2 q10 erf_supplement_7-14-10_final (2)

EARNINGS RELEASE FINANCIAL SUPPLEMENT
SECOND QUARTER 2010

JPMORGAN CHASE & CO.
TABLE OF CONTENTS
Page(s)
Consolidated Results
Consolidated Financial Highlights
Statements of Income
Consolidated Balance Sheets
Condensed Average Balance Sheets and Annualized Yields
Reconciliation from Reported to Managed Summary

2-3
4
5
6
7

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

8
9-11
12-18
19-21
22-23
24-25
26-29
30-31

Credit-Related Information

32-38

Market Risk-Related Information

39

Supplemental Detail
Capital and Other Selected Balance Sheet Items
Per Share-Related Information

40
41

Non-GAAP Financial Measures

42

Glossary of Terms
Disclosure Change Summary

43-46
47

Page 1


CONSOLIDATED FINANCIAL HIGHLIGHTS
(in millions, except per share, ratio and headcount data)

QUARTERLY TRENDS
SELECTED INCOME STATEMENT DATA:
Reported Basis
Total net revenue
Total noninterest expense
Pre-provision profit
Provision for credit losses
Income before extraordinary gain
Extraordinary gain (a)
NET INCOME
Managed Basis (b)
Total net revenue
Total noninterest expense
Pre-provision profit
Extraordinary gain (a)
NET INCOME

2Q10

1Q10

4Q09

YEAR-TO-DATE

3Q09

2Q10 Change
1Q10
2Q09

2Q09

2010

2010 Change
2009

2009

$

25,101
14,631
10,470
3,363
4,795
4,795

$

27,671
16,124
11,547
7,010
3,326
3,326

$

23,164
12,004
11,160
7,284
3,278
3,278

$

26,622
13,455
13,167
8,104
3,512
76
3,588

$

25,623
13,520
12,103
8,031
2,721
2,721

(9) %
(9)
(9)
(52)
44
44

(2) %
8
(13)
(58)
76
76

$

52,772
30,755
22,017
10,373
8,121
8,121

$

50,648
26,893
23,755
16,627
4,862
4,862

4 %
14
(7)
(38)
67
67

$

25,613
14,631
10,982
3,363
4,795
4,795

$

28,172
16,124
12,048
7,010
3,326
3,326

$

25,236
12,004
13,232
8,901
3,278
3,278

$

28,780
13,455
15,325
9,802
3,512
76
3,588

$

27,709
13,520
14,189
9,695
2,721
2,721

(9)
(9)
(9)
(52)
44
44

(8)
8
(23)
(65)
76
76

$

53,785
30,755
23,030
10,373
8,121
8,121

$

54,631
26,893
27,738
19,755
4,862
4,862

(2)
14
(17)
(47)
67
67

PER COMMON SHARE DATA:
Basic Earnings
Net income

1.10
1.10

0.75
0.75

0.75
0.75

0.80
0.82

0.28
0.28

47
47

293
293

1.84
1.84

0.68
0.68

171
171

Diluted Earnings (c)
Net income

1.09
1.09

0.74
0.74

0.74
0.74

0.80
0.82

0.28
0.28

47
47

289
289

1.83
1.83

0.68
0.68

169
169

Cash dividends declared
Book value
Closing share price
Market capitalization

0.05
40.99
36.61
145,554

0.05
39.38
44.75
177,897

0.05
39.88
41.67
164,261

0.05
39.12
43.82
172,596

0.05
37.36
34.11
133,852

4
(18)
(18)

10
7
9

0.10
40.99
36.61
145,554

0.10
37.36
34.11
133,852

10
7
9

COMMON SHARES OUTSTANDING:
Weighted-average diluted shares
Common shares at period-end

4,005.6
3,975.8

3,994.7
3,975.4

3,974.1
3,942.0

3,962.0
3,938.7

3,824.1
3,924.1

5
1

4,000.2
3,975.8

3,791.4
3,924.1

6
1

FINANCIAL RATIOS: (d)
Net income:
Return on equity ("ROE") (c)
Return on tangible common equity ("ROTCE") (c)(e)
Return on assets ("ROA")

12
17
0.94

%

8
12
0.66

CAPITAL RATIOS:
Tier 1 capital ratio
Total capital ratio
Tier 1 common capital ratio (f)

12.1 (g)
15.8 (g)
9.6 (g)

11.5
15.1
9.1

%

8
12
0.65

11.1
14.8
8.8

%

9 % (a)
14 (a)
0.71 (a)

3
5
0.54

10.2
13.9
8.2

-

%

10
15
0.80

%

4
6
0.48

%

9.7
13.3
7.7

(a)

On September 25, 2008, JPMorgan Chase acquired the banking operations of Washington Mutual. The acquisition resulted in negative goodwill, and accordingly, the Firm recognized an extraordinary gain. A preliminary gain of $1.9
billion was recognized at December 31, 2008. The final total extraordinary gain that resulted from the Washington Mutual transaction was $2.0 billion. For the third quarter of 2009, and based on income before extraordinary gain, return
(c) Theon equity remained at2009 earnings per share includescommon non-cash was 13%$1.1 billion, or $0.27 assets was 0.70%.
calculation of second quarter 9%, return on tangible a one-time, equity reduction of and return on per share, resulting from repayment of TARP preferred capital.
(b) For further discussion of managed basis, see Reconciliation from Reported to Managed Summary on page 7.
(c) The calculation of the second quarter 2009 earnings per share and net income applicable to common equity includes a one-time, noncash reduction of $1.1 billion, or $0.27 per share, resulting from repayment of Troubled Asset Relief
Program (“TARP”) preferred capital. Excluding this reduction, the adjusted ROE and ROTCE for the second quarter 2009 would have been 6% and 10%, respectively. The Firm views the adjusted ROE and ROTCE, both non-GAAP
financial measures, as meaningful because they enable the comparability to prior periods.
(d) Ratios are based upon annualized amounts.
(e) The Firm uses return on tangible common equity, a non-GAAP financial measure, to evaluate the Firm's use of equity and to facilitate comparisons with competitors. For further discussion of ROTCE, see page 42.
(f) 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 42.
(g) Estimated.

Page 2


CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except per share, ratio and headcount data)

QUARTERLY TRENDS

YEAR-TO-DATE

2Q10
SELECTED BALANCE SHEET DATA (Period-end) (a)
Total assets
Wholesale loans
Consumer loans
Deposits
Common stockholders' equity
Total stockholders' equity

1Q10

4Q09

3Q09

2Q09

$ 2,014,019
216,826
482,657
887,805
162,968
171,120

$ 2,135,796
214,290
499,509
925,303
156,569
164,721

$ 2,031,989
204,175
429,283
938,367
157,213
165,365

$ 2,041,009
218,953
434,191
867,977
154,101
162,253

$ 2,026,642
231,625
448,976
866,477
146,614
154,766

232,939

226,623

222,316

220,861

220,255

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

(a)

$

$

1,381
1,042
343
693
292
391
653
4,795

$

$

2,471
(131)
(303)
390
279
392
228
3,326

$

$

1,901
(399)
(306)
224
237
424
1,197
3,278

$

$

1,921
7
(700)
341
302
430
1,287
3,588

$

$

1,471
15
(672)
368
379
352
808
2,721

2Q10 Change
1Q10
2Q09
(6) %
1
(3)
(4)
4
4
3

(44)
NM
NM
78
5
186
44

2010
(1) %
(6)
8
2
11
11

2009

$ 2,014,019
216,826
482,657
887,805
162,968
171,120

$ 2,026,642
231,625
448,976
866,477
146,614
154,766

232,939

220,255

6

(6)
NM
NM
88
(23)
11
(19)
76

2010 Change
2009

$

$

3,852
911
40
1,083
571
783
881
8,121

$

$

3,077
489
(1,219)
706
687
576
546
4,862

(1) %
(6)
8
2
11
11
6

25
86
NM
53
(17)
36
61
67

Effective January 1, 2010, the Firm adopted new guidance that amended the accounting for the transfer of financial assets and the consolidation of variable interest entities (“VIEs”). Upon adoption of the new guidance, the Firm consolidated its
Firm-sponsored credit card securitization trusts, Firm-administered multi-seller conduits and certain other consumer loan securitization entities, primarily mortgage-related, adding $87.7 billion and $92.2 billion of assets and liabilities, respectively,
and decreasing stockholders’ equity and the Tier I capital ratio by $4.5 billion and 34 basis points, respectively. The reduction to stockholders’ equity was driven by the establishment of an allowance for loan losses of $7.5 billion (pretax) primarily
related to receivables held in credit card securitization trusts that were consolidated at the adoption date. For further details regarding the Firm's application and impact of the new accounting guidance, see Note 14 on pages 130-131, Note 15 on
pages 131-142 and Note 22 on pages 149-152 of JPMorgan Chase's March 31, 2010, Form 10-Q.

Page 3


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

1Q10
$
1,461
4,548
1,646
3,265
610
658
1,361
412
13,961
16,845
3,135
13,710
27,671
7,010

4Q09
$
1,916
838
1,765
3,361
381
450
1,844
231
10,786
15,615
3,237
12,378
23,164
7,284

3Q09
$
1,679
3,860
1,826
3,158
184
843
1,710
625
13,885
16,260
3,523
12,737
26,622
8,104

2Q09
$
2,106
3,097
1,766
3,124
347
784
1,719
10
12,953
16,549
3,879
12,670
25,623
8,031

7,616
883
1,165
1,685
628
2,419
235
14,631

7,276
869
1,137
1,575
583
4,441
243
16,124

5,112
944
1,182
1,682
536
2,262
256
30
12,004

7,311
923
1,140
1,517
440
1,767
254
103
13,455

6,917
914
1,156
1,518
417
2,190
265
143
13,520

5
2
2
7
8
(46)
(3)
(9)

10
(3)
1
11
51
10
(11)
NM
8

14,892
1,752
2,302
3,260
1,211
6,860
478
30,755

14,505
1,799
2,302
3,033
801
3,565
540
348
26,893

3
(3)
7
51
92
(11)
NM
14

7,107
2,312
4,795
4,795

4,537
1,211
3,326
3,326

3,876
598
3,278
3,278

5,063
1,551
3,512
76
3,588

4,072
1,351
2,721
2,721

57
91
44
44

75
71
76
76

11,644
3,523
8,121
8,121

7,128
2,266
4,862
4,862

63
55
67
67

0.28
0.28

47
47

289
289

0.68
0.68

169
169

$

$
$

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

1.09
1.09

12
17
0.94
33
58

$
$
$
$

$

$
$

%

0.74
0.74

8
12
0.66
27
58

4,795
4,795

$

1.09
1.09

$

$

$

$

$
$

%

0.74
0.74

8
12
0.65
15
52

3,326
3,326

$

0.74
0.74

$

$

$

$

$
$

%

0.80
0.02
0.82

$

$
$

9 % (b)
14 (b)
0.71 (b)
31
51

3,278
18
3,296

$

0.74
0.01
0.75

$

$

$

3
5
0.54
33
53

3,512
64
3,576

$

0.80
0.02
0.82

$

$

$

$

$

$
$

%

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

2010 Change
2009
(17) %
30
(6)
10
195
(35)
(20)
NM
7
(6)
(27)
1
4
(38)

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

FINANCIAL RATIOS
Net income:
Return on equity (c)
Return on tangible common equity (c)(d)
Return on assets
Effective income tax rate (a)
Overhead ratio
EXCLUDING IMPACT OF MERGER COSTS (e)
Merger costs (after-tax)
Income before extraordinary gain excl. merger costs
Diluted Earnings Per Share:
Income before extraordinary gain (c)
Merger costs (after-tax)
Income before extraordinary gain excl. merger costs (c)

YEAR TO DATE
2Q10 Change
1Q10
2Q09
(3) %
(33) %
(54)
(33)
(4)
(10)
3
7
64
188
35
13
10
(13)
42
NM
(11)
(4)
(7)
(5)
(3)
(22)
(7)
(9)
(2)
(52)
(58)

44
44

76
NM
71

$

0.28
0.02
0.30

47
47

289
NM
263

$

$

$

$

1.83
1.83

10
15
0.80
30
58

2,721
89
2,810

$

$
$

%

2009
3,492
5,098
3,454
6,021
545
2,385
3,556
60
24,611
34,475
8,438
26,037
50,648
16,627

4
6
0.48
32
53

8,121
8,121

$

1.83
1.83

$

$

$

%

4,862
216
5,078

67
NM
60

0.68
0.05
0.73

169
NM
151

The income tax expense in the first quarter of 2010 and fourth quarter of 2009 includes tax benefits recognized upon the resolution of tax audits.
On September 25, 2008, JPMorgan Chase acquired the banking operations of Washington Mutual. The acquisition resulted in negative goodwill, and accordingly, the Firm recognized an extraordinary gain. A preliminary gain of $1.9 billion was
recognized at December 31, 2008. The final total extraordinary gain that resulted from the Washington Mutual transaction was $2.0 billion. For the third quarter of 2009, and based on income before extraordinary gain, return on equity remained
at 9%, return on tangible common equity was 13% and return on assets was 0.70%.
The calculation of the second quarter 2009 earnings per share and net income applicable to common equity includes a one-time, noncash reduction of $1.1 billion, or $0.27 per share, resulting from repayment of TARP preferred capital. For
additional information on the reduction, see page 2, footnote (c).
The Firm uses return on tangible common equity, a non-GAAP financial measure, to evaluate the Firm's use of equity and to facilitate comparisons with competitors. For further discussion of ROTCE, see page 42.
Net income excluding merger costs, a non-GAAP financial measure, is used by the Firm to facilitate comparison of results against the Firm's ongoing operations and with other companies' U.S. GAAP financial statements.

Page 4


CONSOLIDATED BALANCE SHEETS
(in millions)

Jun 30
2010
ASSETS (a)
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 (a)
Deposits
Federal funds purchased and securities loaned or sold
under repurchase agreements
Commercial paper
Other borrowed funds

$

32,806
39,430

Mar 31
2010
$

31,422
59,014

Dec 31
2009
$

26,206
63,230

Sep 30
2009
$

21,068
59,623

Jun 30
2009
$

25,133
61,882

June 30, 2010
Change
Mar 31
Jun 30
2010
2009
4 %
(33)

31 %
(36)

199,024
122,289

230,123
126,741

195,404
119,630

171,007
128,059

159,170
129,263

(14)
(4)

25
(5)

$

317,293
80,215
312,013
699,483
35,836
663,647
61,295
11,267
48,320
11,853
4,178
110,389
2,014,019

$

346,712
79,416
344,376
713,799
38,186
675,613
53,991
11,123
48,359
15,531
4,383
108,992
2,135,796

$

330,918
80,210
360,390
633,458
31,602
601,856
67,427
11,118
48,357
15,531
4,621
107,091
2,031,989

$

330,370
94,065
372,867
653,144
30,633
622,511
59,948
10,675
48,334
13,663
4,862
103,957
2,041,009

$

298,135
97,491
345,563
680,601
29,072
651,529
61,302
10,668
48,288
14,600
5,082
118,536
2,026,642

(8)
1
(9)
(2)
(6)
(2)
14
1
(24)
(5)
1
(6)

6
(18)
(10)
3
23
2
6
(19)
(18)
(7)
(1)

$

887,805

$

925,303

$

938,367

$

867,977

$

866,477

(4)

2

237,455
41,082
44,431

295,171
50,554
48,981

261,413
41,794
55,740

310,219
53,920
50,824

300,931
42,713
73,968

(20)
(19)
(9)

(21)
(4)
(40)

Trading liabilities:
Debt and equity instruments
Derivative payables
Accounts payable and other liabilities
Beneficial interests issued by consolidated VIEs
Long-term debt
TOTAL LIABILITIES

74,745
60,137
160,478
88,148
248,618
1,842,899

78,228
62,741
154,185
93,055
262,857
1,971,075

64,946
60,125
162,696
15,225
266,318
1,866,624

65,233
69,214
171,386
17,859
272,124
1,878,756

56,021
67,197
171,685
20,945
271,939
1,871,876

(4)
(4)
4
(5)
(5)
(7)

33
(11)
(7)
321
(9)
(2)

STOCKHOLDERS' EQUITY (a)
Preferred stock
Common stock
Capital surplus
Retained earnings
Accumulated other comprehensive income/(loss)
Shares held in RSU trust, at cost
Treasury stock, at cost
TOTAL STOCKHOLDERS' EQUITY
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

8,152
4,105
96,745
65,465
2,404
(68)
(5,683)
171,120
2,014,019

8,152
4,105
96,450
61,043
761
(68)
(5,722)
164,721
2,135,796

8,152
4,105
97,982
62,481
(91)
(68)
(7,196)
165,365
2,031,989

8,152
4,105
97,564
59,573
283
(86)
(7,338)
162,253
2,041,009

8,152
4,105
97,662
56,355
(3,438)
(86)
(7,984)
154,766
2,026,642

7
216
1
4
(6)

(1)
16
NM
21
29
11
(1)

(a)

$

$

$

$

$

Effective January 1, 2010, the Firm adopted new accounting guidance that amended the accounting for the transfer of financial assets and the consolidation of VIEs. For further details regarding the
Firm’s application and impact of the new guidance, see footnote (a) on page 3.

Page 5


CONDENSED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
(in millions, except rates)

QUARTERLY TRENDS
AVERAGE BALANCES (a)
ASSETS
Deposits with banks
resale agreements
Securities borrowed
Trading assets - debt instruments
Securities
Loans
Other assets (b)
Total interest-earning assets
Trading assets - equity instruments
Trading assets - derivative receivables
All other noninterest-earning assets
TOTAL ASSETS
LIABILITIES
Interest-bearing deposits
Federal funds purchased and securities loaned or
sold under repurchase agreements
Commercial paper
Trading liabilities - debt instruments
Other borrowings and liabilities (c)
Long-term debt
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 (a)
INTEREST-EARNING ASSETS
Deposits with banks
resale agreements
Securities borrowed
Trading assets - debt instruments
Securities
Loans
Other assets (b)
Total interest-earning assets
INTEREST-BEARING LIABILITIES
Interest-bearing deposits
Federal funds purchased and securities loaned or

2Q10
$

1Q10

58,737

4Q09

$

64,229

$

189,573
113,650
245,532
327,425
705,189
34,429
1,674,535
95,080
79,409
194,623
2,043,647

$

668,953

$

49,705

$

170,036
114,636
248,089
337,441
725,136
27,885
1,687,452
83,674
78,683
188,871
2,038,680

$

677,431

$

%

62,248

$

156,848
125,453
256,414
374,327
642,406
29,868
1,635,021
74,936
86,415
196,853
1,993,225

$

$

68,001

$

151,705
129,301
250,148
359,451
665,386
24,155
1,642,394
66,790
99,807
190,185
1,999,176

667,269

$

660,998

283,263
42,290
63,048
119,374
16,002
268,476
1,459,722
203,092
8,372
63,423
93,939
1,828,548
8,152
156,525
164,677

2,038,680

0.60

2Q09

$

271,934
37,461
65,154
123,321
98,104
262,503
1,535,908
200,075
5,728
59,053
73,670
1,874,434
8,152
156,094
164,246

2,043,647

0.63

3Q09

$

273,614
37,557
72,276
131,546
90,085
256,089
1,530,120
209,615
5,216
62,547
68,928
1,876,426
8,152
159,069
167,221

$

%

YEAR-TO-DATE

$

%

(14) %

$

142,226
122,235
245,444
354,216
697,908
36,638
1,666,668
63,507
114,096
194,101
2,038,372

11
(1)
(1)
(3)
(3)
23
(1)
14
1
3
-

$

$

33
(7)
(8)
1
(6)
50
(30)
-

672,350

(1)

(1)

1

$

%

11
7
(8)
(2)
5
(9)
6
(6)
2
2

2,038,372

-

-

$

78,237

$

179,858
114,140
246,804
332,405
715,108
31,175
1,680,958
89,408
79,048
191,763
2,041,177

$

151,554
121,498
248,753
318,019
712,353
32,050
1,662,464
63,130
128,092
198,980
2,052,666

19
(6)
(1)
5
(3)
1
42
(38)
(4)
(1)

$

673,169

$

704,228

(4)

258,217
35,543
41,690
180,309
12,138
266,571
1,498,696
198,531
13,036
86,503
87,071
1,883,837
30,138
138,691
168,829

6
6
65
(29)
NM
(3)
2
3
(58)
(30)
(18)
(73)
14
(2)

2,052,666

(1)

(6)
67
(20)
NM
(7)
2
5
(54)
(20)
(18)
(71)
13
(1)

1.45

-

%

2010 Change
2009

2009

61,468

289,971
37,371
43,150
164,339
14,493
274,323
1,495,997
199,221
11,437
78,155
84,359
1,869,169
28,338
140,865
169,203

1,999,176

0.83

2010

(9) %

303,175
42,728
47,467
131,518
19,351
271,281
1,476,518
191,821
12,376
75,458
85,383
1,841,556
8,152
149,468
157,620

1,993,225

0.95

2Q10 Change
1Q10
2Q09

272,779
37,509
68,735
127,455
94,072
259,279
1,532,998
204,871
5,470
60,809
71,287
1,875,435
8,152
157,590
165,742
$

2,041,177

0.61

$

%

1.78

0.84
0.11
4.25
3.14
5.68
1.60
3.79

0.97
0.10
4.56
3.54
5.91
1.36
4.07

0.92
0.14
4.63
3.32
5.51
1.42
3.80

0.96
(0.09)
4.78
3.62
5.64
2.18
3.95

1.04
(0.32)
4.91
3.64
5.65
0.80
4.00

0.90
0.11
4.41
3.34
5.80
1.49
3.93

0.51

0.53

0.65

0.70

0.52

%

1.35
(0.02)
5.09
3.87
5.76
1.50
4.20

0.53

(21) %

0.82

(d)

(d)

sold under repurchase agreements
Commercial paper
Trading liabilities - debt instruments
Other borrowings and liabilities (c)
Long-term debt
Total interest-bearing liabilities

(0.07)
0.19
2.49
0.50
1.36
1.97
0.79

(0.05)
0.19
3.39
0.56
1.36
1.95
0.83

0.08
0.20
3.85
0.83
1.32
2.01
0.88

0.20
0.23
4.50
0.69
1.43
2.09
0.95

0.23
0.24
3.76
0.69
1.59
2.60
1.04

(0.06)
0.19
2.91
0.53
1.36
1.96
0.81

0.29
0.35
3.71
0.86
1.58
2.67
1.14

INTEREST RATE SPREAD
NET YIELD ON INTEREST-EARNING ASSETS
NET YIELD ON INTEREST-EARNING ASSETS
ADJUSTED FOR SECURITIZATIONS

3.00%
3.06%

3.24%
3.32%

2.92%
3.02%

3.00%
3.10%

2.96%
3.07%

3.12%
3.19%

3.06%
3.18%

3.06%

3.32%

3.33%

3.40%

3.37%

3.19%

3.48%

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

Effective January 1, 2010, the Firm adopted new accounting guidance that amended the accounting for the transfer of financial assets and the consolidation of VIEs. For further details regarding the Firm’s application and impact of the new guidance,
see footnote (a) on page 3.
Includes margin loans and the Firm's investment in asset-backed commercial paper under the Federal Reserve Bank of Boston's AML facility, which declined to zero during the third quarter of 2009.
Includes securities sold but not yet purchased, brokerage customer payables and advances from Federal Home Loan Banks.
Reflects a benefit from the favorable market environment for dollar-roll financings.
Page 6


RECONCILIATION FROM REPORTED TO MANAGED SUMMARY
(in millions)

The Firm prepares its consolidated financial statements using accounting principles generally accepted in the United States of America ("U.S. GAAP"). That presentation, which is referred to as "reported basis," provides the reader with an
understanding of the Firm's results that can be tracked consistently from year to year and enables a comparison of the Firm's performance with other companies' U.S. GAAP financial statements.
In addition to analyzing the Firm’s results on a reported basis, management reviews the Firm’s results and the results of the lines of business on a “managed” basis, which is a non-GAAP financial measure. For additional information on
managed basis, including the effect of adopting, effective January 1, 2010, new accounting guidance that amended the accounting for the transfer of financial assets and the consolidation of VIEs, refer to the notes on Non-GAAP Financial
Measures on page 42.
QUARTERLY TRENDS
CREDIT CARD INCOME
Credit card income - reported
Impact of:
Credit card securitizations
Credit card income - managed
OTHER INCOME
Other income - reported
Impact of:
Tax-equivalent adjustments
Other income - managed
TOTAL NONINTEREST REVENUE
Total noninterest revenue - reported
Impact of:
Total noninterest revenue - managed
NET INTEREST INCOME
Net interest income - reported
Impact of:
Net interest income - managed
TOTAL NET REVENUE
Total net revenue - reported
Impact of:
Total net revenue - managed
PRE-PROVISION PROFIT
Total pre-provision profit - reported
Impact of:
Total pre-provision profit - managed
PROVISION FOR CREDIT LOSSES
Provision for credit losses - reported
Impact of:
Provision for credit losses - managed
INCOME TAX EXPENSE
Income tax expense - reported
Impact of:
Income tax expense - managed

2Q10
$
1,495

1Q10
$
1,361

4Q09
$
1,844

3Q09
$
1,710

YEAR-TO-DATE
2Q09
$
1,719

$

N/A
1,495

$

N/A
1,361

$

(375)
1,469

$

(285)
1,425

$

$

585

$

412

$

231

$

625

$

$

416
1,001

$

411
823

$

397
628

$

371
996

$

12,414

$

13,961

$

10,786

$

13,885

$

N/A
416
12,830

$

N/A
411
14,372

$

(375)
397
10,808

$

(285)
371
13,971

$

12,687

$

13,710

$

12,378

$

$

N/A
96
12,783

$

N/A
90
13,800

$

1,992
58
14,428

$

25,101

$

27,671

$

$

N/A
512
25,613

$

N/A
501
28,172

$

10,470

$

11,547

$

N/A
512
10,982

$

(294)
1,425

2Q10 Change
1Q10
2Q09
10 %
(13) %

$

2010
2,856

$

2009
3,556

NM
10

NM
5

$

N/A
2,856

$

10

42

NM

$

997

$

60

$

335
345

1
22

$

827
1,824

$

672
732

$

12,953

(11)

(4)

$

26,375

$

24,611

7

$

(294)
335
12,994

NM
1
(11)

NM
24
(1)

$

N/A
827
27,202

$

(834)
672
24,449

NM
23
11

12,737

$

12,670

(7)

-

$

26,397

$

26,037

1

$

1,983
89
14,809

$

1,958
87
14,715

NM
7
(7)

NM
10
(13)

$

N/A
186
26,583

$

3,962
183
30,182

NM
2
(12)

23,164

$

26,622

$

25,623

(9)

(2)

$

52,772

$

50,648

4

$

1,617
455
25,236

$

1,698
460
28,780

$

1,664
422
27,709

NM
2
(9)

NM
21
(8)

$

N/A
1,013
53,785

$

3,128
855
54,631

NM
18
(2)

$

11,160

$

13,167

$

12,103

(9)

(13)

$

22,017

$

23,755

(7)

$

N/A
501
12,048

$

1,617
455
13,232

$

1,698
460
15,325

$

1,664
422
14,189

NM
2
(9)

NM
21
(23)

$

N/A
1,013
23,030

$

3,128
855
27,738

NM
18
(17)

3,363

$

7,010

$

7,284

$

8,104

$

8,031

(52)

(58)

$

10,373

$

16,627

(38)

$

N/A
3,363

$

N/A
7,010

$

1,617
8,901

$

1,698
9,802

$

1,664
9,695

NM
(52)

NM
(65)

$

N/A
10,373

$

3,128
19,755

NM
(47)

$

2,312

$

1,211

$

598

$

1,551

$

1,351

91

71

$

3,523

$

2,266

55

$

512
2,824

$

501
1,712

$

455
1,053

$

460
2,011

$

422
1,773

2
65

21
59

$

1,013
4,536

$

855
3,121

18
45

24
190

(834)
2,722

2010 Change
2009
(20) %
NM
5

NM
23
149

N/A: Not applicable.

Page 7


LINE OF BUSINESS FINANCIAL HIGHLIGHTS - MANAGED BASIS
(in millions, except ratio data)

QUARTERLY TRENDS
2Q10
TOTAL NET REVENUE (FTE)
Investment Bank (a)
Card Services
Commercial Banking
Asset Management
Corporate/Private Equity (a)
TOTAL NET REVENUE
TOTAL PRE-PROVISION PROFIT
Investment Bank (a)
Card Services
Commercial Banking
Asset Management
Corporate/Private Equity (a)
TOTAL PRE-PROVISION PROFIT
NET INCOME/(LOSS)
Investment Bank
Card Services
Commercial Banking
Asset Management
TOTAL NET INCOME
AVERAGE EQUITY (b)
Investment Bank
Card Services
Commercial Banking
Asset Management
TOTAL AVERAGE EQUITY
RETURN ON EQUITY (b)
Investment Bank
Card Services
Commercial Banking
Asset Management

(a)
(b)

$

$

$

$

$

$

$

$

1Q10

6,332
7,809
4,217
1,486
1,881
2,068
1,820
25,613

$

1,810
3,528
2,781
944
482
663
774
10,982

$

1,381
1,042
343
693
292
391
653
4,795

$

40,000
28,000
15,000
8,000
6,500
6,500
55,069
159,069

$

14
15
9
35
18
24

$

$

$

$

%

4Q09

8,319
7,776
4,447
1,416
1,756
2,131
2,327
28,172

$

3,481
3,534
3,045
877
431
689
(9)
12,048

$

2,471
(131)
(303)
390
279
392
228
3,326

$

40,000
28,000
15,000
8,000
6,500
6,500
52,094
156,094

25 %
(2)
(8)
20
17
24

$

$

$

$

$

YEAR-TO-DATE

3Q09

4,929
7,669
5,148
1,406
1,835
2,195
2,054
25,236

$

2,643
3,367
3,752
863
444
725
1,438
13,232

$

1,901
(399)
(306)
224
237
424
1,197
3,278

33,000
25,000
15,000
8,000
5,000
7,000
63,525
156,525

23 %
(6)
(8)
11
19
24

$

$

$

$

$

$

2Q09

7,508
8,218
5,159
1,459
1,788
2,085
2,563
28,780

$

3,234
4,022
3,853
914
508
734
2,060
15,325

$

1,921
7
(700)
341
302
430
1,287
3,588

33,000
25,000
15,000
8,000
5,000
7,000
56,468
149,468

23 %
(19)
17
24
24

$

$

$

$

$

$

2Q10 Change
1Q10
2Q09

2010

7,301
7,970
4,868
1,453
1,900
1,982
2,235
27,709

(24) %
(5)
5
7
(3)
(22)
(9)

(13) %
(2)
(13)
2
(1)
4
(19)
(8)

$

3,234
3,891
3,535
918
612
628
1,371
14,189

(48)
(9)
8
12
(4)
NM
(9)

(44)
(9)
(21)
3
(21)
6
(44)
(23)

$

(44)
NM
NM
78
5
186
44

(6)
NM
NM
88
(23)
11
(19)
76

$

6
2

21
12
30
(7)
15
13

$

1,471
15
(672)
368
379
352
808
2,721

33,000
25,000
15,000
8,000
5,000
7,000
47,865
140,865

18 %
(18)
18
30
20

$

$

$

$

2010 Change
2009

2009

14,651
15,585
8,664
2,902
3,637
4,199
4,147
53,785

$

5,291
7,062
5,826
1,821
913
1,352
765
23,030

$

3,852
911
40
1,083
571
783
881
8,121

$

40,000
28,000
15,000
8,000
6,500
6,500
53,590
157,590

$

19
7
1
27
18
24

$

$

$

$

%

15,672
16,805
9,997
2,855
3,721
3,685
1,896
54,631

(7) %
(7)
(13)
2
(2)
14
119
(2)

6,831
8,555
7,318
1,767
1,114
1,033
1,120
27,738

(23)
(17)
(20)
3
(18)
31
(32)
(17)

3,077
489
(1,219)
706
687
576
546
4,862

25
86
NM
53
(17)
36
61
67

33,000
25,000
15,000
8,000
5,000
7,000
45,691
138,691

21
12
30
(7)
17
14

19 %
4
(16)
18
28
17

Corporate/Private Equity includes an adjustment to offset IB's inclusion of the credit reimbursement from TSS in total net revenue; TSS reports the reimbursement to IB as a separate line on its income statement (not part of total revenue).
Equity for a line of business represents the amount the Firm believes the business would require if it were operating independently, incorporating sufficient capital to address economic risk measures, regulatory capital requirements and
capital levels for similarly rated peers. Capital is also allocated to each line of business for, among other things, goodwill and other intangibles associated with acquisitions effected by the line of business. Return on common equity is
measured and internal targets for expected returns are established as a key measure of a business segment’s performance. Effective January 1, 2010, the Firm enhanced its line of business equity framework to better align equity
assigned to each line of business with the changes anticipated to occur in that line of business, as well as changes in the competitive and regulatory landscape. The lines of business are now capitalized based on the Tier 1 common
standard, rather than the Tier 1 capital standard.

Page 8


INVESTMENT BANK
FINANCIAL HIGHLIGHTS

QUARTERLY TRENDS
2Q10
INCOME STATEMENT
REVENUE
Investment banking fees
Principal transactions
All other income (a)
Noninterest revenue
Net interest income
TOTAL NET REVENUE (b)

$


1Q10

1,405
2,105
203
633
86
4,432
1,900
6,332

$

(325)

4Q09

1,446
3,931
202
563
49
6,191
2,128
8,319

$

(462)

YEAR-TO-DATE

3Q09

1,892
84
174
608
(14)
2,744
2,185
4,929

$

(181)

2Q10 Change
1Q10
2Q09

2Q09

1,658
2,714
185
633
63
5,253
2,255
7,508

$

2,239
1,841
167
717
(108)
4,856
2,445
7,301

379

(3) %
(46)
12
76
(28)
(11)
(24)

871

2010

(37) %
14
22
(12)
NM
(9)
(22)
(13)

30

$

NM

2010 Change
2009

2009

2,851
6,036
405
1,196
135
10,623
4,028
14,651

$

(787)

3,619
5,356
305
1,409
(164)
10,525
5,147
15,672

(21) %
13
33
(15)
NM
1
(22)
(7)

2,081

NM

NONINTEREST EXPENSE
Noncompensation expense

2,923
1,599
4,522

2,928
1,910
4,838

549
1,737
2,286

2,778
1,496
4,274

2,677
1,390
4,067

(16)
(7)

9
15
11

5,851
3,509
9,360

6,007
2,834
8,841

(3)
24
6

Income before income tax expense
Income tax expense
NET INCOME

2,135
754
1,381

3,943
1,472
2,471

2,824
923
1,901

2,855
934
1,921

2,363
892
1,471

(46)
(49)
(44)

(10)
(15)
(6)

6,078
2,226
3,852

4,750
1,673
3,077

28
33
25

$

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

(a)
(b)
(c)

14
0.78
71
37

$

$

$

$

$

%

25
1.48
58
35

355
354
696
1,405
3,563
1,038
326
6,332

$

3,935
1,537
860
6,332

$

$

$

$

%

23
1.12
46
11

305
413
728
1,446
5,464
1,462
(53)
8,319

$

4,562
2,814
943
8,319

$

$

$

$

%

23
1.12
57
37

611
549
732
1,892
2,735
971
(669)
4,929

$

2,872
1,502
555
4,929

$

$

$

$

%

18
0.83
56
37

384
681
593
1,658
5,011
941
(102)
7,508

$

3,850
2,912
746
7,508

$

$

$

$

%

19
1.12
64
36

393
1,103
743
2,239
4,929
708
(575)
7,301

16
(14)
(4)
(3)
(35)
(29)
NM
(24)

(10)
(68)
(6)
(37)
(28)
47
NM
(13)

$

4,118
2,303
880
7,301

(14)
(45)
(9)
(24)

(4)
(33)
(2)
(13)

$

$

$

$

%

19
0.86
56
38

660
767
1,424
2,851
9,027
2,500
273
14,651

$

8,497
4,351
1,803
14,651

$

$

$

%

872
1,411
1,336
3,619
9,818
2,481
(246)
15,672

(24)
(46)
7
(21)
(8)
1
NM
(7)

8,434
5,376
1,862
15,672

1
(19)
(3)
(7)

Treasury & Securities Services ("TSS") was charged a credit reimbursement related to certain exposures managed within the Investment Bank (“IB”) credit portfolio on behalf of clients shared with TSS. IB recognizes this credit
reimbursement in its credit portfolio business in all other income.
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 $401
million, $403 million, $357 million, $371 million and $334 million for the quarters ended June 30, 2010, March 31, 2010, December 31, 2009, September 30, 2009 and June 30, 2009, respectively, and $804 million and $699 million for yearto-date 2010 and 2009, respectively.
The second quarter and year-to-date of 2010 excludes a payroll tax expense related to the United Kingdom Bonus Payroll Tax on certain performance bonuses awarded between December 9, 2009, and April 5, 2010, to employees
operating in the U.K.

Page 9


INVESTMENT BANK
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except headcount and ratio data)

QUARTERLY TRENDS
2Q10
SELECTED BALANCE SHEET DATA (Period-end)
Loans (a):
Loans retained (b)
Loans held-for-sale & 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 (a):
Loans retained (b)
Loans held-for-sale & loans at fair value
Total loans
Adjusted assets (c)
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 rate (b)(e)
Allow. for loan losses to period-end loans retained (b)(e)
Allow. for loan losses to average loans retained (b)(e)
Allow. for loan losses to nonperforming loans retained (b)(d)(e)
Nonperforming loans to total period-end loans
Nonperforming loans to total average loans

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

4Q09

3Q09

2Q09

$

54,049
3,221
57,270
40,000

$

53,010
3,594
56,604
40,000

$

45,544
3,567
49,111
33,000

$

55,703
4,582
60,285
33,000

$

64,500
6,814
71,314
33,000

$

710,005
296,031
65,847

$

676,122
284,085
66,151

$

674,241
285,363
72,640

$

678,796
270,695
86,651

$

710,825
265,336
100,536

2 %
(10)
1
-

2010

2010 Change
2009

2009

(16) %
(53)
(20)
21

$

54,049
3,221
57,270
40,000

$

64,500
6,814
71,314
33,000

(16) %
(53)
(20)
21

5
4
-

12
(35)

$

693,157
290,091
65,998

$

721,934
269,146
112,711

(4)
8
(41)

53,351
3,530
56,881
527,520
40,000

$

58,501
3,150
61,651
506,635
40,000

51,573
4,158
55,731
519,403
33,000

61,269
4,981
66,250
515,718
33,000

68,224
8,934
77,158
531,632
33,000

(9)
12
(8)
4
-

(22)
(60)
(26)
(1)
21

55,912
3,341
59,253
517,135
40,000

69,128
10,658
79,786
560,239
33,000

(19)
(69)
(26)
(8)
21

26,279

Headcount
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs
Nonperforming assets:
Nonperforming loans:
Nonperforming loans retained (b)(d)
Nonperforming loans held-for-sale and loans
at fair value
Total nonperforming loans

1Q10

YEAR-TO-DATE
2Q10 Change
1Q10
2Q09

24,977

24,654

24,828

25,783

5

2

26,279

25,783

2

433

(96)

(94)

469

55

28

$

697

$

685

$

750

$

$

725

$

1,926

2,459

3,196

4,782

3,407

(22)

(43)

1,926

3,407

(43)

334
2,260

282
2,741

308
3,504

128
4,910

112
3,519

18
(18)

198
(36)

334
2,260

112
3,519

198
(36)

315
151
2,726

363
185
3,289

529
203
4,236

624
248
5,782

704
311
4,534

(13)
(18)
(17)

(55)
(51)
(40)

315
151
2,726

704
311
4,534

(55)
(51)
(40)

2,149
564
2,713

2,601
482
3,083

3,756
485
4,241

4,703
401
5,104

5,101
351
5,452

(17)
17
(12)

(58)
61
(50)

2,149
564
2,713

5,101
351
5,452

(58)
61
(50)

0.21
3.98
4.03
112
3.95
3.97

%

4.83
4.91
4.45
106
4.84
4.45

%

5.27
8.25
7.28
118
7.13
6.29

%

4.86
8.44
7.68
98
8.14
7.41

%

2.55
7.91
7.48
150
4.93
4.56

%

2.61
3.98
3.84
112
3.95
3.81

%

1.37
7.91
7.38
150
4.93
4.41

%

Effective January 1, 2010, the Firm adopted new accounting guidance that amended the accounting for the transfer of financial assets and the consolidation of VIEs. For further details regarding the Firm’s application and impact of the
new guidance, see footnote (a) on page 3.
Loans retained included credit portfolio loans, leveraged leases and other accrual loans, and excluded loans held-for-sale and loans accounted for at fair value.
Adjusted assets, a non-GAAP financial measure, is presented to assist the reader in comparing IB’s asset and capital levels to other investment banks in the securities industry. For further discussion of adjusted assets, see page 42.
Allowance for loan losses of $617 million, $811 million, $1.3 billion, $1.8 billion and $1.6 billion were held against these non-performing loans at June 30, 2010, March 31, 2010, December 31, 2009, September 30, 2009 and June 30,
2009, respectively.
Loans held-for-sale and loans at fair value were excluded when calculating the allowance coverage and net charge-off rate.

Page 10


INVESTMENT BANK
(in millions, except ratio and rankings data)

QUARTERLY TRENDS
2Q10
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)
Global debt, equity and equity-related
Global syndicated loans
Global long-term debt (f)
Global equity and equity-related (g)
Global announced M&A (h)
U.S. debt, equity and equity-related
U.S. syndicated loans
U.S. long-term debt (f)
U.S. equity and equity-related
U.S. announced M&A (h)

(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)

$

$

1Q10

64
10
20
20
(42)
72
27
(9)
90

$

$

4Q09

69
13
24
15
(49)
72
19
(9)
82

June 30, 2010 YTD
Market
Share
Rankings
8%
#1
7%
#1
10%
#1
7%
#2
8%
#1
14%
#4
12%
#1
21%
#2
11%
#2
16%
#1
22%
#3

$

$

121
14
21
17
(62)
111
24
(11)
124

YEAR-TO-DATE

3Q09

$

$

182
19
19
23
(97)
146
29
(32)
143

2Q09

$

$

179
16
50
22
(97)
170
68
(60)
178

2Q10 Change
1Q10
2Q09

(7) %
(23)
(17)
33
14
42
10

(64) %
(38)
(60)
(9)
57
(58)
(60)
85
(49)

2010

$

$

2009

66
12
22
18
(46)
72
23
(9)
86

$

$

168
19
73
21
(101)
180
77
(62)
195

2010 Change
2009

(61) %
(37)
(70)
(14)
54
(60)
(70)
85
(56)

Full Year 2009
Market
Share
Rankings
9%
#1
9%
#1
8%
#1
8%
#1
12%
#1
24%
#3
15%
#1
22%
#1
14%
#1
16%
#2
36%
#2

Average VaRs were less than the sum of the VaRs of their market risk components, which was due to risk offsets resulting from portfolio diversification. The diversification effect reflected the fact that the risks were not perfectly correlated.
The risk of a portfolio of positions is usually less than the sum of the risks of the positions themselves.
IB Trading VaR includes predominantly all trading activities in IB, as well as syndicated lending facilities that the Firm intends to distribute; however, particular risk parameters of certain products are not fully captured, such as correlation risk.
IB 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.
Source: Dealogic. Global Investment Banking fees reflects the ranking of fees and market share. The remaining rankings reflect transaction volume 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 excludes 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 upon transaction value at announcement; all other rankings are based upon 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 2010 and full-year 2009 reflects the removal of any withdrawn transactions. U.S. announced M&A represents any U.S. involvement ranking.

Page 11


RETAIL FINANCIAL SERVICES
(in millions, except ratio and headcount data)

QUARTERLY TRENDS
2Q10
INCOME STATEMENT
REVENUE
Credit card income
Other income
Noninterest revenue
Net interest income
TOTAL NET REVENUE

$

1Q10

780
433
886
480
413
2,992
4,817
7,809

$

4Q09

841
452
655
450
354
2,752
5,024
7,776

$

YEAR-TO-DATE

3Q09

972
406
481
441
299
2,599
5,070
7,669

$

2Q10 Change
1Q10
2Q09

2Q09

1,046
408
873
416
321
3,064
5,154
8,218

$

1,003
425
807
411
294
2,940
5,030
7,970

(7) %
(4)
35
7
17
9
(4)
-

2010

(22) %
2
10
17
40
2
(4)
(2)

$

2010 Change
2009

2009

1,621
885
1,541
930
767
5,744
9,841
15,585

$

1,951
860
2,440
778
508
6,537
10,268
16,805

(17) %
3
(37)
20
51
(12)
(4)
(7)


1,715

3,733

4,229

3,988

3,846

(54)

(55)

5,448

7,723

(29)

NONINTEREST EXPENSE

1,842
2,369
70
4,281

1,770
2,402
70
4,242

1,722
2,499
81
4,302

1,728
2,385
83
4,196

1,631
2,365
83
4,079

4
(1)
1

13
(16)
5

3,612
4,771
140
8,523

3,262
4,822
166
8,250

11
(1)
(16)
3

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

1,813
771
1,042

34
27
7

45
30
15

NM
NM
NM

NM
NM
NM

1,614
703
911

832
343
489

$

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

(a)

(b)

15
55
54

$

375,329

$

%

(199)
(68)
(131)

$

(2) %
55
54

$

382,475

(862)
(463)
(399)

$

(6) %
56
55

$

387,269

-

$

%

-

51
50

$

397,673

$

%

7
55
54

51
50

$

$

375,329

$

%

4
49
48

$

94
105
86

%

399,916

(2)

(6)

399,916

(6)

330,329
12,599
342,928
359,974
28,000

339,002
11,296
350,298
362,470
28,000

340,332
14,612
354,944
357,463
25,000

346,765
14,303
361,068
361,046
25,000

353,934
13,192
367,126
371,241
25,000

(3)
12
(2)
(1)
-

(7)
(4)
(7)
(3)
12

330,329
12,599
342,928
359,974
28,000

353,934
13,192
367,126
371,241
25,000

(7)
(4)
(7)
(3)
12

381,906

393,867

395,045

401,620

410,228

(3)

(7)

387,854

416,813

(7)

335,308
14,426
349,734
362,010
28,000

342,997
17,055
360,052
356,934
28,000

343,411
17,670
361,081
356,464
25,000

349,762
19,025
368,787
366,944
25,000

359,372
19,043
378,415
377,259
25,000

(2)
(15)
(3)
1
-

(7)
(24)
(8)
(4)
12

339,131
15,734
354,865
359,486
28,000

363,127
17,792
380,919
373,788
25,000

(7)
(12)
(7)
(4)
12

116,879

112,616

108,971

106,951

103,733

4

13

116,879

103,733

13

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 $69 million, $70 million, $80 million, $83 million and $82 million for the quarters ended June 30, 2010,
March 31, 2010, December 31, 2009, September 30, 2009 and June 30, 2009, respectively, and $139 million and $165 million for year-to-date 2010 and 2009, respectively.
Loans at fair value consist of prime mortgages originated with the intent to sell that are accounted for at fair value and classified as trading assets on the Consolidated Balance Sheets. These loans totaled $12.2 billion, $8.4 billion, $12.5
billion, $12.8 billion and $11.3 billion at June 30, 2010, March 31, 2010, December 31, 2009, September 30, 2009 and June 30, 2009, respectively. Average balances of these loans totaled $12.5 billion, $14.2 billion, $16.0 billion, $17.7
billion and $16.2 billion for the quarters ended June 30, 2010, March 31, 2010, December 31, 2009, September 30, 2009 and June 30, 2009, respectively, and $13.3 billion and $14.9 billion for year-to-date 2010 and 2009, respectively.

Page 12



QUARTERLY TRENDS
2Q10
Net charge-offs
Nonperforming loans retained
Nonperforming loans held-for-sale and loans
at fair value
Total nonperforming loans (a) (b) (c)
Nonperforming assets (a) (b) (c)
Net charge-off rate (d)
Net charge-off rate excluding purchased credit-impaired
loans (d) (e)
Allowance for loan losses to ending loans retained (d)
Allowance for loan losses to ending loans retained
excluding purchased credit-impaired loans (d) (e)
Allowance for loan losses to nonperforming loans
retained (a) (d) (e)
Nonperforming loans to total loans
Nonperforming loans to total loans excluding purchased
credit-impaired loans (a)

(a)
(b)
(c)

(d)
(e)

$

1Q10

1,761

$

4Q09

2,438

$

YEAR-TO-DATE

3Q09

2,738

$

2Q10 Change
1Q10
2Q09

2Q09

2,550

$

2,649

(28) %

2010

(34) %

$

2010 Change
2009

2009

4,199

$

4,825

(13) %

10,457

10,769

10,611

10,091

8,792

(3)

19

10,457

8,792

19

176
10,633
11,907
16,152

217
10,986
12,191
16,200

234
10,845
12,098
14,776

242
10,333
11,883
13,286

203
8,995
10,554
11,832

(19)
(3)
(2)
-

(13)
18
13
37

176
10,633
11,907
16,152

203
8,995
10,554
11,832

(13)
18
13
37

2.11

%

2.88

%

3.16

%

2.89

%

2.96

%

2.50

%

2.68

2.75
4.89

3.76
4.78

4.16
4.34

3.81
3.83

3.89
3.34

3.26
4.89

3.53
3.34

5.26

5.16

5.09

4.63

4.41

5.26

4.41

128
3.10

124
3.14

124
3.06

121
2.86

135
2.45

128
3.10

135
2.45

4.00

4.05

3.96

3.72

3.19

4.00

%

3.19

Excludes purchased credit-impaired loans that were acquired as part of the Washington Mutual transaction. These loans are accounted for on a pool basis and the pools are considered to be performing.
Certain of these loans are classified as trading assets on the Consolidated Balance Sheets.
Nonperforming loans and assets exclude: (1) nonaccruing mortgage loans insured by U.S. government agencies of $10.1 billion, $10.5 billion, $9.0 billion, $7.0 billion and $4.2 billion at June 30, 2010, March 31, 2010, December 31, 2009,
September 30, 2009 and June 30, 2009, respectively; (2) real estate owned insured by U.S. government agencies of $1.4 billion, $707 million, $579 million, $579 million and $508 million at June 30, 2010, March 31, 2010, December 31, 2009,
September 30, 2009 and June 30, 2009, respectively; and (3) student loans that are 90 days past due and still accruing, which are insured by U.S. government agencies under the Federal Family Education Loan Program, of $447 million,
$581 million, $542 million, $511 million and $473 million at June 30, 2010, March 31, 2010, December 31, 2009, September 30, 2009 and June 30, 2009, respectively. These amounts are excluded as reimbursement 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 purchased credit-impaired 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 $2.8 billion, $2.8 billion, $1.6 billion and $1.1 billion was recorded for these loans at June 30, 2010, March 31, 2010, December 31, 2009 and
September 30, 2009, respectively, which has also been excluded from applicable ratios. No allowance for loan losses was recorded at June 30, 2009. To date, no charge-offs have been recorded for these loans.

Page 13


(in millions, except ratio data and where otherwise noted)

QUARTERLY TRENDS
2Q10
RETAIL BANKING
Noninterest revenue
Net interest income
Total net revenue
Noninterest expense
Net income

$

$

Overhead ratio
Overhead ratio excluding core deposit intangibles (a)
BUSINESS METRICS (in billions)
Business banking origination volume
End-of-period loans owned
End-of-period deposits:
Checking
Savings
Time and other
Total end-of-period deposits
Average loans owned
Average deposits:
Checking
Savings
Time and other
Total average deposits
Deposit margin
Average assets
Net charge-offs
Net charge-off rate
Nonperforming assets

1Q10

1,684
2,712
4,396
168
2,633
1,595
914
60
58

$

$

$
%

1.2
16.6

4Q09

1,702
2,635
4,337
191
2,577
1,569
898
59
58

$

$

$
%

0.9
16.8

3Q09

1,804
2,716
4,520
248
2,574
1,698
1,027
57
55

$

YEAR-TO-DATE

$

$
%

0.7
17.0

2Q09

1,844
2,732
4,576
208
2,646
1,722
1,043
58
56

$

2Q10 Change
1Q10
2Q09

$

$
%

0.5
17.4

1,803
2,719
4,522
361
2,557
1,604
970
57
55

$

(1) %
3
1
(12)
2
2
2

2010

(7) %
(3)
(53)
3
(1)
(6)

$

$

%

3,386
5,347
8,733
359
5,210
3,164
1,812
60
58

0.6
17.8

33
(1)

100
(7)

$

2010 Change
2009

2009
$

$
%

2.1
16.6

3,521
5,333
8,854
686
5,137
3,031
1,833
58
56

$

(4) %
(1)
(48)
1
4
(1)
%

1.1
17.8

91
(7)

123.5
161.8
50.5
335.8
16.7

123.8
163.4
53.2
340.4
16.9

121.9
153.4
58.0
333.3
17.2

115.5
151.6
66.6
333.7
17.7

114.1
150.4
78.9
343.4
18.0

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

8
8
(36)
(2)
(7)

123.5
161.8
50.5
335.8
16.8

114.1
150.4
78.9
343.4
18.2

8
8
(36)
(2)
(8)

$

114.0
151.2
74.4
339.6
2.99
28.1

$

114.2
151.2
82.7
348.1
2.92
29.1

(2)

(2)

$

121.7
160.7
53.5
335.9
3.03
28.7

$

111.8
149.6
85.6
347.0
2.89
29.6

9
7
(38)
(3)

$

116.4
153.1
60.3
329.8
3.06
28.2

8
8
(38)
(3)

$

119.7
158.6
55.6
333.9
3.02
28.9

3
3
(8)
1

$

123.6
162.8
51.4
337.8
3.05
28.4

168
4.04
920

$

248
5.72
839

$

208
4.66
816

$

211
4.70
686

(20)

$

191
4.58
872

(12)

$

6

34

$

359
4.31
920

$

386
4.28
686

%

%

%

%

%

%

%

%

%

%

%

%

%
(3)

(7)
%
34

RETAIL BRANCH BUSINESS METRICS
Investment sales volume

5,756

5,956

5,851

6,243

5,292

(3)

9

11,712

9,690

21

Number of:
Branches
ATMs
Personal bankers
Sales specialists
Active online customers (in thousands)
Checking accounts (in thousands)

5,159
15,654
20,170
6,785
16,584
26,351

5,155
15,549
19,003
6,315
16,208
25,830

5,154
15,406
17,991
5,912
15,424
25,712

5,126
15,038
16,941
5,530
13,852
25,546

5,203
14,144
15,959
5,485
13,930
25,252

1
6
7
2
2

(1)
11
26
24
19
4

5,159
15,654
20,170
6,785
16,584
26,351

5,203
14,144
15,959
5,485
13,930
25,252

(1)
11
26
24
19
4

(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 $69 million, $70 million, $80 million, $83 million and $82 million for the quarters ended June 30, 2010, March 31, 2010, December 31, 2009,
September 30, 2009 and June 30, 2009, respectively, and $139 million and $165 million for year-to-date 2010 and 2009, respectively.

Page 14



QUARTERLY TRENDS
2Q10
MORTGAGE BANKING & OTHER CONSUMER LENDING
Noninterest revenue (a)
Net interest income
Total net revenue
Noninterest expense
Net income (a)

$

$

Overhead ratio
End-of-period loans owned:
Auto loans
Mortgage (b)
Student loans and other
Total end-of-period loans owned
Average loans owned:
Auto loans
Mortgage (b)
Total average loans owned (c)

1Q10

1,256
792
2,048
175
1,243
630
364
61

$

$

$
%

47.5
13.2
15.1
75.8

4Q09

1,018
893
1,911
217
1,246
448
257
65

$

$

$
%

47.4
13.7
17.4
78.5

3Q09

801
802
1,603
242
1,163
198
266
73

$

YEAR-TO-DATE

$

$
%

46.0
11.9
15.8
73.7

2Q09

1,201
834
2,035
222
1,139
674
412
56

$

2Q10 Change
1Q10
2Q09

$

$
%

44.3
10.1
15.6
70.0

1,134
721
1,855
366
1,105
384
235
60

$

23 %
(11)
7
(19)
41
42

2010

11 %
10
10
(52)
12
64
55

$

$

%

2,274
1,685
3,959
392
2,489
1,078
621
63

42.9
8.9
15.7
67.5

(4)
(13)
(3)

11
48
(4)
12

$

2010 Change
2009

2009
$

$
%

47.5
13.2
15.1
75.8

3,055
1,529
4,584
771
2,242
1,571
965
49

$

(26) %
10
(14)
(49)
11
(31)
(36)
%

42.9
8.9
15.7
67.5

11
48
(4)
12

47.5
13.6
16.7
77.8

46.9
12.5
18.4
77.8

45.3
10.6
15.6
71.5

43.3
8.9
15.3
67.5

43.1
8.4
16.8
68.3

1
9
(9)
-

10
62
(1)
14

47.2
13.0
17.6
77.8

42.8
8.0
17.2
68.0

10
63
2
14

Net charge-offs:
Auto loans
Mortgage
Total net charge-offs

58
13
150
221

102
6
64
172

148
92
240

159
7
60
226

146
2
101
249

(43)
117
134
28

(60)
NM
49
(11)

160
19
214
393

320
7
135
462

(50)
171
59
(15)

Net charge-off rate:
Auto loans
Mortgage
Total net charge-off rate (c)

0.49
0.39
4.04
1.17

30+ day delinquency rate (d) (e)
Nonperforming assets (f)

(a)

(b)
(c)
(d)
(e)
(f)

$

1.42
866

%

0.88
0.20
1.64
0.93

$

1.47
1,006

%

1.30
2.59
1.36

$

1.75
912

%

1.46
0.32
1.66
1.35

$

1.76
872

%

1.36
0.10
2.79
1.52

$

1.80
783

%

0.68
0.30
2.84
1.05

(14)

11

$

1.42
866

%

1.51
0.19
1.84
1.43

$

%

1.80
783

11

Losses related to the repurchase of previously-sold loans are recorded as a reduction of production revenue. These losses totaled $667 million, $432 million, $672 million, $465 million and $255 million for the quarters ended June 30, 2010,
March 31, 2010, December 31, 2009, September 30, 2009 and June 30, 2009, respectively, and $1.1 billion and $475 million for year-to-date 2010 and 2009, respectively. The losses resulted in a negative impact on net income of $388 million,
$252 million, $413 million, $286 million and $157 million for the quarters ended June 30, 2010, March 31, 2010, December 31, 2009, September 30, 2009 and June 30, 2009, respectively, and $640 million and $292 million for year-to-date 2010
and 2009, respectively.
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 $1.9 billion, $2.9 billion, $1.7 billion, $1.3 billion and $2.8 billion for the quarters ended June 30, 2010, March 31, 2010, December 31, 2009, September 30, 2009 and June 30, 2009,
respectively, and $2.6 billion and $2.9 billion for year-to-date 2010 and 2009, respectively. These amounts are excluded when calculating the net charge-off rate.
Excludes mortgage loans that are insured by U.S. government agencies of $10.9 billion, $11.2 billion, $9.7 billion, $7.7 billion and $5.1 billion at June 30, 2010, March 31, 2010, December 31, 2009, September 30, 2009 and June 30, 2009,
respectively. These amounts are excluded as reimbursement is proceeding normally.
Excludes loans that are 30 days past due and still accruing, which are insured by U.S. government agencies under the Federal Family Education Loan Program, of $988 million, $965 million, $942 million, $903 million and $854 million at June
30, 2010, March 31, 2010, December 31, 2009, September 30, 2009 and June 30, 2009, respectively. These amounts are excluded as reimbursement is proceeding normally.
Nonperforming loans and assets exclude: (1) nonaccruing mortgage loans insured by U.S. government agencies of $10.1 billion, $10.5 billion, $9.0 billion, $7.0 billion and $4.2 billion at June 30, 2010, March 31, 2010, December 31, 2009,
September 30, 2009 and June 30, 2009, respectively; (2) real estate owned insured by U.S. government agencies of $1.4 billion, $707 million, $579 million, $579 million and $508 million at June 30, 2010, March 31, 2010, December 31, 2009,
September 30, 2009 and June 30, 2009, respectively; and (3) student loans that are 90 days past due and still accruing, which are insured by U.S. government agencies under the Federal Family Education Loan Program, of $447 million, $581
million, $542 million, $511 million and $473 million at June 30, 2010, March 31, 2010, December 31, 2009, September 30, 2009 and June 30, 2009, respectively. These amounts are excluded as reimbursement is proceeding normally.

Page 15


(in billions, except ratio data and where otherwise noted)

QUARTERLY TRENDS
2Q10
MORTGAGE BANKING & OTHER CONSUMER
LENDING (continued)
Origination volume:
Mortgage origination volume by channel
Retail
Wholesale (a)
Correspondent (a)
CNT (negotiated transactions)
Total mortgage origination volume
Student loans
Auto

$

Application volume:
Mortgage application volume by channel
Retail
Wholesale (a)
Correspondent (a)
Total mortgage application volume

Ratio of annualized loan servicing revenue to third-party
mortgage loans serviced (average)
MSR revenue multiple (c)

(a)
(b)
(c)

15.3
0.4
14.7
1.8
32.2
0.1
5.8

$

4Q09

11.4
0.4
16.0
3.9
31.7
1.6
6.3

$

3Q09

12.3
0.6
20.0
1.9
34.8
0.6
5.9

$

2Q09

13.3
0.7
21.1
2.0
37.1
1.5
6.9

$

2010

14.7
0.7
21.9
3.8
41.1
0.4
5.3

34 %
(8)
(54)
2
(94)
(8)

4 %
(43)
(33)
(53)
(22)
(75)
9

$

2010 Change
2009

2009

26.7
0.8
30.7
5.7
63.9
1.7
12.1

$

28.3
2.3
39.9
8.3
78.8
2.1
10.9

(6) %
(65)
(23)
(31)
(19)
(19)
11

27.8
0.6
23.5
51.9

20.3
0.8
18.2
39.3

17.4
0.7
25.3
43.4

17.8
1.1
26.6
45.5

23.0
1.3
29.7
54.0

37
(25)
29
32

21
(54)
(21)
(4)

48.1
1.4
41.7
91.2

55.7
3.1
58.9
117.7

(14)
(55)
(29)
(23)

12.6
123.2
1,055.2
1,063.7
11.8

Average mortgage loans held-for-sale and loans
at fair value (b)
Average assets
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)
SUPPLEMENTAL MORTGAGE FEES AND
RELATED INCOME DETAILS (in millions)
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

1Q10

YEAR-TO-DATE
2Q10 Change
1Q10
2Q09

14.5
124.8
1,075.0
1,076.4
15.5

16.2
119.5
1,082.1
1,088.8
15.5

18.0
115.2
1,098.9
1,104.4
13.6

16.7
111.6
1,117.5
1,128.1
14.6

(13)
(1)
(2)
(1)
(24)

(25)
10
(6)
(6)
(19)

13.5
124.0
1,055.2
1,070.1
11.8

15.3
112.5
1,117.5
1,141.6
14.6

(12)
10
(6)
(6)
(19)

1.12

$

%

9

1.44

$

%

1

1.43

$

%

(192)

1.24

$

%

(70)

1.31

$

%

1.12

284

NM

(97)

$

%

10

1.31

$

%

765

(99)

1,186
(620)
566

$

1,107
(605)
502

1,221
(657)
564

1,220
(712)
508

1,279
(837)
442

7
(2)
13

(7)
26
28

2,293
(1,225)
1,068

2,501
(1,910)
591

(8)
36
81

(3,584)
3,895
311
877
886

(96)
248
152
654
655

1,762
(1,653)
109
673
481

(1,099)
1,534
435
943
873

3,831
(3,750)
81
523
807

NM
NM
105
34
35

NM
NM
284
68
10

(3,680)
4,143
463
1,531
1,541

5,141
(4,057)
1,084
1,675
2,440

NM
NM
(57)
(9)
(37)

0.45
2.49x

$

%

0.42
3.43x

$

%

0.44
3.25x

$

%

0.44
2.82x

$

%

0.45
2.91x

%

$

0.43
2.60x

$

%

0.44
2.98x

%

Includes rural housing loans sourced through brokers and correspondents, which are underwritten under U.S. Department of Agriculture guidelines. Prior period amounts have been revised to conform with the current period presentation.
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 $12.5
billion, $14.2 billion, $16.0 billion, $17.7 billion and $16.2 billion for the quarters ended June 30, 2010, March 31, 2010, December 31, 2009, September 30, 2009 and June 30, 2009, respectively, and $13.3 billion and $14.9 billion for
year-to-date 2010 and 2009, 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 16



QUARTERLY TRENDS
2Q10
REAL ESTATE PORTFOLIOS
Noninterest revenue
Net interest income
Total net revenue
Noninterest expense
Income/(loss) before income tax expense/(benefit)
Net income/(loss)

$

$

Overhead ratio
LOANS EXCLUDING PURCHASED CREDIT-IMPAIRED
LOANS (a)
Home equity
Prime mortgage
Subprime mortgage
Option ARMs
Other
Home equity
Prime mortgage
Subprime mortgage
Option ARMs
Other
Total average loans owned
PURCHASED CREDIT-IMPAIRED LOANS (a)
Home equity
Prime mortgage
Subprime mortgage
Option ARMs
Home equity
Prime mortgage
Subprime mortgage
Option ARMs
TOTAL REAL ESTATE PORTFOLIOS
Home equity
Prime mortgage
Subprime mortgage
Option ARMs
Other
Home equity
Prime mortgage
Subprime mortgage
Option ARMs
Other
Average assets
Home equity origination volume

(a)

1Q10

52
1,313
1,365
1,372
405
(412)
(236)
30

$

94.8
44.6
12.6
8.5
1.0
161.5

$

$
%

4Q09

32
1,496
1,528
3,325
419
(2,216)
(1,286)
27

$

97.7
46.8
13.2
8.6
1.0
167.3

$

$
%

3Q09

(6)
1,552
1,546
3,739
565
(2,758)
(1,692)
37

$

YEAR-TO-DATE

101.4
47.5
12.5
8.5
0.7
170.6

$

$
%

2Q09

19
1,588
1,607
3,558
411
(2,362)
(1,448)
26

$

2Q10 Change
1Q10
2Q09

104.8
50.0
13.3
8.9
0.7
177.7

$

$
%

3
1,590
1,593
3,119
417
(1,943)
(1,190)
26

$

63 %
(12)
(11)
(59)
(3)
81
82

NM %
(17)
(14)
(56)
(3)
79
80

2010
$

$

%

84
2,809
2,893
4,697
824
(2,628)
(1,522)
28

108.2
53.2
13.8
9.0
0.9
185.1

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

(12)
(16)
(9)
(6)
11
(13)

$

2010 Change
2009

2009

94.8
44.6
12.6
8.5
1.0
161.5

$

$
%

(39)
3,406
3,367
6,266
871
(3,770)
(2,309)
26

$

NM %
(18)
(14)
(25)
(5)
30
34
%

108.2
53.2
13.8
9.0
0.9
185.1

(12)
(16)
(9)
(6)
11
(13)

96.3
45.7
13.1
8.6
1.0
164.7

99.5
47.9
13.8
8.7
1.1
171.0

103.3
48.8
12.8
8.7
0.7
174.3

106.6
51.7
13.6
8.9
0.8
181.6

110.1
54.9
14.3
9.1
0.9
189.3

(3)
(5)
(5)
(1)
(9)
(4)

(13)
(17)
(8)
(5)
11
(13)

97.9
46.8
13.4
8.7
1.0
167.8

111.7
56.4
14.6
9.0
0.9
192.6

(12)
(17)
(8)
(3)
11
(13)

25.5
18.5
5.6
27.3
76.9

26.0
19.2
5.8
28.3
79.3

26.5
19.7
6.0
29.0
81.2

27.1
20.2
6.1
29.8
83.2

27.7
20.8
6.4
30.5
85.4

(2)
(4)
(3)
(4)
(3)

(8)
(11)
(13)
(10)
(10)

25.5
18.5
5.6
27.3
76.9

27.7
20.8
6.4
30.5
85.4

(8)
(11)
(13)
(10)
(10)

25.7
18.8
5.8
27.7
78.0

26.2
19.5
5.9
28.6
80.2

26.7
20.0
6.1
29.3
82.1

27.4
20.5
6.2
30.2
84.3

28.0
21.0
6.5
31.0
86.5

(2)
(4)
(2)
(3)
(3)

(8)
(10)
(11)
(11)
(10)

26.0
19.1
5.8
28.2
79.1

28.2
21.3
6.6
31.2
87.3

(8)
(10)
(12)
(10)
(9)

120.3
63.1
18.2
35.8
1.0
238.4

123.7
66.0
19.0
36.9
1.0
246.6

127.9
67.2
18.5
37.5
0.7
251.8

131.9
70.2
19.4
38.7
0.7
260.9

135.9
74.0
20.2
39.5
0.9
270.5

(3)
(4)
(4)
(3)
(3)

(11)
(15)
(10)
(9)
11
(12)

120.3
63.1
18.2
35.8
1.0
238.4

135.9
74.0
20.2
39.5
0.9
270.5

(11)
(15)
(10)
(9)
11
(12)

122.0
64.5
18.9
36.3
1.0
242.7
230.3
0.3

125.7
67.4
19.7
37.3
1.1
251.2
240.2
0.3

130.0
68.8
18.9
38.0
0.7
256.4
247.3
0.4

134.0
72.2
19.8
39.1
0.8
265.9
258.3
0.5

138.1
75.9
20.8
40.1
0.9
275.8
269.5
0.6

(3)
(4)
(4)
(3)
(9)
(3)
(4)
-

(12)
(15)
(9)
(9)
11
(12)
(15)
(50)

123.9
65.9
19.2
36.9
1.0
246.9
235.2
0.6

139.9
77.7
21.2
40.2
0.9
279.9
274.7
1.5

(11)
(15)
(9)
(8)
11
(12)
(14)
(60)

Purchased credit-impaired loans represent loans acquired in the Washington Mutual transaction for which a deterioration in credit quality occurred between the origination date and JPMorgan Chase’s acquisition date. 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 17



QUARTERLY TRENDS
2Q10
REAL ESTATE PORTFOLIOS (continued)
Net charge-offs excluding purchased credit-impaired
loans (a)
Home equity
Prime mortgage
Subprime mortgage
Option ARMs
Other
Total net charge-offs
Net charge-off rate excluding purchased credit-impaired
loans (a)
Home equity
Prime mortgage
Subprime mortgage
Option ARMs
Other
Total net charge-off rate excluding purchased
credit-impaired loans
Net charge-off rate - reported
Home equity
Prime mortgage
Subprime mortgage
Option ARMs
Other
Total net charge-off rate - reported
30+ day delinquency rate excluding purchased
credit-impaired loans (b)
Nonperforming assets (c)
excluding purchased credit-impaired loans (a)

(a)
(b)
(c)

$

1Q10

796
251
282
22
21
1,372

3.32
2.20
8.63
1.03
8.42

$

%

4Q09

1,126
453
457
23
16
2,075

4.59
3.84
13.43
1.07
5.90

$

%

3Q09

1,177
568
452
29
24
2,250

4.52
4.62
14.01
1.32
13.60

YEAR-TO-DATE

$

%

2Q09

1,142
518
422
15
19
2,116

4.25
3.98
12.31
0.67
9.42

2Q10 Change
1Q10
2Q09

$

%

1,265
479
410
15
20
2,189

4.61
3.50
11.50
0.66
8.91

(29) %
(45)
(38)
(4)
31
(34)

2010

(37) %
(48)
(31)
47
5
(37)

$

%

1,922
704
739
45
37
3,447

3.96
3.03
11.12
1.04
7.46

$

%

2,363
786
774
19
35
3,977

4.27
2.81
10.69
0.43
7.84

3.34

4.92

5.12

4.62

4.64

4.14

3.63
2.73
9.41
0.25
5.90
3.35

3.59
3.28
9.49
0.30
13.60
3.48

3.38
2.85
8.46
0.15
9.42
3.16

3.67
2.53
7.91
0.15
8.91
3.18

3.13
2.15
7.76
0.25
7.46
2.82

(19) %
(10)
(5)
137
6
(13)

%

4.16

2.62
1.56
5.98
0.24
8.42
2.27

$

2010 Change
2009

2009

3.41
2.04
7.36
0.10
7.84
2.87

6.88
14,127
10,121
5.93
7.01

$
%

7.28
14,127
10,313
5.73
6.76

$
%

7.73
12,752
10,347
5.06
6.55

$
%

7.46
11,261
10,196
4.32
5.72

$
%

6.46
9,821
9,085
3.63
5.31

(2)
%

44
11

$

6.88
14,127
10,121
5.93
7.01

$
%

6.46
9,821
9,085
3.63

44
11
%

5.31

Excludes the impact of purchased credit-impaired 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 $2.8 billion, $2.8 billion, $1.6 billion and $1.1 billion was recorded for these loans at June 30, 2010, March 31, 2010, December 31, 2009
and September 30, 2009, respectively, which has also been excluded from the applicable ratios. No allowance for loan losses was recorded at June 30, 2009. To date, no charge-offs have been recorded for these loans.
The delinquency rate for purchased credit-impaired loans was 27.91%, 28.49%, 27.79%, 25.56% and 23.37% at June 30, 2010, March 31, 2010, December 31, 2009, September 30, 2009 and June 30, 2009, respectively.
Excludes purchased credit-impaired loans that were acquired as part of the Washington Mutual transaction. These loans are accounted for on a pool basis, and the pools are considered to be performing.

Page 18


CARD SERVICES - MANAGED BASIS

QUARTERLY TRENDS
2Q10
INCOME STATEMENT (a)
REVENUE
Credit card income
All other income
Noninterest revenue
Net interest income
TOTAL NET REVENUE

$

1Q10

908
(47)
861
3,356
4,217

$

4Q09

813
(55)
758
3,689
4,447

$

YEAR-TO-DATE

3Q09

931
(46)
885
4,263
5,148

$

916
(85)
831
4,328
5,159

2Q09

$

921
(364)
557
4,311
4,868

2Q10 Change
1Q10
2Q09

12 %
15
14
(9)
(5)

2010

(1) %
87
55
(22)
(13)

$

2010 Change
2009

2009

1,721
(102)
1,619
7,045
8,664

$

1,765
(561)
1,204
8,793
9,997

(2) %
82
34
(20)
(13)


2,221

3,512

4,239

4,967

4,603

(37)

(52)

5,733

9,256

(38)

NONINTEREST EXPENSE

327
986
123
1,436

330
949
123
1,402

336
938
122
1,396

354
829
123
1,306

329
873
131
1,333

(1)
4
2

(1)
13
(6)
8

657
1,935
246
2,838

686
1,723
270
2,679

(4)
12
(9)
6

$

(1,068)
(396)
(672)

NM
NM
NM

NM
NM
NM

93
53
40

$

(1,938)
(719)
(1,219)

NM
NM
NM

$

(268)

NM

NM

N/A

$

(448)

NM

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

$

Memo: Net securitization income/(loss)

Merchant acquiring business
Bank card volume (in billions)
Total transactions (in billions)

(a)
(b)
(c)

9
34

%

(467)
(164)
(303)
N/A

$

N/A

FINANCIAL RATIOS (a)
ROE
Overhead ratio
Percentage of average outstandings:
Net interest income
Noninterest revenue
Risk adjusted margin (b)
Noninterest expense
Pretax income/(loss) (ROO) (c)
Net income/(loss)
BUSINESS METRICS
Sales volume (in billions)
New accounts opened (in millions)
Open accounts (in millions)

560
217
343

$

(487)
(181)
(306)

$

(1,114)
(414)
(700)

$

17

$

(43)

(8) %
32

9.20
6.09
2.36
5.47
3.94
1.54
0.94

(8) %
27

9.60
9.14
1.97
2.43
3.65
(1.22)
(0.79)

(19) %
25

10.36
10.30
2.15
2.21
3.39
(1.18)
(0.74)

$

(18) %
27

10.15
11.65
1.95
0.45
3.06
(2.61)
(1.64)

1
33

9.93
10.60
1.28
0.61
3.07
(2.46)
(1.55)

%

(16) %
27

9.41
7.66
2.16
3.91
3.79
0.12
0.05

9.92
10.44
1.36
0.84
3.02
(2.19)
(1.38)

$

78.1
2.7
88.9

$

69.4
2.5
88.9

$

78.8
3.2
93.3

$

74.7
2.4
93.6

$

74.0
2.4
100.3

13
8
-

6
13
(11)

$

147.5
5.2
88.9

$

140.6
4.6
100.3

5
13
(11)

$

117.1
5.0

$

108.0
4.7

$

110.4
4.9

$

103.5
4.5

$

101.4
4.5

8
6

15
11

$

225.1
9.7

$

195.8
8.6

15
13

Effective January 1, 2010, the Firm adopted new accounting guidance that amended the accounting for the transfer of financial assets and the consolidation of VIEs. For further details regarding the Firm’s application and impact of the new
guidance, see footnote (a) on page 3.
Represents total net revenue less provision for credit losses.
Pretax return on average managed outstandings.

Page 19


CARD SERVICES - MANAGED BASIS

QUARTERLY TRENDS
2Q10
Loans:
Loans on balance sheets
Securitized loans (a)
Total loans

$

Equity

1Q10

142,994
N/A
142,994

$

4Q09

149,260
N/A
149,260

$

YEAR-TO-DATE

3Q09

78,786
84,626
163,412

$

2Q10 Change
1Q10
2Q09

2Q09

78,215
87,028
165,243

$

2010

85,736
85,790
171,526

(4) %
NM
(4)

67 %
NM
(17)

$

2010 Change
2009

2009

142,994
N/A
142,994

$

85,736
85,790
171,526

67 %
NM
(17)

15,000

15,000

15,000

15,000

15,000

-

-

15,000

15,000

-

146,816

156,968

184,535

192,141

193,310

(6)

(24)

151,864

197,234

(23)

146,302
N/A
146,302

155,790
N/A
155,790

77,759
85,452
163,211

83,146
86,017
169,163

89,692
84,417
174,109

(6)
NM
(6)

63
NM
(16)

151,020
N/A
151,020

93,715
85,015
178,730

61
NM
(16)

Equity

15,000

15,000

15,000

15,000

15,000

-

-

15,000

15,000

-

Headcount

21,529

22,478

22,676

22,850

22,897

(4)

(6)

21,529

22,897

(6)

(18)

(15)

Managed assets
Loans:
Loans on balance sheets
Securitized loans (a)
Total average loans

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

$

Delinquency rates
30+ day (b)
90+ day (b)
Allowance for loan losses (c)
Allowance for loan losses to period-end loans (c) (d)
KEY STATS - WASHINGTON MUTUAL ONLY
Loans
Average loans
Net interest income (e)
Risk adjusted margin (e) (f)
Net charge-off rate (g)
30+ day delinquency rate (g)
90+ day delinquency rate (g)
KEY STATS - EXCLUDING WASHINGTON MUTUAL
Loans
Average loans
Net interest income (e)
Risk adjusted margin (e) (f)
Net charge-off rate
30+ day delinquency rate
90+ day delinquency rate

(a)
(b)
(c)
(d)
(e)
(f)
(g)

3,721
10.20
4.96
2.76

$

$

$

14,524
10.16
15,615
16,455
14.97
15.43
19.53
8.86
5.17

127,379
129,847
8.47
4.21
9.02
4.48
2.47

$
%
%

5.62
3.15
$

%
$
%

$
%

4,512
11.75

16,032
10.74
17,204
18,607
15.06
2.47
24.14
10.49
6.32

132,056
137,183
8.86
2.43
10.54
4.99
2.74

$
%
%

6.28
3.59
$

%
$
%

$
%

3,839
9.33

9,672
12.28

$
%
%

5.99
2.76
$

%

19,653
$
20,377
17.12 %
(0.66)
20.49
12.72
7.76

143,759
142,834
9.40
2.62
8.64
5.52
3.13

$
%

4,392
10.30

9,297
11.89

$
%
%

5.86
3.25
$

%

21,163
$
22,287
17.04 %
(4.45)
21.94
12.44
6.21

144,080
146,876
9.10
1.19
9.41
5.38
2.48

$
%

4,353
10.03

8,839
10.31

%
(9)

(9)
(12)

(4)
(5)
%

8,233
10.99
4.96
2.76

64

$

%

23,093
24,418
17.90 %
(3.89)
19.17
11.98
6.85

148,433
149,691
8.63
1.34
8.97
5.27
2.90

$

%

(32)
(33)

(14)
(13)

$

$

14,524
10.16
15,615
17,525
15.02
8.59
21.97
8.86
5.17

127,379
133,495
8.67
3.30
9.80
4.48
2.47

$
%
%

5.86
3.25
$

%
$
%

$
%

7,846
8.85

8,839
10.31
23,093
25,990
17.14
0.49
16.75
11.98
6.85

148,433
152,740
8.69
0.89
7.90
5.27
2.90

5
%
%
64
%
(32)
(33)
%

(14)
(13)
%

Effective January 1, 2010, the Firm adopted new accounting guidance that amended the accounting for the transfer of financial assets and the consolidation of VIEs. As a result of the consolidation of the credit card securitization trusts, reported
and managed basis relating to credit card securitizations are equivalent for periods beginning after January 1, 2010. For further details regarding the Firm’s application and impact of the new guidance, see footnote (a) on page 3.
Results reflect the impact of purchase accounting adjustments related to the Washington Mutual transaction and the consolidation of the Washington Mutual Master Trust. Net charge-off rate is not impacted in the quarter ended June 30, 2010.
Delinquency rates for June 30, 2010 and March 31, 2010 are not impacted.
Based on loans on the Consolidated Balance Sheets.
Includes $1.0 billion, $3.0 billion and $5.0 billion of loans at December 31, 2009, September 30, 2009 and June 30, 2009, respectively, held by the Washington Mutual Master Trust, which were consolidated onto the Card Services balance sheet
at fair value during the second quarter of 2009. No allowance for loan losses was recorded for these loans as of December 31, 2009, September 30, 2009 and June 30, 2009. Excluding these loans, the allowance for loan losses to period-end
loans would have been 12.43%, 12.36% and 10.95%, respectively.
As a percentage of average managed outstandings.
Represents total net revenue less provision for credit losses.
Excludes the impact of purchase accounting adjustments related to the Washington Mutual transaction and the consolidation of the Washington Mutual Master Trust. Net charge-off rate is not impacted in the quarter ended June 30, 2010.
Delinquency rates for June 30, 2010 and March 31, 2010 are not impacted.

Page 20


CARD RECONCILIATION OF REPORTED AND MANAGED DATA

QUARTERLY TRENDS
2Q10
INCOME STATEMENT DATA
Credit card income
Reported
Securitization adjustments (a)
Managed credit card income
Net interest income
Reported
Managed net interest income
Total net revenue
Reported
Managed total net revenue
Reported
Managed provision for credit losses

$
$

$
$

$
$

$
$

BALANCE SHEETS - AVERAGE BALANCES
Total average assets
Reported
Managed average assets

$

CREDIT QUALITY STATISTICS
Net charge-offs
Reported
Managed net charge-offs

$

Net charge-off rates
Reported
Securitized (a)
Managed net charge-off rate

(a)

$

$

1Q10

908
N/A
908

$

3,356
N/A
3,356

$

4,217
N/A
4,217

$

2,221
N/A
2,221

$

146,816
N/A
146,816

$

3,721
N/A
3,721

$

10.20
N/A
10.20

$

$

$

$

$

$

%

4Q09

813
N/A
813

$

3,689
N/A
3,689

$

4,447
N/A
4,447

$

3,512
N/A
3,512

$

156,968
N/A
156,968

$

4,512
N/A
4,512

$

11.75
N/A
11.75

$

$

$

$

$

$

%

3Q09

1,306
(375)
931

$

2,271
1,992
4,263

$

3,531
1,617
5,148

$

2,622
1,617
4,239

$

102,748
81,787
184,535

$

2,222
1,617
3,839

$

11.34
7.51
9.33

YEAR-TO-DATE

$

$

$

$

$

$

%

2Q09

1,201
(285)
916

$

2,345
1,983
4,328

$

3,461
1,698
5,159

$

3,269
1,698
4,967

$

109,362
82,779
192,141

$

2,694
1,698
4,392

$

12.85
7.83
10.30

2Q10 Change
1Q10
2Q09

$

$

$

$

$

$

%

2010

1,215
(294)
921

12 %
NM
12

(25) %
NM
(1)

$

2,353
1,958
4,311

(9)
NM
(9)

43
NM
(22)

$

3,204
1,664
4,868

(5)
NM
(5)

32
NM
(13)

$

2,939
1,664
4,603

(37)
NM
(37)

(24)
NM
(52)

$

111,722
81,588
193,310

(6)
NM
(6)

31
NM
(24)

$

2,689
1,664
4,353

(18)
NM
(18)

38
NM
(15)

$

12.03
7.91
10.03

%

$

$

$

$

$

$

1,721
N/A
1,721

$

7,045
N/A
7,045

$

8,664
N/A
8,664

$

5,733
N/A
5,733

$

151,864
N/A
151,864

$

8,233
N/A
8,233

$

10.99
N/A
10.99

2010 Change
2009

2009

$

$

$

$

$

$

%

2,599
(834)
1,765

(34) %
NM
(2)

4,831
3,962
8,793

46
NM
(20)

6,869
3,128
9,997

26
NM
(13)

6,128
3,128
9,256

(6)
NM
(38)

115,052
82,182
197,234

32
NM
(23)

4,718
3,128
7,846

75
NM
5

10.15
7.42
8.85

%

Effective January 1, 2010, the Firm adopted new accounting guidance that amended the accounting for the transfer of financial assets and the consolidation of VIEs. As a result of the consolidation of the credit card securitization trusts,
reported and managed basis relating to credit card securitizations are equivalent for periods beginning after January 1, 2010. For further details regarding the Firm’s application and impact of the new guidance, see footnote (a) on page 3.

Page 21


COMMERCIAL BANKING

QUARTERLY TRENDS
2Q10
INCOME STATEMENT
REVENUE
All other income (a)
Noninterest revenue
Net interest income
TOTAL NET REVENUE (b)

$


1Q10

280
36
230
546
940
1,486

$

4Q09

277
37
186
500
916
1,416

$

YEAR-TO-DATE

3Q09

279
35
149
463
943
1,406

$

2Q10 Change
1Q10
2Q09

2Q09

269
35
170
474
985
1,459

$

270
36
152
458
995
1,453

2010

1 %
(3)
24
9
3
5

4 %
51
19
(6)
2

(235)

214

494

355

312

NM

NM

NONINTEREST EXPENSE

196
337
9
542

206
324
9
539

183
351
9
543

196
339
10
545

197
327
11
535

(5)
4
1

(1)
3
(18)
1

Income tax expense
NET INCOME

1,179
486
693

663
273
390

369
145
224

559
218
341

606
238
368

78
78
78

95
104
88

(1)
4
10
280
5

$

Revenue by product:
Lending
Treasury services
Investment banking
Other
Total Commercial Banking revenue

IB revenue, gross (c)
Revenue by client segment:
Middle Market Banking
Commercial Term Lending
Mid-Corporate Banking
Real Estate Banking
Other
Total Commercial Banking revenue
FINANCIAL RATIOS
ROE
Overhead ratio

(a)
(b)
(c)

$

$

$

$

$

649
665
115
57
1,486

$

$

$

$

$

$

658
638
105
15
1,416

333

$

767
237
285
125
72
1,486

$

35
36

$

%

$

$

$

639
645
108
14
1,406

311

$

746
229
263
100
78
1,416

$

20
38

$

%

$

$

$

675
672
99
13
1,459

$

684
679
114
(24)
1,453

328

$

301

$

328

760
191
277
100
78
1,406

$

771
232
278
121
57
1,459

$

772
224
305
120
32
1,453

11
39

$

%

17
37

$

%

18
37

7

3
3
8
25
(8)
5

%

557
73
416
1,046
1,856
2,902

$

(21)

533
70
277
880
1,975
2,855

5 %
4
50
19
(6)
2

$

$

2

605

NM

402
661
18
1,081

(5)
(2)
1
NM
2

(1)
6
(7)
4
125
2

2010 Change
2009

2009

397
669
22
1,088

1
(1)
(18)
(1)

1,842
759
1,083

1,162
456
706

59
66
53

(3)
(2)
18
NM
2

21

$

$

$

1,307
1,303
220
72
2,902

$

1,349
1,325
187
(6)
2,855

$

644

$

534

$

1,513
466
548
225
150
2,902

$

1,524
452
547
240
92
2,855

$

27
37

$

%

18
38

(1)
3
(6)
63
2

%

Revenue from investment banking products sold to Commercial Banking ("CB") clients and commercial card revenue 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 taxexempt income from municipal bond activity of $49 million, $45 million, $53 million, $43 million and $39 million for quarters ended June 30, 2010, March 31, 2010, December 31, 2009, September 30, 2009 and June 30, 2009, respectively,
and $94 million and $74 million for year-to-date 2010 and 2009, respectively.
Represents the total revenue related to investment banking products sold to CB clients.

Page 22


COMMERCIAL BANKING
(in millions, except ratio and headcount data)

QUARTERLY TRENDS
2Q10
Loans:
Loans retained
Loans held-for-sale and loans at fair value
Total loans
Equity
Total assets
Loans:
Loans retained
Loans held-for-sale and loans at fair value
Total loans
Liability balances (a)
Equity
Average loans by client segment:
Middle Market Banking
Commercial Term Lending
Mid-Corporate Banking
Real Estate Banking
Other
Total Commercial Banking loans

Net charge-off rate
Allowance for loan losses to period-end loans retained
Allowance for loan losses to average loans retained
Allowance for loan losses to nonperforming loans retained
Nonperforming loans to total period-end loans
Nonperforming loans to total average loans

(a)
(b)

4Q09

3Q09

2Q09

2010

$

95,090
446
95,536
8,000

$

95,435
294
95,729
8,000

$

97,108
324
97,432
8,000

$

101,608
288
101,896
8,000

$

105,556
296
105,852
8,000

- %
52
-

$

133,309

$

133,013

$

129,948

$

130,316

$

137,283

-

(3)

108,750
288
109,038
105,829
8,000

(1)
32
(1)
3
-

(12)
36
(12)
29
-

38,193
36,963
17,012
12,347
4,523
109,038

1
(3)
(6)
(3)
(1)

(10)
(3)
(30)
(21)
(15)
(12)

2

14

181

(23)

(3)

95,521
391
95,912
136,770
8,000

$

$

Headcount
Net charge-offs
Nonperforming loans retained (b)
Nonperforming loans held-for-sale and loans at fair value
Total nonperforming loans
Nonperforming assets

1Q10

YEAR-TO-DATE
2Q10 Change
1Q10
2Q09

96,317
297
96,614
133,142
8,000

34,424
35,956
11,875
9,814
3,843
95,912

$

$

4,808

$

99,794
386
100,180
122,471
8,000

33,919
36,057
12,258
10,438
3,942
96,614

$

$

4,701

176

$

103,752
297
104,049
109,293
8,000

34,794
36,507
13,510
11,133
4,236
100,180

$

$

4,151

229

$

36,200
36,943
14,933
11,547
4,426
104,049

$

$

4,177

483

$

4,228

291

$

(10) %
51
(10)
-

2010 Change
2009

2009

$

95,090
446
95,536
8,000

$

105,556
296
105,852
8,000

$

133,162

$

140,771

(5)

111,146
292
111,438
110,377
8,000

(14)
18
(14)
22
-

39,453
36,889
17,710
12,803
4,583
111,438

(13)
(2)
(32)
(21)
(15)
(14)

95,917
344
96,261
134,966
8,000

$

$

34,173
36,006
12,065
10,124
3,893
96,261

$

$

4,808

$

(10) %
51
(10)
-

4,228

405

$

14

315

29

3,036
41
3,077
3,285

2,947
49
2,996
3,186

2,764
37
2,801
2,989

2,284
18
2,302
2,461

2,090
21
2,111
2,255

3
(16)
3
3

45
95
46
46

3,036
41
3,077
3,285

2,090
21
2,111
2,255

45
95
46
46

2,686
267
2,953

3,007
359
3,366

3,025
349
3,374

3,063
300
3,363

3,034
272
3,306

(11)
(26)
(12)

(11)
(2)
(11)

2,686
267
2,953

3,034
272
3,306

(11)
(2)
(11)

0.74
2.82
2.81
88
3.22
3.21

%

0.96
3.15
3.12
102
3.13
3.10

%

1.92
3.12
3.03
109
2.87
2.80

%

1.11
3.01
2.95
134
2.26
2.21

%

0.67
2.87
2.79
145
1.99
1.94

%

0.85
2.82
2.80
88
3.22
3.20

%

0.57
2.87
2.73
145
1.99
1.89

%

Liability balances include deposits, as well as deposits that are swept to on—balance sheet liabilities (e.g., commercial paper, federal funds purchased, time deposits and securities loaned or sold under repurchase agreements) as part of
customer cash management programs.
Allowance for loan losses of $586 million, $612 million, $581 million, $496 million and $460 million were held against nonperforming loans retained at June 30, 2010, March 31, 2010, December 31, 2009, September 30, 2009 and June 30,
2009, respectively.

Page 23


TREASURY & SECURITIES SERVICES

QUARTERLY TRENDS
2Q10
INCOME STATEMENT
REVENUE
All other income
Noninterest revenue
Net interest income
TOTAL NET REVENUE

$

Credit reimbursement to IB (a)

1Q10

313
705
209
1,227
654
1,881

$

(16)
(30)

4Q09

311
659
176
1,146
610
1,756

$

(39)
(30)

YEAR-TO-DATE

3Q09

330
675
212
1,217
618
1,835

$

53
(30)

2Q10 Change
1Q10
2Q09

2Q09

316
620
201
1,137
651
1,788

$

13
(31)

314
710
221
1,245
655
1,900

1
7
19
7
7
7

(5)
(30)

%

2010

- %
(1)
(5)
(1)
(1)

1,354
1,334
36
2,724

1,247
1,321
39
2,607

9
1
(8)
4

908
337
571

1,065
378
687

(15)
(11)
(17)

1,865
1,856
3,721

(3)
(1)
(2)

629
633
18
1,280

618
650
20
1,288

Income tax expense
NET INCOME

468
176
292

440
161
279

361
124
237

464
162
302

587
208
379

6
9
5

(20)
(15)
(23)

934
966
1,900

5
9
7

(1)
(1)
(1)

REVENUE BY BUSINESS
Treasury Services
Worldwide Securities Services
TOTAL NET REVENUE

$
$

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

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

926
955
1,881

18
74
25

$
$

%

882
874
1,756

17
75
25

$
$

%

$

918
917
1,835

19
76
20

$
$

%

$

919
869
1,788

24
72
26

$
$

%

30
68
31

(2) %
2
(8)
(1)
(5)
(2)

13
5
(10)
9

668
704
19
1,391

(55)
(60)

639
1,336
418
2,393
1,328
3,721

6
5
6

657
650
18
1,325

$

$

(220)
-

697
684
18
1,399

$

624
1,364
385
2,373
1,264
3,637

59
-

NONINTEREST EXPENSE

$

$

2010 Change
2009

2009

$

$
$

%

(11)
(60)

$

1,808
1,829
3,637

18
75
25

$
$

%

28
70
29

(400)
-

%

$

24,513
6,500

$

24,066
6,500

$

18,972
5,000

$

19,693
5,000

$

17,929
5,000

2
-

37
30

$

24,513
6,500

$

17,929
5,000

37
30

$

42,868
22,137
246,690
6,500

$

38,273
19,578
247,905
6,500

$

36,589
18,888
250,695
5,000

$

33,117
17,062
231,502
5,000

$

35,520
17,524
234,163
5,000

12
13
-

21
26
5
30

$

40,583
20,865
247,294
6,500

$

37,092
18,825
255,208
5,000

9
11
(3)
30

27,252

3

3

27,252

3

27,943

27,223

26,609

26,389

27,943

IB credit portfolio group manages certain exposures on behalf of clients shared with TSS. TSS reimburses IB for a portion of the total cost of managing the credit portfolio. IB recognizes this credit reimbursement as a component of
noninterest revenue.
Pretax margin represents income before income tax expense divided by total net revenue, which is a measure of pretax performance and another basis by which management evaluates its performance and that of its competitors.
Loan balances include wholesale overdrafts, commercial card and trade finance loans.
Liability balances include deposits, as well as deposits that are swept to on—balance sheet liabilities (e.g., commercial paper, federal funds purchased, time deposits and securities loaned or sold under repurchase agreements) as part of
customer cash management programs.

Page 24


TREASURY & SECURITIES SERVICES
TSS firmwide metrics include revenue recorded in the CB, Retail Banking and Asset Management ("AM") lines of business and excludes FX revenue recorded in the IB for TSS-related FX activity. In order to capture the firmwide impact of
Treasury Services ("TS") and TSS products and revenue, management reviews firmwide metrics such as liability balances, revenue and overhead ratios in assessing financial performance for TSS. Firmwide metrics are necessary in order to
understand the aggregate TSS business.

QUARTERLY TRENDS
2Q10
TSS FIRMWIDE DISCLOSURES
TS revenue - reported
TS revenue reported in CB
TS revenue reported in other lines of business
TS firmwide revenue (a)
Worldwide Securities Services revenue
TSS firmwide revenue (a)
TS firmwide liability balances (average) (b)
TSS firmwide liability balances (average) (b)

$

$
$

TSS FIRMWIDE FINANCIAL RATIOS
TS firmwide overhead ratio (c)
TSS firmwide overhead ratio (c)
FIRMWIDE BUSINESS METRICS
Assets under custody (in billions)

Net charge-offs rate
Allowance for loan losses to period-end loans
Allowance for loan losses to average loans
Nonperforming loans to period-end loans
Nonperforming loans to average loans

(a)

(b)
(c)
(d)
(e)

926
665
62
1,653
955
2,608

$

303,224
383,460

$

54
64
$

Number of:
US$ ACH transactions originated (in millions)
Total US$ clearing volume (in thousands)
International electronic funds transfer volume
(in thousands) (d)
Wholesale check volume (in millions)
Wholesale cards issued (in thousands) (e)
Net charge-offs
Nonperforming loans

1Q10

$

%

14,857

4Q09

882
638
56
1,576
874
2,450

$

305,105
381,047

$

55
65
$

$

%

15,283

3Q09

918
645
57
1,620
917
2,537

$

289,024
373,166

$

54
66
$

YEAR-TO-DATE

$

%

14,885

2Q09

919
672
63
1,654
869
2,523

$

261,059
340,795

$

52
62
$

2Q10 Change
1Q10
2Q09

$

%

14,887

934
679
63
1,676
966
2,642
258,312
339,992
51
59

$

5
4
11
5
9
6
(1)
1

%

2010
(1) %
(2)
(2)
(1)
(1)
(1)

$

17
13

$

$

%

1,808
1,303
118
3,229
1,829
5,058

$

304,159
382,260

$

55
65

13,748

(3)

8

$

2010 Change
2009

2009

$

%

14,857

1,865
1,325
125
3,315
1,856
5,171
273,892
365,584
52
61

$

(3) %
(2)
(6)
(3)
(1)
(2)
11
5
%

13,748

8

970
30,531

975
29,493

965
28,604

978
28,193

2
6

(1)
8

1,919
59,200

1,956
55,379

(2)
7

58,484
526
28,066

$

949
28,669
55,754
478
27,352

53,354
514
27,138

48,533
530
26,977

47,096
572
25,501

5
10
3

24
(8)
10

114,238
1,004
28,066

91,461
1,140
25,501

25
(12)
10

19
14

NM
-

15
92
107

220
(26)
8

14

$

48
68
116
0.20
0.22
343
0.06
0.06

14

$

57
76
133
%

0.24
0.29
407
0.06
0.07

14

$

88
84
172
%

0.46
0.47
NM
0.07
0.07

14

$

%

0.08
0.09
107
0.07
0.08

%

-

NM
-

15
92
107

15
104
119

17
14

(16)
(11)
(13)

220
(26)
8

0.39
0.08
0.09
107
0.08
0.08

%

$

14

$

48
68
116
0.20
0.23
343
0.06
0.07

%

0.20
0.08
0.08
107
0.08
0.07

%

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 $175 million, $137 million, $162 million, $154 million and $191 million for the quarters ended June 30, 2010, March 31, 2010, December
31, 2009, September 30, 2009 and June 30, 2009, respectively, and $312 million and $345 million for year-to-date 2010 and 2009, 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.

Page 25


ASSET MANAGEMENT
(in millions, except ratio, ranking and headcount data)

QUARTERLY TRENDS
2Q10
INCOME STATEMENT
REVENUE
All other income
Noninterest revenue
Net interest income
TOTAL NET REVENUE

$


1Q10

1,522
177
1,699
369
2,068

$

4Q09

1,508
266
1,774
357
2,131

$

YEAR-TO-DATE

3Q09

1,632
191
1,823
372
2,195

$

2Q10 Change
1Q10
2Q09

2Q09

1,443
238
1,681
404
2,085

$

1,315
253
1,568
414
1,982

2010

1 %
(33)
(4)
3
(3)

16 %
(30)
8
(11)
4

$

2010 Change
2009

2009

3,030
443
3,473
726
4,199

$

2,546
322
2,868
817
3,685

19 %
38
21
(11)
14

5

35

58

38

59

(86)

(92)

40

92

(57)

NONINTEREST EXPENSE

861
527
17
1,405

910
514
18
1,442

907
543
20
1,470

858
474
19
1,351

810
525
19
1,354

(5)
3
(6)
(3)

6
(11)
4

1,771
1,041
35
2,847

1,610
1,004
38
2,652

10
4
(8)
7

Income tax expense
NET INCOME

658
267
391

654
262
392

667
243
424

696
266
430

569
217
352

1
2
-

16
23
11

1,312
529
783

941
365
576

39
45
36

640
411
487
334
110
1,982

16
(23)
1
1
(3)

1,223
664
947
646
205
3,685

14
35
5
7
7
14

REVENUE BY CLIENT SEGMENT
Private Bank
Retail
Institutional
Private Wealth Management
JPMorgan Securities (a)
TOTAL NET REVENUE

$

$

$

FINANCIAL RATIOS
ROE
Overhead ratio
Pretax margin ratio (b)
Loans
Equity
Total assets
Loans
Deposits
Equity
Headcount

(a)
(b)

$

695
482
433
348
110
2,068

24
68
32

$

$

%

$

698
415
566
343
109
2,131

24
68
31

$

$

%

$

723
445
584
331
112
2,195

24
67
30

$

$

%

$

639
471
534
339
102
2,085

24
65
33

$

$

%

20
68
29

9
17
(11)
4
4

$

$

$

%

$

1,393
897
999
691
219
4,199

24
68
31

$

$

%

17
72
26

%

$

38,744
6,500

$

37,088
6,500

$

37,755
7,000

$

35,925
7,000

$

35,474
7,000

4
-

9
(7)

$

38,744
6,500

$

35,474
7,000

9
(7)

$

63,426
37,407
86,453
6,500

$

62,525
36,602
80,662
6,500

$

63,036
36,137
77,352
7,000

$

60,345
34,822
73,649
7,000

$

59,334
34,292
75,355
7,000

1
2
7
-

7
9
15
(7)

$

62,978
37,007
83,573
6,500

$

58,783
34,438
78,534
7,000

7
7
6
(7)

14,840

5

8

14,840

8

16,019

15,321

15,136

14,919

16,019

JPMorgan Securities was formerly known as Bear Stearns Private Client Services prior to January 1, 2010.
Pretax margin represents income before income tax expense divided by total net revenue, which is a measure of pretax performance and another basis by which management evaluates its performance and that of its competitors.

Page 26


ASSET MANAGEMENT
(in millions, except ratio, ranking and headcount data)

QUARTERLY TRENDS
2Q10
BUSINESS METRICS
Number of:
Client advisors
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
Net charge-offs
Nonperforming loans
Net charge-off rate
Allowance for loan losses to period-end loans
Allowance for loan losses to average loans
Nonperforming loans to period-end loans
Nonperforming loans to average loans

(a)
(b)
(c)

1Q10

2,055
1,653
402
43
58
67
78

$

%

1,987
1,651
390
43

%
%
%

55
67
77

27
309
250
3
253
0.29
0.65
0.67
81
0.80
0.83

4Q09

$

%

261
13
274
0.31
0.70
0.71
55
1.28
1.30

3Q09

%

1,934
1,628
376
42

%
%
%

57
62
74

28
475

$

%

YEAR-TO-DATE

269
9
278
0.38
0.71
0.74
46
1.54
1.61

2Q09

%

1,891
1,620
365
39

%
%
%

60
70
74

35
580

$

%

2Q10 Change
1Q10
2Q09

%

1,838
1,595
362
45

%
%
%

62
69
80

17
409
251
5
256
0.19
0.70
0.72
61
1.14
1.17

$

%

2010

%

3 %
3
-

12 %
4
11
(4)

%
%
%

5
1

(6)
(3)
(3)

46
313

(4)
(35)

(41)
(1)

226
4
230
0.54
0.64
0.66
72
0.88
0.91

(4)
(77)
(8)

11
(25)
10

%

2,055
1,653
402
43
58
67
78

$

2010 Change
2009

2009

%

1,838
1,595
362
45

%

12 %
4
11
(4)

%
%
%

62
69
80

%
%
%

(6)
(3)
(3)

55
309
250
3
253
0.30
0.65
0.68
81
0.80
0.83

$

%

65
313

(15)
(1)

226
4
230
0.38
0.64
0.66
72
0.88
0.91

11
(25)
10
%

JPMorgan Securities was formerly known as Bear Stearns Private Client Services prior to January 1, 2010.
Derived from Morningstar for the United States, the United Kingdom, Luxembourg, France, Hong Kong and Taiwan; and Nomura for Japan.
Quartile ranking sourced from Lipper for the United States and Taiwan; Morningstar for the United Kingdom, Luxembourg, France and Hong Kong; and Nomura for Japan.

Page 27

2 q10 erf_supplement_7-14-10_final (2)

2 q10 erf_supplement_7-14-10_final (2)

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