427 374 2,254 1,153 649 905 1,224 10,986 $ $ 40,000 28,000 13,000 8,000 7,000 6,500 69,259 171,759 22 3 35 29 19 28 13 $ $ % 14,651 15,585 8,664 2,902 3,637 4,199 4,147 53,785 6 % (9) (9) 8 4 18 (12) (1) 5,291 7,062 5,826 1,821 913 1,352 765 23,030 17 (53) (19) 11 3 10 113 (12) 3,852 911 40 1,083 571 783 881 8,121 15 (59) NM 6 14 16 39 35 40,000 28,000 15,000 8,000 6,500 6,500 53,590 157,590 (13) 8 29 9 19 7 1 27 18 24 10 % Corporate/Private Equity includes an adjustment to offset IB's inclusion of a credit allocation income/(expense) to 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 regulatory capital requirements (including Basel III Tier 1 common capital requirements), economic risk measures, 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. ROE 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, largely reflecting 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, reflecting growth in the underlying business. The Firm continues to assess the level of capital required for each line of business, as well as the assumptions and methodologies used to allocate capital to the business segments, and further refinements may be implemented in future periods. Page 8
  10. 10. JPMORGAN CHASE & CO. INVESTMENT BANK FINANCIAL HIGHLIGHTS (in millions, except ratio data) QUARTERLY TRENDS 2Q11 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 1Q11 1,922 2,309 218 548 236 5,233 2,081 7,314 $ (183) 4Q10 1,779 3,398 214 619 166 6,176 2,057 8,233 $ (429) YEAR-TO-DATE 3Q10 1,833 1,289 209 652 185 4,168 2,045 6,213 $ (271) 2Q11 Change 1Q11 2Q10 2Q10 1,502 1,129 205 565 61 3,462 1,891 5,353 $ (142) 8 % (32) 2 (11) 42 (15) 1 (11) 1,405 2,105 203 633 86 4,432 1,900 6,332 (325) 2011 37 % 10 7 (13) 174 18 10 16 57 $ 44 2011 Change 2010 2010 3,701 5,707 432 1,167 402 11,409 4,138 15,547 $ (612) 2,851 6,036 405 1,196 135 10,623 4,028 14,651 30 % (5) 7 (2) 198 7 3 6 (787) 22 NONINTEREST EXPENSE Compensation expense Noncompensation expense TOTAL NONINTEREST EXPENSE 2,564 1,768 4,332 3,294 1,722 5,016 1,845 2,356 4,201 2,031 1,673 3,704 2,923 1,599 4,522 (22) 3 (14) (12) 11 (4) 5,858 3,490 9,348 5,851 3,509 9,360 (1) - Income before income tax expense Income tax expense NET INCOME 3,165 1,108 2,057 3,646 1,276 2,370 2,283 782 1,501 1,791 505 1,286 2,135 754 1,381 (13) (13) (13) 48 47 49 6,811 2,384 4,427 6,078 2,226 3,852 12 7 15 $ 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 (d) Equity markets (e) Credit portfolio (a)(f) Total net revenue (a) (b) (c) (d) (e) (f) 21 0.98 59 35 $ $ 601 455 866 1,922 4,280 1,223 (111) 7,314 $ % 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 $ % 22 1.08 60 38 40 20 (11) 8 (18) (13) 42 (11) 69 29 24 37 20 18 NM 16 $ $ 1,030 834 1,837 3,701 9,518 2,629 (301) 15,547 $ % 19 1.12 64 40 $ $ 660 767 1,424 2,851 9,027 2,500 273 14,651 % 56 9 29 30 5 5 NM 6 IB manages core 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 tax-exempt income from municipal bond investments of $493 million, $438 million, $475 million, $390 million and $401 million for the quarters ended June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively, and $931 million and $804 million for year-to-date 2011 and 2010, respectively. The compensation expense as a percentage of total net revenue ratio for the second quarter of 2010 and year-to-date 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% and 36%, respectively. IB excludes this tax from the ratio because it enables comparability between periods. Fixed income markets primarily include revenue related to market-making across global fixed income markets, including foreign exchange, interest rate, credit and commodities markets. Equities markets primarily include revenue related to market-making across global equity products, including cash instruments, derivatives, convertibles and Prime Services. Credit portfolio revenue includes net interest income, fees and loan sale activity, as well as gains or losses on securities received as part of a loan restructuring, for IB’s credit portfolio. Credit portfolio revenue also includes the results of risk management related to the Firm’s lending and derivative activities. Page 9
  11. 11. JPMORGAN CHASE & CO. INVESTMENT BANK FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except headcount and ratio data) QUARTERLY TRENDS 2Q11 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) 4Q10 YEAR-TO-DATE 3Q10 2Q11 Change 1Q11 2Q10 2Q10 6 % (32) 3 - 2011 $ 56,107 3,466 59,573 40,000 $ 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 $ 841,355 374,694 69,346 $ 815,828 368,956 67,462 $ 792,703 346,990 72,491 $ 746,926 300,517 76,530 $ 710,005 296,031 65,847 3 2 3 18 27 5 4 8 4 - % 2011 Change 2010 2010 $ 56,107 3,466 59,573 40,000 $ 54,049 3,221 57,270 40,000 4 % 8 4 - $ 828,662 371,841 68,409 $ 693,157 290,091 65,998 20 28 4 54,590 4,154 58,744 628,475 40,000 $ 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 2 8 3 3 - 2 18 3 19 - 53,983 3,995 57,978 619,805 40,000 55,912 3,341 59,253 517,135 40,000 (3) 20 (2) 20 - 27,716 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 1Q11 26,494 26,314 26,373 26,279 5 5 27,716 26,279 5 28 (94) (75) 7 $ 123 $ (23) $ 33 $ $ 130 $ 725 (82) 1,494 2,388 3,159 2,025 1,926 (37) (22) 1,494 1,926 (22) 193 1,687 259 2,647 460 3,619 361 2,386 334 2,260 (25) (36) (42) (25) 193 1,687 334 2,260 (42) (25) 18 83 1,788 21 73 2,741 34 117 3,770 255 148 2,789 315 151 2,726 (14) 14 (35) (94) (45) (34) 18 83 1,788 315 151 2,726 (94) (45) (34) 1,178 383 1,561 1,330 424 1,754 1,863 447 2,310 1,976 570 2,546 2,149 564 2,713 (11) (10) (11) (45) (32) (42) 1,178 383 1,561 2,149 564 2,713 (45) (32) (42) 0.05 2.10 79 2.83 % 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 % 0.49 2.10 79 2.83 % 2.61 3.98 112 3.95 % 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 those of other investment banks in the securities industry. For further discussion of adjusted assets, see page 43. Allowance for loan losses of $377 million, $567 million, $1.1 billion, $603 million and $617 million were held against these nonaccrual loans at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 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 2Q11 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) $ $ 1Q11 45 9 25 16 (37) 58 27 (8) 77 $ 4Q10 49 11 29 13 (38) 64 26 (7) 83 $ June 30, 2011 YTD Market Rankings Share 8.8 % #1 $ $ 53 10 23 14 (38) 62 26 (10) 78 YEAR-TO-DATE 3Q10 $ 72 9 21 13 (38) 77 30 (8) 99 $ 2Q11 Change 1Q11 2Q10 2Q10 $ $ 64 10 20 20 (42) 72 27 (9) 90 (8) % (18) (14) 23 3 (9) (30) % (10) 25 (20) 12 (19) 4 (14) (7) 11 (14) 2011 $ $ 2011 Change 2010 2010 47 10 27 15 (38) 61 27 (8) 80 $ $ 66 12 22 18 (46) 72 23 (9) 86 (29) % (17) 23 (17) 17 (15) 17 11 (7) Full Year 2010 Market Rankings Share 7.6 % #1 6.9 11.5 1 1 7.2 11.1 1 1 12.4 22.8 1 1 8.5 19.2 2 2 6.8 11.5 2 1 7.2 10.9 2 2 7.2 11.9 3 2 7.3 13.1 3 2 20.5 33.9 2 1 16.4 23.1 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 sensitivities 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 year-to-date 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 (in millions) QUARTERLY TRENDS 2Q11 INTERNATIONAL METRICS Total net revenue: (a) Asia/Pacific Latin America/Caribbean Europe/Middle East/Africa North America Total net revenue Loans (period-end): (b) Asia/Pacific Latin America/Caribbean Europe/Middle East/Africa North America Total loans (a) (b) $ $ $ $ 762 337 2,478 3,737 7,314 6,211 2,633 15,370 31,893 56,107 1Q11 $ $ $ $ 4Q10 1,122 327 2,592 4,192 8,233 $ 5,472 2,190 14,059 30,991 52,712 $ $ $ 927 172 1,423 3,691 6,213 5,924 2,200 13,961 31,060 53,145 YEAR-TO-DATE 3Q10 $ $ $ $ 993 167 1,538 2,655 5,353 5,595 1,545 12,781 31,378 51,299 2Q10 $ $ $ $ 901 248 1,544 3,639 6,332 5,697 1,763 12,959 33,630 54,049 2Q11 Change 1Q11 2Q10 (32) % 3 (4) (11) (11) 14 20 9 3 6 2011 (15) % 36 60 3 16 9 49 19 (5) 4 $ $ $ $ 1,884 664 5,070 7,929 15,547 6,211 2,633 15,370 31,893 56,107 2010 $ $ $ $ 2011 Change 2010 1,889 558 4,419 7,785 14,651 - % 19 15 2 6 5,697 1,763 12,959 33,630 54,049 9 49 19 (5) 4 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 2Q11 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) $ 1Q11 823 501 1,100 572 409 3,405 4,571 7,976 $ 4Q10 746 487 (489) 537 364 1,645 4,630 6,275 $ YEAR-TO-DATE 3Q10 737 456 1,609 524 370 3,696 4,829 8,525 $ 2Q11 Change 1Q11 2Q10 2Q10 759 443 705 502 379 2,788 4,858 7,646 $ 780 433 886 480 413 2,992 4,817 7,809 10 % 3 NM 7 12 107 (1) 27 2011 6 % 16 24 19 (1) 14 (5) 2 $ 2011 Change 2010 2010 1,569 988 611 1,109 773 5,050 9,201 14,251 $ 1,621 885 1,541 930 767 5,744 9,841 15,585 (3) % 12 (60) 19 1 (12) (7) (9) Provision for credit losses 1,128 1,326 2,456 1,548 1,715 (15) (34) 2,454 5,448 (55) NONINTEREST EXPENSE Compensation expense Noncompensation expense Amortization of intangibles TOTAL NONINTEREST EXPENSE 2,030 3,547 60 5,637 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 3 10 7 10 50 (14) 32 4,001 6,778 120 10,899 3,612 4,771 140 8,523 11 42 (14) 28 Income/(loss) before income tax expense/(benefit) Income tax expense/(benefit) NET INCOME/(LOSS) 1,211 629 582 1,245 537 708 1,581 674 907 1,813 771 1,042 NM NM NM (33) (18) (44) 898 524 374 1,614 703 911 (44) (25) (59) $ 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) 8 71 70 $ 349,182 $ % (313) (105) (208) $ (3) % 84 83 $ 355,394 10 57 56 $ 366,841 $ % 13 59 58 $ 367,675 $ % 15 55 54 $ $ % 3 76 76 $ 349,182 $ % 7 55 54 $ % 375,329 (2) (7) 375,329 (7) 301,926 13,558 315,484 379,376 28,000 308,827 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 (2) 11 (2) - (9) 8 (8) 5 - 301,926 13,558 315,484 379,376 28,000 330,329 12,599 342,928 359,974 28,000 (9) 8 (8) 5 - 352,836 364,266 373,883 375,968 381,906 (3) (8) 358,520 387,854 (8) 305,131 14,613 319,744 379,848 28,000 312,543 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 (2) (17) (3) 2 - (9) 1 (9) 5 - 308,816 16,058 324,874 376,261 28,000 339,131 15,734 354,865 359,486 28,000 (9) 2 (8) 5 - 127,837 123,550 121,876 119,424 116,879 3 9 127,837 116,879 9 Total net revenue included tax-equivalent adjustments associated with tax-exempt loans to municipalities and other qualified entities of $2 million, $3 million, $1 million, $4 million and $5 million for the quarters ended June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively, and $5 million and $10 million for year-to-date 2011 and 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, $60 million, $68 million, $69 million and $69 million for the quarters ended June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively, and $120 million and $139 million for year-to-date 2011 and 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 $13.3 billion, $12.0 billion, $14.7 billion, $12.6 billion and $12.2 billion at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively. Average balances of these loans totaled $14.5 billion, $17.4 billion, $18.7 billion, $15.3 billion and $12.5 billion for the quarters ended June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively, and $16.0 billion and $13.3 billion for year-to-date 2011 and 2010, respectively. Page 13
  15. 15. JPMORGAN CHASE & CO. RETAIL FINANCIAL SERVICES FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except ratio data) QUARTERLY TRENDS 2Q11 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) $ 1Q11 1,223 $ 4Q10 1,326 $ YEAR-TO-DATE 3Q10 2,159 $ 2Q11 Change 1Q11 2Q10 2Q10 1,548 $ (8) % 1,761 (31) % 2011 $ 2011 Change 2010 2010 2,549 $ 4,199 (39) % 8,273 8,499 8,768 9,801 10,457 (3) (21) 8,273 10,457 (21) 142 8,415 9,406 16,358 150 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 (5) (3) (5) (1) (19) (21) (21) 1 142 8,415 9,406 16,358 176 10,633 11,907 16,152 (19) (21) (21) 1 1.61 % 1.72 % 2.67 % 1.88 % 2.11 % 1.66 % 2.50 2.08 5.42 2.23 5.33 3.47 5.19 2.44 4.99 2.75 4.89 2.16 5.42 3.26 4.89 4.90 4.84 4.72 5.36 5.26 4.90 5.26 138 2.67 3.41 135 2.69 3.46 131 2.69 3.44 136 2.96 3.81 128 3.10 4.00 138 2.67 3.41 % 128 3.10 4.00 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 June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $9.1 billion, $8.8 billion, $9.4 billion, $9.2 billion and $8.9 billion, respectively, that are 90 or more days past due; (2) real estate owned insured by U.S. government agencies of $2.4 billion, $2.3 billion, $1.9 billion, $1.7 billion and $1.4 billion, respectively; and (3) student loans insured by U.S. government agencies under the Federal Family Education Loan Program (“FFELP”) of $558 million, $615 million, $625 million, $572 million and $447 million, respectively, that are 90 or more days past due. 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, $4.9 billion, $2.8 billion and $2.8 billion was recorded for these loans at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 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 2Q11 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 1Q11 1,887 2,707 4,594 42 2,705 1,847 1,102 59 58 $ $ $ % 1,573 17.1 4Q10 1,756 2,659 4,415 119 2,802 1,494 891 63 62 $ $ $ % 1,425 17.0 1,715 2,693 4,408 73 2,668 1,667 954 61 59 $ YEAR-TO-DATE 3Q10 $ $ % 1,435 16.8 1,691 2,745 4,436 175 2,779 1,482 848 63 61 $ 2Q11 Change 1Q11 2Q10 2Q10 $ $ % 1,126 16.6 60 58 $ 7 % 2 4 (65) (3) 24 24 1,684 2,712 4,396 168 2,633 1,595 914 2011 12 % 5 (75) 3 16 21 $ $ % 3,643 5,366 9,009 161 5,507 3,341 1,993 61 60 1,222 16.6 10 1 29 3 $ 2011 Change 2010 2010 $ $ % 2,998 17.1 3,386 5,347 8,733 359 5,210 3,164 1,812 60 58 $ 8 % 3 (55) 6 6 10 % 2,127 16.6 41 3 136.3 178.1 41.9 356.3 17.1 137.4 176.3 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 (1) 1 (5) 1 10 10 (17) 6 2 136.3 178.1 41.9 356.3 17.0 123.5 161.8 50.5 335.8 16.8 10 10 (17) 6 1 $ 123.5 162.2 49.8 335.5 3.08 27.7 $ 123.6 162.8 51.4 337.8 3.05 28.4 $ 134.3 174.0 44.0 352.3 2.89 28.5 $ 121.7 160.7 53.5 335.9 3.03 28.7 10 8 (18) 5 $ 126.6 164.7 47.4 338.7 3.00 28.3 10 9 (16) 6 $ 132.0 171.1 45.0 348.1 2.92 28.7 3 3 (4) 2 $ 136.5 176.8 43.1 356.4 2.87 28.3 $ 117 2.74 784 $ 119 2.86 822 $ 173 4.13 846 $ 175 4.18 913 $ 168 4.04 920 $ 236 2.80 784 $ 359 4.31 920 % % % % % % % % % (1) (2) - (30) % (5) (15) % % % (1) (34) % (15) RETAIL BRANCH BUSINESS METRICS Investment sales volume 6,334 6,584 6,069 5,798 5,756 (4) 10 12,918 11,712 10 Number of: Branches ATMs Personal bankers Sales specialists Active online customers (in thousands) Checking accounts (in thousands) 5,340 16,443 23,308 7,630 18,085 26,266 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 1 1 7 4 (1) (1) 4 5 16 12 9 - 5,340 16,443 23,308 7,630 18,085 26,266 5,159 15,654 20,170 6,785 16,584 26,351 4 5 16 12 9 - (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, $60 million, $68 million, $69 million and $69 million for the quarters ended June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively, and $120 million and $139 million for year-to-date 2011 and 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 2Q11 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) (c) (d) (e) (f) (g) $ % 46.8 14.3 14.0 75.1 (119) 815 696 131 2,105 (1,540) (937) 302 $ $ $ % 47.4 14.1 14.3 75.8 1,971 817 2,788 46 1,743 999 577 63 $ YEAR-TO-DATE 3Q10 $ $ % 48.4 14.2 14.4 77.0 1,076 809 1,885 176 1,348 361 207 72 $ 2Q11 Change 1Q11 2Q10 2Q10 $ $ % 48.2 13.8 14.6 76.6 61 $ NM % (18) 211 1 22 66 52 1,256 792 2,048 175 1,243 630 364 2011 19 % (16) 6 (25) 106 NM NM $ $ % 1,379 1,482 2,861 263 4,666 (2,068) (1,391) 163 47.5 13.2 15.1 75.8 (1) 1 (2) (1) (1) 8 (7) (1) $ 2011 Change 2010 2010 $ $ % 46.8 14.3 14.0 75.1 2,274 1,685 3,959 392 2,489 1,078 621 63 $ (39) % (12) (28) (33) 87 NM NM % 47.5 13.2 15.1 75.8 (1) 8 (7) (1) 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 (1) 1 (2) (1) (1) 4 (16) (3) 47.3 14.1 14.3 75.7 47.2 13.0 17.6 77.8 8 (19) (3) 19 (2) 135 152 Net charge-off/(recovery) rate: Auto Prime mortgage, including option ARMs Student and other Total net charge-off rate (b) (a) (b) $ 4Q10 47.0 14.1 14.1 75.2 CREDIT DATA AND QUALITY STATISTICS Net charge-offs/(recoveries): Auto Prime mortgage, including option ARMs Student and other Total net charge-offs 30+ day delinquency rate (c)(d)(e) Nonperforming assets (f)(g) 1,498 667 2,165 132 2,561 (528) (454) 118 $ 1Q11 47 4 80 131 71 12 114 197 67 10 82 159 58 13 150 221 (60) NM 69 16 (67) NM (10) (31) 66 2 215 283 160 19 214 393 (59) (89) (28) 0.16 % (0.06) 3.84 0.81 $ 1.55 893 0.40 0.12 2.25 0.70 $ 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 % 0.28 0.03 3.03 0.75 (4) (12) $ 1.55 893 % 0.68 0.30 2.80 1.05 $ % 1.42 1,013 (12) 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 $76 million, $133 million, $192 million, $338 million and $1.9 billion for the quarters ended June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively, and $104 million and $2.4 billion for year-to-date 2011 and 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 $221 million, $188 million, $154 million, $467 million and $434 million for the quarters ended June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively. These amounts are excluded when calculating the 30+ day delinquency rate. Excludes mortgage loans insured by U.S. government agencies of $10.1 billion, $9.5 billion, $10.3 billion, $10.2 billion and $9.8 billion at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively, that are 30 or more days past due. These amounts are excluded as reimbursement of insured amounts is proceeding normally. Excludes student loans insured by U.S. government agencies under the FFELP of $968 million, $1.0 billion, $1.1 billion, $1.0 billion and $988 million at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively, that are 30 or more days past due. These amounts are excluded as reimbursement of insured amounts is proceeding normally. At June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $9.1 billion, $8.8 billion, $9.4 billion, $9.2 billion and $8.9 billion, respectively, that are 90 or more days past due; (2) real estate owned insured by U.S. government agencies of $2.4 billion, $2.3 billion, $1.9 billion, $1.7 billion and $1.4 billion, respectively; and (3) student loans insured by U.S. government agencies under the FFELP of $558 million, $615 million, $625 million, $572 million and $447 million, respectively, that are 90 or more days past due. 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 2Q11 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) 20.7 0.1 10.3 2.9 34.0 5.4 $ 4Q10 21.0 0.2 13.5 1.5 36.2 0.1 4.8 $ YEAR-TO-DATE 3Q10 22.9 0.3 25.5 2.1 50.8 4.8 $ 19.2 0.2 19.1 2.4 40.9 0.2 6.1 $ 15.3 0.4 14.7 1.8 32.2 0.1 5.8 31.3 0.3 13.6 45.2 32.4 0.4 24.9 57.7 34.6 0.6 30.7 65.9 17.5 128.4 3.2 955.0 958.7 13.1 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 (1) % (50) (24) 93 (6) NM 13 27.8 0.6 23.5 51.9 14.6 124.4 3.2 940.8 947.0 12.2 12.6 123.2 2.0 1,055.2 1,063.7 11.8 1.30 % 1.37 0.43 3.02x $ 2Q11 Change 1Q11 2Q10 2Q10 33.6 0.3 14.9 48.8 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 1Q11 767 (223) 544 % 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) 35 % (75) (30) 61 6 NM (7) 2011 $ 676 (667) 9 41.7 0.3 23.8 4.4 70.2 0.1 10.2 $ 26.7 0.8 30.7 5.7 63.9 1.7 12.1 56 % (63) (22) (23) 10 (94) (16) 7 10 8 21 (50) (37) (6) 64.9 0.6 28.5 94.0 48.1 1.4 41.7 91.2 35 (57) (32) 3 (17) (3) (1) (1) (7) 16 1 60 (11) (11) 3 16.1 126.4 3.2 940.8 952.9 12.2 13.5 124.0 2.0 1,055.2 1,070.1 11.8 19 2 60 (11) (11) 3 % 1.30 0.45 2.49x $ 2011 Change 2010 2010 % 1.12 0.44 2.95x 13 47 110 13 67 NM $ 1,446 (643) 803 % 0.43 2.60x $ 1,109 (1,099) 10 30 41 NM 1,011 (478) 533 $ 1,052 (563) 489 1,129 (555) 574 1,153 (604) 549 1,186 (620) 566 (4) 15 9 (15) 23 (6) 2,063 (1,041) 1,022 2,293 (1,225) 1,068 (10) 15 (4) (960) 983 23 556 1,100 (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 (28) NM NM NM NM 73 (75) (93) (37) 24 (1,711) 497 (1,214) (192) 611 (3,680) 4,143 463 1,531 1,541 54 (88) NM NM (60) $ $ $ $ $ $ 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 $14.5 billion, $17.4 billion, $18.7 billion, $15.3 billion and $12.5 billion for the quarters ended June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively, and $16.0 billion and $13.3 billion for year-to-date 2011 and 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 2Q11 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) 1Q11 20 1,197 1,217 954 371 (108) (66) 30 $ 82.7 47.0 10.4 0.8 140.9 $ $ % 4Q10 8 1,156 1,164 1,076 355 (267) (162) 30 $ 85.3 48.5 10.8 0.8 145.4 $ $ % 10 1,319 1,329 2,337 413 (1,421) (823) 31 $ YEAR-TO-DATE 3Q10 88.4 49.8 11.3 0.8 150.3 $ $ % $ 21 1,304 1,325 1,197 390 (262) (148) 29 $ 2Q11 Change 1Q11 2Q10 2Q10 91.7 51.3 12.0 0.9 155.9 $ % 30 $ 150 % 4 5 (11) 5 60 59 52 1,313 1,365 1,372 405 (412) (236) (62) % (9) (11) (30) (8) 74 72 2011 $ $ % 28 2,353 2,381 2,030 726 (375) (228) 30 94.8 53.1 12.6 1.0 161.5 (3) (3) (4) (3) (13) (11) (17) (20) (13) $ 2011 Change 2010 2010 82.7 47.0 10.4 0.8 140.9 $ $ % 84 2,809 2,893 4,697 824 (2,628) (1,522) 28 $ (67) % (16) (18) (57) (12) 86 85 % 94.8 53.1 12.6 1.0 161.5 (13) (11) (17) (20) (13) 84.0 47.6 10.7 0.8 143.1 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 (3) (3) (4) (3) (13) (12) (18) (20) (13) 85.5 48.4 10.9 0.8 145.6 97.9 55.5 13.4 1.0 167.8 (13) (13) (19) (20) (13) 23.5 16.2 5.2 24.1 69.0 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 (2) (3) (2) (3) (3) (8) (12) (7) (12) (10) 23.5 16.2 5.2 24.1 69.0 25.5 18.5 5.6 27.3 76.9 (8) (12) (7) (12) (10) 23.7 16.5 5.2 24.4 69.8 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 (2) (3) (2) (3) (3) (8) (12) (10) (12) (11) 23.9 16.7 5.3 24.8 70.7 26.0 19.1 5.8 28.2 79.1 (8) (13) (9) (12) (11) 106.2 87.3 15.6 0.8 209.9 109.3 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 (3) (3) (3) (3) (12) (12) (14) (20) (12) 106.2 87.3 15.6 0.8 209.9 120.3 98.9 18.2 1.0 238.4 (12) (12) (14) (20) (12) 107.7 88.5 15.9 0.8 212.9 200.1 0.3 111.1 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 (3) (3) (3) (3) (3) 50 (12) (12) (16) (20) (12) (13) - 109.4 89.9 16.2 0.8 216.3 203.6 0.5 123.9 102.8 19.2 1.0 246.9 235.2 0.6 (12) (13) (16) (20) (12) (13) (17) 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 2Q11 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) $ 1Q11 592 198 156 8 954 2.83 1.67 5.85 4.01 2.67 $ % $ 5.98 14,659 7,729 6.98 6.90 720 161 186 9 1,076 3.36 1.32 6.80 4.56 2.95 2.20 0.90 3.94 4.01 1.80 4Q10 $ % 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 3.48 4.37 14.42 4.41 4.62 $ % % 6.45 14,659 8,424 6.57 6.47 $ % % 6.77 14,111 9,456 6.12 7.25 796 273 282 21 1,372 3.32 2.02 8.63 8.42 3.34 2.44 1.09 4.57 4.76 2.05 $ 2Q11 Change 1Q11 2Q10 2Q10 730 266 206 12 1,214 3.10 2.02 6.64 4.76 3.03 2.73 2.35 9.90 4.41 3.12 $ YEAR-TO-DATE 3Q10 (18) % 23 (16) (11) (11) (26) % (27) (45) (62) (30) 2011 $ % 2.62 1.09 5.98 8.42 2.27 $ % 6.88 14,127 9,974 5.93 7.01 1,312 359 342 17 2,030 3.09 1.50 6.33 4.29 2.81 $ % % 4 (23) $ 5.98 14,659 7,729 6.98 6.90 1,922 749 739 37 3,447 3.96 2.72 11.12 7.46 4.14 2.42 0.81 4.26 4.29 1.89 (5) 2011 Change 2010 2010 (32) % (52) (54) (54) (41) % 3.13 1.47 7.76 7.46 2.82 $ % 6.88 14,127 9,974 5.93 4 (23) % 7.01 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, $4.9 billion, $2.8 billion and $2.8 billion was recorded for these loans at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively, which was also 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 26.20%, 27.36%, 28.20%, 28.07% and 27.91% at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 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 2Q11 INCOME STATEMENT (a) REVENUE Credit card income All other income (b) Noninterest revenue Net interest income TOTAL NET REVENUE $ Provision for credit losses Merchant acquiring business Bank card volume (in billions) Total transactions (in billions) (a) (b) (c) (d) $ 898 (116) 782 3,200 3,982 $ YEAR-TO-DATE 3Q10 928 (76) 852 3,394 4,246 $ 2Q11 Change 1Q11 2Q10 2Q10 864 (58) 806 3,447 4,253 $ $ 25 % 8 30 (9) (1) 908 (47) 861 3,356 4,217 226 671 1,633 2,221 355 1,163 104 1,622 FINANCIAL RATIOS (a) ROE Overhead ratio Percentage of average loans: Noninterest revenue Net interest income Net revenue Provision for credit losses Risk adjusted margin (c) Noninterest expense Pretax income ("ROO") Net income BUSINESS METRICS, EXCLUDING COMMERCIAL CARD (a) Sales volume (in billions) New accounts opened Open accounts (d) 1,123 (107) 1,016 2,911 3,927 4Q10 810 NONINTEREST EXPENSE Compensation expense Noncompensation expense Amortization of intangibles TOTAL NONINTEREST EXPENSE Income before income tax expense Income tax expense NET INCOME 1Q11 364 1,085 106 1,555 318 1,082 114 1,514 316 1,023 106 1,445 327 986 123 1,436 560 217 343 1,495 584 911 28 41 $ % 2,201 858 1,343 42 39 3.26 9.34 12.60 2.60 10.00 5.20 4.80 2.92 $ % 2,061 762 1,299 34 36 2.39 9.79 12.18 0.69 11.49 4.76 6.73 4.11 $ % 1,175 440 735 19 34 2.49 9.93 12.42 1.96 10.46 4.43 6.03 3.80 $ % 9 34 2.28 9.76 12.05 4.63 7.42 4.09 3.33 2.08 258 2011 24 % (128) 18 (13) (7) $ 2011 Change 2010 2010 2,021 (223) 1,798 6,111 7,909 $ 1,721 (102) 1,619 7,045 8,664 17 % (119) 11 (13) (9) (64) 1,036 5,733 (82) (2) 7 (2) 4 9 18 (15) 13 719 2,248 210 3,177 657 1,935 246 2,838 9 16 (15) 12 (32) (32) (32) 167 169 166 93 53 40 NM NM NM $ % 3,696 1,442 2,254 35 40 2.36 9.20 11.56 6.09 5.47 3.94 1.54 0.94 $ % 1 33 2.82 9.57 12.39 1.62 10.76 4.98 5.79 3.53 % 2.16 9.41 11.57 7.66 3.91 3.79 0.12 0.05 $ 85.5 2.0 65.4 $ 77.5 2.6 91.9 $ 85.9 3.4 90.7 $ 79.6 2.7 89.0 $ 78.1 2.7 88.9 10 (23) (29) 9 (26) (26) $ 163.0 4.6 65.4 $ 147.5 5.2 88.9 11 (12) (26) $ 137.3 5.9 $ 125.7 5.6 $ 127.2 5.6 $ 117.0 5.2 $ 117.1 5.0 9 5 17 18 $ 263.0 11.5 $ 225.1 9.7 17 19 Effective January 1, 2011, the commercial card business 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. Reflects the impact of portfolio sales in the second quarter of 2011. Page 20
  22. 22. JPMORGAN CHASE & CO. CARD SERVICES FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except headcount and ratio data) QUARTERLY TRENDS 2Q11 SELECTED BALANCE SHEET DATA (period-end) (a) Loans (b) Equity $ SELECTED BALANCE SHEET DATA (average) (a) Total assets Loans (c) Equity SUPPLEMENTAL INFORMATION (a)(e) Chase, excluding Washington Mutual portfolio Loans (period-end) Average loans Net interest income (f) Net revenue (f) Risk adjusted margin (f)(g) 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 (f) Net revenue (f) Risk adjusted margin (f)(g) Net charge-off rate 30+ day delinquency rate 90+ day delinquency rate (a) (b) (c) (d) (e) (f) (g) $ 128,803 13,000 $ YEAR-TO-DATE 3Q10 137,676 15,000 $ 2Q11 Change 1Q11 2Q10 2Q10 136,436 15,000 $ 2011 142,994 15,000 (3) % - (12) % (13) $ 2011 Change 2010 2010 125,523 13,000 $ 142,994 15,000 (12) % (13) $ 138,113 132,537 13,000 138,443 135,585 15,000 141,029 140,059 15,000 146,816 146,302 15,000 (4) (6) - (10) (15) (13) 135,262 128,767 13,000 151,864 151,020 15,000 (11) (15) (13) 21,765 Delinquency rates (b) 30+ day 90+ day Allowance for loan losses Allowance for loan losses to period-end loans (b) 125,523 13,000 4Q10 132,443 125,038 13,000 Headcount (d) CREDIT QUALITY STATISTICS - RETAINED (a) Net charge-offs Net charge-off rate (c) 1Q11 21,774 20,739 21,398 21,529 - 1 21,765 21,529 1 1,810 5.82 $ % 2.98 1.55 $ $ $ 8,042 6.41 113,766 112,984 8.60 12.01 8.71 5.22 2.71 1.41 112,366 111,641 8.77 11.95 8.61 5.28 2.73 1.42 2,226 6.97 $ % 3.57 1.93 $ % $ % $ % 9,041 7.24 116,395 119,411 9.09 11.57 10.28 6.13 3.22 1.71 115,016 118,145 9.25 11.51 10.21 6.20 3.25 1.73 2,671 7.85 $ % 4.14 2.25 $ % $ % $ % 11,034 8.14 123,943 121,493 9.16 11.78 10.26 7.08 3.66 1.98 123,943 121,493 9.16 11.78 10.26 7.08 3.66 1.98 3,133 8.87 $ % 4.57 2.41 $ % $ % $ % 13,029 9.55 121,932 124,933 8.98 11.33 6.76 8.06 4.13 2.16 121,932 124,933 8.98 11.33 6.76 8.06 4.13 2.16 3,721 10.20 (19) (51) $ % 4.96 2.76 $ % $ % $ % 14,524 10.16 127,379 129,847 8.47 10.91 4.21 9.02 4.48 2.47 127,379 129,847 8.47 10.91 4.21 9.02 4.48 2.47 4,036 6.40 $ % 2.98 1.55 (11) (45) $ % (2) (5) (11) (13) $ % (2) (6) % (12) (14) $ 8,042 6.41 113,766 116,179 8.85 11.79 9.51 5.69 2.71 1.41 112,366 114,874 9.02 11.73 9.43 5.75 2.73 1.42 8,233 10.99 (51) % 4.96 2.76 $ % $ % $ % 14,524 10.16 127,379 133,495 8.67 10.91 3.30 9.80 4.48 2.47 127,379 133,495 8.67 10.91 3.30 9.80 4.48 2.47 (45) % (11) (13) % (12) (14) % Effective January 1, 2011, the commercial card business 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. There were no loans held-for-sale at June 30, 2011. No allowance for loan losses was recorded for these loans. Loans held-for-sale 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 $276 million, $3.0 billion and $586 million for the quarters ended June 30, 2011, March 31, 2011 and December 31, 2010, respectively, and $1.6 billion for year-to-date 2011. There were no loans held-for-sale for year-to-date 2010. 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 5.81%, 6.81% and 7.82% for the quarters ended June 30, 2011, March 31, 2011 and December 31, 2010, respectively, and 6.32% for year-to-date 2011. Headcount includes 1,274 employees related to the transfer of the commercial card business from TSS to CS in the first quarter of 2011. Supplemental information is provided for Chase, excluding Washington Mutual and Commercial Card portfolios and including loans held-for-sale, which are non-GAAP financial measures, 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 2Q11 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 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) 281 34 283 598 1,029 1,627 $ 4Q10 264 35 203 502 1,014 1,516 $ YEAR-TO-DATE 3Q10 273 35 299 607 1,004 1,611 $ 2Q11 Change 1Q11 2Q10 2Q10 269 36 242 547 980 1,527 $ 6 % (3) 39 19 1 7 280 36 230 546 940 1,486 2011 - % (6) 23 10 9 9 $ 2011 Change 2010 2010 545 69 486 1,100 2,043 3,143 $ (2) % (5) 17 5 10 8 $ 47 152 166 (235) 15 NM 219 336 8 563 $ 223 332 8 563 208 342 8 558 210 341 9 560 196 337 9 542 (2) 1 - 12 (11) 4 442 668 16 1,126 402 661 18 1,081 10 1 (11) 4 1,010 403 607 906 360 546 901 371 530 801 330 471 1,179 486 693 11 12 11 (14) (17) (12) 1,916 763 1,153 1,842 759 1,083 4 1 6 5 3 38 44 7 36 (16) 32 (32) 9 $ 31 (16) 19 (8) 8 $ 880 556 152 39 1,627 $ $ $ $ $ 837 542 110 27 1,516 442 $ 789 286 339 109 104 1,627 $ 30 35 $ $ $ % $ 749 659 126 77 1,611 309 $ 755 286 290 88 97 1,516 $ 28 37 $ $ $ % $ 693 670 120 44 1,527 $ 649 665 115 57 1,486 347 $ 344 $ 333 43 781 301 302 117 110 1,611 $ 766 256 304 118 83 1,527 $ 767 237 285 125 72 1,486 5 17 24 7 7 26 35 $ $ $ % 23 37 $ $ % 35 36 % 101 557 73 416 1,046 1,856 2,902 54 NONINTEREST EXPENSE Compensation expense Noncompensation expense Amortization of intangibles TOTAL NONINTEREST EXPENSE Income before income tax expense Income tax expense NET INCOME 1Q11 $ (21) $ $ $ 1,717 1,098 262 66 3,143 $ 1,307 1,303 220 72 2,902 33 $ 751 $ 644 3 21 19 (13) 44 9 $ 1,544 572 629 197 201 3,143 $ NM 1,513 466 548 225 150 2,902 $ 29 36 $ % 27 37 17 2 23 15 (12) 34 8 % 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 $67 million, $65 million, $85 million, $59 million, and $49 million for quarters ended June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively, and $132 million and $94 million for year-to-date 2011 and 2010, respectively. Effective January 1, 2011, product revenue from commercial card and standby letters of credit transactions is included in lending. For the quarters ending June 30, 2011 and March 31, 2011, the impact of the change was $114 million and $107 million, respectively, and $221 million for year-to-date 2011. 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 2Q11 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) 4Q10 YEAR-TO-DATE 3Q10 2Q11 Change 1Q11 2Q10 2Q10 3 % (33) 3 - 2011 $ 102,122 557 102,679 8,000 $ 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 $ 143,560 $ 140,400 $ 138,041 $ 130,237 $ 133,309 2 8 95,521 391 95,912 136,770 8,000 2 34 2 4 - 6 160 6 19 - 34,424 35,956 11,875 9,814 3,843 95,912 5 6 (2) 2 16 5 10 (24) (6) 6 4,808 4 7 176 29 (77) 100,857 1,015 101,872 162,769 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 1Q11 98,829 756 99,585 156,200 8,000 40,012 37,729 13,062 7,467 3,602 101,872 $ $ 5,140 $ 97,823 612 98,435 147,534 8,000 38,207 37,810 12,374 7,607 3,587 99,585 $ $ 4,941 40 $ 96,657 384 97,041 137,853 8,000 36,561 38,358 11,771 8,169 3,576 98,435 $ $ 4,881 31 $ 35,299 37,509 11,807 8,983 3,443 97,041 $ $ 4,805 286 $ 218 $ 7 25 7 - % 2011 Change 2010 2010 $ 102,122 557 102,679 8,000 $ 95,090 446 95,536 8,000 7 25 7 - $ 141,989 $ 133,162 7 99,849 886 100,735 159,503 8,000 $ $ 95,917 344 96,261 134,966 8,000 $ $ 5,140 $ 71 $ 34,173 36,006 12,065 10,124 3,893 96,261 14 5 5 (26) (8) 5 4,808 39,114 37,769 12,720 7,537 3,595 100,735 4 158 5 18 - 7 405 (82) 1,613 1,925 1,964 2,898 3,036 (16) (47) 1,613 3,036 (47) 21 1,634 30 1,955 36 2,000 48 2,946 41 3,077 (30) (16) (49) (47) 21 1,634 41 3,077 (49) (47) 197 1,831 179 2,134 197 2,197 281 3,227 208 3,285 10 (14) (5) (44) 197 1,831 208 3,285 (5) (44) 2,614 187 2,801 2,577 206 2,783 2,552 209 2,761 2,661 241 2,902 2,686 267 2,953 1 (9) 1 (3) (30) (5) 2,614 187 2,801 2,686 267 2,953 (3) (30) (5) 0.16 2.56 162 1.59 % 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 % 0.14 2.56 162 1.59 % 0.85 2.82 88 3.22 % Corporate Client Banking was known as Mid-Corporate Banking prior to January 1, 2011. Allowance for loan losses of $289 million, $360 million, $340 million, $535 million and $586 million was held against nonaccrual loans retained at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively. Page 23
  25. 25. JPMORGAN CHASE & CO. TREASURY & SECURITIES SERVICES FINANCIAL HIGHLIGHTS (in millions, except ratio and headcount data) QUARTERLY TRENDS 2Q11 INCOME STATEMENT REVENUE Lending- and deposit-related fees Asset management, administration and commissions All other income Noninterest revenue Net interest income TOTAL NET REVENUE $ Provision for credit losses Credit allocation income/(expense) (a) 314 726 143 1,183 749 1,932 $ (2) 32 NONINTEREST EXPENSE Compensation expense Noncompensation expense Amortization of intangibles TOTAL NONINTEREST EXPENSE $ REVENUE BY BUSINESS Treasury Services Worldwide Securities Services TOTAL NET REVENUE $ $ $ $ 513 180 333 $ 930 1,002 1,932 $ 299 80 691 862 1,932 $ 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) 19 75 27 303 695 139 1,137 703 1,840 $ $ $ $ $ % 314 689 209 1,212 701 1,913 $ $ 891 949 1,840 $ 276 76 630 858 1,840 $ 14,607 4,014 5,794 1,084 25,499 $ $ $ $ % 318 644 210 1,172 659 1,831 $ $ 953 960 1,913 $ 270 91 624 928 1,913 $ 11,834 3,628 4,874 820 21,156 $ $ $ $ % 4 4 3 4 7 5 % 2011 - % 3 (32) (4) 15 3 $ $ 937 894 1,831 $ 256 50 579 946 1,831 $ 10,238 3,357 3,391 820 17,806 $ $ $ $ % NM 19 88 NM 697 684 18 1,399 392 141 251 15 77 21 313 705 209 1,227 654 1,881 (16) (30) 701 693 16 1,410 403 146 257 16 77 21 2Q10 (2) (31) 679 763 28 1,470 486 170 316 18 75 26 3Q10 10 (30) 715 647 15 1,377 TRADE FINANCE LOANS BY GEOGRAPHIC REGION (period-end) (b) Asia/Pacific $ 15,736 Latin America/Caribbean 4,553 Europe/Middle East/Africa 6,184 North America 1,000 TOTAL TRADE FINANCE LOANS $ 27,473 FINANCIAL RATIOS ROE Overhead ratio Pretax margin ratio 4Q10 4 27 719 719 15 1,453 Income before income tax expense Income tax expense NET INCOME REVENUE BY GEOGRAPHIC REGION (b) Asia/Pacific Latin America/Caribbean Europe/Middle East/Africa North America TOTAL NET REVENUE 1Q11 YEAR-TO-DATE 2Q11 Change 1Q11 2Q10 1 11 6 3 5 (17) 4 468 176 292 6 6 5 10 2 14 926 955 1,881 4 6 5 5 3 $ 233 71 617 960 1,881 8 5 10 5 28 13 12 (10) 3 $ 9,802 3,008 2,898 693 16,401 8 13 7 (8) 8 61 51 113 44 68 18 74 25 617 1,421 282 2,320 1,452 3,772 $ 2 59 $ $ $ $ % (1) % 4 (27) (2) 15 4 NM NM 1,354 1,334 36 2,724 999 350 649 $ 1,821 1,951 3,772 $ 575 156 1,321 1,720 3,772 $ 15,736 4,553 6,184 1,000 27,473 $ 19 75 26 624 1,364 385 2,373 1,264 3,637 (55) (60) 1,434 1,366 30 2,830 $ 2011 Change 2010 2010 $ $ $ % 6 2 (17) 4 908 337 571 10 4 14 1,808 1,829 3,637 1 7 4 452 116 1,186 1,883 3,637 27 34 11 (9) 4 9,802 3,008 2,898 693 16,401 18 75 25 61 51 113 44 68 % $ 34,034 7,000 $ 31,020 7,000 $ 27,168 6,500 $ 26,899 6,500 $ 24,513 6,500 10 - 39 8 $ 34,034 7,000 $ 24,513 6,500 39 8 $ 52,688 33,069 302,858 7,000 $ 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 10 13 14 - 23 49 23 8 $ 50,294 31,190 284,392 7,000 $ 40,583 20,865 247,294 6,500 24 49 15 8 27,943 1 1 27,943 1 28,230 28,040 29,073 28,544 28,230 IB manages core credit exposures related to the GCB on behalf of IB and TSS. Effective January 1, 2011, IB and TSS 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 trade finance loans, wholesale overdrafts and commercial card. Effective January 1, 2011, the commercial card loan business (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 2Q11 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-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) (d) (e) (f) 930 556 65 1,551 1,002 2,553 $ $ $ 375,432 465,627 59 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 1Q11 $ % 16,945 4Q10 891 542 63 1,496 949 2,445 $ 339,240 421,920 56 67 $ $ $ % 16,619 3Q10 953 659 65 1,677 960 2,637 $ $ 320,745 404,195 54 66 $ YEAR-TO-DATE $ % 16,120 2Q10 937 670 64 1,671 894 2,565 $ $ 302,921 380,370 55 65 $ 2Q11 Change 1Q11 2Q10 $ % 15,863 926 665 62 1,653 955 2,608 4 3 3 4 6 4 303,224 383,460 11 10 54 64 $ % 2011 - % (16) 5 (6) 5 (2) 24 21 $ $ $ % 1,821 1,098 128 3,047 1,951 4,998 2 14 $ $ $ 357,436 443,894 58 67 14,857 2011 Change 2010 2010 $ % 16,945 1,808 1,303 118 3,229 1,829 5,058 304,159 382,260 55 65 $ 1 % (16) 8 (6) 7 (1) 18 16 % 14,857 14 959 32,274 995 32,144 978 30,779 970 30,531 (3) 4 (1) 6 1,951 63,245 1,919 59,200 2 7 63,208 608 23,746 $ 992 30,971 60,942 532 23,170 60,882 525 29,785 57,333 531 28,404 58,484 526 28,066 4 14 2 8 16 (15) 124,150 1,140 23,746 114,238 1,004 28,066 9 14 (15) 14 (73) (79) 14 (79) 48 68 116 7 (15) (2) 54 (40) (1) 48 68 116 54 (40) (1) 3 $ 74 41 115 0.22 NM 0.01 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 % 0.20 343 0.06 % $ 3 $ 74 41 115 0.22 NM 0.01 % 0.20 343 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 quarters ended June 30, 2011 and March 31, 2011, the impact of this change was $114 million and $107 million, respectively, and $221 million for year-to-date 2011. 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 $165 million, $160 million, $181 million, $143 million and $175 million for the quarters ended June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively, and $325 million and $312 million for year-to-date 2011 and 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 2Q11 INCOME STATEMENT REVENUE Asset management, administration and commissions All other income Noninterest revenue Net interest income TOTAL NET REVENUE $ Provision for credit losses REVENUE BY CLIENT SEGMENT Private Banking Institutional Retail TOTAL NET REVENUE SELECTED BALANCE SHEET DATA (average) Total assets Loans Deposits Equity Headcount $ 1,707 313 2,020 386 2,406 $ YEAR-TO-DATE 3Q10 1,846 386 2,232 381 2,613 $ 2Q11 Change 1Q11 2Q10 2Q10 1,498 282 1,780 392 2,172 $ 1,522 177 1,699 369 2,068 7 3 6 3 5 % 2011 19 81 26 8 23 % $ 2011 Change 2010 2010 3,525 634 4,159 784 4,943 $ 3,030 443 3,473 726 4,199 16 % 43 20 8 18 $ $ $ 5 23 23 5 140 140 17 40 1,068 704 22 1,794 FINANCIAL RATIOS ROE Overhead ratio Pretax margin ratio SELECTED BALANCE SHEET DATA (period-end) Loans Equity 1,818 321 2,139 398 2,537 4Q10 12 NONINTEREST EXPENSE Compensation expense Noncompensation expense Amortization of intangibles TOTAL NONINTEREST EXPENSE Income before income tax expense Income tax expense NET INCOME 1Q11 1,039 599 22 1,660 1,078 679 20 1,777 914 557 17 1,488 861 527 17 1,405 3 18 8 24 34 29 28 2,107 1,303 44 3,454 1,771 1,041 35 2,847 19 25 26 21 658 267 391 (1) 6 (6) 11 9 12 1,312 529 783 12 7 16 1,153 455 460 2,068 (2) 28 1 5 12 55 18 23 2,303 999 897 4,199 13 25 21 18 731 292 439 $ 1,289 704 544 2,537 27 71 29 $ $ % 741 275 466 $ 1,317 549 540 2,406 29 69 31 $ $ % 813 306 507 $ 1,376 675 562 2,613 31 68 31 $ $ % 661 241 420 $ 1,181 506 485 2,172 26 69 30 $ $ % 24 68 32 $ $ $ % 1,472 567 905 $ 2,606 1,253 1,084 4,943 28 70 30 $ $ % 24 68 31 (58) % $ 51,747 6,500 $ 46,454 6,500 $ 44,084 6,500 $ 41,408 6,500 $ 38,744 6,500 11 - 34 - $ 51,747 6,500 $ 38,744 6,500 34 - $ 74,206 48,837 97,509 6,500 $ 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 8 9 2 - 17 31 13 - $ 71,577 46,903 96,386 6,500 $ 62,978 37,007 83,573 6,500 14 27 15 - 16,019 4 12 16,019 12 17,963 17,203 16,918 16,510 17,963 Page 26
  28. 28. JPMORGAN CHASE & CO. ASSET MANAGEMENT FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except ratio data and where otherwise noted) QUARTERLY TRENDS 2Q11 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) 1Q11 2,282 1,613 437 50 2,288 1,604 431 46 % 56 71 76 $ % $ % 257 4 261 0.10 0.55 101 0.55 % $ % 267 4 271 0.08 0.61 71 0.85 2,083 1,653 403 43 % 67 65 74 8 375 $ % 2Q11 Change 1Q11 2Q10 2Q10 2,244 1,665 419 42 67 72 80 11 254 YEAR-TO-DATE 3Q10 2,281 1,580 415 49 57 70 77 33 252 222 9 231 0.27 0.43 88 0.49 4Q10 % 10 % (2) 8 16 58 67 78 13 294 257 3 260 0.13 0.62 87 0.71 % 1 1 9 2011 $ % (2) 1 (1) 27 309 200 (1) 22 (18) 250 3 253 0.29 0.65 81 0.80 (14) 125 (11) (11) 200 (9) 2,282 1,613 437 50 (3) 6 (3) % 2,083 1,653 403 43 % 56 71 76 $ 2011 Change 2010 2010 58 67 78 44 252 222 9 231 0.19 0.43 88 0.49 % 10 % (2) 8 16 $ % (3) 6 (3) 55 309 (20) (18) 250 3 253 0.30 0.65 81 0.80 (11) 200 (9) % 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) June 30, 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 Institutional (b) Retail (b) TOTAL ASSETS UNDER MANAGEMENT Private Banking Institutional (b) Retail (b) TOTAL ASSETS UNDER SUPERVISION Mutual fund assets by asset class Liquidity Fixed income Equities and multi-asset Alternatives TOTAL MUTUAL FUND ASSETS (a) (b) Jun 30 2011 $ $ $ $ $ $ $ $ 476 319 430 117 1,342 582 1,924 291 708 343 1,342 776 709 439 1,924 421 105 176 9 711 Mar 31 2011 $ $ $ $ $ $ $ $ 490 305 421 114 1,330 578 1,908 293 711 326 1,330 773 713 422 1,908 436 99 173 8 716 Dec 31 2010 $ $ $ $ $ $ $ $ 497 289 404 108 1,298 542 1,840 284 703 311 1,298 731 703 406 1,840 446 92 169 7 714 Sep 30 2010 $ $ $ $ $ $ $ $ 521 277 362 97 1,257 513 1,770 276 696 285 1,257 698 697 375 1,770 466 88 151 7 712 Jun 30 2010 $ $ $ $ $ $ $ $ Mar 31 2011 Jun 30 2010 489 259 322 91 1,161 479 1,640 (3) % 5 2 3 1 1 1 (3) % 23 34 29 16 22 17 258 651 252 1,161 (1) 5 1 13 9 36 16 653 652 335 1,640 (1) 4 1 19 9 31 17 440 79 133 8 660 (3) 6 2 13 (1) (4) 33 32 13 8 Excludes assets under management of American Century Companies, Inc. in which the Firm had a 40% ownership in the second and first quarters of 2011, 41% in the fourth and third quarters of 2010, and 42% in the second quarter of 2010. In the second quarter of 2011, the client hierarchy used to determine asset classification was revised, and the prior-year periods have been revised. Page 28
  30. 30. JPMORGAN CHASE & CO. ASSET MANAGEMENT FINANCIAL HIGHLIGHTS, CONTINUED (in billions) 2Q11 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 $ 1,330 $ (16) 12 7 9 1,342 $ $ 1,908 12 4 1,924 1Q11 $ 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 YEAR-TO-DATE 2011 2010 2Q10 $ 1,219 $ (29) 12 1 (42) 1,161 $ $ 1,707 (4) (63) 1,640 $ 1,298 $ (25) 28 18 23 1,342 $ $ 1,840 43 41 1,924 $ 1,249 $ (91) 28 7 (32) 1,161 $ $ 1,701 (14) (47) 1,640 Page 29
  31. 31. JPMORGAN CHASE & CO. ASSET MANAGEMENT FINANCIAL HIGHLIGHTS, CONTINUED (in billions, except where otherwise noted) 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: Asia/Pacific Latin America/Caribbean Europe/Middle East/Africa North America Total assets under management Assets under supervision: Asia/Pacific Latin America/Caribbean Europe/Middle East/Africa North America Total assets under supervision (a) 2Q11 $ $ $ $ $ $ 257 251 478 1,551 2,537 119 37 298 888 1,342 161 94 353 1,316 1,924 1Q11 $ $ $ $ $ $ 246 165 439 1,556 2,406 115 35 300 880 1,330 155 88 353 1,312 1,908 4Q10 $ $ $ $ $ $ 263 168 481 1,701 2,613 111 35 282 870 1,298 147 84 331 1,278 1,840 YEAR-TO-DATE 3Q10 $ $ $ $ $ $ 226 125 395 1,426 2,172 2Q10 $ $ 107 27 258 865 1,257 $ 139 74 307 1,250 1,770 $ $ $ 2Q11 Change 1Q11 2Q10 % 2011 214 124 381 1,349 2,068 4 52 9 5 20 102 25 15 23 % $ 95 24 239 803 1,161 3 6 (1) 1 1 25 54 25 11 16 $ 127 68 282 1,163 1,640 4 7 1 27 38 25 13 17 $ $ $ $ 503 416 917 3,107 4,943 119 37 298 888 1,342 161 94 353 1,316 1,924 2010 $ $ $ $ $ $ 2011 Change 2010 436 248 766 2,749 4,199 15 % 68 20 13 18 95 24 239 803 1,161 25 54 25 11 16 127 68 282 1,163 1,640 27 38 25 13 17 Regional revenue is based on the domicile of clients. Page 30

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